Phone Charging Station: A Growing Tidal Wave of Opportunity
While mobile advertising is still a small category representing only $561 million in 2010,
a minuscule percentage of total advertising expenditures, it is one of the fastest-growing
categories with a projected growth rate of 27 percent a year for the next five years.1 As
text messaging use continues to rise, especially in Europe and Asia where text messaging
is used by over 80 percent of subscribers, mobility marketing is taking off.
It’s still unclear exactly how mobile users will embrace advertising. Sixty-six percent
of users say that advertising on this media is annoying.2 Other marketers say they have
success with mobile text messaging if the message is short, targeted, relevant to the user,
and interactive with a call to action. For example, a shopper at a local mall that receives
a message for a discount at her favorite store is likely to appreciate a personal text to
receive 20 percent off on purchases that day. Restaurants and nightclubs might offer customers
a free drink. A consumer product company might offer a coupon for a free trial
when the consumer is asked to enter a special promotion code. Or a music artist or store
could offer a free ringtone or music download.
As marketers experiment with different types of advertising, a combination of text
messaging and promotion might just be the key. If 47 percent of online users participate
in online contest or sweepstakes, and 31 percent use online coupons, then mobile users
may embrace it too.
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