Crisp Voices Blog

The Impact of the Economic Downturn on Mobile Advertising

On the same day I read an article on Businessweek.com about how mobile advertising will suffer during this economic downturn, I also saw an article on MobileMarketer hinting that consumer spending on mobile could be recession proof. So which will it be? The fact is, the mobile phone is a critical part of our culture, with 20 million U.S. households, or 17 percent of wireless subscribers, now replacing their landline with mobile and texting actually surpassing voice calls in recent months. While the kneejerk reaction in poor economic times is to cut marketing budgets, especially for line items that are difficult to measure and quantify, I question if that is really the right move. Yes, it is a self-serving statement but look at the facts:

  1. The mobile phone is the only marketing medium that consumers have with them all day (60% of mobile subscribers) – making it an ideal medium for relevant advertising.
  2. The mobile advertising landscape is uncluttered. Unlike online sites, nearly one-third of mobile web landing pages don’t have any advertising and half of the ads that are served are house ads (Nielsen Mobile.) This represents a huge advantage for early advertisers to dominate the page and build brand and message awareness.
  3. Mobile is NOT just for youth. For example, on The Weather Channel Mobile, the fifth most trafficked mobile website in July 2008 (Nielsen Mobile), 69 percent of their visitors are in the 25-54 age group. It is a viable channel to reach other powerful buying groups outside of millenials, such as supermoms and executives.
  4. Mobile advertising is effective. In a recent brand study by Dynamic Logic, 23.9 percent of respondents said mobile ads had a positive effect on brand awareness. The Weather Channel Mobile recently presented a mobile advertising case study showing a mobile campaign by Hampton Hotels increased purchase intent by 37%.

The bottom line is; leading brands should dedicate a line item for mobile in 2009. When the economy begins to flourish and others jump on the mobile bandwagon, these leaders will already have used this early period to establish their brands in this space.

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