Mobile marketing important but still not getting the budget

New report from Warc and the Mobile Marketing Association finds three-quarters of Asia-Pacific marketers surveyed still don't have formal mobile strategies in palce

Most marketers are aware of the importance of mobile marketing channels but nearly three quarters don’t have a formal mobile strategy in place, a new report claims.

The latest State of the Industry: Mobile marketing in Asia-Pacific study, conducted by Warc in association with the Festival of Media Asia Pacific and the Mobile Marketing Association (MMA), found 91 per cent of respondents recognise the importance of mobile marketing today, yet 78 per cent allocate less than 10 per cent of their marketing budgets to such activities.

In addition, 71 per cent of agencies claimed most of their clients don’t have a formal mobile strategy in place. This compared to 44 per cent of brand owners claiming a formal strategy. Where formal processes have been adopted, 40 per cent reported close integration of mobile in marketing campaigns, up from 27 per cent last year.

Yet despite this, 62 per cent of those surveyed seldom use mobile to gauge audience interest and engagement in other advertising campaigns, the report claimed.

“It’s clear from the study that there is still a long way to go before brands and agencies in Asia-Pacific understand the full potential of mobile for reaching consumers,” Warc Asia-Pacific managing director, Edward Pank, commented.

“It is encouraging to see, however, that those brands that have taken the leap are now learning to use mobile in innovative ways that integrate with other marketing activities, demonstrating mobile’s gradual move from the periphery to the centrepiece of marketing strategies.”

Like many areas of digital and data-driven marketing, skills in relation to technology was cited as the major barrier to adoption, beating consumer concerns regarding privacy as the main inhibitor to mobile marketing growth this year. Reliable metrics were also an issue.

Another area analysed was programmatic buying, or the automatic buying and selling of display ads. Programmatic buying is expected to become more important to marketing strategies by 2019, despite the fact that 52 per cent of the report’s respondents have little or no knowledge of it at present.

Warc’s research was based on 316 responses to a survey conducted in January 2014 across 24 Asia-Pacific markets. Australia came in fourth in terms of the most innovative markets for mobile after China, Singapore and Japan.

The report also found location-based marketing is considered crucial to both current and future marketing activities across the region, and multi-screening is now viewed as the most significant mobile consumer behaviour.

6 mobile marketing trends to leverage in 2014
CMOs using mobile apps to drive customer loyalt
Smartphones dominate pre-purchase activities in shops

As mobile gains ground as a primary marketing channel, budget percentage is expected by the majority of marketers to increase by up to 30 per cent by 2019. Twenty-nine per cent of respondents to the survey believe budgets will rise by more than 50 per cent in five years’ time.

Last year, a former MMA study across Asia-Pacific on mobile marketing found 90 per cent of respondents predicted mobile budgets would rise substantially, with 34 per cent expecting growth of up to 75 per cent.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Behaviour change, by design

​We’re living in an age of unprecedented change. We experience with Oculus Rift, invest with Acorns, consume video through Hyper, tune into Pandora and navigate with Waze.

Glen Jeffreys

Head of UX, Deepend Group

Chat bots: How to use them commercially right now

I’m sure that many of you out there have heard a lot about chat bots (aka messaging bots) recently, and the fact that they are here to stay is pretty evident by now.

Deniz Nalbantoglu

Managing director, Webling-Interactive

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Thanks, Nadia. It was so interesting blog for me because it helps me able to understand well on the basics of business and marketing conc...

MichaelBGreen

3 ways marketers can raise their executive influence

Read more

Having been to the AO on Wednesday for the first time in a number of years I was very impressed with the new branding. The event has evol...

Naomi

Tennis Australia unwraps new brand identity for Australian Open

Read more

This was amazing and so inspiring. Thanks for sharing.

Vijay Kumar

Design thinking: Leading with experience

Read more

Great read, thanks for posting. MR should be seen as the holy grail for marketers and brands, as it offers an unprecedented capability to...

Barney

Interview: The business case for mixed reality in marketing

Read more

what a load of shit, and what a major stuff up... the new brand device is sterile, boring and just plain bad. Would be better suited to a...

James Yoi

Tennis Australia unwraps new brand identity for Australian Open

Read more

Latest Podcast

More podcasts

Sign in