Mobile marketing budgets to get a big boost

New Mobile Marketing Association survey across Asia-Pacific finds marketers don't yet have formal mobile strategies in place yet budgets are expected to rise significant in the next year

Mobile marketing budgets are expected to rise sharply in the next year as brands look to capitalise on what has become an increasingly preferred channel choice for consumers.

A new Asia-Pacific survey undertaken by Warc for the Mobile Marketing Association (MMA) in partnership with The Festival of Media Asia 2014, found 90 per cent of respondents predict a substantial rise in budgets for mobile marketing, with 34 per cent expecting increases of up to 75 per cent.

At present, most organisations don’t currently have formal mobile strategies in place, and less than 10 per cent of current budgets are being allocated to mobile.

The survey was conducted in July and August and involved 336 client-side advertisers and marketing services agencies across the Asia-Pacific region.

Over the next year, marketers said app development and mobile display ads will be their preferred channels. This mix was expected to change significantly over the next five years, with social marketing, app development and mobile-based content becoming the most popular activities.

While 33 per cent of those surveyed plan to use SMS marketing in 2013/2014, this is also expected to drop in popularity, and only 11 per cent saw themselves using the channel in five years’ time.

Price and social factors key with rising number of mobile retail buyers: report
CMOs using mobile apps to drive customer loyalty
Smartphones dominate pre-purchase activities in shops

“Over the last six months since the first iteration of the survey, we are seeing a shift in attitude away from tapping mobile execution tactically to a more strategic imperative,” MMA managing director for Asia-Pacific, Rohit Dadwal, commented.

“We expect to see substantial growth in budget allocations as mobile becomes a key part of the overall marketing mix.”

Top consumer behaviour trends fuelled by mobile are mobile payments (74 per cent), multi-screening (67 per cent) and show rooming (51 per cent).

The MMA survey also found consumer concerns over privacy and security as the biggest barriers holding the industry back (42 per cent of respondents), followed by lack of required skill sets and insufficient budgets. Dadwal warned marketers not to overlook the privacy factor and called for more education for consumers on how their information is being collected and used.

Respondents were also asked their opinion of the brands best using mobile as a marketing channel today, and nominated Samsung as the most innovative. The technology company was followed by Coca-Cola (16 per cent) and Nike (10 per cent).

From an industry point of view, retail was nominated by 40 per cent of respondents as the most innovative users of mobile marketing to date.

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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Great piece Katja. It will be fascinating to see how the shift in people's perception of value will affect design, products and services ...

Paul Scott

How to design for a speculative future - Customer Design - CMO Australia

Read more

Google collects as much data as it can about you. It would be foolish to believe Google cares about your privacy. I did cut off Google fr...

Phil Davis

ACCC launches fresh legal challenge against Google's consumer data practices for advertising

Read more

“This new logo has been noticed and it replaces a logo no one really knew existed so I’d say it’s abided by the ‘rule’ of brand equity - ...

Lawrence

Brand Australia misses the mark

Read more

IMHO a logo that needs to be explained really doesn't achieve it's purpose.I admit coming to the debate a little late, but has anyone els...

JV_at_lAttitude_in_Cairns

Brand Australia misses the mark

Read more

Hi everyone! Hope you are doing well. I just came across your website and I have to say that your work is really appreciative. Your conte...

Rochie Grey

Will 3D printing be good for retail?

Read more

Blog Posts

How to design for a speculative future

For a while now, I have been following a fabulous design strategy and research colleague, Tatiana Toutikian, a speculative designer. This is someone specialising in calling out near future phenomena, what the various aspects of our future will be, and how the design we create will support it.

Katja Forbes

Managing director of Designit, Australia and New Zealand

The obvious reason Covidsafe failed to get majority takeup

Online identity is a hot topic as more consumers are waking up to how their data is being used. So what does the marketing industry need to do to avoid a complete loss of public trust, in instances such as the COVID-19 tracing app?

Dan Richardson

Head of data, Verizon Media

Brand or product placement?

CMOs are looking to ensure investment decisions in marketing initiatives are good value for money. Yet they are frustrated in understanding the value of product placements within this mix for a very simple reason: Product placements are broadly defined and as a result, mean very different things to different people.

Michael Neale and Dr David Corkindale

University of Adelaide Business School and University of South Australia

Sign in