For the longest time, it seemed there had been more articles published about the benefits and strengths of mobile marketing from a promotional perspective, than articles showing the number of advertisers actually marketing in the channel and respectively, consumers using mobile devices.  However, in spite of the economic recession, there has been a pretty drastic upswing in the number of consumers buying and employing mobile technology. I have been paying close attention to the hype vs. the consumer usage, and I believe mobile marketing is finally coming to a point where data can be used to support a very compelling case for it.

Comscore recently released a study which indicates consumer use of mobile devices to get the latest news and information via the web doubled between January 2008 and January 2009. Even more interesting in reading the Comscore article, the most widely used websites on mobile devices were social networks and blog sites.  (Very interesting.. seems like I stumbled upon my next blog topic…)

I have to say it’s refreshing to hear that even in a shrinking economic market, there has been positive growth in both the purchase of mobile phones, and marketer’s willing to advertise in the channel.  Market indications are also showing this growth should continue over the next 5 years at a steady rate.  In 2008 estimated mobile ad revenues were 648 million, and are anticipated to growth to 3.3 billion annually by 2013, as reported by E-Marketer. 

Marketers that are looking for channels to advertise in should add mobile marketing to their mix.  Consumers are spending more and more time online via these devices. Also, search engines and 3rd party vendors are creating easier ways for you to create mobile ready ads. One word of caution in getting started, it is important to do your homework first. In order to have presence in the mobile world, you need to be sure your web pages and advertisements are mobile device compatible. Each mobile device employs different types of technology which means a webpage that works for an I-Phone may not work for a Blackberry or a Samsung.  This may be one of the biggest obstacles, but well worth the learning curve!

I was reading an article the other day about the expected increase in local search advertising over the next four to five years.  According to a report by the Kelsey Group, local search advertising revenue will increase to $1.3 billion by 2013, up from a conservative $20 million this year.  The increase sounds staggering, considering the figures go against conventional theories that this down economy will be around longer than expected.

But as I thought about it more, I believe the increase in local search advertising will be significant regardless of the economy and the main reason why: the Smartphone!  With more and more people using Smartphone technologies like the iPhone, the Blackberry, and Palm, I expect to see a big increase in local search marketing over the next few years.  I cannot put a dollar figure on it (The Kelsey Group already has), but just look around and the signs are all over the place.  The technology with the web based, super fast 3G network phones makes it much more palpable to use your phone to search the web.  The screens are larger than ever, they are in full color and have full keyboards!  We are moving toward a time where it is actually less convenient to walk up stairs and turn on your pc, than to simply jump online from your Smartphone.  When you are truly “on the go”, these phones can completely replace your home computer for online functionality.  Instead of calling for information (say goodbye to 411), you can just as easily go online from your phone to find whatever you need – you are doing a local search!

If you are a business owner, you ought to get onboard with local search marketing as soon as possible.  Make sure you have your local listings in Google Maps and Yahoo’s local business listing formats.  You might find your business is already there, and if so, make sure all the information is up to date and accurate.  If you are not listed, be sure to add your business listing and provide as much information as they allow you to put in your profile.  If they allow a photo, use a nice picture of your building, or use your company logo.  While you’re at it, check some of the other local business finders (think Yellow Pages online and similar sites) and make sure your company information is accurate and up to date on those sites as well.  Remember, more and more people are using these Smartphones every day and they will be one of the biggest drivers in local search activity over the next few years.

At some point, we have all engaged in some form of a contest, sweepstakes, or game. We may have registered for a free trip to Hawaii, or collected Monopoly game pieces at McDonalds. As consumers, we noticed some value in these promotions and there was an incentive to engage. In most cases we either provided personal information or made a purchase.

Interactive Promotions are the engagement of consumers with the right incentive/offer to motivate a specific action using sweepstakes, contests, and games. Interactive promotions have supplied positive results for marketers, as they are one of the most powerful ways to motivate interaction on the Internet. By putting the right incentive in front of the right audience you can encourage them to act, which is one of the most successful ways to gather their personal data. This then enables you to begin a dialog with the consumer, which can lead to more relevant information and additional offers.

Various ways to leverage interactive promotions:

• data acquisition/lead generation
• generating sales
• building brand
• driving traffic
• building loyalty
• educating consumers

Marketers are taking notice of the success of this emerging marketing channel and larger budgets are being allocated to this area. Some numbers to help support this claim:

• According to IMI International, 81% of consumers have made a purchase due to a promotion.
• eMarketer noted that 80% of consumers have entered an online sweepstakes.
• In a recent Promo Magazine survey, 43.6% of marketers will increase promotional marketing budgets for this year (another 37.4% keeping same budget).
• Borrell Associates published a report that projects online promotions will triple over the next 5 years, from $8 billion in 2007 to $22.8 billion in 2012 (surpassing all other online advertising categories during that time).
• Jupiter Research consumer survey showed that 82% of consumers are willing to provide various forms of personal info in exchange for a chance to win as little as $100 in prizes.

If your company isn’t currently using Interactive Promotions to expand your business, now may be the time to consider.