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BizReport : Mobile Marketing : March 19, 2015

MMA case studies prove worth of mobile marketing budgets

Mobile plays an important role in marketing from raising brand awareness to driving sales, according to a new study into campaign spending from the Mobile Marketing Association, but marketers do not yet have a fact-based foundation on which to build an argument for budgetary changes.

by Helen Leggatt

The Mobile Marketing Association's 'Smart Mobile Cross Marketing Effectiveness Report' (SMoX) analysed every dollar spent in campaigns from four major brands - AT&T, Coca-Cola, MasterCard and Walmart.

Backing up mobile's effectiveness with case studies, the MMA argues that "reallocating to mobile would drive incremental impact for each campaign, making their existing budget work harder".

The report found that mobile's impact was to significantly raise ROI. A case in point, for Coca-Cola's Gold Peak Tea campaign, mobile accounted for 6% of sales despite accounting for just 5% of the budget. According to the MMA, had the brand allocated 10% of the budget to mobile they would have seen a further 4% in sales.

Location targeting was also found to boost ROI. When Walmart employed proximity targeting to reach mobile users within a range of a store it was found to be 1.5 times more effective that an audience targeting campaign sent to previous customers.

The study also looked at ad content and found that those that contained social elements, video or audio all resulted in more ROI than a standard mobile display ad.

"The market has acknowledged there is a deep chasm between what brands are currently spending on mobile and consumer behavior, but now there is real, indisputable proof on the value of mobile to a brand's business goals," said Greg Stuart, CEO, MMA. "I believe mobile presents the greatest transformation of marketing in our generation. With empirical data, SMoX now demonstrates the competitive opportunity for those marketers who figure out how to leverage the power of mobile effectively and optimize their spending with the most impactful allocations in their marketing mix, finally keeping pace with consumers."

The full SMoX report is only available for download by attendees of the MMA's upcoming NY Forum (March 17-18) and SMoX Roadshows (Chicago, April 9 and San Francisco, April 29).

Image via Shutterstock

Tags: advertising, budget, marketing, mobile

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