MMA Study: Mobile Should Be 7% of Total Spend

Trade org says space will account for 10% of budgets by 2016

When members of the Mobile Marketing Association convened in the Dominican Republic in mid-July for the organization’s CEO & CMO Summit, execs from brands like Toyota, Samsung and Colgate secretly met to learn about a research initiative aiming to show how mobile spend should fit into integrated campaigns. The data from the project is now available and suggests that mobile ads should account for 7 percent of budgets even though the space is currently seeing spends around 1 percent.

ROI firm Marketing Evolution conducted the study, which projects mobile’s share of the media mix will be “at least 10 percent" by 2016 as consumers continue to ramp up smartphone usage.

B. Bonin Bough, vp of global media and consumer engagement at Kraft Foods, told Adweek he was “blown away by the results.”

When asked if Kraft’s mobile spend jibes with the findings, Bough said that while “we don’t release exact figures around specific channels, I can tell you this year we have drastically increased our mobile spend.”

According to the MMA, the report is an ROI analysis combining factors like cost and “current mobile effectiveness impact,” as well as smartphone penetration and phone usage data in terms of reach and frequency. In an algebraic analysis, those numbers were then crunched with data from dozens of cross-media studies.

Greg Stuart, CEO of MMA Global, characterized the study as empirical data that will help marketers take the guesswork out of appropriating mobile in their media plans.

“The mobile industry has been plagued from what I call a ‘cold start syndrome,’” he said in a statement. “The next step in this process will be to validate these findings with the recently announced MMA program where we will conduct cross-media research with key leading marketers globally to provide additional critical ROI data for them and the industry.”

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