Research indicates that 7 percent of total ad spending should be geared toward smartphones and tablets.
A mobile marketing study performed by a consultancy firm, Marketing Evolution, has now released its recommendations based on the research regarding the efficacy of advertising spending, indicating that companies interested in mcommerce in the United States should be forking over a great deal more for ads on tablets and smartphones.
According to the research, companies should be using 7 percent of their total ad spending for this purpose.
Though this may not seem like a tremendous figure, it is notably larger than the current average mobile marketing budget of 1 percent or less.
The study went on to say that within the next four years, “marketers should increase their investment in mobile to approximately 10 percent.” It claimed that “It’s clear that marketers are spending significantly less than they should in mobile.”
The research also indicated that there are consequences to spending inadequately on mobile marketing.
The report said that companies will be “losing out on sales and profits” if they do not place enough focus on mcommerce and devote adequate funds from their media mix to mobile. These conclusions are only the most recent among a very large number that are suggesting that businesses of all sizes are recognizing that smartphones and tablets are the way of the future, but aren’t yet making the necessary steps to ensure that they will be an active part of that future.
Companies do not appear to be keeping up with the pace of the changing patterns of consumer behaviors. Though many marketers have been rapidly boosting their mobile marketing spending, there is a widespread acceptance of the thought that even many of the most dedicated organizations are still lagging behind the rapid shifts of consumer behaviors.
Equally, companies are hesitant to devote too much of their ad spending on mcommerce, as they have yet to witness the actual proof that it will have the necessary impact on American consumers to make the expense worth it. These organizations are not only attempting to avoid wasting their money on unnecessary mobile marketing, but they are also trying to minimize the chance that they will alienate or frustrate potential customers.