Appendice.Mob<strong>il</strong>e <strong>Marke<strong>ti</strong>ng</strong> in Interna<strong>ti</strong>onalPerspec<strong>ti</strong>ve: The View From the Mob<strong>il</strong>e<strong>Marke<strong>ti</strong>ng</strong> Associa<strong>ti</strong>onBy Peter A. Johnson, PhD, and Tatyana YemetsMob<strong>il</strong>e <strong>Marke<strong>ti</strong>ng</strong> Associa<strong>ti</strong>on (MMA)As the sole world-wide organiza<strong>ti</strong>on represen<strong>ti</strong>ng marke<strong>ti</strong>ng via wirelessly networkedhandsets, regardless of the specific technologies involved, the MMA believes it is in aunique posi<strong>ti</strong>on to chart the course of what is increasingly acknowledged to be the mos<strong>ti</strong>mportant new marke<strong>ti</strong>ng channel of the 21st century. Its impact, long promised is visibleright now, in <strong>2010</strong>, in many markets around the globe.What makes <strong>2010</strong> the year of mob<strong>il</strong>e’s arrival as an established marke<strong>ti</strong>ng channel?Certainly there are the well known trends in adop<strong>ti</strong>on and increased technologicaleffec<strong>ti</strong>veness that make mob<strong>il</strong>e attrac<strong>ti</strong>ve to the marke<strong>ti</strong>ng community. First and foremost,there is the allure of global reach. With approximately 4 b<strong>il</strong>lion mob<strong>il</strong>e subscribersworld wide (es<strong>ti</strong>mates vary, and there is no defini<strong>ti</strong>ve metric yet for unique users, owingto the increased numbers of customers with mul<strong>ti</strong>ple devices and connec<strong>ti</strong>ons), theopportunity offered by mob<strong>il</strong>e to establish a “digital connec<strong>ti</strong>on” with a majority of theworld’s consuming public has now been firmly secured.In many economically developed countries of Europe, North America, and East Asia,mob<strong>il</strong>e connec<strong>ti</strong>vity exceeds 100% of the adult popula<strong>ti</strong>on. These figures represent animpressive penetra<strong>ti</strong>on into the richest markets most strongly desired by many marketers.In these regions, mob<strong>il</strong>e is a powerful and versa<strong>ti</strong>le complement to exis<strong>ti</strong>ng media, oftencalled the “third screen” in a trio involving the TV and the personal computer. In othereconomically emergent regions, mob<strong>il</strong>e is more likely to represent an alterna<strong>ti</strong>ve to theseelectronic media – especially the Internet.For example, in India, some 40 m<strong>il</strong>lion consumers access the Internet via fixed line PCs orother tradi<strong>ti</strong>onal computers. This contrasts with the es<strong>ti</strong>mated 400 m<strong>il</strong>lion Indians whopossess a mob<strong>il</strong>e phone. Mob<strong>il</strong>e in other words is allowing countries like India to “leapfrog”the fixed line stage of PC-based Internet development. For marketers, this meansdigital connec<strong>ti</strong>ons to customers in what may soon be the world’s largest market must be“mob<strong>il</strong>ized” – beginning now, in <strong>2010</strong>. Given that India’s economic growth rate is twoto three <strong>ti</strong>mes higher that of the industrial West, the implica<strong>ti</strong>ons of a fully mob<strong>il</strong>izedeconomy of this scale means marketers must re-think what “digital” marke<strong>ti</strong>ng alreadylooks like. Sim<strong>il</strong>ar ra<strong>ti</strong>os and sim<strong>il</strong>ar tales can be found in other large countries such asChina, the Ph<strong>il</strong>ippines, Indonesia, Nigeria, Braz<strong>il</strong>, Russia, and many others. That is whyGartner is predic<strong>ti</strong>ng that by 2013, more people around the world w<strong>il</strong>l access the Internetvia mob<strong>il</strong>e phones than via PCs.Smartphones and the Mob<strong>il</strong>e InternetA shift in the balance of power in the mob<strong>il</strong>e ecosystem is underway. Contrary to direpredic<strong>ti</strong>ons at the beginning of the year, the handset market did not crater, according toresearch firm Gartner. The firm said the global market for cell phones declined only 0.7Il Rapporto con i risulta<strong>ti</strong> comple<strong>ti</strong> della Ricerca è scaricab<strong>il</strong>e da www.osservatori.net<strong>Marke<strong>ti</strong>ng</strong> <strong>ti</strong> <strong>presento</strong> <strong>il</strong> Mob<strong>il</strong>e?Copyright © Politecnico di M<strong>il</strong>ano – Dipar<strong>ti</strong>mento di Ingegneria Ges<strong>ti</strong>onale47
AppendiceMob<strong>il</strong>e <strong>Marke<strong>ti</strong>ng</strong> in Interna<strong>ti</strong>onal Perspec<strong>ti</strong>ve: The View From the Mob<strong>il</strong>e <strong>Marke<strong>ti</strong>ng</strong> Associa<strong>ti</strong>onpercent this year, to 1.2 b<strong>il</strong>lion units. The reason: Smartphone sales. These have not onlyboosted handset manufacturers and carriers, they are revolu<strong>ti</strong>onizing mob<strong>il</strong>e marke<strong>ti</strong>ngby providing increased connec<strong>ti</strong>vity to the Internet.According to Gartner, handset sales are expected to fall 0.67 percent this year, comparedwith 2008, an improvement from Gartner’s September forecast of a 3.7 percent drop.Smartphone sales w<strong>il</strong>l make up 14 percent of all handset sales in 2009, according toGartner, a nearly 24 percent increase from last year. However, that bump in smartphonesales fell short of the 29 percent increase the firm had been tracking for 2009.Here are some key facts about the mob<strong>il</strong>e Internet: Mob<strong>il</strong>e Internet visitors were up 34% year over year to 56.9 m<strong>il</strong>lion in July 2009; 73.7 m<strong>il</strong>lion mob<strong>il</strong>e Internet users in the US in 2009, an increase of 26.3% over 2008; Analyst firm IDC says that there were more than 450 m<strong>il</strong>lion mob<strong>il</strong>e internet usersglobally this year, but that this w<strong>il</strong>l rise to more than one b<strong>il</strong>lion by 2013.Perhaps the most revolu<strong>ti</strong>onary impact on marketers using mob<strong>il</strong>e has been the arrival ofthe “mob<strong>il</strong>e app” and the “app store” as an avenue of establishing a dedicated 1:1 channelto their target audiences. Apple of course pioneered this innova<strong>ti</strong>on for its iPhone, but i<strong>ti</strong>s being copied by Google, RIM, and many other handset or opera<strong>ti</strong>ng systems providersowing to the model’s enormous popularity among the mob<strong>il</strong>e public. As reported in Mob<strong>il</strong>eEntertainment, Apple’s App Store has now generated more than three b<strong>il</strong>lion downloads.That’s less than four months after it passed the two b<strong>il</strong>lion m<strong>il</strong>estone in late September.Current and Future Expenditure on Mob<strong>il</strong>e <strong>Marke<strong>ti</strong>ng</strong>Facts such as these have transformed mob<strong>il</strong>e into the des<strong>ti</strong>na<strong>ti</strong>on of choice for shif<strong>ti</strong>ngdiscre<strong>ti</strong>onary dollars among marketers globally. Last year in the US, MMA conductedits first annual “Adver<strong>ti</strong>ser and Agency” study to gauge the size and growth of total USdemand for marke<strong>ti</strong>ng related mob<strong>il</strong>e services. MMA’s goal was to set a “baseline” ofmob<strong>il</strong>e services expenditure in this largest of world adver<strong>ti</strong>sing and marke<strong>ti</strong>ng markets.The study examined the full range of services employed, whether so-called “above theline” adver<strong>ti</strong>sing expenditures (commission-based) or “below the line” marke<strong>ti</strong>ng (feefor services or purchases of infrastructure). We found that aggregate expenditureson mob<strong>il</strong>e amounted to some $1.7 b<strong>il</strong>lion dollars in the US during 2009. Factoring innot only increased expenditure by current users, but by new market entrants also, wees<strong>ti</strong>mated that mob<strong>il</strong>e marke<strong>ti</strong>ng expenditure was projected to grow by about 26% toabout $2.1 b<strong>il</strong>lion US. This was a remarkable vote of confidence by marketers in themob<strong>il</strong>e industry, considering that for the same <strong>ti</strong>me period, total US expenditure acrossall media for adver<strong>ti</strong>sing was projected to decline 7% during 2009, and in <strong>2010</strong>, growbarely above the rate of infla<strong>ti</strong>on.Un<strong>ti</strong>l recently, mob<strong>il</strong>e and fixed line digital were both seen as subs<strong>ti</strong>tutes for tradi<strong>ti</strong>onalmedia expenditures by marketers. Our research reveals that this picture needs to beupdated. When asked which media they would be w<strong>il</strong>ling to divert adver<strong>ti</strong>sing dollarsfrom in order to support their mob<strong>il</strong>e efforts, the largest propor<strong>ti</strong>on of marketerssurveyed chose “digital.” The research aggregator eMarketer es<strong>ti</strong>mates that US mob<strong>il</strong>ead spending, including messaging-based formats, would attain $416 m<strong>il</strong>lion in 2009.Admittedly, this represents a rela<strong>ti</strong>vely small share of the nearly $24 b<strong>il</strong>lion spent for totalUS online adver<strong>ti</strong>sing. However, as smartphones proliferate and marketers move beyondexperimenta<strong>ti</strong>on, budgets w<strong>il</strong>l stead<strong>il</strong>y increase. eMarketer predicts that spending onmob<strong>il</strong>e adver<strong>ti</strong>sing w<strong>il</strong>l gain momentum over the next five years, reaching $1.56 b<strong>il</strong>lionby 2013.48Il Rapporto con i risulta<strong>ti</strong> comple<strong>ti</strong> della Ricerca è scaricab<strong>il</strong>e da www.osservatori.net<strong>Marke<strong>ti</strong>ng</strong> <strong>ti</strong> <strong>presento</strong> <strong>il</strong> Mob<strong>il</strong>e?Copyright © Politecnico di M<strong>il</strong>ano – Dipar<strong>ti</strong>mento di Ingegneria Ges<strong>ti</strong>onale