August 24, 2012
Juniper Research announced findings from its newly-released report on mobile advertising strategies this week—the data indicates a steady increase in mobile message ad spend to $7.4 billion by 2017, driven largely by an increase in location-based SMS advertising. I believe by “mobile messaging” they are referring mainly to SMS. In my humble opinion, this surge in mobile messaging ad spend will largely occur in emerging markets, due to a few reasons.
First, according to a recently-released eMarketer article, emerging markets are predicted to drive global total ad spend (chart below). Second, feature phone usage in these markets is likely to remain relatively high. As mobile penetration increases in these markets, mobile phone adoption is more likely to begin with feature phones than smartphones. Wherever feature phone usage is high, SMS consumption will be high. But we also can’t forget that smartphone users in developed markets value SMS messaging too (even to receive promotional offers and coupons!).
Thus, advertisers may find that SMS advertising is an effective medium for both emerging and developed markets. So, contrary to what some may think, SMS is not dying after all.
Based on the charts and information provided above, below are some key highlights and takeaways I think are important for mobile marketers & advertisers to consider.
- Mobile messaging ad spend predicted to increase to $7.4 billion by 2017
- Emerging markets will see surge in total media ad spend in the next four years
- 9.4 trillion SMS text messages will be sent worldwide in 2016
- SMS advertising will see higher ROI in markets wherever feature phone usage is high
- SMS advertising likely to be more effective in emerging markets where feature phone usage is relatively high