For the past several years, numerous studies have consistently exposed that Internet usage by time spent is higher than watching television, particularly by youth. One of the most recent studies of media usage by consumption time is by comScore, which reports Internet of 35% and TV of 36%. 1 Yet, Internet advertising spend remains disproportionately low in comparison to traditional advertising spend. As the statement, “My company doesn’t understand potential financial return from the use of Web 2.0 technologies’ as the top barrier to further success of Web 2.0 initiatives’ 2 , it is even more imperative to grasp Web 2.0, while also simultaneously moving quickly up the mobile learning curve as mobile is the new elephant that has entered the ballroom.

What recession? US Mobile advertising is $760 million in 2009, a 17.3% increase from year ago, and projected to increase to $3.33 billion by 2013. 3

Today, there are 4.1 billion mobile users worldwide which is predicted to increase to 5.6 billion by 2013 4. Closer to home in the US, there is a mobile phone subscription penetration rate of 92% of which 23% are mobile Internet users. 5 Indeed, these figures would undoubtedly be higher among US Internet Users as they are for US Hispanic Internet Users, already. Now that critical mass has been established, mobile advertising is very alluring to both advertisers and exposed visitors. In the United States, a mobile phone owner must opt-in to receive each marketing message by doing so from the device itself such as by sending a text message either with a code, or registering their phone online through a promotion. Additionally, marketers must be very clear on communicating any charges that may be incurred due to receiving their marketing message via mobile. This opt-in and disclosure moves mobile marketing from push advertising where visitors are exposed like it or not, to pull advertising where visitors must request to receive mobile campaigns.

Top brands in the US are already getting into the mobile mix. Starbucks launched an SMS loyalty program based on 2D barcode coupons, in Mexico! 6 (Mobilemarketer.com)

Perhaps this opt-in pull requirement causes the consumer to be inherently psychologically receptive to the messaging, as 32% of Whites and 52% of Hispanics who are mobile phone users recall viewing mobile advertising Q4 08 7.

It has also been well documented by several parties by now that brand advertising and awareness impacts purchase intent and other lower funnel metrics. Indeed, 59% of Hispanic vs. 20% of White US Mobile phone users has responded to mobile advertising, Q4 08. 8

The high performance of Hispanic mobile phone users may partially be due to the existing affinity of Hispanics towards mobile, as Hispanic adults are more likely to live in mobile only HH’s vs. Non Hispanic white, single race adults (21.6% vs. 14.6%, respectively).9

Not only do Hispanics over index in mobile only adoption, among internet users, Hispanics over index in mobile browsing vs. non Hispanics, as shown in Chart #1.

Chart 1:

While happily mobile browsing along, again Hispanic mobile subscribers outperform total mobile subscribers in mobile activities desirable to marketers creating a sophisticated mobile pull campaign as evident in Chart #2.

Chart 2:

While among Hispanic Internet Users, the Internet is the #1 medium by time spent, they are also voracious across devices. As 94% own a mobile phone, 76% are cell phone primary versus landline, and 50% who access the Internet via mobile phone do so daily or more often (about once per day (15%)/several times throughout the day (21%)/constantly throughout the day (14%)), according to the Terra.com Hispanic Syndicated Study by comScore for Terra USA.

A primary forecast trend, according to comScore and provided to Terra USA, is the emergence of mobile/cellular as the primary information/entertainment/networking technology with the following points:

• Persons born since 1980 tend to see the phone, not the computer, as their most important technology device
• Young persons (12-24) perceive email as their parents’ technology

“Dad, if you need to reach me, text me!”

To add support to this forecast, there were more txt messages last year than phone calls. 10

Be a Smart Marketer. Consider adding mobile to your marketing mix. Contact Terra to discuss the possibilities and synergies not only with Terra but also between Terra and Telefonica, Terra’s parent company. While mobile is the new elephant in the ballroom, it is now more familiar. Frankly, it is such a large elephant that mobile will be front and center for many Smart Marketer’s to come.

Sources:

1.) ‘How Consumers Allocate their Media Consumption Time. Includes Work Usage’. comScore Survey. Mar 09. Provided to Terra USA.

2.) McKinsey 2008 Survey of 1,988 executives worldwide.

3.) eMarketer. US Mobile Advertising Spending, 2008 – 2013. Note: includes mobile messaging advertising, mobile display advertising and mobile search advertising. Feb 09

4.) ad:tech San Francisco. ‘ MOBILEMIX Keynote: Surveying the Mobile Landscape in 2009 with Mike Wehrs.’ San Francisco, CA. 04.21.09

5.) eMarketer. US Mobile Phone Users and Mobile Internet Users, 2008 – 2013. US Mobile Phone Phone Subscriptions and Penetration, 2004 – 2014.

6.) Butcher, Dan. Starbucks runs mobile coupon loyalty program. MobileMarketer.com. 04.22.09

7.) eMarketer. Demographic Profile of US Mobile Phone Users Who Recall Seeing Mobile Advertising. Q4 08 (% of Respondents in Each Group). Citing Limbo, Inc and GfK NOP Research. “Mobile Advertising Report 4 th Quarter 08” provided to eMarketer Feb 5, 2009.

8.) eMarketer. Demographic Profile of US Mobile Phone Users Who Have Responded to Mobile Advertising. Q4 08 (% of Respondents in Each Group). Citing Limbo, Inc and GfK NOP Research. “Mobile Advertising Report 4 th Quarter 08” provided to eMarketer Feb 5, 2009.

9.) eMarketer. Demographic Profile of US Adults with Only Mobile Phone Service. Second Half 2005 - First Half 2008. Citing National Center for Health Statistics at the US Department of Health and Human Services. “Wireless Substitution. Early release of Estimates from the National Health Interview Survey, Jan – June 08. Dec 17, 2008.

10.) ad:tech San Francisco. ‘ MOBILEMIX Keynote: Surveying the Mobile Landscape in 2009 with Mike Wehrs.’ San Francisco, CA. 04.21.09

By Natasha Funk

Published:  April 09