I have seen a plethora of articles coming out telling the near futuristic tale that smartphones will become the standard for internet searches. I have also seen an equal amount about how most companies are deciding to wait and see how it pans out before they jump on. But is that the best idea?
I can picture it now, the CEO sitting in his leopard skin chair plopped in front of the fire made from endangered Cuban Mahogany with a paper in hand. For hours he sits there sipping his coffee, catching up on the past days news. Never once does he check his phone because for him, his phone isn’t important. He is. To him, his mobile phone is just a smaller version of the one that sits at home (who has a house phone anyway?). What he doesn’t understand is that he doesn’t relate to his consumer. He has become dated, old, and bit senile to say the least.
Mobile advertising will become the way most companies interact with their consumers in the coming years. Those companies who are able to jump on the infancy of mobile that we are in right now will have a first dibs at consumers. I remember when phones first got the capability to go on the internet in order to purchase ringtones and games. It expanded from there into actually being able to visit sites, although there weren’t many at the time that I needed to visit. But now we have become habitual visitors of multiple sites, exploring hundreds of one we never hear of each day.
In December of 2009 mobile phones accounted for 1% of all internet traffic. As of November of 2012 it has increased to 13%. But just because people are using the internet on their mobile device more, it doesn’t mean that their purchasing more on it as well. Or does it? According to an article (found here) written by Jill Krasny of Inc., during the holiday season a few months back, mobile made up 17% of all sales (up 55% from last year). Not only are that but people spending more time on their mobile device as well. The average American is using 1.2 gigabytes a month, up 510 megabytes from last year. That’s close to double!!
In 2011, American residents spent 10% of all their time spent on media on their mobile device while they spent 26% on the internet. It looks as though internet may be a holding strong, but when we look at how much advertising was spend on each, a gap should emerge. $30 billion was spent on Internet advertising in 2011 while only $1.6 billion was spend on mobile. But as more and more gets spent on Mobile advertising will radio, newspaper, and television falter? I don’t believe so because just as the TV did not kill the movie theater, whatever decides to stick around will have to adapt.