Wednesday, July 04, 2012

Attention Is the New Currency for Business Marketers
Mobile advertising and marketing gains adoption, share of budget. Tablet users act on ads and make purchases

Hard to believe 2012 is already half over, but the calendar doesn’t lie. It’s July 4th and on this Independence Day, let’s take a quick break from all our devices, find a comfortable hammock, beach blanket or chaise lounge and take a few moment to be thankful.

Yes, we’ve got a lot of problems at the municipal, national and global levels. But, the U.S. is still a free country. It has some of the happiest and most generous citizens in the world and a pretty good quality of life. Best of all, if you don’t like it here, you can always pack up and move somewhere else. We don’t hold our citizens hostage. We always bounce back from adversity and probably have the worst of the latest economic crisis behind us.
As you look up in the sky tonight, remember why we love pyrotechnics. It’s in our DNA. We’ve always been big, bold and loud. If the founding fathers were around today, they’d probably have signed a document called something like, “The Declaration of Go Big or Go Home.

We don’t penalize for failure and we believe if you’re not making mistakes once in a while, you’re not trying hard enough.

Our firm has long been an advocate of the entrepreneurial spirit and we think entrepreneurship is what’s going to create jobs and drive us out of our current slump as the prospect of a safe, secure corporate or government careers becomes less and less a reality for the majority of Americans.
Are we over-stimulated or not?
While traditionally thinking has been that trying juggle too many task dilutes the quality of our thinking and our ability to concentrate fully on each task. But, now researchers say our brains can be trained like other muscles in the body to adapt and reorganize its pathways too handle the many inputs of stimulation. For more on this notion, see Jenna Wortham’s thought-provoking article in Sunday’s New York Times.

While some brains (and age-groups) seem more adaptable to digital multi-tasking than others, many think our species will continue to evolve to cope with an era of increasing and round-the-clock stimulation.
To reach this new multi-tasking consumers and clients, smart marketing—not excessive marketing--will win the way in the front door.

Mobile, mobile and more mobile
If you think you’re seeing more advertising on your mobile devices these days, you’re not alone. Researchers say mobile advertising increased 150 percent to $900 million in the first quarter of 2012 from $400 million in the year-earlier period, according to research firm IDC. Mobile now accounts for nearly 10 percent of the overall advertising pay, up from 7.1 percent in the fourth quarter of 2011.

The Interactive Advertising Bureau last month estimated mobile ad spending worldwide in 2011 reached $5.3 billion, including $1.6 billion in the U.S. And a new study by the OPA and Frank Magid Associates found that U.S. tablet adoption has nearly tripled to 31 percent in 2012 (74 million tablet users), up from 12 percent (28 million users) in 2011 and is expected to reach 47 percent by mid 2013.

What encouraged us most about the research is that 38 percent of tablet users have made a purchase after having seen tablet advertising, buying an average of $359 in products in the past year. The research also found that 29 percent of tablet users indicated that tablet advertising drives them to research products and 23 percent have clicked on an advertisement.

Mobile marketing gains adoption

Meanwhile, according to a new StrongMail/Zoomerang survey of business leaders, only 45 percent of companies are conducting some form of mobile marketing. Mobile websites, mobile applications and QR codes seem to be the most popular forms of mobile marketing.

Researchers found that nearly half of businesses conducting mobile marketing have achieved a basic level of integration between their email and mobile programs, with top areas of focus being mobile landing pages (32%), mobile number capture at email sign-up (25%) and mobile optimized email templates (22%). Less than one third of businesses (29%) are doing more sophisticated things such as leveraging mobile response data to optimize offers in email or other channels.

According to researchers, mobile was most often used to increase sales (cited by 59 percent of respondents); to improve customer service (52%), to increase brand awareness (49%) and to acquire new customers (45%).
Nearly 40 percent cite lack of strategy as top reason for lack of adoption, followed by lack of resources (22%).
Macro View: Gains in business activity and home sales
Despite yesterday’s disappointing IMF forecast for the U.S. economy yesterday, we were encouraged by Friday’s report from the Institute of Supply Management that showed another increase in its monthly purchasing managers’ business activity barometer to 52.9 in June. Anything above 50 is considered “growth” rather than “contraction.”
Also, new homes were sold in May at the fastest pace in more than two years. The increase suggests a modest recovery is continuing in the housing market, despite a persistently lousy job market.
The Commerce Department said earlier in the week that sales of new homes increased 7.6 percent in May from April. That is the best pace since April 2010, the last month that buyers could qualify for a federal home-buying tax credit. What’s more, in the heavily populated Northeast, new home sales accelerated a whopping 36.7 percent over the same period.
And the National Association of Realtors last week that pending home sales climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010.


From where we sit, psychology (and uncertainty about the November elections) seems to be driving business conditions more than hard data.  As always, those who can think, act and execute before the official “All Clear” signal comes out are the ones who will continue to be ahead of the pack.
Enjoy the fireworks tonight. And when you get back to the office, remember Go Big of Go Home. That’s what our country is all about.


TAGS: Jenna Wortham, OPA, Frank Magid Associates, Go Big or Go Home, Strong Mail, Zoomerang, home sales, Fireworks, July 4, National Association of Realtors, IMF 

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