Mobile Strategy Lacking for Many Marketers

Even fewer have a strategy that works. Studies find consumers do research on smartphones, but make purchases on tablets

Regardless of what device you’re using to read this blog, here’s a stat that may startle you: Only one in six (16%) marketers has a formalized mobile strategy according to a new report from the CMO Council. That’s depressing when you consider that there are more than 6 billion mobile phones in use worldwide and they’re one of the most common tools that consumers use to do their research.

CMO’s latest mobile advertising report reveals that mobile relationship marketing (MRM) was the single most investigated, tested and piloted marketing activity of 2012. However, because it’s still hard to measure the effectiveness of mobile marketing, many marketers still have doubts about the ROI they’re getting from mobile. More troublesome: researchers found that among marketers who do have a strategy in place, only one in seven (14%) are satisfied with their results.

Lack of case studies and other barriers

Meanwhile, the majority of marketers (77 percent) say the lack of case studies demonstrating best practices is a hurdle. Other challenges include the ongoing fragmentation within mobile media, such as devices using different operating systems like Android and iOS, as well as the lack of a common technology platform for mobile analytics. CMO’s findings seem to mirror an IAB study launched last week that found a “lack of understanding” about mobile among both brands and agencies. That, according to IAB, is still the largest barrier to bigger mobile advertising budgets.

Phone = research; Tablet = purchase

Researchers now conclude that the smartphone is the device for research while the tablet is the device for purchasing. According to Nielsen and a separate study by the Global Web Marketing Team at Lenovo, nearly two thirds (65%) of consumers used smartphones only for research while one third (32%) used smartphones for research and purchasing. For tablets, almost half (47%) used them to do research and the same percentage used them both for research and purchasing.

When asked whether they preferred to download an app or use a mobile website to research and purchase products, 11 percent of consumers said they prefer to download an app, 33 percent said a mobile-optimized website and more than half (56%) said it doesn’t matter as long as they are satisfied with the information they are given. The key takeaway here folks is satisfaction with the results.

Macro View

The current market pullback is a little disconcerting, no doubt. But our view is that it’s more a function of the looming March 1 sequester deadline and Italy’s political instability than a signal of a true market correction.

There are still plenty of signs for optimism. Last week the Fed said it would continue to buy bonds until the labor market improves, which bodes well for keeping interest rates steady. Although jobs and manufacturing data remain disappointing, the housing market keeps improving. A report from the National Association of Realtors (NAR) showed existing home sales rose 0.4 percent last month pushing the supply of homes on the market to a 13-YEAR LOW! Meanwhile, NAR said the median price of a home nationwide is 12.3 percent higher than it was at this time a year ago.

Conclusion

The financial and economic cycles are increasingly decoupled. While the steepest phase of the stock market recovery may have already occurred, we’re still in the earlier stages of the economic recovery. Many business and consumers are just starting to shake off their slumber and pessimism. Good luck happens when preparation meets opportunity. Seriously. If you haven’t done so already, get your mobile house in order before it’s too late!

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TAGS: mobile, MRM mobile relationship marketing, CMO Council National Association of Realtors, Lenovo, tablets and smartphones for research, Nielsen