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M-commerce
 The resulting mobile commerce is growing at
over 50% a year, significantly faster than
desktop e-commerce at 12%.

 A study of the top 400 mobile firms by sales

indicates that 73% of mobile commerce is for
retail goods, 25% for travel, and 2% for
ticket sales.
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 The rapid switch of consumers from desktop
platforms to mobile devices is driving a surge
in mobile marketing expenditures.

 Currently, over 35% of all search engine

requests originate from mobile devices.
 Tablets, with their larger screens, are the
fastest growing and largest source of mobile
commerce revenues.
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 75% of mobile users are more likely to take
action after seeing a relevant local ad; those
who research products on their mobile
devices are ready to buy.

 70% take action within an hour, while 70% of

people on desktop PCs take action within a
week.

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 Figure 7.10 illustrates how rapidly mobile
marketing expenditures have grown, while
marketing on desktops is slowing and will
eventually decline.

 Analysts believe that if current mobile

marketing growth rates continue, by end
2018 mobile marketing will be over 90% of
all online advertising.
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 Mobile Marketing Tools: Ad Formats
 All the marketing formats available on the
desktop are also available on mobile devices.

 The major marketing opportunities in mobile

marketing are search ads, display ads, videos
and rich media, messaging (SMS/MMS/PPS),
and some familiar other formats like e-mail,
classified, and lead generation.
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 Local and Location-Based Marketing
 Location-based mobile marketing is the
newest and fastest growing segment of the
digital marketing universe.

 Location-based marketing targets

marketing messages to users based on their
location.

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 Generally, location-based marketing involves
marketing of location-based services.

 Location-based services involve providing

services to users based on their location.

 Examples of location-based services are:

personal navigation (How do I get there?)

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 Point-of-interest (What’s that?)
 Reviews (What’s the best restaurant in the
neighbourhood?)
 friend-finder (Where are you? Where’s the
crowd?)
 Market research suggest that consumers
have a high likelihood of acting on local ads
and purchasing the products and services
offered.
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 The ad formats used in local mobile
marketing are familiar—search ads, display,
SMS text messages, and videos.

 A very large percentage of these local mobile

ads will be delivered by search engines such
as Google and social sites such as Facebook.

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 Location-Based Mobile Marketing: The
Technologies
 There are two general types of location-
based marketing techniques: geo-aware and
geo-fencing.

 Geo-aware techniques that identify the

location of a user’s device and then target
marketing to the device.
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 Geo-fencing techniques that identify a
perimeter around a physical location, and
then target ads to users within that
perimeter, recommending actions possible
within the fenced-in area.

 The perimeter can be from hundreds of feet

(in urban areas) to several miles (in
suburban locations).
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 The Retail Industry
 The retail industry is composed of many
different types of firms. Figure 9.1 divides
the retail industry into seven segments.

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What’s New in Online Content and Media

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Online Content Consumption

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U.S. AD SPENDING ON
SOCIAL NETWORKS 62
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