Thursday, April 15, 2010

Borrell: Coupons First Big Mobile Opportunity

Borrell and Associates released an updated Local Mobile Advertising and Promotion forecast. Their analysis points to coupons as the most immediate opportunity -- not a surprise. 


"There’s something dramatic going on," said Gordon Borrell, CEO of Borrell Associates. “The fastest-growing and most obvious application is also the easiest to implement: text-based coupons,”  Borrell said redemption rates for mobile coupons are 10x that of mail- or newspaper-distributed coupons. 


Coupons are not a big surprise for the following reasons. 


1. The economic downturn has resulted in the the coupon redemption increasing for the first time in 14 years, according to Kathryn Koegel, President of Primary Impact Research.
2. Mobile usage in general is exploding at a much faster rate than many people are aware.


Local media should make note of this and mobile in general. Mobile is moving very fast and media needs to act VERY quickly and aggressively. 3G, 4G and smartphones provide for a truly mobile, always on, always available service. As a result, mobile Internet use is ramping faster than desktop Internet did. Many analysts predict that more users will connect to the Internet via mobile devices than desktop PCs within 5 years.


The Borrell report says mobile marketing reached $2.7 billion last year and is expected to grow 84 percent annually, hitting $57 billion by 2014. A subcategory – mobile advertising – is already in the billions. Local mobile advertising, according to the report, hit $285 million in 2009 and is expected to double this year to $586 million, then spike upward to $4.7 billion by 2014.