Sections:

Mobile market finally arrives
Mobile ad budgets growing
Consumers like mobile ads
How people use smartphones
Who are mobile users?
Mobile search a growth area
Location-based ads key to success
Smartphone adoption explodes
One newspaper company’s view

A new report claims that U.S. mobile advertising revenues from search and display is projected to grow to $3.1 billion in 2013, an almost 20-fold increase from $160 million last year. Mobile local search advertising revenues – a subset of overall mobile ad spend – is also projected to grow from $20 million to $1.28 billion during the same period.
– The Kelsey Group’s Mobile Local Media Forecast (2008-2013)

Nearly 74 million people will access the Internet from a mobile browser or an installed mobile application by the end of 2009, eMarketer forecasts. That represents 26% of all mobile phone subscribers. By 2013, almost 44% of mobile phone subscribers will have Internet access.
– IAB SmartBrief

Mobile advertising will rise 19 percent next year to $3.3 billion, accounting for 6 percent of all digital spending. In the U.S., the number of people accessing news on their mobile devices daily has more than doubled to 22 million and those accessing a social networking site have increased fourfold to 9 million compared to just a year ago, GroupM said, citing comScore data from March 2009. As usage grows, marketers will likely spend more in the sector, GroupM said.
– AdWeek

35% of mobile users are now using a media service that connects to the network (other than SMS, MMS or voice). The number of ‘Just Voice’ users has fallen 18% year on year, from 45% to 35%
– comScore, Inc.

eMarketer estimates there will be 280.8 million mobile phone subscribers by year-end 2009. comScore Mobile pegs the figure slightly lower-233 million, including 29 million smartphone users.
– eMarketer

The mobile web reached 64.1 million U.S. users, as of August 2009.
– Nielsen, as reported by Millenial Media

The segments where advertising will decline most rapidly in 2009, according to the firm’s estimates, are newspapers (down 18.7 percent, to $35.5 billion); consumer magazines (down 14.8 percent, to $11 billion); radio (down 11.7 percent, to $15.8 billion); and broadcast television (down 10.1 percent, to $43.0 billion). Veronis Suhler expects a few sectors to increase their advertising dollars this year, including mobile (up 18.1 percent, to $1.3 billion) and the Internet (up 9.2 percent, to $23.8 billion).
– Veronis Suhler Stevenson

The firm sees a compound annual growth rate from 2008 to 2013 of 33% for mobile advertising outside of texting.
– Veronis Suhler Stevenson

“Weather.com attracts 12.5 million monthly unique visitors to its mobile site. People.com’s site generates 18 million mobile page views a month.”
– “Mobile Web Audience Is Larger Than You Think,” Forrester Research

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“62% of companies are increasing their budgets for mobile marketing even as they cut their budgets in many other areas.”
– Aberdeen Research

“Mobile advertising really starting to scale-clearly the horse is out of the barn. Brands are seeing success in mobile and we know this because they’re returning with bigger budgets…. Many barriers have been overcome in the last 18 to 24 months, and brands see that consumers are responding to the medium. Over the next 18 to 24 months we’ll see the next wave, where mobile search more popular and we’ll see more sophisticated campaigns that generate a lot of traffic.”
– Jamie Wells, global director of trade marketing, Microsoft (quoted in Mobile Marketer Daily)

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38 percent of respondents said they had taken action based on mobile ads. Almost 30 percent said mobile ads had led them to share information, while 22 percent said mobile ads had influenced a purchase decision.
– Universal McCann and AOL

The researchers found that 68 percent of smartphone users reported feeling positively engaged while using the mobile Internet, second only to the 70 percent of users who were positively engaged while on a computer. Alternately, only 47 percent of feature-phone users reported positive mobile site engagement.
– InsightExpress (via Mobile Marketer Daily)

68% of mobile users remembered ads. 14% responded to offers, and 18% forwarded offers to friends.
– NetInformer

Smartphone users are clicking on ads (53%), requesting more information or a coupon (35%) and making purchases via their handsets (24%). Some 82% of respondents report they use mobile devices at work. 81% use them while shopping.
– Universal McCann (via MarketingVox)

Nearly one-third of all smartphone owners are comfortable or very comfortable receiving targeted marketing on their device. Of these, nearly half are receptive to location-based offers at restaurants (or other offers to pursue at their leisure), and 45% would use mobile grocery coupons.
– Compete (via MediaPost)

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One out of every seven minutes of media consumption today takes place via mobile devices.
– Universal McCann and AOL

73 percent of respondents reported searching for maps and directions while 55 percent said they participated in social networking or sought out restaurant and movie listings or reviews. Forty-four percent reported seeking national news and information.
– Universal McCann and AOL

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Whereas early smartphone adopters were mostly business users using email and calendar functions, newer smartphone users, who represent the future trend of smartphone adopters, are attracted by consumer-oriented functions and applications and are more likely to use their phone for personal, not business, needs.
–CFI Group

Despite the stereotype of young urban adults and business travelers driving the purchase of so many iPhones and Blackberry devices, it’s teens and seniors who are coming onto the mobile Internet in droves. Nielsen recorded a 45 percent surge in usage among teens 13-17 in July, as well as a 67 percent spike among users 65 and older.
– AdWeek

Overall, the mobile Internet still skews male (53 percent), per Nielsen. But just as the female auditence started gravitating to the male-dominated Internet around a decade ago, women are increasingly using mobile devices to surf the Web. According to Nielsen, in July the female audience soared by 43 percent, versus a 26 percent growth spike seen among men.
– AdWeek

“Multitasking Parents and Mobile Millennials generate nearly two-thirds of mobile browsing sessions.”
– Novarra, Inc.

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Nearly 19% of US mobile consumers now use an advanced mobile device and 49% plan to purchase one within two years.
– The Kelsey Group and ConStat

“Given the nature of mobile devices, local queries on mobile should, over time, be greater than local queries on the desktop.”
– Mark S. Mahaney, Internet analyst, Citigroup Investment Resesearch (via TechCrunch)

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“As mobile is evolving, the real opportunity is to leverage the power of knowing where the consumer is located.”
– Knight Digital Media Center

“Traditional paper coupons provide 0.05 percent redemption. You can expect 20 to 40 percent higher rates with mobile.”
– Brent Dusing, CEO, Cellfire (via Mobile Marketer Daily)

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Only one in five of adults surveyed already owns a smartphone, but a sizable segment of those in their 20’s and 30’s in particular consider it a purchase they plan to make in the year ahead. For those surveyed who own smartphones, the most important features are accessing information from the Internet, sending messages and taking digital photos.
– Best Buy

When Facebook launched its mobile app in January, less than 10% of its traffic was via mobile phone. Just nine months later, more than 25% of traffic comes from smartphones.
–SmartBlogs.com

With an overall market share of 2 percent, Apple is a very small player in the market; however, among the 15 percent who regularly access the Internet on their phone, its share is five times higher.
– Forrester Research

Users of iPhones are voracious Internet users, with more than 80 percent using the mobile Web by some accounts.
– Mobile Outlook 2009 (Mobile Marketer)

“Creating hybrid on-the-go Web experience, greater than most current WAP experience but suited to small screen full HTML browser such as the iPhone and G1-Android, will be of greater importance in 2009 and beyond.”
– Robert Z. Samuels, director of mobile products at the New York Times Co. (via Mobile Marketer)

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As we continue to innovate and build our digital footprint on the Web, Gannett continues to invest in the next digital medium, mobile. In 2008, we successfully rolled out mobile Web sites for USA TODAY, broadcast and local newspaper properties. The recently launched USA TODAY application for the iPhone is among the most popular free iPhone applications, ranking as high as No. 4 in downloaded applications recently. USA TODAY is also available on Kindle. The USA TODAY mobile crossword, Sudoku and full featured iPhone applications offer Gannett a new and growing distribution and revenue stream. In connection with our 4INFO investment, we also offer national advertisers the opportunity to market to their consumer through an integrated marketing plan that combines USA TODAY print, mobile and text messaging.
– Gannett Co.

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