NEWS20 March 2015

Mobile spend ‘insufficient', says report

US — Mobile campaigns raise brand awareness, drive sales and increase ROI, but not enough budget is allocated to the channel, according to a report by the Mobile Marketing Association (MMA).

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The Smart Mobile Cross Marketing Effectiveness (SMoX) report by trade association MMA assessed the campaign budgets from four major US brands: AT&T, Coca-Cola, MasterCard and Walmart.

Analysis of Walmart’s annual back to school campaign in the summer of 2014 showed that mobile impacted more consumers per dollar spent than both broadcast and cable TV. The report also revealed that mobile had driven 14% of change in overall shopping intent, despite accounting for only 7% of spend. Analysis of Coca-Cola’s and MasterCard’s campaigns showed similar disproportionality between spend and impact for mobile.

“At its core, SMoX proves the concept of same budget, better results and guides marketers on how mobile makes their marketing work harder,” said Greg Stuart, CEO of the MMA. “With very limited effort, brands can increase the performance of a campaign by 30% on average – and potentially much more – by simply reallocating funds.”