This story was delivered to BI Intelligence Apps and Platforms Briefing subscribers. To learn more and subscribe, please click here.
BIIGlobal smartphone penetration is driving up mobile as the primary mode of accessing the internet, according to a new report from mobile ad firm Zenith. The firm projects that at the current rate of growth, mobile devices will account for 75% of all internet use in 2017 globally and 79% in 2018.
As mobile becomes increasingly important to the online experience, brands and businesses will need to ensure their mobile offering is optimized for the user.
The main drivers behind the projected growth of mobile internet are rapid growth of smartphone ownership, access to faster internet, and the increasing popularity of large-screen devices.
Already, smartphone penetration — the share of the population with smartphones — currently sits at 56% globally, up 33 percentage points in just four years, notes Zenith. Smartphones have become more accessible to consumers in emerging and mature markets alike as the cost of high-performing devices continues to decline.
4G is becoming more readily available in a greater number of markets globally. 4G supports larger amounts of data than 3G and 2G at faster speeds, giving users the ability to spend more time in richer media. Globally, 4G subscriptions are projected to grow at an annualized rate of 25% between 2015 and 2021, to reach 4.3 billion subscriptions, according to Ericsson.
Phablets — smartphones with screens 5.1 inches and larger — are quickly growing in popularity. By 2017, phablets are expected to account for more than half of all smartphones shipped globally, according to Flurry. The large-screen smartphones are proving increasingly popular as mobile user behavior shifts toward more visual-heavy activities such as online video and gaming.
The forecast underscores the importance of brands and businesses ensuring that their mobile strategy is mobile-first. To best reach consumers, brands need to focus on where consumers are spending their time.
This doesn't necessitate building an app per se, but making sure that the mobile website supports a solid user experience, rather than being a miniature version of the desktop offering. This includes creating advertisements optimized for the mobile experience. Zenith projects that mobile will overtake desktop's share of internet advertising in 2017, growing further to make up 60% of all internet advertising by 2018.
Providing further support for the overall shift toward mobile, Google split its search indexes last month between mobile and desktop in order to provide more accurate and mobile-relevant search results. This means that businesses without a mobile experience could miss out on a massive chunk of internet users in the future.
Jessica Smith, a research analyst at BI Intelligence, has compiled a detailed report on mobile marketing that takes a close look at the different tactics being used today, spanning legacy mobile technologies like SMS to emerging capabilities like beacon-aided location-based marketing. The report also identifies some of the most useful mobile marketing technologies that mobile marketers are putting to good use as parts of larger strategies.
BII
Here are some key takeaways from the report:
As consumers spend more time on their mobile devices, marketing campaigns are following suit. Mobile ad spend continues to lag mobile time spent, providing an opportunity for creative marketers.
Marketers should leverage different mobile tactics depending on the size and demographics of the audience they want to reach and the type of message they want to send. With all tactics, marketers need to respect the personal nature of the mobile device and pay attention to the potential for communication overload.
Mobile messaging — particularly SMS and email — has the broadest reach and highest adoption among mobile users. Messaging apps, relative newcomers but gaining fast in popularity, offer more innovative and engaging outreach options.
Emerging technology, such as dynamic creative optimization, is breathing new life into mobile browser-based ad campaigns, but marketers should keep an eye on consumer adoption of mobile ad blockers.
In-app advertising can generate high engagement rates, especially with video. Location-based apps and beacons offer additional data that can enhance targeting capabilities.
In full, the report:
Identifies the major mobile technologies being used to reach consumers.
Sizes up the potential reach and potential of each of these mobile technologies.
Presents an example of a company or brand that has successfully leveraged that mobile technology to reach consumers.
Assesses the efficacy of each approach.
Examines the potential pitfalls and other shortcomings of each mobile technology.
To get your copy of this invaluable guide to the world of mobile marketing, choose one of these options:
Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
Purchase the report and download it immediately from our research store. >> BUY THE REPORT
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile marketing is rapidly evolving.