Mobile Marketing Seen Flourishing In 2010

In what will likely otherwise be an unremarkable year for media ad spending, mobile marketing is expected to surge in 2010 as the number of portals, such as iPhone apps, multiply, an industry analyst said Monday.

“We believe that this will finally be the breakout year after all the other breakout years we heard about in the past,” said Kip Cassino, Borrell Associates VP of research and development.

Speaking at Borrell’s 2010 Local Online Advertising Conference in New York, Cassino said he expects mobile marketing to double this year, rising from 4% to 8% of all online marketing. By 2013, about half of all online ad dollars will be spent on mobile, he said.

“By the next decade, we think mobile devices are going to replace computers, “ said Cassino, explaining that the number of iPhone apps alone -- which give advertisers opportunities to target consumers -- has grown from 30,000 to 150,000 in just one year. “You won’t buy a laptop anymore. Online will be moving.”

However, Cassino did not paint as rosy a picture for overall media spending in 2010.

Although media advertising spending this year is expected to ring in at $234.5 billion -- a 7.6% increase from 2009 -- that number still does not bring spending up to the levels of 2008, before the full ramifications of the economy hit.

Ad spending dropped 27% in 2009. It is not expected to return to 2008 levels until 2012, Cassino said.

“Our outlook for 2010 is relatively good, and that means that it’s better than last year,” Cassino said. “Better than last year in terms of 'I’m still damn sick with the flu but I’m better off than I was.' ”

Cassino said the reason behind the limited growth is fairly simple: “We’re not seeing jobs, and if you don’t see jobs you’re not going to see an outlay for goods, either consumer or business-related.”

Meantime, broadcast TV and online advertising are expected to experience some “good improvement” this year, he said. Television stations will benefit from the $4.2 billion expected to be spent on political advertising. About 63% of that money will likely go to TV, he said.

Online advertising is expected to grow by 15%. Money spent on promotions also is expected to rise by 5% percent as the appeal of traditional inventory, like banner ads, continues to wane, he said.