Mobile on Rise...Decreased Media Hurts Ad Market

Decreased Media Usage Hurts Ad Market

APRIL 19, 2010

Mobile only channel with rising media time

Online was the largest segment of media time in 2009, followed by TV and video, music and radio, and mobile phone usage.US ad spending was down in 2009 as marketers and consumers alike tightened their belts during the recession. And while Americans looked to save money and trim expenses, they also began to spend less time with media, causing a worse drop in ad spending, according to the Yankee Group.

Overall, US consumers spent less than 12 hours a day with media on average. That was down from nearly 14 hours daily in 2008, a 17% decrease. Yankee Group speculated in its report that the recession may have left Americans too stressed to enjoy as much media consumption as the previous year.

Activities decreased almost across the board, with reading, music and radio, and TV and video dropping most dramatically. The only increase in time spent was with mobile phones. Talk time on mobile was up 12%, while average daily mobile Web use rose 36% to 11 minutes. Texting was also up, by 55%, to take up 27 minutes a day in 2009.

Yankee Group's picture of media consumption differs from others, including Nielsen's Three Screen Report. For Q4 2009, Nielsen reported TV time was up and significantly higher than Internet usage. Nielsen relies on automated data collection, while Yankee Group polled US consumers. In addition, Yankee Group includes both personal and work Internet usage in its media consumption study, while Nielsen excludes work time.

Yankee Group believes the transparency in our consumer attention model provides a more accurate picture of consumer demand for media, while automated systems are more tuned to determining media supply, said the report. As connected devices flourish and multiply in consumers'™ lives, we further believe this attention-driven model will rise in importance as consumers struggle with an increasing tyranny of too much media.

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Mobile Marketing and Coupons

Elevating the Mobile Love Affair With Coupons

Written on Apr 8, 2010
Author: Meaghan Schaefer

The number of mobile coupons redeemed in North America is set to increase more than tenfold in 2010, followed by triple-digit increases in both 2011 and 2012, according to Yankee Group. All in all, some $2.37 billion worth of mobile coupon transactions will take place in North America in 2013, up from just $5 million this year.

Typically text messages or images sent to people’s mobile devices offering a discount redeemable in-store, mobile coupons are a win-win for everyone. Consumers get deals targeted to their current interests, past purchases and/or current location sent right to their phone, while marketers succeed in directly spurring purchases that can be tracked and measured through to the point of sale.

Many marketers have experienced great success with targeted and measurable online discounts and affiliate programs, and mobile coupons are a powerful way to extend the capabilities of online marketing offline.

From a consumer perspective, mobile coupons deliver not only a discount, but more importantly, a positive shopping experience. They don’t need to flip through circulars and clip coupons or search for promotion codes online, since mobile coupons are pushed to consumers’ phones.

Today’s mobile applications also can glean understanding about a customer’s product preferences and current location from GPS, CRM, and credit card systems, then match data with brand marketers’ promotions so that offers sent to phones are truly targeted. Mobile coupons are relevant, timely and easy… and they have the ability to dramatically alter the way people shop.

Brands and retailers are eager to adopt mobile coupons to reach consumers in a unique way. By sending relevant offers to people via their very personal, always-on mobile device, marketers can essentially speak right to a potential customer in a one-to-one dialogue.

This channel not only improves sales and loyalty, but the in-store experience. Mobile coupon alerts can also serve as an influence point when someone is in the vicinity of a store, providing a timely and targeted call to action.

One of the most effective reasons marketers like them is that mobile coupons are very measurable — marketers see not only how many coupons were redeemed, but which type of customers or segments responded to which offer.

Marketers can leverage this analysis to accurately understand customer behavior and target future offers. In addition, marketers can eliminate lengthy and expensive reconciliation processes that are standard with paper coupons. If consumers opt in to offers from brands to their mobile phones, marketers can wisely develop an intimate level of customer engagement.

Mobile coupons hold the promise of both direct marketing and one-to-one marketing. By delivering highly personalized incentives to a person’s mobile phone, marketers are promoting their brand right into the pocket of their target audiences at key influence points. The mobile commerce and coupon ecosystem will be one to watch as brand advertisers capitalize on this innovation.

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