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Call for mobile spend to increase

News, 20 March 2015

NEW YORK: Mobile raises brand awareness, drives sales and significantly increases ROI yet insufficient budget is being allocated to the channel, according to a new study of campaign spending.

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

It concluded that reallocating to mobile would drive incremental impact for each of the campaigns and make existing budgets work harder.

For example, analysis of Walmart's annual Back-to School campaign in the summer of 2014 found that mobile impacted more consumers per dollar spent than both broadcast and cable TV.

Mobile also drove 14% of change in overall shopping intent despite accounting for just 7% of spend, the report said.

Similarly, mobile accounted for just 5% of the budget for Coca-Cola's Gold Peak Tea campaign of Spring 2014, yet it generated 6% of sales on top of driving 25% of top-of-mind awareness.

And regarding MasterCard's Travel campaign of Q4 2014, which sought to raise awareness of its Concierge app, the report asserted that "mobile worked almost twice as hard compared to the campaign average, in terms of the number of people it converted on image per dollar spent".

Greg Stuart, CEO of the MMA, urged marketers to work out how to leverage the power of mobile effectively and optimise spending in their marketing mix.

"At its core, SMoX proves the concept of same budget, better results and guides marketers on how mobile makes their marketing work harder," he said.

"With very limited effort, brands can increase the performance of a campaign by 30% on average – and potentially much more – by simply reallocating funds," he added.

Data sourced from Mobile Marketing Association; additional content by Warc staff