Technology | Media | Telecommunications

Saturday, January 23, 2010

Marketers Plan to Develop New Mobile Apps


eMarketer reports that mobile application (app) investment should grow significantly in 2010, according to the latest market study by DM2PRO and Quattro Wireless.

In contrast, spending on social media apps will stagnate -- even though more marketers have already developed those applications. Among those marketers who already had an social media app in 2009, however, Facebook was the leading platform.

Fewer than one-half of marketers created either a mobile or social app in 2009, but most plan to invest in a mobile app this year. The Apple iPhone is the platform of choice, followed by Google Android.

"Engagement" was the top reason to choose either mobile or social as an app platform, but social sites were perceived as better for many top goals -- including engagement, audience targeting, sharing and branding potential, and reach.

Mobile, however, scored higher on creative control and persistence.

The top one-third of advertisers and agencies using mobile apps planned to up their investments by 75 percent or more. Marketers who used apps reported a growing market, client demand and increased standardization in the app world as reasons to spend more in the coming months.

Those same reasons would spur publishers and marketers to develop mobile applications. They were also interested in better tools, distribution and ways for users to discover their apps.

Those factors will only increase in importance as apps continue to proliferate and marketers and other developers attempt to stand out from the competition.

Approximately 15 percent of advertisers and agencies spent more than 60 percent of their app budgets on promotion in 2009, but more than one-third spent less than 5 percent. Therefore, promotional budgets will need to increase along with overall investment for apps to find their way to users.

Perhaps we'll start to see advertiser-supported mobile apps being featured in Google Adwords campaigns. It's a low-cost method of app promotion and it enables better targeting of mobile smartphone subscribers. Eventually, mobile app stores will become saturated with new content.