UK Experiencing Mobile Marketing Boom

While companies continue to use mobile marketing tactics to promote and expand their businesses in the U.S. and in the U.K., the mobile marketing industry across the pond continues to trail its U.S. counterpart.  It seems everyone in the U.S. has a smartphone attached to their hand, which they use to send texts, make calls, look up information, browse social media and make purchases among many other activities. Smartphones and tablets are even surpassing laptops in popularity, as U.S. citizens are increasingly turning to mobile devices to retrieve necessary information. This frequent use of smartphones does not appear to be mimicked in the U.K. 

Recently O2 Media and the Marketing Institute surveyed 252 marketers in the U.K., finding two-thirds of marketers dedicating portions of their budgets to mobile rather than traditional media. Of these marketers, 14 percent obtained additional money for SMS marketing campaigns, and 7 percent redirected funds used in online / desktop marketing.

Despite these efforts, the idea that “marketing spend hasn’t followed where the eyeballs have gone” remains a concern, notes Fintan Lonergan, O2 Media’s managing director. The company works with clients such as Heineken, Aer Lingus, Ikea and Nissan, helping them connect to consumers.

In 2013, a mere 19 percent of U.K. businesses had dedicated 10 percent or more of their advertising budget to mobile marketing. “This is very low compared to the central role that mobile plays in consumers lives,” Lonergan adds. Only 7 percent of surveyed marketers said they worked for “a mobile-first organization,” with “lack of strategy” considered the biggest challenge Ireland faces in regards to mobile marketing. 

Progress is being made, however. Lonergan cites location-based targeting as a “really encouraging” development in the U.K., with more and more marketers focusing on mobile marketing strategy. In 2013, the most popular mobile marketing tactics were social media, SMS messaging, apps, mobile displays and  mobile-optimized websites.

“There is a lot of media attention on mobile and the growth of mobile and yet very little has been known about what marketers are doing within mobile,” says Lonergan. 

In the UK, Lonergan says mobile marketing has gone on “a hockey stick curve in the last 24 months,” noting a recent eMarketer study that found mobile advertising in the U.K. will likely surpass print advertising in 2014.

“Our marketing industry is lagging behind a bit, and that’s not a criticism, it’s just a fact,” he notes.

So why this “lag”? Perhaps it’s simply a matter of company funds, or maybe there just aren’t as many smartphone users in the U.K. Companies are provided with numerous other options in terms of advertising, such as email and social media, and success in those areas may prompt businesses to look at SMS marketing campaigns as unnecessary. Whatever the reason, it will be interesting to see how fast the U.K. catches up with the U.S. regarding this expanding form of advertising!