Big Brands to Increase Mobile Budgets in 2016

Posted by GPShopper Press Coverage on Jun 24, 2015 10:42:00 AM
GPShopper Press Coverage
Article in Mobile Marketer
Written by Chantal Tode

GPShopper-Platform-Mobile-App-Features-CommerceA remarkable number of big brands are reviewing their media agency relationships in 2015, with the partnerships they choose likely to reflect mobile’s growing role as a must-have core strategy in 2016. 

According to MEC, which is currently pitching two major household brands, it is not just mobile, but mobile applications that brands are particularly interested in right now. 

“Native apps are more front-and-center is this round of reviews,” said Rachel Pasqua, mobile practice lead for North America at MEC. “How should they be positioned, how can media can be used to drive deeper engagements with the apps.

“Brands have come to the realization that apps are a fundamental CRM tool,” she said. “Their interest is not just to drive downloads, but how to create an app that will drive ongoing engagement.

“Brands have their work cut out for them, but if they can get it right, it can be a big win for them.”

The app factor
According to a number of reports, 20 or more large brands have put their media agencies in review in the past 6 months, accounting for at least $25 billion in spending. The marketers on the list include General Mills, Procter & Gamble, Volkswagen, Visa, Sony, Coca-Cola, Citi and 21st Century Fox.
Ms. Pasqua points to research from Flurry showing that chat and news apps are really the only ones capturing a significant chunk of users’ time on an ongoing basis right now.  This underscores how big a challenge it is for brands to create apps that customers will come back to time and again. 

In a sign of just how far mobile marketing has come, Ms. Pasqua expects the winning agencies will not necessarily have a specific mobile section in their pitches. Instead, mobile will be woven throughout as an integral part of the strategy. 

“I don’t think you could get past the first round if you don’t have a strong idea of how mobile will play a role every step of the way,” Ms. Pasqua said. “It is about mobile in the context of human mobility, moving across digital touch points.

“The ones that say, ‘Here is our mobile strategy,’ are going to be behind the eight ball,” she said. 

Mobile budgets
Many in the industry have long complained that mobile budgets are too small given the significant amount of time consumers are spending on their devices. 

“With what I am seeing firsthand, and in the marketplace, the emphasis that these brands are placing on reaching the mobile audience, I think you will definitely see a very strong uptick in spend,” Ms. Pasqua said. 

“If mobile is just fun, clever ideas about using phones as an ad medium, they're doomed,” according to Eric Bader, chief marketing officer at RadiumOne. “A legitimate mobile practice must bring integrated media executions, merchandising capabilities including m-commerce, in-store and location-based, and consumer relationship executions such as loyalty, CRM and compliance applications.”

Topics: Retail Tech News, Mobile Retail Apps

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