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Base campaign strategy on target audience's mobile habits: Forrester

Mobile marketing is gaining momentum even in a down economy, according to a study by Forrester Research.

One in four interactive marketers in the United States is currently using mobile and nearly half of these (47 percent) will increase mobile spending this year. Forrester interviewed 23 agencies and mobile
marketing companies including Air2Web, Brand In Hand, HipCricket, iLoop Mobile, Jumptap, Millennial Media, Medio, Mobile Marketing Association, Motricity, NearbyNow, OgilvyInteractive, OMD, Point Reach, Quattro Wireless, SinglePoint and Vibes.

"The practice of mobile marketing is on the rise both in spending as well as the number of interactive marketers that are getting into the space," said Neil Strother, Seattle-based analyst at Forrester. "As we see momentum building and the various brands getting into mobile, we are able to establish a set of best practices.

"There are ways of going about mobile marketing that make the most sense," he said. "For example, brands need to not only focus on who their target audience is, but they need to figure out how they are most comfortable interacting with their mobile phone whether its text messaging, downloading an application or interacting with mobile content on the Web. Who you are targeting and what they do with mobile.

"It's really all about understanding the prospect and basing your strategy on that."

Even with marketers using a wide variety of tactics, three out of four consumers with mobile phones have yet to see an ad.

The Forrester report has three best practices for mobile marketing. The first is to identify the target audience's mobile habits.

The second is to master the tools of mobile to get up to speed. The last is to execute simple campaigns to start and adapt to evolving measurement standards.

Even as marketers master these skills, they'll face new challenges like how to reach a mobile audience that may become fatigued by the amount of pitches.

The study found that marketers use mostly text, coupons and banners as they drive into mobile.

Fifty-six percent of marketers use text for sweepstakes, voting or trivia contests. Mobile coupons resonate with marketers as well, with 44 percent using them as a direct-response mechanism that can be measured for effectiveness.

Many marketers boosted branding with paid sponsorships of mobile sites (42 percent) and banner ads (47 percent).

Overall, the report found that 77 percent of consumers don't recall being exposed to ads. Exposure will grow as more consumers adopt advanced devices with data plans that encourage mobile browsing and search experiences.

The report warns that marketers should borrow from online metrics, but be wary. Many metrics for mobile borrow from the online experience: such as number of impressions, click-through rates, downloads and conversions.

But tracking mobile users presents a problem since most mobile browsers do not support JavaScript or cookies.

Forrester projects that richer advertising formats beyond standard banners will become the norm.

For instance, Fanta launched a recent mobile campaign with help from Millennial Media, in which a click on a banner revealed links that launched in-banner videos.

Dockers used the motion-detecting feature of the iPhone to allow users to shake the device to get a dancer to show off a pair of pants.

"I wasn't really surprised that the overall growing interest in mobile is on the rise," Mr. Strother said. "It sort of confirms that even in a down economy, interactive marketers are looking for ways to reach consumers because consumers are not giving up their mobile phones.

"The mobile phone is a newer area and marketers want to capture that," he said. "If you can connect with people on their phone that's a unique one-to-one relationship."