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Study: Marketers under-invest in mobile

Published on .

New York—Marketers should devote 7% of their advertising budgets to mobile rather than the current allocation of less than 1%, according to a study released by the Mobile Marketing Association. The study from Marketing Evolution, titled “MXS,” analyzed how marketers and agencies are allocating their advertising dollars in light of the ongoing changes in the mobile marketplace. Bypassing the traditional equation that share of time should equal share of budget, Marketing Evolution looked at an ROI analysis of mobile based on actual market cost, mobile's effectiveness and U.S. smartphone penetration and phone usage data. The analysis found that within the next four years, mobile's share of media spending is expected to increase to at least 10% on average, based on increased adoption of smartphones alone. According to the study, mobile advertising should be at least an $11 billion market in the U.S. However, marketers will spend $2.6 billion on mobile advertising in the U.S. this year, according to eMarketer.
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