Mobile marketing spending will fall by 38% this year, according to Outsell‘s Annual Advertising and Marketing Study 2010: Total U.S. and B2B Advertising.
If so, this will be the first year where a drop is recorded. Mobile spending by B2B marketers is expected to fall from $325 million in 2009 to $202 million this year, In 2009, B2B mobile spending rose 5%.
Mobile is the only digital channel measured by the publishing research firm that will experience a decline in B2B spending. B2B marketers are expected to increase their digital marketing expenditures this year on channels such as search, video, and social media.
Among the factors contributing to the expected mobile spending reduction is that marketers are so focused on allocating their post-recession pared-down budgets to campaigns producing high ROI, they are pulling dollars from mobile, which is considered experimental for B2B marketers.
Also, many businesses don’t base buying decisions on geographic proximity, a key element of most consumer-aimed mobile campaigns. And in B2B, there are long purchase cycles compared to consumer-aimed mobile campaigns.
Chuck Richard, vice-president and lead analyst at Outsell, says that although paid apps and mobile ads have not been major revenue streams yet, publishers cannot afford to risk losing potential mobile readers.
All in all, mobile’s share of B2B marketing spending is forecast to comprise only 0.4% this year. B2B marketers are expected to spend over half of their digital budgets on their websites, and that number is expected to grow 7.5% this year. Search engine marketing is expected to grow 17% in 2010. And growth is expected in spending on webinars, video sites, and social media.