News Flash: Mobile is the Future! Is the Marketing World Keeping Up?

Last week Wal-Mart’s CEO Joel Anderson announced, with the proper captain-of-industry gravitas, that mobile is the future.

“I can't overstate how mobile is changing how we interact with our consumers,” he proclaimed at the 2012 Internet Retailer Conference and Exhibition in Chicago.

Why are still having this conversation when I, and a lot of agencies and brand marketers I know, have been saying this since 2005?

Let’s start with going back to 2007. That was the year that hundreds of thousands of Americans camped outside Apple stores and stood for hours in queues that wrapped around the block to part with up to $599 for the much-coveted “Jesus Phone” (I think we all know what insanely popular gadget I’m talking about).

In 2008 researchers at the Pew Internet and American Life Project released a report wherein tech leaders and analysts predicted that mobile devices will be the primary way most of us access the Internet by 2020. That mobile is the future hasn’t been news for a while, but Anderson’s quote made me wonder if marketers are truly doing enough to tap the enormous potential of these mobile devices that spend increasing amounts of time in our hands – and in front of our eyes.

Let’s take North America, for example. Last year, North American marketers spent $40.2 billion on marketing content as a whole. By comparison, they spent about $1.6 billion on mobile ads and marketing during the same year. That means mobile represents only a tiny sliver of the overall marketing budget pie – just over 4%.

When you consider that in the US alone 88% of adults have a mobile phone (46% of those devices are smartphones), you realize that the amount of money being allocated for mobile marketing just isn’t enough. It’s barely a drop in the bucket.

We’re fortunate to work with a number of companies who understand there’s an untapped goldmine in mobile marketing and that its potential can only grow considering the rates of smartphone and tablet adoption – and what they can do to connect and engage with consumers, and ultimately sell more stuff.

I understand the reluctance of the companies who are hesitant to allocate big budgets to any one channel, mobile being the least “tested.” But the world – and consumers – aren’t waiting around for them to dig up the willingness to make that leap. They are losing out on the ability to target consumers with relevant and timely messages delivered at moments of maximum influence.

So while Wal-Mart’s CEO may be a tad late to the party, I’m hoping that those words from the head of the world’s largest retailer will reassure gun-shy marketers enough for them to take some necessary risks.  Let’s see.

What Is The New Normal?

Reading an article in the New York Times last week called “But Will It Make You Happy?” struck me as sad, when it should have been uplifting (I think).

Cocooning is nothing new and a return to basics isn’t either. I lived through those phrases during the last recession and look how that turned out. But good on Wal-Mart for finding a way to capitalize on Americans’ desire to stay at home and spend more time with the family. Cha-ching. It seems no matter what the economic climate, most Americans will continue to find fulfillment via way of external sources, i.e., shopping, shopping and shopping. While it’s admirable that people like Tammy Strobel and Logan Smith can downgrade their living needs to just a couple of plates, a cup and a pair of shoes, that is hardly doable for the majority of American families. Besides, where is the balance in that?

And while it’s great to read that “current research suggests, unlike consumption of material goods, spending on leisure and services typically strengthens social bonds, which in turn helps amplify happiness,” will the focus on creating experiences versus the accumulation of material goods continue once the good times roll round again? I am undecided.

Which brings me to the V-shaped economic rebound.

Forbes analysts Brian Wesbury and Robert Stein recently launched a new column. Their prediction, which was released in advance of the official GDP stats last month (read here), told us that we are well on our way to a robust recovery, a V-shaped economic rebound. Their diagnosis included two generally held predictions: that we are bound to slip into another recession, or Depression Part 2, or that the economy is recalibrating to a ‘New Normal’ marked by anemic growth and persistently high unemployment. The latter sounds more like it.

Given that the vast majority of economists and analysts were caught unawares by the global financial meltdown and the severity of the recession that followed, the temptation to avoid the appearance of Pollyannaism at all costs is great. It is hard to argue with the unemployment numbers, which have shown precious little signs of improvement. And it is hard for me to conceive of a robust recovery without a substantial uptick in the number of Americans gaining full-time employment.

I’m no economist, but I think I am seeing more of the New Normal out there than anything else right now.

And then I have to ask myself, what exactly is the New Normal anyway?