1. Headquarters
Forrester Research, Inc., 400 Technology Square, Cambridge, MA 02139 USA
Tel: +1 617.613.6000 • Fax: +1 617.613.5000 • www.forrester.com
For Interactive Marketing Professionals
Executive Summary
After a record year for mobile marketing spend and success, mobile has finally arrived as a legitimate
marketing medium. In 2011, Forrester predicts that marketers will take the training wheels off mobile
programs and start investing in cohesive mobile marketing strategies. Designated interactive marketers
will become the first set of true mobile marketers, creating specific mobile search and display media
buying plans, while scrutinizing one-offs like campaign-based apps will for providing additive business
value. Location-aware services will remain in testing as the market continues to innovate and marketers
find value propositions that drive more consumer adoption. Despite increasing activity and more
strategic spending, inconsistent data and analytics will plague mobile marketers hoping to make a
business case for testing emerging opportunities.
2010: Mobile Marketing sees a surge of interest
More than one-third (34%) of interactive marketers are currently implementing or are planning to
implement a mobile program.1
Mobile marketers are building on the successes they have seen and
experienced from 2010. Mobile is poised for major investment in 2011 because:
· Case studies expose a healthy marketing channel. Scores of companies reported that early
tests yielded high click-through rates, two-to-one ROI, and even some examples of significant
mCommerce sales. For example, Roy’s Restaurant earned 800% ROI with a mobile-only Google
AdWords campaign using targeting based on location.2
Jason Maloney, vice president of marketing
for Roy’s said, “Our hyperlocal, mobile-only campaign drove a 40% increase in calls with a CPC 67%
less than desktop ads. The numbers are impossible to ignore. We have to invest in hyperlocal mobile
advertising as part of our long-term growth strategy.”3
· Innovations have gained traction. Unlike the early days of Internet marketing, which started from
nothing, there are interactive vendors and human capital with relevant experience that applies
directly to mobile. The combination of this relevant experience and preexisting consumer audience
sets a faster pace of innovation and implementation than anything seen in PC marketing. Location-
based social networks are a great example of something few marketers or consumers had heard of
a year ago but that big advertisers like Starbucks, McDonald’s, and Gap have already implemented
on campaigns.4
Look for more marketing innovations to emerge from technologies like mobile
couponing, barcodes, and augmented reality.
January 4, 2011 | Updated: January 18, 2011
2011 US Mobile Marketing Predictions
by Melissa Parrish
with Sarah Glass, Emily Riley, and Jennifer Wise

2. © 2011, Forrester Research, Inc. Reproduction ProhibitedJanuary 4, 2011
22011 US Mobile Marketing Predictions
For Interactive Marketing Professionals
· Consumer mobile usage is skyrocketing. Smartphones have fundamentally changed consumers’
mobile behavior, exposing them to a broad range of media channels — like email, Internet
browsing, and apps — to engage with right from their pockets. The brisk consumer adoption
rates of these media devices have changed the mobile marketing ecosystem as well and will
continue to do so by adding more marketing opportunities and greater reach year after year.5
2011: Mobile Marketing Gains A Strategic Position In The Marketing Mix
Armed with case studies, new innovations, and a built-in audience, marketers will have more
confidence than ever to kick-start mobile programs in 2011. Forrester predicts that:
· Marketers will become app-athetic. Branded apps were certainly big news stories in 2010, but
consumers aren’t impressed with apps that provide little utility and only clutter up their phone
decks. Research suggests that though people download apps, many of these apps are deleted soon
after download or are never used again.6
As marketers wake up to consumers’ propensity to ignore
apps soon after download, they will question the ROI of their app investments. Lightly engaging
games, high-utility apps like The Weather Channel, and navigation apps will continue to live
natively on mobile devices while branded apps that don’t provide a reason to return will fall off.
What it means: The success metric for apps in 2011 will not be number of downloads but number
of active users. Though the rate of new, purely campaign-based apps will continue to grow, smart
marketers will realize the minimal value they provide customers, the infrequent repeat use,
and the high cost to produce and market them.7
In order to develop better mobile experiences,
marketers need to deliver on the unique value of mobile: immediacy, context, and simplicity.8
· Mobile Web search and display get the most resources. While never a “shiny object,” Google
actually accounts for 59% of all mobile advertising revenue in the US with a majority of that
revenue coming from mobile Web search and display. As marketers and industry realize the
glaring mindshare gap between apps and traditional tactics, a rhetoric change will occur with a
greater focus on how to optimize existing search and display resources for mobile.
What it means: You’ll perform best if you consider how your customers use mobile devices
before you allocate your mobile dollars. On average, consumers use the mobile Web and apps
equally, but they only use a limited number of apps such as for gaming, weather, and sports. For
marketers who want to draw a larger swath of users, mobile Web search and display are valuable
tools to consider.
· Mobile marketing will emerge from interactive marketing. With mobile marketing purchase
processes and strategy decisions strongly mirroring digital methods, mobile headcount has
so far existed within current marketing teams. These resources are masters first in marketing
methods like search or display marketing with minimal experience in mobile. As mobile
| Updated: January 18, 2011

3. © 2011, Forrester Research, Inc. Reproduction ProhibitedJanuary 4, 2011
32011 US Mobile Marketing Predictions
For Interactive Marketing Professionals
demands more time and responsibility, these resources will seek out opportunities to connect
with other people who are also learning their way through this new marketing form and starting
to form unique skill sets, departments, and vendor relationships.
What it means: Establish formal or informal knowledge groups to kick-start necessary cross-
functional communication. To do this, identify and connect the mobile resources throughout your
organization. This will allow for faster knowledge transfers and establishment of best practices.
· Email marketers will become mobile converts. In 2011, expect the addition of SMS and MMS
to connection points like Facebook and eBuddy. The mobile inbox already aggregates channels
like traditional email, Facebook email, and text messages. Direct marketers will centralize
their budgets in mobile to account for message aggregation and spend more on “right channel”
technologies from companies like Epsilon and Unica.
What it means: More than one-third of US online adults who own cell phones (36%) already
use them to send or receive email. 9
Email marketers must adapt by implementing standards
like providing a mobile-friendly preview format that’s accessible with one click. As new inboxes
develop, look to your email service providers and SMS vendors to create new formats that
function across PC, tablet, and mobile devices.
· Lack of mobile advertising standards restrains growth in analytics and distribution. There
are myriad technology issues that make distributing and tracking display ads on mobile devices
difficult.10
Organizations like the Mobile Marketing Association (MMA) and the Interactive
Advertising Bureau (IAB) will introduce standards, but don’t expect immediate adoption of
these standards by agencies, ad networks, or analytics providers. This will affect marketers who
want to run broad reach campaigns in the lurch as they struggle to work with multiple vendors
and prove the value of their spend.
What it means: You will have to be creative with data to prove the value of your mobile program
and secure future investment. Keep your analytics simple in 2011. Use one channel, one strategy,
and as few ad networks as possible at a time. Doing this will help you learn the technical
limitations of each tactic as well as how to best translate limited data into meaningful insights.
· Marketers will continue to look for the magic location-based service. Marketers will start
investing in a wide array of location-aware mobile services in 2011. Innovations in technologies
like triggered push notifications, augmented reality, and barcode apps/readers will evolve and
increase consumer adoption. Consumer adoption will be limited, however. Opt-in services and
applications that have clear and agreeable privacy policies will find the most traction, while
marketing that is pushy or insensitive to consumer concerns over location sharing will stall
adoption of location-based marketing.
| Updated: January 18, 2011

4. © 2011, Forrester Research, Inc. Reproduction ProhibitedJanuary 4, 2011
42011 US Mobile Marketing Predictions
For Interactive Marketing Professionals
What it means: Location-aware services are one of the biggest promises mobile can and will
deliver to marketers. But they are also prone to backlash as the privacy debate remains top
of mind among legislatures, the FTC, and the entire digital marketing community. To avoid
missteps, focus on services that offer a true value-add to customers, test small, fail early, and
lean toward services that are opt-in. It’s one thing to run a bad campaign; It’s another to lose the
trust of your customers.
R ec o mme n d ati o n s
2011 new year’s resolution: create a mobile marketing strategy
If 2010 was the year marketers tested mobile, 2011 will be the year marketers take a serious look
at what they — and their competitors — have learned and make steps toward creating cohesive
mobile strategies. To do this quickly and effectively, Forrester recommends that marketers apply
the POST methodology to your mobile marketing:
· People. Asking yourself who your target audience is and how they use their mobile phones
will provide necessary clarity for the rest of the POST process. Forrester has developed a
Mobile Technographics® ladder to help you characterize your customers and see how they
differ from the general population.11
· Objectives. Start with your overall marketing objective: What do you want to accomplish
with this marketing program? Are you conducting customer acquisition campaigns or brand
awareness? Do you want to increase sales? Once you have established your overall objective,
ask yourself how mobile can support your larger goals.
· Strategy. Once you define your goal, you have to create a plan for how to accomplish it. This
plan is your strategy. Types of questions you want to answer here are: What is my budget?
What resources exist today? What resources will I need to execute this new vision?
· Technology. Technology decisions are made last, not first, so you have all the inputs to
make an informed decision. There are a number of technology options in mobile, and too
often people choose a technology that doesn’t suit their consumers. For example, if your
customers search, what types of content are they looking for? You can add a number of
elements to paid search advertisements such as coupons, directions, and click-to-call links,
but you should only add features if they deliver value toward your stated objective.
Supplemental MATERIAL
Methodology
Forrester fielded its May 2010 US Interactive Marketing Online Survey to 309 interactive marketing
professionals. For quality assurance, panelists are required to provide contact information and
answer basic questions about their firms’ revenue and budgets.
| Updated: January 18, 2011

5. © 2011, Forrester Research, Inc. Reproduction ProhibitedJanuary 4, 2011
52011 US Mobile Marketing Predictions
For Interactive Marketing Professionals
Forrester fielded the survey in May 2010. Exact sample sizes are provided in this report on a
question-by-question basis. Panels are not guaranteed to be representative of the population. Unless
otherwise noted, statistical data is intended to be used for descriptive and not inferential purposes.
If you’re interested in joining one of Forrester’s research panels, you may visit us at http://Forrester.
com/Panel.
Forrester conducted an online survey fielded in April 2010 of 26,913 US online users ages 18 to 88.
For results based on a randomly chosen sample of this size (N = 26,913), there is 95% confidence
that the results have a statistical precision of plus or minus 1.4% of what they would be if the entire
population of US online individuals ages 18 and older had been surveyed. Forrester weighted the
data by age, gender, income, broadband adoption, and region to demographically represent the adult
US online population. The survey sample size, when weighted, was 26,749. (Note: Weighted sample
sizes can be different from the actual number of respondents to account for individuals generally
underrepresented in online panels.) Please note that this was an online survey. Respondents who
participate in online surveys have in general more experience with the Internet and feel more
comfortable transacting online. The data is weighted to be representative for the total online
population on the weighting targets mentioned, but this sample bias may produce results that differ
from Forrester’s offline benchmark survey. The sample was drawn from members of MarketTools’
online panel, and respondents were motivated by receiving points that could be redeemed for a
reward. The sample provided by MarketTools is not a random sample. While individuals have been
randomly sampled from MarketTools’ panel for this particular survey, they have previously chosen
to take part in the MarketTools online panel.
Endnotes
1
Source: May 2010 US Interactive Marketing Online Survey.
2
Hyperlocal advertising targets consumers with ads based on a defined proximity. It’s also called geolocation
advertising and location-based advertising.
3
More about Roy’s success with hyperlocal mobile marketing can be found on the Google Mobile Ads Blog.
Source: “Roy’s Restaurants achieves 800% ROI with mobile only campaigns and hyperlocal advertising,”
Google Mobile Ads Blog, December 8, 2010 (http://googlemobileads.blogspot.com/2010/12/roys-restaurants-
achieves-800-roi-with.html).
4
Though consumer adoption of location-based social networks is still small, with only 4% of the US online
population having ever used them, marketers see a great opportunity. To learn more about these networks
and the consumers who use them, see the July 26, 2010, “Location-Based Social Networks: A Hint Of
Mobile Engagement Emerges” report.
5
To learn more about how consumer adoption of smartphones is changing user behavior, see the January 19,
2010, “Engaging Smartphone Users” report.
| Updated: January 18, 2011
„ LinkTitle
Link Author

6. 62011 US Mobile Marketing Predictions
For Interactive Marketing Professionals
Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business
and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, customer insight, consulting, events, and
peer-to-peer executive programs. For more than 27 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For
more information, visit www.forrester.com.
©2011ForresterResearch,Inc.Allrightsreserved.Forrester,ForresterWave,RoleView,Technographics,TechRankings,andTotalEconomicImpactaretrademarks
of Forrester Research, Inc. All other trademarks are the property of their respective owners. Reproduction or sharing of this content in any form without prior
written permission is strictly prohibited. To purchase reprints of this document, please email clientsupport@forrester.com. For additional reproduction and usage
information, see Forrester’s Citation Policy located at www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time
and are subject to change. 58425
6
Data from Pinch Media shows that on average, apps usage drops precipitously after download. Source:
Zach Spear, “Average iPhone app usage declines rapidly after first download,” AppleInsider, February 19,
2009 (http://www.appleinsider.com/articles/09/02/19/iphone_app_usage_declining_rapidly_after_first_
downloads.html).
7
Apps that provide engaging experiences and encourage frequent use take a strong strategy and clear vision
to produce. If you’re a marketer who’s considering creating an app, please see the April 9, 2009, “The POST
Method: A Systematic Approach To Mobile Strategy” report.
8
Mobile represents a fantastic opportunity for marketers, but nonstrategic applications that offer no value
have left many mobile users unimpressed at best and frustrated with brands at worst. To learn how
mobile can add value to your brand, see the October 18, 2010, “Mobile Adds New Appeal To Your Brand
Experience” report.
9
Source: North American Technographics® Online Benchmark Survey, Q2 2010 (US).
10
Major tracking issues include multiple software development units (SDKs), transcoders that strip tracking
mechanisms, and inability to store cookies on mobile devices.
11
To learn about mobile Technographics segmentation, see the September 28, 2010 “US Mobile
Technographics®: 2010” report.