Remember back in the day when in almost every neighborhood you could find a store that was filled with row after row of shelves filled with movies that you could rent? Correct me if I’m wrong, but I think I remember it being called Blockbuster.
With the rise of Redbox and Netflix, the once king of movie rentals is now a thing of the past. Blockbuster got too comfortable being at the top, and instead of keeping up with the advances in technology, they stupidly believed that what had worked so well for them for years past would continue to keep them on their throne. They were actually quite defiant about Netflix being a threat. Here’s one of my favorite quotes on the matter made by the CEO: “I’ve been frankly confused by this fascination that everybody has with Netflix …Netflix doesn’t really have or do anything that we can’t or don’t already do ourselves.” Funny, Blockbuster, look at where you are now!
So how does Blockbuster’s demise tie in to digital marketing? Easy! It’s a cautionary tale that Marketers (or anyone in Business, really) should look to as a reminder of what could happen if they get too comfortable with the old ways that have worked so well for them in the past. Sometimes people can be so cynical about something new if they don’t fully understand it, which can result in a company ignoring the power that a new medium can bring to their company. Right now, the most powerful new medium in marketing is Mobile Marketing. Lets look at some interesting numbers:
According to a study conducted by comScore and a mobile ad network called Jumptap, more than half of all time spent online is now through a mobile device, with 12% on tablets and 39% on smartphones. Not only that, but they found that in just the last three years, the time people spend online has almost doubled, all because of the widespread adoption of mobile devices.
This is BIG, and Marketers are starting to react. According to Mashable, it was estimated that in the United States, Mobile Ad spending was supposed to reach $4 billion by the end of 2012, which was up 180% from 2011. Not only that, but its predicted that by the end of this year, mobile ad spending is supposed to reach $7.19billion in the U.S. and in 2016, over $20billion. HOWEVER, despite the billions of dollars spent on mobile advertising, this only represents a tiny fraction of the total ad spending, at 2.4%. It is expected that this percentage will increase to 11% of total ad spending by 2016, which will put mobile advertising ahead of radio advertising spending, but still behind print.
So my fellow Marketers, the takeaway from this cautionary tale is that if we don’t want to end up like Blockbuster, we need to re-examine our efforts in mobile advertising. If you aren’t already, start taking mobile advertising a little more seriously, or else you too might experience a humiliating downfall!
Interested in delving deeper into mobile advertising? Here are more good reads:
- Android and iOS Surge
- Guess Who’s Planning to Spend Big in Mobile? CPG Advertisers
- Smartphone Advertising Myths Debunked
- Classic Guide to Mobile Advertising
- The 5 Biggest Mistakes in Mobile App Marketing
- Cross-Screen Marketing Is The New Standard In Digital Advertising
- Mobile advertising to grow 300%, hit $40 billion by 2018