The balance between money spent on developing a mobile site, offer or application verses the cost of promoting the mobile entity when it is finally complete seems to me to be pretty topsy turvey. It’s been irking me for some while.
In the off line world the oldest rule of thumb is that you would set your budget for the campaign or the promotion at no more than 20% of the overall budget. In fact, the majority of businesses cap it at around 10% of the overall budget available.
This split is tried and tested over decades and it works. However when you get to the mobile space we are finding that an awful lot of companies are investing vast amounts in the development and nondescript spends promoting the site/app.
There are currently 10million individuals in the UK using the mobile internet every month . If one spends £20,000 advertising to them on average CPM rates you’ll be achieving 200,000 impacts. This is a tiny number of those people eager to embrace what you’ve got to offer. On the back of these figure your traffic to the shiny new application or wap site will be relatively small. This may be the strategy and the right way to build up an audience, on the other hand it may not and your foray in mobile may have fallen flat on it’s face before it’s even begun.
I mentioned the old 80/20 rule above, in mobile many of the rules are being ripped up and chucked away. It may not be the case that you should only spend 20% on development and build in mobile. That said it’s a fact that even if you build the best bit of kit going if no one knows about it then its dead in the water.