Mobile marketing allows advertisers to communicate with consumers and businesses on the go. The manufacturers of most major brands use texting and multimedia messages. A big part of the growth is due to the mobile search business of Google (Cotton, 2012). Spending on mobile ads is expected to grow 80% from $1.45 billion in 2011 to $2.61 billion in 2012. Younger people are typically the most accepting of mobile advertising (Loechner, 2009). Over one-third of cell phone users were exposed to mobile advertising in 2009 and 16 percent of the people exposed to mobile advertising responded to the ads via text messaging.

Mobile marketing continues to become more popular as a way to reach specific audiences. Although most media budgets are still spent predominantly on traditional media, shifts in spending are occurring as the media landscape continues to change. Part of the budgeting process includes deciding how much money to allocate to different media. Finally, they conduct research to figure out how much the activities, or tasks, cost in order to develop a budget. Then they determine what activities-commercials, sales promotions, and so on-are necessary to accomplish the objectives. When Kmart faced bankruptcy, they cut back on expenditures, yet they kept their advertising inserts (free-standing inserts, or FSI) in Sunday newspapers to remain competitive with other businesses that had an FSI.ДЄ more rational and ideal approach is the objective and task method, whereby marketing managers first determine what they want to accomplish (objectives) with their communication. Other companies are forced to cut back on their spending or pursue more targeted promotions. During a recession, some firms feel like they must spend as much-if not more-than their competitors to get customers to buy from them.

This method is designed to keep a brand in the minds of consumers. Other companies may decide to use competitive parity-that is, they try to keep their promotional spending comparable to the competitorsвЂ™ spending level. As a result, you had to modify your plans and not do everything you planned. Such a situation may have happened to you when you planned a weekend trip based on what you thought you could afford, and you did not have enough money. Many small businesses think theyвЂ™re going to have money for promotion, but they run out and cannot spend as much on promotion as they had hoped. Unfortunately, things often cost more than anticipated, and you may not have enough money. The affordable method, or what you think you can afford, is a method used often by small businesses. However, many firms use this method because it is simple and straightforward. This method does not take into account any changes in the market or unexpected circumstances. The simplest method for determining the promotion budget is often merely using a percentage of last yearвЂ™s sales or the projected sales for the next year. Several methods can be used to determine the promotion budget.

Understand how the budget can be allocated among different media.ДЄn offeringвЂ™s budget is a critical factor when it comes to deciding which message strategies to pursue.

Understand different ways in which promotion budgets can be set.

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