Publishers

Mobile Supremacy, Get Connected!

May 2009

Recent research has indicated there are 4 billion mobile phones subscriptions globally and predictions are that 90% of the world will have access to mobile phone coverage by 2010 (Source: BBC.com). While mobile advertising is still in its infancy, the massive market penetration of the cellphone should already have turned mobile advertising into one of the biggest forms of marketing in the world, says Richard Mullins of Acceleration. "There are already some 3.6 billion handsets in use worldwide, meaning that there are nearly half as many phones as there are people in the world. About 320 million of those phones are to be found in Africa".

"By contrast, less than a quarter of the world's population (about 1.3 billion people) has internet access and only 33 million of these people are to be found in Africa. A mere 1.6 billion people worldwide read newspapers. What's more, the vast number of cellphones in the hands of people around the world is already translating into impressive traffic on the mobile internet."

He says that during August 2008, more than 5.1 billion impressions were tracked worldwide on the mobile internet, a number what will rise sharply as more users get their hands on the 'smart' phones that support high-speed data connectivity. Chris Rolfe of Mobilitrix feels that media planners are causing a bottleneck in the industry. "They don't know how to apply advertising to mobile. They don't have to buy the farm, they only pay for what they use."

He admits though, that pricing is "all over the place" and is putting some people off, and encourages mobile providers to charge for value – how many people they deliver for their campaign; not set-up and launch fees. "Mobile is a quantum leap in brand communications – it allows the brand to talk directly to the consumer. That is the Holy Grail in marketing!"

Rolfe emphasises that mobile is emerging as a credible and specifically measurable environment: "Some creative don't like this – they wan the emotive impact of a billboard and say that's not measureable. But in a down economy, you have to quantify." His prediction is that mobile spend will reach radio and TV comparatives in five years, specifically in emerging markets, and that mobile marketing will exceed online spend in SA in the next couple of years, as it is a much more accessible and immediate medium to engage with the mass market. "Marketing messages will get more sophisticated; spam just irritates. You have to allow people to people to opt in. Currently, consumer data is being abuses... and consumer privacy issues in the mobile space will force advertisers to be more mature about it."

His do's and don'ts to mobile advertising are:

1. Don't spam people. If they request a voucher, be mature with their data – it doesn't mean they want to be in the database for 2am spam messages. Respect what people are doing with their phones. Our phones are our personal space, our tools.
2. Be open for testing, not everyone has the answers. Brands shouldn't pay upfront usage fees – they should pay to test and see what works for them.

Mullins agree with Rolfe that mobile advertising is being held back unfairly by a lack of understanding at agency and client level. However, there are technical reasons too. Mullins explains that the fragmentation of the audience across disparate technologies is a hindrance to consistency of execution of advertising messages; as is the measurement of users and their activity via mobile.

So what can publishers do to move the market?
Mullins advises:

• Capitalise on the opportunity that mobile offers to engage with readers more effectively by delivering relevant content and interacting without limitations of time and place.
• Recognise that the mobile space is an opportunity to increase available inventory and hence sales, and to provide richer experiences for both readers and advertisers.
• Drive user demand for mobile content.
• Work towards greater standardisation of mobile ad formats and campaign measurements.
• The evolution of the mobile ad market will help ensure that better targeting capabilities are offered to advertisers. In the interim, publishers should make use of tools like SMS surveys to learn more about their audiences to ensure that they can deliver more customised and relevant content and advertising to them.

Mullins advises that just like the early adopters of the web cleaned up with early advertising, so too are those publishers and advertisers that are marketing via mobile today. Positioning themselves to take advantage of opportunity now.

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