There is plenty of hype around mobile advertising. You can expect that given the people involved are the very same who create the necessary hype around everyday goods which we consume with conviction.
One must wonder though whether mobile carriers, who are so essential for making mobile advertising work, have enough faith in this relatively new line of business to actually invest the necessary resources.
If you look at the rough numbers, the most optimistic forecast for mobile advertising by Informa predicts that this line of business will reach $13 billion by 2011. Nice, but is it enough considering IDC Research’s forecast for operators’ revenue from voice and data to exceed $970 billion by 2012?
So the real question should be is mobile advertising good for operators because of the potential revenue, or does it go beyond?
In my view, mobile operators can really leverage advertisers’ quest to invade the mobile space by using it for what they care about most. And that is customer loyalty. In a saturated mobile market with over 100% penetration in the developing world, operators know that it is more cost effective to retain customers rather than buy them from the competition.
Mobile advertising provides a unique opportunity to give customers exclusive benefits at no cost given that an advertiser is sponsoring the associated royalty and data charges.
Imagine an operator who is able to treat its customers to free or discounted access to exclusive live mobile TV during the world cup thanks to a generous brand sponsorship.
So, mobile advertising can be instrumental to customer retention. It can also play a major role in having mobile consumers engage with the mobile internet and other mobile platforms when the associated costs are sponsored by brands.
Brands however should remember that customer gratitude for the benefits will always be shared between them and the operator. Therefore they must make sure they get the outmost visibility.
Tags: Advertising, Mobile Marketing
The issues limiting the success of mobile advertising can be narrowed to building general acceptance of the customers of mobile phone operators to the concept of mobile advertising. If the operator determines that mobile advertising has an appeal amongst its customers and can make additional income therefrom without alienating the customers, then they will surely support the concept more vigorously. The proponents of mobile advertising need to find a way to appeal to the “Whats In It For Me” WIIFM of the operators and the consumers alike. Bridging this gap is the key to success
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Mobile advertising in my opinion can open up for new business cases where in the end the end users can benefit from a free subscription sponsored by content providers and the oprators providing they read the advertisements which pops up on location and on occasion. The number of business cases are many and the only limitation is the imagination!
As competition increase all means will be used to catch new mobile subscribers and keep existing ones.
So let the competition begin!
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