On August 27th, International Herald Tribune's Eric Pfanner ran a story titled "On Advertising: pitching Via cell".
This was a good summary piece about the developments in mobile advertising, the trend not only in text based advertising but the emergence of banner ads on the mobile Internet. It cites operators such as France Telecom's Orange and Hutchison's "3" who have started to sell banner ads on their portals. Moreover, it states "Analysts acknowledge that forecasts for the growth of mobile marketing and advertising are just educated guesses, but Jupiter Research sees a €700 million, or $895 million, market in Western Europe by 2010, up from less than €100 million now. Ovum, a telecommunications consultancy, forecasts a $1.3 billion U.S. market by 2010".
I am typically cautious of market figures quoted out to 2010, after all who in 1985 could forecast the growth of a new media called the Internet?. However, here are a few undeniable trends
- There are four times as many cellphones as there are PCs in the world today. More and more people - in the developed as well as developing areas of the world - have and use Internet connectivity via their mobile phones.
- The mobile phone is becoming faster, more data enabled, cheaper and more affordable (It certainly is now more so than a PC)
- The mobile phone is what a very interesting research project at Nokia calls part of your "core mobile essentials," meaning you do not leave your home without your money, keys, and your mobile phone. That is the one piece of equipment that is with us at all times. Key takeaway: This channel can not only reach you at all times, but can make information time, location, and context relevant!
- In an increasingly mobile world, the mobile phone is or will shortly be the communicator and the computing platform of choice. (Side note: Remember the palm PDAs, and how interestingly enough they morphed into the Treo line? Now phones not only embed computing capability, but also entertainment such as built-in mp3 players..)
So why wouldn't advertisers salivate over the opportunity to build a direct channel to the customer? We will see SMS based advertising morph onto on-line based ads. Why? Although SMS ads have proliferated, they are very niche, fragmented-by-nature (some short codes work in some markets and not others, and put the burden of remembering the short code, as well as the desired text, on the consumer.
I am sure organizations such as the AMA, as well as a few trials and errors will show that targeted, opt-in ads that promise to subsidize or pay for a service in return for viewing ads will emerge as the way to go. Are the figures correct? That's immaterial for now, its the trends that are correct. What will change the forecast figures are: how soon the AMA as well as the industry can develop ad standards as well as acceptable advertising tactics that are not only respectful of privacy but also deliver real value to the customer.
Some interesting reactions to the piece:
Daniel Applequist
You may ask why, as a technologist, I am so excited about the prospect
of mobile advertising? Well -- look at it this way: advertising is the
engine that is powering innovation in companies like Yahoo! and Google
right now.
Jill Stover
Should libraries be thinking about delivering their services via mobile devices? You betchya! In fact, some librarians are already dipping their toes into these promising waters.
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