Indian Mobile Advertisers Await the Arrival of 3G Services

I have always stated that India is one place where mobile advertising could grow really, really big. A recent report from FICCI-KPMG supports by claim again. It says that nearly 80% of mobile users in India do not mind getting ads on their mobile phones if they get something in return – free music downloads, video games, and stuff like that. More importantly, nearly 50% of mobile users say that they would view the ads they get on their phones.

This news could not have come at a better time for mobile advertisers. 3G services are going to be launched in India by the end of 2010, after which mobile users will be able to access mobile websites and WAP sites at lightning fast speeds. Though India entered the 3G domain in 2008, only the government owned operator, BSNL, was allowed to provide 3G services to customers. So, a huge section of mobile users, who use the services of private players, had to wait for a long time. Later this year, private players will be allowed to provide 3G service, after which there could be a huge increase in the number of 3G users in India.

What makes this report even more special is that Indian mobile market is growing at an astonishing pace. In 2001, there were only about 5 million mobile users in India. Within a decade, the number has increased to a mind-boggling 635 million, which means the market has grown at a jaw-dropping pace. So, India is potentially the biggest market for mobile advertisers all over the world.

Indian mobile advertisers feel that the introduction of 3G services will allow them to reach out to their target customer base more efficiently. So far, SMS advertising has remained the popular choice of advertisers all over the country as a large number of mobile users do not have high-end phones or high speed data connections. The situation, however, is changing rapidly. The increasing number of high-end phone users and the introduction of affordable 3G services mean that advertisers will now be able to reach out to their customers through video based and MMS based ads. So, Indian mobile advertising industry is awaiting the arrival of private players in the 3G domain eagerly.

Categories: Cell Phone Advertising.

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Google Upbeat About The Future of Mobile Advertising

Depression or boom, good economy or bad economy, if there is one thing that you can bank on, it’s the performance of Google. The internet giant disclosed its first quarter results recently and the numbers were nothing short of incredible. The company saw a 35% rise in net profits ($1.9bn) and a 23% rise in total revenues ($6.7bn).

The lion’s share of Google’s revenues comes from online advertising, which is not very surprising. The company generated $4.4bn from ads on its own sites and $2bn from ads on third party sites. An interesting thing mentioned in the first quarter results was the success of mobile advertising.

Google considers mobile the ‘third axis’ and has asked its developers to focus on mobile advertising and technology. Eric Schmidt, in fact, has gone on record to say that the company encourages its developers to think ‘mobile first’.

Google is benefiting a lot from the growth of smartphones that can access the internet. The company also says that the launch of new products like the Nexus One has boosted the revenues considerably this year. Though no one knows the exact sales figures of Nexus One, it is said to be one of the top selling smartphones on the market today.

Google has been selling the unlocked version of Nexus One for $529 and the locked version, which comes with a T Mobile contract, for $179. Already, the phone works with AT&T Mobility and T Mobile USA’s 3G networks and other major operators like Verizon Wireless and Sprint Nextel are expected to support the device soon.

Google’s mobile operating system Android is also expanding its presence on the market rapidly. As of now, the OS is on 34 devices from 12 different mobile manufacturers. The company says that more than 60,000 Android devices are getting activated every day, which is quite a big number. The Android market now has more than 38,000 mobile applications and the number is growing by the day thanks to mobile app developers all over the world who are religiously working to come up with new, innovative apps.

The Google story can be summed up in just one sentence – so far, so good. Right now, more than anything else, the company seems to be focused on expanding its presence on the mobile market. While it is good news for mobile users, it is not so for Google’s competitors.

Categories: Cell Phone Advertising, Google.

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Customer-centric Mobile Advertising in 2020?

A recent report from OgilvyOne and Acision predicts an interesting scenario for mobile advertising in 2020.

The report says that in about a decade from now, in 2020, mobile phone advertising will be a lot more people-centric. Mobile advertisers, instead of spamming the inbox of the end user with random ads, will start delivering personalized ads which will be customized according to the end user’s preferences and tastes. In other words, the end user will determine what comes into his mobile phone. Since the content will be personalized and useful, a lot of people will be glad to opt into mobile advertising campaigns.

The report also says that the proliferation of 3G and 4G networks will fuel mobile advertising’s growth significantly. It will make services like mobile web, mobile social networking, and mobile TV, which are currently used only by a small percentage of mobile users, a lot more accessible for a large number of mobile users.

The report also goes on to add that the market will not be controlled by a handful of mobile operators in 2020. It is likely to become segmented and a lot of operators might consider offering ad-funded services. This could very well lead to a cohesive, symbiotic environment where both mobile operators and service providers complement each other and offer a lot of value for the end user.

Basically, the report pretty much sums up what I have been trying to say for a while now. If you need a little primer, you can check out this post. The future of mobile advertising, despite the objection of privacy champions, looks bright. In fact, it looks so bright that you can’t even look at it directly unless you are wearing shades.

Categories: Cell Phone Advertising.

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The Future of 3G and 4G Services - A Detailed Look

Wanna hear something really incredible? According to TeleGeography, by the year 2013, the addressable market for 3G and 4G mobile services will be, hold your breath, somewhere around 4.5 billion people. In other words, nearly one third of all mobile users in the world will have access to these high speed mobile networks. That is right folks. An unbelievably big number – 4.5 billion wireless subscribers.

It is expected that more than 95% of wireless subscribers in Western Europe will have access to 3G and 4G services in 2013, which is nothing short of amazing. Europe still continues to be the leader as far as mobile market is concerned. Nearly 90% of mobile users in the U.S. and Canada, more than 80% of users in Latin America and Eastern Europe, 70% of users in the Middle East and Africa, and 60% of users in the Asia Pacific region will have access to these next generation cellular services. While it could be said that this is a highly optimistic prediction, the possibility of such an occurrence definitely cannot be ruled out considering the rate at which mobile web and other mobile related services are growing.

I have often argued that India and China are the countries to look for when it comes to mobile services because of their huge population and rapidly developing economies. Now, looking at the numbers above, some of you might wonder why only 60% of users in Asia are expected to have access to 3G and 4G services. The reason is not hard to fathom. The population of China and India is so big that it is nearly impossible for mobile service providers to expand their networks to that extent in such a small period of time. So, even if only 60% of wireless users access 3G and 4G services, it is still a huge achievement.

The most important thing about this news is that it hints at the possibility of a global network of mobile phone users connected by the invisible web of 3G and 4G networks. This, in my opinion, could result in the explosive growth of mobile social networking. The ability to access social networking sites right from their mobile phone at the click of a button is something that every other mobile user, particularly teens and young adults, wants. While this news is certainly exciting, it is not that big of a surprise to me. After all, it is something that we all knew was going to happen sooner than later, isn’t it?

Categories: All things mobile phones, Mobile Social Networking, Mobile Web.

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Future of Mobile Advertising - Notes from Cannes Lions Ad Festival 2009

Mobile advertising was one of the important topics which were discussed at the 56th International Cannes Lions Advertising Festival. A number of executives representing big advertising and marketing firms around the world discussed the future of mobile marketing.

A lot of people who discussed the future of mobile phone advertising were of the opinion that it could become really big in the next two or three years. There are two reasons why they believe so.

1. The large number of mobile applications designed exclusively for smart phones which allow users to access multimedia content right from their mobile phones.

2. The ever-growing popularity of social networks like MySpace and Facebook which can be accessed right from the mobile phone thanks to mobile social networking.

Statistics show that mobile advertising has grown at an average of 45% in the last five years, which is incredible to say the least. In other words, what used to be a $3 billion industry has now become a whopping $30 billion industry in just about five years.

Let us now take a look at some of the most important points discussed.

1. A lot of executives said that they have launched a lot of mobile advertising campaigns in the recent past and the response so far has been pretty good.

2. Almost everyone was of the opinion that advertisers need to be more creative to generate interest among users. They were very clear that run of the mill ads which interrupt users every two minutes will definitely not work.

3. It was predicted that in the next three to five years, mobile marketing will account for nearly 10% of global media ad spending.

4. Highly targeted local mobile advertising campaigns will generate enormous amount of interest among small retailers. (Incidentally, this is something that I have repeatedly said in this blog. You can take a look at it here, here, here, and here.)

5. Emerging markets like Africa and Latin America hold a lot of promise as the number of mobile users has increased steadily in the past few years.

6. One of the biggest hurdles for advertisers around the world is the lack of compatibility between 3G networks in Asia and Europe.

7. 4G – the fourth generation high speed mobile technology – is something that advertising firms around the world are waiting for with bated breath. It is expected to hit the market in another ten years or so.

Categories: Cell Phone Advertising, All things mobile phones.

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