Mobile advertising in India will be a $100 million market soon

With over 270 million mobile users, India is considered probably the hottest mobile phone market in the world. With this being the case, mobile advertisers are trying to cash in on the opportunity, as expected. As we’ve already seen, Indian operators are excited about mobile advertising and they see it as a potential long term revenue generating model. So, it’s only a matter of time before mobile advertising takes off big time in India.

Industry experts have predicted that mobile phone advertising in India would be worth more than $100 million in just a few years from now. Considering the market is currently valued at a measly $1million, it looks like quite a prediction. But experts firmly believe that the Indian market has the potential to become one of the top players in the world as far as mobile advertising is concerned. However, there are a couple of issues which need to be addressed to make this happen.

First, the cost of mobile web should be brought down. Though data plans in India are pretty much affordable, mobile web is one area where they can bring down the cost furthermore to attract more users to use the mobile internet facility regularly.

Second, the issue of revenue sharing between advertisers and mobile operators is an area of concern. Right now, the ratio is 70:30 with 70% of the revenue going to mobile operators and 30% going to advertisers. Understandably, advertisers are not exactly happy with this disproportionate sharing and they want this ratio to be revised.

Experts say that if mobile operators and advertisers could address these issues, the market may reach the $100 million mark sooner than later.

I actually think the issues mentioned here are common for markets all over the world. Even in the U.S., not everyone with a web-enabled phone is enthusiastic about surfing the web regularly, as the data plans are pretty costly. And the issue of disproportionate revenue sharing is not unheard of either, as the spat between Verizon and Google is well known. So, it’s basically an inherent flaw in the system. Unless people address this issue, there will always be hurdles in the path.

Categories: Cell Phone Advertising, All things mobile phones.

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Will newspapers go mobile?

Websites are trying to reinvent themselves by going mobile. Corporations are trying to reinvent themselves by going mobile. Advertisers are trying to reinvent themselves by going mobile. Banks are trying to reinvent themselves by going mobile. What’s next on the list? Newspapers, they say.

When you look at the current scenario, it looks like an obvious transition for newspapers. The circulation is declining by the day as people are more and more getting used to the content available on the internet and the mobile phone. In this case, newspapers hardly have a choice.

Fortunately, the bigwigs of the newspaper world have realized the need for this transition. Already, we have seen Associated Content launch its mobile portal and I have no doubt it will be followed by other news networks. The writing is on the wall. With 3.3 billion active users, mobile market is the biggest market there is. Realizing this, U.S. mobile carriers have invested an astonishing $40 billion to retool themselves according to the new mobile age.

Currently, more than 30% of mobile users surf the internet on their mobile phone. The number is rapidly rising as new mobile users these days mostly go for web enabled mobile phones. With this being the case, newspapers have to find a way to get into the mobile phone at any cost.

The newspaper, fortunately, is almost tailor made for a medium like mobile phone. The specialty of newspapers lies in their ability to provide local content, which is exactly what mobile users want. The more local your data is, the better it will be for the users, since most of them use their mobile phone to find out local information like weather, local events, and so on. So, the transition will be seamless, so to speak. When newspapers go mobile, it will also mean a huge opportunity for mobile advertisers to be able to display highly targeted ads along with the local news content.

What needs to be done – this everyone seems to know. When will it get done? That’s the question. Don’t you agree?

Categories: All things mobile phones, Mobile Web.

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Innovative mobile advertising campaign from Japan

It’s weekend time and, as usual, I started digging into the RSS feeds I’ve subscribed to. And I came across this news which I thought was very cool.

Tohato, a snacks company in Japan, has done a phenomenal job in interactive mobile advertising. Tohato has come up with a mobile advertising campaign based on its two popular brands of spicy snacks namely Habanero and Satan Jorquia.

The idea is simple. All you need to do is, buy a pack of snack, scan the 2D barcode printed on the pack, and enter the game via your mobile phone. First, you’ll be asked to pick your favorite brand between Habanero and Satan Jorquia. Each brand has its own ‘evil army’ and whoever chooses that brand becomes a part of that army. There will be a ‘World’s Worst War’ in which both these armies will fight against each other.

You can also move up the ranks in the army by recruiting your friends to join your army. In turn, they could recruit their other friends to join the army. As more and more people join through you, you’ll be promoted. There are twenty battlefields in which these armies will fight against each other and after every fight, details like how many died, how many were promoted, which battlefield was captured by whom, and other things will be delivered to you via your mobile phone.

The response for this campaign has been great so far, as the game is highly engaging. The ad agency in Japan which created this mobile advertising campaign has already got several awards worldwide for the best mobile campaign.

Japan once again has proved that it’s miles ahead of other countries when it comes to mobile advertising. If you notice, using QR codes in mobile advertising campaigns has paid off big time and it has made their job every so easy. I for one, as a mobile user, find the idea of scanning the barcode easier than say sending a text message to get more details on a particular product. I really hope that mobile advertisers in the U.S. and Europe take note of this and use QR codes in their mobile advertising campaigns.

Categories: Cell Phone Advertising, All things mobile phones, Mobile Games.

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A look at India – the fastest growing mobile phone market in the world

India has been the fastest growing mobile phone market in the world for quite some time now. There are already 250 million mobile phone users in India and the number gets increased by 6 million every month, thanks to new users. There are a few reasons behind this impressive growth.

1. Indian economy is on a roll and has had an impressive growth over the past few years. This has increased the purchasing power of the people significantly, especially that of the middle class people. As a result, the 30 million middle class people in India are the target customer segment for mobile companies now.

2. The price range of mobile phones is quite big. You can get low-end mobile phones in the $20 - $30 price range and at the same time you can get high-end mobile phones in the $600 - $800 price range. So, whether you belong to the super rich category, middle class, or lower middle class category, you can get a mobile phone which fits into your budget.

3. There are several major mobile operators in India and there is intense competition in the market. Almost all of them have slashed their call charges, text message charges, and offer a lot of value added services. What this means to the user is, not only can he get a handset at an affordable rate, but he can also afford to keep his phone charges within his budget every month. This has led to more and more people buying mobile phones.

Recent reports predict that India will have a whopping 500 million mobile users by 2010. This is the reason why mobile advertising is considered the next big thing in the Indian market.

Though mobile advertising by third party advertisers is yet to become popular, several mobile operators are already doing it successfully. Notable players like Bharti Airtel, BSNL, Tata Indicom, Reliance, and Vodafone regularly send text messages to their users regarding latest offers, new plans, and other issues.

That said, a few big players have already tried their hands on mobile advertising through third party advertisers and have had a good response. Recently, Hindustan Lever and Coca Cola launched mobile advertising campaigns promoting their products and have had good response rate so far. Since Indians are very active in using features like text message, MMS, and mobile internet, mobile advertisers have tons of choices to come up with personalized mobile advertising campaigns.

All in all, India will be a market to watch out for in the next few years as far as mobile advertising is concerned.

Categories: Cell Phone Advertising, All things mobile phones.

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Mobile ads have better recall rates than TV ads

How do you judge the impact of an advertisement? How do you find out if it was effective or not? In most cases, you go by brand recall - the ability of the customer to recall your brand after being shown the ad a few times. Until now, TV was considered the best medium to place ads as it had the highest brand recall rates. But mobile advertising has simply changed everything.

According to reports from analysts, mobile ads have higher recall rates than TV ads. At the recent Mobile Advertising Degree conference, the representatives of Verizon Wireless emphasized the same fact. They also added that despite being costlier, mobile ads are preferred over online ads because they have a phenomenal click through rate.

This is incredible. I’ll explain you why. First, TV has a huge reach. Second, ads in TV are so common that people no longer consider them a problem. Third, a TV screen is more fit for rich ads and watching an ad on a TV screen could be actually fun.

Now, let me compare this with mobile phones. First, a mobile phone, until now, is not considered a primary advertising medium. Second, ads in mobile are considered intrusive by many, so you can’t expect mobile advertisers to start sending ads to all and sundry. Third, watching an ad on a mobile screen, especially a low end mobile phone’s screen, is not exactly a great experience.

Going by what I’ve said above, anyone can say that the odds are stacked against mobile advertising. But guess what? Mobile ads have a phenomenal click through rate of 2% and more, which is way better than online ads.

Now, just imagine. If these kinds of results are possible right now, what could be the case in future when we have more high-end mobile phones, richer ad formats, improved technology, and most importantly, an open-minded society which is not averse to mobile ads? All I can say is one word – unimaginable.

Categories: Cell Phone Advertising.

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