IAB Releases Mobile Buyer’s Guide at Mobile Conference

The IAB (Interactive Advertising Bureau) released a first-of-its-kind Mobile Buyer’s Guide for mobile marketing agencies at the IAB Marketplace: Mobile Conference on Monday.

The guide explains the medium of mobile advertising in detail and offers valuable information for mobile marketers to help them create and run mobile marketing campaigns successfully. The guide contains everything you need to know about mobile advertising – key terms and definitions, an overview of the U.S. market, a look at the key demographics, tips to create and run mobile marketing campaigns, and a number of examples to illustrate the intricacies involved in such campaigns.

You can take a look at the guide here.

Personally, I think this is a great initiative by the IAB. Though a lot of experts predict a big future for mobile advertising, it is still in its nascent stage and an unbelievably huge number of people are completely unaware of its potential. This kind of a detailed guide will definitely help people understand the value of advertising on mobile phones.

Mobile Marketer, AdMob, Mindshare, ESPN, HBO, NBC Universal, Nestle, AIG, Deutsch, IKEA, CNN Digital, Verizon Wireless, Microsoft, Pandora, Citi, and Nokia Interactive Advertising were some of the names involved in the conference. The future of mobile marketing was discussed in detail and the general feeling among both business owners and marketers was that mobile marketing as a medium is poised for huge growth.

Some of the important points raised at the conference include

• The click through rates of mobile display ads are five to ten times more than the click through rates of banner ads on websites.

• Online advertising has reached a point where almost every other website is filled with ads and people have started ignoring a majority of those ads. Advertising on mobile phones, on the other hand, is still in its nascent stage and a lot of consumers show interest in it.

• Microsoft, which has been trying really hard to dominate both the online and the mobile space, has had very good success with mobile ads so far. Compared to their online ads, mobile ads have performed exceptionally well so far. As a result, Microsoft is planning to invest a lot of money in mobile advertising.

• At the time of recession, mobile phone advertising can help businesses irrespective of their size. Mobile advertising campaigns are easy to create, easy to manage, and give excellent results. The response rates of these campaigns are usually way higher than the response rates of traditional advertising methods.

• A lot of companies have yet to try mobile coupons, location based advertising, and other types of mobile marketing which give very good results. However, experts believe that the situation will change slowly as more and more people are becoming aware of the potential of advertising on mobile phones.

Based on what I have seen and heard so far, I am of the opinion that mobile advertising, as a medium, will break through to the mainstream in a few years from now. What do you guys think?

Categories: Cell Phone Advertising.

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Is Mobile Web the Future?

Ever since I started focusing my attention on mobile advertising and mobile communication, I have been hearing a lot about mobile web. A lot has been said about mobile web - How big it is going to be, how big an impact it will have on mobile phone advertising, what kind of revenue it can bring in, and how it can simply change the way we perceive our mobile phones. In short – it is considered the future.

The Pew Internet & American Life Project’s latest survey says that the mobile phone will be the primary connecting tool for people all over the world by 2020. If you notice carefully, the role of the mobile phone has changed enormously in the past few years. A decade back, mobile phones were meant strictly for calls and text messages. Now, we can take photos, shoot videos, surf the web, send and receive emails, listen to music, watch TV, transfer data, and more. The mobile phone has become much more than a tool for communication. This gets reflected on the sales figures as well.

Over three billion mobile phones have been sold by mobile companies around the world so far. Interestingly, it took them over two decades to reach the one billion mark. The two billion mark was reached in the next four years and the three million mark was reached in the next two years. Can you imagine? The time taken to sell one billion phones has diminished rapidly – from 20 years to 4 years to just under 2 years. By the end of 2008, there will be 4 billion mobile phones in the world. In other words, over 60% of the population will use the mobile phone as their primary connecting tool.

An important thing you should know is that mobile web is not as prevalent as most people think. Of these 4 billion mobile phones, only 15% are internet enabled. So, an overwhelming number of mobile users still use their phones for calls and text messages only. The reasons are not hard to find.

1. Mobile web is still out of reach for most people thanks to its cost. The data plans cost a lot and it makes people think twice before surfing the net on their phones.

2. Unless you have a smart phone, surfing the web on the mobile phone can be quite cumbersome. The user interface is not good enough and the speed is very low in most cases.

Experts predict that these things will change rapidly. Already, a lot of mobile carriers around the world have come up with flat rates for data plans which make them a lot more affordable. Also, a lot of people tend to buy smart phones these days as they have become a lot more affordable than what they used to be a few years back. Most importantly, with the advent of 3G (high speed internet), surfing the web on the mobile phone could become a lot easier.

The biggest challenge for both carriers and mobile advertisers is advertising. Advertising will be the primary means of revenue support for mobile web and it needs to be done carefully. While the mobile web could open a lot of avenues for mobile advertisers to reach the end users, they need to do it in such a way that people do not find it irritating or intrusive. How well they adapt to this new medium is something we will have to wait and see. But, the signs are clear. Mobile web is the next big thing. What do you think?

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

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Is MobiTV a Success Story in the Making?

While the current economic crisis has affected a lot of companies, some companies still continue to enjoy huge growth. MobiTV, the pioneer in mobile entertainment, has had a phenomenal growth so far and the bad economy does not seem to have affected it at all. The company recently released its growth and revenue details and I have to say I was pretty impressed to see the figures.

1. The company recently reached the 5 million subscriber mark which is a considerable achievement. Interestingly, it managed to add more than a million subscribers in just five months.

2. Its growth chart has been really impressive. It started offering live TV to mobile phones way back in 2003 – a time when mobile TV was considered a longshot. In 2005, it had just around 500,000 subscribers. Now, it has crossed the 5 million mark.

3. The annual revenue, which was around $20 million in 2005, has now more than tripled and the company expects a substantial profit in the first quarter of 2009.

4. Recently, it has added popular shows like Desperate Housewives and ABC News to its long list of products. Also, its live coverage of the presidential debates got a huge positive response from a record number of mobile users.

5. A few months back, MobiTV came up with an application called Mobi4Biz which provides customized business news packages to viewers. The package includes features like live TV and a special video on demand facility wherein customers can get content from CNBC, Bloomberg, Fox Business, and TheStreet.com. This application, as of now, is only available on Blackberry Bold. Depending on this app’s success, the company has plans to come up with a replica of this application next year for sports fans and children as well.

6. MobiTV has joined hands with more than 20 carrier networks including some big names like AT&T, Sprint, and Alltel and is available on more than 350 handsets. It offers a wide range of content including live TV, video on demand, digital music services, and premium programs. The revenue generated is split evenly between MobiTV, content providers, and mobile operators.

As you can see, MobiTV is a success story in every which way. However, its founders are wary of the fact that mobile TV is fast becoming hugely competitive and they constantly strive to keep their standards really high. Last year, we saw both AT&T and Verizon joining hands with Qualcomm MediaFlo to launch their own mobile TV service – named AT&T Mobile TV and Verizon VCast respectively. This apart, local TV stations are also planning to enter the mobile world by offering live TV to mobile phones through standard TV signals. So, it is not going to be a smooth ride for MobiTV for sure.

Categories: All things mobile phones, Mobile TV.

4 comments.

Hollywood goes mobile big time

Last year, I wrote a post about Hollywood’s reluctance to use the most powerful marketing medium available today – the mobile phone. I distinctly remember comparing Hollywood with the Indian film industry and discussing how the latter managed to use the mobile phone successfully to promote movies and all that. However, it’s been a year now and a lot of things have changed in Hollywood.

It all started with Iron Man. Paramount Pictures signed a deal with LG and promoted the movie big time through mobile marketing campaigns. Lots of content was offered via mobile phones and users were thrilled to have a glimpse of the movie right on their mobile phone way before its release. LG even went on to release a special Iron Man phone which is the costliest phone to date, valued at around $2000.

The success of Iron Man’s mobile marketing campaigns prompted other major studios to go down the same route as well. So, Warner Bros. went down the mobile lane for three of its films – Speed Racer, Get Smart, and The Dark Knight. Especially, the mobile marketing campaigns created for The Dark Knight were phenomenally successful, just like the movie.

The mobile marketing campaign for Dark Knight included an interactive treasure hunt which directed the users to 25 bakeries in different parts of the country. Once they reached the bakery mentioned in the treasure hunt, they were delivered a cake parcel which had a Nokia phone. The users were asked to use the phone for more clues and stuff like that. The campaign was a huge success and it ended up preparing the audience for a blockbuster of a movie.

Apart from this, movies like The Incredible Hulk, Indiana Jones, Wall – E, and Kung Fu Panda were also aggressively promoted through mobile marketing campaigns this year. All of them were very successful. So, finally, one would assume that Hollywood has come of age and has realized the potential of the mobile phone as a marketing medium after all.

With a lot of high end phones hitting the market and new technologies being introduced, mobile marketing campaigns will become even more innovative and offer a rich experience to users in the future. Ultimately, the purpose of such mobile marketing campaigns is to generate a lot of hype and interest for the movie and bring people to theaters. So far, it’s been bang on target. Don’t you think?

Categories: Cell Phone Advertising, All things mobile phones.

1 comment.

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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