Cellphone advertising in 2007 - A review

2007 is almost over and we’re eagerly expecting the arrival of the New Year. So, it’s that time of the year when people look back at their silly mistakes, achievements (if any), resolutions they made, and all other useless stuff. I’m not gonna do any of them; don’t worry. Instead, I’m gonna look back at the cellphone advertising and marketing industry and share some of my thoughts with you.

The single biggest event that changed the course of the cellphone advertising and marketing industry was the launch of the Apple iPhone. It was more than just a phone and the truckload of features made it a favorite with users instantly. At a time when cellphone advertisers were thinking about advertising via text messaging and banner ads, the Wi-Fi enabled iPhone offered them a hell lot of options. Interestingly, iPhone is not the only phone in the market with such features. Blackberry, AT & T and T-Mobile Network phones, and a few models from Nokia also have Wi-Fi facility and other features that the iPhone boasts of. But the most important difference was in the way Apple marketed their product. The enormous hype created before the launch of iPhone was simply never heard of in the market before and thankfully, it lived up to the hype.

The second biggest event, in fact the one that almost outshone Apple iPhone was the launch of Google Android. Google had been timing the market to take the plunge for a long time and speculations were running wild. A lot of market experts and market watchers (including yours truly) had predicted that Google would come up with Google Phone, which could be the fitting answer for the iPhone. But when Google announced that it will not develop its own phone, at least in the near future, they had their foot firmly in their mouth. But Google Android proved out to be a bigger success, considering the buzz it created in the market. With its Open Handset Alliance with 30 plus big names, Google simply stole the show from the iPhone. I’ve already explained why Google Android could lead to the undoing of iPhone and it remains to be seen whether I’ll be proven wrong in 2008.

2007 could possibly go down as the most eventful year as far as cellphone advertising industry is concerned, as the year saw some major names like Microsoft, New York Times, Coca Cola, Facebook, MySpace, Fox Interactive Media, and of course Google enter the market in full fledge. Most of the industry experts and research firms predicted a huge growth for cellphone marketing and advertising industry whose revenue was estimated at around $1 billion. Also, it is said that in just about five years, this revenue could increase tenfold.

Also, 2007 was the year of acquisitions. Big players in the market realized the enormous potential of cellphone advertising and marketing and started acquiring cellphone advertising firms. We saw Nokia acquire Enpocket, AOL acquire Third Screen Media, Microsoft acquire ScreenTonic, Publicis acquire Phonevalley, and so on. This definitely marked the arrival of cellphone marketing and advertising in a big way.

Though 2007 is undoubtedly the biggest year for cellphone advertising, there are still some unconquered territories within the industry. First of all, mobile internet facility should be within the reach of the majority of consumers for advertisers and marketers to be able to reach them fully. A lot of companies have realized the potential of mobile websites and for consumers to be able to make the most of it, the price of high-end mobile phones should be brought down. Already, Apple has started the process with a hefty price cut on its iPhone and we can expect other handset makers to follow suit, hopefully. Also, thanks to mobile advertisers, the price of premium services has come down drastically and in a lot of cases, these services are available free of cost, thanks to ad-funded services. With some operators even offering free talk time to customers who opt in for cellphone advertising, I really think cellphone advertising has hit the target big-time. Its continued success though, lies only in the hands of operators, advertisers, and handset makers for they are in a position to lead the industry in the right direction next year.

Categories: Cell Phone Advertising.

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Could Google Android come up with ad-funded “free mobile phones”?

Imagine you have a mobile phone

1. that can replace your PC

2. that costs you absolutely nothing, not even connection charges

3. that takes mobile surfing, mobile music, mobile video, and mobile connectivity to a whole new level

Does it sound like a scene from a sci-fi movie? You bet it’s not. I’m talking about the possibility of a Google Android based phone. Surprised? Don’t be. This isn’t some kind of a prediction for the New Year. This is what John Bruggeman, Chief Marketing Officer of Wind River Systems, a leading Linux software provider, has stated in his latest interview in technewsworld.com.

He says, “If I can get a lot of what I get through the PC free or low-cost through one of these mobile devices, the only real difference is the size of the monitor, keyboard and mouse. Isn’t there an opportunity in two, three, or four years that I might say, “I don’t need that PC and all that complexity, cost and so forth. I might just use my mobile device for almost all of the things I do online?“

This metamorphosis is happening right before our eyes now. I mean, gone are the days when mobile phone was meant for communication alone. Take a look around you – Nokia N95, Apple iPhone, Windows Mobile devices, and so many other phones which offer almost everything that a PC offers. Soon there will be a stage where people will prefer their mobile phone to a PC, as the mobile is always with them and they don’t have to go searching for a PC every time they go out somewhere.

He also adds, “There might be revenue that’s derived through connectivity, but increasingly we’re seeing the big money around the monetization of advertising attached to search, advertising attached to specific content, and advertising attached increasingly to mobile location and presence. I don’t think that the extreme is that improbable, that the actual connection price would go down to zero. I could have a mobile phone and pay a $0 monthly fee. The ad revenue is where the real dollars are here, as well as all the location-based value that you can do.”

This is where I see the possibility of mobile advertising turning the mobile phone industry on its head. Earlier, this thought would have been dismissed out as an improbability as there is no way you could have a “free” phone without having someone to bear the charges. Mobile advertisers are ready to bear the charges now and the idea of a “free phone” seems a possibility that can happen sooner than later.

Technically, an ad-funded phone is a win-win proposition for both the advertiser, handset maker/carrier, and the consumer. The advertiser gets what he wants – his product/service reaches his target audience, that too on a one-to-one marketing basis. The handset maker/carrier makes money from the advertiser, so he gets what he wants. And finally, the consumer is more than satisfied with what he gets – no charges for premium services or connectivity, all at the cost of getting ads on his mobile phone.

I personally think this would be the best possible way for mobile industry to go forward. It’s high time the anti-mobile phone advertising group gave it some thought. What do you say?

Categories: Google.

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Cell phone advertisers target premium services

If you are paying for using premium services in your cell phone, you could very well be a “target customer” for mobile phone advertisers. According to a statistics report by In-Stat, over 40% of cell phone users pay to use services like text messaging, directory assistance, picture messaging, and ring tones. More importantly, one third of the people who took the survey responded that they hesitate to use premium services like ring tones, directory assistance, and MMS due to their high rates. 

This has rung a bell for cell phone advertisers as they are preparing to target this large segment of people that does not use premium services due to high costs. Their plan is very simple. They will cut down the costs of premium services for customers who opt in for targeted, location based advertisements in their mobile phone. This could very well lure a lot of people and would prove beneficial for both subscribers and advertisers. I am a fairly regular user of these premium services (mostly ring tones) and I pay a ton of money every month. Mobile advertisers; are you listening?

Categories: Cell Phone Advertising.

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