Posts Tagged ‘Network Operators’

Mobile Advertising Set To Soar ? Yes, But What Is The Engine For Growth

Posted: November 18, 2009 in Digital Marketing, Industry News, Mobile Advertising, Mobile Internet, Online, Trade Associations
Tags: , , , , , , , , , , , ,
1
Below is a good analysis I came across on Gerson Lehrman Group website.  It was taken from an article published in the Guardian on the 9th November.
My opinion on this:
I do not entirely agree that focusing on the growth of the mobile web is wrong but I certainly do agree that just focusing on the growth of the mobile web is not the best approach in determining what is going to drive the growth of the mobile advertising industry.
I completely share the view point as commented below, quote ”will be driven by a deep understanding of the mobile consumer’s context not just by the mobile web”.   More understanding of the context of the consumer must be understood in order to produce concise relevant pieces of content that are specific to the needs demanded at any given time.  If we get this fundamental principle right then we will be on the right track and not follow the old footpath of online.  What do I mean by this?  I am not an online expert by all means but I am a heavy user of the web.  I see far too many ads that are so irrelevant to my needs.  This negative and at times somewhat quite annoying experience has now led to me conditioning myself to completely ignore ads on the fixed line web.  It is almost like they are not there.  We must not allow this to happen in mobile, especially if we are to maintain healthy CTRs and ROI for the advertisers.
For sure, we need much more growth in traffic, we need better developed ad-servers, we need better standardisation, we need richer devices, we need better understanding within the agencies and brand managers.  However, we must look beyond the all too easy areas where we can raise alarms bells.  Most importantly it comes down to the user experience.  If we get the user experience right, the advertisement will be embraced with open arms.  Showing the right message, at the right time, with relevant content in the preferred way will lead to the growth of the mobile advertising industry.   It is the people at the end of the device that will drive the growth.  Not the agencies, not the technology, not even the brands or the Googles.  It is me, you, your next door neighbour and every single one of us.  We don’t care if it is an iphone, Blackberry or Nokia.  We don’t care if it is a banner, text link or video pre-roll.  We buy into the experience. We prefer one experience over another experience.  If we get this right and place the message (in whatever format it comes) in this preferred environment then the results can be magic for everyone.
Article

Summary

Mobile advertising is set to soar but only if all mobile channels are used and the combination of enabling technology, analytics and advertiser mindset is focused on identifying the exact context of the consumer before ads are served.

Analyses are solely the work of the authors and have not been edited or endorsed by GLG.

Analysis

The article is taken from London based Guardian Newspaper in a special report, “Mobile Marketing” published on 9th November 2009. This was sponsored by The Internet Advisory Bureau (IAB), Velti and Orange. Other stories within the same report discussed the simplicity of texting, the appeal of mobile applications and the growing relevance of location awareness.

Even with all of the hype surrounding mobile advertising, it is starting from a relatively low base. The IAB reports 2008 UK spend on mobile advertising at just ₤28.6M, which itself represented a growth of 90% on the previous year. A 100% year-on-year growth is not too difficult to predict when 2009 figures are reported. Google’s recent acquisition of AdMob will certainly add to this rate of growth during 2010 as brands, advertisers and agencies leverage what is a huge endorsement of the mobile advertising industry.

That the project to determine an accurate method to measure mobile web traffic might somehow have a major impact on the industry is questionable. Whilst the GSMA working in collaboration with the UK’s big five operators to achieve this was the right way to go, the results are late. The GSMA are behind the curve on this after all, the lack of metrics has not stopped AdMob from serving billions of mobile ad impressions. Further more other specialist companies such as Bango for example, are already providing such tools.

But what about the rest of the advertising industry and their involvement in the mobile web?  For the brands, advertisers and agencies involved, focusing on the mobile web as the growth engine for mobile advertising is wrong. The tendency is still to treat the mobile web as a scaled down version of the internet. Mobile’s smaller screen and personal nature mean that it needs to be treated much more preciously that that. Ads served on the basis of what a consumer is browsing or what they are searching for will be hit-and-miss without tools that can accurately determine the context of the mobile consumers. Serving incorrectly targeted ads, even to consumers that have ‘opted-in’, will do much to damage brand values. The location, time of day and personal preferences of the consumer are key elements of that context and once it is available, there might be other more appropriate channels over which to advertise.  SMS, MMS, mobile video and mobile apps all support advertising.

Ultimately growth in mobile advertising will be rapid but it will come from being able to address consumers across any one of, or combination of all, the mobile channels available and will be driven by a deep understanding of the mobile consumer’s context not just by the mobile web.

URL Link to Gerson Lehrman Group website:

http://www.glgroup.com/News/Mobile-Advertising-Set-To-Soar—Yes-But-What-Is-The-Engine-For-Growth-44869.html

Why operators are failing to grasp the mobile advertising opportunity

Posted: November 16, 2009 in Digital Marketing, Industry News, Mobile Advertising, Mobile Internet, Trade Associations
Tags: , , , , ,
0

I found this article on Utalkmarketing by Oliver Newton, Head of Emerging Platforms, i-level.

Why operators are failing to grasp the mobile advertising opportunity

1999 was a defining year, we heard the song line “Hit me baby one more time” for the first time and it was also the year that the online ad industry really got to grips with itself starting the journey that led it to overtaking TV earlier this year.  Britney came to the public consciousness, and whilst she has no doubt led to billions of searches and page impressions she wasn’t the real reason.   The real reason was that it was the year that the ad industry introduced third party ad serving and a standardised set of creative formats. These factors brought simplicity of planning, reduced costs and reporting certainty as to how the new world was going to look.  Fast forward 10 years and Britney is still a searched for term, and we again demand third party serving and standardised formats. Only this time, it is for a smaller device, a device that 47 million people in the UK carry with them every single day. That device is of course your mobile phone.

 Without it mobile advertising will continue to be an underutilised medium for the masses, struggling to grow beyond 5% of total mobile revenue (IAB.)  So why don’t we just introduce third party ad serving then? Well the main reason is that the mobile operators won’t enable it. Operator side latency issues with ad servers mean that there is no guarantee that a third party ad will be shown to the end user rather than a blank space.  Ironically though, it is with the complete shift in mobile usage that is happening all around us (led by the iPhone and followed by android) that operators and their declining voice revenues most need to embrace new revenue streams. I’m not saying that overnight we will mobilise and suddenly the £30m of ad spend will rival online’s £1.75bn.  But if we were to jump ahead another 10 years, then yes, I think we will look back disbelievingly at a time when mobile adoption was almost 100% yet ad revenue was so stunted.  And we will probably be using our phone to swipe ourselves into the Britney comeback tour residency at the iPhone arena (formally the O2), but that is a different article.

Mobile is booming but operators are failing. The real winners are the new entrants to the market; iPhone, android and the developers behind the apps and services who are building the loyalty.

At the recent Westminster eForum ‘Future of Mobile’ event the constant theme was operators have lost control. One speaker went so far as to as to state that operators were simply a “dumb pipe for services”. 

 The operators are simply a necessary irrelevance (they connect my call and handle my billing), a commodity service with little user value to keep me tied in.  The ending of the iPhone exclusivity to O2 will prove just that. Orange and Vodaphone will both soon be selling it, (3 reckon they will have it at some stage next year), and we will see mass shifting of networks by subscribers.   Mobile internet usage has exploded, growing 28% to 11m people last year (comScore June ’09).

TV programs like the X-Factor with SMS voting mechanics are enabling the next generation who’ll experience direct advertising via mobile and the sheer number of sites being accessed mean that mobile advertising is ready to go, we just need to be able to measure and plan it as easily we can traditional online.

So please, let’s sort out the third party ad serving and give the planner buyers a standardised set of creative executions they can book. If we do, then the operators might actually start to make some money from mobile again.

URL Link:

http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=16060&Title=Why_operators_are_failing_to_grasp_the_mobile_advertising_opportunity