Interactive Seven 2009 Supplement - Marketing Week
Interactive Seven 2009 Supplement - Marketing Week
Interactive Seven 2009 Supplement - Marketing Week
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MWIB_260209_p033 19/2/09 18:56 Page 33<br />
INTERACTIVE MOBILE<br />
Mobile’s momentum<br />
Although it made its presence felt, mobile marketing failed to really take<br />
off last year. But with new technology and a more favourable reputation,<br />
<strong>2009</strong> could see it fulfill its promise. By Camille Alarcon<br />
While the take up of mobile marketing<br />
among advertisers continues<br />
its steady rise, 2008 will hardly<br />
go down with many as a big year<br />
for mobile. A lot of clients and agencies have<br />
continued to take a cautious approach to this<br />
relatively young marketing medium. Despite<br />
this, observers are positive that it will continue<br />
to grow ad revenue share, in spite of the<br />
recession. In fact, the launch of sexy new handsets<br />
and mobile platforms, such as the iPhone<br />
and Google Android, means agencies and their<br />
clients are still spending money on looking at<br />
ways of winning the attention of mobile phone<br />
users.<br />
According to the Mobile <strong>Marketing</strong> Association’s<br />
2008 Attitude and Usage Study – Western<br />
Europe, compiled by Synovate, mobile<br />
phone penetration is extremely high in western<br />
European markets, with over 90% of the<br />
respondents surveyed being mobile phone<br />
users, and the average number of handsets in<br />
a mobile household totalling three.<br />
This means great growth opportunities<br />
for marketers, particularly those looking to<br />
target people aged 16 to 24. The recently<br />
launched ad-funded mobile service aimed at<br />
teens, Blyk, is a testament to this. Since it<br />
entered the market in September 2007, it has<br />
run campaigns for clients including Boots,<br />
EMI, L’Oréal and NatWest. It signals just how<br />
seriously big brands are taking mobile as a<br />
marketing platform.<br />
Overcoming challenges<br />
A Frost & Sullivan report estimates that revenue<br />
for the mobile advertising market should<br />
reach €2.18bn (£1.96bn) by 2012. But this will<br />
only be achievable if the market is able to overcome<br />
three key challenges: technological features,<br />
consumer motivation and a change in<br />
attitude within the advertising industry.<br />
The technological aspect refers to high<br />
quality features that will enhance the user<br />
experience, such as an easy-to-use interface<br />
and fast connectivity. Consumer motivation<br />
refers to how a mobile marketing initiative<br />
Blyk: The ad-funded mobile service provider<br />
for 16 to 24 year olds, working with L’Oréal<br />
can add value to the mobile experience, rather<br />
than intrude on it. The Frost & Sullivan report<br />
also says it is essential that the advertising<br />
industry quashes any reservations it may have<br />
towards mobile as a marketing tool and develops<br />
clear metrics of usage which can show<br />
how mobile marketing can fit within a wider,<br />
integrated campaign.<br />
Saverio Romeo, author of the report and<br />
Frost & Sullivan industry analyst for mobile<br />
and wireless communications, says if such<br />
“Location is closely tied to<br />
the growth of social<br />
networking... [bringing]<br />
together not just the<br />
location of an individual,<br />
but also of their friends and<br />
favourite places”<br />
Christian Louca, YOC Group<br />
issues are not fully resolved, mobile marketing<br />
is only likely to grow to €1.16bn (£1.04bn)<br />
by 2012.<br />
While SMS continues to be the most commonly<br />
used application on the mobile platform,<br />
agencies are beginning to develop many<br />
other initiatives, with social networking,<br />
gaming downloads and mobile internet enjoying<br />
growth.<br />
Christian Louca, UK country manager and<br />
head of publishers for mobile marketing<br />
agency YOC Group, predicts that the use of<br />
SMS as a marketing tool will go from being<br />
“bland”, to providing richer interactive marketing<br />
this year. An example would be driving<br />
consumers to the mobile internet<br />
promotional sites and portals.<br />
Location, location, location<br />
He also believes that location will be one of<br />
the biggest areas of growth in <strong>2009</strong>, because<br />
making advertising and services “location<br />
aware” will open up massive possibilities to<br />
individually tailor offers to consumers.<br />
“For example, brands can directly contact<br />
a customer as they walk past a particular shop<br />
or location, or send a discount voucher that’s<br />
tied to a specific store,” Louca says. “Location<br />
is also closely tied to the growth of social networking,<br />
so I expect to see a lot of interesting<br />
ideas which bring together not just the location<br />
of an individual, but also of their friends and<br />
favourite places.”<br />
Rapp group’s digital strategy director, Russell<br />
Marsh, adds that Java applications have<br />
been available on the majority of handsets for<br />
a few years, but they have never had an interface<br />
like iTunes to make selection and installation<br />
so simple. “These branded utilities have<br />
allowed customers to further customise what<br />
they want out of their phones, making them<br />
even more personalised and based around<br />
their personal needs and desires,” he notes.<br />
Marsh says Java-based widgets are also<br />
likely to encourage the use of m-commerce.<br />
These applications on the phone can allow<br />
encrypted data to be sent from a handset <br />
<strong>Marketing</strong> <strong>Week</strong> <strong>Interactive</strong> 33