Mobile advertising finds its meaning
Mobile advertising has so far been a disappointment - to advertisers, advertising agencies, cellular carriers and especially industry pundits who have been touting it as 'the next big thing' for the last five years.
But in a global advertising environment characterized by double-digit decreases, mobile advertising may be one of the few growth areas in 2009. Its market share may more than double, albeit from a small base, and there are likely to be thousands of large advertising campaigns, costing over $2 billion79.
Its lack of impact, compared with traditional and online advertising, has been deeply frustrating for the industry, and with reason. The mobile phone is one of the most ubiquitous devices in the world. Only radio and television could claim to have equivalent reach.
But unlike radio or television, mobile phones boast several key attributes. They are personal devices. They offer two-way communications. The mobile network typically knows where its subscribers are.
Yet, despite its initial promise, at the end of 2008, the potential of mobile advertising remained unfulfilled, with global spending at only $1 billion80, or 0.4 percent of global advertising revenues81.
Mobile advertising campaigns so far have fallen mostly within the experimentation category. And unproven and possibly unprofitable 'experiments' seem unlikely to attract significant investment in 2009, in an advertising industry that is expecting to be hard hit by the downturn.
But in 2009, the need and therefore the potential for mobile as an advertising medium is likely to be stronger than ever, and some of the most powerful advertising campaigns are likely to be via mobile media. There may be only a few, but in the long term, they could have significant impact.
Several developments enable mobile advertising. First, the technology is now more able than ever before to carry advertising. Second, mobile phones are ubiquitous. And third, and most important, the understanding of what mobile can and cannot do to deliver advertising will be at its most mature.
The essence of advertising is to get a message across. The message can be rich, as with film and television, and as online aspires to be. But a message does not necessarily have to be based on HD video to be effective. A few words may have the required impact.
In 2009 a growing number of campaigns will use the minimalism of mobile - compared with other media - to powerful effect. These initiatives will take direction from the use of the text message82, mobile's simplest form of information, as a rudimentary but potentially highly effective tool in one of 2008's largest campaigns - the US Presidential Election83.
Minimalism is likely to be a prerequisite in mobile advertisements. But the smart phone's growing market share, as well as the improving specification of standard phones, and the rising ability of mobile browsers should allow advertisers to run mobile campaigns that boast better graphics, use of presence information and, for the smartest of the smart phones, video.
Bottom line
The mobile phone, given its status as the most ubiquitous two-way personal communications device, has tremendous potential. But its real capability has been compromised by a tendency to try to jam 'round peg' PC online campaigns into 'square hole' mobile phone screens, processors, operating systems and lower connection speeds.
The potential of mobile as an advertising medium can only be realized once the industry becomes aware of its strengths and accepts its limitations. Mobile advertising cannot succeed, for example, if it requires users to download large video files that may cost a couple of dollars in data usage charges. Nor can it work if there is little to offer the consumer, such as money off vouchers that require users to know how to switch on Bluetooth functionality.
Advertisers should work harder to create campaigns that are targeted for mobile and work within its limitations, typically as part of an integrated campaign that also uses broadcast and online.
Carriers should help out - successful advertisement campaigns will drive traffic, enhance the mobile experience and potentially even allow carriers to participate in revenue sharing. Carriers should be also aware of the need for standardized platforms and operating system support - one of the current barriers to rich mobile campaigns is the need to customize the content for each carrier.
And if carriers may need to help more, handset manufacturers need to double their efforts. The current profusion of screen resolutions, CPUs, operating systems, and so on requires advertisers to spend more time translating for the cellular 'tower of Babel' than they do in producing the advertisement in the first place. Mobile advertising will really take off when advertisements can be published to the entire mobile community with a single click.
But campaigns based on mobile's lowest common denominator, text messaging, can be highly effective even now. Campaigns do not require an implicit marketing message: the provision of timely information can be as effective an advertisement for a company as a good experience with a call center, or a memorable meal at a restaurant.
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