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Messaging in Mobile Advertising and Marketing

by Nancy Broden

A couple of recent high-profile sales in the online advertising space - Third Screen Media to AOL’s Advertising.com and aQuantive to Microsoft for an eye-popping $6 billion - brings to mind the role of messaging in mobile advertising and marketing.

Mobile advertising and marketing has been on the rise as cell phone penetration heads toward (or tops) 100% in countries around the world. With more mobile phones in the hands of the lucrative teen and young adult market, it is natural that brands leverage the mobile channel as a way to reach reach prospective customers and foster loyalty among existing customers.

Campaigns with a mobile messaging component were among the earliest tactics employed. Although there is a rush to develop more sophisticated methods using WAP-based content or search, messaging remains the most effective mobile advertising and marketing tactic. At the Mobile User Experience conference in London earlier this month, Antti Ohrling, co-founder of the advertising-funded mobile virtual network operator Blyk, provided reasons why will continue to be the case.

Among 16- to 24-year olds the three most popular mobile services are:

  • Voice
  • Text
  • Alarm Clock

73% do not use expensive mobile data services. Thus tying a mobile advertising campaign to WAP-based content that the consumer must access via the browser on their device is not a sound decision.

The key to success in mobile advertising and marketing is timeliness and relevance. Ohrling’s research suggests that 71% of mobile phone customers would appreciate receiving advertising messages targeted to their interests. This audience views targeted communication as offering them an opportunity, rather than as an interruption or a nuisance.

Leveraging the opportunities presented by the mobile context itself promises the best results: “Mobile devices are, above all, about person-to-person communication, so smart marketers can design campaigns that take advantage of that capability and feature a peer-to-peer messaging aspect”, reports the marketing research firm MarketingSherpa. For example, campaigns that feature free home screen wallpapers will encourage the dissemination of branded material from person to person via messaging services.

While mobile advertising and marketing is likely to grow more sophisticated over the next few years, until text and multimedia messaging is supplanted by something better, it will remain a key ingredient in successful campaigns.

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6 Comments »

  JT wrote @ May 25th, 2007 at 4:04 pm

Good article Nancy. I agree with your assessment. Its a challenge to make economic sense of Blyk’s model. A tremendous amount of advertising revenue must be generated to support the costs of the network and provide a return to the shareholders. Consumer’s are easily put off by advertising that becomes too intrusive so a balance must be acheived between maximizing impressions and keeping the consumer loyal to the brand.

Its going to be very interesting to see how things work out.

JT

  Digger wrote @ May 27th, 2007 at 9:53 pm

Some interesting discussion on this topic at: http://www.linkedin.com/answers/technology/wireless/TCH_WIR/49120-1145339

  Michael Stone wrote @ May 28th, 2007 at 2:26 am

My view is that anyone who can’t afford the (affordable) capped plans in the market today are probably not the key target market for many advertisers…

I think the more interesting idea is existing operators better monetising their subscriber bases as per Nancy’s article. Viral marketing via MMS is an strategy given the richness of the medium combined with immediacy of mobile messaging.

Michael Stone

  Bindo wrote @ May 29th, 2007 at 8:37 am

Hey there is this great website for Mobile advertising/marketing, they do a free newsletter that you can sign up to on the website: http://www.mobiadnews.com

[...] Weiss’ findings bode well for voice- and advertising-based offerings coming to market, such as the advertising-funded mobile virtual network operator Blyk, whose business proposition I wrote about back in May. [...]

  TechCrunch UK » Blog Archive » Blyk comes out of the dark wrote @ September 13th, 2007 at 7:11 pm

[...] the Mobile User Experience conference in London earlier this month, Antti Ohrling, co-founder, said that messaging, not WAP or data services, remains the most effective mobile advertising and [...]

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