Our survey says: is mobile ready?
The aim was to learn more about the opinions on mobile advertising from those working in the internet advertising industry. The questions asked were:
1. If/when do you see mobile advertising becoming a mainstream medium?
2. For what reasons do you think mobile would be successful as an advertising
5. What are the main barriers to growth for mobile internet advertising?
6. What role should mobile phone operators play in mobile internet advertising?
1. If/when do you see mobile advertising becoming a mainstream medium?
As stated in the introduction, commentators seem very keen to pinpoint exactly when a medium or format will really take off. We asked our panel of experts if, and when they thought this would be the case for mobile internet advertising.
Our respondents were mixed in terms of when they thought mobile advertising would hit the mainstream with the majority opting for between 2008 – 2010 with one agency saying mobile advertising “Will seriously start in 2008 but [will not be]
mainstream before 2010”.
Advertisers in particular were cautious:
“I’m really undecided about mobile, it is clearly a huge opportunity to have brands in people’s pockets but the intrusive nature of pushing messages into a highly personal space is a major barrier. This is not helped by the fact that many of the networks seem to be establishing very traditional media models to their offering with a clear focus on selling space for push communications.”
“I believe that mobile ads will have to be permissioned or requested if they are ever to take off (due to the personal nature of a mobile phone). At present mobile technology doesn’t support an ad that is good enough that anyone would want to see.”
Chart showing when respondents felt mobile advertising would become a mainstream medium
Source: M:Metrics, Survey of mobile subscribers in UK
Data based on 3 month moving average for period ending 31st August 2007
Once or more in a month
% of 3G subscribers using their mobile phones to carry out the following...
2009 - 11
2. For what reasons do you think mobile would be successful as an advertising medium?
The majority of our panel listed similar reasons for the potential success of mobile advertising which can be summarised in order of popularity to the left.
Some were unsure about the future success of mobile advertising with one person stating “… it is too invasive”.
However, the majority of responses had very specific factors in mind for mobile’s success such as “The personal / high emotional connection between user and vehicle is both the advantage but also the challenge.” And “I take three things out the door in the morning - keys, wallet and phone.”
Quite dramatically, one respondent believed that mobile is “the future way the internet will be surfed”.
3. What is the one determining factor that would encourage you/advertisers to begin testing mobile advertising?
This question provoked a wide range of very specific answers, which have been collated under the headings to the left in no particular order. However, the predominant requirement was for more evidence in the success and effectiveness of the medium.
One individual felt consistency for measurability was the key to increase transparency for the medium: “As mentioned at the IAB’s Engage 2007 conference, there has to be consistent and comparable measurability for mobile. At present there are agreed standards for this but data owners need to open this up to independent testing and scrutiny to build trust and confidence in the medium.”
Again, echoing the need for more reassurance in the medium was the following response: “Information. Case studies and knowledge of the universe and what is possible within it. Still seems intrusive and irrelevant and for a small minority which I’m sure is not true but it’s tricky to understand how we make it work for clients who are cautious and believe their brand is ‘safer’ elsewhere where they know how to measure it.”
Our survey says:
is mobile ready?
• Personal and intimate – unique to the individual, creates a one-to-one marketing relationship
• Response – built in and easy to use response mechanisms (call, text, email, interact)
• Engagement and relevance
• Location - always with the user
• Immediate
• Targeted and timely – you can reach who you want, when you want, where you want
• Market research and case studies
• Guidelines - for publishers and advertisers
• Targeting
• Higher speeds (over 2MB)
• Nothing at this stage – too soon
Our survey says: is mobile ready?
4. Do you view mobile and internet advertising as being connected or entirely different mediums?
Over half of the people that answered thought mobile and internet advertising were connected, while 11 people felt it was either different or entirely different. 5 people felt they were both different and connected for the same reason.
One respondent firmly placed the emphasis on the consumer: “Absolutely connected.
Should be fully integrated and viewed from the consumer’s perspective. Should be integrated offline too.”
5. What are the main barriers to growth for mobile internet advertising?
Answers to this question were quite widespread and have been separated into the categories on the right. Most people only included one or two of these categories in their answer.
Like question 3, it was measurement, research, audience and reassurance in the medium that were seen as the main barriers by the majority of respondents. Exact parallels can be drawn with the state traditional internet advertising was in a few years ago. With more research and focus on the medium we are confident these barriers can be rectified.
6. What role should mobile phone operators play in mobile internet advertising?
Again, there were very specific answers to this question with a real mix of categories.
Some people felt operators should have no role in mobile internet advertising, some felt they should play a supportive role, while others felt they should take the lead.
• Data sharing – offering reporting data
• Education of the market
• Spam prevention
• Take the lead – play a pivotal role by forming a united front
• Standards
• Opt-out lists
• As media owners, not controllers of the channels
• None
• Knowledge – of what’s available and possible
• Size of audience advertising
• Belief in the medium
• Research
• Formats
• Current targeting capabilities
• Technology – usability, screen size
• Opt-in is sometimes required Chart showing how many respondents felt mobile internet and traditional internet advertising is connected
Both, 5
Different, 11 Connected, 20
From our perspective at the IAB, looking into the emerging mobile market is like stepping back in time about five years or so. Around 2002, marketers were becoming aware that their audiences were flocking online, but they were largely at a loss when it comes to reaching them. A lack of case studies and insight into specific audience behaviour, coupled with technical limitations of the medium were identified as major impediments to the growth of online. The ever-increasing market share of internet advertising is testament to the fact that these challenges were in no way insurmountable and the online spend continues to buoy that of the entire advertising industry.
Mobile, arguably, has even more potential for marketers than online did in its infancy. The mobile phone is the media equivalent to a swiss army knife for the twenty-first century: it can do everything besides get a stone from a horse’s hoof and even that function may appear on fifth generation handsets! The mobile phone is personal, consumers engage with it everyday, wherever they are – and nearly everyone has one. It is both practical and entertaining. In short it is the essential media device for the majority of consumers.
The above benefits may also make mobile advertising a slightly tougher needle to thread than online. As we have seen throughout this report, issues of getting consistency of formats across a number of operators, a lack of quality content currently on mobile internet and the crucial problem of not being intrusive, mean that despite mobile being very much on the agenda of marketers, there is still a degree of caution.