Mobile Brand Advertising Readies for Takeoff, Direct Already on Its Way

Many of the pieces are in place for mobile brand advertising to start scaling up, according to eMarketer’s “Mobile Brand Advertising” report, which projects that worldwide mobile brand advertising will increase to $3.6 billion in 2011 - nearly 30 times more than the mere $124 million in 2006.

Also according to eMarketer’s forecast:

• During the forecast period, mobile direct marketing is projected to grow from $1.5 billion in 2006 to $16 billion.
• In 2007, mobile brand marketing spend - $277 million - is expected to constitute just 10% of total mobile ad spending, which is projected to reach nearly $2.8 billion.
• By the end of the forecast period, mobile brand ad spend - nearly $3.6 billion - is expected to make up 22% of total mobile ad spend.
• Total mobile ad spending is projected to grow from nearly $2.8 billion in 2007 to nearly $5.0 billion in 2008 (79% year-over-year [YOY] growth) and $7.5 billion in 2009 (51% YOY growth).

Among the factors driving the growth is that mobile text messaging has become more or less a mass-market service worldwide; mobile music is also climbing the rungs of the mass-market ladder; and, most important, there are mobile-centric tribes of users in both advanced and developing economies, where the mobile screen is the first place where marketers can reach them, according to eMarketer.

However, mobile marketing campaigns need to be relevant and hiccup-free so that they don’t turn off consumers sensitive to ad exposure, according to John du Pre Gauntt, senior analyst at eMarketer.

Nearly two-thirds of respondents to a Maritz Research survey of Gen Y consumers said they were unlikely or definitely unlikely to subscribe to text retail offers sent to their handsets. Moreover, a full 84% of mobile users in an Ingenio survey conducted by Harris Interactive said text messages sent by companies would be unacceptable:

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Survey: Growing Opportunities for Mobile Advertising

More than four out of five U.S. adults (85%) own a mobile phone, compared with seven in ten (71%) who have a landline or home phone - and nearly two-thirds of mobile phone owners (63%) agreed that their phone is very personal to them, according to a poll conducted by Harris Interactive and commissioned by Ingenio.

Less than a third of mobile phone owners (30%) recall seeing or hearing an advertisement on their mobile phone in the past year, suggesting that a dominant advertising model to reach the growing demographic of mobile phone users has yet to emerge, Ingenio said.

Ad-related findings:

• Regarding the kind of mobile ads they find acceptable, respondents were most favorably disposed toward sponsored text links that appear as a result of internet searches (26%).
• Close behind were audio ads that play instead of ringing when waiting for someone to answer a call (21%), and a text message from a company (20%).
• Among those who have ever called 411 from their mobile phones, commercial (74%) and restaurant (72%) phone and address listings are the most frequently sought-after types of information.
• When asked about their current and anticipated cell phone use, about half of mobile phone owners (49%) said they are already using their phones for more than just calls, including sending and receiving text messages (36%), and taking, sending and receiving photos (24%).

“An inherent difference between the mobile and PC environments is that mobile searchers want to find information and then immediately act on it,” said Marc Barach, chief marketing officer, Ingenio. “The mobile environment lets advertisers reach consumers at the point of decision, and an advertising model that connects the two when intent is at its highest will do for mobile what clicks did for the web.”

Demographics-related findings:

• Younger adults are significantly more likely than their older counterparts to own a mobile phone than a landline: among those 18-34, 89% own a cell phone or smart phone, but only 57% have a landline.
• Younger mobile phone owners are considerably more likely to use their phones for more than just phone calls (74% of adults ages 18-34 versus 20% of those ages 55 and up)
• Men are more likely than women to use their phones to check email, access the internet for something other than search and download, and find information using a search engine.
• More than half of mobile phone owners (57%) anticipate using their phones for more than just making and receiving phone calls over the next three years
• Younger mobile phone owners more likely than their older counterparts (75% of those ages 18-34 versus 33% of those ages 55 and up) to say so.

According to the study, cell phone users are demonstrating unique attitudes and behaviors toward their cell phones, including a feeling of a personal connection with their cell phones; adoption of mobile services outside of calling; a predilection for text vs. email; a movement from landlines to cell phones; and openness to mobile advertising. Additional findings from the study: In addition to 63% of mobile phone users who agree that their phones are very personal to them, 44% also say their phones have strengthened their personal relationships. Women are more likely than men to say so - 66% vs. 60% Younger mobile phone owners are especially likely to feel that their phones have strengthened their personal relationships - 60% of those 18-34 vs. 37% of those ages 35+. Women are more likely than men to admit that when their mobile phone rings they drop everything to answer it - 39% vs. 33% men. Men, on the other hand, are more likely than women to agree that their phones have made them too accessible - 55% vs. 50%. Women are more likely than men to now use their phones to send or receive text messages (38% vs. 33%), and to take/send/receive photos (27% vs. 21%). Men are more likely than women to use their phones to check email (12% vs. 7%), access the Internet for something other than search and download (11% vs. 5%), and find information using an internet search engine (9% vs. 6%). About the study: This survey was conducted online within the United States by Harris Interactive on behalf of Ingenio, Inc. between March 29 and April 2, 2007 among 4,123 adults (aged 18 and over). Figures for region, age within gender, education, household income and race/ethnicity were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

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