AS THE size of mobile handsets has shrunk, so have mobile network operators' revenues from voice services, unfortunately. According to Informa's Mobile Advertising: Cutting Through the Hype report in 2007, voice services accounted for 81.7 per cent of operators' total mobile service revenues worldwide. However, this figure is estimated to decline to 74.1 per cent by 2012. During the same timeframe, global annual data revenues will increase from US$135.4 billion to US$239.6 billion. This naturally prompts mobile operators to start looking into mobile content and advertising for new streams of income.
At the same time, businesses that aggressively compete to get noticed are looking for new and innovative ways to market their products and services on alternative platforms. A unique opportunity is opening up for mobile operators, given the phenomenal growth in mobile phone ownership and increased reliance of individuals on their mobile device.
Aside from advertising in traditional and digital media, global brands and local businesses are now allocating budgets to advertise on mobile handsets to win the customer's preference or to encourage greater consumption of their products and services. In two recently published reports by Juniper Research on mobile search and discovery and mobile advertising, the analyst firm estimated that total mobile adspend will increase from US$1.3 billion in 2008 to more than US$7.6 billion in 2013. Interestingly, the findings predicted the highest mobile adspend will be in the Far East and China regions.
A separate study by Frost & Sullivan reported that mobile advertising across Asia-Pacific countries collected revenues of US$807.8 million last year. The research firm expects this to reach a market size of more than US$4 billion by the end of 2012.
In Singapore, the Infocomm Development Authority (IDA) places mobile penetration at 122.5 per cent in 2007, which represents huge potential for mobile advertising. Frost further estimated that Singapore's mobile phone advertising revenue will reach US$3.8 million, or 64 per cent growth from last year. Citing a mix of a dynamic advertising industry, strong mobile data drive and aggressive technology adoption, Frost predicts that Singapore's ratio of mobile advertising to total advertising expenditure will be higher than the Asia-Pacific average by 2012.
Locally, advertising on the mobile phone through short message service (SMS) advertising is the most common mobile connection utilised currently for brand-building efforts. However, certain factors like length of message, permission- based nature and cost implications, co-branding and contained space are areas of concern for mobile advertisers. Experts are stating that advertising through the SMS channel has failed predominantly due to the annoyance of receiving unsolicited content.
However, there is a mobile advertising channel that is underutilised yet promising: the idle screen. Industry news citing Juniper research reported that opportunities across different mobile applications and delivery channels such as multimedia message service (MMS) and idle-screen advertising are set to attract a combined annual adspend of more than US$1 billion within five years.
Idle-screen marketing transforms the mobile phone into an entertaining, informative, personalised and location-sensitive media channel, debunking the misconception that receiving mobile advertising will always be annoying and intrusive. Driven by interactive and informative content, the idle-screen content can include news, sports, lifestyle, entertainment, business, advertising and operator updates. The advantage over other mobile media channels is a compelling, non-intrusive and interactive user experience.
The success of proximity advertising with idle-screen advertising can be seen in a campaign in Thailand where a leading global motor company was looking to bring potential customers to the nearest dealer using an interactive mobile marketing campaign. The motor company wanted to enhance its rapidly expanding presence in Thailand, with an exceptional, regional advertising campaign. The challenge was to launch a location-based promotion, designed to draw potential customers to the local dealer, according to their proximity.
The campaign brought content teasers directly to the user's idle screen allowing response with a simple click. It provided the brand with the opportunity to target mobile users within specific geographical areas. Thus, a mass-reach marketing medium was able to narrowcast according to the subscribers' location, ensuring that consumers gained relevant access information to their specific local dealer.
The motor company then decided to entice potential customers into its showrooms. They invited customers to 'come and meet' the latest motorbike models at their local dealer and receive a gift by showing an electronic voucher. The campaign included two invitation messages a day and lasted two days.
The motor company's targeted, location-based, mobile advertising campaign drew great response. With over 4,500 clicks providing an average of over 1,000 leads per message, the brand gathered data about their potential customers and, in turn, provided a gift. The interaction between the motorbike manufacturer and their potential customers had been established, using an interactive personal medium.
There are similar success stories, and they will undoubtedly multiply as businesses catch on to the enormous potential of the idle screen.
Consumers continue to use their handsets as a preferred mode of communications. Voice calls and SMS will remain the key use for mobile handsets. But as operators continue to look for revenue-generating services and brands look for new and innovative ways to communicate with hard-to-reach consumers, the use of mobile marketing will grow exponentially. And more businesses will catch on to the potential of the idle screen to open opportunities for advertisers to build their brands and unlock a new revenue source for mobile operators and content providers.
It's a win-win situation for users too, because the idle screen can serve as a great media channel to deliver personalised and engaging content for mobile users, at their own convenience.
The writer is general manager for Asia-Pacific, Celltick.
This story was first published in The Business Times on 11 December 2008.
