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Thursday, 17 January 2008
Growth in use of cell phone for brand promotion… 

One in ten mobile users in five Western European markets surveyed by the Mobile Marketing Association (MMA) is ‘highly interested’ in mobile marketing and another three in ten indicate moderate interest. According to the MMA this level of appeal translates into an overall growth opportunity for mobile marketing.

This is one of the findings of the MMA’s first ‘Mobile Attitude and Usage Study’ conducted with 1,535 participants in the UK, Germany, Italy, France and Spain with the aim of helping brands and marketers identify key market trends, mobile subscriber usage patterns, and success metrics for mobile marketing in Western Europe. The study was conducted by Synovate, a global market research firm, on behalf of the MMA.

Other takeaways from the study:
(1)Italian and Spanish consumers are most interested in mobile marketing. Over half of all users in Italy and Spain are at least moderately interested in mobile marketing and similar proportions express potential to opt-in.

(2)Two-way text messaging is the most important mobile feature across all age groups. The ability to send and receive SMS was at the top of the list for all age groups except teens, for whom it ranks second to camera functionality. Across the Western European markets surveyed, seven in ten have experience with text messaging, with the most text savvy consumers in Italy and Spain . Over half of all users surveyed use SMS at least weekly and 37% are daily users. Daily use is most common among 13 to 24 year olds.

(3)Western European consumers are poised for an increase in mobile marketing. 15% of all consumers surveyed have had some experience with mobile marketing. Mobile phones are almost universal and most phones are equipped to receive mobile messages. More than half use text messaging at least weekly, and 7 in 10 are familiar with the technology.

(4)Interactive voting, receiving ads and product/service information are the most common applications of mobile marketing. 18 to 34 year olds have the highest rate of participation in mobile marketing efforts. However, age is not strongly predictive; interest levels are similar across ages 13 to 54.

(5)Across all regions surveyed, mobile coupons, status alerts about accounts/purchases and special sales have greatest appeal. Over half the users have increased data usage to some extent in the past year versus slightly under half reporting an increase in voice usage.

“This study confirms that mobile users in Western Europe already appreciate mobile marketing and have a desire to opt in to receive relevant product and services,” according to Richard Saggers, MMA EMEA chairman and head of Mobile Advertising, Vodafone Global Services. “These results indicate Italy and Spain are significantly advanced users of mobile, and already have the most experience with mobile marketing and are therefore more likely to participate. At least 60% in all age categories surveyed have experience with text messaging, indicating a big opportunity for marketers.”

“Western Europe represents a significant opportunity for mobile marketers. One in three consumers surveyed indicated that their mobile phone is highly important to them and they are very dependent on it. With consumers acknowledging their mobile is always on them, brands need to begin integrating mobile into their marketing campaigns ASAP. Clearly, mobile is proving its potential value as a marketing tool,” adds Laura Marriott, president of the MMA.

A US$24bn opportunity?
Also running the rule over mobile marketing – globally in this case – is ABI Research. According to ABI’s recent report ‘Mobile Marketing and Advertising’ mobile marketing, which was born in countries such as Japan and South Korea , has now taken off in Western Europe and is beginning to grow in North America . As consumers move to flat-rate data plans and adopt mobile messaging, and as new platforms for advertising-supported mobile search, video and gaming content services arrive, mobile marketing is forecast to grow to over US$24bn worldwide in 2013, up from US$1.8bn in 2007.

“The clear difference in this market over the past twelve months has been the embrace of mobile marketing as an integral part of cross-media brand campaigns,” says ABI Research director Michael Wolf. “Mobile is no longer off-limits in the minds of advertisers, but is instead seen as a very personal way to reach consumers who can be incentivised through information services and compelling content, as well as through more directly relevant and targeted messaging.”

ABI reckons the market, however, is still very much a ‘wild west’ environment and will take time to develop. Hundreds of mobile marketing platform providers have sprung up, and larger players such as Google, Yahoo, and Nokia have made significant investments in this fast-changing market. Emerging players in the ad network and software space such as Admob, Enpocket/Nokia and Millennial Media are becoming important new players in a market that, in the judgment of ABI, is similar to the Internet advertising ‘gold rush’ of the late 1990s.

“In these early stages, many of the technology platform players are also doubling as the interactive agencies for large brands,” Wolf notes. “However, we see large ad agencies and their interactive divisions or partners increasingly working with key platform providers as roles become more defined.”

ABI Research found that while consumers are initially leery of mobile marketing, their perspective largely depends on whether they see some advantage for themselves. While 54% of its survey respondents indicated they were totally opposed to mobile marketing messages, 70% of those same respondents said that an incentive such as a ringtone or a free song might make them receptive to mobile marketing.
John Williamson
 
 
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