Is 2008 Really The Year of Mobile?

If 2007 was video, 2008 is mobile—right? That’s the prediction, anyway. Actually, it has been a prediction for several years, but in the US (unlike the rest of the developed economies and many developing ones) it hasn’t happened yet. There are reasons to believe that momentum is building, including the FCC auction of wireless spectrum. The technology is mind-numbing but I found a blog post that has a number of interesting links including one to an interview with Reid Hunt, former chairman of the FCC, who explains some issues in an understandable manner—sort of.

What marketers are looking for is the availability of wireless broadband access that makes a wide variety of applications—including advertising—interesting to mobile users. There are many users in the US—over 255 million according to CITA, the industry trade association. comScore found that mobile broadband use increased by 154% from 2006 to 2007, but that’s on a very small base. According to their press release:

Though mobile broadband access is currently used by about 1 percent of the total U.S. Internet population it is poised for significant growth over the next few years,” said Serge Matta, senior vice president of comScore. “As consumers increasingly demand and depend on portable Internet access, the demand for mobile broadband should continue to increase.

Given the current slow download speeds use of the mobile Internet is heavily skewed toward search, with local listings via 411 and content via a variety of other search methods being the primary activities.


Consumers have become accustomed to free ad-supported search on the wired Internet. Will they accept advertising on the mobile Internet in order to receive free content? Media Post today reported on a study by Nielsen Mobile that suggests they are. Their analysis says that:

data subscribers are more willing to accept advertising in exchange lower costs or better content. In that vein, 32% said they're open to mobile advertising if it lowers their overall bill, while 13% will welcome it if it boosts the quality of their mobile media offerings. And 23% expect to see more mobile advertising in the future, up from 15% at the start of 2007.

A recent article in eMarketer (February 25, 2008) emphasized the continuing importance of search among mobile Internet users and indicated that free content was highly desirable. Free is always good, but a good summary article in WSJOnline points to the growth of the mobile gaming market and the willingness of consumers to pay for popular games.

Up to now most content, like games, has been downloadable. Mobile advertising services firm Medio reports that searches for downloadable content is being replaced by searches for content on the Internet itself. They report high click-through rates for ads delivered with content searches:

Medio calculates the average click through rate on search ads delivered in this way as high as 29%. For pay-per-call advertisements, call-through rates as high as 22% have been measured.

One implication of all this data is that increasing use of the mobile Internet offers an opportunity to deliver ads on mobile devices. While that statement is true, remember that the majority of people like me who have mobile Internet access don’t use it. Those who do use it are heavily skewed to the young and higher income demographics.

The widespread adoption of the wireless Internet in the US seems like an agonizingly slow process. However, it does appear to be picking up speed. For marketers with the right content or products that are targeted to the early adopters of the wireless Internet, this feels like the time to start experimenting with the channel.
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Will 2008 Be the Year of Mobile Marketing?

That’s in the US, and AdAge thinks it will be(free registration required). Mobile use, and consequently mobile marketing is already well-established in Europe and the Pacific Rim. Marketers need to watch developments there because they are several steps ahead of us. The site of the Mobile Marketing Association and their case studies are an efficient way to find out about some of the best campaigns outside the US.

Back here, why mobile? Why now? Why mobile is straightforward—wireless penetration is now substantial among both adults and teens. Why now is also pretty straightforward. Until now wireless bandwidth has been insufficient to support anything except calls and text messaging.

The FTC will auction wireless spectrum early next year that will greatly increase access to high-speed wireless connections in the US. The auction has received more attention than usual since Google announced its attention to participate. Their intentions are not entirely clear; they have until December 3 to detail them to the FTC. In the meantime, wireless users indicate they are willing to accept some types of ads on their mobile devices. Paul Martecchine gives some examples of good mobile marketing. Click here to view the video.

Mobile advertising can be a minefield for the unwary marketer. Advertising on small screens to people with small keyboards who may not welcome your communications is a whole new field of activity. Let’s begin with the fact that it requires what I call “Expanded Permission Marketing.” You have to ask not only “if” I may contact you, but also for “what” reason, “where” and “why.” This month Boston’s MBTA is conducting a beta test of wireless alerts for subway and train delays. Sounds like a good idea, right? Riders interviewed were concerned about how they would cost if there were actually a lot of alerts. Marketers beware!

The recommendations of one mobile marketer include using mobile to accomplish customer conversion and designing campaigns that are relevant to their lifestyles and interaction with your brand. In today’s lead article in iMedia Connection another mobile marketer warns that mobile must be an integral part of your strategy and gives more examples of successful campaigns.

Mobile marketing is just over the horizon—after a long wait—for US marketers. It’s not just the web on a wireless device. It’s a new channel with its own requirements for success and its own traps for marketers. It’s another train that is leaving the station and marketers should be considering what makes sense in terms of mobile initiatives.