Mobile Ads Crawling Along

APRIL 3, 2007

Text from mobile marketers: 'U 1st.'

Mobile data use has doubled since 2003, but mobile marketing is still taking baby steps, according to a new report by Forrester Research.

The study claimed that only 13% of interactive marketers used text messaging to reach consumers in December 2006.

When asked what would convince them to spend marketing dollars on mobile-enabled sites, mobile text messages, branded microsites, podcasts, in-game ads, RSS and other emerging areas, most of the companies questioned in the Forrester study said "proof of use."

Just because a lot of people have mobile phones does not mean that marketers are ready to start sending ads to all of them, according to eMarketer Mobile Analyst John du Pre Gauntt.

"Mobile marketing/advertising draws passionate viewpoints, both pro and con," says Mr. Gauntt, "ranging from those who want it to jumpstart a sluggish mobile content and data market, to those who want to protect mobile from the marketing cacophony that infests every other media platform."

Response rates for marketers who do connect are compelling. A Dunkin' Donuts-sponsored mobile campaign in downtown Boston used SMS mobile coupons for new latte drinks. Consumers got coupons through a geographically targeted WAP campaign on various Boston mobile Web sites. The campaign generated a 4% click-through rate that converted into a 21% increase in store traffic from customers redeeming their coupons.

There are plenty of people ready to get such promotions, according to an ROI Research study commissioned by Bluestreak. Among those who used e-mail and one of five other emerging technologies, 88% of respondents used text messaging, second only to e-mail.

As much as Japan is trumpeted as the future of mobile data, and far ahead of the US in mobile marketing, the US and Canada still have a scale that makes up for the rudimentary state of North American mobile marketing.

And it's not as if marketers aren't talking about mobile marketing, according to a survey taken at the recent CTIA mobile industry association conference by LogicaCMG Telecoms.

Wayne Irwin of Logica summed up mobile marketer sentiment as revealed by the survey.

"The most important word here is 'relevant,'" said Mr. Irwin. "The mobile industry is approaching advertising very cautiously, and is watching consumer adoption very closely to ensure success. Done well, if it's relevant and targeted, mobile advertising can help drive down costs to the consumer while helping grow revenues for the mobile operator."