Produced by the IDM

Mobile comes of age as mainstream media channel

Robert Thurner, Commercial Director, Incentivated

Mobile is unique.  Intimate, immediate and accessible 24/7, the mobile channel is intensely private. Used with respect for privacy, mobile is a powerful and cost effective communication channel.

Whether you need to raise awareness of your promotion via SMS, develop interaction via MMS, sustain interest with mobile internet or prompt purchase via mobile barcode, mobile is versatile and delivers transparent ROI reporting.

The dynamics are compelling. Mobile network operators are under pressure to generate new revenue streams to monetise the massive investments in 3G licences. Mobile phone manufacturers are producing ever more sophisticated handsets to secure market share. Consumers demand instant access to friends, family, news and entertainment, whenever they desire, wherever they are. And advertisers seek intimate one-to-one marketing encounters with their customers. The stars are aligned for the mobile marketing sector to play a leading role in today’s complex communications mix. 

Mobile: the ultimate “me, here and now” medium

There are more phones than people in the UK, and two billion users globally (Source: Informa). The mobile ranks alongside wallet and keys as an essential companion for us as we work, shop, socialise and travel. 

Text messaging (SMS) has emerged as the pre-eminent non-verbal communication channel. Among 15-24s, 48% prefer SMS to any other form of written communication, compared with 28% who favour email, and 20% who opt for Internet Instant Messaging (Source: IPA Touchpoints survey 2006). But it’s not just about the teens. SMS now accounts for 36% of total written communication for all women (compared with 23% for men). Text is a way of life. The mobile is the ultimate “me medium”. 

Text messages will reach you, wherever you are. Whether you want a reminder that your flight has been cancelled, or to enter a competition to win free VIP access to a gig using a mobile barcode, or request a safe ride home in your nearest licensed minicab from a text message, SMS is illuminating more areas of your life. Mobile is the ultimate “here medium”.

Our mobiles are forever by our sides and are seldom turned off. The mobile delivers time sensitive messages to us at all times of day or night, providing pin-point day-part targeting. Clients find themselves asking for advice as to when is the best time to send their messages, which is not something that happens in other media. Mobile is the ultimate “now medium”.

SMS, MMS and the Mobile Internet

Easy to use, and enjoying high penetration levels, SMS remains the predominant mobile format. 4.3 billion texts were sent in December 2006 in the UK (an average of 138m per day*). By comparison, 88 million MMS messages were sent in 3rd quarter of 2006 (an average of 1 million per day*)

The mobile internet is fast emerging as a key part of the mobile landscape: 30% (12.2m) of all mobile users accessed the internet via their mobile in the third quarter of 2006.*   As 3G penetration grows, this figure will increase as consumers enjoy faster download speeds which allow a superior browsing experience for relevant content,   purposed for their handsets. Mobile advertising, mobile search and mobile TV will in turn grow in popularity as 3G penetration expands. 

Future growth

The mobile market look will be driven by the following factors: 

• Familiarity – more consumers using mobile for more varied purposes
• Successful trial - advertisers experimenting with mobile before embracing the channel for mainstream marketing and CRM activity
• Sector growth – early adopters in entertainment, leisure, motor and financial services sectors will be joined by pioneers in FMCG, retail and fashion sectors
• Integrated planning – agencies will include mobile at the planning stage rather than adding it at the last minute if budgets allow
• 3G penetration growth from 8% to bring mobile TV and search formats into play
• Measurement – realtime tracking of consumer interaction throughout the mobile customer journey

 Do’s and Don’ts

Do...

• Respect people's privacy
• Offer consumers a choice of response path (SMS, url, phone number)
• Start with pilot before rolling out
• Monitor responces in real time

Don't...

• Be afraid to make mistakes
• Follow old segmentation models
• Use wrong creative work
• Ignore the need to integrate mobile in multimedia planning

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 * Source: MDA