Why The Mobile Internet Marketing and Advertisement Will Be The Key Revenue Earner For Network Providers in 2015?
The fragile economy has created more savvy customers. People are increasingly using mobile internet in-store to research products and prices before purchasing. According to research conducted by On Device Research , in India 59 percent of mobile Internet users don’t even use the desktop Internet.
In this post, I will discuss more impact of high speed mobile network on mobile advertisement and why I think this will be key to future revenue stream.
According to consumer research by The MMA and Lightspeed Research (October 2010), in UK, France and Germany, 45 percent of consumers (especially younger people) noticed mobile advertising and of these, 29 percent responded to it. Of those that responded to the ads, in Germany 49 percent, UK 47 percent and in France 22 percent went on to make a purchase.
This ‘mobile-only’ generation is the segment of the Internet audience who only, or primarily, use the mobile Internet and NOT the desktop Internet. This new generation can now download and purchase content via mobile, and do not have the alternative of downloading on PC, making it a very significant target group for music and games companies. Actually, people spend more time on their mobile devices than desktops
Currently, in emerging markets including India most respondents use feature phones. For example, in a recent study in Africa, it is reported that only 15 percent of respondents used a smartphone and most of these were Nokia Symbian devices. In developed markets, the devices lean towards smartphones. Even, companies like Oracle is investing money to provide a Java based solution to feature phone so that people can enjoy several features of smartphone.
image source -Ronnie05's Blog
The mobile evolution has been advancing at a break-neck pace and mobile is increasingly going to be regarded as an integrated piece of a digital marketing strategy.
Impact of Smartphone & tablets penetration rate to mobile advertisement
Smartphone adoption accelerated in both the U.S. and Europe. U.S. smartphone adoption reached 27 percent of mobile subscribers in December 2010, an increase of 10 percentage points from the previous year, while European adoption reached 31 percent, also up nearly 10 points versus year ago.
Adobe’s Digital Marketing Insights report looked at data from 16.5 billion visits across more than 150 retailers to find that the average order value when shopping on a tablet was $123, compared with $102 on a desktop.
A Marin Software study found that consumers are more likely to click on search results ads when using smartphones or tablets than when using a desktop or laptop. Actual click-through rates in Q4 2011 measured 1.25% for smartphones, 1.31% for tablets and 0.95% for desktops and laptops. Performics reported that mobile click-through rates were 45% higher than desktop through the end of 2011 and January 2012.
By 2015, more U.S. Internet users will access the web through mobile devices than through PCs. And sales of smartphones continue to exceed all other types of computing devices combined, including tablets. Canalys reported that 488 million smartphones were shipped worldwide in 2011, compared with 415 million “total client PCs,” including 63 million tablets. Finally, tablet ownership in the U.S. nearly doubled this past holiday season (mid-December to early January).
Let’s discuss the impact of this new ‘mobile-only’ generation on mobile advertising and marketing
Gartner prediction on mobile ad revenue
2011 $3.3 billion
2015 $20.6 billion
Top 3 Revenue earners
1. Search ads and location ads (paid-for positioning on maps and augmented reality apps)
2. Video & audio ads will see the fastest growth through 2015.
Prediction for next three years
• Brand spending on mobile advertising will grow from 0.5 percent of the total advertising budget in 2010 to over 4 percent in 2015.
• Asia will continue to dominate global mobile ad spend, but to a lessening degree from 49.2 percent of mobile ad revenue in 2011 to 33.6 percent in 2015.
Top 3 effective mobile advertisements
• The most effective form of ads was opt-in SMS in the UK (40 percent said they were more likely to respond to these) and in France (21 percent); while in Germany it was mobile Web ads (27 percent).
• Time sensitive special offers or discounts (especially m-coupons) were most likely to lead to purchase.
• People were most likely to purchase mobile content such as applications, music and games.
Here is a survey report by US consumer Mobile Movement on consumer behavior
• Of people who react to seeing a mobile ad: 42 percent click on the mobile ad; 35 percent visit the advertiser’s site; 32 percent search for more information on their phone; 49 percent make a purchase and 27 percent call the business.
• 71 percent of smartphone users that see TV, press or online ad, do a mobile search for more information.
• But 79 percent of large online advertisers still do not have a mobile optimized site, according to Google/Kelsey 2010.
5 Reasons Why I believe 4g will really a game changer for mobile advertisement and marketing in India?
Mobile and wireless network technologies are now the main channels of communication for hundreds and millions of users worldwide. 4G will have a profound impact on entire wireless landscape. 4G offers a highly focused solution to the problems of multiple heterogeneous networks. Mobile web adoption is happening eight times faster than traditional web adoption in the late ’90s. Mobile searchers have a sense of urgency not seen as often in traditional search methods and they are more focused.
1. Better Network Quality and advanced services like
2. High speed & more responsive mobile Web experiences
3. Data Roaming , multimedia streaming, audio, video and mobile apps.
4. Cost Efficient plan
5. Near Field Communication, a technology already integrated in some high end mobile devices such as the Nexus S, is expected to go mainstream in the near future. Imagine a world in which you hold your mobile device near an ad in a magazine, and the ad then becomes interactive on your device’s display. Such a campaign would once again generate more clicks due to its interactive nature. NFC will change the mobile advertising world as we know it.
In summary, I believe cell phone advertising in india will be a key revenue earner for Indian telecom companies. The strong eco-system that is beginning to take shape with Telcos, OEMs, ODMs, Developers and Consumers will further drive compelling content that will drive data traffic.
Further Reading
Meanwhile India and Indonesia occupy the top two spots, each having seen an astonishing 3.6+ billion ads served up to its mobile user base in Q3. To put that into perspective, India currently has 471 mobile phone users (so that’s an average of 7.5+ ads per user). 127 million are “Internet ready”, but only two million are ‘serious’ mobile Internet users.Click here to read more ..
The fragile economy has created more savvy customers. People are increasingly using mobile internet in-store to research products and prices before purchasing. According to research conducted by On Device Research , in India 59 percent of mobile Internet users don’t even use the desktop Internet.
In this post, I will discuss more impact of high speed mobile network on mobile advertisement and why I think this will be key to future revenue stream.
According to consumer research by The MMA and Lightspeed Research (October 2010), in UK, France and Germany, 45 percent of consumers (especially younger people) noticed mobile advertising and of these, 29 percent responded to it. Of those that responded to the ads, in Germany 49 percent, UK 47 percent and in France 22 percent went on to make a purchase.
This ‘mobile-only’ generation is the segment of the Internet audience who only, or primarily, use the mobile Internet and NOT the desktop Internet. This new generation can now download and purchase content via mobile, and do not have the alternative of downloading on PC, making it a very significant target group for music and games companies. Actually, people spend more time on their mobile devices than desktops
Currently, in emerging markets including India most respondents use feature phones. For example, in a recent study in Africa, it is reported that only 15 percent of respondents used a smartphone and most of these were Nokia Symbian devices. In developed markets, the devices lean towards smartphones. Even, companies like Oracle is investing money to provide a Java based solution to feature phone so that people can enjoy several features of smartphone.
The mobile evolution has been advancing at a break-neck pace and mobile is increasingly going to be regarded as an integrated piece of a digital marketing strategy.
Impact of Smartphone & tablets penetration rate to mobile advertisement
Smartphone adoption accelerated in both the U.S. and Europe. U.S. smartphone adoption reached 27 percent of mobile subscribers in December 2010, an increase of 10 percentage points from the previous year, while European adoption reached 31 percent, also up nearly 10 points versus year ago.
Adobe’s Digital Marketing Insights report looked at data from 16.5 billion visits across more than 150 retailers to find that the average order value when shopping on a tablet was $123, compared with $102 on a desktop.
By 2015, more U.S. Internet users will access the web through mobile devices than through PCs. And sales of smartphones continue to exceed all other types of computing devices combined, including tablets. Canalys reported that 488 million smartphones were shipped worldwide in 2011, compared with 415 million “total client PCs,” including 63 million tablets. Finally, tablet ownership in the U.S. nearly doubled this past holiday season (mid-December to early January).
Let’s discuss the impact of this new ‘mobile-only’ generation on mobile advertising and marketing
Gartner prediction on mobile ad revenue
2011 $3.3 billion
2015 $20.6 billion
Top 3 Revenue earners
1. Search ads and location ads (paid-for positioning on maps and augmented reality apps)
2. Video & audio ads will see the fastest growth through 2015.
Prediction for next three years
• Brand spending on mobile advertising will grow from 0.5 percent of the total advertising budget in 2010 to over 4 percent in 2015.
• Asia will continue to dominate global mobile ad spend, but to a lessening degree from 49.2 percent of mobile ad revenue in 2011 to 33.6 percent in 2015.
Top 3 effective mobile advertisements
• The most effective form of ads was opt-in SMS in the UK (40 percent said they were more likely to respond to these) and in France (21 percent); while in Germany it was mobile Web ads (27 percent).
• Time sensitive special offers or discounts (especially m-coupons) were most likely to lead to purchase.
• People were most likely to purchase mobile content such as applications, music and games.
Here is a survey report by US consumer Mobile Movement on consumer behavior
• Of people who react to seeing a mobile ad: 42 percent click on the mobile ad; 35 percent visit the advertiser’s site; 32 percent search for more information on their phone; 49 percent make a purchase and 27 percent call the business.
• 71 percent of smartphone users that see TV, press or online ad, do a mobile search for more information.
• But 79 percent of large online advertisers still do not have a mobile optimized site, according to Google/Kelsey 2010.
5 Reasons Why I believe 4g will really a game changer for mobile advertisement and marketing in India?
Mobile and wireless network technologies are now the main channels of communication for hundreds and millions of users worldwide. 4G will have a profound impact on entire wireless landscape. 4G offers a highly focused solution to the problems of multiple heterogeneous networks. Mobile web adoption is happening eight times faster than traditional web adoption in the late ’90s. Mobile searchers have a sense of urgency not seen as often in traditional search methods and they are more focused.
1. Better Network Quality and advanced services like
2. High speed & more responsive mobile Web experiences
3. Data Roaming , multimedia streaming, audio, video and mobile apps.
4. Cost Efficient plan
5. Near Field Communication, a technology already integrated in some high end mobile devices such as the Nexus S, is expected to go mainstream in the near future. Imagine a world in which you hold your mobile device near an ad in a magazine, and the ad then becomes interactive on your device’s display. Such a campaign would once again generate more clicks due to its interactive nature. NFC will change the mobile advertising world as we know it.
In summary, I believe cell phone advertising in india will be a key revenue earner for Indian telecom companies. The strong eco-system that is beginning to take shape with Telcos, OEMs, ODMs, Developers and Consumers will further drive compelling content that will drive data traffic.
China's mobile ad network Madhouse enters India to tap the mobile ad market of India. See the video on the plan of Madhouse.
Further Reading
- Which countries lead in mobile advertising?
Meanwhile India and Indonesia occupy the top two spots, each having seen an astonishing 3.6+ billion ads served up to its mobile user base in Q3. To put that into perspective, India currently has 471 mobile phone users (so that’s an average of 7.5+ ads per user). 127 million are “Internet ready”, but only two million are ‘serious’ mobile Internet users.Click here to read more ..
Mobile advertising grows bigger than any other form of digital or internet advertising. Anywhere in the world, the numbers of customers who use mobiles have been rapidly increasing. Response rate of audiences is also high on mobile as compared to other tools of advertising. And there are more chances of seeing an ad in the mobile using SMS, MMS or WAP applications.
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