Mobile Advertising - yes or no?

Martin Sorrel says mobile advertising is a major opportunity. Talking at a Reuters conference he said

"People will experiment," he said. "They won't make the decision to put millions of dollars in it (immediately). They'll make the decision on an exploratory basis."

Asked when it would become mainstream, he answered, "Quickly."

At the same event Tom Freston CEO of Viacom, which works with about 70 cellphone companies around the world, said he believes mobile video ads would have to be very short to succeed, and would depend on customers allowing them in exchange for deals on their cell phone.

"What amount of advertising are they willing to accept in exchange for lower fees," he said.

None say the people.

Some new research (sub. req.) from Royal Bank Of Canada amongst US consumers says;

Concern for price doesn't mean people would accept advertising on their cellphones to lower their subscription costs. More than half of those surveyed believe that mobile marketing is a nuisance and should be prohibited. In fact, 43% said they would be willing to pay more for a cellphone that prohibits marketing or advertising messages.

The old models won't work on mobile. We've seen that some Asian operators use this type of model but we're unconvinced - if you force an ad onto a handset people will ignore it, if they can't skip it. We need to develop new models of communication and test how they work on mobile based around permission based communications - and mobizines from (our client) Refresh remains one of the best models around.

Comments

[Russell Buckley]

Simon - totally agree.

Actuallly, on MobHappy, I wrote about the same conference:

"But, it’s pretty clear to me that they (agencies and operators) don’t really know how make it work. I don’t mean to be disrespectful, but they’re like cavemen who know that a couple of sticks can create fire. They just haven’t figured out the rubbing together part yet." http://mobhappy.com/blog1/2006/03/03/mobile-advertising-to-happen-quickly-says-sorrell/

I wonder if they will figure it out on their own?

Russell

[Russell Buckley]

Simon - totally agree.

Actuallly, on MobHappy, I wrote about the same conference:

"But, it’s pretty clear to me that they (agencies and operators) don’t really know how make it work. I don’t mean to be disrespectful, but they’re like cavemen who know that a couple of sticks can create fire. They just haven’t figured out the rubbing together part yet." http://mobhappy.com/blog1/2006/03/03/mobile-advertising-to-happen-quickly-says-sorrell/

I wonder if they will figure it out on their own?

Russell

[Lee Parkinson]

Hi Simon, I came across your blog a few months ago and make a point of popping in for a quick 'lurk' - I like what you guys are all about, and also agree with your comments on mobile 'advertising'.
We've been doing some pretty interesting things down here in NZ where we use the pervasiveness of mobiles to create some real fun brand experiences. OK, so far, we've favoured SMS due to the 'lowest common denominator' appeal of it, but even so, linked to live events (either existing or created), we've managed to get people to have a deep engagement with a brand because THEY CHOOSE TO.
Keep up the great work and take a look at our site if you get a moment. I'd love a chance to catch up for a chat next time I'm up in London
Cheers
Lee

[Fraser]

Hi, Simon
Ok, let's say you're on your mobile phone or wap or a mobizine and you see an advert, what do I as a consumer do next? Do I click, do I cancel my connection, write down the phone number or address and then go to the advertiser's adddress? Too difficult and not worth the consumers effort.

Google has set the standard - view the ad, click to the url.

If someone figures out how to transfer a mobile phone advert to the advertisers telephone number, then that would be worth pursuing.

At the moment, mobile advertising seems too intangible and unmeasurable; like old media.

Warmest Regards
Fraser.

[Simon Andrews]

Lee - I hear good things about mobile in NZ - particularly a sms paper and rock game - was that you guys? - Do get in touch if you're in London

[Simon Andrews]

Hi Fraser - completely agree that it has to be made easy - with a clear benefit to the user. On Refresh mobizines, one of the actions from an ad can be to make a phone call. You can also link to a wap site, send an sms etc.
its getting there.
best

[Simon Andrews]

Hi Russell - they're not going to figure it out on there own - they need people like us to help.
Its going to be a lot of phone - defining a whole new medium!

[Lee Parkinson]

Simon,
Yes, that was us - we also blew up a battleship ass well :)
Cheers, I will look you up!

Lee