The challenge of overcoming consumer apathy

Unsolicited text messages, web page banners while browsing the mobile Internet and banner ads on idle screens… These formats still constitute the most predominant types of mobile advertising that mobile phone users are exposed to today, and are largely initiatives based on formats from the online world of advertising.

It’s then not surprising to read that recent research conducted by UK research & consulting organisation, YouGov among 2,082 smartphone owners, concluded that 79% of smartphone users believed mobile advertising to be intrusive and largely non relevant. For mobile operators, this highlights the risk of alienating their subscribers if mobile advertising is not handled properly.

However, where user benefits are tangible, ads highly targeted and delivered in a non-intrusive manner, the potential for generating revenues from mobile advertising remains significant. In addition to incremental revenue opportunity for an operator, the service can also serve as a customer retention tool, through the perceived delivery of value to end-users. For advertisers, the attractiveness of this medium undoubtedly lies in the immediacy, cost effectiveness and increased engagement.

With the increasing adoption of smartphones, a number of mobile advertising firms have emerged in the full screen display segment, all claiming to have the secret sauce to addressing this challenge of intrusiveness and non-relevance; among them Norway-based Mercury Mobile.

Mercury Mobile’s me-mobi mobile advertising platform is an end-to-end ad serving platform; consisting of a front-end mobile application client and a self-serving ad publishing server with a report and analytic tool to track performance.

In addition to incremental revenue opportunity for an operator, mobile advertising can also serve as a customer retention tool, through the perceived delivery of value to end-users

The me-mobi ad serving platform has sought to address the problem of non-relevance and intrusiveness, through serving smartphones users tailored, full screen ads matching subscribers profile and preference data. The mere fact of a mobile advertising service being permission-based does not in itself make it non-intrusive. The me-mobi platform is notable for the manner in which the targeted ads are delivered to smartphone screens. The ads are delivered only when the phone is in use, and when the user is most likely to see it.

Targeted at mobile operators, the platform meets the requirements of service providers looking to monetise their subscriber base through mobile ad delivery, and provides brands with an effective vehicle to engage their customers directly with easy-to-use intuitive dialogue buttons that make use of the unique touchscreen capabilities of smartphones.

The company only recently concluded a three-month pilot trial in Oslo, Norway, among 200 subscribers using the Android based Galaxy S smartphone with network partner Tele2.

The mobile advertising market continues to draw a lot of buzz and excitement with so many initiatives being launched in the industry, however to realise the full potential of this market segment, ensuring advertising is done properly remains the major challenge for mobile operators.

Mercury Mobile Int AS (www.me-mobi.com) was established in 2009 by mobile advertising pioneers. The company is privately funded by private and institutional investors and headquartered in Norway. The company is actively working in European and international markets, partnering with innovative advertisers, agencies, media companies and mobile network operators.

Mercury Mobile has developed the unique mobile marketing solution; me-mobi.

This article was contributed by Devine Kofiloto, Product Manager at Mercury Mobile Int

Mobile advertising trend gathers pace in US

By the end of this year, eMarketer estimates, 38 per cent of US mobile users will have a smartphone and 41 per cent will use the mobile Internet at least once each month. These developments mean an increase in the opportunity for mobile advertising—and an increase in spending.

eMarketer forecasts that advertisers will spend nearly US$1.23 billion on mobile advertising this year in the US, up from US$743 million last year and the amount is set to reach almost US$4.4 billion by 2015. This includes spending on display ads (such as banners, rich media and video), search and messaging-based advertising, and covers ads viewed on both mobile phones and tablets.

This year, messaging-based formats still represent the largest portion of mobile advertising revenues, accounting for US$442.6 million in spending. But in 2012, banners and rich media are forecast to become even with search, each garnering 33 per cent of spending, or US$594.8 million. That will place them ahead of messaging, which will fall to 28.2 per cent of all mobile ad spending next year. By 2015, banners and rich media and search will dominate further, and messaging will have shrunk to 14.4 per cent of the total – though still growing in terms of dollars.

Video is the fastest-growing mobile ad format, but from the smallest base. Mobile video ad spending, at US $57.6 million this year, will grow at a compound annual rate of 69 per cent between 2010 and 2015 to reach US$395.6 million.