Mobile marketing is certainly a subject of great interest amongst advertisers and mobile network operators: Juniper predicts global spend on mobile advertising to leap from $US1.3 billion to $US7.6 billion by the end of 2008!
However, we have observed many mobile network operators hesitating at the proposed costs of deployment, particularly given a perceived uncertainty over the monetisation process.
The opportunity for success looms large, but factors like segmentation, privacy, targeting, and ROI cast a shadow over the decision to deploy or – in that time-honored telecommunications tradition – wait until your competitors launch!
And even though definitive monetisation models for mobile marketing are still somewhat fuzzy for the operators, the customer response is demonstrably there; with evidence from agency-led campaigns supporting that mobile marketing can elicit tremendously favorable consumer behavior.
What is inarguable is that successful mobile marketing campaigns require the same basic attributes.
Firstly they need to be permission-based, allowing the customers to opt-in and opt-out at any given moment. They also have to be beneficial to the end user, free of charge and (most critically) contextually relevant. And that’s the context of the end-user, not the advertiser!
Blending these factors together essentially creates a formula for successful mobile marketing campaigns.
We firmly believe that the context of a mobile subscriber can be more successfully leveraged through their location. We also agree with Simon Andrews of Mindshare that the “time to embrace mobile advertising” is now.
By taking the next positive step now, MNOs are able to embed themselves in the opportunity of mobile marketing and be a front runner in this exciting new business model.
Mark White is the founder and CEO of Brisbane-based mobile application vendor Locatrix Communications.