Mobile screen 'the next big ad platform'

Small is big, as mobile phones are getting the attention of marketing professionals.

More than 82 per cent of brands, agencies and other companies are planning to enhance their ad spend on small screens in the next 12 months, revealed a study by MediaPost's Centre For Media Research and digital research firm InsightExpress.

Most of the professionals surveyed supported the small screen and have increased their faith in it because of the support from third-party branded applications and emergence of mobile videos as a major tool to catch the attention of consumers.

The study revealed that about 40 per cent plan to increase spending by 30 per cent and 30 per cent will increase by 31 per cent or more during the next 12 months.

Only a very small percentage [three per cent] plan to bring down the ad spend on the mobile platform.

Mobile phones, however, do not enjoy the status of an independent platform with a dedicated ad budget. According to the survey, half of the mobile ad spend currently come from online budgets, 35 per cent from cross-platform buys, 27 per cent from funds specifically earmarked for mobile and eight per cent from TV budgets.

However, this status is expected to change drastically as the study projected that 43 per cent of mobile spending in the future will come from designated mobile budgets as the sector matures.

Consumers are feeling the rush of advertising on the mobiles and are reacting with mixed response. "I am from the communication field and I welcome any new platform or medium for branding," said Roshni Naik, in support of mobile advertising, "but advertisers have to be ethically responsible and avoid a barrage of messages from the same source, especially at unearthly hours of the middle of the night".

Danish Farhan, CEO of Xische Studio, which specialises in branding on the mobile platform, said mobiles are within one's arm's reach and that makes them the best possible platform with "some of the best return on investment".

"Text messages are the beginning of the mobile revolution. We are working on advertisements in the form of video downloads that will in fact trigger a domino effect with consumers sending [the ads] to each other, after seeing it for themselves," said Farhan.

A separate study released by TubeMogul and Brightcove found that more than half of the media companies plan to roll out ad-supported mobile video in the next six to 12 months.

"As any other platform, technology forms only a small part of it, you still have to find a creative element to best utilise that platform.

"What works for BTL or outdoor, or even radio may not excite viewers on mobiles," said Farhan.

The emergence of this new platform is giving rise to a new stream of suppliers and production houses as most agencies depend on outside sources to develop creative. The study reveals two-thirds of ad firms developed completely new creative, while half of them have also repurposed existing online creative for mobile projects.

The direct approach of mobile phones seems to be attracting the most and offering the best ROI. More than a third (36 per cent) cited mobile coupons as the most effective form of mobile advertising, followed by lowly text links and banners, at 26 per cent each.

In the region, etisalat has launched a service to transfer money using the mobile platform. This is the beginning of promoting mobile phones as a reliable platform for making financial transactions, following which advertising on this fast-growing platform is expected to grow and boost mobile ad spend.

Du, the Dubai-based telecommunications service provider, conducted a campaign on mobile phones through the Twitter platform. With the intention of collating information of tech-savvy industry leaders, du initiated the campaign to gather feedback from its users and the result was a dedicated set of followers, promoting du packages among their social network.

Farid Faraidooni, Chief Commercial Officer of du, told Emirates Business: "Conversations about brands are taking place… be it positive or negative, whether we like it or not. At du, we have chosen to listen to and participate in the conversation and improve to enhance customer experience."

Advertisers also back the emergence of mobile phone advertising as an industry that supports third-party suppliers in the form of developing dedicated applications. This, in fact, is the biggest reason for supporting the mobile platform – 47 per cent of the surveyed professionals feel so, followed by 44 per cent, who showed their faith in mobile video capability.

The study also covered agencies separately and found 57 per cent were involved in mobile campaigns. On the delivery front, the majority (52 per cent) of the efforts were delivered with outside help of third-party suppliers. Only 23 per cent of the agencies have invested in hiring in-house mobile expertise and even less than that (21 per cent) in production facilities.

Of the agencies that have not run a mobile campaign, a vast majority (71 per cent) is likely to do so in the next one year and another 22 per cent in the next three years. In contrast, only 29 per cent do not see the mobile phone becoming part of their business in the forseeable future.

The study was conducted by InsightExpress, a digital marketing research firm, with MediaPost's subscriber base and took place on April 19 and 20.

Digital Consumer Portrait
A study of the Digital Consumer Portrait reveals a shift in three major mobile user profiles – Mobile Intensives, Mobile Casuals and Mobile Restrained. The three segments represent the latest in mobile behavioural and attitudinal trends among consumers.

Mobile Intensives
This group represents 23 per cent of the mobile universe, up from about 15 per cent in early 2008. Members are characterised by smartphone ownership (68 per cent) and a desire to utilise all capabilities offered by their mobile phone (mobile internet, texting, videos, applications etc). Mobile phones play a key role in the lives of these consumers and fall within the sought-after 18 to 44-year age range.
Advertisers and marketers should take notice of Mobile Intensives as this group is the most open to advertising. Over half (53 percent) agree that they “look at advertisements to see what I should purchase” while 44 per cent agree that they “make a want list” of products advertised.

Mobile Casuals
Mobile Casuals represent 24 per cent of the mobile universe (on par with early 2008), and are characterised by their use of mobile phones as a lifestyle enhancing convenience.

While smartphones seem to be an emerging interest for this group (15 per cent own one), 85 per cent own a feature phone.

Mobile Casuals are more likely to be female (65 per cent), and fall into the 35 to 54 age range. Unlike Mobile Intensives, Mobile Casuals are not devoted to their devices. Mobile Casuals also appear to be almost as engaged in advertising as their Mobile Intensive peers. Less than half (46 per cent) agree they “look at ads to see what I should purchase” but only a third agree that they “make a want list”.

Mobile Restrained
Currently representing 53 per cent of the mobile universe (down from 60 per cent in 2008), Mobile Restrained individuals are the least sophisticated mobile users.

A whopping 96 per cent own a feature phone instead of a more advanced smartphone.

More than half (57 per cent) are over 45 years old. The Mobile Restrained group is also less active when it comes to texting and photos, with 47 per cent texting once a week and 27 per cent taking a mobile picture once a week. Like Mobile Casuals, 47 per cent agree that they “look at ads to see what I should purchase” but Mobile Restrained individuals are least likely (28 per cent) to agree that they “make a want list” of products featured in ads.

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