Mobile Advertising: Detailed Analysis

Snapshot of Current US Market:

• US mobile penetration: 90%
• US mobile content subscribers with Internet access: 137 million
• The US mobile Internet audience stands at 67 million, 56% (37.5M) of which are smartphone owners.
• 50% of consumers expect to increase time spent on the mobile web in next 6 months
• 65% say mobile Internet is the most important feature when considering a new phone purchase
• According to Nielsen Mobile, 55% of mobile phone buyers in the second half of 2009 bought a smartphone or web enabled phone.

Mobile advertising provides marketers with more efficient, memorable ways to engage with and build brand loyalty with consumers.

Mobile Internet Advertising has Distinct Advantages Over Online Ads:

1.    Lack of clutter. In online, multiple ads served concurrently, distracting the viewer from focusing on one message. Mobile web pages only display one ad at a time. The issue of clutter – long the bane of many an online media buyer – is therefore eliminated. 2.    Size. Mobile ad units are proportionally larger to the screen than in online, making ads harder to miss and more impactful. 3.    Personalization. Mobile phone users are more engaged with ads on a mobile device because of the personal nature of a cell phone. 4.    Mobility. Marketers can use mobile display advertising to reach consumers when they are on the move and closest to the point of purchase.

Benefits of executing a mobile marketing strategy:

Enhance multi channel marketing efforts Provide an easy and immediate channel for consumers to buy, inquire or otherwise engage Build a one-to-one relationship with the consumer Build brand awareness, preference and purchase intent Extend special offers and promotions, often using LBS Stimulate word of mouth and social media activity Promote timely, personalized and location specific offers Improve customer service Improve the convenience of shopping Generate an opt-in database for future direct response marketing initiatives Extend print, TV, radio and outdoor campaigns by giving users an interactive channel through which to immediately engage.

Strengthen Customer Data:

Mobile campaigns also allow marketers to build valuable customer databases. Such opt-in is extremely valuable for obvious reasons:

1) Mobile is the first true one-to-one marketing channel. Mobile devices are rarely shared the way PCs are.

2) Users rarely change their number now that mobile phone numbers are portable, especially when compared to email or postal addresses.

Most mobile phone owners have their device within arm's reach 95% of the time over any 24 hour period. Marketers can therefore reach mobile users literally anytime of day.

But when is best? Much like they do in search, mobile users actually tell us when is the best time to reach them. Users generally make use of their mobile phone while out, often shopping, or simply to kill time. These are the brief moments when they are most open to receiving relevant ads.

With a mobile ad network, marketers can take advantage of dayparting and day of week targeting to serve ads to potential customers at both the right place and the right time.