Predictions for Mobile Advertising

A recent study has been released from Berg Insight, a telecoms analyst firm, that reveals 5 predictions in the future of mobile advertising. This is based on the speed at which the market is moving coupled with the downturn of the economy. Some of these predictions is kind of hard to make a determination whether or not it makes sense, and others seem to by pass whether or not it will be effective or not.

First prediction: Ad-funded MVNOs. The thought is that consumers in a down economy will want discounted if not free minutes, text messages in exchange that their phones will be filled with ads. However, consumers realize this is a sacrifice. They accept this very much the same way we accept the pain of commercial interruptions on tv. So what does that do? Since they don’t have a channel changer, they develop a way to tune out the noise and ignore the ads. They know where they appear, and they know where the real content is and jump right to it. This is not to say that mobile ads don’t work altogether. It is just that the mobile device happens to be one of THE most personal devices that anyone has. Our relevance radar and privacy wall is extremely high when it comes to our cell phones.

Now BLYK has ventured in this model very successfully. However their model offers one thing that is very important. Their model is based off of SIM card marketing which targets a specific demo age bracket from 16- 24yr olds. More important, it enables those consumers to profile themselves to the degree that they will only receive marketing and advertising that is directly relevant to their profile. The SIM card captures and holds all the vital information about the individual so that any advertising is directly relevant to them, and marketers can build better relationships with them.

So imagine this model for recruitment purposes. The products and content that you profile yourself against can be linked to the companies that produce them or play in the same space.

Second prediction: Smartphone popularity
This is basically the fact that mobile web will become standard in all phones. Mobile web means that advertisers will need to develop more bannering for mobile browsers.

Third prediction: Idle-screen advertising
This one seems to have some glitches. The fact is, no one wants to have a phone that can’t hold battery power because the darn thing stays on with this idling advertising. So unlike a screen saver would do for your desktop, that seems fine because you are juiced to electricity and you’re saving your screen from burning out. A cell phone in your pocket makes it a little difficult to view an idling ad and it doesn’t do much for your battery life. Plus most screens shut off until you are ready to use it.

Forth prediction: Innovation
I am not sure innovation can be labeled as a prediction. I gather what they are saying is that mobile media is fast moving and has so many untapped channels for newer opportunities. That I agree.

Fifth prediction: Financing – Size matters in the race for market leadership
They report that existing digital and mobile industry players will have an advantage over the small start ups. That many of which will have difficulties finding financing. Well, if you look at all the innovative services and products that have started up on a shoe string, the rule still exists that if you have a great idea, the money will come. So sometimes the more established you are the slower you become in developing those risk taking innovations that only the smaller start ups are nimble enough to do.

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TMP Worldwide
Written by TMP Worldwide

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