Tuesday, July 3, 2007

Survey: Growing Opportunities for Mobile Advertising

More than four out of five U.S. adults (85%) own a mobile phone, compared with seven in ten (71%) who have a landline or home phone - and nearly two-thirds of mobile phone owners (63%) agreed that their phone is very personal to them, according to a poll conducted by Harris Interactive and commissioned by Ingenio, MarketingCharts reports.

Less than a third of mobile phone owners (30%) recall seeing or hearing an advertisement on a mobile phone in the past year, suggesting that a dominant advertising model to reach the growing demographic of mobile phone users has yet to emerge, Ingenio said.

Ad-related findings:

  • Regarding the kind of mobile ads they find acceptable, respondents were most favorably disposed toward sponsored text links that appear as a result of internet searches (26%).
  • Close behind were audio ads that play instead of ringing when waiting for someone to answer a call (21%), and a text message from a company (20%).
  • Among those who have ever called 411 from their mobile phones, commercial (74%) and restaurant (72%) phone and address listings are the most frequently sought-after types of information.
  • When asked about their current and anticipated cell phone use, about half of mobile phone owners (49%) said they are already using their phones for more than just calls, including sending and receiving text messages (36%), and taking, sending and receiving photos (24%).

"An inherent difference between the mobile and PC environments is that mobile searchers want to find information and then immediately act on it," said Marc Barach, chief marketing officer, Ingenio.

"The mobile environment lets advertisers reach consumers at the point of decision, and an advertising model that connects the two when intent is at its highest will do for mobile what clicks did for the web."

Source: Marketing Vox

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One in Five Users Gives Mobile Search and Audio Ads Thumbs Up

More than a quarter of the people responding to a new survey said sponsored text links that appear as a result of Web searches would be their preferred form of mobile phone advertising.

The research, commissioned by mobile pay-per-call ad provider Ingenio, found that 26 percent of the 4,123 adult respondents reacted favorably to the idea of search-based mobile marketing. However, there was also some approval of audio ads that would play while the caller is waiting for another party to answer, said Ingenio. It said 21 percent of those surveyed had a positive response to that idea.

Text messages from an advertiser were the least-supported form, according to the report. Twenty percent of those surveyed said text message offers were deemed "at least somewhat acceptable."

The study, conducted by Harris Interactive, confirmed prior Ingenio data that showed most mobile phone searches are for local businesses such as restaurants, hotels and entertainment services. In the new study, Ingenio found 74 percent of people who have dialed 411 on their cell phones were looking for a business, and that "phone and address listings are the most frequently sought-after types of services."

Just 30 percent of the mobile phone owners surveyed could recall seeing or hearing an advertisement on their device during the past year. "That says to us there's a giant opportunity… a greenfield opportunity for businesses to place themselves in front of a huge audience," said Ingenio Chief Marketing Officer Marc Barach.

The movement to ad-supported mobile phone service is likely to begin with information services. Whereas service providers now charge users fees for 411 searches, this structure is likely to give way to searches that are free but serve up advertising, said Barach. "You listen to an ad that is relevant to your query," he said. "Then you have a choice of following that advertiser path or staying on the phone and getting the listing you asked for."

Jingle Networks also provides a free information service under the Free411 name.

Barach said he was most surprised by the study's findings relating to mobile phone ownership. "The finding that mobile phones now exceed landlines for all age groups is pretty powerful stuff," said Barach.

The survey showed that more than four out of five adults in the U.S. own a cell phone while 71 percent have a land-line or home phone. It also found that 89 percent of those 18 to 34 years old own cell phones or smartphones, but only 57 percent of that group have a land-line phone.

The key to successful search-based mobile advertising is accurate targeting, said Barach. That's because, unlike a PC's Web browser, "the tolerance for error is that much smaller on the small screen."

He believes mobile advertising is going to blossom quickly, particularly if phones with larger screens and better Web browsing follow the iPhone's lead and become commonplace. Eventually, wireless carriers will drastically reduce their fees for data plans as the space becomes monetized by advertising, Barach predicted.

"That's really the silver lining to bringing more advertising to mobile [from a consumer point of view]," he said. "It will make the cost come down and ultimately be free."

Source: ClickZ

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Text marketing enters the fray

An online company believes paying people to receive ads is the key to marketing by text message without irritating consumers or phone companies.

Mobile phone users registered with HooHaa list their name age, location and buying interests on a database and allow themselves to be reached by advertisers by text.

In return, they get a 10 cent credit for each advertiser text which is accumulated into lots of $2.50 and deducted from their mobile accounts.

The scheme started in January after chief executive Brian Hawker and his partners - Jason King and Kerry Emerson - happened on the idea.

Hawker - who has a background in sales and marketing at FMCG company Masterfoods - says it is early days yet.

But HooHaa signed up 43,000 people and last month began its move into the Australian market. "We've been surprised by the swift uptake and to be honest there is an element of our touching wood," he said.

"But we think that we might have happened on a business model for marketers to reach mobile customers with tailored messages."

Mobile phones are enticing for marketers because it gives them direct one-to-one access to consumers.

HooHaa answers a problem that has ensured mobile marketing is heavily self-regulated by the phone companies.

"Quite frankly, people just really hate it, says Michael Carney, the media strategist at ad agency G2.

But permission-based marketing is allowed by phone companies and HooHaa says it lets advertisers reach mobile users without becoming a nuisance.

HooHaa advertised through mainstream media and registered people in an online survey giving their interests and buying habits. As a result they got approaches only on things they wanted to hear about.

"I don't want to get messages from a fashion store like Max, but I do want to know there is a special deal for golf club members at a local golf store or if my favourite beer was selling at $15 a dozen at a local supermarket," he said.

Hawker said traditional direct marketing would see companies sending out 100,000 pamphlets or messages trying to reach 1000 customers.

Direct marketing executive Robert Limb, of Rapp Collins Limb Walker, said the type of service offered by HooHaa was more likely to be attractive for promotional advertising than for discounting.

He said the appeal of mobile marketing was based on the close relationship that could be forged and had to be built on permission to communicate.

Consumers had to be in control of the messages they were receiving.

Hawker confirmed the HooHaa had "some challenges" with one of the phone companies but declined to give details of this, the allocation of ad revenue or profitability.

He said the HooHaa database had a broad cross-section of consumers, but was strongest in the demographic for people aged 18-30.

Source: New Zealand Herald

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Many Now Find Dates Using their Cell Phone

Recently, Jeff Blum was out buying a sandwich when his mind wandered toward his social life. So he got out his cell phone and sent a text message with his work ZIP Code to MeetMoi, a new mobile-dating service. Within minutes, his phone received the profile of a woman who worked nearby, and the two began exchanging messages about where they worked, their professions — and meeting up for a drink.
"I liked the fact that we were talking right then and not waiting for e-mails to go back and forth," says Blum, who is 24 years old. "It all happened right away."
Millions of consumers have begun prowling for a date on their cell phones, thanks to new mobile-dating services that enable "real-time" dating — that is, letting users connect on the spot with the people they pick out. Designed to be instant versions of Internet dating, many of the new services have capabilities that online-dating services haven't offered — such as letting you search for a date in a location you can update as you move around, and letting you chat with other people seeking a date while you're out and about.
Match.com will soon launch a new mobile-dating service that will allow its 15 million members to access their profiles and send messages to potential matches from their phones. Match.com is also planning to launch some dating features on Ask Mobile GPS, a software application that lets users of phones with built-in Global Positioning System chips search for local businesses near their location. While the service is still being designed, it could allow users to search for other daters nearby. "We want to take mobile dating to the next step," says Match's chief executive, Thomas Enraght-Moony.
MeetMoi's recently launched dating service helps users identify people who are nearby and looking for dates. Registered users can indicate that they are available by text-messaging a ZIP Code or street address to the service. MeetMoi then searches for other members who have indicated they're looking for a date in the area and sends back the profiles of people who match the user's criteria. The service is free to register and costs 99 cents for 10 anonymous text messages.
Zogo was launched late last year and connects users who want to talk by phone. Users who log in through the browser in their mobile phone will see a list of matches based on information they have provided about their preferences. If one of the matches sparks a member's interest, he can request a phone conversation, prompting Zogo to send a text message to the match's phone. If the recipient consents, Zogo calls both phones simultaneously, without disclosing either member's phone number. Zogo is now free but may soon start charging a monthly subscription fee for some features.
Jumbuck Entertainment's Fast Flirting service is a mobile version of speed dating. For about $3 a month, it allows users to sign into a virtual "lobby" where they can select a flirting partner based on factors such as age and location. They can then have private text conversations of up to 10 minutes — a twist on real-world speed dating in which users try to meet a lot of new people in a short period of time.
While consumers who would rather flirt from afar are skittish, the new features are starting to gain steam among a new generation of mobile daters who want to do everything on the go. The services are already driving strong growth for the mobile-dating market — and helping to entice consumers to sign up for the mobile data plans that are necessary to browse the Web from their phones. An average of 3.6 million U.S. cell-phone users accessed a dating service from their mobile phone in March, according to M:Metrics, a mobile research firm, up from 2.8 million in March 2006.
Dating is in many ways made for mobile phones, says Mark Donovan, an analyst with M:Metrics, because people are often most eager for a date when they are "out and about." But the services, particularly those based on location, are likely to appeal most to users in dense urban areas, where the dating pool is likely to be larger and more concentrated.
Mobile-dating services also face pressure to prove that they are safe for users and can't be exploited by stalkers posing as daters. To address such concerns, MeetMoi makes its matches without divulging members' locations to each other, and it automatically logs users out of the location they put in after two hours. "You tell us when you want to become available," says MeetMoi's founder and CEO, Andrew Weinreich. He adds that the service is safer than other dating services because a user can have only one account pegged to his or her phone number (unlike Internet dating sites where users can register under multiple aliases).
Still, some worry that location-based features might be misused. "Right now the application would become a stalking application if you added GPS," says Ted Verani, senior vice president of sales and marketing for Trilibis Mobile, creator of mobile-dating service Webdate Mobile. He adds that GPS may be appropriate when technology improves to enable users to better regulate who sees what.
Other hurdles for potential miscreants include a complicated sign-up process. While many services will work across most phones, they often require the users to sign up for a mobile Internet data plan. Some carriers may block some services like sending profile pictures, because they consume too much traffic. And pricing plans still vary widely, with some services charging per text message and others charging monthly subscription fees.

By Jessica E. Vascellaro
The Wall Street Journal

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