I've always been skeptical about the hype surrounding mobile marketing and advertising, but I'm starting to see the light. As my monthly cell phone bill steadily creeps up, I'm beginning to understand the appeal of ad-supported mobile TV and other content. But I think it's going to take drastic measures to get me to opt-in to receive text-based ads and offers.
Apparently I'm not alone in my changing views on mobile advertising. According to ABI Research Director Michael Wolf, the negative stereotype of mobile marketing and advertising is starting to melt away in the U.S., where carriers have always taken a more conservative attitude toward this phenomenon compared to operators in Asia Pacific. Wolf believes that the buzz around open networks and open applications is helping propel mobile marketing in the U.S. market. He says operators are anxious to show that they are open to other business models such as ad-supported content. Of course, the key is always that consumers must opt-in for these offers and opportunities.
Wolf, who just authored a study on mobile marketing, projects revenue from mobile marketing will grow to more than $24 billion worldwide in 2013, up from $1.8 billion in 2007. However, he says the real turning point for mobile marketing will come in a few years when location-based services and search are tied to advertising to make offers even more compelling. "Targeted advertising based upon location is very compelling," Wolf says.
Currently there are hundreds of firms out there offering mobile marketing services and platforms that will help brands and operators push out marketing messages to consumers. But it's unlikely that all these firms and diverse technologies will be able to survive. As mobile marketing starts to gain traction, Wolf expects to see mergers and acquisitions in this area.
Some small firms have already been snapped up by big players, such as Nokia's Sept. 17 purchase of Enpocket. Wolf says that these types of acquisitions are good for the industry because they typically mean more capital for the mobile marketing firm and access to operators or other partners. "Over time we'll see significant growth," Wolf says.
One company Wolf recommends we keep an eye on is Admob. This mobile advertising firm has built some interesting momentum in a short time and he wonders if they may be an acquisition target. -Sue [1]
Links:
[1] mailto:sue@fiercemarkets.com