Mobile marketing - it's here to stay

If you have ever received an advertisement on your mobile phone, then you have been already touched by 'mobile marketing'.

  • Tuesday, January 09 - 2007 at 08:40

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Direct marketing techniques range from simple direct mail campaigns to more sophisticated relationship-based web promotions. In US & Europe, total expenditure on direct marketing as part of advertising expenditure can be significantly higher as compared to that of Middle East. A key impediment to direct marketing in the region is lack of efficient postal service delivery. Also, comparatively low internet penetration rates (especially broadband) limits advertisers to go for online advertising.

The potential for this new marketing channel (mobile marketing) is enormous - the rapid spread of the mobile phone in the last 5 years is proof of that. The market penetration of the mobile phone is particularly strong in ME - over 100% penetrations in, UAE (120% - highest in the world), Bahrain (105%) and Kuwait (100%).

TNS Global Technology Insights (GTI) survey reveals that the convergence of the telecom and media industries is leading to new opportunities in infotainment-related value added services, including mobile marketing. This development could prove to be an effective way to invigorate the historically underdeveloped direct marketing industry in the region and open an attractive new option for advertisers.

ALWAYS WITH IT:


American Express gained fame with the slogan, 'don't leave home without it'. While this may have been ringing true 20 years ago, the sentiment now applies more to mobile phones than to credit cards - or even wallets.

Consumers are more likely to feel discomfort and inconvenience if they lost their mobile phone, than if they lost their wallet. In this region, mobile phones users regard their phones as extensions of their own body, and therefore subject to the rules of personal space that might govern face-to-face contact. Brand marketers are welcome for a conversation, but they did better pay close attention to the rules. 'Marketers must recognize the role that mobile phones play in the lives of consumers and recognize the need for permission to engage the consumers through this medium'.

Mobile Consumer's interaction with their messages can happen in different ways: First - 'Personal - just for me'. Second - majority may feel the need to act on a message right away & Finally, mobile marketing allows consumers to interact with a marketing campaign instantly.

This combination of attitudes and factors means marketers are presented with a powerful tool, if the content is relevant to the consumer. This is the key element and so far it seems that marketers have failed to capitalise on this. 'Marketers appear to be resorting to 'old world' broadcast approaches to mobile marketing. It seems many marketers have yet to make the mental shift from mobile phones as a one way channel to mobile phones as a device for dialogue that creates deeper, richer brand experiences'.

However, consumers can have irritation with unsolicited and unwanted messages - and dissatisfaction with companies that send them. This doesn't mean that consumers want to avoid all contact with brands and companies. In fact, most of the consumers welcome messages that are informative and useful.

ENGAGEMENT WITH YOUR BRAND:


Consumer understanding among mobile phone users indicate that consumers want mobile marketing to be a form of brand interaction. Discounts, coupons, information on products and savings, and downloads are all examples of mobile marketing that involve the customer with a brand in ways that are interactive.

Consumers also exhibit desire to engage in a more personal way with their favored brands. Creating the effect of exclusivity tends to encourage opt-in behaviour by consumers and lessen the impression of spam.

Establishing the 2 way dialogue is critical. 'Mobile marketing' has the potential to build better brand experiences than are available in other media. It is also safe to say that the more engaging experience consumers have with a brand the greater the probability that consumers will remain loyal to the brand.

TOUCH EVERYONE:


Consumer research in this region indicates that ME's mobile phone users are turning to higher end features more readily than ever, indicating high acceptance of new mobile technology and potential opportunities for mobile marketing campaigns.

Consider Downloading - TNS Global Technology Insight (GTI) survey reveals that 42% of the UAE consumers are currently downloading songs and 58% are downloading ring tones.

TNS GTI study also reveals that most popular types of downloads are ring tones, wallpaper/pictures, songs and games. Tying a marketing campaign into these areas could provide intrepid marketers with the means of getting consumers to invite a brand into his or her personal space. Such upward trend of mobile phone use in terms of features and applications is unlikely to fade out.

The marketing potential of the mobile phone will do more than simply provide a new medium for messages. Many mobile phone users don't even regard their phone as a medium, but as a communications tool, which yields interesting possibilities. 'Media-rich viral marketing will be another opportunity'. 'Consumer expect to be able to receive and distribute entertaining multi-media content by mobile phone in much the same way as they do email today.

The message for Mobile marketers is loud and clear, don't broadcast your message. Engage your consumers.

Notes and media contacts

For more information please contact:

Deepak Kudkilwar
Group Account Director
TNS Dubai
Email Deepak. Kudkilwar@tns-global.com

About the Global Technology Insight study

GTI 2006 surveyed 16,000 consumers in 29 countries during August 2006 to provide key insights into mobile content and applications, future technologies, brand power, co-branding and convergence.

About TNS:

TNS is a market information group:

• The world's largest provider of custom research and analysis
• A leader in political and social polling
• A major supplier of consumer panel, media intelligence and TV and radio audience measurement services.

TNS operates across a global network in over 70 countries, allowing us to provide internationally consistent, up-to-the-minute and high quality information and analysis.

The group's employees deliver innovative thinking and excellent service to local and multi-national clients worldwide. In the custom business, they combine in-depth sector knowledge with expertise in the areas of new product development, positioning and segmentation research, brand and advertising research and stakeholder management.

TNS' strategic goal is to be recognised as the global leader in delivering value added information and insights that help our clients to make more effective decisions.

TNS is the sixth sense of business.
Anne-Birte Stensgaard Anne-Birte Stensgaard, Senior News Editor
Tuesday, January 09 - 2007 at 08:40 UAE local time (GMT+4)

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This Article was updated on Wednesday, May 30 - 2007
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