innovative business model. to learn about their behavior. In Russia, for users of communications technology. Adding
Despite such successes, the medium has example, users who provide profiling data value is a guiding principle behind one of
yet to hit the mainstream. “The mobile ad- to Gigaphone are rewarded with advertiser- the highest profile mobile advertising suc-
vertising market needs two things in order funded services such as free call minutes, cesses - Blyk in Europe. Blyk targets 16- to
L
to be successful,” says Mr. Martin Scott, Sen- text messages or data bundles. This is all 24-year-olds and is funded by advertising.
ior Analyst at Analysys Mason. “Investment vital data for advertisers. It links young people with brands they like
from key players (such as operators, handset Despite the rewards, consumers remain and gives them free SMSs and minutes every
manufacturers, advertisers and brand own- sensitive to mobile advertising. There is a month without a contract.
ers); and an emphasis on maintaining a limit to consumer tolerance and insight is A similar service was launched recently in
high-quality, unobtrusive mobile advertising required to avoid overstepping the mark. the Philippines by SMART Communications.
experience for the consumer.” Mobile devices are highly personal; the Called U-mobile, the invitation-only service
threshold for intrusion is lower than with offers virtually free mobile services funded
Early preparation is vital
other advertising media. Early mistakes by advertising for 15-34 year olds.
Although emerging markets are Several other services are
dominated by prepaid subscribers, creating interest, with India
it is important to gather as much
The future of mobile
being one of the more active
customer data as possible. Creating
consumer profiles proves the reach
to media agencies to convince
them that the mobile channel is
attractive for a campaign. In Viet-
“
advertising is in the hands
markets. Examples here include
Ginger, which rewards users
of pioneering brands and
with payments for accepting
advertisers that are willing to advertisements; SMS 2.0 ad-
experiment,” says Martin Scott.
funded messaging from Bharti;
nam, all prepaid subscribers must and a location-based advertis-
register their name, date of birth, ing service launched by BSNL.
address and identity card with their mobile could hurt the adoption of mobile as a new For an industry the size of global com-
operator, or risk their service being cut off. advertising medium, either through a con- munications, such examples are rare though.
While in Vietnam this data gathering is sumer backlash or by restrictive legislation. “The industry has reached an impasse - many
obligatory and driven by the regulator for players are unwilling to invest in mobile ad-
purposes other than advertising, it does
Advertising must create
vertising until others have done so. The fu-
reveal a positive side effect that can be
consumer value
ture of mobile advertising, therefore, is in the
maximized. Elsewhere, operators could ask Making services useful to consumers is vital hands of pioneering brands and advertisers
for prepaid customer details and track usage and helps to create motivation among new that are willing to experiment,” says Scott. ■
Growth in Online Advertising
20%
15
U.S 14%
China 29%
10 Brazil 12%
Russia 45%
5
India 40%
0
2007 2008 2009 2010 2011
“We anticipate a 45 percent CAGR (compound Source Oliver Wyman/PWC: Busting the Myths
annual growth rate) in online advertising in About Emerging Markets, a white paper issued by
Russia from 2007 to 2011, a 40 percent CAGR management consulting firm Oliver Wyman avail-
in India in that same time frame, 29 percent in able at www.oliverwyman.com.
China, and 12 percent in Brazil.”
3/2008 Expanding Horizons 15
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