http://www.shosteck.com/studies/mobile_advertising.htm
But here's the meat of it.
"The mobile trinity - location, personalization, and timeliness - make mobile devices a marketer’s dream. The adoption of the mobile channel as a means of influencing purchasing behavior and perceptions for non-telecoms products and services is not a new phenomenon. Major brand owners such as Coca Cola, Unilever and Cadbury’s began experimenting with SMS and WAP based marketing campaigns three or four years ago.
However, the confluence of a number of technological and market trends in the last year has led to dramatically increased awareness and interest in mobile marketing and advertising amongst advertising agencies and brand owners. These trends include the falling cost, availability and ease of use of multimedia handsets; increasing usage and interest in mobile multimedia services, especially mobile video and TV; and growth in off-portal mobile services and content. Indeed, mobile has become the newest and fastest growing business-to-consumer communication channel, and it seems everyone is trying it.
For marketers, mobile marketing and advertising has great promise – it combines the wide reach of television with the precision of direct marketing and the tracking potential of the Internet. It enables marketers to create permission-based marketing campaigns rapidly and cost-effectively in the most personal of all media: mobile.
For mobile operators, mobile marketing and advertising offers an opportunity to engage with a new set of enterprise customers (brands and advertising agencies), and develop a new and potentially lucrative revenue stream to complement their own content services.
For consumers, mobile marketing and advertising may provide free or cheap entertainment on their phones and a convenient way to interact with the brands they like.
In the Shosteck Group’s latest study we analyze the emerging market for mobile marketing and advertising. In particular we examine the motives of the major players as they each position themselves to exploit this new opportunity, and assess whether it is a real opportunity or possibly a threat to mobile operator business models.
Our research indicates that mobile advertising is a huge opportunity with the potential to generate in excess of $10 billion in annual revenues by 2010. But the development of a robust and profitable mobile marketing and advertising market will only be possible if the major players – operators, handset vendors, content providers and Internet portals –collaborate. However, the extent of this collaboration may be limited as the motivations and objectives of the key players may conflict.
For example, the study looks closely at how mobile advertising may prove to be an important new business model for mobile operators and deliver new revenue streams to counter the revenue drain that the VoIP and off-portal content trends threaten. Conversely, the study also assesses the potential strategies of the Internet Portals, current leaders in on-line advertising, who may exploit mobile as just another channel for their existing on-line business models, thus driving mobile operators towards becoming merely access providers and keeping most of the spoils of mobile advertising to themselves.
We will therefore consider the critical question: will mobile advertising be the salvation of the mobile operator’s profitable business model in light of these trends or will it be another nail in its coffin?
Some of the issues this study addresses are:
* What are the different mechanisms through which the mobile channel can be used for marketing and advertising?
* What is the difference between mobile marketing and mobile advertising?
* How are marketers, merchants and brands using the mobile channel today, and how might this change in the future?
* How will mobile advertising differ from advertising on TV or on the Internet?
* How will mobile advertising affect current mobile business models?
* What trends are driving and enabling growth of this market, and what could prevent it from reaching its potential?
* What implications does this trend have for mobile operators and their customers?
* Will end-users tolerate advertising on their mobile devices?
* How fast and far will the mobile advertising market grow?
* How much of future advertising spend will go through the mobile channel?
* Will mobile advertising which encourages end-users to stream video and other high bandwidth services require additional network investment which will see little return on that investment?"
But here's the meat of it.
"The mobile trinity - location, personalization, and timeliness - make mobile devices a marketer’s dream. The adoption of the mobile channel as a means of influencing purchasing behavior and perceptions for non-telecoms products and services is not a new phenomenon. Major brand owners such as Coca Cola, Unilever and Cadbury’s began experimenting with SMS and WAP based marketing campaigns three or four years ago.
However, the confluence of a number of technological and market trends in the last year has led to dramatically increased awareness and interest in mobile marketing and advertising amongst advertising agencies and brand owners. These trends include the falling cost, availability and ease of use of multimedia handsets; increasing usage and interest in mobile multimedia services, especially mobile video and TV; and growth in off-portal mobile services and content. Indeed, mobile has become the newest and fastest growing business-to-consumer communication channel, and it seems everyone is trying it.
For marketers, mobile marketing and advertising has great promise – it combines the wide reach of television with the precision of direct marketing and the tracking potential of the Internet. It enables marketers to create permission-based marketing campaigns rapidly and cost-effectively in the most personal of all media: mobile.
For mobile operators, mobile marketing and advertising offers an opportunity to engage with a new set of enterprise customers (brands and advertising agencies), and develop a new and potentially lucrative revenue stream to complement their own content services.
For consumers, mobile marketing and advertising may provide free or cheap entertainment on their phones and a convenient way to interact with the brands they like.
In the Shosteck Group’s latest study we analyze the emerging market for mobile marketing and advertising. In particular we examine the motives of the major players as they each position themselves to exploit this new opportunity, and assess whether it is a real opportunity or possibly a threat to mobile operator business models.
Our research indicates that mobile advertising is a huge opportunity with the potential to generate in excess of $10 billion in annual revenues by 2010. But the development of a robust and profitable mobile marketing and advertising market will only be possible if the major players – operators, handset vendors, content providers and Internet portals –collaborate. However, the extent of this collaboration may be limited as the motivations and objectives of the key players may conflict.
For example, the study looks closely at how mobile advertising may prove to be an important new business model for mobile operators and deliver new revenue streams to counter the revenue drain that the VoIP and off-portal content trends threaten. Conversely, the study also assesses the potential strategies of the Internet Portals, current leaders in on-line advertising, who may exploit mobile as just another channel for their existing on-line business models, thus driving mobile operators towards becoming merely access providers and keeping most of the spoils of mobile advertising to themselves.
We will therefore consider the critical question: will mobile advertising be the salvation of the mobile operator’s profitable business model in light of these trends or will it be another nail in its coffin?
Some of the issues this study addresses are:
* What are the different mechanisms through which the mobile channel can be used for marketing and advertising?
* What is the difference between mobile marketing and mobile advertising?
* How are marketers, merchants and brands using the mobile channel today, and how might this change in the future?
* How will mobile advertising differ from advertising on TV or on the Internet?
* How will mobile advertising affect current mobile business models?
* What trends are driving and enabling growth of this market, and what could prevent it from reaching its potential?
* What implications does this trend have for mobile operators and their customers?
* Will end-users tolerate advertising on their mobile devices?
* How fast and far will the mobile advertising market grow?
* How much of future advertising spend will go through the mobile channel?
* Will mobile advertising which encourages end-users to stream video and other high bandwidth services require additional network investment which will see little return on that investment?"
