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The mobile advertising market is about to catch fire. As the number of web-enabled cell phones, PDAs and other portable devices soars over the next few years, businesses will be hot on the trail of their owners. But ads won't be force-fed to the wireless crowd. Instead, they'll be accessible via on-screen menus, and companies will use enticements such as discounts or prizes to get people to view them.
Sprint Nextel, Verizon Wireless, AT&T and T-Mobile all have plans to deliver commercials to wireless gadgets nationwide. Meanwhile, a host of firms are readying to help businesses design and launch their mobile pitches. Small advertisers in need of a helping hand can turn to Ingenio, iLoop Mobile, Rhythm New Media, AdMob or Third Screen, among others. Their assistance is likely to cost anything from several hundred dollars to six figures, depending on the technical and graphic complexity of the ad and the reach and duration of the campaign.
Search firms such as Google, Yahoo, Microsoft and AOL also are getting in the act with hopes of convincing wireless consumers to buy stuff through their sites. The search companies are rapidly snapping up other firms that develop technology for mobile ads. "Mobile advertising is becoming a huge battleground. [The search firms] know that whoever takes control of this next great consumer interface stands to make a boatload of money," says John du Pre Gauntt, a senior analyst with research firm eMarketer.
The mobile ad market is still in its early days, but there's already solid evidence that consumers respond well to such ads. Advertisers are able to monitor the results of their mobile commercials hour by hour so they can figure out what works and what doesn't, and make adjustments to campaigns accordingly to boost response rates.
Wireless devices will be the preferred access point to younger shoppers. For new, the biggest users are Web-enabled phones are people in the 13- to 25-year-old segment, even though they have relatively less disposable income to throw around. Mobile advertisers also will zero in on the 26- to 47-year-old bracket, also know as the "Blackberry Tribe," who are likely to be a lucrative market.
Improved cell phone reception will give the mobile marketplace another leg up after the Federal Communications Commission makes more airwaves available to wireless operators. The FCC plans to auction off the UHF spectrum that televisions stations will cede after they switch all transmissions to digital from analog by February 2009. Signals will reach further into rural areas and cover 75% of U.S. territory, up from 60% today. Some 99% of the population will have wireless access.
With more airwaves freed up, cell phone towers can be spaced farther apart and handle more traffic. Improved technology will also make it easier to use mobile devices in parking garages, elevators and tunnels.
Of course, mobile ads aren't right for every company. This type of campaign probably won't generate many additional sales for vendors of big ticket items such as cars, in-home theater systems and large home appliances. Same goes for complicated products such as financial services or travel packages. Consumers need more informational give-and-take with these types of items than they can typically get while punching keys on their wireless devices.
Michael Doan contributed to this story.
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POSTED BY: Arnold Knack (June 21, 2007 12:32 PM)
I refuse to accept, or look at, internet or other media advertising on my cell phone as long as the cellular companies charge the exorbitant rates they do for access. Pay to watch a commercial? You're kidding!
POSTED BY: madmilker (June 21, 2007 10:58 PM)
anything for a dollar....it's all about greed........nothing but greed!
POSTED BY: Jim Ostroff (June 25, 2007 05:37 PM)
Hi, This is Jim Ostroff. As mentioned in the article, advertisers will offer incentives for consumers to view ads, such as free music and ringtone downloads, discount offers, etc. Two other key points: Advertisers likely will subsidize access, requiring no consumer subscription fee. The lion's share of cell phone advertising will be keyed to online search, just as it is now with PC/Mac systems. Consumers will have the option of "zapping" ads on their phones, just as they currently do when looking online at their home or office.
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