Mobile advertising – Is the picture really so rosy?*

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Mobile devices and the impressive opportunities brought by these tools are impacting marketing mix rules (4P: product, price, promotion, place & 4C: consumer, cost, communication and convenience) and have opened new paths for brands' engaging strategies.  Mobile marketing allow firms to provide targeted, customized, timely and location specific information.  It empowers them to take care of their customers' needs, giving them the mean to reach potential clients through the right channel, feeding database for future marketing activities.  Pricing has never been more dynamic and the customers' behavior so well known, what with brands capturing customers' information to build detailed profiles for their comfort and satisfaction.

econsultancy brings out informative data on the topic :

·         The number of smartphones in use globally is expected to hit 1.7 billion by 2013. [Source: Analysys Mason, July 2010]

·         Approximately 58% of mobile operators believe SMS and MMS-based messaging will be one of the top 3 forms of marketing/advertising by 2015. [Source: Airwide Solutions, November 2010]

·         61% of mobile operators predict coupons and vouchers to be the most widely accepted form of mobile marketing/advertising by 2015. [Source: Airwide Solutions, November 2010]

·         Women are 85% more likely to respond to mobile advertising than men. [Source: GfK /Limbo via ReadWriteWeb, February 2009]

So, when it comes to social media, let's prove, by numbers, the large expansion of this trend with e-Marketer predicting social network advertising revenues reaching US $ 10 billion in 2012, nearly double the US $ 5.5 billion forecast for 2011.

Still… Is the picture really so rosy? Does the reward justify the investment? Does the combination of (Social + Mobile) complement advertising and marketing? Renate Nyborg, Director Digital of Edelman, answers: "Not yet!"

It’s mainly due to market fragmentation, according to her. Indeed, there are so many mobile platforms that it is impossible to design a unique mobile marketing campaign that fits all standards.

However, Renate Nyborg is surmising on a bigger shift for marketing in the coming years quoting Shiv Singh, Global Head of Dogotal, PepsiCo: " In the future, no television advertisement will be self-contained narratives. They will be trailers into deeper branded digital experiences. When TV ads become teasers for digital experiences, the ROI on the investment  will improve significantly as the digital experience will stretch out the brand experiences beyond the 30-second clip."

*I was invited to attend Mobile World Congress 2012 by Orange Group to join their Social Media Team

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