The rise of web 2.0 in the public sphere means a new online world of interactive many-to-many communication. As technology progresses so do different ways of communication. Mobile internet has grown rapidly and is the fastest growing technology with more than 10 billion users in 2010 (Morgan Stanley, 2009) especially as data access and transfer speeds increase as well as more user-friendly interfaces being developed.
Consumers of all ages are becoming increasingly attached to their phones which they always keep on (White, R., 2008). Consumers carry their phones with them and use them even when consuming other media. This means that the reach for advertisers is potentially massive as there is a possibility of contacting consumers at any time of the day. 56% of Smartphone users frequently use their phones to access the internet (Ofcom, 2010) which gives advertisers even more opportunity to reach consumers not just through SMS and in-game adverts, which many users find intrusive (Wired, 2011) but also through banner adverts and brand websites.
As mobile advertising is relatively new many brands are unsure whether to get involved, especially in the current economic climate when budgets are tight and each media choice needs proof that it is the best. Measuring the success of a campaign is also a problem as many companies are unsure how to do this because of the fragmentation of information. Companies such as AdMob (2009) who sell mobile advertising space could help to track the progress of mobile campaigns much like other online campaigns are tracked, using impressions and click through rates. AdMob also work out ROI, for example in 2009 Land Rover wanted to drive people to their website and allocated 40% of their budget on mobile advertising which generated 70% of website traffic (AdMob 2009). Other brands incorporate mobile into their multi-media campaigns such as Wagamamma who are currently targeting university students by giving out free noodles with QR codes on the sides of the pots directing consumers to their mobile-friendly website. This is a good way for a brand to ease into the mobile market, integrating it into an existing campaign.
Many companies believe mobile advertising is definitely worth spending at least some of their budget on as it is the most specifically targeted media available. They can gather huge quantities of personal information such as demographics and interests through user’s online mobile profiles and the websites that are visited. With the rise of GPS tracking on mobile phones, advertisers can also target consumers according to their location; meaning consumers benefit relieving nearby offers relative to their personalities as well as the time of the day. For example, TGI Friday’s have targeted 18-35 year olds visiting the cinema. The mobile advert shows real time directions to the restaurant and users can find out more by clicking on the banner (Butcher, D., 2010).
A survey by JiWire (cited by Chong, S., 2010) explained that 53% of mobile Wi-Fi users would show their location to receive more targeted ads with a massive 38% saying they were likely to click through to find out more. This is a huge advantage for advertisers considering the average click through rate is 0.05% (Chong, S., 2010). This very specific targeted advertising means brands can reduce costs and increase the effectiveness of their adverts. Conversely, Dan Butcher (2010) from Mobile Marketing Magazine explains that other brands disagree with location based advertising. Apple have blocked location based in-app advertising so that their users don’t get spam whilst using their products, however this also means that consumers are missing out on potentially good offers relevant to them.
It is a difficult balance that advertisers need to accomplish. They need to ensure consumers don’t become irritated by mobile advertising, but also understand that consumers prefer “online, personal interaction with brands” (Marketing Charts, 2008) and mobile internet is a very good way of doing this. Brands can reach them through various online channels on their mobile, for example through apps and social networks as well as their own mobile-friendly websites. For this reason it is important that companies create mobile-friendly websites now so that they don’t get left behind. It is so easy for consumers to browse a website, click on a product and purchase it in a few minutes. EBay has taken advantage of this by creating a shopping app as well as teaming up with PayPal offering an easy, seamless way to pay.
The main concern with mobile advertising is privacy and the amount of personal information being shared with brands, especially GPS location. Goodin (2011) discussed this in online tech publication ‘The Register’ explaining how internet radio service Pandora has been providing advertising services AdMarvel and AdMob with incredibly detailed personal data. Demographic information including birth dates were collected as well as geographic information from consumers mobile GPS and each user’s mobile IP address. These services could then be used to directly target each person who fits a specific persona.
It is extremely difficult to regulate the internet even though from March 2011 the ASA began to regulate brands websites and advertising on social network sites. This is a start and will therefore affect mobile internet advertising as content is likely to be similar. Online privacy laws state that a website has to inform a user before they sign up what data will be collected, what it will be used for, who they will share it with, if tracking cookies are used by the website and permission to send offers etc. (Adlex Solicitors, 2011). There needs to be a way of opting in or out, for example Facebook has added a privacy setting to their mobile site enabling consumers to control how Facebook uses their information, for example in relation to emails as well as users being able to opt-out of being linked to adverts that will be shown on their profiles (Melanson, M., 2010).
As the modern world progresses so the technology that it uses advances. Mobile advertising regulations are always trying to keep up with technology (MMA, 2007) but what is clear is that advertisers need to make their brand mobile-friendly so they can be interactive with consumers at any time of the day. Companies can also take advantage of the great amount of user information available to target specific groups of people as long as they are seen to be respectful with user’s personal information. Providing they are made aware about what will be done with their information before companies use it, mobile advertising can benefit everyone.
Consumers of all ages are becoming increasingly attached to their phones which they always keep on (White, R., 2008). Consumers carry their phones with them and use them even when consuming other media. This means that the reach for advertisers is potentially massive as there is a possibility of contacting consumers at any time of the day. 56% of Smartphone users frequently use their phones to access the internet (Ofcom, 2010) which gives advertisers even more opportunity to reach consumers not just through SMS and in-game adverts, which many users find intrusive (Wired, 2011) but also through banner adverts and brand websites.
As mobile advertising is relatively new many brands are unsure whether to get involved, especially in the current economic climate when budgets are tight and each media choice needs proof that it is the best. Measuring the success of a campaign is also a problem as many companies are unsure how to do this because of the fragmentation of information. Companies such as AdMob (2009) who sell mobile advertising space could help to track the progress of mobile campaigns much like other online campaigns are tracked, using impressions and click through rates. AdMob also work out ROI, for example in 2009 Land Rover wanted to drive people to their website and allocated 40% of their budget on mobile advertising which generated 70% of website traffic (AdMob 2009). Other brands incorporate mobile into their multi-media campaigns such as Wagamamma who are currently targeting university students by giving out free noodles with QR codes on the sides of the pots directing consumers to their mobile-friendly website. This is a good way for a brand to ease into the mobile market, integrating it into an existing campaign.
Many companies believe mobile advertising is definitely worth spending at least some of their budget on as it is the most specifically targeted media available. They can gather huge quantities of personal information such as demographics and interests through user’s online mobile profiles and the websites that are visited. With the rise of GPS tracking on mobile phones, advertisers can also target consumers according to their location; meaning consumers benefit relieving nearby offers relative to their personalities as well as the time of the day. For example, TGI Friday’s have targeted 18-35 year olds visiting the cinema. The mobile advert shows real time directions to the restaurant and users can find out more by clicking on the banner (Butcher, D., 2010).
A survey by JiWire (cited by Chong, S., 2010) explained that 53% of mobile Wi-Fi users would show their location to receive more targeted ads with a massive 38% saying they were likely to click through to find out more. This is a huge advantage for advertisers considering the average click through rate is 0.05% (Chong, S., 2010). This very specific targeted advertising means brands can reduce costs and increase the effectiveness of their adverts. Conversely, Dan Butcher (2010) from Mobile Marketing Magazine explains that other brands disagree with location based advertising. Apple have blocked location based in-app advertising so that their users don’t get spam whilst using their products, however this also means that consumers are missing out on potentially good offers relevant to them.
It is a difficult balance that advertisers need to accomplish. They need to ensure consumers don’t become irritated by mobile advertising, but also understand that consumers prefer “online, personal interaction with brands” (Marketing Charts, 2008) and mobile internet is a very good way of doing this. Brands can reach them through various online channels on their mobile, for example through apps and social networks as well as their own mobile-friendly websites. For this reason it is important that companies create mobile-friendly websites now so that they don’t get left behind. It is so easy for consumers to browse a website, click on a product and purchase it in a few minutes. EBay has taken advantage of this by creating a shopping app as well as teaming up with PayPal offering an easy, seamless way to pay.
The main concern with mobile advertising is privacy and the amount of personal information being shared with brands, especially GPS location. Goodin (2011) discussed this in online tech publication ‘The Register’ explaining how internet radio service Pandora has been providing advertising services AdMarvel and AdMob with incredibly detailed personal data. Demographic information including birth dates were collected as well as geographic information from consumers mobile GPS and each user’s mobile IP address. These services could then be used to directly target each person who fits a specific persona.
It is extremely difficult to regulate the internet even though from March 2011 the ASA began to regulate brands websites and advertising on social network sites. This is a start and will therefore affect mobile internet advertising as content is likely to be similar. Online privacy laws state that a website has to inform a user before they sign up what data will be collected, what it will be used for, who they will share it with, if tracking cookies are used by the website and permission to send offers etc. (Adlex Solicitors, 2011). There needs to be a way of opting in or out, for example Facebook has added a privacy setting to their mobile site enabling consumers to control how Facebook uses their information, for example in relation to emails as well as users being able to opt-out of being linked to adverts that will be shown on their profiles (Melanson, M., 2010).
As the modern world progresses so the technology that it uses advances. Mobile advertising regulations are always trying to keep up with technology (MMA, 2007) but what is clear is that advertisers need to make their brand mobile-friendly so they can be interactive with consumers at any time of the day. Companies can also take advantage of the great amount of user information available to target specific groups of people as long as they are seen to be respectful with user’s personal information. Providing they are made aware about what will be done with their information before companies use it, mobile advertising can benefit everyone.
