Currently, the most common form of mobile advertising uses five-digit short codes found in print advertisements, TV shows and commercials. Consumers input the codes into their mobile phones to interact with the advertisement and possibly receive something in return. Consumers get something for their effort and advertisers get instant feedback.
Short codes encourage self-selection (that is, the consumer decides) and interest to know more about a brand or program, which costs large sums to do with shotgun marketing.
For example, Dove soap used a short code in its "real beauty" ad campaign last year. Customers dialled a code and voted on whether an elderly woman on billboards was "wrinkled" or "wonderful."
In the first year that short codes were issued, 150 US companies licensed more than 450 five-digit codes. In 2005, that number was six times greater according to CTIA, which licenses short codes.
Research has shown that 36 percent of consumers are interested in participating in mobile campaigns, but marketers need to ensure they give consumers value for their participation rather than risk alienating them.
One means of bringing advertising to consumers is by offering sponsored services. For example, the Weather Channel offers weather reports to mobiles with banner ads for American Express.
Another example is a service provided by Epicurious.com, a culinary website which sends consumers aggregated ingredient lists for recipes directly to their mobiles to use as shopping lists when buying groceries. Advertisers can promote their brands in recipes that contain their product, with either a banner on a phone's web screen or a button to click for more information.
MobiTV, which provides live TV streams to mobile phones, has launched a platform to sell advertising into its service. The first advertisers on the platform are Jeep and Axe, which are already showing TV spots.
What has many in the marketing and advertising industries really excited is the possibility of using global positioning systems (GPS), found in many phones, to directly target consumers at precise locations.
GPS allows marketers to pinpoint the location of retailers and possible consumers, and bring them together.
Some in the industry see ads on mobile devices as the silver bullet in advertising because it brings together time, place and consumer information. And unlike television and radio, mobile devices are almost always on and with the consumer.
Despite its great potential, marketers and telecoms operators are cautious about offering direct location-based advertising. They fear consumers may find it too intrusive and are therefore introducing the services slowly. But there are ways to get around this. Solutions-provider Ericsson, for instance, recommends that mobile advertising is offered on subscription basis and as part of a CRM activity, as opposed to mass-marketing.
Verison Wireless and Sprint Nextel will be testing mobile ads in early 2006 but have not made any plans to fully deploy the service.
In some countries, such as the US, there are legal limitations to using GPS information without consumer consent. One means of getting around this is by offering incentives such as reduced phone rates or rebates in exchange for receiving location-based advertising.
According to some industry analysts, the size of the mobile phone advertising market is expected to grow to USD 1.26 billion by 2009, from USD 45 million in 2005.
With such potential, marketers and operators are eager to explore the possibilities mobile advertising can offer. Engaging consumers and offering value for participation can result in a bonanza for marketers and operators alike.
