U.S. leads in mobile Internet penetration: Study

In case you hear people say or may have said yourself, "the U.S. is so far behind in terms of mobile"...

U.S. leads in mobile Internet penetration: Study
By Giselle Abramovich from MobileMarketer.com
July 10, 2008

WAPping numbers
Although the United States lags other markets in terms of mobile, it is the leader in mobile Internet penetration, with 40 million subscribers, or 15.6 percent of users, accessing the Web from their handsets.
This was the key finding of a study by Nielsen Mobile that examined the global mobile Internet market. Of the 16 countries tracked, the U.S. leads in mobile Internet penetration, followed by Britain with 12.9 percent and Italy at 11.9 percent.

“A number of moving pieces have come together to bring mobile Internet a critical mass,” said Nic Covey, Chicago-based director of insights at Nielsen Mobile.

“Factors such as devices, network speeds, audience interest and content have arrived at a point where mobile Internet marketing should be a very real part of the consideration set for media planners,” he said.

Critical mass means mobile Internet now delivers reach comparable to other major marketing mediums such as broadcast television shows and major print publications, Mr. Covey said.
Nielsen Mobile’s study found that Motorola Razr phones are the most-used handsets among U.S. mobile Internet users, while Nokia handsets lead the market in Europe and Asia.
In addition, unlimited data packages are increasingly popular with mobile Internet users. An estimated 14 percent of U.S. subscribers access the mobile Internet with an unlimited data package and 50 percent of data users said they prefer the unlimited pricing model.
The study also found that 3G networks drive user satisfaction with mobile Internet. These networks improve data throughput speeds as much as six times, compared with 2G and 2.5G networks.

“I’m glad we’re able to quantify the extent to which 3G networks improve the mobile Internet experience,” Mr. Covey said.

“Our research shows that the network speed is the leading driver of satisfaction with the mobile Internet, so it’s encouraging to see results from our drive-testing around the U.S. that show data points throughputs that are six times faster with 3G,” he said.

Advertising is becoming an accepted and common part of the mobile Internet experience. In fact, 26 percent of mobile Internet users view ads while using the mobile Internet.
Additionally, mobile Internet users are more receptive to mobile advertising than average data users.

Among other findings, Nielsen Mobile identified the top 10 U.S. mobile Web sites as of May 2008. Yahoo Mail, with 14 million unique monthly visitors, is the leading mobile Internet channel.

“The [mobile] market is still emerging and consumers are just warming to the idea of mobile marketing,” Mr. Covey said. “Encouragingly, consumers expect to see more of it in the future. They are open to advertising as a tradeoff for things and mobile Internet users, compared to all users, are more likely to be open to mobile advertising.

“Still, it can’t be overstated that marketers need to respect the very personal nature of this medium while also seeking new, value-added ways to engage with consumers over their phones,” he said.

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Here's the source: http://www.mobilemarketer.com/cms/news/research/1301.html They have great articles to keep up on all things mobile.

(P.S. I'll be waiting in line for a 3G iPhone tomorrow morning, who's with me?)

CPM, CPC, CPA and now CPmC

What is CPmC? I'm glad you asked.

Here's a quick guide of how an advertiser can buy advertising today:

CPM - Cost per Thousand

• buying based on impressions...not really effective in the web 2.0 world, it's old school.

CPC - Cost per Click

• this is what made Google so valuable

CPA - Cost per Acquisition

• higher rate, but advertiser is only charged when they receive a ROI.

And now, drum roll please...now introducing:

CPmC - Cost per Mobile Click...ta-da!

What I'm defining as a mobile click is any interaction that originates from a consumer mobile device. It could be a text message they see in response to a billboard or radio spot, it could be a mobile web URL typed in at the end of a 30 second TV spot, it could be a call into an Interactive Voice Response (IVR) number, or it could be a download of a mobile application.

What I've found in my journey to educate advertisers, marketers, mobile application service providers and carriers in mobile marketing is that the ecosystem needs a common language to speak. After attending the last Mobile Marketing Association (MMA) conference in NYC, we realized that not only do we need a common language, but we also need ad standards and technologies. We mobilistas know that the industry needs work, and the MMA is, as we speak, cranking on such standards within their Special Interest Group Committees. God bless the MMA. Sorry for the tangent...back to the topic.

Although this CPmC model is not currently in use, I'm suggesting that advertisers and publishers consider this new sales model for skeptical advertisers of the mobile channel. It may help you MASPs sell mobile advertising to them. Mobilistas know the channel works, let's just prove it to the entertainment and CPG brands by offering this ad buy opportunity. At the end of the day, the CPmC equates to a win-win for everyone.

Comments, criticisms? Let me know david.ip@mobilemarketingforbrands.com

Ciao...

Mastering the mobile maze

by Graham Staplehurst

Everyone’s talking about mobile marketing as the next big thing. But despite the panoply of available options, the desired ROI is unlikely to be achieved without careful consideration and management.

Success depends not just on knowing the range of mobile options, but on your ability to match these options to your brand’s objectives. Mobile marketing, though still in its infancy, already encompasses a wide range of options that can suit many different marketing needs. The ground rules have already been established: get permission from the consumer, and offer something that’s relevant, valuable, or useful. But within these boundaries, mobile can be used effectively in a number of ways. Mobile applications need not be limited to direct response (though they can excel at such tasks); they can serve other, less obvious functions as well.

An advertiser seeking the best mobile option first needs to consider what role
mobile is meant to play in a campaign. Just like TV, print, and online advertising, mobile can be used to motivate a call to action, deliver information, or build brands. The table below lays out a number of mobile options against these three functions.

What’s the main role for mobile in my campaign?

Drive consumer action
• SMS promotional response
• Mobile search
• Push messaging
• Proximity marketing
• Mobile WAP site

Deliver information or news
• Mobile Internet display
• Mobile search
• Push messaging
• Mobile WAP site

Build consumer relationships
• Sponsored content
• Advergaming
• Viral MMS
• Downloaded applications
• Mobile WAP site

Driving Consumer Action

One of the early selling points of mobile advertising was the possibility of generating immediate response from consumers, at any time, from any location. Though this is a real strength of the medium, advertisers should proceed with caution. Having experienced e-mail spam (though not from many reputable brands), consumers fear an onslaught of indiscriminate mobile spam. Sending messages directly to a person’s mobile phone requires clear “opt in” permission.

One way to gain this permission is to pull people in through other media. For example, one simple route to a dialogue with customers is through “Text to win” promotions. These can work off of packaging or other major media, such as outdoor, print, or TV. The most successful promotions garner millions of responses and can help build large databases for secondary marketing.

As the mobile Internet develops beyond the initial constraints placed by the networks, search functions are growing in importance. Mobile search is likely to be the fastest-growing type of mobile marketing activity over the next few years. A Jupiter Research report in December 2007 found that just 4 percent of the mobile audience in Europe was actively using mobile search. But growing mobile Internet usage is expected to create an explosion in the next five years: iResearch estimates that there will soon be over 100 million mobile search users in China.

Although Google and Yahoo! dominate at the moment, some commentators feel that more specialized offers will evolve. As a recent Nokia thought leadership forum in the UK noted, “Search on the mobile is not the same as on the PC. ” Advertisers would do well to bear this in mind. The phone screen can display far fewer sponsored links, and consumers will be even less willing to expend time and effort on searches than they are at home.

The possibility of adding a location-based element to contextual search is tantalizing — but mobile technology still has to improve before this becomes an everyday reality. Proximity marketing (using technology like Bluetooth to transmit a message to a particular person or group in a specific location) has yet to be effectively exploited, though opportunities present themselves. For example, sponsorships could be activated more effectively by transmitting a message or downloadable free content to people experiencing the sponsored event.

Delivering News and Information

The elements of push messaging and mobile search are not limited to direct response purposes; they can also be used to deliver information. But whatever the objective, push messaging must always be approached cautiously. Brand owners can use their own customer lists or those of partners, but should take care to target messages in terms of relevance and interest.

In exchange for spending time with a brand, consumers want something that is personally useful or relevant. And yet, mobile operators have a long way to go in providing the highly specific targeting many advertisers wish for. For now, advertisers have to think creatively about reaching their audience.

Land Rover guessed that owners of smartphones (like Blackberry, Palm Treo and the new iPhone) were likely to belong to its affluent target group for the Range Rover Sport, and so used MMS to push a demo video introducing the vehicle, along with tools like a postcode-based store locator and a click-to-dial link to book a test drive, to the devices. This example clearly illustrates the use of simple messaging that requires minimum effort from the customer. Land Rover used the mobile device itself as a basis for targeting. Timing was used by travel company Expedia, guided by mobile agency Enpocket. Expedia sent messages about holiday bargains to consumers during their lunch breaks on Thursdays and Fridays, choosing this time because the target customers had both the time and the resources to browse the deals available. By retaining the SMS message, a recipient could readily access the URL again in the future.

Mobile Internet advertising is much like other forms of Internet display advertising, but because it’s so much smaller, there are real constraints on creativity. And because the speed of the mobile Internet is still well behind home broadband, ads on the mobile may be much slower to load. Subscribers will not be happy if your ads cost them money.

Therefore, the first step for advertisers is ensuring that their own Web sites are mobile-enabled. In January of this year in the United States, ESPN reported that the
mobile version of its National Football League content site was already matching the PC version with almost 5 million visits over 24 hours.

The next step is to design banners and skyscraper ads that work as they do in a PC environment. These can be pure brand messages or they may contain click-throughs, but they must be simple enough for the typical mobile screen. In testing a range of mobile Internet campaigns, Dynamic Logic has observed typical uplifts of around 20 percent in ad awareness, 5 to 10 percent in brand and message awareness, and around 5 percent in brand favorability and purchase intent. These all represent good ROI for the media investment.

Currently, click-through rates (CTRs) are typically higher for ads on the mobile Internet, but we don’t expect this to continue. As the number of advertisers grows and the novelty value wears off, CTRs are likely to decline toward online levels. Like TV, print and online, mobile advertising can serve a variety of purposes. It can motivate a call to action, deliver information, or build brands.

Brand Building and Consumer Relationships

While mobile capabilities are clearly well suited to pushing information and encouraging direct response, the medium also has the potential to support brand building and strengthen consumer relationships. However, at this point in time, mobile (and the Internet) will accomplish this in a different way than TV. Traditional video ads are less likely to exert a major influence, but opportunities abound for sponsoring content and services that consumers will appreciate.

For example, both global and local brands pay for the pre- and post-roll advertising that supports the mobile video channels provided by Swisscom for its customers. This creates a win-win-win for operator, consumer and brand. According to Ad Infuse, ad recall for these ads averaged 7 percent, but ranged as high as 29 percent. This clearly shows that effective creative is as important for mobile advertising as for any other channel of communication.

Other sponsored content includes music and mobile applications. In Singapore, Johnnie Walker is launching a mobile application called “Jennie” for download. Jennie is a digital personal assistant who can find bars, help organize your social calendar and even find you a taxi at the end of an evening out. In the UK, Lynx (Axe in other countries) created award-winning downloadable applications to help young men in the seduction game.

Mobile gaming, which until now has been seriously constrained by cost, is another type of content that advertisers can subsidize. Gamers really appreciate this and are clearly willing to accept advertising as a trade-off for their entertainment. In-game advertising of various types also offers possibilities, though these are far more limited on the mobile screen than on the PC. Our own studies for network operators have already proven that the incremental gains in brand awareness, brand interest and brand associations generated by in-game advertising are on par with those produced by other media.

Like online, mobile can be used to encourage consumers to connect around shared interests. A brand can simply facilitate this, or it can participate in the community to varying degrees. As part of the relaunch of their Pureness line, cosmetics manufacturer Shiseido targeted 18-to-25-year-old women to develop a beauty community called the Puretext Club. This text-based service offered skincare advice, tips and free samples.

Over 14,000 women joined in the first year (2002). The “return to counter” response was 14 percent among club members, and Shiseido claimed a 260 percent increase in sales.

Mobile Web: The Glue that Holds an Integrated Mobile Campaign Together

Spanning the full range of mobile advertising roles is one particular application: the custom WAP site. Designed expressly with mobile functionality in mind, these sites can provide interesting and useful content while handling various types of information needs and facilitating consumer response. Not only do these sites create “stickiness” and real engagement, but they are also essential for collecting customer profile data and creating databases.

Working on behalf of the UK’s Royal Air Force (RAF), Incentivated designed a mobile WAP site to highlight more than 60 different career opportunities for a recruitment campaign. People responded by sending a mobile text (SMS) to a number provided in TV and magazine ads. After receiving an SMS reply with a link to the RAF Web site, potential recruits could access the career information of interest with just a single click. This element of the highly targeted campaign generated 10 percent of all leads at a cost of only U.S. $14 per lead.

Sites like this, which help consumers find information quickly and easily, are invaluable for mobile marketing because the evidence shows that mobile behavior tends to be more single-minded than PC browsing behavior. There’s no opportunity for multitasking and switching between windows on a mobile, so marketing needs to aid the consumer by quickly and easily delivering tools, resources, and answers.

Conclusion

Mobile marketing is still developing, and no doubt many more technological innovations are in the offing. But the points that follow should be useful in navigating both current and future challenges.
• Be relevant. Be sure you can match your brand to the mobile needs of the customer.
• Keep the campaign simple from the consumer’s point of view. Don’t cram too many messages in or ask for unnecessary actions on the user’s part.
• Working creatively within the medium, give consumers something that’s useful or rewarding. Help them achieve their goals. Give them free content.
• Optimize your campaign around the unique attributes of mobile: ubiquity, immediacy of response, and personal engagement. Ally mobile elements to every other medium you use.
• Think about building a community or tapping into an existing one. Use aspects of social networking to create a role for your brand in people’s lives and get your brand talked about.

The future of mobile marketing will certainly see new developments and ideas, creating new opportunities for advertisers. The year 2008 is a real opportunity
to “test and trial” mobile marketing before it becomes truly mainstream Mobile WAP sites, designed expressly with mobile functionality in mind, can provide interesting and useful content while creating “stickiness” and real engagement.

To read more this article in its entirety, click here.

Creating Mobile Web Sites for Mass Market (aka simple) Phones

The Web has revolutionized how we interact with and publish information, but up to now it has only been accessible to people with desktop devices. Web-enabled mobile phones now extend the expected global reach of the Web to three times that of today, touching one-third of the population1 of the planet.

The goal of this guide is to provide developers and site owners with enough knowledge to get started with the creation of Web content for mobile users. It covers the benefits of publishing for mobile users, how mobile delivery differs from desktop delivery and how to design for the mobile context.

Before now, Web publishing for mobile users has been something of a mystery, partly because of a lack of information. This guide forms part of dotMobi’s efforts to change this by providing authoritative and comprehensive guides, best practices and methods and other material describing how to publish for mobile.

The guide aims to provide an introduction for those not familiar with the Mobile Web. It contains techniques and information required to create a basic site that will work well on the majority of phones. It is not an encyclopedia of past and present technologies and techniques, but provides a place to start. Although using a .mobi domain is recommended as a clear way to indicate to the user that a site is mobile-friendly, the advice presented here applies to any mobile site.

Click here for the entire whitepaper.

Ten Mistakes in Mobile Web Marketing

Here's a great article and whitepaper written Claire O' Gorman from the dot mobi group.

The dotMobi marketing arm - mobiThinking has just launched a free eBook called Ten Mistakes in Mobile Web Marketing. Even though the title of the eBook is clearly aimed at marketers it is worth a read for everyone. The ideas behind good mobile web sites are simple but the execution isn't always so easy. Many of us are still thinking of mobile web sites as small versions of their PC-counterparts. That's simply the wrong approach. This and other pitfalls in mobile web marketing have been reviewed to produce this new, free eBook - Ten Mistakes in Mobile Web Marketing.

Brands, if you like SMS, you'll love MMS...

Here's a great article posted by Russell Buckley from MobHappy. Please click go here for the original post.

The Ip POV: I believe that Multimedia Messaging Service (MMS) will thrive for consumer and entertainment brands.

Let me be honest here, MMS programs have been very lame to date. Of the handful of MMS programs executed thus far, the majority have been used for delivering ringtones and wallpapers instead of a true "multimedia" experience. Brands should know that MMS can be used for alot more than just simple content.

My inner techie is forcing me to tell you that there is a programming language called SMIL (pronounced: smile) that can be used to develop robust experiences via MMS. So what the heck does this translate to for the marketer? I'm glad you asked.

Well my friend, imagine you're interested in buying the latest BMW X6. It just so happens you're at the airport and come across one of their many well placed billboards. You see a mobile call to action and decide to text in to receive more information. Instead of getting a text message and a WAP link to their mobile site, you get an MMS message on your phone. It looks just like a text message and works pretty much the same way, but when you open the message, you get a complete commercial experience on the phone, complete with drive inspiring music, images of the X6 in different colors, a video showcasing the car in action, and product specs via text, all within a single MMS message! To add the icing on the cake, we accomplished all this without having the user download, navigate or search anything. Sounds good doesn't it?

The main reason I believe MMS will thrive is because it is already built into the majority of mobile devices. Other rich media experiences on the mobile device require navigating to a mobile site or downloading a mobile application (It's not so easy if you've never done it before). From a brand and agency standpoint, downloadable applications and mobile websites also cost a heck of a lot because you have to port to all the different handsets out there. With MMS, the carriers figure out all those technical details.

Ok, so there are alot of people from the tech world that don't believe in MMS so I'll play the Devil's advocate here: Some believe MMS will be outdated because delivering content via the mobile web (aka SMS WAP Push) is cheaper.

*Jargon Alert: SMS WAP Push is when a text message is delivered to the user with a mobile web link to the content they requested. Users have to click on the link in order to download the content.

It's true, the SMS delivered may be cheaper, but clicking on the WAP link still costs the consumer the transmission of the content. Although an MMS may cost 5-10 cents, that same content over the mobile web could cost $2.00 if the content is 200kb at $0.01 per kb. Of course I’ll have to point out that the early adopters probably have flat rate data plans. Unfortunately, the majority of people in the U.S. do not have flat rate data plans. It's actually more common for users in the U.S. to have unlimited messaging plans (that include MMS) than a flat rate data plan. Therefore I believe an MMS will consistently cost less to the consumer across all user levels.Another issue critics have about the technology is that MMS isn't perfect:

An item that the U.S. carriers have on their "to do" list is to integrate Mobile Originated (MO) MMS messaging with common shortcodes (aka CSC) so that consumers can send an MMS to a CSC. The way the technology currently stands in the U.S., user generated content has to be sent from a handset to an email address. We've been hearing throughout the industry that MMS to a shortcode is coming soon, so hold your breath. Ok, please don't. Once interoperability is a reality, I think brands will start exploring the of MMS given the experience and possibilities of the tactic.

Mobile Terminating (MT) outbound delivery of an MMS message from a common CSC to the consumer is here, and with it's inherent tracking technology, brands now have the ability to track a campaign at a level they were unable to with SMS. Amethon and Hook Mobile are two technology companies that have excellent examples of the fingerprint tracking capabilities of peer to peer MMS forwards. Think trackable viral marketing via the mobile phone. This has me, the marketer, salivating at the measurement and statistics as well as the thought of some pretty innovative campaigns.

There are different ways to look at how people use the mobile device but I believe that the majority of people will use what is easiest and most readily available. People popularized SMS because it’s quick, effective and cheap. The phone IS a social network, and it is one that has more reach than MySpace & Facebook combined. Using the native applications on the phone is a no brainer as most people won't take the extra step of going to a site or downloading an application when they don't have to. We ultimately need a simple experience for the users and deliver what they want, when they want it.

We'll get there, give it time. I remember when people criticized SMS in it's infancy. Many times I was told by friends that they would rather email or call me instead of this "texting jazz". That was 2003. Marketers and carriers have been successful of driving user behavior in the past and forsee they will once interoperability hits in the U.S. What do you think? I'd like to hear any your opinions as well.

text2screen demo

Text-2-Screen has been a very popular mobile application used in-venue at sporting events, concerts or anywhere with a screen. Here's a real live application to demo courtesy of Mozes.com