Mobile advertising is set to boom

Mobile devices that are capable of receiving desired, relevant and valuable information can potentially move the relationships that consumers have with certain brands to a whole new level that will be a lot deeper than before.
There is currently a dramatic transformation taking place in the mobile marketing landscape, which is at present responsible for 8.5% of all traffic.
This figure, according to the MD of the Nice Agency, Ryan Hall, is set to double during 2012. Ryan made the speech that included this statement to Nature Publishing on the 13th February, when he outlined the growth opportunities that existed for mobile marketeers, as well as the challenges that they would have to face.
He said in the speech that they were currently seeing three main types of mobile users evolving; the Pioneer; a male under 35 with a smartphone full of advanced features and apps who takes up 15% of today’s market. The Wannabe, who account for around 25% of the market and who have a mobile with a few features, and the traditionalist, who only use their phones to call and text and make up 60% of the market.
“And yet we are seeing a huge increase in spending on mobile advertising. Some estimates put that figure on $1.6b in 2010, doubling to $3.3b in 2011. Accounting for some $86.6b in mobile transactions. The key question for mobile marketeers is whether to build a mobile site or an app or both!”
Ryan went on to say: “Apple is all about mobile apps, and Google is all about mobile web. How the system will evolve, whether apps or web will be the chosen mobile solution is a difficult one to predict. I think that both of the platforms will co-exist,”
“For advertisers, the most crucial part is presenting the ad. How the consumer accesses the ad, will not matter,” he added.
Ryan went on to state: “Location-based marketing will develop – that is, dishing out content based on where the recipients precisely are – in other words an SMS offering you some freebies once you order something from them.
“Mobile advertising is now recognised as an opportunity for brands, advertisers and publishers to engage consumers in a targeted and relevant manner, and that means in pure business terms – improving returns,” he added.
But, according to Ryan, there are challenges for the industry.
“The mobile audience is fragmented across multiple platforms, with multiple sellers, multiple carrier networks, multiple devices, and multiple browsers, all of which hinder consistency of execution,”
“In such a highly fragmented landscape, identification of a user, user session, browser, or device can pose a significant problem, hindering the ability to deliver the right ad to the right user at the right time.”
The second major challenge is that of measurement. According to Ryan there are multiple measurement yardsticks which are making the process complex and costly. These include:

Measure unique users against lots of polluting traffic (bots, spyders, etc.);

Track international traffic vs. US traffic;

Measure advertising impressions in intermittently-connected content like games or downloaded audio.

Ryan concluded by saying: “Delivering relevant, desired, valuable information on mobile devices has the potential to move consumer relationships with brands to a new and very deep level.”