May wasn’t a great month for the fortunes of mobile marketing. First, a study of Australians with 3G handsets revealed that only 15% use 3G features. The prospect of delivering rich advertising messages to a consumer’s pocket through mobile seems bleak. Then, a major UK study from Group M reported that mobile marketing as a viable marketing channel had “years to develop” and was in its infancy[i]. Against the backdrop of Australia’s $11B above the line advertising industry, an investment in mobile advertising would appear all too hard, with dubious returns.
So why is Australia’s mobile marketing industry thriving? Last year’s Mobile Marketing Awards, hosted by ADMA, looked more like the Logies than a group of fringe marketers with agile thumbs. This week, entries open for the 2008 awards with over 200 entries expected across 11 categories.
Much of the confusion lies with how mobile marketing is reported and measured by surveys and the broader advertising industry. To assume that mobile advertising looks like online display advertising would be a mistake, and consumers clearly do not want these types of messages from advertisers. Our relationship to our mobile phones is personal, private and protected. Most studies and surveys view advertising in a very traditional sense, and are grossly underestimating the size of the market, or measuring the wrong market altogether.
An experienced industry insider was kind enough to share a secret with me. “When thinking of mobile advertising”, he said, “Forget about the screen. Think of the mobile phone as the world’s largest Facebook network, that people carry everywhere.” With a knowing glance he slipped back into the crowd to let me ponder on that one.
Of course, his point was that mobile marketing is more about building applications and providing some utility value, than serving display advertising. A great application that delivers value, connection or entertainment, will deliver a more effective set of brand values via the mobile phone than any standard campaign. Most activity within the industry centres around these types of applications, with very little involvement from the major advertising groups. In most cases, clients are directly engaging specialist mobile agencies.
The growing fortunes of mobile marketers and agencies are quietly surprising. On the 27th June 2007, Loop Mobile listed on the Australian Stock Exchange, successfully raising $5 Million for its community networking platform. Adam Dunne’s company Aura Interactive, now has over 250 BlueZone™ hubs around Australia, where users can download mobile applications, wallpaper and community tools for free. Both Aura Interactive and Tigerspike are among Australian mobile marketing companies who have successfully established offices in Asia, the US and Europe. Not bad for an industry that is in its infancy.
Significant barriers to the industry still remain however. Australian telecommunication networks have failed to agree on a coordinated set of standards or an open platform for the distribution of mobile marketing. The situation is clearly absurd for a market as small as Australia and is holding the industry back. The industry also lacks a common set of measures of success, often focusing on downloads or other measures, that don’t explain the depth of loyalty or engagement great mobile marketing strategies can deliver.
Finally, Australia has yet to enjoy a consumer revolution the scale of the iPhone. While both iMate and Blackberry have recently launched their latest smart phone ranges, they have failed to capture the public’s imagination like the iPhone. Its introduction later in 2008 will be an industry changing event. The Australian launch of the iPhone is likely to co-incide with the opening of Apple’s latest superstore in George Street, Sydney.
[i] Julien Theys, Group M, 'Mobile media advertising opportunities: The market for advertising on TV, video and games'.
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