Wednesday, April 16, 2008 Telco exec foresees opportunities in advertising through cell phones
ADVERTISING through television has its limitations: advertisements may reach more people but not necessarily their target markets and, for many individuals, it is impossible to keep on watching TV for the most part of the day, every day.
On the other hand, most of the people who own cellular phones will not leave home without their mobile communication devices, which can be left on 24 hours a day, every day, said Danilo Mojica II, head of Smart Communications Inc.’s wireless consumer division.
“Sixty-four percent (of those surveyed by Smart) will not leave home without their cell phones,” Mojica said during his talk on mobile advertising at the opening of the 28th GSM Asia Pacific Conference Monday.
Mojica said that unlike TV, a mobile phone is owned by only one individual. Mobile advertisements, therefore, are delivered directly to the target consumer.
He admitted, though, that growth of mobile advertising in the Philippines would be a “slow climb” as more than a majority of the population watch TV.
“But there is a high acceptability (74 percent) of mobile ads…and it is up to us to tap (this segment),” he said.
He said there are many opportunities for mobile advertising for advertisers, consumers and telecommunications networks.
In the country, cellular penetration—the percentage of the population who own cellular phones—rose to 65 percent in 2007 from two percent in 1998.
Apart from those who already own cellular phones, the remaining 35 percent of the population who don’t have mobile phones would eventually get one as telecommunication companies try to tap the “un-served” market.
Mobile ads, Mojica said, will increase take up and stretch the marketing budget of mobile service operators as they get paid by advertisers. It also builds up loyalty to the operator, he added.
For advertisers, mobile ads would give access to direct marketing and feedback. It can affect decision making at point of sale as the mobile ad can be sent upon the phone user’s arrival at a shopping center.
Since many mobile ads also provide free texts, users will have more disposable income to buy goods, Mojica said.
In his presentation, he quoted findings by Informa Telecoms and Media, which reveal that global revenues in mobile advertising through messaging (short messaging system or multi-media messaging) was estimated at 1.3 billion in 2007 and would rise to 1.9 billion in 2008. The estimated revenues are expected to reach 2.7 billion in 2011.
Consumers get many benefits, too, Mojica said. They will have cheaper access to telco products when they get free texts upon purchase of the advertised goods and more disposable income.
But Mojica, in an interview, described the current phase of mobile advertising as “going to school” as it is still in its early stages.
“This is a new realm for all players…where there are no rules, only tactical success stories,” he said in his speech.
Smart ventured into mobile advertising last year in partnership with Unilever, Nestle and Pepsi. The mobile service operator is also looking into the possibility of location-based mobile advertising, which involves sending mobile ads of a shopping center or store the moment the user arrives at a mall.
The GSM Association in Asia Pacific conference at the Shangri-la’s Mactan Island Resort and Spa identified mobile advertising as part of its focus agenda, together with mobile broadband and international roaming.
GSM Association is an organization of more than 130 mobile phone operators in 49 countries worldwide. (LAP)
