Mobile Marketing - 2009 Edition

• Publication date: October 2009

`Mobile is typically the glue that can bind together virtually any campaign element.' This comment from Mobile Interactive Group's (MIG's) Head of Mobile Marketing, Tim Dunn, made in response to a question posed by the author, typifies how the industry sees mobile marketing.Although mobile marketing has not yet come of age, the first confident steps are being taken and are beginning to be noticed. The Internet Advertising Bureau...

`Mobile is typically the glue that can bind together virtually any campaign element.' This comment from Mobile Interactive Group's (MIG's) Head of Mobile Marketing, Tim Dunn, made in response to a question posed by the author, typifies how the industry sees mobile marketing.

Although mobile marketing has not yet come of age, the first confident steps are being taken and are beginning to be noticed. The Internet Advertising Bureau (IAB) has extended its data collection to include mobile marketing and, with the consultancy firm PricewaterhouseCoopers (PwC), has published the most dependable estimate of market size to date. For the first time, mobile marketing, the potential of which has been much talked of for years, has reached the bottom rung of the advertising expenditure ladder, with expenditure in 2008 having reached a sufficient level to allow meaningful comparison with other marketing sectors.

Moreover, mobile marketing can be seen to be bucking the trend. While expenditure in almost every other medium is declining, mobile marketing expenditure is growing, albeit from a comparatively small base.

There are several key drivers of growth, not least of which is the fact that the underlying technology is catching up with the need; but more than that, the technology is opening up possibilities that had not even been thought of until relatively recently. As advertisers wake up to the possibilities presented on the Internet by the social networking phenomenon, they are excited by its move to mobile, making this ever-present, ever-on technology even more desirable. Furthermore, with mobile devices becoming like mini-computers, with their own operating systems — as evidenced by the emergence of the iPhone and similar `smartphones' — there are thousands of downloadable applications available to users and thousands of branding opportunities. Virtual pints of beer and virtual lighters have already been exploited by brands.

Just as mainstream media is dependent on the platform owners (television companies, magazine publishers and so on), so mobile marketing is dependent on network operators and handset manufacturers to provide the delivery channel. The difficulties for marketers lie in the diverse standards used; i.e. there is no uniformity and campaigns have to be tailored according to the limitations of the delivery channel. The industry is working hard to redress this, with industry representatives encouraging co-operation and solutions developers providing products that enable cross-platform adserving (i.e. the delivery of advertising to Web pages).

The mobile phone is ubiquitous — penetration of the UK population exceeds 100% — which should make it almost irresistible to advertisers. However, industry regulations are also in force here and unsolicited text messages are covered by the same rulings as unsolicited e-mails. Customers must agree to receive advertising and they are unlikely to do so unless they receive something in exchange.

In addition, advertisers understand that the way in which mobile phones are used by the different age groups and social grades is not the same, and penetration of mobile broadband is still relatively low. It is highest among the younger age groups and the AB social grades but still accounts for a small percentage of the total market. The relatively high costs of producing a multi-platform mobile video campaign, for example, might not generate the desired return on investment (ROI) when it can only be delivered to a relatively small audience, which can be reached more quickly and at a lower cost using other marketing channels.

Nevertheless, when used as part of a multimedia campaign, mobile marketing has a lot to offer, especially as a direct-response mechanism, and it is here where most growth is likely to lie. Even so, it remains very much the newcomer and, despite some very successful mobile campaigns, many advertisers are still unaware of just what it can offer them.

However, the kind of consolidation offered by the potential merger in the UK between Orange and T-Mobile would provide a rosy future for advertisers as, with fewer operators with which to negotiate, running mobile campaigns would become more straightforward.

This Market Assessment report examines the main aspects of the industry, from network operators and mobile manufacturers to adserving platforms and the marketing agencies that originate the campaigns. 
 

Online Advertising Industry in the United Kingdom

Executive Summary

1. Introduction

Report Focus
Definitions
Mobile Marketing
Networks
Connectivity
Smartphones
Operating Systems

2. Strategic Overview

Market Dynamics And Segmentation
Market Size
By Volume
Mobile Phones And Services
Table.1: Ownership Of Mobile Phones In Great Britain
Table.2: Monthly Mobile Broadband Sales In Great Britain
Table.3: Take-up Of Mobile Broadband By Age, Social Grade
Table.4: Uk Mobile Internet Users (million)
Table.5: Unit Sales Of Smartphones And Sales As A
Table.6: Uk Volume Of Sms And Mms Messages Sent
Mobile Advertisements
Table.7: Number Of Uk, Us And Global Advertisements
Table.8: Smartphones' Share Of Uk Advertising Traffic
Table.9: Share Of Uk Advertising Requests
By Value
Mobile Advertising
Table.10: Uk Mobile Advertising Expenditure By Type
Figure.1: Uk Mobile Advertising Expenditure By Type
Table.11: All Advertising Expenditure By Type
Industry Issues
Distribution
Table.12: Uk Digital Communications Service Availability
Competitive Structure
Network Operators
Mobile-phone Manufacturers
Adserving Networks/aggregators
Specialist Mobile Advertising Agencies/mobile Planners/buyers
Social Networking For Mobile
Table.13: The Top Ten Uk Mobile Social Network Sites
Mobile Sector Awards
14th Gsma Global Mobile Awards
Mobile News Awards March
Visiongain Mobile Advertising And Marketing Awards
2008 Global Mobile Marketing Awards (emea Region Winners)
The Consumer
Mobile Internet Usage
Table.14: Top Activities Among Iphone Users, All
Table.15: The Top Ten Mobile Sites Compared With
Mobile Consumers' Behaviour In The Recession
Table.16: Uk Consumer Priorities With Regard
Mobile Applications
Table.17: Distribution Of Admob Iphone Applications
Market Forecasts
Market Size
Future Technology

3. Mobile Manufacturers And Networks

Background
Mobile Internet Domain Names
Market Size
Mobile Phones
Table:1 Mobile-phone Shipments By Vendor By Volume
Smartphones
Table.2: Worldwide Smartphone Sales To End Users
Table.3: Worldwide Smartphone Sales To End Users
Sector Profile
Marketplace Consolidation
Table.4: Us Merger And Acquisition Activity In The Media,
Network Advertising
Marketing Activity
Table.5: Main Media Advertising Expenditure On Computer Handheld Units (£000), Years Ending June And
Competitive Structure
Manufacturers
Network Operators
Market Share
Table.6: Uk Mobile Network Operators By Number Of

4. Mobile Advertising Service Providers

Background
Regulation
Sector Profile
Advertising Models
Table.1: Advantages And Disadvantages To Mobile Service
Trade Organisations
Association For Interactive Media & Entertainment
Groupe Spéciale Mobile Association
Internet Advertising Bureau
Mobile Data Association
Mobile Marketing Association
Marketing Activity
Press
Trade Shows
Competitive Structure
Adserving Networks
Aggregators

5. Mobile Marketing Agencies

Background
Market Size
Table.1: The Top Ten Interactive Marketing Agencies
Table.2: Uk Mobile Advertising Expenditure By Type
Case Studies
Bookstart
Doritos
Honda Insight
Adobe Max Conference
National Express East Coast Trains
Industry Issues
Competitive Structure

6. An International Perspective

Mobile Phone Penetration
Table.1: The Top Ten Global Territories By Mobile Phone
Table.2: The Lowest Global Territories By Mobile Phone
Market Growth
Mobile World Congress
Awards

7. Pest Analysis

Political Factors
Economic Factors
Social Factors
Technological Factors

8. Industry Dynamics

Introduction
Industry Insight
Has The Recession Slowed Down Advances In Mobile Marketing?
In Addition To The Advent Of Smartphones, What Do You See
What Are The Main Constraints Of Mobile For Advertisers?
For Which Industry Sectors Is Interactive Mobile Marketing
Which Industry Sectors Are Already Utilising Mobile Marketing Effectively? Which Are Falling Behind?
How Do You Think B2b Advertisers Can Best Benefit
Are There Any New Ways In Which Sms Marketing Can Be
How Well Can Mobile Marketing Be Integrated Within General Marketing Campaigns? Is There A Particularly Strong Combination (e.g. Outdoor And Mobile, Internet And Mobile, Etc.)?
What Do You Think Will Be The Three Main Developments For Mobile Advertisers In The Next Or Years?
Finally, What Is The Best Advice You Would Give To An Advertiser Thinking About Creating A Mobile Advertising Campaign?

9. Company Profiles

Introduction
2ergo Group Plc
Corporate Strategy
Company Strengths And Weaknesses
New Product Development
Brand Development
Innovations
Appointments
Profitability
Table.1: Financial Results Forergo Group Plc
Future Company Developments
Hutchisong Uk Ltd
Corporate Strategy
Company Strengths And Weaknesses
New Product Development
Brand Development
Innovations
Appointments
Profitability
Table.2: Financial Results For Hutchisong Uk Ltd
Future Company Developments
Incentivated Ltd
Corporate Strategy
Company Strengths And Weaknesses
New Product Development
Brand Development
Innovations
Appointments
Profitability
Future Company Developments
Mobile Interactive Group Ltd
Corporate Strategy
Company Strengths And Weaknesses
New Product Development
Brand Development
Innovations
Appointments
Profitability
Table.3: Financial Results For Mobile Interactive Group Ltd
Future Company Developments
Nokia Uk Ltd
Corporate Strategy
Company Strengths And Weaknesses
New Product Development
Brand Development
Innovations
Appointments
Profitability
Table.4: Financial Results For Nokia Uk Ltd
Future Company Developments
Symbian Foundation Ltd
Corporate Strategy
Company Strengths And Weaknesses
New Product Development
Brand Development
Innovations
Profitability
Table.5: Financial Results For Symbian Ltd (£000),
Future Company Developments
Velti Plc
Corporate Strategy
Company Strengths And Weaknesses
New Product Development
Brand Development
Innovations
Appointments
Profitability
Table.6: Financial Results For Velti Plc (£000),
Future Company Developments

10. The Future

Penetration Of The Marketing Budget
Digital Marketing Share
Table.1: Forecast Trends In Digital Marketing's Share Of The Marketing Budget (% Of Respondents),/2009-2010/
Mobile Marketing Share
Table.2: Forecast Trends In Mobile Marketing's Share
Table.3: Forecast Trends In Mobile Marketing Tactics
Market Size Forecasts
Table.4: Forecast Uk Mobile Advertising Expenditure
Figure.1: Forecast Uk Mobile Advertising Expenditure

11. Further Sources

Associations
Publications
General Sources
Government Sources
Other Sources
Key Note Sources