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Consumers are likely to see more and more advertising delivered via mobile phones over the next five years, according to a new study from ABI Research.
The mobile advertising market, which has a current turnover of $1.9 billion worldwide, (compared to $60 billion or so spent annually on TV advertising spent in the US alone) will enjoy double-digit growth rates over the next five years, ABI says.
“There are very good reasons to use the mobile phone to reach consumers,” says senior analyst Ken Hyers. “Unlike a TV or a PC, a mobile device is truly unique to the end-user. That allows a more customized relationship with the recipient of the advertisement. Advertisers can obtain a lot of information about end-users, through the websites they visit and the purchases they make, helping them construct tightly targeted campaigns.”
However, mobile advertising must be done well to be effective, Hyers warns. “Sending SMSs to customers that are either obnoxious due to their frequency, or because people didn’t opt in, or because they are poorly targeted, is counterproductive. To that end, the Mobile Marketing Association has developed codes of conduct to which the major, reputable mobile marketing firms and brands are signing on. If consumers start to get upset with it, you’ll see operators quickly pull back, because they don’t want to alienate their customers.”
