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Mobile Advertising

Mobile Advertising

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Published by: prst0309 on Jan 30, 2010
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MOBILE ADVERTISING
Introduction
Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing. Mobile advertising as a mediumhas been drawing significant attention from media giants and the advertisingindustry since the mid-2000s. Mobile technology is identifying newer mobilemultimedia and is constantly evolving.Mobile advertising is slowly emerging as the preferred choice for advertisers asmobiles are extremely personal devices with an unparalleled reach, resulting inopportunities to target audiences in ways that no other media can offer. MobileAdvertising Mobile advertising encompasses text messaging, mobile commerce,and Bluetooth marketing along with the traditional search engine marketing, banner adverts, video adverts, and ringtone downloads.
 
Mobile as Media
This unobtrusive two-way communications caught the attention of media industryand advertisers as well as cell phone makers and telecom operators. Eventually,SMS became a new media - called the seventh mass media channel by severalmedia and mobile experts -and even more, it is a two-way mobile media, asopposed to one-way immobile media like radios, newspapers and TV. Besides, theimmediacy of responsiveness in this two-way media is a new territory found for media industry and advertisers, who are eager to measure up market responseimmediately. Additionally, the possibility of fast delivery of the messages and theubiquity of the technology (it does not require any additional functionality from themobile phone, all devices available today are capable of receiving SMS), make itideal for time- and location-sensitive advertising, such as customer loyalty offers(ex. shopping centers, large brand stores), SMS promotions of events, etc. Toleverage this strength of SMS advertising, timely and reliable delivery of messagesis paramount, which is guaranteed by some SMS gateway providers.Mobile media has begun to draw more significant attention from media giants andadvertising industry since the mid-2000s, based on a view that mobile media wasto change the way advertisements were made, and that mobile devices can form anew media sector. Despite this, revenues are still a small fraction of the advertisingindustry as a hole. Inform a reported that mobile advertising in 2007 was worth$2.2 billion. This is less than 0.5% of the approximately $450 billion globaladvertising industry. Types of mobile advertising are expected to change rapidly.In other words, mobile technology will come up with a strong push for identifyingnewer and unheard-of mobile multimedia, with the result that subsequent media
 
migration will greatly stimulate a consumer behavioral shift and establish a paradigm shift in mobile advertising. A major media migration is on, as desktopInternet evolves into mobile Internet. One typical case in point is Nielsen’s recent buyout of TelephiaHowever it should be kept in mind that the rapid change in the technology used bymobile advertisers can also have adverse effect to the number of consumers beingreached by the mobile advertisements, due to technical limitations of their mobiledevices. Because of that, campaigns that aim to achieve wide response or aretargeting lower income groups might be better off relying on older, morewidespread mobile advertising technologies, such as SMS.A BBC news article of August 2006 indicated, "Young drive 'radical media shift'", pointing to a fast shift away from the traditional media. "They are leaving thetraditional media and moving towards new media. This generation has grown upwith new technologies - and it is this generation for whom the uptake isinstinctive."
Mobile Advertising and Marketing
Mobile advertising is coming to a phone near you – but simply translating existingmodels won’t work.The increasing availability of multimedia content is opening a large opportunity for sophisticated forms of mobile advertising. As content that already incorporatesadvertising – like live TV programming – makes it’s to mobile handsets, brandsand entertainment content providers are beginning to see the value of presentingfull multimedia ads with programs.Operators in the U.S and Western Europe are currently either testing various formsof advertising with 3G services or are allowing ads to be served on their portals. Anumber of multimedia companies will launch advertising in H1 2006 within their multimedia offering. Furthermore, the entry large online search engines into themobile world opens up new advertising opportunities in the shape of context-basedmobile search.From 2005 when the Nascent Market Gamered $255 million in Europe and theUnited States, mobile marketing and advertising in these two geographical areaswill
 
grow to exceed $1 billion in 2009, provided certain elements fall into place.Issues to be resolved include business models and revenue share, the type, lengthand frequency of ads, consumer attitudes and many others. Operators will have towalk a fine line between maximizing the revenue potential of advertising, while atthe same time not risk alienating subscribers and increasing chum by doing so.
Viral Marketing
 
As mobile is an interactive mass media similar to the internet, advertisers are eager to utilize viral marketing methods, by which one recipient of an advertisement onmobile, will forward that to a friend. This allows users to become part of theadvertising experience. At the bare minimum mobile ads with viral abilities can become powerful interactive campaigns. At the extreme, they can become engagement marketing experiences. A key element of mobile marketingcampaigns is the most influential member of any target audience or community,which is called the Alpha User.
Types of Mobile Ads
In some markets, this type of advertising is most commonly seen as a Mobile WebBanner (top of page) or Mobile Web Poster (bottom of page banner), while inothers, it is dominated bySMSadvertising (which has been estimated at over 90%of mobile marketing revenue worldwide). Other forms includeMMSadvertising,advertising within mobile games and mobile videos, during mobile TV receipt,full-screen interstices, which appear while a requested item of mobile content or mobile web page is loading up, and audio advertisements that can take the form of a jingle before a voicemail recording, or an audio recording played whileinteracting with a telephone-based service such as movie ticketing or directoryassistance.The effectiveness of a mobile ad campaign can be measured in a variety of ways.The main measurements are impressions (views) and click-through rates.Additional measurements include conversion rates, such as, click-to-call rates andother degrees of interactive measurement.SMS, MMS, and Short code are the current predominant mobile ad servingmechanisms. The advent of 3G and Wi-Fi enabled phones has made Mobile TVand Mobile Commerce the next sought-after mediums of advertising. Video pre-/post-roll and ad funded some of the emerging trends as well. Volume islimited in terms of current reach and advertising, but this is increasing and isexpected to grow rapidly over the next few years.
Mobile advertising: Push & Pull
Mobile advertising can roughly be divided into push and pull advertising. Pushmobile advertising is the type of advertising where it is the marketers who sendinformation to consumers without having got an initial request for it. In pulladvertising it is the consumers who actively request for information from theorganization/marketers. As gaining the customer’s permission to perceive mobileadvertisement is one of the fundamental factors for mobile advertising success. Inthe case of pull mobile advertising it is the consumers who request the information.

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