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Lai Kok Fung, Ph.D., is co-founder and chief executive officer of BuzzCity, a developer of global wireless communities and consumer services. Established in 1999 in Singapore, BuzzCity today operates the world’s largest wireless community -- mygamma.com -- for two distinct audiences: the newly connected emerging middle class in developing markets and the blue collar sector in developed regions.

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Scaling Mt. Mobile — NOW

Written on
July 3rd 2008
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by KF Lai  |
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topofworld.jpgADOTAS EXCLUSIVE — A wide range of opinions exist about mobile Internet advertising and its potential. Depending on whom you talk to, mobile advertising is either right on the cusp of a huge breakthrough or a peripheral medium that may or may not live up to the hype at some point in the distant future. But the reality is clear to companies that are right in the trenches of mobile advertising and already seeing outstanding results: it is no longer a medium with great potential — it’s real, it’s here, and it is growing exponentially.But mobile advertising varies in significant ways from the “traditional,” PC-based form of online advertising, which may explain why it has been so hard for analysts and ad-industry watchers to track its rise. The differences between advertising on the mobile Internet and the PC-based Internet are due to the physical differences between the devices — most notably the limited size of the interface, which creates new user habits and necessitates innovative approaches for those advertising on the mobile screen. This may seem obvious, but advertisers who recognize how to turn these differences to their advantage are far ahead of the game in mobile advertising.

Because of the limited “real estate” on mobile phone screens, the real key to mobile advertising is scale. Advertisers need to be seen as many times and on as many mobile Web pages as possible, which on the surface seems like a daunting problem for those seeking to advertise on the mobile device. However, there is a relatively easy answer for this quandary — partnering with and running mobile campaigns through an established mobile advertising network that can show ads on thousands of relevant mobile sites — this can give an advertiser the scale necessary to tap the power and effectiveness of mobile advertising. Companies large and small — from brands like Coca-Cola that run call-to-action campaigns to small startup mobile Web sites looking to build traffic — have been taking advantage of the mobile advertising network approach, and reaping the rewards.

There are some other big differences between ad campaigns on the wired Internet and those via mobile phone that need to be considered when planning a mobile campaign. Mobile phones are both highly personal and interactive, in many ways much more so than the wired Internet. Also think about the active nature of using the mobile phone — unlike the PC, where the Web browser often stays open and connected, even when the user isn’t browsing the Internet, mobile phone users more often have a specific purpose in mind when they use the interactive features on their devices, and are actively texting or seeking specific information on the mobile Web. If you think about it, this is about an ideal of an environment as exists for advertisers to reach motivated customers, as long as you can target your campaigns to the types of customers you want to reach. This also brings up an important point to consider when choosing a mobile advertising network on which to run your campaigns: make sure you are able to target to specific demographics, and that you are able to use some type of analytics service to measure effectiveness.

Beyond the targeted advertising network to reach broader audiences, there are more local options in mobile advertising, like “proximity marketing.” But advertiser beware — because it is such a personal device, this type of mobile marketing could backfire if not done right. True to the personal nature of the mobile device, users decorate their screens with customized screensavers, and download unique identifiers like ring tones. So, cyber-hawking or intrusive advertising, based solely on factors like proximity (think Bluetooth marketing), is like trespassing. A company risks a severe consumer backlash not to mention a poor response rate. On the other hand, if done carefully, proximity marketing also presents an opportunity to run highly-targeted mobile campaigns with an opt-in element. For example, at a movie theater, users can be asked to use their phones to rate a film. Moviegoers will participate if they’re offered a chance in a lucky draw or a discount on their next movie ticket—this can be an effective way to utilize the participatory, active nature of mobile phones.

Some marketers may ask themselves why they should even bother with mobile advertising. Well, it all comes down to the fact that mobile is cheap, and has great reach and penetration. I’m not going to rattle off the wide ranging numbers analysts have come up with about the potential of the medium. What is really compelling is just how fast mobile communication is expanding in the real world. Just think of how many people have mobile phones now that didn’t just a decade ago. Think of how many people are texting now, compared to just a few years ago when only teenagers and hipsters were utilizing SMS. Also think about how many big consumer brands are now starting to dabble in mobile Internet marketing as a way to more effectively target new customers. Finally, consider that the tools are in place now to succeed at mobile advertising and position your business or clients ahead of the curve.



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