PlusOne - Musings of a marketer

This articles examines the predicted surge in mobile advertising in Australi a with the increased market penetration of 3G handsets that have enhanced data capabilities.

The main drawback as hinted at in this article is that Australia has comparatively high mobile data charges - though lower than some countries like Canada. Telstra is under pressure from 3 who is lowering its data charges to more realistic levels.

Telstra is pushing mobile with several new offerings for marketers about to hit the streets. The main aim is to drive dtat charges onto consumers.

This will be achieved my making it easier for people to interact with services that are heavily data driven, like songs and video - two aspects of content that are more ideally suited to devices like the iPhone with its improved display and enhanced features.

3G to Triple Mobile Advertising in Australia This Year

The mobile advertising market in Australia is very much in its infancy with total revenues reaching just $2.5 million in 2007. However, this figure is set to grow more than 300 per cent in 2008 and be sustained into next year driven by the growing consumer take-up of 3G data services coupled with attractive campaign pricing to entice advertisers.

A new report from Frost & Sullivan highlights, however, that sustained growth of mobile advertising into 2009 will depend on a continued reduction in mobile operator data charges, the development of sophisticated mobile advertising offerings from more organisations, and enhanced technological capabilities and integration across the mobile advertising value chain.

At the same time, continued uncertainty about the mobile advertising medium among advertisers is still restraining its popularity. Indeed, mobile advertising spend currently is mainly driven by the media and entertainment, and banking, financial services and insurance BFSI industries which together contributed more than 50 per cent of revenues in 2007.

Currently, the bulk of mobile advertising spend is based on campaign trials in partnership with mobile carriers and content publishers. This is concentrated in display banners and video accounting for 91 per cent of total revenues. Concurrently, search advertising on mobile phones remains very low, with most consumer activity still concentrated in the free-to-access, on-deck directories within carrier portals.

Frost & Sullivans research shows that three main forces have now come together to create a positive market environment for rapid growth in mobile advertising marketing spend.

The number of 3G handset subscribers is expected to mushroom with the corresponding adoption of mobile data services. Frost & Sullivan estimates there are now more than six million 3G handset subscribers services in operation in Australia and this will grow rapidly over the next two years as operators phase out their non-3G handset offerings. Adoption of Apples iPhone is also expected to have very strong impact in the usage of mobile data services.

Finally, early success by advertisers deploying mobile advertising in their marketing mix, particularly with SMS/MMS broadcast and response campaigns, is driving further take-up and experimentation. Source AMTA