Article 1: Messaging remains driver of mobile ad market by Cathal O’TooleSummaryIn the article, ‘Messaging remains driver of mobile ad market’ O’Toole (2010) discusses the market potential of mobile advertising messaging services. The author opines that the mobile advertisements would help the mobile network operators to garner more revenues to compensate for their decreasing revenue sources from traditional services. Although, analysts had predicted that mobile ad would slow down due to the global downturn, trends reveal that mobile ad instead saw an upsurge while the traditional ad industry faced the burnt.
The increased usage of smart phones are also contributing towards the surge in mobile advertisements, as the users are spending more time to search Internet through their mobile devices. Further, the mobile ad companies are able to leverage the availability of detailed profile data of the users and provide targeted ads. Experts believe that in the future the success of the mobile ads would be measured by the purchase statistics of the users and not only by studying the consumer behavior. As per data from PricewaterhouseCoopers and the Internet Advertising Bureau, the media and entertainment sector contributed around 61 per cent of the total mobile ad spend in the UK.
However, in most high-growth markets, mobile ads are still being delivered through traditional channels such as MMS, SMS, ringback tones and USSD. As the penetration of smart phones is low in these markets, the marketers prefer to reach the users through traditional messaging methods. The messaging tools enable the corporate to reach out to the consumers on any handset and thereby, help in garnering more visibility and instant reactions for the users.
Thus, the messaging services would remain the top choice for many companies to disseminate mobile advertisements. Important developmentsThe article focuses on the developments in the mobile ad segment and how it is helping in the growth of not only the telecom industry but other industries as well by serving as a major marketing tool. The article points out two important developments in the mobile ad segment. The first development focuses towards the increasing use of technological innovations in the segment. The advances in mobile ad technologies are helping the companies to insert targeted ads to a particular profile of consumers.
Further, the increased usage of smart phones is also helping the industry to provide ads as per the requirements of the users. However, such a development in restricted in the developed nations, with the high-growth countries witnessing limited penetration of smart phones. Thus, the article provides the second important trend in the mobile ad segment i. e. of the continued use of traditional messaging method to disseminate mobile ads. As any handset in the world is compatible to receive messages, this service enables companies to reach out to a wider audience and receive instant feedback about their products and services.
Therefore, mobile ads through messaging would remain an important medium to reach out to the audience. Business applications of the developments In the developed nations, the growth of the mobile ads would be directly linked with the increase in the penetration of the smart phones. The companies in these countries may develop customized mobile ads keeping in mind the configurations of the leading smart phones. For instance, many sites have launched alternate sites for iphone and ipad users in the US.
Such customization would help in garnering targeted audience for their products and services, and the company may also be assured of convert customers through such initiatives.