The Buzz Is In Your Pocket
Monday, 10 May 2010 12:39
As mobile phone penetration increases across the world, mobile Internet and advertising seem like the sensible way forward, yet it's a path many are still hesitant to take.

By Andrea Mathew
Mobile advertising may be the buzz word these days, but not many brands are catching on to it. BuzzCity, a mobile media company offering brand owners and agencies access to a global advertising network on mobile Internet, is changing things up.

On the 23rd of April, the company brought together advertisers and agencies under one roof to shed light on the topic. A convergence of some of the best minds in the mobile industry, the interactive seminar, which was held at the Boulevard Hotel in Mid Valley City, Kuala Lumpur, was part of BuzzCity’s 2010 Mobile Internet Marketing & Advertising Seminar roadshow series.

The morning kicked off with a talk by Hisham Isa, BuzzCity's Sales & Marketing Vice President, who shared his insights on ‘Mobile Internet Marketing – Keeping Up With the Consumer’. Quoting Sir Martin Sorrell, he said that our current digital spend is 12% to 13% of ad spend but consumers are spending 20% of their time online, thus spending should match up or businesses risk losing customers.

Worldwide, the use of mobile Internet is growing with South Africa recording a high number of Google searches via mobile devices. He explains that this growth is due to the fact that in some locations, there are low numbers of PC ownership, high mobile penetration, affordable mass market pricing for mobile data (flat or quasi-flat rate), and increasing ‘unwired’ audience and advertisers.

Gone are the days of mobile shopping limited to buying wallpaper and ringtones. Today, consumers are procuring all sorts of things through their mobiles, from travel tickets to groceries, clothes and books. They are also demanding for a mobile that assists them with everyday chores such as finding and paying for parking! Here is an open gap that brands and agencies can fill.

The first panel discussion on the topic ‘Mobile Internet Advertising and Its Role in the Marketing Mix - What Marketers Really Want From The Mobile Internet Media’ involved Cato Gullichsen CEO of the InCent Media Group; Pamela Yap, Director of Digital Sales & Ad Operations, Digital Five Sdn Bhd; Jordan Khoo, Asia Pacific Sales Director of Eyeblaster Ltd; and Stanley Tay, Media Director of Neo@Ogilvy.

Here are some enlightening excerpts from the discussion:

What are marketers looking for in the mobile region?
Pamela:
They want to know how they can engage consumers. I encountered a good example of consumer engagement a few weeks ago. I was in Damansara looking for a place to dine and I located a place using my mobile phone which then told me their ongoing offers and also gave me a discount coupon. This enticed me to visit their restaurant.

Cato:

The real question is, what should we be looking for? There are 2 mega trends in mobile that marketers need to take note of. The first, the unwired community can be divided into low end users, those who use mobile solely to go online and the high end users, the iPhone users, who want 24 hour connectivity, interactivity and have high usage of apps.
The second is a shift from monologue to dialogue in marketing. This is not only for mobile but traditional media too. Mobile is not the future but is here today. All marketers need a mobile plan.

Jordan
: When embarking on your marketing plan, marketers need to know if mobile fits into their marketing strategy and if a mobile plan makes sense for your brand. Don’t jump into it for the sake of it.

What advice can you give to a marketer to develop their mobile site?


Cato:

Analyse what functions people want on the go, the most suitable time to launch your site and develop relevant applications for your product. The functions of your site will depend on your marketing objectives and the types of phones your customers use.

Stanley
:
It all depends on the nature of your business. For example, WAP is great for restaurants and younger brands should use apps as it is more engaging. It all depends on the objectives of the brand.

Jordan
:
Don’t expect pocket change to change the world. Mobile is not a cheap alternative for your marketing plan. Above all your content should be relevant and local.

What’s holding marketers back from introducing mobile strategies?


Pamela:

There are no case studies and statistics for marketers to base their work on. There will be a lot of hesitation until there is standardisation in all areas of the mobile industry.

Jordan
:
The lack of GRP ratings. Some also feel it requires too much effort for a small investment. On the issue of standardisation, if you wait for standardisation for the entire industry it may well be too late for your brand.

What was the tipping point for mobile?


Cato:

When the economy went down and people lacked resources, many turned to the Internet and mobile because traditional media is more expensive.

The second speaker of the day was Andreas Vogiatzakis, the Managing Director of Omnicom Media Group Malaysia. He touched on the topic ‘What is the importance of monetizing mobile and the role it plays in the marketing mix? How can mobile be used to reach the consumer's heart?’

Opening with some cold hard numbers, he stated that today, consumers are constantly connected, receive 7,000 to 8,000 messages a day and have more than 24 hours a day as they have mastered the skill of multi-tasking. Many of the consumers in the digital space are the younger generation. 67% of the Malaysian population itself is made up of those under the age of 25 years old.

Confirming that mass marketing today is dead, he goes on to explain that the new generation have 3 key motivators in life and that is to be part of a community, have the freedom of self-expression and have everything personalised to their needs.

The question is how do we make money from these young customers with mobile advertising while keeping them happy?

A few years ago, when Google became a verb, it was the only thing everyone really needed because everything could be “Googled”. Today Apple’s iPhone is all we need because there's an application for almost everything.

The fundamental principal with mobile is, the content must be relevant to consumers. Andreas goes on to explain the 4 key barriers to why mobile is not taking off:
  1. The lack of measurement and ROI capabilities
  2. Unfamiliarity with the media and its potential
  3. Dominance of “tested and proven” or traditional media
  4. Mobile is still known as‘The Road Less Travelled’
He then goes on to list the 5 key success factors:
  1. Be relevant and add value to consumers' lives
  2. Be transparent in dealings
  3. Enable ease of transaction for brand interaction
  4. Never compromise the privacy of customers
  5. Always request subscribers' permission because spam will resultin self destruction
The final session for the day saw major industry players discussing the topic ‘Positioning Mobile Website for Monetisation of Traffic and What Has Worked’. The panel was made up of Heather Wee, Head of Mobile Advertising & TV at Maxis; Tomas Bergqvist, from Digi's Mobile Marketing & Services, Strategy & New Business division; and Muthu Nedumaran, the founder of Murasu Systems Sdn Bhd.

What are the challenges telecommunication companies face in driving mobile websites and monetising it?

Muthu:

We constantly look for a solution to get more people to use mobile websites. I think mobile is facing the same problem as the Internet when it first started – everyone hesitated because no one knew what to expect. No one ever thought the Internet will evolve to become a tool our lives depend on. Instead, back then people were questioning if consumers will have time to spend reading a Website.

Tomas:

Creating awareness of your mobile site is crucial. As we know, people do not go to the apps store to browse applications. Instead they are there to get an application known to them to fulfil an existing need.

Heather:

Developing relevant and targeted creative banners that have a clear click for call. Attracting visitors to your site is vital to monetise your mobile site but is not a simple task and visitors need to be given a reason to visit your site.

Which is more beneficial for a brand: applications or WAP sites?


Tomas:

When it comes to applications, only iPhone has been successful at pushing these tools thus WAP sites would be your best option until iPhones becomes widely used.

Muthu:

The most important element is for either option to be personalised. When creating a WAP site, it is not just about recreating a Website on a mobile screen. It has to be created for easy and comfortable usage on a mobile phone. In any case, currently WAP gives better reach. In regards to apps, mobile operators never used to favour applications because of its complexity but the iPhone has changed that. In relation to monetisation, there is only one word to describe successful content and that is ‘viral’.

Overall speakers and panellists pointed to a need for clear mobile centric digital strategies that can help marketers create meaningful dialogue with the consumers. While there are many challenges to overcome, the path to growth of this sector is clear.
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