Mobile Market Research

7 MOBILE

7.1 Response to Mobile Marketing According to a November 2007 survey by the Mobile Marketing Association (www.mmaglobal.com), about 25% of U.S. mobile users have opted-in for some type of mobile marketing. Among this group, the types of marketing programs participated in have been as follows: • Participated interactively in sweepstakes or voting campaigns: 45% • Received status alerts about account or products purchased: 33% • Received advertisements for products or services: 24% • Received information about new products or services: 23% • Downloaded ringtones, wallpaper, or games based on new book, recording artists, etc.: 21% • Received alerts for special sales or discounts on products or services: 16% • Obtained mobile coupons that could be redeemed at stores or restaurants: 10% According to a survey by the Direct Marketing Association (www.the-dma.org), the following percentages of mobile users ages 15 and older have responded to various types of mobile phone offers: • A text message for a product or service: 17% • Surveys sent to a mobile phone: 10% • An e-mail offer for a product or service: 7% • A web offer on mobile phone’s Internet browser: 5% • A coupon offer for a product or service: 4%

7.2 Market Assessment and Forecast Mobile advertising spending is assessed by eMarketer (www.emarketer.com) as follows: • • • • • •

2007: 2008: 2009: 2010: 2011: 2012:

M obile M essage Ad

M obile Display Ad

M obile Search Ad

$ 810 million $1.47 billion $2.38 billion $3.06 billion $3.83 billion $4.50 billion

$ 34 million $ 85 million $186 million $327 million $453 million $541 million

$ 35 million $ 107 million $ 242 million $ 531 million $ 910 million $1.48 billion

Total

$ 878 million $1.66 billion $2.81 billion $3.92 billion $5.19 billion $6.52 billion

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A survey by iMedia Connection (www.imediaconnection.com) found that two-thirds of online marketers planned to do no more than dabble in mobile marketing in 2008. _________________________________________________________________

“Of every marketing dollar spent on mobile in 2007, 95¢ was testing the water. This year it will be more like 80¢. By 2009, it will be its own line item.” John Gauntt, Senior Analyst eMarketer Brandweek, 12/31/07 _________________________________________________________________

Nielsen Mobile (www.nielsenmobile.com) reported that 58 million U.S. mobile subscribers, or 23% of all subscribers, viewed an ad on their mobile phone in February 2008 alone; 28 million responded at least once to a mobile ad. The Mobile Advertising Report, by GfK NOP Research (www.gfknop.com), reported the following percentages of mobile phone users saw a mobile ad in 2007: • SMS (text, short message service): 17% • MMS (video, multimedia messaging service): 9% • WAP (wireless application protocol): 8% • Mobile TV or video: 5% • Mobile radio: 3% The problem, according to BusinessWeek, is that advertisers don’t know what users are doing, if anything, when they see ads.

7.3 Incentives for Mobile Ads According to a survey by Harris Interactive (www.harrisinteractive.com) conducted in June 2008, 56% of teen and 37% of adult cell phone users would be willing to accept incentive-based advertisements. Among these groups, preferences are as follows: • • • • •

Financial incentives, cash: Free minutes: Entertainment downloads: Music downloads: Discount coupons:

Teens

Adults

70% 53% 61% 57% 44%

80% 49% 31% 24% 37%

A 2007 survey by Nielsen Mobile found two-thirds of mobile users feel ads are a fair price to pay for free music content.

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