Mobile Marketing Market Assessment 2009
Key Note Publications Ltd, October 2009, Pages: 123
`Mobile is typically the glue that can bind together virtually any campaign element.' This comment from Mobile Interactive Group's (MIG's) Head of Mobile Marketing, Tim Dunn, made in response to a question posed by the authors, typifies how the industry sees mobile marketing.
Although mobile marketing has not yet come of age, the first confident steps are being taken and are beginning to be noticed. The Internet Advertising Bureau (IAB) has extended its data collection to include mobile marketing and, with the consultancy firm PricewaterhouseCoopers (PwC), has published the most dependable estimate of market size to date. For the first time, mobile marketing, the potential of which has been much talked of for years, has reached the bottom rung of the advertising expenditure ladder, with expenditure in 2008 having reached a sufficient level to allow meaningful comparison with other marketing sectors.
Moreover, mobile marketing can be seen to be bucking the trend. While expenditure in almost every other medium is declining, mobile marketing expenditure is growing, albeit from a comparatively small base.
There are several key drivers of growth, not least of which is the fact that the underlying technology is catching up with the need; but more than that, the technology is opening up possibilities that had not even been thought of until relatively recently. As advertisers wake up to the possibilities presented on the Internet by the social networking phenomenon, they are excited by its move to mobile, making this ever-present, ever-on technology even more desirable. Furthermore, with mobile devices becoming like mini-computers, with their own operating systems — as evidenced by the emergence of the iPhone and similar `smartphones' — there are thousands of downloadable applications available to users and thousands of branding opportunities. Virtual pints of beer and virtual lighters have already been exploited by brands.
Just as mainstream media is dependent on the platform owners (television companies, magazine publishers and so on), so mobile marketing is dependent on network operators and handset manufacturers to provide the delivery channel. The difficulties for marketers lie in the diverse standards used; i.e. there is no uniformity and campaigns have to be tailored according to the limitations of the delivery channel. The industry is working hard to redress this, with industry representatives encouraging co-operation and solutions developers providing products that enable cross-platform adserving (i.e. the delivery of advertising to Web pages).
The mobile phone is ubiquitous — penetration of the UK population exceeds 100% — which should make it almost irresistible to advertisers. However, industry regulations are also in force here and unsolicited text messages are covered by the same rulings as unsolicited e-mails. Customers must agree to receive advertising and they are unlikely to do so unless they receive something in exchange.
In addition, advertisers understand that the way in which mobile phones are used by the different age groups and social grades is not the same, and penetration of mobile broadband is still relatively low. It is highest among the younger age groups and the AB social grades but still accounts for a small percentage of the total market. The relatively high costs of producing a
multi-platform mobile video campaign, for example, might not generate the desired return on investment (ROI) when it can only be delivered to a relatively small audience, which can be reached more quickly and at a lower cost using other marketing channels.
Nevertheless, when used as part of a multimedia campaign, mobile marketing has a lot to offer, especially as a direct-response mechanism, and it is here where most growth is likely to lie. Even so, it remains very much the newcomer and, despite some very successful mobile campaigns, many advertisers are still unaware of just what it can offer them.
However, the kind of consolidation offered by the potential merger in the UK between Orange and T-Mobile would provide a rosy future for advertisers as, with fewer operators with which to negotiate, running mobile campaigns would become more straightforward.
This Market Assessment report examines the main aspects of the industry, from network operators and mobile manufacturers to adserving platforms and the marketing agencies that originate the campaigns.
Executive Summary
1. Introduction
REPORT FOCUS
DEFINITIONS
Mobile Marketing
Networks
Connectivity
Smartphones
Operating Systems
2. Strategic Overview
MARKET DYNAMICS AND SEGMENTATION
Market Size
By Volume
Mobile Phones and Services
Table 2.1: Ownership of Mobile Phones in Great Britain
by Number of Owners in Household (% of households), 2008
Table 2.2: Monthly Mobile Broadband Sales in Great Britain
(000 connections), February 2008-May 2009
Table 2.3: Take-Up of Mobile Broadband by Age, Social Grade
and Type of Accommodation in the UK (%), First Quarter 2009
Table 2.4: UK Mobile Internet Users (million)
First Quarter 2008-First Quarter 2009
Table 2.5: Unit Sales of Smartphones and Sales as a Percentage of Total Handset
Sales in Great Britain (million and %), First Quarter 2008-First Quarter 2009
Table 2.6: UK Volume of SMS and MMS Messages Sent
by Network Operator by Quarter (million), 2008
Mobile Advertisements
Table 2.7: Number of UK, US and Global Advertisements
Requested from Mobile Phones, June 2008 and 2009
Table 2.8: Smartphones’ Share of UK Advertising Traffic by Manufacturer
and Operating System (% of advertising requests from mobile devices), June 2009
Table 2.9: Share of UK Advertising Requests by Handset Model (%), June 2009
By Value
Mobile Advertising
Table 2.10: UK Mobile Advertising Expenditure by Type (£m and %), 2008
Figure 2.1: UK Mobile Advertising Expenditure by Type (%) 2008
Table 2.11: All Advertising Expenditure by Type (£m and %), 2008
Industry Issues
DISTRIBUTION
Table 2.12: UK Digital Communications Service Availability
(% of population), 2007 and 2008
COMPETITIVE STRUCTURE
Network Operators
Mobile-Phone Manufacturers
Adserving Networks/Aggregators
Specialist Mobile Advertising Agencies/Mobile Planners/Buyers
Social Networking for Mobile
Table 2.13: The Top Ten UK Mobile Social Network Sites
by Number of Subscribers and Share of Mobile Internet Reach
(000 and %), Second Quarter 2009
Mobile Sector Awards
14th GSMA Global Mobile Awards 2009
Mobile News Awards March 2009
VisionGain Mobile Advertising and Marketing Awards 2009
2008 Global Mobile Marketing Awards (EMEA Region Winners)
THE CONSUMER
Mobile Internet Usage
Table 2.14: Top Activities Among iPhone Users, All Smartphone Users and
All Mobile Phone Users in the UK (%), 3-Month Average Ending January 2009
Table 2.15: The Top Ten Mobile Sites Compared with the Top Ten
Internet Sites, December 2008
Mobile Consumers’ Behaviour in the Recession
Table 2.16: UK Consumer Priorities With Regard to Spending Cutbacks
(% of respondents), 2009
Mobile Applications
Table 2.17: Distribution of AdMob iPhone Applications
(number and %), May 2009
MARKET FORECASTS
Market Size
Future Technology
3. Mobile Manufacturers and Networks
BACKGROUND
Mobile Internet Domain Names
MARKET SIZE
Mobile Phones
Table 3:1 Mobile-Phone Shipments by Vendor by Volume
and Market Share (million units and %),
Second Quarter 2008 and 2009
Smartphones
Table 3.2: Worldwide Smartphone Sales to End Users by Vendor
by Volume (000 units and %), 2007 and 2008
Table 3.3: Worldwide Smartphone Sales to End Users by Operating System
by Volume (000 units and %), 2007 and 2008
SECTOR PROFILE
Marketplace Consolidation
Table 3.4: US Merger and Acquisition Activity in the Media, Information,
Marketing Services and Related Technologies Sectors by Number of Deals
and Transaction Value (number and $m), First Half 2008 and 2009
Network Advertising
MARKETING ACTIVITY
Table 3.5: Main Media Advertising Expenditure on Computer
Handheld Units (£000), Years Ending June 2008 and 2009
COMPETITIVE STRUCTURE
Manufacturers
Network Operators
Market Share
Table 3.6: UK Mobile Network Operators by Number of Subscriptions
and Market Share (000 and %), 2008
4. Mobile Advertising Service Providers
BACKGROUND
Regulation
SECTOR PROFILE
Advertising Models
Table 4.1: Advantages and Disadvantages to Mobile Service Providers
of Different Mobile-Advertising Models
Trade Organisations
Association for Interactive Media & Entertainment
Groupe Spéciale Mobile Association
Internet Advertising Bureau
Mobile Data Association
Mobile Marketing Association
MARKETING ACTIVITY
Press
Trade Shows
COMPETITIVE STRUCTURE
Adserving Networks
Aggregators
5. Mobile Marketing Agencies
BACKGROUND
MARKET SIZE
Table 5.1: The Top Ten Interactive Marketing Agencies by UK Fee Income
from Digital Media Technology (£), 2008
Table 5.2: UK Mobile Advertising Expenditure by Type (£m and %), 2008
CASE STUDIES
Bookstart
Doritos
Honda Insight
Adobe MAX Conference
National Express East Coast Trains
INDUSTRY ISSUES
COMPETITIVE STRUCTURE
6. An International Perspective
MOBILE PHONE PENETRATION
Table 6.1: The Top Ten Global Territories by Mobile Phone Penetration
and Number of Subscribers (% and million), 2008
Table 6.2: The Lowest Global Territories by Mobile Phone Penetration
and Number of Subscribers (% and million), 2008
MARKET GROWTH
MOBILE WORLD CONGRESS
AWARDS
7. PEST Analysis
POLITICAL FACTORS
ECONOMIC FACTORS
SOCIAL FACTORS
TECHNOLOGICAL FACTORS
8. Industry Dynamics
INTRODUCTION
INDUSTRY INSIGHT
Has the Recession Slowed Down Advances in Mobile Marketing?
If so, in What Ways?
In Addition to the Advent of Smartphones, What do You See as the Main
Developments in Mobile Marketing Over the Past 2 Years?
What are the Main Constraints of Mobile for Advertisers?
For Which Industry Sectors is Interactive Mobile Marketing Best Suited?
Which Industry Sectors are Already Utilising Mobile Marketing Effectively?
Which are Falling Behind?
How do You Think B2B Advertisers Can Best Benefit from Mobile Advertising?
Are There Any New Ways in Which SMS Marketing Can be Developed or Does
the Future for Mobile Marketing Lie in Interactive and Web-Based Solutions?
How Well Can Mobile Marketing be Integrated Within General Marketing
Campaigns? Is There a Particularly Strong Combination (e.g. Outdoor and
Mobile, Internet and Mobile, etc.)?
What Do You Think Will be the Three Main Developments for Mobile
Advertisers in the Next 2 or 3 Years?
Finally, What is the Best Advice You Would Give to an Advertiser Thinking
About Creating a Mobile Advertising Campaign?
9. Company Profiles
INTRODUCTION
2ERGO GROUP PLC
Table 9.1: Financial Results for 2ergo Group PLC (£000),
Years Ending 31st August 2006-2008
HUTCHISON 3G UK LTD
Table 9.2: Financial Results for Hutchison 3G UK Ltd (£000),
Years Ending 31st December 2006-2008
INCENTIVATED LTD
MOBILE INTERACTIVE GROUP LTD
Table 9.3: Financial Results for Mobile Interactive Group Ltd (£000),
Years Ending 30th April 2006-2008
NOKIA UK LTD
Table 9.4: Financial Results for Nokia UK Ltd (£000), 31st December 2006-2008
SYMBIAN FOUNDATION LTD
Table 9.5: Financial Results for Symbian Ltd (£000),
Years Ending 31st December 2006 and 2007, and 26th December 2008
VELTI PLC
Table 9.6: Financial Results for Velti PLC (£000),
Years Ending 31st December 2006-2008
10. The Future
PENETRATION OF THE MARKETING BUDGET
Digital Marketing Share
Table 10.1: Forecast Trends in Digital Marketing’s Share of the
Marketing Budget (% of respondents), 2008/2009-2010/2011
Mobile Marketing Share
Table 10.2: Forecast Trends in Mobile Marketing’s Share of the Digital
Marketing Budget (% of respondents), 2008/2009-2010/2011
Table 10.3: Forecast Trends in Mobile Marketing Tactics
(% of respondents), 2008/2009-2010/2011
MARKET SIZE FORECASTS
Table 10.4: Forecast UK Mobile Advertising Expenditure by Type
(£m), 2009-2014
Figure 10.1: Forecast UK Mobile Advertising Expenditure (£m), 2009-2014
11. Further Sources
Associations
Publications
General Sources
Government Sources
Other Sources
Key Note Sources
Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region
- 2ERGO GROUP PLC
- HUTCHISON 3G UK LTD
- INCENTIVATED LTD
- MOBILE INTERACTIVE GROUP LTD
- NOKIA UK LTD
- SYMBIAN FOUNDATION LTD
- VELTI PLC
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
