Just because it’s mainstream, it doesn’t mean it’s boring: An agency perspective on the US mobile marketing industry

Editor’s Note: Welcome to Reality Check, a feature for RCR Wireless News’ new weekly e-mail service, Mobile Content and Culture. We’ve gathered a group of visionaries and veterans in the mobile content industry to give their insights into the marketplace. In the coming weeks look for columns from Tom Huseby of SeaPoint Ventures, Mark Desautels of CTIA and more.
Early in the New Year, it is time to assess the state of the industry and get the industry leaders commentaries on what the year holds. For this column, I touched base with a few of the leaders in the agency space to get their take on where we are headed with mobile marketing in 2008. My original intent for this column was to compare a person’s time in mobile to dog years — as time either stands still or we put on more years in the short period of time that we have been immersed. All those that I spoke with feel they are 7 – 18 in dog years. Don’t know about you readers, but some days, maybe those after walking the floors of Mobile World Congress, I feel much older.
So is the future bright for mobile marketing in the United States in 2008? According to Courtney Acuff from denuo, a Publicis Groupe Company, “We are beyond the introductory stage but we still have a long way to go. Internal and client education is still necessary, a task that isn’t as easy as it sounds given the plethora of companies in the ecosystem today.”
And, from Maria Mandel, Ogilvy, similar thoughts about the mobile marketing industry in the United States. “We have come a long way in mobile, but we have a long way to go,” she says. “The mobile industry seems to think we are way ahead but in terms of total spend, we are only just beginning. There is lots of education to do.”
The factors
So what is holding us back for broad scale mobile marketing in the United States?
–Reach
Although we are seeing significant adoption of wireless services, the consumer is only just beginning to interact with their favorite brands through their mobile devices. We also need to encourage broader adoption of more advanced data services — mobile web, MMS, video and television, etc. Only by expanding reach can we optimize the always on, always available mobile channel.
–Complexity of Mobile Programs
Developing applications for each handset and operating system is very complex, depending on what you are trying to do. WAP sites/downloads add their own complexities.
–Measurement
Industry standard metrics and measurements are only just beginning (based on work from organizations like the Mobile Marketing Association). But the consistency of measurements are only the beginning. Category-specific benchmarks will be key as the media channel continues to mature and then, understanding mobile’s impact in cross media will also be key. Mobile is the bridge to engagement and understanding the metrics around it will only help encourage adoption.
–Operators
From each agency I spoke with, more than are referenced here in this article, each asked to work with the wireless operators to help get the industry further aligned and expedite timelines for the large brands. Then there is the topic of revenue shares and making the rev share deals optimal for all in the value chain.
–Mobile’s fit in the brand spend
And perhaps one of the largest impediments to brands spending money is the fact that mobile is not a separate budget line item, but instead competes with interactive dollars. For 2008 mobile is becoming a line item for some companies but how do we raise the overall awareness to have mobile highlighted?
What’s working today? According to Mandel, we should be talking about what is here, now and ubiquitous but we tend to jump to the “sexy” applications — video, location services, etc. Overall we are doing a disservice to the industry by talking about future opportunities, which often cause the new entrants to miss the tried and true — SMS, mobile media and voice. Each of these wireless media types are seeing enormous interest and significant interactions from brands and consumer alike. Let’s focus on the mobile elements which are driving ROI for the brands that are engaging them. “Just because it is mainstream, doesn’t mean that it’s boring,” says Mandel. Similar to the article I wrote last year for RCR Wireless News, voice is often overlooked and for certain demographics, it really makes sense. Key is selection of media depends on target audience and what you are trying to achieve.
What have some of the successes been in mobile marketing to date:
–ROI (Return on Investment)