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Market Summary - Mobile

Media Update:

Mobile Marketplace Summary

Date:

QTR 3 2010

Sponsor:

IAB
IAB


At a Glance

Consumers love using their mobile for media. The below chart shows the enormous growth in the number of consumers accessing the mobile internet over the last few years- a trend we can expect to continue well into the future.

Rise in mobile internet use

Advertisers are investing in mobile as a medium. In 2009, £37.6m was spent on mobile advertising in the UK. That’s up 32.2% from 2008- outperforming every other media in what was a tough year for the advertising market.

Rise in Mobile Advertising

There has been a huge investment in the mobile industry in the last few months. Google’s CEO, Eric Schmidt has placed mobile ‘first’ in their company strategy- pushing mobile marketing to the top the agenda for tech companies and marketers alike.

Eric Schmidt


Case Study:

www.getmemedia.com/ideas/CompOpps.aspx?id=41

Email Contact:

jon@iabuk.net

Website:

http://www.iabuk.net/en/1/mobileadvertising.html

Hot Topics

1. Handsets get smarter

1 in 4 people in the UK now have a smartphone- that’s up 80% year-on-year. Over 6% of the UK population have an Iphone, and this is having a big impact on the way people use their phone, as 48% of mobile phone owners are using their mobile media. 

2. PAYM overtakes PAYG for the first time

57% of people are on pre pay contracts, as opposed to only 42% on pay as you go contracts. This often gives consumers easier access to cheaper data and a perceived freedom to use their phones beyond just voice and text. 

3. Unlimited usage continues to surge

The uptake of unlimited data plans has quadrupled over the last 2 years- and is up 135% year on year alone. Operators have made significant move towards offering unlimited data plans, which consumers appear to be making the most of. 

4. Consumers are going mobile

1 in 3 people in the UK have accessed the mobile internet in the last month, and 29% have used an application. These sessions are no longer just snacking- Yahoo!’s recent Appetite study showed that 77% of mobile internet sessions are longer than 5 minutes. 

5. Mobile usage is overtaking online

In many categories, consumers are spending longer on the mobile internet than they are online. In categories such as conversational media, directory/information websites and news/information websites on mobile than they are online. 

6. Social networking is huge

The trend for consumers to spend longer on the mobile internet that on the fixed line internet is particularly apparent in social networking. Users are spending 41.1 minutes a day looking at Facebook on their mobile, compared to 31.6 online. Likewise, with Twitter, where consumers spend more than twice as long on mobile (19.8 mins) than on the fixed line internet (7.9 mins). 

7. Budgets are starting to come onto mobile

We know that ad spend on mobile is growing- the market was worth £37.6m in 2009, up 32.2% year on year. This looks set to grow even more, when the IAB surveyed agencies, 73% agreed that mobile will be the fastest growing medium in the next 5 years.

8. Mobile commerce is here

There is huge potential for advertisers to tap into mobile as a transactional tool, and many players are already making the most of it. Mobile online payments through PayPal surged by 650% in 2009, and Ebay saw $500m sales through mobile in 2009 which they predicto to grow to $1.5bn in 2010. 

9. The big guns are heating up the market

There have been some recent changes to the mobile marketplace which is putting mobile into the spotlight. Both Google and Apple have recently acquired adnetworks, Admob and Quattro respectively. The network operators are all investing in mobile advertising, and new technologies such as iAd are making mobile advertising a dynamic marketplace.

10. Measurement has improved

The recent release of Comscore GSMA MM figures is a real worldwide first with important implications for the mobile advertising market. All of the network operators have come together with Comscore and the GSMA to give data about exactly what people are doing on the mobile internet. For the first time, we know which sites people are using on the mobile internet and for how long- allowing advertisers to easily include mobile advertising as part of their media plan.  

Sources: Comscore MMetrics 3 month average to March 10, Comscore GSMA MMM, Yahoo! Appetite. 


What is it?

Mobile is the most personalized and targeted media. There are a variety of ways you can use mobile to engage and interact with people, from mobile display advertising, to sms shortcodes on your ads to communicating to your customers via text.
Customers see mobile phones as being very different to other media

Perception map – Adjectives which users associate with different media

Source; Exposure 2, Orange UK, March 2009

How Does it Work

There are a range of ways you can use mobile to engage customers. Some examples include:

Banner advertising:
Banner advertising can raise awareness and encourage users to interact, visit www.iabuk.net for tips on how to make banner advertising successful

SMS:
SMS can be used in a range of ways, from shortcodes on ads to give consumers an easy an instant way to interact, to a way to maintain dialogue with your customers

Video:
Mobile video is a rapidly growing area, where brands can add pre/post-roll ads to add another aspect to their campaigns

Search:
Mobile search differs from online search – if you want your brand to appear in search results you need to optimise specifically for mobile. Both Google and Yahoo! are the main providers of mobile search.

Key Features & Benefits

Mobile Marketing is the only personal channel enabling spontaneous, direct, interactive and targeted communications at any time and in any place, its benefits include:

  • Highly targeted down to individual level
  • Ability to indentify location
  • Personal device
  • Can be used as a payment mechanism

Key Audience Strength

No other media has such a high penertaion- there are 72m mobile phones in the UK, and only 61m people.

Mobile offers a very attractive audience. Mobile internet is most likely to be used by 18-44’s, and amongst those who earn £45k+ a year. 

Mobile advertising audience breakdown

Source: Comscore MMetrics 3 month average to March 10

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