Consumers’ first reaction is to reject mobile phone advertising, unless it is of some specific use to them, according to Mobile Advertising: Not as Bad as You Think – a report from Cahners In-Stat originally published in July 2001.
The study found that 64% of Cahners’ Wireless Internet Panel (WIP) respondents are not enamoured with the concept of mobile advertising, presenting a gloomy outlook for advertisers. However, Cahners says that reactions from the same set of people also suggest that ads which provide some benefit to the user are likely to be more successful. Special offers and discounts on products are suggested as examples of this.
The US wireless internet market is still very small – just over 5 million users (or 5% of mobile customers) at the present time. However, a recent report by IDC forecasts that the market will swell to reach 84 million customers by 2005. For advertisers this clearly a burgeoning potential and both telcos and advertisers alike will be keen to improve the consumer’s opinion of mobile ads.
“Just as sales drive consumers to stores, special savings will lure consumers in, and will make the whole process of receiving mobile ads more palatable to users,” says Becky Diercks, director of wireless research, adding that consumers will not warmly embrace the new technology in the beginning.
The Cahners research also found that users want the option to choose which firms deliver ads to their phones in advance, adding another obstacle in the development of wireless advertising.
