Low Tech is High Tech in Mobile?

Posted by Adam B. Needles at 1:22 PM

I was doing research on the state of mobile marketing -- exploring recent developments in the medium, especially from a mobile-Internet perspective -- when I ran across some startling data.

We're currently in the era of the iPhone -- a device many consider to be cutting-edge innovation. It certainly has bells and whistles. And the ability of the device to view and interact with rich media -- upside-down/inside-out/etc. -- is amazing.

Yet SMS and voice reign king in the mobile world:

> 80% of mobile operator revenues comes from voice services, according to industry analyst group Yankee Group in an article in Telephony magazine.

> Mobile text campaigns regularly get 10X better return than those using rich media, according to the CEO of Limbo in a BrandWeek article.

> An iPhone user is 70% more likely to use SMS, according to Nielsen Mobile in the same BrandWeek article.

How to reconcile this insight? Apple has innovated the iPhone interface in ways that are pretty impressive when you see them demonstrated. But good old-fashioned text-based messaging and phone conversations still dominate. Really.

What are thoughts on this? And what insights does this provide in the emerging iPhone vs. BlackBerry contest?

 

5 comments:

  1. Jeffrey Xie said... October 21, 2008 at 2:59 PM

    Interesting... and don't forget Google Phone, which i think is very promising  

  2. John Rotheray said... October 21, 2008 at 3:03 PM

    The main issue is that mobile advertising is still in its infancy today so there aren't any standards yet.

    Research indicates consumers do not seem eager to embrace it: just 10% said they would be willing to watch ads in exchange for free or discounted services.

    Leading analysts predict that these attitudes are likely to change as consumers upgrade to phones with larger color screens and acquire broadband data service.  

  3. Adam B. Needles said... October 23, 2008 at 12:31 PM

    @ John - I think at the core of your comment is the core question: Is mobile ADVERTISING really compelling? I'd like to challenge marketers to think interactive and two-way in how they market via mobile.

    @ Jeffrey - Good call-out.

    I actually talk about Google Android and also this bigger issue about mobile marketing in a new blog post today at my Propelling Brands blog:

    http://propellingbrands.wordpress.com/2008/10/23/changing-how-you-think-about-marketing-to-your-mobile-brand-community/  

  4. Principlessa2222 said... October 23, 2008 at 5:08 PM

    I agree with Adam's comment. Too often we think of advertising as an interruption. There is sigificant value in providing weather alerts sponsored by PUR water to developing countries. Sponsored content provides value to consumers and brand recognition.

    Consumers are willing to embrace mobile advertising if it creates value for them. Understanding the consumer will help make mobile communication more relevant and personal.  

  5. Adam B. Needles said... October 24, 2008 at 5:17 PM

    @ Giustina - Bingo!

    Seriously. It's time that we migrated discussion about mobile marketing away from mobile advertising.  

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