There is no question that wireless Internet access in Asia is going
to be enormous.
BDA China estimates that up to six million people in China alone will be
accessing the Internet via a wireless device by 2002. Currently there
are 10 million wireless Internet users in Japan alone.
Wireless Internet development across Asia will be different from other
regions given Asia's limited landline infrastructure and limited
computer-based Internet usage. Because of these limitations, mobile
phone usage is very high, and, therefore, it's likely that over time,
wireless will emerge as the dominant means of accessing the Internet in
Asia. It may also be the first exposure of a larger portion of the Asian
population has to the Internet.
As the mobile Internet access market grows, wireless advertising will
play an increasingly important role in the business plans of both mobile
carriers and content providers. For content providers, advertising and
mobile commerce will be critical to their success, as the number of paid
subscription sites will make up only a small portion of the available
inventory. In this environment, advertising and subscription will
co-exist.
A good example of this can be seen in Japan. NTT DoCoMo has over 500
sites on their main menu and only a small portion of these are
subscription-based. Recently, DoCoMo announced that they would begin
supporting advertising on their menu sites to help generate revenue.
We're already beginning to see advertisers and mobile carriers
experimenting with different forms of mobile advertising. Examples of
early forms of wireless Internet adverting include text based messages,
small graphics, and offers that are redeemable at stores.
The technology to deliver a wireless ad already exists.
The real challenge ahead is in identifying an ad model which works
effectively for the advertiser, while bringing value to the mobile
user's experience.
Four factors will influence the success of mobile advertising:
- Value: The personal nature of wireless devices demands that wireless
advertising carry value for the end user. This value will take multiple
forms.
Some advertising will offer coupons and promotions.
Others will take the form of subsidies that allow users to access
content for free or help reduce their mobile phone bills.
- Standards: We've learned from the development of the Web as a
marketing medium that no new medium can develop in the absence of
standards. Standards need to be developed for both creative and
advertising measurement. Once in place, standards will allow advertisers
to buy the same creative model around the world, and receive reports on
the effectiveness of the campaign.
- Accountability: The availability of accountability tools has become
increasingly important to marketers attempting to maximise the
effectiveness of their advertising campaigns. The growth of Web
advertising is primarily fuelled by the ability of advertisers to
measure and analyse the effectiveness and ROI of their campaigns. For
wireless advertising to mature as a medium, the ability to measure
effectiveness will be extremely important.
- Targeting: Due to the personal nature of mobile devices, and the small
screen sizes, advertising must be relevant to the user. In every digital
medium, the ability to segment and target an audience is a key concern
for advertisers. This will be accomplished by targeting ads to users who
have opted in for advertising services, or that have expressed affinity
for certain types of products/services through Web registration, or
through their behaviour.
Wireless advertising, in its infancy today, will develop into a very
powerful marketing medium that allows advertisers to develop closer
relationships with their customers. Currently, however, there is a great
deal of hype about how quickly this medium will develop and which ad
models will dominate.
Setting these false expectation levels runs the risk of damaging the
credibility of the medium as a marketing vehicle.
It's important now for advertisers to focus on marketplace realities and
wireless advertising solutions that are viable today while also building
and testing models for the future.
