CENTER STAGE: IAB’s Jon Mew Talks Mobile Advertising; Why The Money Is In Engagement » mobilegroove

Mobile advertising is the hot topic today. Apple will likely take the wraps off its mobile ad platform and may even confirm analyst suspicions that Apple will use the event to at least announce its intention to integrate an advertising platform into the iPhone SDK. As the battle lines are being drawn between Apple/Quattro and Google/AdMob, this post from John Furrier via Silicon Angle points out the only major and neutral ad network left is Millennial Media.

Silicon Angle is open about receiving support from companies including Millennial Media, so – any sponsor spin aside — there’s no arguing against the observation that “with Google and Apple having proprietary ad networks dedicated to their devices, the only big company that stands alone and independent is Millennial Media.”

However, John points out that there are many companies and even more startups (including Facebook and a slew of location-linked networks) that are sharply focused on monetizing apps and more.

Companies across the business ecosystem have to make some important choices. But it’s not just about deciding which camp or camps (translated: ad networks) meet their campaign objectives. In fact, it may be the overarching, all-inclusive model – one that defines a value chain, includes the mobile operators and facilitates the buying and selling of media – that brings the most benefit. (I’ll be in London early next week attending the global launch of a mobile advertising solution that aims to do precisely this. More detail when I return from the briefing.)

So, timed to the flurry of excitement and activity that will no doubt accompany Apple’s news today and the global launch next week, MSG and Netsize move on to another in our ongoing series to showcase a “best of” selection of executive interviews and hot topics that have everyone talking.

INTERVIEW WITH JON MEW

Mobile advertising is top of the list and I caught up with Jon Mew — Head of Mobile, Internet Advertising Bureau (IAB), the trade association for digital advertising in the U.K.– to discuss what it will take to jumpstart mobile advertising and unlock the potential we all know – and read– is there. Indeed, mobile continues to be the bright spot in many industry reports. This was certainly true in the U.K., according to the first-ever U.K. mobile ad spend figures published by the IAB. Among the key findings: GBP 28.6 million was spent on mobile in 2008, a figure almost double the previous year. Overall, investment in mobile advertising grew at a faster rate than predicted as more brands invested in the medium due to its exceptional targeting, immediacy and return on investment. What are the campaigns and formats likely to take it to the next level? Jon gives us his views.

***

Q: Mobile advertising is about experimentation but it’s also more about execution with more brands and agencies getting involved. How has this impacted the IAB and your mission?

A: Over the last two years we have seen a quick evolution of mobile advertising: Looking back at 2008, there was a 100 percent increase in mobile advertising spend. While we don’t have official figures for 2009, we’ve certainly seen that spend is still on the up.

Our mission has evolved with the market trend. In 2009 our focus was very much on delivering the fundamentals. It was all about showing the effectiveness of mobile, educating the market and helping companies understand who’s doing what on mobile.

That’s still going to be a focus for us moving forward. However, our mission is also expanding. It’s still about helping companies understand the basics in mobile; but it’s also about looking at how mobile integrates with other media. It’s also about looking at the connection with mobile commerce and how that is changing.

Q: Mobile allows a two-way conversation with consumers, so there is an opportunity to encourage real commerce. However, the feedback channel mobile offers could be harnessed to improve Customer Relationship Management (CRM) as well. Where to you see the growth opportunity?

A: I think they will both become a lot more important. To be honest, mobile commerce has been centered on mobile content. But the iPhone and the App Store have gone a long way to prove that, when you get them the model right, people are quite happy buying stuff on their phones.

If we draw a parallel to the Internet, advertising and marketing took off when e-commerce took off. That was the point when brands realized they could go the whole journey, from getting people to interact with the brand to engaging them through to the final purchase. As far as mobile CRM goes, it will definitely increase, just as we have seen it increase online. After all, marketing via mobile is changing. It’s more about engaging customers and building a dialogue, than making a pitch.

Q: Who “gets” mobile, in your opinion? What are examples of campaigns that set the bar?

A: Nike has done some fantastic stuff. They have thought about the context in which consumers use mobile and built solutions that work better on mobile than on any other media. Take Nike Bootcamp, an award-winning campaign centered on teaching and training consumers. It included a free-to-download app complete with a range of training aids, allowing users to improve tempo, speed and performance. It also let users record test scores and results and receive daily and weekly training reminders.

Other good campaigns emphasize engaging with customer. Walkers [a U.K.-based maker of snack foods] have also done some fantastic campaigns. One that stands out asked consumers to suggest names for a new flavor of potato chips, using mobile and online as a response mechanism. The brand also got customers to vote for the flavor they wanted most. When you interact with your customers in this way, as this brand did, it’s also a clever way of thinking because you’re encouraging people to select what they would pay for. It’s valuable input from the customers that confirms you are launching a product that’s likely to do very well.

Indeed, there are many examples. But there is also a set of common characteristics that distinguish a good mobile campaign. They tend to be personalized, innovative and useful.

Q: Where does that leave text messaging? It’s the most popular format now. How will that be moving forward?

A: Text messaging is still really important because it’s what everyone can do with their phones. The stuff that tends to excite brands more is the new stuff and cool new technologies such as AR [Augmented Reality]. But the reality is text is still what is most valuable and useful to consumers. There is also a lot of potential in mobile vouchers and coupons, particularly for FMCG [Fast Moving Consumer Goods] brands. It’s still quite early days – at least in the U.K. – for QR codes and 2-D barcode campaigns.

We’ve also asked our members about apps and companies have definitely gone app crazy. They are particularly excited about branded apps, so I think there will be massive growth in this in the next year or so. Personally, I’m not sure that will continue forever. Once the browsers get better on mobile devices, then you start to question why you’d want to put effort into building an app when you could build something for a browser that would be accessible on every handset.

Q: Brands and agencies are more involved in mobile advertising. Are they noticing new or additional obstacles that were less obvious last year when many were just dipping their toe in the water?

A: Judging from the feedback we get and the research we do amongst our members, the number one barrier is lack of understanding. In the case of mobile advertising – and even more so with mobile commerce – brands just aren’t aware of what’s possible with mobile.

Of course, there are other barriers, such as convincing companies to put in the effort to build a separate mobile strategy and a mobile Web presence. But the number one barrier is just getting companies to understand what they can do with mobile.

Q: That’s a particularly interesting observation because it dovetails well with the findings of the Netsize Mobile Marketing Survey. Respondents also reported lack of understanding was a barrier. How can companies close this skills gap?

A: I think there’s an onus on everyone involved in the marketing and media industries to make an effort to better understand mobile. Mobile advertising and marketing is growing and, if people don’t make the effort to understand and utilize it, then they’ll be left behind.

Again, we have to look at the fixed Internet. Almost a decade ago we saw the emergence of online agencies because traditional media agencies weren’t really including digital in what they were doing. The same is starting to happen in mobile and you’re seeing more traditional agencies starting to partner with mobile companies and even acquiring companies for their mobile expertise.

DOWNLOAD THE GUIDE

The Netsize Guide – which features exclusive interviews with 28 industry senior executives at leading companies and organizations including Havas, M&S, MMA, Nokia NAVTEQ, PayPal and Sony Music Entertainment — provides unique perspectives and reveals how players across the mobile ecosystem are preparing to meet the challenges and take advantage of the opportunities ahead.

The Netsize Guide 2010 also includes the results of Mobile Trends Survey 2010, an online survey asking +1,000 mobile professionals and practitioners across 67 countries their views on these key themes and their insights into trends that top the industry agenda, including the advance of mobile applications stores, progress towards global mobile commerce and the increasing importance of mobile across a range of business verticals.

Finally, the Netsize Guide 2010 presents detailed data on the wireless telecoms sector in 41 countries, including revenues, market shares and value-added service offerings for messaging and billing of 194 mobile network operators worldwide.

DOWNLOAD YOUR FREE NETSIZE GUIDE HERE.

Disclaimer: Netsize is an MSG supporter. Peggy Anne Salz is author of the Netsize Guide 2010.

Tags: 2D barcodes, AdMob, Android, app store, Apple, augmented reality, barcode, Facebook, Google, IAB U.K., iPhone, Mobile Advertising U.K., mobile commerce Nike Bootcamp, mobile CRM, Mobile Marketing, Netsize Guide 2010, Nike, Walkers

This entry was posted on Thursday, April 8th, 2010 at 2:46 pm and is filed under Barcodes, Briefing Rooms, Featured, Mobile Marketing, Netsize. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.