Consumers Will Accept Ad-Funded Mobile Video; Mobile Search Isn’t The Crowd-Pleaser We Thought
The new IBM Institute for Business Value’s online survey of more than 2,400 people over 18 years of age in the U.S., the U.K., Germany, Japan, and Australia is out and chock-full of figures on global usage and adoption of new multimedia devices and media and entertainment consumption on PCs, mobile phones, and other portable devices. (You can download it here. More details in this release.)
Empowered users don’t just want to take charge of their content experiences; they demand “consolidated, trustworthy content, recognition, and community when it comes to mobile and Internet entertainment,” the report said. This shift turns up the pressure on ad agencies to become brokers of consumer insights.
But the real surprise is user excitement about mobile search – or rather the lack of it.
Here’s my pick of the mobile-relevant highlights (for each country). Pay special attention to the mobile browsing habits and lukewarm to cold response to mobile search. Another trend: hard data confirming my observation that users increasingly gravitate to relevant and recommended content.
U.S. (Surveyed: 888)• To increase their usage of mobile and Internet entertainment users ask for consolidated content and thoughtful recommendations. Forty-one percent wanted a site that had everything, 21 percent wanted a niche site with specialized content; and 17 percent wanted a site that compiled recommendations.
• What do uses do with their mobile phones besides make calls? Mobile data isn’t a crowd pleaser. Eight percent access news, ports, and traffic content; 5 percent use mobile search.
• The impact of mobile advertising on users’ impressions of a product or company is minimal.
• Interest in ad-supported mobile video was mixed. Forty-six percent said they would watch advertising before or after free content; 25 percent would not watch mobile ads – or pay for mobile video.
U.K. (Surveyed: 559)• Consumers look for content relevant to their tastes and available at a single source. Thirty-nine percent want a site with everything; 23 percent want a niche site, and 10 percent prefer a site that makes recommendations.
• The majority of respondents use SMS services – but only 15 percent access news, sports, and weather; 9 percent use mobile search.
• Two percent say mobile ads impact their impression of a product or a company.
• Fifty percent would watch advertising before or after free content; 26 percent would not watch mobile ads or pay for mobile video; and 16 percent would pay a fee to receive quality ad-free video content.
Japan (Surveyed: 378)• Personalization tops the list of what Japanese respondents want from their content experiences. Only 25 percent want a one-stop site; 32 percent prefer niche sites; and 36 percent want a site that generates appropriate recommendations.
• Japanese love mobile data services. Forty-one percent check out news and other mobile content and a whopping 20 percent use mobile search.
• Mobile ads leave an impression on only 1 percent of respondents.
• Seventy-one percent would watch advertising before or after free content; 16 percent would not watch ads or pay for mobile video; and 11 percent would pay a monthly fee to get ad-free video content.
Germany (Surveyed: 338)• A single source of content is the priority for 57 percent of respondents; 12 percent want more specialized sites; and 10 percent desire personalized recommendations.
• Germans are just beginning to explore mobile data services. Nine percent are interested in news, sports, and traffic and 4 percent use mobile search.
• Mobile ads impressed only 1 percent of respondents.
• Fifty-two percent would watch ads before or after free content; 27 percent would not watch mobile ads or pay for mobile video; and 18 percent would pay a monthly fee to get quality content ad-free.
Australia (Surveyed: 263)• Thirty-seven percent would increase their content consumption if they had one site that had everything; 29 percent seek niche sites; and 9 percent would prefer a site that offered personalized recommendations.
• Australians are warming to mobile content – but ignore search. Fourteen percent use their phones to access news, sports, and weather; a mere 3 percent use mobile search.
• Mobile ads leave no impression – period.
• Fifty-four percent would endure ads for free content; 18 percent would not watch ads or pay for mobile video; and 8 percent would pay a monthly fee for ad-free video.
What jumps out? A very low use of mobile search across all counties except Japan and an untapped market opportunity offering users more personalized content from the Long Tail of hits and misses. (Perhaps this will change once more individual publishers make a push in the mobile Web). Finally, a business model blueprint: Offer users ad-free content for a price. A minority would pay for it at this point – but it just might pay off.
August 27th, 2007 at 11:40 pm
I disagree completely with conclusion that mobile search is not desired by consumers. Consumers will jump all over mobile search if the device and search interface are improved. The key is a larger screen and a touch based interface designed expressly for a touch based phone. GOOG would not have much of a business without a combo of user friendly interface, relevant results, mass market uptake of broadband connections. Mobile search – especially for sposnored oriented queries- in my opinion will have far more queries than desktop ever will and will prove much more lucrative.