“The continued development of next generation networks and the ongoing evolution of multimedia handsets such as Apple’s hugely popular iPhone will also increase subscribers’ purchase of high-value data services. Meanwhile, the potentially lucrative mobile music market appears to be hotting up too, with the likes of Vodafone and Nokia having announced ambitious investments in 2007.
“However, boom could well become bust this year for operators that carelessly expose their customers to mobile advertising, as businesses become more aware of the medium’s potential. A 2007 Pontis survey revealed that the mobile network is a powerful channel for advertising, with 11% of mobile user respondents stating they would buy products as a result of receiving an offer from their operator – a much better return rate than most other advertising and direct marketing formats.
“But that same survey also found that 70% found mobile marketing campaigns totally irrelevant to them, whilst two thirds are fed up with mobile phone spam – and this is where the danger lies: disgruntled customers switching to a mobile provider with a more suitable mobile advertising strategy.
“Several analysts have commented on the fact that mobile operators are still not able to sufficiently segment and understand their customer base. Sending the right content to the right people is key for the success of any marketing campaign, and if mobile operators want to sign-up the big brands that offer big money for mobile advertising, they need to understand and manage customer preferences and permissions. Otherwise both their bottom line and brand will suffer significantly this year.”