We just spent an enjoyable afternoon at the MTM London Mobile Advertising Roundtable, a private event for marketers. MTM assembled an excellent panel (who shall remain nameless – Chatham House Rules ) to analyze the state of mobile advertising, its drivers, obstacles to growth and forecasts.
The themes echoed those of recent Mobile Marketing Forum [http://www.mobilemarketingforum.com/] events:
- Growth in mobile web usage
- Growth in mobile ad inventory supply
- Growth in demand from advertisers
- Frustration that we’re not on Easy Street yet
Everyone in the room can taste the money but everyone is equally frustrated by the pace of the market. Each part of the value chain tends to blame the others for slowing things down.
Advertisers blame the media agencies for lack of metrics and ROI cases.
“Until you show me the return – and an infrastructure for buying, trading and reporting – I’ll keep my budget in online.”
Agencies blame the publishers and ad networks for making it so hard to buy.
“It takes me a few hours to buy £5 million worth of TV and four days to spend £30k in mobile.”
Mobile publishers blame the brands and agencies for lack of vision.
“The opportunities are here now. It’s time to move into properly funded campaigns.”
All this is carping against a context of general excitement. Everyone in the room knows we’re on the ground floor of a skyscraper-in-progress. But nobody is sure what the finished building will look like; just that it will involve a large degree of up-ness.
A few insights:
- Beyond the ring tone – In the UK, the advertising action is still coming from the mobile content providers (ring tones, wallpapers, games) who recognize that a mobile ad is a click away from a sale (and can still get cheap keywords to drive the transactions). But everyone wants the “real brands” to kick start the next market phase.
The other hand is still free. The dirty secret of all things online: adult content still leads the pack but not as much as everyone thinks (about 20% of searches according to one company who ought to know) but things like social networks and entertainment are catching up.
The ad-funded model is here to stay. The UK is a bit behind the US but it feels like the UK has turned a corner. Publishers no longer need convincing to open up mobile inventory.
The mobile web is where it’s at. SMS has had its day and may always have a role, but the future is coded in HTML.
Beyond click-throughs. Everyone seems wary about relying on the superior click-through rates that mobile campaigns are delivering. Many feel the current rates are unsustainable and due largely to the novelty factor. Others recognise that it’s what happens beyond the click-through that will determine the brand’s willingness to invest.
It’s like being in the first 6-12 months of the Internet bubble but without the hysteria. Just about everyone in the room lived through the first bubble and there’s no appetite – and not as much venture capital – for another.
Overall, an excellent event. Thanks MTM.
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