Commentary

Bullish On Mobile

I've been thinking a lot about cell phones lately.  I was the very last person I know to get a device with the functionality of "email in my pocket;" I got an iPhone last summer, waiting first for the new generation that synched with Outlook, and then for the lines at the Apple store to abate.  If you have an iPhone, then you'll know what I mean when I say it ranks second to your spouse as the thing you most complain about but love the dickens out of.

I've also been thinking about cell phones because of the growing phenomena, which I've written about before, of the cell-only and cell-primary household.  According to the latest results (January through June 2008) of the CDC's twice-annual NHIS survey, 16.1% of U.S. adults live in a cell-phone-only household -- no landlines -- while another 14.4% have landlines, but receive all, or nearly all, calls on a wireless (cell) phone.  That means for three in 10 American adults, the landline phone is passé; and for 18- to 29-year-olds, that figure is well over 40%.

Marshall McLuhan wrote extensively (and cryptically) about the effect of changing technologies on human behavior. The cell phone that is now a communications hub has profoundly changed the way we communicate, how we interact. (Real conversation overheard between two 20-something women in the office, the day after one of them had gone on a first date: "Do you think he'll text?" "I don't know, but he friended me on MySpace.") 

We expect to be able to call, or text, or email a person directly and in real time; when I was a consultant, I could always tell when a client company got BlackBerries, because suddenly I started getting emails from them asking, "Where are you right now?" The technology altered the nature of communication, in that case turning email from memo-writing into a real-time thing.  Thanks to the mobile Internet, we also expect to have access to the sum total of the collected knowledge and wisdom of mankind in our pockets at all times.  Which, as it turns out, can really come in handy.

Five or six years ago, when suddenly every phone had to also be a camera, I was skeptical; did my laptop also need to be an espresso machine?  But the kids understood immediately, and now I do as well.  Last night I saw the Allman Brothers at the Beacon Theater, and in addition to tweeting about the special guests (If you remember Bonnie Bramlett, congratulations! You are even older than me) I took some pictures and uploaded them to Facebook, all from my iPhone, in real time.

So I've also been thinking: Is the Internet, as accessed via computer, and the mobile Web, as accessed by wireless handheld devices, the same medium?  And I'm not quite sure.  I mean, video is video, but Youtube and ABC are different media, at least in an advertising context.  Of course, consumers will remain loyal to specific content and specific devices (e.g., "Lost" and the 60-inch plasma TV in the living room), but we'll become increasingly aloof to the pipe or wire or air port that gets the content onto the device. Indeed, I suspect media measurement will need to become both device-agnostic and channel-agnostic; that is really the only true path to total audience measurement for specific vehicles (and campaigns.)

Yesterday, comScore reported that the number of persons in the U.S. accessing news and information via the mobile Web had increased twofold in a year.  63.2 million people accessed news and information online via mobile devices in January 2009; in fact, 35% of them did so daily.  That is profound, especially in a time when newspaper circulation and readership is declining and longtime stalwart papers are shutting down. It is not difficult to envision a time where more American adults access news daily via the mobile web than via the printed page.  Many Web entities are seeing significant portions of their traffic originate from mobile devices; that will only increase. 

I've heard some pundits say that the mobile advertising marketplace has yet to ignite.    But when I go to Google and search for the phrase "US mobile ad spend," I am inundated with links to bullish forecasts. This is a space where consumers are going - those who are young, upscale and tech-savvy.  They want to buy stuff and they want to buy it now.  And they are less loyal to radio, to TV, and to the newspaper than their predecessor generations. 

So of course the mobile advertising market will lock in and should grow rapidly, assuming people accept ads on their mobile devices; it is axiomatic that marketers and consumers want to find each other, and this technology provides innumerable ways for us to do just that.  It isn't just that cute guy who can text you and friend you; it is also the world's biggest brands.  The nature of advertising will change -- the medium, after all, is the message -- but the mobile Web in particular, and the cell phone in general, will put a whole bunch of targeted, relevant, useful ads in your pocket. And that, dear colleagues, is what I call an economic stimulus.

 

7 comments about "Bullish On Mobile".
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  1. Will Larson from Ticketmaster / Live Nation Entertainment, March 17, 2009 at 3:34 p.m.

    I agree that mobile ads and media development have a very rich future but is it worthy of all the hype it's getting? I worry that we're creating yet another bubble. As people see products they want (and don't need) pop up on their mobile browser, they will buy and buy with money that they don't have. What happens when they run out of credit?

  2. John Roeger from Dicom Promotions, March 17, 2009 at 4:27 p.m.

    I believe people will not accept ads on their mobile. However, using the WIIFM theory, they will accept promotions...high-value, relevant TPR's... compelling, can't-buy-it sort of sweeps... and cool apps for example.

  3. Bill West from Comcast Spotlight, March 17, 2009 at 4:36 p.m.

    Still think mobile's future is limited to the size of the screen. Size does have an effect on the dynamics of a message, probably even more so than exposure time. But perhaps in coming years the device that you carry might only be needed for its audio with some kind of recognition system used that then projects the visual to a larger screen think panels on a building, vending machine, inside bus panels and even in the grocery aisle, all based on recognizing the nearby device(s). Right now, I welcome the immediacy of looking something up, but attempting to read a news story is just more work than worth, esp. when interspersed with a display ad.

  4. Joshua Chasin from VideoAmp, March 17, 2009 at 4:41 p.m.

    Well, I did say I was bullish on mobile.

    Consumers will always articulate an objection to advertising in new media-- and then respond to it with purchases. I remember backlash against ads before the main feature begins at the movies.

    We accept ads at websites already, and we use our phones to visit mobile-only versions of these sites. Why should we balk if these visits include ads?

    The challenge in the digital age-- even on old media like TV-- is to change the covenant with the consumer. Move in the direction of permissioned, relevant advertising that offers value, and I am confident the consumer will come along for the ride.

  5. Thom Kennon from Free Radicals, March 18, 2009 at 7:41 a.m.

    If you think we're not prepared to "accept advertising on our mobiles", I'd suggest you take a look at your own consumer behavior.

    I don't think I'm alone in using my mobile web browser a lot to search Google or Yahoo (One/Go has an awesome interface) for both local as well as general stuff.

    I actually "see" and gladly accept for it's kind subsidization of my experience, lots of advertising. I have to imagine from a media standpoint that territory simply gets a little more valuable every day... be there.

  6. Joshua Chasin from VideoAmp, March 18, 2009 at 11:08 a.m.

    Thom, that's exactly right.

    Every time we've been confronted with a new medium, we have been told, vehemently, that consumers won't accept the adverttising. This was even the case at the dawn of the Internet. And with online video. And with Videocassettes, cinema advertising, video game advertising, and so on. I'm sure that if consumers were confronted with a :30 spot before their phones place the dialed call, the backllash would be profound. But that would be a stupid application of mobile advertising. I am confident that us marketing types will be able to figure out ways to get marketing messaging to consumers through phones in fashions that work, and that consumers will accept and perhaps even value.

  7. Mj Angiollo from Scarboroug Research, March 18, 2009 at 7:47 p.m.

    What other media can identify your precise location and provide relevant and timely advertising messages? For example the GPS on your phone identifies that you are at a particular mall and sends relevant, timely messages to your phone so that you know which merchants have sales, etc. Or, you're looking to buy a new home and while driving around you come across a house that you like. You can instantly look up information about the house, neighborhood, etc. Can other media do that?Think outside the box, mobile has a bright future.

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