Privacy Is Not a Barrier to Mobile Ads

  • by October 15, 2001
The "intrusiveness" factor often associated with mobile advertising is not a prime concern for mobile users according a new study by ARC Group.

Findings from a consumer survey of users of mobile advertising services across Europe and the USA, carried out in association with the Wireless Advertising Association, indicate that once users have opted in, and are receiving relevant and carefully targeted services, privacy is no longer the top concern.

Around 30% of consumers in Europe and the USA are either extremely or very willing to provide personal information in exchange for ads that are relevant to them, and a majority is receptive to the idea, as the table below shows.

Willingness to give personal
information 
Europe USA
Extremely willing 8% 7%
Very willing 22% 17%
Somewhat willing 31% 41%
Not very willing 25% 20%
Not at all willing 14% 15%
Total 100% 100%
Source: ARC Group/WAA Consumer Surveys

Because of the highly personal nature of the medium, mobile industry professionals are also keenly aware of the need to ensure that mobile ads do not intrude on consumers' privacy, and industry guidelines such as the WAA's code of practice are designed to avoid this.

Richard Jesty, ARC Group Consultant and lead author of a new study on Mobile Advertising said, "The results from our industry and consumer studies clearly indicate the growth potential of mobile advertising, provided that campaigns are precisely targeted, and deliver relevant information to end users."

Moving forward from this, ARC Group is forecasting a strong take-up of mobile advertising worldwide, with Western Europe and Asia Pacific taking the lead in terms of revenue share over the next five years. Leading brands such as Nestle, McDonald's and Procter & Gamble are already carrying out campaigns that exploit the immediacy and interactive potential of mobile advertising, and are extending the boundaries from sales promotion into longer-term brand building exercises with substantial budget allocations. While SMS is a key part of this in Europe, i-mode in Japan has shown that a flexible response mechanism and a fresh approach to the value chain can be combined to offer great potential not only in Asia Pacific but in the other major regions as well.

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