By Giselle Abramovich

Neil Strother is analyst for JupiterResearch
Mobile advertising is still in its early stages but will flourish once advertisers become more educated, more capable mobile devices are introduced and wireless networks have the speed and performance to deliver rich media.
Analysts believe that because the mobile device is always with us, no matter where we are, mobile advertising will eventually become part of all ad budgets. After all, no other medium has the potential to target the consumer in real-time based on their exact geographic coordinates.
“Mobile advertising is still in its early stages in the United States,” said Neil Strother, analyst of mobile marketing and media for Jupiter Research, Kirkland, WA. “Most companies have not done a campaign on mobile and those that have are still experimenting with what works best for their brands.
“Early results, though, have been somewhat positive for brands that have committed to mobile,” he said. “But several key hurdles remain: lack of audience reach, a complex buying process and campaign metrics that show an ROI.”
Regardless of these challenges, Mr. Strother still believes that mobile advertising will grow into a significant part of the overall advertising industry.

Nic Covey is director of insights at Nielsen Mobile
But it will take time - several years.
Mobile schooling
He said there's still a big need to educate advertisers about how to approach mobile.
“Brands need to get to a place where mobile becomes a regular part of an advertising budget, not just an afterthought,” Mr. Strother said. “And, of course, it will take time to educate skeptical consumers about what they get from ad-supported mobile content and services."
The channel has its benefits.
The main benefits of mobile advertising include closer targeting of individuals – since a mobile phone is so personal – location and interaction. These are unique capabilities that have yet to be fully exploited.
Mobile is still lacking in uniquely mobile attributes, meaning that what we are still seeing are online or television-based advertising models shoehorned onto mobile.
Mobile not like PC
“What works on a laptop screen doesn’t necessarily transcribe to mobile,” said Nick Holland, principal analyst for mobile content at ABI Research, Oyster Bay, NY. “Furthermore, the companies that can invest in mobile advertising are not necessarily a good match for the demographic that will be viewing the ads.
“I am not sure how many 18-25 year olds will be motivated to buy a Toyota truck due to a banner ad on their RAZR,” he said.
Companies like Loopt and Whrrl are at the intersection of social networking, location based services and advertising that show the shape of things to come.
Mr. Holland believes mobile advertising will be strong in connecting word of mouth endorsements of products and places at not just the time when consumers are looking to purchase, but also at the exact location.
“Tie this in with real time couponing and the eventual ability to use your phone as a contactless credit card and you’ve got a very compelling proposition,” Mr. Holland said. “Okay, a little science fiction for now, but not far off.”
Rich media, rich marketers
The good news is we are rapidly moving toward a content rich multi-media mobile environment that will give consumers more choices that ever.
This will drive the industry forward, said Milton Ellis, vice president and senior consultant at Harris Interactive, Rochester, NY.
As more capable mobile devices are introduced and wireless networks have the speed and performance to deliver rich media, mobile advertising should take its place as part of an integrated advertising approach offered across multiple platforms.
“In other words, to really build a bond between a brand and consumer, the advertiser must integrate their communications message possibly across radio, TV, the Internet, and mobile devices taking advantage of the strengths and opportunities provided by each medium,” Mr. Ellis said.
Today just about everyone has a mobile phone so the reach is tremendous across all age groups and genders.
No other electronic device approaches the personal relationship consumers have with their mobile phone so that relationship must be leveraged.
To leverage this relationship, mobile advertising must:
· Be on the consumers’ terms
· Provide the right incentives
· Have to do with topics and subjects they care about
· Include the option for consumers to opt out if necessary
Gone swimmin'
The mobile advertising market is a cold swimming pool on a hot August day,” said Nic Covey, director of insights at Nielsen Mobile. “There are a few people in the water, loving it, swimming around with a lot of extra space, sipping on pina coladas while the rest of the crowd has come to the pool planning to swim, looked at the pool, dipped toes in, even, but generally exhibited an unnatural reluctance to fully dive in and take advantage of it.
“Get in the water, already,” he said.
Mobile media advertising just recently reached a point where the audience, inventory and planning tools are in place to enable a robust mobile advertising market.
Now more marketers need to accept mobile as an important media option, Mr. Covey said.
Consumers are increasingly open to mobile advertising and expect to see more of it, but are still in a sensitive development stage where one bad apple could spoil the whole bunch.
Consumers, wireless carriers and regulators are watching mobile marketing closely for a misstep, but the winning approach is simple: don’t make consumers hate or distrust you.
“It’s their phone, not yours and so if you’re a marketer and you’re advertising on this platform, you’re there as their guest,” Mr. Covey said.
It’s simple etiquette: don’t come uninvited, bring something nice, don’t overstay your welcome and try not to leave a mess.
If consumers ask you to leave, don’t be difficult about it.
Tread delicately in their hand and if you’re a good guest they’ll think about opening their doors more often – to you and others.
Today, shortcode marketing programs offer the greatest reach, but the contrast between great shortcode campaigns and weak ones is stark.
Mobile media with fixed-universe ancestry (mobile Web, mobile TV) offer consumers a familiar marketing value proposition and have the most growth potential in the coming year.
Mobile video and Internet users are the most receptive to mobile advertising because they expect that trade-off and are still getting their head around having to pay another $10-20 a month for video or Internet access.
Though mobile is a viable option for marketers today, it will be some months before it’s standard in major media buys.
Advertisers and their agencies are historically quick to move with their mouths and slow to move with their wallets.
In this regard mobile won’t be so different.
What is different is all the various avails for marketers on this platform: if they’re not ready to spend a little on a shortcode campaign, maybe they’ll try a few banner ads with click-to-call.
“Ironically, dollars will move into mobile advertising for the same reason many will stay with broadcast television,” Mr. Covey said. “For all the nuances of consumer behavior, for all the new marketing opportunities available, much of the advertising market still moves on the inclination of a chief marketing officer that he or she has an obligation to put their brands in certain places.”
Primetime broadcast television has benefited from this immensely and Mr. Covey thinks mobile might too.
Audiences can grow quickly. Content and ad inventory can explode.
But advertising dollars don’t switch overnight.
“We won’t wake up one day to a billion-dollar mobile ad market, but it will sneak up on us,”Mr. Covey said.
If media planning evolves effectively, marketers may have a difficult time calling out the success of mobile, independently.
Integrated media and marketing should continue to blur the lines of ad spending and an onus is on mobile ad sellers to creatively demonstrate ROI as a component of substantially larger cross-platform campaigns.
“Mobile is the awkward step-child of more traditional media channels, but that’s what makes it such an important opportunity,” Mr. Covey said. “It’s a close enough relative to video, Web and promotional engagements to be familiar to marketers. But it brings new life to these methods by incorporating new place and utility.
“Tapping into mobile as an advertising medium will improve the mobile consumer experience,” he said. “The greatest benefit should be to the consumer, who will see reduced costs and more options in content as advertisers offset the growth of the mobile media ecosystem.”