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Why mobile advertising is more effective than internet advertising

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  • 1. Why Mobile Advertising May Prove to Be More Effectivethan Internet Advertising
  • 2. Why Mobile Advertising that half of the world’s humans now carry a mobile phone (approaching the 4 billion mark), yet Gartner’s latest figuresMay Prove to Be More put the number of installed PCs worldwide at “only” 1 billion units — and not all of these have Internet access.2 TheEffective than Internet gap between mobile and PC ownership is even greater in developing markets.Advertising 2) Multiple Touchpoints Are Better Than One: Internet adsExamining the Implications of Current Research have one way to reach users: through the Internet. Mobile operators have a much richer menu of options to offerMobile Ads Are 30 Times More Effective than Internet advertisers: voice (visual voicemail, ringback tones, missedAds call notifications, etc.), text (SMS), multimedia (MMS), mobile Internet, billing touchpoints, handset clients andThe headline was run by a wide range of industry more.publications: Mobile Ads Are 30 Times More Effective thanInternet Ads. It refers to a study about advertising on mobile 3) One-on-One: Due to the one-on-one personal nature ofphones that was recently carried out in association with a the mobile communication tool, its ads are more effective inleading operator in the Czech Republic. terms of product awareness and sales. Because messages are intended just for the user, users generally pay moreThe research, which included 22 top brand advertisers careful attention to mobile ads (e.g. text added after aand more than 3000 users, showed that “the average notification) than they do to ads that come to a PC.successfulness of individual SMS/MMS campaigns wasapproximately 27 times higher than in the case of Internet 4) Bulls Eye — Right On Target: The unrivalled amount ofbanner campaigns. Even the results of the least successful relevant information about the subscriber makes the mobilecampaign surpassed the response rate” for Czech Internet the ultimate targeting tool. Unlike the PC, the mobile phonecampaigns.1 is usually used by a single individual (as opposed to a household on the PC) Advertisers can know exactly who theTaking Digital Advertising to the Next Level users are in order to target ads effectively:The Internet deserves a full measure of credit and admiration -- Demographic Info: From subscriber profilefor developing new advertising concepts and businesscases that made possible the spectrum of wonderful -- Time and Context: User, website, time, location, etc.developments on the Web. It is with due respect andhumility, rather than arrogance, that the mobile industry -- Ongoing Profile Builder: Subscriber informationreacts to the likelihood that mobile advertising is more is accumulated from a variety of sources to oneeffective than Internet advertising. unified subscriber profileAssuming the validity and the accuracy of the referenced -- Predictive Behavior: Based on user habits,research, the question to be addressed is: What makes preferences, historymobile advertising more effective than Internet advertising? A Because targeted ads are inherently more relevant, theycomprehensive answer is comprised of many components. are more interesting; users pay more attention to them andOur attempt at defining those reasons is below: advertisers get a higher response rate.The Top Ten Reasons Why Mobile Advertising Is More 5) On Location: When a user is mobile, a phone in theEffective than Internet Advertising hand is worth two PCs in a bush (to paraphrase the famous adage). Only via a mobile phone can knowledge of the1) Where the Users Are: Advertisers can reach many more user’s movement and changing location be utilized forusers via the mobile phone than via the PC. Globally, mobile timely offers, such as a discount at a store or at a cafe inownership/ usage far outstrips Internet access. It is estimated the food court as a user enters a mall. Advertising for small1 http://www.cellular-news.com/story/38178.php 2 http://www.gizmag.com/global-pc-installed-base-passes-1-billion/9569/For more information please visit www.comverse.com 2
  • 3. local businesses has a much stronger business case on the Strong Results Are Attracting the Attention ofmobile than on PCs. Advertisers6) Trusted Billing Relationship: The confidence and high The research in the Czech Republic seems to confirm thatlevel of trust that the user has in the operator facilitates mobile advertising is much more effective than Internetdecisions to purchase. Whereas purchases from a PC advertising. The average mobile response rate was 2.72%.generally require money transfer methods such as PayPal In the case of the most successful campaign, the responseor credit cards – purchases form a mobile phone can be rate reached 11.78%. The least successful mobile campaignhandled simply, quickly and automatically by means of had a response rate of 0.29%, three times higher thanfamiliar and trusted billing procedures. This makes users the average Internet of about 0.1% for Czech Internetmuch more likely to act on their impulse to buy through their campaigns.4handset. The research is not conclusive and further studies are7) Direct User Response: The interactive nature the mobile warranted. Further clear strong results for mobile advertisingphone removes barriers to responding and purchasing will continue to attract the attention – and dollars – ofthrough direct user response capabilities: Click to call, click to advertisers to this growing advertising domain.SMS click to purchase...8) Opt In: Unlike the PC experience, users opt in toparticipate in mobile advertising. Whereas ads on the PC arelargely regarded as a form of span and ignored, mobile adsare delivered only to those who request them. The way theyare regarded increases their effectiveness.9) Triggers: Mobile ads triggered by real-time situations(such as billing, location triggers and more) can behighly effective in meeting immediate real-life needs andmaximizing response rates.10) Banner Blindness and Ad Blocking – On the InternetOnly: Eye-tracking studies show that Internet users havedeveloped “banner blindness” and in a large number ofcases have stopped even noticing Internet banners – to saynothing of the large number of users who utilize ad-blockersto prevent even the appearance of ads. The nature of mobileadvertising prevents both of these phenomena, givingmobile ads a chance to be more effective.33 Research: Internet Users Plagued by ‹Banner Blindness› http://www.clickz. 4 http://www.cellular-news.com/story/38178.php and http://en.t-press.cz/com/3616001 tiskove_zpravy/2009/1000/ About Comverse Comverse is the world’s leading provider of software and systems Copyright ©2009 Comverse, Inc. All rights reserved. enabling value-added services for voice, messaging, mobile Internet and mobile advertising; converged billing and active customer Comverse, its logo, the spark design, Kenan and Netcentrex are registered management; and IP communications. Comverse’s extensive trademarks of Comverse Technology, Inc. or its subsidiaries in the United customer base spans more than 130 countries and covers over States and other selected countries. Other denoted product names of 500 communication service providers serving more than two Comverse or other companies may be trademarks or registered trademarks billion subscribers. The company’s innovative product portfolio of Comverse, Inc. or its subsidiaries, or their respective owners. The materials enables communication service providers to unleash the value of presented in this communication are summary in nature, subject to change, the network for their customers by making their networks smarter. and intended for general information only.For more information please visit www.comverse.com 3