M-commerce involves buying and selling goods and services using mobile devices like smartphones. While hyped for years, m-commerce is now growing rapidly as smartphone ownership increases. Companies are utilizing various mobile advertising formats like SMS, apps, and barcodes to reach consumers who are using their phones while consuming other media and making purchasing decisions. However, concerns exist around privacy and how advertising may bombard phones. Laws and payment systems may need to evolve to support m-commerce growth while balancing consumer privacy.

1. source: smayen - flickr
m-commerce,
are we ready...
does it matter?
created by: @sandronache

2. M-Commerce:
“ Mobile commerce, or m-commerce, is the buying and selling of services and goods using a mo-
“
bile device. It is a branch of electronic commerce, or e-commerce, that is conducted over Inter-
net-enabled wireless and/or hand-held devices.
Source: What Is The Meaning Of Mobile Commerce? - Natasha Gilani. eHow

3. M-Commerce has been hyped for years with little in
the way of results.
Source: The age of the app - Lorinc, Tossell, and Akkad. The Globe and Mail

4. However, the surge in smartphone ownership
suggests that mobile marketing will experience
MASSIVE growth.
source: blake spot - flickr

5. source: alegriphotos.com - financial forecast
Annual sales for Smartphones climbing from 175.8 million
sold in 2009 to 302.6 million sold in 2010, a 74.4% increase.
source: Smartphone devices sold better than Personal Computers

6. source: 4freephotos - arrow on bicycle lane
71% of smartphone users search because of an ad they’ve seen
either online or offline;
88% of those who look for local information on their smartphones
take action within a day.
source: Smartphone user study shows movile movement under way - Dai Pham, Google Mobile Ads Blog

7. “ Implement an integrated marketing
strategy with mobile advertising that
takes advantage of the knowledge that
people are using their smartphones
“
while consuming other media and are
influenced by it.
source: Smartphone user study shows movile movement under way
- Dai Pham, Google Mobile Ads Blog

8. How are companies utilizing and taking advantage of this new
stream of advertising?
source: Sakeeb Sabakka - flickr

9. SMS – Short Messaging System
...is it still relevant?
source: Christopher Penn - flickr

10. In September 2010,
eMarketer forecast
that SMS would be the
biggest single mobile
advertising format in
2011, with a 38% share
of mobile advertising
spending.
Source: Brands Shift Focus of Mobile Outreach
- eMarketer.com
source: John Federico - flickr

11. source: twicepix - flickr
Gavin Mehrotra, Director of International Media for Coca-Cola
stated: “SMS is the number one priority at Coca-Cola in mobile”.
He added that the mobile web is number two, and smartphone
apps are a distant number three.
Source: MMA Asia 2011 Review – MobiThinking

12. But as smartphone users increase and feature
phone owners decrease, will companies boost
spending on smartphone applications?
source: epSos.de - flickr

13. source: ipadnotebook - wordpress
Appvertising

14. source: Matthew Oliphant - flickr
“The number of downloaded apps is expected to in-
crease from 10.9 billion worldwide in 2010 to more than
76.9 billion in 2014. In addition, worldwide mobile apps
revenues will experience similar growth, surpassing $35
billion in 2014”
source: 10.9 billion mobile apps downloaded in 2010, expected to rise to 76.9 billion in 2014 - Mobile Marketing Watch

15. “A recent BMW iAd allows users to
explore some of the X3’s 70 million
unique configurations. Colors and wheels
can be changed, as well as the vehicle’s
angle. iPhone users can even go inside
and choose interior options, including
a variety of trims and leathers...You can
then locate a dealer to discuss the build
that you started”
source: mobile app advertising – mashable.com

16. What about Mobile Barcode Scanning?

17. 80% of US consumers surveyed expressed
interest in scanning mobile barcodes
source: Consumer Goods Technology Magazine, ‘Using Barcodes as Creative Advertising Platform’
source: elizabeth thomsen - flickr

18. source: avlxyz - flickr
'“A QR code makes a magazine ad into an Alice-in-Wonderland rabbit hole
through which a consumer can dive for more information. A two-second
magazine ad turns into a five minute brand-immersion experience."
source: Why those funny new cellphone bar codes will take over the world, Tim Mullaney - USA TODAY

19. Should the general public be weary of the stream
of ads bombarding our phones?
source: lydiashiningbrightly - flickr

20. source: Mr. T in DC - flickr
The Commercial Privacy Bill of Rights Act of 2011 is intended to create a frame-
work to protect the personal information of all Americans.
John McCain, an Arizona Republican, said the bill allows companies to continue
marketing and advertising to consumers, but“does not allow for the collection and
sharing of private data by businesses that have no relationship to the consumer for
purposes other than advertising and marketing.”
source: Chloe Albanesius - Sens. Kerry, McCain Introduce Online 'Privacy Bill of Rights - PCMag.com

21. However...
“ In interviews with 28 US mobile phone users, Strategy Analytics found that
the majority would accept some form of mobile advertising as long as no
“
hidden charges are associated with participation, they receive something in
return, and the level of intrusion is limited.
Source: US Consumers Willing to Accept Mobile
Advertising Despite Concerns Over Hidden Charges
– Paul Brown – Strategy Analytics
source: brtsergio - flickr

22. Arewepreparedforaneraofmobileadverts?
Do we have a choice?
Will payment systems have to
evolve to suit m-commerce?
How about our laws?