Over 2.5 billion mobile phones are in use around the world today. That is three times the number of personal computers, and almost double the number of TV sets. That’s a lot of eyeballs!

Advertising opportunities

Mobile advertising spend in comparison however, is small. In 2006, it amounted to just USD871 million (0.002%) out of total global advertising spend of USD450 billion, compared to the USD24 billion (0.05%) spent on online advertising, according to Informa Telecoms and Media.

Mobile advertising, given its more targeted and efficient approach, could turn out to be a dream marketing tool. Mobile operators have taken note. One UK mobile operator, Blyk, offers 43 minutes and 217 text messages free monthly, if subscribers agree to receive 6 MMS advertising messages per month. Virgin Mobile in the US is offering similar deals through its Sugar Mama promotion and Vodaphone is rolling out similar offers.

Will the iPhone revolutionise advertising?

The more lucrative mobile channels - video and music downloads, internet and other applications - have limited take-up so far.

As handsets improve, such as the Apple iPhone with its enlarged, bright, touch screen, will consumer attitudes change? Will consumers remain skeptical of mobile advertising on their personal devices, even if the advertising is tailored to their personal preferences? How can privacy issues be overcome? How will advertisers ‘unlock’ untapped markets?

Customers as resellers

On the subject of uptapped markets, our research for an IDD phone card service operator in Hong Kong showed that they had overlooked a major and important market – foreign domestic helpers (click chart to enlarge image).

We discovered that phone promotions worked for these cost-conscious customers – but in unexpected ways. Taking advantage of mobile phone coupons, they would buy the cards in bulk and resell them for a small profit, typically to first time users.

A small discount thus helped create a new informal reseller network and expand the market. The promotion was never intended for this purpose, but the outcome was intriguing.

So what’s next?

What new and ingenious ways will advertisers use to deliver ads to eyeballs?

Will art directors in the advertising industry have to learn a new set of skills to create mobile ads on phones?

Can responses to mobile ads be tracked for a better understanding of consumer behavior?

Will mobile telecom product and service operators take on the role of media agencies in search of new sources of income?

Stay tuned. Or should we say, keep your mobiles on!

For more information, please contact Manifesto.