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Summary:

A bunch of execs from advertising and telecoms groups has told the Reuters Technology, Media and Telecoms summit that “mobile advertising wa…

A bunch of execs from advertising and telecoms groups has told the Reuters Technology, Media and Telecoms summit that “mobile advertising was inevitable and would become hard to resist”, although it would take time to reach its full potential. Maurice Levy, chairman and chief executive of advertising group Publicis, gave a succinct reason why mobile advertising was on the way: “Because it will be in the interest of the phone companies, consumers and advertisers. So it will be very difficult to resist.” The normal reasons are also given, such as the sheer number of people who will have mobile phones — many of whom won’t have access to other digital media — and the usual reasons were also given for its slow uptake…ie, that carriers and the ad industry are taking it slow because they don’t want to startle users and have them consider mobile advertising as spam.

Hamid Akhavan, the head of Germany’s T-Mobile, gave an interesting reason why mobile advertising was having problems — the small size of the market once you fragment it all the different ways. “By the time you say how many countries you cover and what your share of the market is, how many people have that kind of phone and how many of them are interested in Nike, you end up with an inventory of 6,000…And are you going to go to Nike and waste their time over 6,000 potential customers?” He suggested a cooperative model, where all the big players work together, “look at the inventory and try and figure out a way for us to share it in a very cooperative way and together go and pitch”. He’s got a point. While a carrier wouldn’t suggest an advertising campaign on a particular handset on a particular carrier in a particular country (well, maybe for the iPhone) the fragmentation does increase the work load, and advertisers want to reach all the relevant people in a market rather than just those using a particular carrier.

Also, a note on analyst forecasts: “Forecasts suggest the mobile ad market will generate revenue of $1 billion to $24 billion within the next 4 years.” That is a whopping discrepency, and only four years out…

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  1. I am pretty sure i have heard Maurice's and Hamid's comments about 74 times from 74 different people non of whom are actually in the trenches of mobile advertising/marketing and thus don't have a clue.
    Their are so many conflicting views in the press and 90% of the people talking have no idea what is actually going on with the channel and have never actually been involved with only a few mobile programs if any at all.
    Want to know about mobile marketing then you should talk to a mobile marketing company, their are about 5 that actually know what they are doing.

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