Mobile advertising: Big promises on small screens

Mobile advertising: Big promises on small screens
By Jessica Twentyman
Published: May 28 2008 01:25 Last updated: May 28 2008 01:25
Richard Saggers is on a mission. As global head of mobile advertising at operator Vodafone, it is his job to build a convincing argument as to why brand managers should be looking at directing key marketing messages to the 2.5bn mobile phones worldwide.
Considerable challenges lie ahead for this nascent market, he says. “Mobile media needs to be easier to buy and it needs to be better understood, especially when it comes to interpreting the results of mobile advertising projects. We need to help advertisers understand why they should use mobile and how it fits into wider campaigns.”
It is a vital task for Vodafone and its competitors, says Martin Scott, an analyst with research company Analysys Mason. Business success among the operators is typically measured in Arpu – average revenue per user – and Arpu is beginning to stagnate in developed markets, he points out. “Mobile operators need fresh revenue streams to provide growth beyond simple voice services and mobile advertising has the potential to be one,” he says.