Lack of standard metrics will stunt the growth of the fledgling mobile advertising business as advertising budgets are cut and brands opt to deploy their spend on traditional media with a clear return on investment rationale. However, the long-term prospects remain strong, according to Jim Newton, global market development director at Acision. ""I'm bullish about mobile advertising," he says. "Metrics are really important and advertisers will hold or cut budget where there are no metrics – which is pretty much everywhere – because of that mobile will be a victim in the next 12 months as operators play safe."
After the announcement by the UK's operators that they are to establish standardised metrics for mobile advertising, the barriers to its wider adoption are only just starting to be removed and only in a small number of countries. Nevertheless, there's plenty to be getting on with right now, reckons Henry Stevens, director of media and entertainment at the GSMA. "It is doubly the right time to [invest in mobile advertising]. If you assume advertising is a cyclical business and it is unpleasant now, you can also assume there will be a recovery. Now the opportunity is to position mobile advertising as the driver of that recovery. If operators don't make the right investments now, mobile won't be ready to take advantage of that."
Meanwhile, there are practical mobile advertising activities that can and are being undertaken. "In some instances we're guilty of trying to get too scientific about targeting," adds Newton. "In many countries there is just data about the user's handset type available and you don't necessarily need deep data to be effective. It isn't necessary to jump in with everything and simple, tight propositions work best. Practical steps that deliver ROI are the way forward and if advertising dollars start to come that will give operators momentum."
Inevitably, the focus has to be on attracting advertisers but Stevens thinks this emphasis will shift as operators increase their understanding of what works, what is non-intrusive and how advertising can be valued. "The focus now is on the value proposition to advertisers, that's right for now but ultimately the consumer proposition is what will determine if mobile advertising will work."