MobAdGermany 2010 gives insight into growing market
Mobile Advertising Research Germany 2010: ‘Facts and visions on and by the market’ confirms the growth of one of the hottest channels in the media mix. With high mobile penetration, personalization possibilities and characteristics as always-on, interaction and social context tools, mobile increasingly is seen as an optimal way for brands and consumers to communicate. Following the internet, mobile is expected to be one of the quickest growing media channels, in a market with above 132% mobile penetration.
This report has had the aim to document to state of the mobile advertising market in Germany, to identify key opportunities, challenges and the road ahead.
The research was performed by Aeneas Strategy Consulting & Management. Over 1000 consumers were questioned on mobile usage, attitudes on mobile advertising, conditions for acceptance and comparisons with other media. A nuanced perspective was provided for through interviews with relevant players in the entire valuechain.
Valuable insights into the German mobile advertising market were provided by leading operators as E-Plus’ subsidiary Gettings and O2, media agencies OgilvyOne, Clanmo, Unanimis and PHD, creative agency 12Snap, brands Deutsche Post and OTTO, saleshouses YOC, Madvertise, Smaato, publisher Peperoni, integrator Wunderloop, full service player Out-There-Media, ad serving companies Amobee and Admob, handset provider HTC and innovative application providers Adfortel, ComCom, Match2Blue and Aka-aki.
71% of German consumers are positive about receiving ads on their mobile under the right conditions of incentives and consumer. Control and permission are critical. Without taking into account the appropriate measures in these areas, mobile advertising is perceived more negative by consumers than other advertising through more traditional media channels. This is due to the personal character of the mobile handset. Several brands and media agencies see huge opportunities in using mobile in stimulating awareness and sales by setting up dialogues with consumers. However, they are confronted with the complexity of developing, creating and planning campaign. This is partially due to the large number of available mobile formats, limited cooperation between publishers in planning cross-media campaigns and lack of clear measurement and standardisation.
Mobile is on the way, but is not yet fully embedded in the media planning process. Experts expect consolidating in all levels of the valuechain, hoping complexity in this new market will be reduced. Whereas exponential growth is expected for mobile advertising, education, trialling, learning, flat fee data plans, higher smartphone penetration and appropriate targeting tools in combination with consumer permission remain key challenges. Also operators see an increasing need to step into mobile advertising, in a market where mobile penetration can only grow minimally and where average revenues per user have been and will continue to decline. ‘2009 was a difficult year for the advertising industry. In periods of tight budgets, efficiency, targeting and reduced waste are critical to brands. For mobile advertising the economic crisis might be an opportunity’ says Tarik Fawzi, director of Aeneas. ‘2010 will be the last year players can refer to mobile advertising as being new and in pilot-phase’.
The research – sponsored by Adfortel, ComCom and Out There Media - which was performed by Aeneas Strategy also in 2009 in the UK and 2008 in the Netherlands, will be followed up with in-market projects with key players to translate the learnings into further mobile advertising campaigns.
For more information about the research, email Tarik Fawzi or call +31 6 5311 5971.
