Video Report: Mobile Marketing Stymied by High CPMs, Small Audiences

Sounds like the carriers need to get their act together

It always surprises me how often we inhibit our own growth by refusing
to adapt existing business models to take advantage of new
technologies. Of course, no one's advocating that we do away with ANY
form of metric measurement or accountability but it seems to be
counter-productive to inhibit growth in a new medium ( lack of ad
support) simply because its nascent stage doesn't allow it to meet
conventional metric benchmarks.

Is this the reason that we often don't 'see' or embrace emerging media
simply because while they're squarely in our field of view, they
remain 'invisible' until they reach a 'critical mass' level of metric
acceptance that 'suddenly' makes them the hottest 'new' media vehicle?
That's what I call a 'Gattaca' Syndrome (from the famous Uma Thurman
movie where people rely on DNA tests to prove identity rather than
their own eyes)

It's obvious that compelling content is still in the development stage
for the mobile space; indeed, my company is on the brink of launching
a few unique concepts which we hope will become 'hits' on the 'third
screen'..What needs to happen however, is that we assess, establish
and work from realistic expectations about audience numbers for this
platform as the space continues to grow. How do we achieve (or EXPECT
to get) 'American Idol' type of audience numbers for a mobile
broadcast if we have yet to get the type of ad support (or visionary
brand integration support for concepts pitched to marketers) required
to not only develop that content but market it successfully to a wide
enough audience to generate viewership?

To be sure, there ARE ways to do it (the strategy we're currently
employing). I liken it to the process taken by many hip hop recording
artists who couldn't get it the front door of most record labels in
the conventional manner but who created and pressed their own discs,
sold them at swap meets and out of their car trunks, eventually
selling enough units to come to the attention of a major label which
then pronounced them as the 'next big thing'..

As the penetration, usage and technical capability of mobile phones
shows no sign of slowing, let's look at how we can establish a
workable adjusted metric model that can better extrapolate the
breakout possibilities of new mobile content based upon the numbers we
DO get (or may achieve, depending upon the viability of the concept
idea). This can then provide the much needed support that mobile content developers will need to create more engaging content and most
importantly, advertise that content more efficiently to a wider
audience...Banging our heads against the wall trying to make a 'square
peg fit a round hole' right now isn't helping us achieve the growth we
ultimately need.

Ru-El Burford (CEO) - 'ndustrimobile' - Jamaica, NY (ruel@ndustrimobile.com)

On the mobile web, I think the issue is audience size. The small audience size means that companies in the value chain can't make enought money because there aren't enough impressions. It is not the demand setting prices, but supply.

On text message marketing, short code traffic is too expensive to reach the low CPMs required.

People are clearly inundated today and with the convergence of technologies and data, the individual consumer is setting the rules as to how we interact with them. It could be email, a call, mail, text message, IM, pager, voice, IVR, push to web and the list can go on. It might even be a forwarded message from a friend to include me in the loop of what interests them. You may be marketing to people via one or all of these channels. It is really up to them.

The point is that advertising in any form has to become marketing and that marketing has to have a purpose and a meaning to the person receiving it. It starts with building Brand and awareness, capturing attention with a call to action and having the ability to produce action in response to the call. The use of integrated media approaches to the markets still is productive in the broad sense, so blend them out wisely and be prepared to respond to the Market of One.

Those become a group of similar interest levels, product purchasing, consumption, value and so on. But they are the ones setting the rules. Getting to them is the key and the tools are out there to do so as never before. However, it is the mix of advertising, not a single channel that drives the results, the metrics, the value and the ability to demonstrate our intelligence to our customers. The key is to understand how to do it.

Greg Gannon Engenus.com