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22 8 2002
Mobile marketing might be a relative non-entity in the U.S., but it's posed to
rival the present businesses in Europe and Asia within four years, according to
a recent study by Jupiter Research.
The study by Jupiter -- which is owned by INT Media Group (Quote, Company Info),
the publisher of this Web site -- found that mobile marketing is hottest in
Europe, where an estimated $53 million will be spent on mobile campaigns in
2002.
However, by 2006, wireless marketing in the U.S. will match both Europe and
Asia, with the growth driven primarily by campaigns launched by consumer
packaged goods producers and fast food restaurants.
Most of these campaigns, moreover, will rely on SMS rather than wireless
sponsorships, banner or interstitial ads. That's due largely to efforts at
interoperability efforts among U.S. carriers, which began in earnest this
spring.
That technical effort has created an environment in which U.S. cell phone users
are almost three times more likely to use two-way SMS than wireless Web
browsing, and twice as likely to receive one-way SMS messages, according to a
survey in April conducted by Jupiter and The NPD Group.
Jupiter analyst Dylan Brooks, who authored the study, added that it is unlikely
that SMS growth in the U.S. will cannibalize online ad sales anytime soon.
"Advertising via wireless devices will not significantly cannibalize digital
marketing," Brooks wrote. "Mobile marketing is suited best to drive sales of
consumer packaged goods, restaurant menu items and high-street retail
commodities -- sectors that have advertised very little online to date."
Nevertheless, with groups like the Interactive Advertising Bureau pushing for
more advertisers to buy into online media, it's still unclear whether the two
relatively new media will compete for advertising dollars later in the decade.
Other pitfalls, however, require more immediate attention before U.S. wireless
marketing takes hold. Unlike in the Europe and Asia, wireless carriers and
advertising agencies will be forced to cooperate to roll-out mobile campaigns:
agencies will provide technical and creative skills, while carriers will seek to
preserve user privacy and don't want to be left out of controlling content,
Brooks wrote.
In Europe, carriers have little involvement in deploying wireless campaigns,
with agencies like 12snap, flytxt and Mindmatics instead serving as the prime
movers. In Asia, the situation is reversed, with carriers like NTT DoCoMo
playing much a greater hands-on role in creating campaigns.
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