One-Third of Marketers are Mobile

When asked if their company currently uses or plans to use mobile marketing tactics, such as mobile messaging, applications and/or websites, 33% said their company currently uses these tactics. Another 24% said their company plans to use mobile tactics within the next 12 months, and 13% said they will use mobile tactics in more than the next 12 months. (via MarketingCharts).

Only 20% said their company has no plans to use mobile marketing tactics, and another 10% don’t know. This means the combined percentage of respondents whose companies definitely or possibly will not use mobile marketing tactics (30%) is smaller than the percentages of respondents who currently use them (33%) or will use them within the next 12 months or longer (a combined 37%).

Broken down by region, more European respondents said their company currently uses mobile marketing tactics (37%) than North American respondents (29%), reflecting Europe’s more advanced and entrenched mobile infrastructure.

Mobile Channel Adoption Will Double in Next 12 Months

Looking at specific mobile marketing channel usage and adoption rates, the use of the three major mobile marketing channels of SMS/MMS/WAP, mobile websites, and mobile applications should all roughly double in the next 12 months.

SMS/MMS/WAP has the highest current usage rate, 37%. Another 38% of respondents plan to use SMS/MMS/WAP in the next 12 months, and 15% plan to use it in longer than the next 12 months. Only 5% of respondents have no plans and 5% don’t know.

Although mobile websites and applications have lower current usage rates, they are both expected to grow in proportion to SMS/MMS/WAP in the next 12 months, and grow at a slightly higher rate beyond that. Thirty-three percent of respondents currently use mobile websites, with 33% expecting to use them in the next 12 months and 17% planning to use them beyond the next 12 months. Eight percent of respondents have no plans to use mobile websites and 7% don’t know.

Mobile applications have similar response rates to mobile websites, with 31% of respondents currently using them and 32% expecting to use them in the next 12 months. Mobile applications have the highest percentage of respondents planning to use them beyond the next 12 months, 22%. Eight percent of respondents have no plans and 7% don’t know.

Mobile Device Popularity Surges

The popularity of mobile marketing tactics has been rapidly growing as the popularity of smartphones, 3G devices and other advanced mobile applications surged in the US during 2009, according to comScore mobiLens data.

Between December 2008 and December 2009, the percentage of US mobile phone subscribers with unlimited data plans increased from 16% to 21%, with several phones now requiring an unlimited data plan subscription at the time of purchase. During the same period, smartphone ownership increased from 11% to 17%, while 3G phone ownership increased from 32% to 43%.

About the Survey: The Unica Global Marketing Survey was fielded to more than 150 online and direct marketing professionals in partnership with Salloway & Associates. Online surveys were completed in Q4 2009 within two geographic regions among Unica customers and prospective customers. North America represents respondents from the US and Canada. Europe represents respondents from 12 European countries that are large technology markets.

The Mobile Retail Opportunity ($m) Split by Smart Posters, Coupons and Advertising 2009 to 2014
The mobile marketing and retail strategies report found that the mobile retail sector – defined by Juniper as comprising mobile coupon redemption values, smart poster fees and advertising expenditure – would initially be dominated by coupons. However, it noted that mobile advertising expenditure would exceed coupon redemption values by 2013 as digital adspend is increasingly transferred into the mobile space.

Increasingly the retailing industry and brands are becoming aware of, and implementing the mobile device into, the retail cycle. According to report co-author Howard Wilcox, “Retailers have recognised that, even ahead of their wallets, people will usually make sure they do not leave home without their mobile device. The mobile channel offers merchants the opportunity to differentiate from their competition and acquire customers that become loyal.”

Meanwhile, additional factors such as the growth of the mobile web, the availability of high speed mobile broadband networks, and the ever-growing usage of SMS were offering retailers, brands and merchants new opportunities to communicate with customers and potential customers and to offer the ability for them to shop by mobile.
Other findings from the Juniper report include:
 

• For brands and retailers, mobile offers the ability to change campaigns quickly (for example by time of day), and crucially the ability to track the success and customer acquisition rates.
• Usage of the mobile in a live shopping situation can be particularly effective – for example for product price comparisons
• While the mobile will be an effective channel for younger users who organise their lives around their mobile phones, older demographic groups are likely to be less receptive to using their mobiles in a retail situation and to offer the ability for them to shop by mobile.

Other findings from the Juniper report include:

• For brands and retailers, mobile offers the ability to change campaigns quickly (for example by time of day), and crucially the ability to track the success and customer acquisition rates.
• Usage of the mobile in a live shopping situation can be particularly effective – for example for product price comparisons
• While the mobile will be an effective channel for younger users who organise their lives around their mobile phones, older demographic groups are likely to be less receptive to using their mobiles in a retail situation

MobzMedia can help you define you mobile marketing strategy. Our team of creative and technical people have many years of mobile experience. Please contact us today.

In 2009, this data revealed one important factor that Liuzzo says marketers should note: Every type of mobile interaction is on the rise, and consumers are always looking for new things to do with their new devices.

“That’s the genius of mobile technology right now,” says Liuzzo. “We aren’t seeing anything that’s losing consumers’ interest.”

Below, we highlight four key trends in consumer mobile usage, and what these trends might mean for your mobile marketing initiatives. (Unless otherwise specified, Luizzo’s team gathered the below data through 2009 surveys and panels). Take a look if you’re considering a mobile test, or are curious which mobile communications your audience might prefer.

Trend #1. Rise in smartphones

Advanced mobile technology that handles Web browsing, email and applications is becoming more available. Consumers are responding by increasing adoption. About 24% of all mobile users own a smartphone.

Here’s the smartphone ownership rate of mobile users by age group:

• 18 to 24 year-olds — 29%
• 25 to 44 year-olds — 29%
• 45 to 54 year-olds — 24%
• 55 to 64 year-olds — 13%

“It’s not just for ‘geeks’ anymore. It’s really running across the line,” Liuzzo says. “Marketers should realize there’s a segment of the population that’s only going to get larger, that’s going to want to have access to anything and everything on their mobile device.”

Tip: Prepare your website

Mobile apps have recently received a lot of press. However, for many marketers, preparing a mobile site is a higher priority.

The growth in smartphone use means more mobile users will use these devices to browse the Web. In order to keep up with this trend, your website should render cleanly on a mobile browser, or you should have a separate mobile site.

Keep in mind that mobile Web surfers are different than computer Web surfers. They are often out-of-home and looking for quick, useful information. Consider the information your customers would want under these circumstances, and make it easy to navigate on a handheld device.

Features might include:

• Store locator and store hours
• Product pricing and details
• Coupons/promotions
• Contact information
• Commonly used areas of your website

Trend #2. SMS is widely used

SMS adoption among younger mobile users is approaching a plateau, Liuzzo says. But older age groups are still showing strong increases.

Here is the percentage of mobile users who text by age group:

• 18 to 24 — 83%
• 25 to 44 — 65%
• 45 to 54 — 52%
• 55 to 64 — 33%

Furthermore, Liuzzo points to data showing that nearly all age groups sign up for SMS alerts. Weather alerts are currently the most popular, followed by sports and airline alerts.

Here are the alert-usage rates by age group:

• 18 to 24 — 32%
• 25 to 44 — 27%
• 45 to 54 — 19%
• 55 to 64 — 15%

Many text alerts are maintained by brands and companies. Therefore, the data show consumer willingness to interact with companies via SMS.

“Quite honestly, I think it’s something that brands and marketers need to acknowledge and to jump on and figure out how they can have a continued conversation,” Liuzzo says.

Tip: Start experimenting and integrating

SMS popularity and consumer willingness to interact with brands via SMS indicates an opportunity for marketers. You can start by building a mobile subscriber list, promoting through email, in-store, social media and/or paid media.

Consumers often opt into SMS services by texting a certain keyword to a provider’s number. You can promote different keywords in different regions to help segment your subscribers.

Once you have a list, remember that SMS can have an immediate impact on foot traffic. Emailed promotions might generate in-store traffic in matter of days or hours. But a well-timed SMS promotion can drive traffic in a matter of minutes, allowing you to quickly respond to events.

Trend #3. Growth in mobile social networking

The ability to interact with friends and contacts through mobile social networking apps and Web sites is just now starting to blossom. Nine percent of mobile phone owners have used a social network on their phone.

Here are the most popular networks, followed by the percentage of social mobile users who said they’ve accessed them from their mobile devices:

• Facebook — 58%
• MySpace — 54%
• LinkedIn — 7%
• Flickr — 6%
• Twitter — 5%

The team gathered the data in early 2009. They are currently updating the figures, and Liuzzo has noticed a few changes.

“That Twitter number has definitely increased,” she says. “We’re expecting Twitter to come in as high as 19% to 20%.”

Top five most commonly reported actions on mobile social networks, in descending order:

• Visit friend’s profile
• Post comment
• Post and update
• Browse profiles
• Update via text message

Mobile social networking “is something that’s increased,” Liuzzo says, adding, “I think we’re going to see it increase over the next year or so, as well.”

Tip: Expect more sharing

Rather than focusing on mobile social networks as a separate marketing channel, marketers should consider it an extension of the social Web. Mobile social may grow in importance in the months to come, but it is not a current priority for most.

Continue to make promotions and other content sharable among consumers. Doing so helps get your most exciting promotions into these networks where they’ll spread to other types of users.

Also, if you have a brand presence on these networks, social mobile users will be able to find you there as easily as if they were on a home computer. The networks handle the formatting.

Trend #4. Stronger impressions on smartphones

Consumers are warming to the notion of mobile interaction. In fact, smartphone users who use an application, play a game, listen to music or watch videos enjoy the experience slightly more than PC users, according to Liuzzo’s team’s data.

However, the data also show feature-phone users enjoy these activities less than computer users. Feature-phones can have online access but are often lower powered and more difficult to navigate than smartphones.

Consumers’ positive view of smartphone computing might give mobile ad impressions a stronger impact than ads viewed on a computer.

The data below compare normative brand metrics compiled from more than 50 mobile advertising studies and more 800 online advertising studies Liuzzo’s team conducted. Mobile campaigns included display, SMS, video, interactive voice response and apps. Online campaigns included display and video:

• Unaided awareness:
  • Mobile — 10.7
  • Online — 2.0
• Aided awareness:
  • Mobile — 9.1
  • Online — 2.7
• Ad awareness:
  • Mobile — 16.5
  • Online — 4.9
• Brand favorability:
  • Mobile — 8.6
  • Online — 2.2
• Purchase intent:
  • Mobile — 10.5
  • Online — 2.7

Tip: Test mobile display advertising

Mobile display advertising should be tested by marketers who see value in buying regular online display ads. When comparing the branding impact of mobile display advertising, SMS and mobile video, display advertising has shown the most impact on unaided brand awareness and ad awareness. Display is second to SMS in aided brand awareness and purchase intent.

As smartphone adoption grows, mobile ads offer the potential for better impact from a more engaged audience. Reach out to your publishing partners and ask about mobile ads.

Also, some online display and search advertising networks, such as Google AdWords and Yahoo!, have mobile advertising operations. For marketers already using similar networks, test campaigns should be easy to setup and monitor.

Since mobile is an emerging channel, you may be able to fetch bargain rates for ads that perform strongly, even if on a smaller scale.

According to research by market analyst Nielsen, the smartphone “dominated” the industry throughout the year, alongside the Research in Motion (RIM) BlackBerry 8300 series, which includes the Curve, 8310 and 8320 models among others.

Despite both brands’ success globally, it was the Apple iPhone 3G that topped the US rankings, leading critics to wonder whether the result will be repeated in the UK.

Also in Nielsen’s top ten was the Motorola RAZR V3 series, the RIM BlackBerry 9530 Storm series and the RIM BlackBerry 8100 Pearl series.

Of course, in the UK, the popularity of the Apple iPhone 3G shows no signs of abating, especially after Vodafone announced this week it is to make its stock of the handset available to customers from January 14th.

This gives consumers another network – after O2, Orange and Tesco Mobile – to buy the phone on.

After opting in, consumers receive coupons via text messaging, which are redeemed by showing the mobile device to cashiers. “We found from past campaigns that text messaging-based incentives work very well. Consumers tend to look at text messages quicker than e-mail, so it’s an instant result for [the brand],” said Option Media CEO Scott Frohman. “And it’s something that’s very beneficial to the consumer.”

His company also worked with Domino’s on a similar project, and he said other fast-food chains and hotels have expressed interest in working with them on providing customers with mobile coupons.

A few weeks ago, 7-Eleven debuted a mobile marketing campaign in San Diego. The convenience store chain reported last week that the program was showing progress.

More and more Americans are becoming interested in receiving mobile coupons and promotions. Forrester Research found that 61 percent of consumers opposed mobile ads in 2008, down significantly from 80 percent in 2006. Not surprisingly, young consumers were more open to mobile ads.

The Google Nexus One is one of the hottest upcoming smartphones, and new details have appeared continuously in the last week or so. There’s still no word on whether the Google Nexus One will introduce new Google mobile services, other than Google’s statement saying that Google employees are currently using the phone for internal development and testing of such.

One new Google Mobile service of high significance was introduced with the Motorola Droid, however, ad-based Google Maps with Navigation. In stead of paying a monthly or lifetime fee, Droid users get turn-by-turn navigation for free thanks to integrated advertisements. Not only does it save Droid users significant costs, but it also gives Verizon Wireless an advantage over competitors. GPS Navigation apps for the iPhone have been dropping in price recently, and that might possibly be a preemptive strike.

What other services could Google offer for free that you’re currently paying for at competitors? Probably quite a few, but the importance of selecting the right services at the right time would be required. Some have suggested that Google might simply subsidize the Google Nexus One directly, possibly with the aim of attracting more people to its ad-based services. We agree that it would be an interesting strategy. After all, when Android first became official, the ad-based model was one of the first attractive aspects of the platform.

We’re not sure whether the time has come for Android to take that step yet though. Google recently announced that it would acquire AdMob, meaning that the company still is in the process of figuring out exactly how to take out the potential in the ad-based model. It sounds very strange to us if the Google Nexus One goes “all-in” amidst that process. Then it would be better to keep the head cool and wait, as it would certainly be easier to succeed in the long run with an ad-based model when things are going smoothly. The last thing consumers need right now, is entirely disruptive models that could turn out to not be viable.

In that regard, we expect Google to continue its step-by-step strategy, with the aim of changing the market slowly, yet steadily and peacefully.

The leap is believed to come on the back of growth in every other area besides cellphones. Despite the seeming popularity of smartphones, the entire sector is believed saturated enough that it will grow at only about 4 percent. Modems, such as 3G adapters, should grow at about 40 percent each year while “ultra mobile devices” like media players and mobile Internet devices (MIDs) will grow as much as 67 percent every year. These devices have a small share now but may catch up as cellular carriers shift towards non-traditional data plans.

Many providers, including most European carriers, now often subsidize netbooks and are expected to provide similar treatment for tablet devices.

Of course, nothing’s ever really free.

The “free Internet” has prospered in large part thanks to the increasingly large spending by advertisers working to grab the attention of distracted, Web-surfing consumers. The Internet Advertising Bureau (IAB) reports that that industry is on track to surpass $20 billion in Internet advertising this year. With dollar signs in their eyes, a raft of companies are looking to ride that wave of spending, betting that advertisers will be attracted to the promise of ads delivered to mobile phones, the most personal connection to the digital world.

Pioneers like Third Screen Media (now part of AOL) were ringing this bell back in 2005—but, as happens in the wireless industry, it has taken time for this new business model to be widely embraced.

Make that business models. As companies aggressively experiment with the advertising opportunities afforded by mobile, multiple advertising modalities are popping up in the wild.

With text messaging penetration in excess of 40%, it is understandable that a wide array of advertising approaches would aim to leverage this service. In September, nearly 18% of mobile subscribers received a text message ad or promotion. Most of these were from service providers, but more than five million subscribers received offers from companies with whom they’d opted in to receive messages. Disturbingly for this nascent market, more than twice as many consumers received messages from companies they had not approved to send them advertisements and offers.

Beyond the straight text-message ad, companies such as 4INFO (in which Gannet is an investor) are appending ads at the bottom of text alerts and text searches. It is only a matter of time before we see the big players in Internet search do the same as they continue to make their moves in mobile.

Mobile video and TV services, which have been slow to meet their much-hyped potential, are also looking at advertising as both an additional revenue stream and a way to grow the audience. Research M:Metrics conducted on behalf of the Mobile Marketing Association (MMA) found that a much larger audience for mobile TV would exist if advertising subsidized the cost of these services. Consumers expressed a willingness to accept advertising to get their mobile TV fix, and this is precisely the model embraced by companies like Rhythm New Media, which launched services in Europe and likely will show up on U.S. shores next year.

Some of the hesitation around mobile advertising has come from fear of undermining the perceived value consumers place on mobile content and the willingness of some of them (but not a majority) to pay for content. Apart from ringtones and wallpapers, the largest category of titles on every carrier deck is mobile games. Yet even here, companies like Greystripe and Limelife are working to build businesses based on inserting advertising into downloadable content. The lesson to be learned from other media is that it’s not a question of paid versus ad-supported free: Both models can co-exist.

On the Internet, spending on search-related advertising accounts for 40% of dollars spent, according to the IAB, followed by display advertising. Start-ups such as Medio Systems and JumpTap are hoping to do for mobile search advertising what Google has done for the Internet and, in the process, try and box out the Mountain View juggernaut form the still-developing market by being the carriers’ best friends.

Display advertising on the mobile Web sounded like a bad idea in a world of slow networks, small screens and minimal, “mobilized” content. The landscape has changed significantly in just the past 18 months, with dramatic increases in consumer adoption of mobile broadband, and devices that are finally making mobile browsing engaging.

Here we see a picture that shows clear promise, but also flashbacks to the early days of the Internet. M:Metrics’ monitoring of mobile Web advertising in October revealed that brands—more than a dozen of them from the Fortune 100—are using mobile as a vehicle to sell cars, hotel rooms, automobiles and fruit spritzers, to describe just a few products.

These ads, often delivered via ad networks such as Third Screen, AdMob or Millennial Media, are currently presented in a cacophony of shapes and sizes. More than 50 different ad formats were tracked in October alone, an indication that the sector is in an experimental mode, which demonstrates the need for the work being done by the MMA to develop standards for mobile advertising across most of these formats.

While no good estimates exist of today’s total mobile advertising spend, it is certainly a fraction of a percent of the $20 billion that will be spent online this year. Yet companies in nearly every sector of the mobile industry are working to find ways to change that. The only up-turned noses these days are those that are following the smell of money.

The study finds that interest in mobile marketing remains as high as it was in the previous two surveys. One in four respondents in the 2007 survey expressed interest in mobile marketing. Although some respondents had difficulty readily associating benefits with mobile marketing, those who do say that they value the ability to receive highly relevant information, the coupons and rewards received, and the convenience of accessing the desired applications quickly and easily.

The number of consumers who have experienced mobile marketing continues to grow. One out of 20 respondents had participated in mobile marketing. The highest participation is among respondents age 25-44.

Sweepstakes and voting campaigns are the most widely used types of mobile marketing. The second most common type is receiving alerts about products, services, accounts. 10% of respondents have used their mobile phones to receive and redeem coupons.

Ethnic groups are key audiences for mobile marketing. For example, African Americans and English-dominant Hispanics indicate stronger interest in mobile marketing than Caucasians. These findings suggest that the mobile channel can be highly effective for reaching specific ethnic groups, the MMA says.

Teens and young adults use text messaging more than any other demographic. People aged 13-24 send and receive the most, sending more than 50 messages per week, while half of all survey respondents use text messaging at least once a week. This usage shows that most mobile users are at least familiar with text messaging, even if they are not regular users, making it an effective tool for mobile marketing campaigns.

54% of 13-34 year olds use SMS for social networking, while 44% of 13-34 year olds said they use text messaging for flirting or dating, and 10% of 13-34 year olds said they have broken up with a boyfriend or girlfriend via text.

“The 2007 Mobile Attitude and Usage Study reinforces that the mobile channel remains one of the most powerful tools available for brands and companies,” says MMA President Laura Marriott. “US consumers continue to use more of their phones’ features, creating additional opportunities for marketers to reach them with coupons and other relevant, exclusive-to-mobile information.”

The 2007 study, conducted by Synovate, consisted of 1,405 online interviews using a nationally representative consumer online panel of over 1.5 million households. The sampling plan for the main study sample was identical to the 2005 and 2006 survey waves, in order to ensure maximum compatibility between studies, and to allow for accurate trending. The study focuses on the US market. The MMA also conducted similar studies in Asia-Pacific and Western Europe. Results from these studies will be released before the end of the year.

The network Blyk is currently available in the U.K. and is exclusively targeting young people on an invitation-only basis. Users must fill out detailed information about their lifestyles, areas of interest and brand preferences. In exchange for agreeing to accept targeted advertising via text messaging, members get 217 free text messages (SMSs) and 43 minutes per month of free talk time. The service is accessed through subscriber identity module (SIM) cards mailed to new users who simply put them into their existing phones.

Meanwhile, Vodafone Czech Republic has recently started its Student SMS Gratis service. Customers between the ages of 15 to 26 who sign up for the service can send SMSs for free in return for accepting ads on their phones.

“From the marketing survey we made before the service launch, there is significant openness among young people to receive ads: 76 percent of them would like to have service like Student SMS Gratis, while 30 percent like ads from their favorite areas, for example sport or fashion only,” said Filip Hrubý, Vodadone Czech Republic’s spokesman for corporate communications.

But Ira Brodsky, president of Datacomm Research Company, a U.S.-based management consulting and market research firm that specializes in emerging computing and communications, said that advertisers and networks have to be careful to avoid negative responses to the ads.

“There is clearly a need for a mobile marketing etiquette to ensure that advertising is received on a strictly opt-in basis with a simple and immediate opt-out. In the U.S., people expect their mobile service provider to shield them from unwanted telephone solicitation of any kind,” Brodsky said.

“The one exception is mobile TV. Since advertising is a standard feature of regular broadcast TV and even for-pay cable TV, we will probably see brief mobile TV commercials,” he said.

With Vodafone’s Student SMS Gratis, an ad is automatically displayed on users’ screens three times while sending SMSs. The first display comes into the messages section in the handset, the second comes while sending the SMS and the third after SMS is sent. Mobile users can click to continue or stop the process but cannot delete the ads as they are not saved in their phones. The ads can come as text or images, but images are most prevalent.

Vodafone’s Hrubý is confident that those who receive these ads are happy to do so. “Only people signed to Student SMS Gratis service get ads. Ads are displayed only to the sender and not to the receiver of the SMS,” he said, adding that ads appear immediately, so there is no slowdown of normal handset/SMS functions.

Amobee Media Systems provides a system and server for mobile advertising and works in partnership with Vodafone Czech Republic. Richard George, spokesman for Amobee from Nelson Bostock Communications, which handles Amobee’s PR, said care was taken to ensure that mobile users do not become frustrated with the ads. “First of all, customers opt-in to the service, so we never send unsolicited ads. In the case of free or discounted services like SMS, messaging applications or games, the benefit proposition is clear as users are told they can enjoy these services at a reduced price as they are funded by advertisers. We also tailor ads according to the user’s taste and behavior as much as we can so those users are more interested in the advertising messages they receive,” he said.

Many companies have signed up to use Vodafone’s mobile advertising service, including insurance company American International Group (AIG) and employment Web site Jobs.cz. Hrubý said that advertisers gain a lot from mobile marketing. “Mobile advertisement is better targeted because users fill out their socio-demographic profiles while signing up for the service, so the advertisers know very precisely who are they addressing. More mobile advertisers can be sure that they will reach users wherever they are 24/7; advertisers address customers through very personalized and private channels; and it provides bigger synergy opportunities—advertisers can, for example, align a mobile campaign with a TV campaign,” he said.

Last year ABI Research, which specializes in studies on emerging technology markets, forecast that global spending on mobile marketing and advertising will see a thirteenfold increase between 2006 and ’11.

However a recent global survey by market research company Nielsen Media Research has shown that despite the recent expansion of mobile advertising, customers are most suspicious of ads that come to them via their handsets. Only 18 percent of respondents said that they would trust text ads on mobile phones, making them the least trusted form of advertising. The survey was conducted among nearly 27,000 Internet users across 47 global markets and was aimed at comparing 13 different types of advertising.

While Vodafone has gone ahead with its advertising plans, other mobile networks are still weighing the pros and cons of offering such a service. T-Mobile Czech Republic is still evaluating the possibility and has no immediate plans to offer the service, and Telefónica O2 Czech Republic also has no current trials or propositions in the country.

However, Richard Poston, director of corporate affairs, said it is an area that companies within the Telefónica O2 Europe group have been investigating for some time. He added that the company is currently undertaking trials in the U.K. to gauge customer views. The possibility of expanding the trials to the Czech Republic is being kept under review.

“The trials are going well and involve banner advertising on O2 Active for users of Sony K800i handsets and ad-funded games on two other devices. The trial is to be extended this month to about 20 more devices. Customers click on the ads through to the WAP site for that brand. In general terms, our approach is to ensure that any advertising is not obtrusive, but the content is of benefit and importance to the user,” he said.

O2 has more than 20 ad campaigns running including ones for fast food firm Domino’s Pizza, carmaker Ford Motor Company and auction Web site eBay.

In the U.S., Virgin Mobile USA announced earlier this year that customers had earned more than 9 million free minutes through its Sugar Mama marketing program. On average, over 1,000 new customers have signed on to participate in Sugar Mama each day. Ads include those from food and beverage maker PepsiCo. to software giant Microsoft Corporation’s Xbox to the American Legacy Foundation’s national youth smoking prevention campaign called Truth.