Annual mobile phone sales are predicted to hit 1 billion by 2009
and there are already 4 times as many internet-enabled phones in
the world than there are PC's.
According to Dotmobi (www.dotmobi.net),
one third of the global population are
connected via mobile phones today and
approximately half are expected to be
using a mobile Internet phone by 2008.
An IPSOS survey suggests that 29% of
mobile phone users in the UK searched
for news and information on their handset
during 2005.
The statistics are impressive and will
get any marketers pulse racing. But
it does seem as if we've been hearing
about the potential of mobile search
market for some time, and yet very
few travel companies appear to be active
in the mobile search space and mobile
e-commerce revenues are still modest.
Up until now most advertisers have been
ignoring mobile as a marketing channel,
according to a new report by Forrester
Research called "Interactive Marketing
Channels to Watch in 2007." It suggests
that only 13 percent of marketers use
mobile text message ads and only 11 percent
bother advertising on wireless application
protocol (WAP) sites. It seems clear
that advertisers are waiting for evidence
that the market is there before deciding
to jump in themselves.
Barrier and limitations to growth
Despite the huge number of people that
have access to the mobile internet
there are a number of barriers to mobile
web adoption. For example;
1. Cost and clarity - carrier data plans
can be expensive and confusing compared
to normal internet access plans.
2. Screen Size - the limited screen
size of many hand sets negatively impacts
the user's browsing experience.
3. Ease of use - due to the limited
screen size there is an increased number
of clicks needed to get to content.
4. Lack of content - there is a 'walled
garden' approach to the content offered
by many mobile network operators which
means that not all mobile users get full
access to content.
Competition - the WiFi explosion
Another factor that may have impacted
on the growth of mobile internet usage
is the increasing availability of high-speed
WiFi internet access in many public
areas. Airports, hotels, bars, libraries
and commercial shopping centres are
increasingly offering WiFi, and it's
often free. This has encouraged users
to use laptops and PDA's to access
the internet while on the move rather
than through mobile phones.
Mobile is the perfect advertising platform
Despite these barriers to growth travel
companies cannot afford to ignore the
e-commerce and marketing potential
of this platform. All of the barriers
to growth outlined above will be overcome
over time as technology improves and
network and content providers adapt
their services to facilitate the growth.
The issue is not really whether the
mobile search market will make an impact,
but how it will make an impact.
In many ways mobile is the perfect advertising
platform. It's always with the consumer,
it's always on, it provides personal
profiling data, it provides location
data, it's interactive and it has multiple
billing options already built in.
At present the major bulk of mobile
searches are related to ring tones, news,
entertainment, maps and directions, directory
listings, local restaurants and other
local services. As many as 60,000 UK
users a day are checking train times
on their mobile phones.
Local search is clearly the natural
mobile advertising opportunity. Going
forward, more complex searches and bigger
transactions will become viable as technology
advances and users become more comfortable
with using their handsets for searching.
In a recent Travelmole interview, Nancy
Lyndhurst, the product manager for O2,
said some of the larger travel brands
like Cathay Pacific, Accor Hotels and
KLM are already successfully marketing
with mobile technology. She also cites
the example of Lastminute who received
a £3,000 holiday booking online
from a customer using their mobile telephone.
Mobile marketing spend to reach $11
billion by 2011
A recent report by the telecom division
of Informa Group stated that advertisers
are expected to spend a massive $11 billion
on mobile marketing by 2011. Optimistic
predictions like this have compelled
the major search engines to start making
significant investment in the future
of mobile search themselves.
Google have predicted that their own
mobile division, based in London, will "become
the biggest driver of new business" for
the company.
Google has developed its own mobile
search engine and has signed a number
of deals to provide mobile search services
to major operator portals. Motorola
have even agreed to add a dedicated "Google" button
to some of its hand sets. LG, one of
the top 5 mobile firms in the world,
have announced that they will start
to ship handsets pre-loaded with Google
services from this month.
Yahoo has unveiled a new application
called Yahoo Go Mobile which makes its
various services available on certain
phones. Not to be outdone, Microsoft
launched Live Search for Mobile in February
at the 3GSM World Congress in Barcelona.
There are also a number of start ups
like Jumptap and Medio who will be
bringing services to the new mobile
search space.
It's clear that the major search properties,
in partnership with the phone manufacturers
and network services, are intent on driving
the mobile search sector forward. With
this kind of momentum there's no doubt
that mobile search marketing will eventually
become a major part of online marketing,
it's just a question of when. Could 2007
be the year of mobile search?