What’s Working in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Mobile Advertising?
By Mike Baker, CEO of Enpocket

2006 marked some major milestones for mobile advertising.  Many of the carriers have figured out their mobile ad strategy and have either launched a media network or set the wheels in motion. The availability of “carrier grade media” has quelled advertiser grumbles that mobile lacks reach and adequate reporting on unique impressions.  In 2007 we’re seeing many of the big brand advertisers beginning to test mobile to build the business case for their 2008 media spend.  With a number of diverse campaigns under our belts, we are now beginning to see just what is moving the needle with mobile.

As with other forms of interactive advertising, mobile advertising is all about measuring and optimizing ROI.  And like online advertising, one of the key metrics is the display advertisement click-through rate (CTR). It is no secret that mobile has been delivering CTRs that are orders of magnitude higher than the Web, averaging around 4%.  But we are seeing some campaigns that yield much higher results – as high as 7, 10, and 12%.  There are a number of ways to optimize CTRs in mobile advertising, including demographic targeting, behavioral targeting, predictive analytics, creative optimization, and creating an overall  compelling “ad experience”

Let’s break down one high-performing campaign that is getting click-throughs in the 7 to 8% range.  The advertiser, a large import auto manufacturer, is running a mobile program that successfully leverages multiple mobile mechanics to engage and entertain consumers. To drive traffic to its mobile web site, the brand is simultaneously running mobile banners ads on the Sprint Mobile Media Network and displaying in-venue a short code messaging promotion tied to a music sponsorship.  Once at the automaker’s Web site, the consumer can browse features of certain car models, download thematically integrated ringtones and wallpapers, send them to a friend, and find the nearest dealership.

Why is this advertiser achieving such great response rates?  It’s simple: the user experience is compelling; indeed some would say the production values and quality of entertainment offered are better than the often times tepid mobile content consumers are offered for purchase.  Consumers are cruising through messaging, content downloads, viral mechanics, and Wap surfing in a rich, immersive mobile experience.  Perhaps as important as the results is the ability to measure them.  The program is anchored with a carrier grade media buy on Sprint.  Because the advertising is running with a carrier, the performance can be tracked down to the unique user.  And, the tracking and reporting of engagement and conversion activities, spanning across mechanics, becomes a dashboard for measuring the ROI of the entire program.

To realize mobile advertising’s unique potential, brands need to think “beyond the click” to the overall advertising experience.  Why would a consumer choose to spend time with the brand and its marketing message?   This isn’t your father’s internet – it’s the world of the personal media device and we’re learning that reflexive “web think” often times misses the mark and squanders the opportunity. 

Most importantly, successful mobile advertising requires tracking and reporting that effectively measures the ROI of the entire program: not just the unique reach and click-throughs, but key conversion and engagement mechanics that occur after the click, such as downloads, video viewing, opt-ins, and call center activity.

If a brand isn’t receiving great reporting from its mobile program, it’s not gathering the learning required to understand what is truly moving the needle and how to invest in future mobile programs. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />