It would be so much easier if consumers were the same, but they all want different things. The increasingly fragmented market is making it difficult for marketers to target scattered audiences.
Users can still use terrestrial TV, but there's a big chance that they're eating their dinner in front of a programme on one of a hundred satellite channels. They might be able to watch video clips on their PC now, but soon they'll be able to download movies and engage with an infinite number of high-quality pieces of content in an infinite number of places.
So, how do you get to these people? Some say through their phones. Mobile experts think 3G will become the marketing glue between the various media platforms, and will enable brands to reach consumers, whatever they are doing.
"Brands face a media audience that is fragmenting," says Graeme Oxby, marketing director at 3. "The question has become 'how do you get your message across to the 18 to 34 age group', which is technically aware?"
There has been a fanfare around 3G for years. Two years ago, 3 appeared, promising big things and, now that the major networks have followed suit, mass-market services are starting to emerge. With them, the potential for brands is becoming clearer.
New era
Oxby believes we are entering a new mobile era.
"We are in a very different world now, with the ability to download full video ads," he explains. "SMS marketing has been fine, but it's obviously limited by the number of characters you have. You need to run integrated campaigns and, while people have been quite responsive to text messaging, it's a whole step up as a means of getting your message across in a strongly branded way."
Consider the position of the marketplace. "Mobile is where narrowband internet access was when broadband was emerging," says Barry Houlihan, managing director of Mobile Interactive Group (MIG). "Very few households had 3G handsets at first, but adoption has increased steadily. Now, the tariffs and pricing structures are becoming simpler, and are moving towards a monthly 'all-you-can-eat' model, rather than one that consumers struggle to understand. This is where 3G video services are now. As the pricing and product become clearer, people will pay for it."
He reckons there are three-and-a-half million 3G-enabled handsets in the UK, of which more than three million are on the 3 network and about 200,000 on Vodafone live!. Orange has just unveiled a service, Virgin has soft-launched one, and T-Mobile is trialling its own for launch this year.
Meanwhile, content providers are waking up to the opportunities. ITV is preparing to launch a mobile content portal and join Channel 4, which launched one earlier this year. The ITV service is likely to debut before the year-end and include interactive content based on existing TV shows, including Coronation Street, The X Factor and I'm a Celebrity, as well as completely new content in vertical areas such as music.
Beyond TV
Channel 4 is also heading down this route and promises its strategy will include content that has been commissioned exclusively for mobile. This will include interactive sideline soap plots and behind-the-scenes features.
With this content comes new advertising opportunities.
The path of possibility has yet to be carved and, at present, there are only a few examples of marketing over 3G networks. Whether it will take off in the form of bumper-style ads around video content, sponsorship or on-demand content, 3G will be a way to take a brand's offering beyond TV. Industry experts tout it as something that will be more available than the red button, and more personal than the web.
Peter Birch, head of interactive sales at ITV, says: "We have recently done some interesting work using mobile and SMS for the Ford Focus launch, and we used the red button. It opened our eyes to the potential of what ITV can do if it offers advertisers a fully integrated package that provides everything from online to interactive TV and mobile.
"ITV is marketing all of these 'beyond-the-spot' initiatives - things that add value to 30-second commercial TV spots and make them work harder - to give our advertisers more successful campaigns. Anything we can offer our advertisers beyond the spot makes perfect sense to us," he adds.
ITV is seeking partners that will fit with its plans to offer a fully integrated ad package, explains Birch. "If our agencies and advertisers decide to go down the mobile route using us, we can offer them a presence on ITV's WAP portal. We can offer bespoke five-digit shortcodes to deliver consumers information and any production-fulfilment and reporting in one easy bundle," he explains.
By including ad spaces around 3G content, ITV says advertisers gain the additional value that integrated packages could be easier to plan and track. "If we can tie it in as a fixed-rate card, something that is very easy to plan and budget for, it seems to make sense," Birch adds.
While GPRS and WAP services have been available for some time, the download time for a video film could be 60 to 75 seconds. Video has been used on older handsets by the likes of Nokia, which used video to promote the launch of its 6230 mobile.
3G is different in that it can offer broader content through interactive services, longer video streams and better usability. This gives brands the luxury of a deeper interactive message.
3's Oxby points out: "We've found that a lot of ads are filmed for a video length of 60 seconds and you now have a mechanism that has been designed to allow people to easily download 60-second films. So, you can make your all-singing, all-dancing TV ad available for mobile."
Brands may question whether consumers will be willing to pay to watch a TV commercial on their phone, but this is just the start of what 3G can offer. "It is much more than just being able to download an ad," Oxby explains. "The whole 'downloading of video experience' is about producing something that is good to look at and enjoyable to watch. Some ads are highly informative and provide the right information to consumers."
Oxby says 3 rolled out its first 3G ads in April, in conjunction with mobile marketing agency Flytxt and media-buying agency MEC Digital, for Brit film It's all Gone Pete Tong. The network developed a site from which users could download a 30-second trailer and get information on the movie.
Powerful message
Within seven days, the trailer had been downloaded more than 100,000 times. "It's a particularly powerful way for that brand to get a message across to a young target audience," he says. "It's more than simply downloading something; it provides an extension to something that is already out there."
For example, consumers could watch a 30-second TV ad and request a three-minute information guide to be sent to their phone. Brands could use a video to advertise a product and enable clickthrough to specific areas for further details and offers.
It is currently possible to deliver up to five minutes of video content, and Oxby claims that 3 has delivered about 10 million full-length music videos so far. "It's powerful customer-driven downloadable content," he points out. And this is the crunch: where SMS marketing has been used in the past as a push-marketing method - and received bad press for spamming customers with unsolicited information, as well as the opt-in variety - 3G provides a mobile version of interactive TV. If customers like what they see, they can ask for more, which boils down to providing good customer service.
Birch emphasises this: "We are running interactive TV services here at the moment and we want to be able to offer a level of interactivity to all our viewers, not just those with digital satellite."
He says it's a record year for interactive advertising - 40 per cent more than last year - and "it does fantastically well at driving response".
He continues: "Viewers who press red and request additional information are offered good immersion in a brand. I want anyone with a mobile to be able to have a similar interactive experience and be able to get special vouchers or whatever a special offer involves."
Birch believes consumers will be less inclined to interact through their handset than TV's red button because mobile is a more personal thing.
It is important that advertisers do not bombard people with piles of information that they haven't requested. "If people want more information or to interact with a brand in a number of different ways, we should be able to offer that," he says. "There is a far higher uplift in people's propensity to interact via the red button than mobile. But, everyone in the country has a mobile, so you have a bigger user base."
A number of brands are ideally placed to benefit from an association with cutting-edge technology. Birch starts with FMCG brands and says ITV plans to develop a mobile service that will enable brands to sell products cost-effectively.
"You could argue, why would the likes of P&G and Unilever want to spend 50p per response when a lot of their products cost less than 50p?," says Birch. "But we could offer them a cheap return path where mobile can act as a way to offer money-off vouchers or free samples. It's a great way for us to look after a large number of FMCGs when you consider that most people in the UK have a mobile. Once they get used to the technology, the value could be huge."
Customers will have to pay for these services, but if advertisers absorb these costs the response rates will be even higher. "People text more than they email. People are used to it and understand that it's a cheap way to communicate. I don't think viewers would have a problem with it," adds Birch.
FMCG is just one sector looking to benefit. A car brand, for example, could develop an interactive video portal that enables users to view a car ad and receive a mobile, interactive 3G video experience. They could see an interactive demo of the car and view a menu system with links to find out more. Users could then be connected straight to a sales agent to book a test drive.
Then there's the untested opportunity to extend a brand through mobile-only content. Barry explains: "It could be a completely different audio and visual experience to anything that has ever been possible though SMS and WAP in traditional mobile marketing mechanics."
Cutting edge
It's a great playing field for those brands that were perceived as early adopters of technology and pioneered the internet space, he adds. That means sport, music and entertainment brands for starters. Formats such as reality TV shows are natural springboards for brands to continue their association with cutting-edge technology, particularly mobile.
"Live horseracing is a great opportunity for brands that want to be associated with gambling," says Houlihan. "You have brands like PartyPoker.com, Ladbrokes and Eurobet that could support their services through mobile-gaming applications. The Grand National is a really successful 3G service with really good demand," he adds. "Also, I've come from a meeting with 3 and one of their most popular services is dating. Consider which brands are associated with that market. You have everything from beauty products to flowers and holidays."
An electronics company worked with 3 to allow customers to personalise their handsets with free wallpaper. Essentially, they have a brand in their pocket, says Oxby. "There are all sorts of things you can give customers for free, such as ringtones. This becomes a persistent brand-delivery experience, rather than the fleeting experience of a few seconds on TV or the web."
The remaining restrictions are based around technology uptake and the cost of using a 3G network. "Mobile operators are very focused on making customers pay for data and at some point they will be challenged with the big issue of 'bill shock'. My mobile phone bill is more expensive than it was two years ago and I'm on a 3G network, so there's that obstacle to overcome," points out Houlihan.
Another issue is Wi-Fi, which is becoming more available. If Wi-Fi allowed customers to download videos for free, why would they pay to request services on their mobile? Houlihan argues that it's a complementary technology: "It's one that will not supersede or replace the mobile internet experience. I think people will use both."
But, with specialist mobile agencies such as Que Pasa becoming available to service brands, Houlihan says one thing is clear: "Brands need to wake up to an entirely new media because never before has there been an opportunity like it."
"The only thing we are wrestling with is awareness of the scale of the opportunities," adds Oxby.
MASTERCLASS PANEL
Graeme Oxby is 3's marketing director, with responsibility for product strategy, marketing, pricing and services. Oxby joined 3 in November 2001 and has worked in mobile for six 12 years. Earlier, he was VP of global mobile business at Cable & Wireless Mobile.
Peter Birch is ITV's head of interactive sales, managing more than 20 interactive campaigns a month besides sponsored interactive applications such as The X Factor. Birch started at LWT in 1994 in airtime sales and helped to set up ITV Online in 1999.
Barry Houlihan is managing director of Mobile Interactive Group, which he founded in May 2004, and manages strategic direction. At O2 for five years, he initiated some mobile interactive partnerships for landmark interactive events such as Big Brother.
SUNNY DELIGHT TARGETS YOUTHS WITH MOBILE MUSIC MAKER
With the aim of engaging its target audience of nine- to 15-year-olds and their parents, Sunny Delight hired agency Lateral to build a microsite on Sunny-d.co.uk, which would act as a hub for an events programme and press advertising.
The main content was Flash-based music-maker Sunny DJ, which enabled users to create a Caribbean-style ringtone via a simple drag-and-drop interface.
Ringtones could then be downloaded to a PC or mobile, or submitted to the Top Tunes competition. An e-card facility enabled users to invite a friend to the site.
Users aged under 13 required parental consent to interact on the site.
Simon Crabb, creative director of Lateral, explains: "The audience we were trying to talk to is more mobile-savvy than web-savvy, so we had to tie the two together. We also had to carry on the Caribbean theme that was going on in outside events, including the Notting Hill Carnival, as a way to revitalise the brand.
"The brand recognised a music theme works well on mobile and is something that really appeals to this audience, so mobile was a central part of its marketing strategy," he explains.
An MMS-based application was used for the campaign, which had to follow strict guidelines due to the age group being targeted. Lateral spent a lot of time checking legal guidelines to get the right message across in a suitable way.
"We aren't using explicit marketing messages. We tried to do something more subtle, which engaged the audience directly with the brand. It isn't trying to say 'buy the product because it's good'. It is more about reinforcing the brand message with a carnival theme," says Crabb.
He thinks the crucial thing when using mobile in marketing is to appreciate the channel and use it in a way that isn't just broadcasting messages to people.
"It is much more effective when you involve people, so it is useful to understand that it is very different to most other mediums.
"There is a whole general area that we need to look at regarding how technology is evolving and look at how different demographic groups respond to this technology," he adds.
TOP TIPS ON 3G CAMPAIGNS
1. The screen size of handsets can differ, which must be factored into the campaign design, so all users will be able to interact with content.
2. It is vital to build customer trust and make it easy for consumers to opt out of receiving 3G mobile marketing content.
3. Synergy between all brand communications, including web and TV, is essential.
What the brand promises through mobile marketing must be reflected through all the other mediums.
4. 3G campaigns will become more prevalent, but, currently, 3G-enabled handsets are in the minority. It's early days, so it is unlikely that users will be able to download big files or be able to pass them to friends. For now, make sure you've built in a low bandwidth option.
5. Ensure the campaign is compatible with all mobile phone speeds.
6. How will users be able to access content and applications if there is no signal? Will part of it be downloadable for offline use?
7. As mobile viruses become a bigger issue, it is vital to take precautions. A virus caused by a text will create the opposite of the objective, turning the user off the brand.
8. Encourage users to pass the message on by allowing them to forward it to friends for free.
9. If the campaign features paid-for content, ensure you have provisions in place such as reverse-billing and consider the cost aspects.
10. There will always be a consumer who shows an interest and requires more information. Make it clear how users can obtain this or communicate with the content owner.
Thanks to William Makower, CEO of Panlogic
CHECKLIST
Questions that should be considered when thinking about using a 3G campaign
- What are your objectives? Ensure your mobile campaign is aligned with and supports them.
- What type of phone will your audience use? Make sure you don't limit your campaign.
- Do the colours and content reflect your brand?
- Does your 3G campaign integrate with other channels? Your message should be consistent across mobile, web and other initiatives.
- Can recipients opt in and out easily?
- Will the content be used as a marketing tool? If so, have you ensured users can pass it on to other handsets to spread your message?
- Is your campaign interactive and engaging? Just like online promotions, 3G campaigns need to be dynamic and fun if you want to get the user's attention.
- If your 3G campaign is aimed at generating revenue, have you ensured that you will be able to meet demand?
.jpg)
.jpg)