Most mobile consumers reject ads but crave deals

New research suggests consumers are actively resistant to third party ads on their mobiles and may even leave their operator to evade them, but would welcome operator offers or deals.

Mobile phone users: welcome deals without the ads
Mobile phone users: welcome deals without the ads

Mobile marketing provider Upstream commissioned YouGov to conduct the poll, quizzing 2,198 adults about mobile marketing.

Of those polled, 72% said they would be likely to leave an operator serving third-party ads and 21% claimed they would do so immediately. Nine-tenths (88%) said it was "unacceptable" for operators to serve third party ads.

However, 66% said they would opt in to receive third party ads if incentives such as offers or discounts were used – 27% said £5 off their weekly bill would be welcome, and 22% favoured one-fifth off their bill.

Alex Vratskides, chief executive of Upstream, said: "It's clear that by using the mobile medium itself, a great opportunity exists for operators to cross and upsell their own products and services at minimal expense.

"As they are not promoting third parties, operators have de facto opt-in. They also have an enormous amount of customer data pre-gathered as well as an in-depth knowledge of their own products – all of these factors can allow them to be highly targeted in their promotions."

However, confidence in third parties is an issue. 52% trust their operator, but 8% would trust third parties. Consumers are also unlikely to want to be overburdened with messages – 38% said once per month was an acceptable limit, but 31% said they wanted less contact than that.

Just 14% said they would be happy to be contacted twice per month, but the ABC1 group was less keen (8%) then the C2DE group (20%).

Vratskides said: "Many in the industry have been talking about how operators can partner with third-party advertisers to boost their revenues but it's clear that this approach is fraught with risk.

"To create opt-in databases, you inevitably have to heavily incentivise customers with discounts, but the truth is bribery has no long-term value – it simply creates 'phantom' customers who are only interested in getting money off their bills.

"Looking at the number of customers who say they would switch operator as a result of receiving third-party advertising, it seems fair to say that opt-in databases are a false economy.

"Operators are the guardians of marketing contact with their customers. If they abuse their position, it can only lead to customer churn."

. Registered users receive a range of promotions including discounts, limited offers, money off and free trailers.

In addition, O2 and Orange are investing heavily in the ability to serve ads based on a user's physical proximity to a brand's outlet.

Topics

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Advertising Intelligence Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content