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Of everything we own, apart from our keys and our wallets, the mobile phone is the one thing we take with us almost everywhere. When it's with us, it's generally on. And, with 60 million mobile phones in the UK, according to the Mobile Data Association (MDA), that's a sizable potential audience for marketers.

The MDA's statistics make for compelling reading. By the end of June last year there were 24 million 2.5G/GPRS active devices in the UK (46 per cent penetration of the UK market). Among these were 15 million MMS-capable devices (29 per cent). This had risen to 17 million by just September and penetration is now at about 32 per cent.

In March this year we sent a staggering 2.57 billion text messages. Use of other mobile technologies is also on the rise, with more than half of UK mobile customers able to access the web on their phones. In March we also viewed 1.82 billion WAP page impressions, a 30 per cent increase on 2004.

"The transition from SMS to richer media types is definitely happening - richer media provides better marketing media and higher response rates," says Peter Carson, CEO of mobile firm Enpocket, which works with clients including Vodafone and William Hill.

In addition to WAP and MMS, marketers now have 3G to play with - opening the door to streaming video content direct to phones. Yet use of MMS and 3G has yet to become widespread. In fact, many operators are only just starting to offer 3G. The flagship 3G network, 3, launched in the UK in 2003, but Vodafone only launched its services last November, with Orange joining it in December, and O2 launching its 3G handsets this February.

As a result, consumer take-up is still low, with estimates suggesting that between three and six per cent of the mobile population currently have 3G phones. For many brands, 3G offers more interest than action at this stage.

3G vanguard

There are some brave pioneers, though - Flytxt recently announced that it had won its first advertisement client for the portal 3. It is using 3G to promote the film It's All Gone Pete Tong for film distributor Redbus.

The campaign consists of a clickable banner displayed on 3's home page, which takes users to a mobile microsite about the film. And last month, Peugeot announced that it was to launch its new 1007 model solely through a 3G campaign.

These are the exceptions rather than the norm though. "Right now, video is for people who are at the cutting edge," says Dan Parker, co-founder and COO of mobile solutions provider Sponge. "The number of people consuming video content on 3G phones now is tiny, and while you can put video on non-3G phones it's slow."

While 3G might not yet be all pervasive, one technology proving popular with both consumers and marketers is the once-maligned WAP. With faster phones and colour screens, WAP is far more accessible than it was a couple of years ago. Both can handle MMS, Java applications (particularly popular for games) and the internet - the big difference between WAP and 3G is speed.

Jonathan Bass, MD of mobile solutions provider Incentivated, likens the situation to broadband versus dial-up. "You can do everything with 2.5G that you can do with 3G except streaming live video," he says. "We've just done a campaign for a live event using text, mobile internet and MMS. The whole content is available to GPRS and 3G phones - the only difference is 3G phones will get it bigger."

But consumer take-up is not the only factor hindering the use of richer media. Handset compatibility is a big issue; there's a wide variety out there and data on ownership is not readily available, so a brand could send out a campaign without knowing if its target audience is capable of receiving it.

Handset recognition

There are ways around this. Marketers can, and do, run WAP push campaigns that start with a plain text message and push consumers to a WAP site that can detect the handset model.

One system is by Mindmatics. Users upload campaign content once, and the system formats this for every handset on the market, as Mindmatics commercial director Geoff Morley explains: "We've spent six months pulling together the specifications of all the handsets on the market. Consumers are now directed to click on a link to download content and the system can tell what handset they've got."

Another way is to get the consumer to tell you the information by asking them for it in return for free content or entry into a prize draw.

But the standards issue doesn't just apply to handsets. There are also a number of different web browsers, not to mention different technologies for integrating picture messages and audio. And not every network supports text and voice integration. Then there is the number of network operators in the marketplace.

"Handsets can use MMS in different ways," explains Peter Norman, head of commercial at WIN. "If you wanted to use audio in your MMS, there could be one of three protocols you have to configure to do that." Brands need to be aware of different standards and produce campaigns in a range of formats.

Cost is another issue. "Everyone wants to talk about video, but who would pay to get it on their phone?" asks Parker. "If I want to supply a decent bit of video content to your phone, it could cost 25p. But what consumer wants to pay this to see an ad and what brand wants to pay this per consumer?"

This is where brands must come up with propositions that give consumers something they value in return for receiving a marketing message. For example, Sponge recently worked with Fanta to develop a text-to-win competition, coupled with three Fanta-branded mobile games for consumers to download.

Ease of use is also important. Most of us still only use our phones for texting and calls, so migrating consumers to more advanced technologies presents a challenge.

With this in mind, some firms are exploring options using text and voice. Technology and solutions provider HeyAnita launched Rapid Message Service (RMS) last year. This integrates voice and text, enabling marketers to send consumers a text message that leads into audio for more information.

"Text works," says Mark Willingham, HeyAnita VP of marketing. "But when you get into audio and visual, the impact can be much greater. With RMS, marketers can deliver a message that lands like a text, where the recipient can get more information through audio, and it works on every phone available today."

While WAP has proved its worth, text has not had its day. Still popular with many brands for text-to-win promotions, it offers a whole lot more.

It can be integrated with voice, used for mobile couponing schemes like mobile marketing firm Light Offers' M-bar-go (see box), and it provides the medium for value-added services such as appointment reminders and promotions.

The joy of text

Demand for text is certainly not abating. "Client demand is largely for standard text campaigns - our feeling is that it hasn't been fully utilised yet. There's not enough research to show how consumers use video on phones, but with text, people will consume it everywhere and it works on everything," argues Matt McNeill, CEO of Sign-Up.to.

What mustn't be forgotten is that it's still early days for mobile. And the consensus among those in the field is that issues such as take-up and compatibility are teething problems that will pass. And, with brands like Peugeot and Redbus leading the way with 3G, as well as increasing numbers of clever WAP and text campaigns going on, it's only really a matter of time before these newer technologies achieve the take up that they deserve.

TWO TECHNIQUES: MOBILE COUPONS AND VIDEO TEASERS

LIGHT WORK OF COUPONS

Mobile marketing outfit Light Offers works with brand owners and retailers including Sainsbury's-owned convenience chain Jacksons to offer consumers its mobile couponing service M-bar-go. This links the consumer's mobile device with the retailer's EPOS system and the M-bar-go database.

Consumers sign up to the M-bar-go club and receive a unique membership number, usually sent to their mobile as a barcode. Every week they receive a list of new, personalised offers. At the checkout, the operator scans their barcode and, if the correct items are in the basket, they're automatically discounted.

"If a member only has a very basic phone, we'll send text only, but if they can receive TV commercials we can send them - we can fine tune the tone of voice depending on the customer," says CEO Marc Lewis. The system also gathers data that can be used to target consumers better. "When they show the coupon at the till, we get all the information - what's in the basket, store location and when they're there, so if someone buys milk and cat food on Monday mornings, we know on Mondays we should be talking to them with similar offers."

VIDEO INCENTIVE

Mobile agency Incentivated works with a number of theatres, production companies, and galleries to send out video teasers to mobile phones. "The product is generally very visual," says Incentivated MD Jonathan Bass. "Now we have theatre clients sending out 15-second teasers of their latest show." Its most recent campaign has just launched for Cliffs Pavilion, a theatre in Southend-on-Sea. It promotes a new production of Dracula at the end of this month. The teaser is sent as a file to the theatre's mailing list of customers with 2.5G/GPRS phones. Customers receive a text message containing a link to a video that they are invited to download, plus a phone number and web address where they can buy tickets.