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Mobile Users Turned Off By Ads: Universal McCann Survey

By Ingrid Lunden - Thu 16 Aug 2007 02:37 PM PST

Not great news for the legions of mobile ad firms and the many content companies hoping to graft their ad models onto the mobile platform: a new survey from Universal McCann found that display and video advertising on mobile TV, and the mobile Internet in general, are “irritating.” In a poll of 9,500 mobile users in 21 countries, 61 percent of people rejected ads that ran alongside mobile TV programs and mobile Internet pages. Meanwhile, paid-for branded content, opt-in Bluetooth downloads and promotional giveaways fared much better, with 71 percent of those polled accepting these formats.

-- Tom Smith, Universal McCann’s research manager for Europe, the Middle East and Africa, quoted in the Guardian: “People always complain about things that are interruptive—it still works in traditional media but in this environment consumers have so much choice where they source content from and if it detracts from the experience they will go elsewhere.”

-- Not sure how these results tally with the glowing projections that have been made for how much revenue mobile advertising will bring in coming years—one recent report put it at $2.1 billion by 2011 in the U.S. alone.

-- More encouraging are the number of devices being used to consume mobile entertainment. In addition to their mobiles, two out of three people surveyed also own a portable music or media player, 45 percent have a laptop, and 28 percent use portable gaming machines. The proliferation of non-mobile devices will come in particularly handy in some markets that have yet to make the transition from using handsets primarily for voice calls. In the U.S., for example, data makes up only 20 percent of the use of a mobile phone (in the U.K. it is 50 percent).

-- All content has a price. It seems like an obvious point, but the survey found that people are more willing to pay for branded products like music, movies and games, than they were for social media services like user-generated content and podcasts. Taken as a whole, the survey seems to imply that the Facebooks and MySpaces will have to think of more innovative ways, beyond advertising and charging for subscriptions, to make themselves financially sustainable long-term in mobile.

Posted in: Mobile Adv & Mktg, Research & Metrics



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2 Responses:
  • From Brian Stoller Fri 17 Aug 2007 03:07 PM

    A rebuttle to these survey findings has been posted on the Third Screen Media blog, highlighting results from a survey of mobile advertising audiences in the United States, showing a far more favorable status of mobile advertising.

  • From Patrick Parodi, CMO and General Manager of EMEA at Thu 23 Aug 2007 05:09 AM

    To grow the mobile industry, we need to move away form the current model where mobile content is almost 100% user funded, as this model does not offer any direct value or relevance to the user and impacts on mobile content uptake.

    All other media by and large use the traditional ad model of offering a benefit to the user - generally though ad-funding - so there is no reason why mobile should be different.

    We have found that if we offer subscribers the benefit of receiving ad-funded content they are more likely to opt-in, interact with the advertising, and download more mobile content.  In fact, 90 per cent of mobile users opt for ad-funded mobile content when given the option. 

    This not only ensures the user has a good experience with the advertising, but also increases mobile content downloads to effectively grow the entire mobile entertainment value chain.

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