The mobile phone has many benefits (there are those seven unique features after all) but comes with its own challenges. The reach of the mobile phone alone makes it a very attractive marketing channel.
Advantages (Pros) :
# High penetration of devices with twice as many cell phones as PCs.
# Web searches on mobile devices will eventually exceed searches on PCs.
# Access to many international consumers who can’t afford PCs.
# Mobile phones can receive input anywhere-anytime, enabling location-specific and behavioral targeting for local businesses.
# A cell phone is a very personal device that people take with them wherever they go, making it easy for marketers to develop a relationship with customers through this medium.
# Carriers have customer data and location information potentially available for targeting.
# Personalization, immediacy, and interactivity of mobile ads encourage response by consumers.
# Preliminary data show good response rates for mobile campaigns (5% click rates vs. 1% for conventional web ads).
# New tool for brands and advertisers to reach new customers and target specific audiences.
# Smartphones and iPhone to enhance mobile surfing, promoting mobile marketing success.
Disadvantages (Cons) :
# Current WAP technology inadequate, discouraging web searching and surfing.
# General intolerance of advertising messages on a personal device.
# Current carrier-imposed “walled garden” approach prevents unfettered mobile web access.
# Adaptation of content and messages to the mobile web results in poor user experience.
# Scarcity of mobile web sites (only 8% of 1,000 top U.S. brands offer a mobile site).
# Current low usage of WAP-based mobile search doesn’t support investment in creating mobile sites because traffic volumes are low except on search portals and other high-volume sites.
# Trial and error period required for mobile marketers to learn how to succeed in mobile marketing, which differs from the traditional web marketing.
# Advertisers are wary of consumer privacy issues.
# FCC yet to rule on limiting use and release of customer data, including location information.
