Mobile Operators’ 2008 Revenues Threatened by Mobile Advertising
AdaptiveMobile warns callous mobile advertising will cause costly customer churn
January 8, 2008 – Dublin, Ireland – AdaptiveMobile (Adaptive Mobile: Market leader in Anti-Virus, Anti-Spam and Content Filtering for Mobile Operators), the leading security provider of mobile subscriber protection for enterprises and individuals, today urged mobile operators to be prudent when planning how advertisers use their network this year, as the threat of unparalleled customer churn looms.
Lorcan Burke, CEO, AdaptiveMobile, comments: “All the signs point to this year being a record-breaking year from a revenue perspective for mobile operators globally. Messaging volumes are reaching an all-time high, believed to be over 50 billion in 2007 in the UK alone. Investment is also bullish in emerging markets, such as the recent news that a group of carriers including MTN, Orange and Vodacom are committing more than £25billion into the Sub-Saharan region.
“The continued development of next generation networks and the ongoing evolution of multimedia handsets such as Apple’s hugely popular iPhone will also increase subscribers’ purchase of high-value data services. Meanwhile, the potentially lucrative mobile music market appears to be hotting up too, with the likes of Vodafone and Nokia having announced ambitious investments in 2007.
“However, boom could well become bust this year for operators that carelessly expose their customers to mobile advertising, as businesses become more aware of the medium’s potential. A 2007 Pontis survey revealed that the mobile network is a powerful channel for advertising, with 11% of mobile user respondents stating they would buy products as a result of receiving an offer from their operator – a much better return rate than most other advertising and direct marketing formats.
“But that same survey also found that 70% found mobile marketing campaigns totally irrelevant to them, whilst two thirds are fed up with mobile phone spam - and this is where the danger lies: disgruntled customers switching to a mobile provider with a more suitable mobile advertising strategy.
“Several analysts have commented on the fact that mobile operators are still not able to sufficiently segment and understand their customer base. Sending the right content to the right people is key for the success of any marketing campaign, and if mobile operators want to sign-up the big brands that offer big money for mobile advertising, they need to understand and manage customer preferences and permissions. Otherwise both their bottom line and brand will suffer significantly this year.”
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