Monday, February 4, 2008

Blog #1

I am writing my blog on the class reading from the economist.com, The next big thing. Advertising on cell phones is quickly growing. According to Informa Telecoms & Media, at least $81 million was spent worldwide on mobile advertising this past year. The advertising is through the use of text messaging. The article stated, “The biggest point of mobile ads is what marketing types call ‘relevance’.”

Blyk, a mobile operator in Britain, is offering subscribers 217 free text messages and 43 free minutes of voice calls per month when they agree to receive six advertisements by text message on a daily basis. In order to get this service, customers must fill out a questionnaire about their hobbies and habits. Customers will then receive ads that are relevant or would be of interest to them.

The reason mobile advertising is done by text messaging is because only 16% of customers in America and Western Europe have access to the internet via their phone. Many people choose not to opt for internet service on their phones because the screens are too small.

My opinion regarding the mobile advertising through text messaging is that I am opposed to it. If I was a customer through Blyk I would not sign up for the 217 text messages and 43 free minutes of voice calls. I believe receiving six text messages of ads per day would inevitably be annoying after a short period of time. For those individuals who don’t have text messaging on their plan, I assume they would have to pay the ten cents to receive it.

2 comments:

JoelKline said...

Lauren, good analysis. I don't relish paying Verizon $100 a month and then getting advertisement, either.

If mobile ads grow it will because we get something (beyond "information") in return.

Jennifer said...

I agree. I would hate getting ads on my phone like that. I even get mad when I get messages from a wrong number...they're wasting my limited number of messages per month! But, if some people like it and agree to it then that's fine. I don't really see it taking off too soon...but someday when we have more advanced cell phones, perhaps.