Elicit Consultancy's founder breaks down what the U.S. consumer wants from mobile advertising.

Whispers about the secret development of a Google mobile phone have been circulating for the last 18 months, but recent media reports suggest that the project may be nearing launch with the cost to the user heavily subsidised (or completely covered?) by advertising.

Enabling increased access to the mobile web is entirely logical given that the company was quick to recognise that, as they put it, "you don't need to be at your desk to need an answer." 

But how popular would a reduction in mobile phone bills be if the trade off is consenting to receive advertising?

Research suggests that U.S. consumers would react positively to mobile advertising as long these acid tests are met:

1. "What's in it for me?"
2. "As long as I call the shots…"
3. "I'll tell you what I want"

1. "What's in it for me?"
Consumers will not give consent to receive advertising, but consent can be exchanged for reward. According to a Harris Interactive report from March 2007, 35 percent of U.S. adult cell phone users are willing to accept incentive-based advertisements. 

The most popular incentives would be:

• Cash (78 percent)
• Free airtime (63 percent)
• Free content downloads such as ring tones or games (40 percent)
• Discount coupons (40 percent)
• The most acceptable method of ad delivery is SMS text message (56 percent). Simple MMS or picture messaging is preferred by 40 percent, whilst video messages are popular with less than a quarter of those interested in receiving mobile advertising.

2. "As long as I call the shots…"
The consumer will accept advertising by invitation only. Advertising based on an old media interrupt model is unacceptable. Consumers are reluctant to agree to mobile advertising unless they remain in control of the process and a clear get out route is available. According to Harris Interactive,

• Sixty-six percent would be more likely to consent if they retain the ability to opt out.
• Consumers are concerned over the quantity of messages. Forty-eight percent would be happier to accept cell phone advertising if they were able to choosing the number of ads to be received in a given period of time.
• The ability to select when advertising messages are delivered is an important factor for 40 percent.

A Pitch Mobile Marketing study from August 2006 found that in UK markets receptiveness of mobile advertising varies according to the time of day.

• The most popular time of day to receive messages is the evening (15.5 percent).
• The least popular is during the working day (6.3 percent).

3. "I'll tell you what I want"
Consumers would be prepared to divulge personal information and preferences as long as this data is used to improve the relevance of advertising delivered. What is relevant should be defined by the recipient (not by the advertiser). Harris Interactive found,

• Fifty-six percent would be happy to receive mobile advertising tailored to their interests.
• Forty-three percent would be willing to provide personal details to be analyzed to improve relevance of targeted ads.

This recent research supports the initiatives that have already being undertaken by the U.S. networks. Virgin Mobile USA is rewarding customers for viewing ads by reducing their cell phone bills. Amp'd, a cell phone company targeting the 18-24 year old demographic, has announced that it will offer an opt-in advertising plan later this year, where subscribers will gain access to free video games, shows and other content, in return for consenting to viewing adverts.The International Herald Tribune reported that Xero Mobile intends to distribute one million free cell phones on college campuses across the United States this year and give customers a 40 percent discount on their calling plans in exchange for watching four commercials a day.

However, advertising on such a personal device remains an emotive issue, and Google risks damaging hard-earned brand values if the area of mobile advertising is not treated with caution. People do not want their personal space to be violated by unwelcome messages, nor do they want to share their cell phone screen without some form of incentive or reward. Unsolicited and irrelevant advertising will be even less welcome than email spam

"The perfect search engine," says Google co-founder Larry Page, "would understand exactly what you mean and give back exactly what you want."

Now if they could apply that approach to the mobile advertising I receive and pay my cell phone bill….

Tim Davis is founder of Elicit Consultancy, specializing in integrated communications strategy. Read full bio.