Making mobile make cents
Despite their promise and obvious user appeal, aside from limited test campaigns these image recognition tools have yet to be rolled out for consumers on a large scale.
According to JupiterResearch, 18 percent of advertisers have invested in mobile ad campaigns within the last 12 months, but interactive marketers continue to face significant challenges on the mobile front. The main barrier to mobile marketing is the fact that only 13 percent of consumers have 3G phones, the most advanced and fastest mobile technology, and the best platform for image and sound recognition technologies.
The most effective mobile marketing efforts to date have relied on simple text messaging, because it's a feature consumers can access without expensive data plans. Messaging also appeals more broadly to younger consumers, even when it contains advertising. JupiterResearch reports that 25 percent of phone subscribers between the ages of 18 and 24 would accept promotional text messages, as long as they provide benefits such as free talk time. A similar percentage of subscribers between 25 and 34 would also be open to mobile messaging.
But to date, more advanced features such as mobile broadband remain cost prohibitive. Other JupiterResearch data shows that individuals earning at least $100,000 were 37 percent more likely than average to use mobile broadband.
In other words, though the younger demographic may be more open to mobile marketing, advertisers wanting to use the more advanced image recognition technologies would likely need to target older, wealthier audiences with more sophisticated -- and expensive -- phone plans.
Still, many analysts remain bullish about the potential of on-the-go image recognition, particularly the two-dimensional barcodes. "There's a massive opportunity with things like hangtags in stores and the fact that you can print 2D barcodes. You really can integrate any backend functionality into it that you want," says Telephia Director of Mobile Media David Gill.
Gill and others continue to favor the barcode route over more generic image recognition technologies because they provide a standardized means of communicating products and offers to consumers. Additionally, the barcodes allow consumers two means of opting in to a marketing campaign. Consumers take the first action by scanning in the bar codes; in response, the direct marketers request that users confirm they want to opt-in before providing discounts or products.
Barcode-based campaigns, Gill suggests, could include such perks as the ability to scan a clothing tag to outfit a Second Life avatar, or create a product wishlist or registry for birthdays and other events.
JupiterResearch analysts highlight a few other promising areas for marketers wanting to venture more heavily into mobile. Short promotional campaigns as well as sweepstakes and special offers are the best starting point, the analysts say. Some research shows that nearly 30 percent of consumers would be willing to accept mobile advertising if accompanied by coupons, especially those for restaurants, events, DVDs or local stores.
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Leah Messinger is a freelance writer.
