Moderati's VP of marketing looks at how some major brands are reaching younger consumers with cell phone ringtones.

The market for all kinds of downloadable goodies for mobile phones is heating up. And as consumers branch out beyond popular music for ringtones, savvy advertisers are recognizing an opportunity.

Consumers with a fondness for their favorite brands, from sports to apparel to automotive, are downloading branded content to their phones to personalize them, and marketers are beginning to take notice. According to the latest research findings from Ipsos Insight's quarterly study on digital music behaviors, nearly one-quarter (23 percent) of American mobile phone owners have downloaded ringtones to their mobile phones. This poses a significant increase over the past 12 months, when only five percent of mobile phone users were reported to have downloaded ringtones.

A few interesting facts about ringtones:

1. According to Telephia research, over 70 percent are downloaded by women.
2. Ringtones skew to younger demographics, but the 25-34 demographic is also strong enough to take notice.  

Advertisers jockey for a spot on the third screen
 
Mobile marketing has proven itself as a viable way to reach a new and willing audience in a highly personalized way. But brand marketers are beginning to realize that every promotional asset (from logos and images to sound bites) has the opportunity to become a digital sales tool -- one with a viral component.

For example, Dodge recently introduced two ringtones and nine wallpapers available at http://dodge.modtones.com/ through a partnership with Moderati. Although the content changes periodically, the most popular file to date has been the "Hit It" theme made famous by Dodge advertising campaigns. "Hemi Rev" has also been popular and has recently replaced "Hit It" in the top slot. The newest tone, the Dodge Unleashed Mash-Up featuring Nazareth mixed with Chris Classic, promises to unseat the others in popularity.

For brands like Dodge, working in tandem with creative houses that understand their customer profile is critical. In this case, San Francisco-based Moderati worked closely with BBDO Detroit and Organic to develop the promotion, create the Dodge micro-site and add new branded assets. The mobile content is also distributed through Moderati's branded ringtone service, Modtones, available on most wireless carriers or at http://www.modtones.com/.

The beauty of this campaign and its uptake with consumers can be attributed to at least two major trends:

1. America's obsession with cars.
2. Personalization of cell phones.

If the old adage is true, that people have a tendency to identify themselves with what they drive, then it's no wonder that proud Dodge owners are eager to trick out their phone with Dodge-branded ringtones and wallpaper. Consumers respond well to ringtones that are highly recognizable, whether that's from heavy radio play or advertising. And each time their phone rings, others around them hear the advertiser's message.

Along with other prominent lifestyle brands such as Harley-Davidson and Tag-Heuer, both of whom offer free ringtones and wallpaper available for download, DaimlerChrysler is beginning to see the new advertising medium for mobile as an effective way to merchandise its content and build stronger relationships with consumers. And it's not just the idea of ringtones and wallpaper that's driving consumers, but also the integration of other promotional elements, such as the use of free promotional codes and giveaways that reward those who download branded files.

According to a study by research firm LogicaCMG, 90 percent of mobile phone users admit to being influenced by marketing promotions offered by their network provider. In return, companies are able to reach consumers wherever the road takes them, and it's no mystery to marketers that the more consumers interact with a brand's content, the more likely they are to carry that with them when they make their purchasing decisions.

Making "Hit It" a Hit

While the notion of an ad is changing, non-traditional brands are beginning to rival established entertainment properties for a share of the mobile entertainment market. But brands would be smart to work with firms who have proven expertise in this nascent industry, and developing a revenue share model that works for all parties involved is the first step to driving the success of your promotion.

In this case, Moderati pays a royalty to DaimlerChrysler for each file sold and provides the company with thousands of codes for free ringtone redemptions for use at auto shows and other events. Companies like DaimlerChrysler can then benefit from being a distributor of content, since downloads, in most instances, are paid for by consumers.

According to a recent report from Juniper Research, a rapid expansion in mobile content, allied to a sharp increase in 2.5G and 3G handset adoption, will combine to deliver global mobile entertainment revenues of more than US$59 billion by 2009. Ovum, another leading research firm covering the mobile marketplace, predicts that ringtones will comprise the bulk of the mobile phone personalization market, reaching a $6.5 billion market share in 2008.

With the promises of mobile quickly becoming reality, ringtones and wallpaper have become a commodity of their own -- a commodity in which content is truly king. As a testament to this, last summer "Hit It" narrowly missed the top 20 download list on a major wireless carrier, performing as well as hits from U2 and Nelly. So if marketers "still haven't found what they're looking for," this is definitely something to get revved-up about.

Cindy Lundin Mesaros is the VP of marketing at Moderati and is responsible for marketing strategy, planning and activities, including branding, product management, content production, public relations and promotions.
 
Cindy created the identity for the Modtones polyphonic ringtone services, launched in the summer of 2002, as well as the new Moderati corporate identity in 2005. She is particularly proud to have voiced the original "incoming booty call" ringtone for Modtones.