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India way ahead of US, UK in mobile advertising penetration
TT Bureau |  |  13 Aug 2008

India is known for its success story pertaining to cellular subscriber growth. And now India is all set to be known for mobile advertising as well.

 

A new report by US-based mobile social community limbo and GFK Technology reveals that India is way ahead of US and UK markets in terms of penetration of mobile advertising. As per the report, 85 percent of mobile subscribers in India receive mobile advertising as compared to 51 percent in UK and 35 percent in US.  

 

In their latest Mobile Advertising Report, Limbo (mobile social communities in the US) and GFK Technology (market search agency) has revealed that India has led the way for mobile advertising.

 

 Based on second quarter of the current year this Report indicates that 85 percent of mobile users in India are receiving mobile advertisements compared to 51 percent in UK and 35 percent in US.

 

According to report, 74 percent mobile users in India, 48 percent in the UK and 22 percent in the US received advertisement in text format which is the most common advertising format. Radio also plays an important role in this advertising medium. About 40 percent mobile users in India recalled receiving advertisements on their mobile phones through radio. In UK this percentage was 9 and in US only 3.

 

The report also shows that younger males typically view mobile Internet advertising the most. According to the report the brands that benefited through this advertising medium were mainly mobile carriers, handset manufacturers, media brands and digital entertainment companies.

 

"These findings indicate the degree to which the mobile phone is used as a marketing channel, says Colin Strong, head of Mobile Communications Research at GFK Technology.

 

Jonathon Linner, CEO of Limbo said, "With mobile phone usage growing, it''s logical for more companies to seek mobile marketing as a tool to reach their segmented targets in this direct and highly interactive medium."

    
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13 Aug 2008(IST)  
Comment
In India, people are still ignorant about DND registry and/or they do not care about these ads(sms ones).Internet usage is too less and too slow to comment upon effectiveness about ads
Posted By :- Sumit
Comment
I completely agree with Sumit.The research seems to be screwed in Indian scenario...
Posted By :- Ramakrishnan
Comment
Though Sumit's and Ramakrishnan's points are valid, another driving factor is the free incoming calls and messages feature, that is prevalent acrossn all subscribers in India. However, in US, most of the mobile phone companies charge all incoming and outgoing calls and messages, unless some specific plan(free/subsidised rate calls/messages) has been opted for by the subscriber. Thus, the positive growth and penetration of the mobile services over a shorter period(compared to US and UK) is encouraging.
Posted By :- Darshan
Comment
Yes, all of you are correct. But this is one of the strategies being adopted by the service providers to increase their ARPU. But, what is the return which the service providers are getting on the basis of such push-pull strategy they have adopted would be more interesting.i.e total expenditure v/s the returns?
Posted By :- Sunil
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