Though India has the second largest mobile phone subscriber base after China, which has 600 million users, the concept of responding to a campaign is yet to catch on here. A customer can respond to a mobile ad by sending an SMS or by following a link on her phone to call a specific number (this is also known as click-to-call). Industry insiders say mobile advertisements will have to be integrated with mobile phone services so customers can interact. The success of mobile advertisements will lie in the value they provide to both customers and brands, says Suresh.
Mobile advertising in the country is expected to get a fillip with the introduction of phones such as Apple Inc’s iPhone along with third generation, or 3G, mobile phone services and high-end gaming on mobile phones. In a 3G environment, the incidence of mobile advertising would be a function of two key aspects—subscribers’ propensity to spend on mobile infotainment (blending information with entertainment) services and proliferation of handsets that can translate these services into rich user experience.
So, 3G subscribers with new generation, high-end phones would be potentially a big target base, says Deepak Kumar, general manager, communications research, IDC (India) Ltd.
IDC estimates are that 2.3 million 3G-enabled handsets were imported in 2007. The research firm says this is partly indicative of the market readiness in the country for 3G and related services. Usage of GPRS-enabled phones, essential for Internet browsing on the cellphone, is also going up, with around 16 million GPRS-enabled phone users in India.
Currently, 1.8% of mobile users in India access the Internet on cellphone, according to a 2008 report by The Nielsen Co. And with mobile Web browsing improving, video and banner ads will dominate the market, say experts. The biggest push will come, say experts, if telecom companies provide Internet access at low rates and standardize regulations. When that happens, the mobile phone’s beep will be music for the ears of advertisers, mobile solutions companies and customers alike.
The customer base makes it a lucrative market
mKhoj Solutions Pvt. Ltd
Launched: 2007
Lead team: Naveen Tewari , Chief executive officer
Amit Gupta, vice-president (business development)
Abhay Singhal, Vice-president (ad sales)
Mohit Saxena, Vice-president (technology)
MKhoj, which calls itself a “mobile advertising marketplace”, offers a mobile advertising platform currently operating across 16 countries. It provides advertisers a targeted way to reach out to consumers directly on cellphones around the globe on the basis of what they are surfing on their handsets.
Naveen Tewari, Chief executive officer. Ashesh Shah / Mint
Advertisers can use the reach and precision of the mobile phone medium to create a strong brand and generate leads. Publishers (the websites) can use mKhoj to get contextual ads for their customers to increase the value of their mobile property.
MKhoj’s interactivity options include call-to-action tools, click-to-call, click-to-link, click-to-lead and click-to-video. The firm offers multiple ad formats to increase brand recall.
Why it chose to operate in this segment: There was never a better time to get into mobile advertisement in India, says chief executive Naveen Tewari, adding that the customer base of mobile phone users makes it a lucrative market. Also, he says more people will start surfing the Internet through handsets in future.