“Rs 180 cr for mobile advtg is small, we expect it to grow”

Nokia’s D Shivakumar quoted MMA e4m India mobile ad spends figure to state early adopters will benefit from growing mobile advtg

e4m by Noor Fathima Warsia
Updated: Sep 28, 2012 8:15 PM
“Rs 180 cr for mobile advtg is small, we expect it to grow”

“You have to re-imagine the business because these are not technologies we have grown up with – these are unchartered territories,” said Nokia’s Senior Vice President (India, Middle East and Africa), D Shivakumar while talking about the mobile opportunity in India, given the mobile consumption patterns and the data usage behaviour of the market.

Shivakumar quoted the recently released mobile advertising spends figure by Mobile Marketing Association, in partnership with exchange4media that stated that mobile ad spends figure in India were at Rs 180 crore. For him, this number was not big yet but would grow substantially in the next three years. He said, “Traditionally, big advertisers take some time to adopt a new media. It was players such as Nirma, Vicco and Vicks that were the first to get on board television – the big brands had come in five to six years later and the early brands had clearly benefitted. The case would be the same for mobile too.”

Mobile advertising market is driven by display, search and SMS at present but the future drivers of mobile advertising would be LBS (Location Based Services), applications and video. Some of these, such as maps, were a challenge in market like India at present but the approach to LBS was changing from seeking direction to looking for something fun or latest cool hangout in the evening and the likes. For Shivakumar, just as searching a topic and then searching a person had picked up, searching a place would also pick up in the Indian market.

Ultimate and mass personal customisation
While measurement is still a lacuna in the area, mobile ads perform four to five times better than online ads in key metrics such as brand favourability, awareness and purchase intent, according to Shivakumar. But those who begin with metrics are missing the point on mobile, he further said.

“You have to trust your gut and instinct. Mobile coupon receive 10 times higher redemption rate and it fills in 90 per cent of ‘dead time’, which is to say when we are not doing anything while waiting, travelling, very late or early hours of the day, so it can really engage a consumer,” asserted Shivakumar.

For him, the philosophy is food, air and mobile phone.

The dividing line between smartphones and feature phones is also blurring everyday and on account of screen, touch and capability, smartphones are changing fundamentally. A good smartphone is the storage of your life. In a market like Japan, five of the top 10 movies and books are mobile and leaders expect the online shopping in India will follow the Japan model.

Quoting another MMA ad spends number of 120 million mobile internet users, Shivakumar pointed out that not only is India the third largest mobile internet market but this is also essentially a young demographic where 60 per cent users are in the 18-24 age group. The challenge now is to monetise this.

Shivakumar was speaking at ad:tech held in Bangalore.

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