Chances are if you have a smartphone, you’ve recently downloaded a trial version of a mobile application. And once you started using it, you realized there were some pesky ads taking up precious screen space.
That’s just one example of how the face of marketing has changed in recent years. Since the number of mobile subscribers (especially smartphones) is increasing globally, it is one of the few mediums in which ad revenues is expected to grow. No wonder companies are coming out with branded applications to promote their products and build customer loyalty.
For example, Kraft launched the iPhone application “iFood Assistant” in 2009 in the U.S. Although it is not entirely free (it costs 99 cents), it allowed users to search recipes, make shopping lists (using Kraft products, of course), view cooking videos, and store recipes. Other brands, particularly luxury ones like Gucci, Fendi, and Hugo Boss, have also created their own iPhone apps for promoting their products and brand recognition.
Kraft iFood Assistant for iPhone and iPod
The Japanese, known to be a couple of steps ahead in their technology, came up with Quick Response (QR) codes where consumers take a picture of a product code with their cameraphone. This product code is inherently linked to a URL, which automatically launches in the phone’s browser. The consumer then can write reviews right away or get bonuses like music downloads or coupons.
As a testament to the growing importance of mobile marketing, advertisers are quickly buying space for this week’s iPad launch on April 3. The New York Times iPad application has already sold space to Korean Air, Fidelity, Toyota Motors, and Chase Sapphire. These campaigns cost anywhere from $75,000 to $300,000 (U.S.) with some measure of exclusivity. Although this may seem extreme, advertisers benefit from being the early birds and having their ads seen by the potential iPad buyers in all the Apple stores. Prices may go down once the early buzz is over and the official sales figures for the iPad are in.
Mobile apps are certainly a growing area in which advertisers are promoting their new products and services. It likely won’t be long before ad revenues gained from mobile content surpass those from traditional platforms such as print or TV.
