PERSONAL marketing has already been galvanised by the direct response capabilities of SMS, but 3G technology is set to revolutionise it by adding a fast, data-rich, multimedia dimension.
‘New generation’ mobile technology offers video delivery and streaming, multimedia messaging services (MMS), fast email and Internet access, and expanded entertainment services at more than double the speed of data transmission using 2G technology.
The players
MMS services were launched by Optus, Telstra and Vodafone in 2002, but the biggest investor in 3G is Hutchison Telecommunications (Australia), which begun a renewed $3bn push in the local market, spearheaded by 3G last March. Hutchison’s offer, simply called 3, uses wideband code division multiple access (WCDMA) technology, involves a national network and offers live person-to-person mobile and video calling Telstra launched a 3G wireless service in December 2002 over its CDMA network on a trial basis with businesses in Melbourne, regional Victoria and greater Sydney. This was expanded in March this year when it launched Mobile Loop, an entertainment and communications application package, including games, music, email chat and information.
Optus offers services over its 2.5G network including MMS video streaming, pictures and games.
Vodafone meanwhile launched Vodafone Live in April this year, offering photos, Internet access, polyphonic ring tones, games and information over the General Packet Radio Service (GPRS) on a GSM network.
Advertisers on 3G
Legion Interactive CEO David Burden says 3G services will expand the creative applications of mobile phones in marketing and enhance the personalised marketing advantages SMS already offers.
“SMS was the first stepping stone, then MMS—there are about 600,000 MMS-capable handsets in the market. The next logical step is pictures, video, audio and animation. Incorporating creativity, a fun element, tie backs to other campaigns and new multimedia opportunities will broaden the canvas.”
Grey 3 managing partner Wai Kwok says Hutchison has taken a “brave gamble” in being the first mover but that competitors are taking a wait-and-see approach. But Aron Steg, managing director of mobile marketing solutions provider Psychic Software, sounds a more pessimistic note, predicting “3G won’t cause a major swing in consumer behaviour”.
“The only unmatchable features of 3 are video talk and high speed data. All the rest, from games to audio, and even pre-recorded video, are available on other networks via Java. And polyphonic ring tones and Net access are on 2G. So those two features [video talk and high speed data] will make or break 3G, but you have to remember not everyone wants to video talk and data costs are often too expensive to make use of the speed anyway,” says Steg.
Burden estimates critical mass won’t be achieved for another two years.
“Current handset penetration for 3G is so low it is not yet worth planning marketing applications for it. But in the future increased competition will mean lower prices and then the exciting element is streaming audio and video to handsets. The volume and speed on 3G means you can surf the Net, see live video and use MMS with greater speed and use creative applications.”
Close and personal
Burden and Kwok say marketers should approach 3G like any other new technology—with a strong creative and integrated approach. However, mobile marketing does offer an important point of difference from other media—the technology is linked intimately and constantly with the consumer.
Burden says recent research by Nokia in Germany showed 40% of its customers thought of their mobile phone as a “close friend”. But Burden and Kwok advise marketers to approach this intimacy with caution.
“If the timing of communication is not right, it can damage a brand,” says Kwok. “It’s really important that opt-in is taken to the nth degree by listening to customer preferences and behaviour and then tailoring messaging. As email is a feature on these phones, spam will be an ever increasing issue. Gartner Group recently reported that up to 35% of all inbound email is now spam.”
While youth and young adults are the most obvious targets for 3G, Burden says older consumers have also been enthusiastic, particularly with the use of IVM or instant voice messaging. And research by Grey 3 through its “Eye on Australia” annual report has shown, says Kwok, that marketing through mobiles should not be limited to youth.
While Burden believes that no matter how whiz bang the technology, mobile marketing should be just one element of a campaign, he also says SMS is now increasingly spearheading marketing campaigns.
“It has to be based on consumer response and talking to them when and how they want. But SMS is delivering better entry rates than the Internet or 1900 numbers. There is an increase in response when tied to TV campaigns—one recent Getaway program got over 30,000 SMS responses in the first hour.”
