This year's final word (possibly) on one of 2007's most discussed topics - mobile advertising - comes from mobile media measurement company M: Metrics. In a story that will appear in the 2008 edition of the Mobile World Focus, the company's CEO and president, Will Hodgman, sums up the mobile advertising opportunity thus: "Even the internet, with its ability to deliver highly targeted ads, is limited by comparison, as an average of only 2.5 people access a computer in a household. The mobile phone, by contrast, is a one-to-one medium, and where there is a medium that offers that sort of access, there are bound to be advertisers," he says.
And backing up this assessment, M:Metrics data shows that mobile marketers are extremely effective, with response rates ranging from 5.7 per cent to 12 per cent in the US and western Europe in the month of July 2007 - a rate of response that would be enviable in any medium.
These are early days, of course, so don't expect multimedia-based advertising to suddenly explode on our handset screens. In fact, the company's own statistics indicate that just as SMS is ubiquitous, so text-based marketing is the most common form so far, at least in Europe, where the majority of mobile subscribers surveyed by the company reported that they received an ad via SMS in the month of September. Spain and France received the most, with reported levels of 67 per cent and 58 per cent respectively.
But this trend is not led by the likes of Coke or Renault. Rather as happened in the early days of the internet, the lion's share of text-based advertisements is so far coming from the mobile operators themselves, promoting mobile content or other services.
However, M:Metrics notes another, more worrying trend. It appears that advertisements that did not come from the operators themselves were often from companies that did not have permission to make contact. "In France, for example," says Hodgman, "our figures indicate that, in a given month, a whopping 17 per cent, or seven million users, received SMS ads from a sender who did not have permission to send ads to the person texted."
Of course the Mobile Marketing Association (MMA), interviewed more than once in these pages, is aware of the problem and has been creating best practices to avoid mobile spam. However, Hodgman advises: "Marketers must be cautious in what is a nascent stage of this industry to avoid killing the goose that lays the golden egg by alienating consumers through ambiguous opt-in policies - even if they are legal."
Texting isn't the end of the mobile advertising story so far, of course. In these pages we regularly discuss mobile web advertising. It is, after all, a good way to get a more eye-catching message over to customers, given the lack of flexibility of text. Or so you might think. Unfortunately there's still a bit of an issue over the heterogeneity of mobile devices, which, says Hodgman, "presents sizeable challenges to advertisers, who must develop creative materials or imagery for as many as 26 different screen widths in Europe and 29 in the US".
The good news, as MMA president Laura Marriott told us recently, was the MMA's recent specifications to categorise mobile ad banners to suit handsets of different screens, enabling designers to create the best product for this audience. The four sizes that the MMA has selected account for a majority of WAP 2.0 handsets that make up over 70 per cent of the European markets and 67 per cent of the US market. "These standards are already being adopted by mobile operators in Europe, and are providing a solid foundation for mobile to take off as an ad-supported medium," says Hodgman.
Solid enough, in fact, for M:Metrics to launch what it calls "the first mobile advertising tracking service, M:Ad Tracker, which monitors the inventory of banner advertisements on more than 100 mobile sites". The start of something big in 2008? Watch this space, as they say.
The full text of this article will appear in Mobile World Focus 2008, the annual directory of the mobile communications industry. It will be available early next year.