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How will Apple's iPhone 3G affect mobile marketing?

Today's launch of the iPhone 3G will have a huge impact on the mobile marketing industry as a whole, especially in terms of targeting Apple-savvy consumers.

Analysts feel that the release of the handset is an incremental step that will further what the iPhone has already been doing for the industry. However, its software and applications are much more significant than its hardware.

"What's really significant here is the release of iPhone 2.0 software and the Apps Store, opening up the iPhone for third parties to deliver great mobile applications," said Charles Golvin, Santa Cruz, CA-based analyst for Forrester Research. "We're going to see an explosion of innovation from developers making interesting new applications for the iPhone 3G."

This will mean a bigger market share for Apple and carrier AT&T, helping both attract new consumers and retain their high-value customers.

"Apple has delivered the message of the power of the Internet in your pocket, and nobody else has been able to communicate that very effectively to consumers in the past," Mr. Golvin said. "Within the 3G network the actual experience of the Internet on your phone is much, much better everywhere, its reach is ubiquitous."

Many savvy marketers have already created customized marketing campaigns specifically for the iPhone.

These campaigns optimize the experience so that it's far more superior on the iPhone compared to what people are getting on other devices, Mr. Golvin said.

For example, BMW ran a campaign last summer to coincide with the first iPhone launch for its X6 vehicle.

The campaign included billboards and signage in airports and other places with a promotional tagline and a call-to-action asking consumers to text a location-specific keyword such as 'BMW LAX' to a shortcode. This allowed the automaker to measure where they're getting traction, where people are seeing their ads and responding to them.

Respondents received a text-message with a link to BMW's mobile site. The site featured information and downloads regarding X6.

The site could detect the iPhone's browser and deliver specific content for the iPhone, taking advantage of its sliding user interface and other unique capabilities.

Online auction house eBay has also run marketing campaigns customized to the iPhone.

This trend is expected to increase with the release of the iPhone 3G.

"The iPhone 3G is a platform for advertisers to deliver all kinds of new experiences that they haven't been able to before," Mr. Golvin said. "All of Apple's competitors are bringing products to market that they hope are addressing the consumer's needs.

"Apple set the bar very high with the first iPhone, and this raises it even further," he said.

Features to debut on the iPhone 3G include a faster wireless network, GPS mapping, support for enterprise features like Microsoft Exchange and the new App Store. Like the original iPhone, the 3G combines the functionality of a phone, a widescreen iPod and an Internet device with rich HTML email and a Web browser.

"I think the iPhone is a shining example for the industry," said Jason Spero, vice president of marketing for mobile ad network AdMob. "It's important as a driver of marketing, and it's indicative of where the industry is going.

"The iPhone 3G is an example of where we expect the broad base of mobile media and mobile data consumption is heading," he said.

The iPhone 3G's faster network and $199 price point is expected to increase consumer adoption. The new App Store will provide incentive for developers to bring new, more advanced mobile applications to market.

The Associated Press has announced that its Mobile News Network native application for iPhone and iPod touch is available as a free download from the Apple App Store.

"The iPhone represents a very desirable audience for marketing from a demographics standpoint and from a mobile media consumption standpoint," Spero said. "Its users tend to be high-net-worth individuals, early-adopters with a high level of media consumption and engagement.

"This is a very exciting moment as a proof point of mobile marketing," he said.

Handset manufacturers are expected to follow Apple's lead by featuring mobile applications such as integrated GPS mapping services and audio and video players.

There are various mobile devices that are about to enter the fray to try to compete with the iPhone 3G, including the next-generation Symbian device, Blackberry maker Research in Motion's Bold, Google's Android device, the Sony Ericcson Experian, the Sprint-affiliated Samsung Instinct and new Windows Mobile-compatible handsets. Nokia has been experimenting with different interfaces inspired by the iPhone, such as touch-sensitive and touch-screen features.

"The entire handset industry and user experience is about to get better, richer, more interactive," Spero said. "What marketers have been excited about with the first iPhone will broaden even more.

"AdMob has served just shy of 250 million ads on iPhones worldwide and we expect that to grow dramatically," he said.

AdMob's iPhone ad units include banner ads and text-link ads of 35 characters or less with click-to-call, click-to-buy and store locator features.

"There are a number of different actions on the iPhone that have been particularly compelling for our advertisers," Mr. Spero said. "For example, we've run ads for Jaguar and LandRover where consumers can click-to-call to schedule a test drive. Advertisers are really investing in the iPhone as an ad platform, and we've seen very strong click-through and engagement rates with it."

Other examples of AdMob advertising on the iPhone include a click-to-video trailer for the Alien vs. Predator movie, click-to-buy on Amazon.com or another site and a store locator where consumers enter their ZIP code to find the closest retailer that carries the product being advertised.

"The iPhone has a resident, well-integrated, rich GPS mapping application with clean handoff from the browser to the maps," Mr. Spero said. "I think you're going to see devices from every manufacturer in the industry rushing to compete with this model. Apple's competitors are now on notice and under pressure to launch rich, strong media consumption devices."