Economic turmoil presents mobile marketers with opportunities: Study

By Giselle Tsirulnik

October 28, 2008

Why consumers are reducing spending

A new survey finds that worried consumers may be reducing spending on mobile phones, with important implications for mobile marketers in this economic slump.

GetJar's "Mobile Attitudes" poll revealed that 78 percent of respondents from a worldwide audience are delaying plans to upgrade or buy a new mobile phone as a result of the current economic climate. Similarly, the study claimed 76 percent of mobile phone users are immediately planning to reduce the amount they spend on phone usage.

"I think it's a good news/bad news story here," said Bill Scott, vice president of business development at GetJar, London. "Consumers are spending less for mobile handsets and the economic turmoil is causing this.

"For mobile marketers, however, this presents some opportunities," he said. "Our findings show that 28 percent of people we have interviewed have switched from a paid premium service to a free mobile application to avoid carrier charges.

"This provides and interesting alternative for marketers, as they can advertise within these apps."

Mobile services consumers spend the most on each month

When asked whether they had reduced spending on mobile phones in the last 12 months, more half of respondents said they had not reduced their spending at all, or by as little as 10 percent, during that period.

For those people who had reduced their spending, the economy was the reason given by just more than one-third of respondents, while 20 percent changed their usage habits to lower expenses.

GetJar also asked its users to reveal which mobile services they spend most money on each month.

Thirty-five percent said SMS accounted for the greatest proportion of their mobile phone bill.

Also, 18.5 percent said it was voice services, while just under 17 percent identified data services.

Premium services accounted for the largest part of the monthly mobile spend for 12 percent of the survey participants.

GetJar is a mobile application distribution and developer community, with more than 200,000 registered developer and beta-tester accounts.

"Traditionally, mobile marketers have had WAP sites, mobile banner ads, SMS and paid content like wallpapers and ringtones," Mr. Scott said. "The key that has been missing is free apps.

"Free apps are an incredibly great advertising vehicle," he said. "We are piloting in-app advertising within apps on GetJar and we are seeing CPMs of $2 to $40 because apps are something people use all the time.

"My recommendation for marketers is to take this data and see what is actively happening in mobile. They need to realize that in-app advertising is a highly targeted marketing opportunity particularly with the current economic climate."