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Media tablets present obvious marketing opportunities

The much anticipated launch by Apple last week of its iPad computing device highlights the real start of a new market segment for media tablets that according ABI Research, will see 4 million units shipped this year.

By 2015, shipments are expected to reach about 57 million annually. ABI defines media tablets as having a touch-screen interface, 5-11 inches in size, with Wi-Fi Internet connectivity and video and gaming capabilities. Other features are available in some media tablets.

 ?There is not one single key finding of the study we conducted,? said Jeff Orr, Bend, OR-based senior analyst for mobile devices at ABI. ?Media tablets are a new and emerging category that is intended for some early markets that are looking at home use of different Internet content. 

?The thinking is the media tablet is targeted at entertainment and media consumption,? he said. ?But it will not replace smartphones, netbooks or laptops, but will remain an additional premium or luxury product for wealthy industrialized markets for at least several years.? 
 
A number of other tablets were announced at the International CES 2010. Players in this new field fall into two camps: traditional computer vendors such as Lenovo, HP, and Asus; and a number of new, smaller vendors such as ICD and Notion Ink.

The vendors in the latter category are often quite small and little known, and they see this market as an entry-point. Apple is one part of the mix and will probably be a fairly sizeable player, per Mr. Orr.
 
The biggest challenge faced by the media tablet category is how they will reach the market and generate awareness among potential buyers. New entrants to this market are at a disadvantage since they lack the retail relationships and network operator agreements already built by the more mature vendors.

Surprisingly, Apple may have done them a favor by raising the public profile of the whole media tablet category, Mr. Orr said.
 
?Because we are talking about a media tablet, there will be a lot of media centric opportunities,? Mr. Orr said. ?Consumers will use these devices to listen to music, get lyrics and share songs and this is an obvious marketing opportunity.

?There is a lot of real estate on the display of the device and therefore there is a lot of banner and text advertising opportunities,? he said. ?Also there are opportunities for upselling with ratings and reviews.

?Expect richer experiences with heavier use and reliance on broadband content: pre- and post-roll and interstitial ads.?