CNET has an interesting article on big consumer brands gradually moving their attention to mobile phones. Cell phones offer the possibility of establishing a direct relationship with customers, and brands obviously hope to take advantage of such opportunity. However, jumping on the mobile bandwagon is not for everyone. As some expert point out, branded content needs to be relevant and high-quality in order to succeed. As you know, content is expensive to produce and, when it comes to mobile phones, it also gets expensive to deliver. This means brands really need to understand whether such investment is worth or not, in terms of ROI but also of brand strenght over time.

Two thoughts occur to me on reading this article and Martina's blog.

Firstly, should all brands get into using the mobile channel? Well yes, it's relevent to nearly all businesses, but being an MVNO is not the right starting (or ultimate goal) for most of them. Brands need help to find the right entry point into mobile; for some it's in promotions like text2win competitions, but more often than not it will be using mobile as a direct response mechanism and through providing mobile services to their customers.

Secondly, there is only so much room in the market for price led MVNO's so it stands to reason that new entrants into the market will have to differentiate themselves through the content they provide.

Posted by: Paul Berney at February 3, 2006 05:46 PM

Excellent points. Becoming an MVNO or producing branded content are only two of the mobile entry points which brands have to choose from, and rather expensive ones at that. The cost of the brands' desired actions rarely justifies these investments.

Cost, however, is only one part of the equation. If brand maintenance and reinforcement are the brand's desired action, then the MVNO or branded content route may be an option. Consumers with an existing affinity for a brand are most likely to respond to these offerings.

For an increasing number of industries, however,
winning over the hearts and minds of new customers is the brand's desired action. This requires innovative, subtle and well-targeted mobile marketing strategies that raise a consumer's awareness of a brand without raising their defense mechanisms to advertising.

Posted by: Scott Cullinane at February 10, 2006 04:54 AM

Yes, brands should start looking to mobile advertisement.

Posted by: Ron Wilson at March 20, 2006 08:37 PM