Content downloads and advertising are in for a rough ride
Mobile providers looking to boost their revenues through content downloads and advertising are in for a rough ride, according to a new study by market researchers TNS.
While the vast majority (56%) believes that content downloads to mobile phones should be free of charge, there is a growing number of consumers that are so averse to advertising that they are now willing to pay a premium in order to avoid it, signifying a shift in how operators need to be tailoring their offering. A substantial 25% of respondents said that they would rather pay for a download if it guarantees them immunity from advertising. Surprisingly, this sentiment resonates most strongly with a younger demographic; 35% of 16 to 24 year olds are happier to pay for downloads than receive them with advertising. This compares to only 17% of 35 to 44 year olds. Mobile providers who don’t offer consumers the opportunity to opt out of advertising and instead pay for downloads, risk losing customers to competitors who do provide this option.
“With increasingly savvy consumers on one hand, and tough competition on the other, mobile operators are having to reconsider their current approach to generating revenue. The growing resistance to TV and online advertising has now been transferred to the mobile industry, and operators who ignore this negative sentiment are taking quite a risk”, says Amy Cashman, Managing Director of TNS Technology.
One symptom of this trend is the increased resistance to targeted advertising on mobile phones. Whilst 47% of people feel that adverts tailored to their individual tastes and interests are a good idea overall, half of those who were willing to receive targeted ads on the internet were not happy to receive them on their mobiles. With the negative opinions of advertising likely to backfire in the long run, mobile operators need to find carefully managed ways to appease their advertising-averse customers while still increasing revenue.
“Operators do need to treat their consumers as individuals more than ever before, but by improving the range of services they offer, not the range of [targeted] advertising. A premium subscription based model that sacrifices advertising completely, could be the solution. Operators might find that there is more of a market for this than they first thought”, says Cashman.
About TNS
TNS is a global market information and insight group.
Its strategic goal is to be recognisedas the global leader in delivering value-added information and insights that help its clients make more effective business decisions.
TNS delivers innovative thinking and excellent service across a network of 80 countries. Working in partnership with clients, TNS provides high-quality information, analysis and insight that improves understanding of consumer behavior.
TNS is the world’s leading provider of customised services, combining sector knowledge with expertise in the areas of Product Development & Innovation, Brand & Communications, Stakeholder Management and Retail & Shopper. TNS is a major supplier of consumer panel, media intelligence and audience measurement services.
TNS is the sixth sense of business™.
Contact:Emily Luscombe/Maja Rode Camargue 020 7636 7366
Sonic Branding For Social Media: Engage, Align, Connect
By Chad Cook -- With more than five billion people accessing social media daily, savvy brands understand the importance of cultivating a strong social identity. They devote massive resources toward brand awareness, audience targeting, content strategy and community engagement. Yet, while they know that social platforms are critical to boosting sales and attracting new customers, many neglect one of the most effective tools for connecting with consumers: sonic branding. Marketers often associate sonic branding with catchy mnemonics used by big brands like McDonald’s, Netflix and Intel in their advertising. But that is a very limited view of what sonic branding is and what it can do. Sonic branding is a way to build awareness and stimulate engagement across all touch points, from advertising to broadcast digital, in-person and social. And it’s not limited to members of the Fortune 500. Brands at all levels can benefit from a sonic identity that is memorable, engaging and reflective of its core values. Sound has been scientifically proven to be deeply tied to memory and emotion. There’s a reason that certain songs stick in your head and bring back memories formed years or even decades earlier. So, it’s surprising that sonic branding is often an afterthought in marketing plans. That is especially true in social media marketing. Faced with tight deadlines and strained budgets, creative teams are often tempted to select music for their content simply because it “fits.” Unfortunately, that may result in content that is in tune with what’s trending but is out of tune with brand identity. Effective sonic branding, by contrast, requires thoughtful strategic planning,... Read More