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2009-03-23
Mobile search to grow with smartphone adoption: TMP exec


Consumer adoption of smartphones is causing an increase in mobile search activity, but the dynamics differ from wired Internet searches.

In this Q&A, Gregg Stewart, senior vice president of TMP Directional Marketing, shares his outlook on mobile search, where Google and Microsoft stand, and how advertisers are taking advantage of this channel. "We advise starting small to determine if this is an outlet that works for the brand and suggest starting in big metropolitan areas where the search volume is higher," Mr. Stewart said. Read on.

What is the current state of mobile search?
While there are no clear winners yet in the space, mobile search is growing at a rapid rate based on the current popularity of smartphones and the emergence of voice-based search for those who don't have smartphones.

Research shows that consumers are engaging more with the latest smartphone devices, including iPhone and BlackBerry, than past devices. This is causing a big jump in mobile search activity because of the functionality of the device, speed of the networks and unlimited data plans. 

The dynamics of consumers’ mobile searches are different than Internet PC searches. Consumers who are searching on mobile devices are in a find mode versus a search mode. 

The search activity is highly branded and name-based.

Consumers are also using voice-based search more on standard mobile devices and Jingle Networks [1-800-Free411], Google's GOOG-411 and AT&T's 1-800-YELLOWPAGES are all racing to claim this space. 

Where do you see the space going in the next year or so?
There is rapid innovation in the mobile industry today and a follow-the-leader mentality like other quickly emerging industries.

We see a continued march forward around mobile innovation as players try to stake out market share as it relates to usage. 

A great deal of applications are coming to market that do not have monetization. For voice search, there have been a lot of trials, but phase two will focus on monetizing activities and turning them into advertising supported media. 

Additionally, the continued proliferation of place-based media as it relates to GPS is important. Also, you will begin to see more advertising and promotions on personal GPS and in-car navigation systems.

What trends do you expect?
The current state of the economy will make the mobile industry shift its focus.

Early on, companies were spending money to trial new features without a return on investment plan.  However, today's economic climate is forcing companies to focus on monetization. 

Additionally, we see no slowing of the proliferation of advertising options.

Currently, carriers control search decks on non-smartphones and they will continue to look for ways to monetize this area and we will see more partnerships between them and search engines - for example, Verizon's recent revenue-sharing deal with Microsoft.

Another interesting trend we are seeing is around voice-recognition search.

Google has built a platform for text-to-speech and speech recognition applications. Consumers can search for local listings after downloading these particular applications on their iPhone.

How can marketers leverage this channel?
The best way for marketers to start applying a mobile strategy is to ensure all business/store locations are accurately listed on search engines, Internet Yellow Pages and other databases. It is imperative that these listings are correct so that on-the-go mobile searchers can find a store or business. 

Also, they should keep their eyes open for any available promotions. 

We advise starting small to determine if this is an outlet that works for the brand and suggest starting in big metropolitan areas where the search volume is higher.

Additionally, an already existing campaign, like a Google AdWords campaign, can be extended into mobile. We recommend marketers start there before expanding into niche sites unless one dominates their market.

Who would you say are the top 5 players in the space?
There are no clear winners in this space. 

However, Google, Yahoo and MSN are seeking and signing distribution deals with the major carriers. 

This is similar to what we've witnessed in the Internet Yellow Pages space, with major search engine distribution deals. The big search engines are realizing, though, that this is a very different space, compared to Internet play.

They don't have the doorway right to the consumer and need to find a way to unlock the 80 percent of consumers who do not yet have smartphones. For voice search, V-enable and Jingle Network's 1-800-Free-411 are dominant players.

Can you think of a brand that has leveraged the mobile search channel to market its message? Can you talk about a brand that has really nailed it?
So far, there are not a lot of standouts in the space. 

Starbucks has trialed display advertising on mobile search decks. 

Kraft Foods has made it possible for consumers to search for recipes and stores through an iPhone application.

Additionally, Lucky Magazine recently introduced an iPhone application that includes a shoe guide that ties into stores' inventories. 

For voice search, H&R Block, Pizza Hut and McDonald's have all successfully trialed campaigns.

Associate Editor Giselle Abramovich covers ad networks, advertising, content, email, media, messaging, legal/privacy, search, social networks, television and video. Reach her at giselle @mobilemarketer.com.


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