2024年1月23日发(作者:)

Study on Mobile Internet and Marketing

by Mobile Advertising

Nowadays, the mobile phone, a kind of communication tools, is developing to the personal

information terminals. It is also becoming to a medium information media and even a mass

media from a small one. In the process of mobile media’s development, media developers are

trying to take the golden opportunity to develop its potential. Marshall Mcluhan said, ” From the

long process of development of human society, a truly meaningful and valuable 'message' is not

the dissemination of the contents of all the times, but this era of communication tools used by

nature, it has the possibility to create and the social changes”

October 2004, released the advertisement of Motorola V3, which is the

first domestic wireless Internet commercials. 2006, China Mobile and China Unicom made a

high-profile launch of their mobile advertising business. From these, we can find mobile

advertising business has caused quite warm and desires in marketing industry

According to the statistics from Ministry of information industry in July 2008, the number

of mobile phone subscribers in China has more than 60.8 billion. This is a very exciting number,

which is attracting more and more telecom operators, traditional media, terminal manufacturers,

service providers and advertisers to devote to the development of this new media.

The direction of the development of mobile phones, a kind of information platforms, is clear.

However, this platform may be confronted with a lot of changes. The first question is whether the

advertising mode in personal terminal era will continue using the mode in mass media era. Then

the second question is what is the best mobile advertising mode, which fit for Chinese market.

That means we should pay attention to Chinese policies and regulations, wireless communication

operation and management mode, the restrictions on technology and other uncontrolled

environmental factors. Last but not least, the problem, those terminal information receivers’

intention and means to filter information, will seriously obstruct the effective communication of

advertising information. The future of mobile phones as advertising platform is worthy of

discussion.

1

A. The Potential and Strength of Mobile phones as an

advertising media

a. The Building of Mobile phones as an information

platform

In November 2007, Google released mobile phone development programs, and mobile

advertising was identified as the development objectives in the future. When the news released,

Google's stock price rose by 1.5% immediately at that day early in the morning, analysts from

William Blair & Co. USA Troy said, "I do not know what would happen in 2009 or the

subsequent development, but I’m very optimistic about the plan to develop mobile Web services

and advertising."

Focus Media acquired Beijing Kaiwei Dotad Technology Co.,Ltd by 30 million U.S. dollars

in 2006. Not long ago before that, China Mobile data services and Fractalist announced the

cooperation, and they will provide wireless advertisings,in several ways, like send SMS, MMS,

interactive voice services, games download, mobile Monternet website advertising columns for

enterprises, advertising agencies, advertisers. At the same time, one of the largest WAP site "3G..

cn" launched a wireless advertising directly. Three months later, China Unicom also launched the

wireless advertising business, and managed by a wholly owned subsidiary- Uninewspace. It can

be said that 2006 is the time for mobile media platform enter the size of the initial development,

the mobile advertising has now entered the high-speed development period. Before that, mass

SMS Push advertising has been used in the marketing, advertising mixed with cheating

information, the public the public attitude toward this is to be as much praised as blamed,

mingled hope and fear. This confusion period can be regarded as a pioneer wading across the

stream by feeling the way.

From "chaos" to "set", first of all, we should give mobile media and mobile advertising the

clear definition. An official version afforded by China Unicom is: mobile ads, or named wireless

advertising, or the fifth media advertising, means "with China Unicom's wireless value-added

services for advertisers (China Unicom's mobile advertising refers to the promotion services

provided for advertisers by using the wireless value-added services that provided by China

Unicom. And the advertisers of China Unicom mobile advertising business refers to legal person

who do not belong to the telecommunications value-added services industry, and other economic

organizations or individuals who design, produce, use agency services on their own or by

commission to promote products or provide services. 1Obviously, this is not a common

definition, but a definition only applies to a company related with business. We believe that the

definition of mobile advertising should be the ads business rely on mobile phone platform.

1 Zhu Shiyu: Market Mode Strategy Data—four visual angles of mobile advertising, advertising point, 2009,

No.9, page 135.

2

b. Advantages and Disadvantages of Mobile Information

Platform

Compared with other information platforms and media resources, the mobile platform has

an outstanding personality and its advantages and disadvantages are very obvious.

(a) Huge Number of Users, Clear User Information

According to authoritative data, the number of mobile phone users in China is more than 6

billion and the number of WAP nets users in China is more than 1.6 million users. From the

theory, mobile advertising can cover to the user. This is a very attractive number of audiences.

However, without the support of operators, the numbers of useful subscribers is under severe

restrictions. The underground advertising of mobile phone usually takes the advantage of

database and random dialing to send information, however, large numbers of which is

ineffective.

Once mobile operators join in the development and operation of mobile ads, they can

further develop the information of user database, make ads target accurate, and help to segment

audience effectively from users’ communications charges, use of space and other aspects.

Nevertheless, whether mobile phones users’ data and information can be used in advertising

business should still be clarified. Which is clear now is that users’ data can’t be used for

commercial purposes, but what the commercial purposes are; although it is clear that dealing of

users’ information means using for commercial purposes, then whether using users’ information

to find effective advertising objectives is used for commercial purposes; all of which should be

further clarified.

(b)Interactive, Rich Media form, limit of bandwidth and

screen

The audience can make effective interaction by mobile phones, and even interact with

advertisers through the wireless platform. The characteristic of interaction of mobile phone is

beyond the Internet. That’s why once the function of short message banned in the programs such

as Super Girl, they lost their former heat soon. Fetion, China mobile's instant communication

system, exceeded the old famous system, MSN, once it launched and is developing rapidly, for it

can directly link to SMS platform. The characteristic, interaction, is the most valuable

characteristic of the mobile platform.

Although China has not entered 3G era, colored screen mobile phones and intelligent

mobile phones are popular now. Pictures, texts, sound and videos can display by mobile phones.

The video mode, developed specifically for the mobile platform, also has large developing space.

Newspaper, TV, radio, etc. on mobile phones are developing and applying in order. Limited

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space and capacity of mobile phones has effectively been developed. Restrictions on mobile

phones hardware are under further breakthrough. The advent of 3G era will break through the

limitation of bandwidth, while mobile standby time will receive ordeal and mobile phones’

screen space may not have effective breakthroughs in short time. Another limitation is that part

of users are not so interested in new technology. The black and white screen is still under use.

Many people aren’t able to send short messages and more people aren’t able to surf the net by

mobile phones.

(c)Privacy, Interference, Defensiveness

How about mobile affects our lives have been the subject of much discussion, and even

some movies about this topic appeared, like cell phone, cross lines. Mobile phones are

increasingly becoming information terminals. The function of cell phone information encryption

has become a fashion business selling point. When we read information in mobiles, even in

public we can just read the message alone, outside interference is limited. Some advertising

message which is not adapt to the mass public media can be sent through this private information

platform which can get higher attention. In addition they will guarantee that the private

information of each basic cell phone users are subject to attention. Its eye-catching rate and the

reading rate is much higher than the general media information on the unit. We will give

appropriate attention to read the massage that accessed to mobile phone, so we will get pretty

antipathy against the unsolicited information in our mobile phones and will use a variety of

means, pick up different kinds of weapons to ensure nothing in mobile phone but only the

information needed, rather than the rubbish short message interfere with my attention. Mobile

phone users will even pick up the laws as a weapon to defend the power of this interference.

(d) Convenient Communications Platform Anytime

Mobile phones have become the information terminal people who can not be away from.

With the expansion of carrier networks, the blind areas of wireless communications have become

smaller, and the functions of mobile phones are improved. No matter whether receiving or

getting information, people begin to regard mobile as one of the most important information

channel in many occasions, easy to carry is the biggest strength for cell phone which the

traditional media, including Internet terminals can not afford to the consumers. Mobile phone

played over the earthquake relief efforts in Wenchuan.

This feature makes the phone into a fully-fledged 24-hour online information terminal. Not

only phone line, cell phone users are always online and will never dropped.

(e) C

omplicated Operation, Technology Restriction.

The operation of mobile information platform related to 5 main categories: content

providers, business management platform for editing and processing sectors, the promotion and

marketing departments, charges institutions, service and maintenance departments. The

successful operation of mobile media interests of all parties involved: network operators, content

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providers, terminal equipment manufacturers.

There is no sound legal system of the mobile phone advertising. Operators of state-owned

enterprises did not dare openly to enter this new market. And the big business enterprises will be

in the legal and illegal migration. CCTV 315 Evening Show revealed that the Focus Media is the

beginning of SMS spam.

SMS ads which in the absence of supervision and management are the most developed ads

in mobile ads. On the one hand mobile phone users and the public regard SMS ads as junk cell

phone messages, on the other hand the companies of SMS advertising industry only pay attention

to immediate needs instead of long-term development, and this make the SMS ads market in a

mess. The private information of mobile phone users become valuable goods under table dealing.

Government regulation seem ready to come out.

SMS is just a kind of information platform of mobile phones, but has become synonymous

with mobile advertising. This will be a serious impediment to other forms of mobile advertising

development and operation. This may seriously affect the development of 3G mobile phone

platform.

The development of multi-media mobile advertising depends on the popularity of 3G

technology. We can see many forms of mobile advertising, such as mobile TV, WAP sites,

2-dimensional bar code and so on. Although the popularity of 3G still have a long way to go,

3G's future is full of hope after the reform of telecommunications industry .

(f)High Prices

Generally, the domestic mobile phone users pay monthly in accordance with the flow. For

example, the monthly "mobile phone newspaper" usually costs 8-20 per month, but if the user

wants to know the layout of the entire contents of the news, he needs to download a separate

directive, and the price of each SMS is about 0.5-1 yuan. This charges are not cheaper than the

regular newspaper. Mobile TV business is usually considered in accordance with the flow. If you

watch China Unicom “U-Web” for an hour will costs you more than 200 yuan. Otherwise, small

number of mobile phone terminals can support the mobile TV business in current market, and the

general prices are usually more than 3,000 yuan. The high price of mobile phones is also the

threshold of the development of advertising platform.

c. Performance in Mobile advertising market

(a)” Pull ” and ” Push ”

Actually, traditional media usually attached with advertising information, when the

audience pull down the essentially information, they will pull down the ads information at the

same time as well. In the internet age, ads can come to face the consumer directly without

attaching to any other information which is pretty good for advertisers, but how to maintain this

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relationship, audiences and advertisers are still in a difficult game. Not so much the phone is a

communication platform, as that is a private mobile communication tool. Mobile phone screen is

equivalent to the user's private space, if a salesman into the customer's living room without

authorization will in trouble. And when advertising message comes into mobile directly, the

trouble will followed in. We called this uninvited way "push" which is fundamentally different

from traditional “pull” or half “push” half”pull” way. And this situation will lead to the update of

management.

How to clean and manage the “pushing” mobile ads? We can consider from the following

points:

First of all, from the view of management, those “pushing” illegal ads should be cleaned up,

such as underground banking, fake certificates advertising, prize information and so on.

Secondly, the "pull" approach should be developed while delivering mobile phone

information, which is the opportunity to develop permits marketing. Any mass text messages

must have subscriptions, but also can easily unsubscribe. And legislations has been reflected that.

Thirdly, encourage member system, develop enterprise CRM, and integrate advertising

information, customer services and network marketing.

(b)Attitude of Advertisers

According to a report from market research firm - Marketing Sherpa Inc about the

intentionality of 10 million dollars on advertising budget, the research results shows that during

all types of new forms of advertising, mobile advertising is Mobile advertising is the most

promising one and its election was the highest, almost 9.6%. This result means that if the

respondents (advertisers) have 100,000 U.S. dollars in the advertising budget, nearly 10% of

them will spend the budget on mobile advertising.

There are three attitudes for Advertisers towards mobile ads. First, some advertisers think

mobile advertising is promising, and take positive attempt. They think low cost and high reach

rate is the main strength of mobile ads. And they don’t care that spam messages could destroy the

brand image. Second attitude for some advertisers is doubt. The development of mobile

advertising is uncertainty now. Advertising effects require further verification, Some cautious

advertisers prefer to ride the fence on that. Third, some advertisers became pioneers of new ads

forms. When 3G become popular, some well-known companies involved in mobile phone ads. In

Japan, Louis Vuitton started running ads on mobile phones in 2007, after that Cartier and

BVLGARI both started to lunch mobile ads. In China, BMW and Li-ning have teamed up with

Focuswireless to launch Pay-Per-Call ads. has established their own

marketing database by member system and gets the permission to send members advertising

information.

IResearch study found that in 2008 mobile Internet market size is about 9.66 billion RMB,

up 54.5%. And the main income is from flow charges and Communications, Advertisers pay and

other props games for less cost. The major factor of the low income of WAP ads is that the

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awareness for advertisers to wireless advertisement is low. At this stage, small and medium-sized

advertisers are the main advertisers of mobile ads, while many of the brands still choose riding

the fence. 2

(c)Action of Agencies

The reputation of advertising agency who digging in the mobile payment platform is not so

good. The general consumers do not agree with mobile advertising and the exposure of some bad

behavior media in mobile advertising industry makes the development of mobile ads in an

awkward social environment. Of course, if prospectors make high profit, they won’t care about

the censure. But if this happens, this industry will walked with legal and illegal. The most

important problem for those who are in this industry to solve is self-discipline and protection of

user’s privacy.

Exposed from the current situation, advertising agencies through acquiring agencies that

send spam, or buy phone numbers from operators, or acquire some ideal numbers from some

companies have customer’s details, like banks, insurance companies. And then classified the

mobile users by collecting mobile phone user's information in accordance with a variety of ways,

such as age, spending habits, and then send advertisers’ information to those mobile users.

Mobile phone number and user information is not only the basis of mobile advertising business,

but also offers advertisers a bargaining chip. Mobile advertising agencies will try every method,

use a variety of ways, through various channels to obtain this lifeblood. In addition to the

adoption of phone numbers resources, they will monitor mobile phone users’ online behavior

through technical means to obtain users’ consume habits. This behavior just like kill the goose

that lays the golden eggs which is very adverse and serious harmful to the development platform

for mobile phones.

I think the ads message that sent to the mobile directly without permission is immoral, but

reasonable if these ads message get the users’ permission and subscription. If you want to use a

large group of mobile phone users may rely on the content of WAP network. To achieve this, it’s

necessary to reduce the cost of surfing Internet with cell phone.

To push ads is not suitable for developing advertising channels and advertising products.

But for customer service and information services are not restricted in its list, the business

information which hold between the customer services and information services will not give

rise to resentment in general. The former can use SMS, the later can use MMS,and other ads

forms maybe need WAP websites, like cell phone desktops, mobile fiction, mobile games, WAP

website ads, mobile TV, mobile newspaper and so on. SMS ads need to be cleaned up, mobile

phones need to establish the credibility of advertising, but also need to find ways to establish the

effect assessment system so that mobile advertising can walk into the standardized, systematic

and scientific stage of operation.

2 /dushi/syxx/2009/03/13/

7

d. Mobile Advertising Value

(a)Precision marketing

Because of market segments, precision marketing has always been the dream of marketers.

How to send the information that consumers need to where consumers can get? Who are the

target customers? Where are the consumers? These questions are what precision marketing need

to solver first.

Mobile is a very good positioning tool, the customer information exposed through mobile

phone, and once the information generated by businesses will lead to the horrible power, so all of

world is enacting legislation to protect personal privacy of mobile users’. Legitimate business as

merchants, mobile phones may be subject to the availability of more space.

In all of new media, mobile advertising which the reach rate can be 100% is well promising

by the vast majority of advertisers. According to iResearch issued "2006 China's wireless

advertising study", mobile phone advertising market in China's is about 5 million RMB in 2006.

The world's third largest advertising agency BBDO's CEO Andrew Robertson predicted that:

Mobile phones and other wireless communication devices will become the main choice of

medium for advertisers, many advertisers will join the new media- mobile advertising.

Vice president Wangyu from Focus Media interpret the accuracy of wireless ads in

September 2007 Internet Conference,” Mobile is the carrier for wireless Internet, and a mostly

everyone has a mobile. A cell phone number on behalf of a person, the identity of each user are

clear, so mobile ads have very high accuracy.” But this accuracy is just in theory not in the actual

operation. In the actual operation, the question of how precise is still need discussion.

Mobile ads can be accurate, but if we just take a look at the business that spam advertising

companies doing, we can find out that it’s just the thousands of miles away from precision

marketing. Mass advertising messages are real spam. WAP get attention like traditional media

just like Internet which is different from precision marketing. Precision marketing is currently

only a possibility, but in the customer service we can do a better job, so mobile media services

should learn from customer service.

First of all, we should establish an audience database, and then classify the audience in

accordance with the flexible and convenient way in order to obtain huge data resources. At the

same time, update the database regularly so as to realize the precise marketing.

(b)Database Marketing

Database marketing in the Internet era has great development, also made outstanding

achievements, but the connection between database and client still exits problems, such as some

instant information cannot directly to clients, the database can only passively waiting for

customer log in and then display relevant information, some database platform connect with the

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SMS platform of telecom operators to send message to related customer instantly.

May 2006, Sports brand ADIDAS lunched an advertising on the platform of China Unicom

and achieved amazing effect. Results from Communication University of China Mobile Media

Data Center MMDC showed: WAP PUSH click rate is 4.38 %,text link rate reached 4.25%,

registration rate of ADIDAS WAP site is 4.32 %. In the media network, the click rate of

BANNER ad on a portals is usually about more than 1‰. Such a good advertising effect and the

previous criticism of the text messages is a huge contrast. This result shows us: User is not a lack

of demand for ads, but they are not interested in those ads offensive.

The media in the network, a portal site click-through rate is often a few per thousand. and

the previous criticism of the text messages a tremendous contrast, the user is not a lack of

demand for ads, but they are not interested in those ads offensive. This requires the data to the

user-depth analysis, accurate information to the users who need them. This requires user-depth

analysis to the database, send the accurate information to the users who need them.

Market need to use the data, but the context of lacking data putted traditional media in an

embarrassing situation, developed slowly, while in the mobile media research there is no data

there is no step, operator and advertising agencies need to work closely with the third-party data

agencies, according to the product’s advertisement characteristics, constructing a large-scale data

analysis system, making it operate as the most hopeful role in ad business.

B. Current Situation of China’s Mobile Ads

a. Mobile Advertising Market Size

Mobile advertising is still a very small market, according to Opus Research survey, in 2012,

it is estimated that North America and Western Europe mobile phone network advertising market

will reach 5.08 billion U.S. dollars. Investment brokerage firm Oppenheimer believes that in 3

years this market will reach 4.8 billion U.S. dollars, in 5 years to reach 10 billion U.S. dollars.

3

According to iresearch survey, in 2007 the scale of China's wireless advertising market is

7.8 billion yuan, increased by 56 percent more than the last year. With the popularity of 3G

networks and the variety of phone models in 2010 the market scale of China's wireless marketing

will set a new record, reach 2.2 billion. The size of wireless ad shown in Figure one.

3 Long Zhen:Unified phone system in the future, Google and 33 megacorporations’ games,[EB/OL]

/f/news/0711/27/

9

IResearch survey have reported in

the "Wireless marketing research report

in 2007 " China's wireless advertising

market is at the end of the Introduction

period. In this stage, the style and

channel of wireless advertising

constantly bring forth innovation, some

new mode of marketing started to form

its own characteristics. Precision

wireless advertising, interactive

features produce direct and quick

effects as the business owners’

expectations. Emerging wireless

Figure 1:2006 the tyes of china’s mobile phone

advertising, data from:MMDC

advertising service provider in the domestic and international brand companies all believe that is

worth to invest the wireless advertising market. 4

In the whole industry chain,

the revenue of wireless

advertising companies occupied

63%, as the picture 2 showed.

Various well-known brand

enterprises has been gradually

recognized the mobile

advertising marketing mode or

6

Pictures 2:the breakdown of advertising revenue in industry chain5

wireless marketing mode, WAP

sites locate users by means of

the number resources, then

through registration, download,

games and other interactive

forms to Improve viscosity

stability, advertisers can share the breakdown of audience’s information by the WAP site. 4A

advertising cooperate with wireless service companies to involved in this field, it has become an

important driving force in the developing process of wireless advertising market.

4 Iresearch survey:China’wireless ads market will go out the introduction period and step into the growth period

[EB/OL]/consulting/wireless_service/?classid=6&id=71100

5 MMDC: Mobile Media Data Center of CUC(Communication University of China),MMDC is studying the

effect of mobile media through monitoring and analysis, developing the data systems of mobile media, as well as

studying mobile advertising and marketing innovation model.

6 Iresearch consulting:the companies of wireless advertising playing as a pushing role in the wireless ad. Market

[EB/OL] /html/consulting/wireless_service/DetailNews_id_

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b. Advertising Business Model of Mobile Media

In China, all kinds of mobile advertising forms are emerging in multitude , different forms

will have its own separate application. Through applying these advertising forms integratedly

and creatively, it is easy to meet better communication effects.

TYPE

WAP

advertising

The products of advertising

Including the forms of advertising

which link to official WAP and free

WAP.

Remark

WAP linked advertising is like traditional web

advertising, in fact it rely on the number of WAP

sites users,whom can make the WAP linked

advertising eye-catching, WAP advertising is

suited to display brands and products as well as

adapting for long-term marketing strategies.

The mode of IVR、CRBT /coloring-plus, the

Voice

experience

channel of customer

service(10010)、ringtones and

china telecom 114 and so on.

Such adverting information is transmitted

through the operators’ voice channel,

delivered to the terminal mobile phone users.

Experience advertisements will promote the

communication between brand and users.

Terminal

Embedded

advertising

With the new production of phone Advertising information will be embedded in

to enter the user's screen saver,

wallpaper, screen switching, video,

ring tones, games and other

aspects of the embedded

advertising information.

marketing of

2-dimensional

bar code

Associating 2-dimensional code With the characteristics of small, informative,

with wireless WAP page easy to identify and higher stability,

technology, 2-dimensional code 2-dimensional code has been widely used in

and cell phone menu, search developed countries like the United States,

engines can be seen as the three

Japan and South Korea.

major importers for mobile on

line. In essence, the 2-dimensional

code is the third way of phone’s

access for mobile phone users

besides a mobile phone menu and

keyboard, it becomes an extension

of print media advertising.

Oriental type of Apparently,Oriental type of Early stage oriental-type of wireless advertising

wireless

advertising

wireless advertising mainly mainly for bulk SMS, because of the unilateral

users into more harassment, as well as more

depend on SMS, MMS and WAP characteristics of mobile phone, putting the

mobile phones with the terminal way.

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PUSH and so on.

complaints; from the trend of development,

oriental type of wireless advertising is valuable

once get the green light from users,it can

provide valuable information about goods or

services, and then creating value for consumers

and businesses.

Searching- type It is similar to Internet searching-

of advertising

advertising,including the mode of

buying key words or Pay Per Click.

Google also made use of the characteristics of

mobile phone, coming up with an innovative,

including using mobile phones searching to

make an immediate call.

Little

community-SMS- advertising

Based on the function of SMS, Based on the function of SMS, it is widely used

Messaging the users once they to send messages to the user, whom need more

enter into specific area, such as mature products information. It is suitable for

arrivalling the new provinces, Precision marketing, marketing information can

shopping malls, airports and so be pushed to the target mobile phone users, has

on. a good short-term sales performance.

Database-type

Marketing

The club of SMS, the application of SMS Club is the introduction of China Unicom,

industry database.

the characteristics of products, characterized by

making special target-groups database for

individual advertisers.

It can be seen from picture III

" users of mobile phone

advertising exposure" very clearly

that largest number of mobile

phone users access to three types

of advertising messages, the order

is SMS ads, MMS ads, and CRBT

ads. As the expectations of the

insiders, WAP sites ads emerged

as a new force. Phone-searching

ads is still in development stage,

WAP Push advertising and

2-dimensional code ads, which has

Picture 3: Users of mobile advertising exposure

a huge potential for development

advertising, also attracted the eyes

of many consumers. the mobile

phone advertising market in china direct toward diversification, have basically broken the

monotony of SMS ads .

However, due to the proliferation of SMS-advertising, many people have the misconception

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that mobile advertising is SMS ads. Mobile advertising has various types of products, these are

some kind of mobile advertising products showed more influential and better development,

including SMS ads, WAP sites advertising, two-dimensional code advertising, mobile-searching

advertising.

(a)SMS Ads

According with the publishing mode of different SMS advertisement, mainly divided into

four categories: First, enterprises; Second, the network content provider; three, mobile operators;

7four, professional advertising production, agents.

Focus wireless once called SMS messages ads as "new model of mobile phone advertising",

while driven by the interests of society, SMS ads was involved into a censure of the "junk" and

exposed in CCTV. where the way for SMS advertising out? The amount of advertising messages

that people willing to receive have a maximum limit, the more relevant content the SMS ads is ,

the more tolerant they are, otherwise, the content has nothing to do with them will comes through

lower tolerance, or even zero tolerance. If the form and expression is very creative, even if in the

face of unrelated content, tolerance will be greatly enhanced, and may even be the opportunity to

once again spread. So how to turn mobile phone advertising into non-spam messages, to enhance

the tolerance of mobile phone users, which is a big problem need for the operators of SMS

advertising to think and solve. First, self-discipline is very important, it is wrong to release or

throw down SMS advertising in a large mass, the amount of SMS advertising must be within

tolerance of mobile phone users; Second, making a close connection between the information

content and receivers as far as possible, that is, advertising information meet the needs of mobile

phone users ; The third is to improve the expression and quality of mobile phone ads,making it

more creative , as a results, mobile phone users will become more tolerant. A bright future lies on

combining SMS ads with database marketing, fully exploit the marketing value of permits users

and use the emotional weapon to contact with customers. Comparing with ads, SMS in public

relations are more effective.

(b)Mobiles phone advertising in 3G era

In addition to better achieve the objective of seamless roaming at global level, 3G mobile

phones also better able to handle images, audio, video streaming and other forms of media,

including web browsing, conference calls, e-commerce and other information services. Issuance

of 3G licenses in China is divided Chinese wireless advertising marketing into two different

period, what is an important hallmark.

(1)WAP sites advertising

In 1997, the wireless application protocol (WAP) determined a series of standards for

Internet content filtering and turn to application of mobile communications, thus ensuring that

7 Xi lerong . Explore the feasibility of mobile advertising and its mode,Huazhong University of Science and

Technology [J], in October 2005, Page 20.

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Internet content can be displayed on mobile terminals in good condition.

March 13, 2009, the deputy chief engineer of the Department of Telecommunications

Research Institute of industrial and information-based, the deputy director of the Communication

standards Institute Wang Zhiqin, was introduced in " large-scale report of CATR depth

observation " in 2008, China Mobile's WAP flow 5,170,000,000 MB, increased by 100%. 2008

China's mobile phone users reached 93.92 million, the total number of users reached 641

8million.

WAP traffic growth is connected with the growth of other new applications such as cell

phone newspaper, the mobile video and so on, but also do with the operators reduce WAP

traffic-related charges.

WAP ads is similar to the traditional Internet advertising, this link-advertising rely on WAP

site users , including some forms of advertising what link on the page of the official WAP belong

9to operators and free WAP.

WAP site own a great interactive features, advertisers favor the forms as Monternet

comparison, 3G gateway, Kong air nets as representations. In term of advertising effect on the

free WAP websites, a certain amount of controversy exists in insiders. The WAP site operators

have developed a lot of advertising products, mostly about the text or pictures chain advertising.

Modern media data-research center carried out a survey in 2007 about the forms of advertising

on WAP site, nearly 60% of users believe that there are too many charges traps under the

wireless ads, therefore, very few users will take the initiative to click on the link advertising,

From Picture 4 "Form about WAP users’ attitude towards link ad ", we can see the user's attitude

towards mobile advertising are prudent. This is why mobile phone advertising market is in mess

and resulted in the adverse situation, where is full of deception and lack of effective regulation.

To make a breakthrough, we may have

to do the following:

First, it must strengthen supervision,

clean up the industry environment, to

increase the audience's trust in the media.

Secondly, to change the content and

Picture 4:

the attitude of WAP users toward link-ads

form of the mobile media, whose are

different from the Internet and the

characteristics of traditional media.

Third, we should develop the mobile

phone advertising technology platform.

Fourth, we will increase the number of WAP users, make a detailed management of user

8 Reported that in 2008 China Mobile WAP traffic of 5.17 billion trillion [EB/OL]

/a/20090313/

9 Zhang Yi:Ai media advisory released the report of the global wireless advertising: China's development is

surprising [EB/OL] /donews/article/1/

14

groupe, then improve the practical effect of the media and economic interests.

We all optimistic about the prospects of the WAP network, no doubt WAP will be widely

used in 3G era.

(2)Mobile search

According to the definition of

IResearch, mobile search is a general term,

based on mobile networks search technology,

users can use a variety of means as SMS,

WAP, IVR, to obtain access to gain

Internet information, mobile value-added

services and local information. At present,

China's operators for wireless search

technology is divided the wireless-search

profit model into client-side fees and

10enterprise-side charges.

To increase the amount of information

in the WAP site and change the mass of

Figure 5: China's wireless search request and

forecast Scale

Internet content into a form which suitable

for mobile browsing, that is an urgent need

for mobile search to be addressed. Internet-search companies have vast resources, and occupy a

dominant position in the mobile search area. Google introduced the open-source mobile phone

alliances, the direction should be related to the consistent trends of promoting cell phones to

participate in the sharing of Internet resources. In view of Figure 5, the volume of mobile search

request has been increasing, and the growth rate had slowed down.

10 International Analysys: Analysis about the profit model of China wireless search industry [EB/OL],

/main/www/newshtml/?from=baidu,march 2006

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c. Learn from Japan's I-MODE Mode

NTTDoCoMo's I-mode

mobile Internet model in the

Japanese market was a great

success. DoCoMo in

Japanese means "wherever",

"I" means Interactive,

Internet, and I. I-mode

packets using a unique

technology, these functions

such as text, animations, ring

tones are all available in the

"narrow net", these are barely

emerged in SMS, I-mode

mobile phones will be able to

Figure 6:wireless website in japan

run e-mail, online chat, online games, calendar and browse the network news and other

applications, which are similar with the WAP.

I-mode's success, first of all, thanks to Japan's mobile phone market, here has been fully

develop and maintain a state of universal Internet access. Japan mobile phone penetration rate is

about 84%, of which 90% of the models support wireless Internet, cell phone Internet access has

become a part of Japanese life. In 2005, the use of 3G service total 70% of mobile phone users,

the flow pattern of monthly fees and charges system, expanding the user's freedom of using your

mobile phone to surf the Internet. 11

Secondly, thanks to Japan's wireless Web site to be able to maintain the trend of strong

growth, in Figure 6. The number of Japan's official wireless Web site reach 4635, meanwhile the

number of unofficial Web sites reach 87, 372, the total number of sites is more than 92,000. At

present, the number of Japan's wireless Web site is still maintains the steady growth.

Third, due to rapid business development of 3G in Japan and generally get the user's identity.

3G business is available in Japan in 2001. In 2003, the size of Japan's wireless advertising

market was 10 billion yen,in 2004 reach 18 billion yen, in 2005 reach 28.8 billion yen. At

present, the number of Japanese Internet users was 50 million, while population of mobile

Internet users will reach 92 million. March 2006,people who visit the free-charge WAP website

already account for 68 percent of the total,far exceeding the scale of operator website visitors.

1312

To sum up, the development of Japanese mobile phone advertising is closely related to three

11 Co., Ltd. Dentsu Maki Nishida: the latest trends of mobile media advertising in Japan [EB/OL]

/events/20071111/ , iresearch Network November 11, 2007

12 2001-2005 the number of Japanese wireless websites , 2006 Report of WAP advertising in china [EB/OL]

/Report/?id=8885 iresearch Network

13 Zhu Xiaoxi:wireless ads battle, Science and Technology of China Fortune [J],No.4 2007, P42

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elements: First, popularity of the wireless site and terminal technology; Second, relatively low

cost; Third, rich in content.

NTTDoCoMo is a powerful corporate, which can integrate handset manufacturers, content

service providers and communications platform. In Japan, the combination of mobile phones and

mobile Internet, greatly increased the attraction force of mobile advertising toward advertisers.

I-mode mobile Internet in Japan occupies 70 percent market share. Mobile phone networks have

been more expressive with the popularity of 3G technology, mobile marketing has also received

more opportunities. In 2007, Louis Vuitton began to publish her flash advertising in the phone

page, provide original brand game for customers to download, later on Cartier and BVLGARI

are beginning to introduce mobile phone advertising, Cartier website provides original desktop

background for download. BVLGARI published a mobile phones novel, in which convey the

concept of their brand through the perfume activities.

NTTDoCoMo has its own brand of mobile phones and terminal devices, deeply affecting

the mobile phone manufacturers, the Strong hardware support lead to the success of I-mode

model. Japanese Operators book and buy mobile phones from the manufacturer, and then sell to

their retail with a low price, sometimes even free, so that retailers can easily sell phones and

services, thus the enthusiasm of promoting is quite high. Once the operators gain the month of

Correspondence, it will be used to pay off the cost of mobile devices, this mechanism allows

groups of young people and students to accept and quickly fell in love I-mode.

"Fee" is another important factor for I-mode model to succeed. In Japan, I-mode's monthly

fee is 2250 yen, or about 150 RMB , however, the Japanese per capita income is 100,000 yen or

so, so that the vast majority of Japanese people can afford this fee. Besides, One-way toll

collection mode allows users to rest assured.

"Content" I-mode is also an important success factor. NTTDoCoMo takes the resources of

website as the material of content, to ensure the quality and quantity of content, chances are that

attract more customers. After I-mode was associated with traditional media, it injecting great

vitality into the emerging mobile media. Such as the mobile phone newspaper was presented by

the "Yomiuri Shimbun" and NTTDoCoMo; Japanese advertising company Dentsu coordinate

advertising and game, allowing users to receive advertisements in the game information; making

digital television advertising, so that video advertising can be transmitted in mobile phones and

so on.

The success of NTTDoCoMo company is related to the Japanese national conditions, it is

not worth of using Japanese I-mode to develop our wireless ads business, I-mode give us

inspiration, that is integrating the mobile phone industry resources, cooperating with websites,

the right service model and the popularity of 3G are both the key elements for promoting

wireless advertising to success.

14 14 Some specific sites provide I-mode content, the designated site will be embedded in the functional portal of

NTTDoCoMo official website,then they can get help from the corporate. These content providers benefit from

their paid work, NTTDoCoMo will extract a commission of 9%. In order to be qualified as the NTTDoCoMo

"designated site", fierce competition among the content providers. NTTDoCoMo have a strict vetting procedure

to ensure the quality of content, making them more attractive.

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d. The prospects of China's development trend of mobile

phone advertising

As shown in Figure 7, the

developmental tendency of

China's wireless advertising

market are existing, between

2007 and 2010, nearly three

times as large as the size of the

market around. From 2006, or

the first year of China's wireless

advertising to early in 2008, it is

indeed surprising about growth

rate of China's mobile

advertising market. The outlook

for its future development

primarily depends on four

factors: business model,

Figure 7:

Forecast for China's wireless market size and growth rate

industry chain cooperation

model, technology and marketing promotion.

Business model: the profitability of mobile advertising models is very different from the

traditional mobile value-added services——profits from the advertisers rather than the users.

Thus the participants in the industrial chain, must find a new business model to adapt to China's

national conditions and sustainable development. The profit model is similar to the Internets’, we

can draw on, but the profit model of the Internet itself has not yet entirely clear, in addition, the

scope of Internet divided according to language, while cell phone service by mobile operators

divided according to zoning or regions are very different, so how to divide the distribution of

benefits in mobile advertising business, and how to determine the main operating issues are still

to be answered. A variety of existing business model, because any little change of the 3W2H

elements, may take different paths to development, the participants, who took the lead in finding

a clear business model, who will no doubt be in a good position.

Industry chain cooperation: mobile advertising industry chain have integrated mobile

value-added and advertising as the two characteristics of industries. Although operators are

eligible to control the industry initiative, but the structure of industry chain is complex and

advertising is highly professional, all operators can not bear the operation function alone, we

must rely on the various sectors of the industry chain, through establishing a clear division of

work and close co-operation. Despite some of the powerful manufacturers in order to obtain

greater dominance, they may expand their industry chain to the relevant part of the upstream and

downstream, but this expansion is limited. Before entering the stage of steady growth,

cooperation, and always will be the main theme of industrial development. Google's Android

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system is being integrated their industry chain, we can look forward to the domestic giant also

direct towards the integrated development.

Technical means: First of all, advertisers are most concerned about is that the effectiveness

of mobile advertising, "visible, traceable and quantifiable". Therefore an advanced monitoring

system for marketing is essential, to promote Keywords advertisers will no longer be sending a

large scale brand messages. while the audience should be content with brand content, to precise

communication, interaction and participation; Second, regardless of direct advertising

information or be embedded in business, it is necessary to identify different segments of its

market, at the same time does not infringe on the privacy, simple and crude way of traditional

mass certainly will not work; To have the core competitiveness of manufacturers, they must

grasp the leading edge of technology; Third, the mobile search category of mobile phone

manufacturers in the search advertising market will be faced by the most direct competition in

the technology.

Marketing: the market in an initial stage, because lacking understanding of owners and

users, market participants must invest substantial resources to carry out publicity and education.

Early in the business, using appropriate means of marketing to promote is particularly important.

Who take the lead in cultivating a habit, can provide high-user sticky advertising will be favored,

and then occupy a dominant position in the market competition.

Phone integrates the advantages of traditional media, with the 3G era, when the technology is

no longer defective, as long as setting up an appropriate manner and operating profit model, and

improve the structure of industrial chain, mobile phone media is bound to set off a media

revolution, to open a new media age.

Mobile phone advertising is still in the exploration and development of the early attempts, as

the chinese poems say: Litte lotus just reveals its little tiny top. In content production, network

development, tariff levels, evaluation of technology, industrial chain integration, etc. There are

certain deficiencies, as well as the restructuring of telecommunications, 3G license delay and

anti-unfair competition and other uncertainties. These are more or less restricting the

development progress of media as a platform for mobile advertising. On the other hand, mobile

media attract a huge number of audiences, whom is unique, private, personal sexual,these

characteristics contribute to the advantages of mobile ads, so that insiders of marketing have high

expectations toward the mobile advertising. To improve the quality of the external environment

and internal, in the 3G era, eventually, cell phone is indeed a personal information terminal after

mobile phone access to the Internet. It will certainly become an important tool in the marketing

businesses. Who have mobile phone technology, will be able to remain invincible.

15ABSTRACT:The

15mobile phone is becoming people's

information-processing terminal. Except the basic verbal conversation function, the

Wang Yu: mobile phone advertising on present status and future [EB/OL]

/06/0922/18/

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mobile phone also has the wireless-network-media-terminal characteristic. Mobile

phone for

adman infinite daydream, and attracted very many people to be eager to try

in mobile advertising. We research from the mobile media characteristic and to the

advertisement significance, the overseas advanced pattern and the model value, the

comprehensive all quarters data, through the analysis mobile advertising type, the

characteristic, the market scale, the industrial pattern, links to the China market

development reality, will discuss in order to the Chinese market mobile advertising

future the trend of development.

Keywords:Mobile Advertising、Mobile Media、Advertising

platform、I-mode

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