The growth in mobile penetration over the last few years has been staggering, not only globally but especially in the region. Saudi Arabia and the UAE now have some of the highest penetration rates in the world, reaching almost 200 per cent.
Having more than one device is no longer the exception — it’s the norm. Yet, consumers are ahead of marketers, who are only just beginning to capitalise on the opportunity presented by these devices.
Sales of smartphones are up, as are mobile broadband subscriptions in the region. The UAE’s Telecom Regulatory Authority states that smartphones constitute 52 per cent of the total handsets registered in Q1-2014, while its Saudi counterpart reported the figure to be 49 per cent.
Demand is rising as users seek access to social media and web messenger services. Mobile devices have become ubiquitous in people’s lives, as they spend more time in a given day with them than with other media technology, overtaking laptops and TV. As brands seek to engage with consumers in today’s multi-screen environment, they will be encouraged by the fact that consumers respond favourably to advertising on mobile devices.
A recent study by Integral-OMG, the research consultancy arm of Omnicom Media Group Mena (Middle East and North Africa), found that ads on mobile devices are perceived in a more positive light than ads on laptops, desktops and TV.
Due to its ‘mobility’, this particular platform can be leveraged in more places than other forms of media, such as at the point-of-sale. While the study found that loss of privacy remains a top concern for consumers — particularly with regards to location tracking — this data also presents attractive opportunities for both consumers and advertisers.
Consumers have started to place value on the data that they share. By providing brands with their behavioural data, consumers can be targeted more effectively and receive discounts on products or services in which they are actually interested. The emergence of wearable and beacon technologies will continue to transform the way consumers and brands interact.
The mobile lifestyle is transforming more than media consumption; it’s also altering purchasing habits and shortening the path to purchase. Around a quarter of online transactions in the region are now done through apps, and m-commerce is expected to reach $5 billion by 2015, representing a third of the total e-commerce value.
There is no doubt that when it comes to mobile, consumers are evolving much faster than advertisers and publishers.
A similar trend was highlighted in Integral-OMG’s 2011 Digital Study, when social media took the region by storm. Advertisers do see the value of highly targeted messages delivered to their consumers at the right time and the right place, yet aren’t ready to fully embrace this platform because of a limited understanding of all its dynamics and metrics.
This is changing, as publishers provide detailed analytics and reporting to quantify the value of this type of advertising. By 2020, 58 per cent of all digital investments are projected to come from mobile, indicating that brands will fast-track their adoption of this medium and reflect market realities better than they do today.
Therefore, the onus now lies on businesses to incorporate a stronger mobile strategy into their communications planning.
It is likely that enthusiasm will soon replace circumspection. All the elements are now in place for mobile marketing to deliver the kind of numbers marketers want. The question is how much longer it will take.
— The writer is Regional Executive Director — Research & Insights, Omnicom Media Group Mena.
