Bluetooth advertising: the new mobile advertising model for Indian market

Mobile advertising is the next big mantra in the Indian advertising industry. The mobile advertising market in India is still in it’s nascent phase.

Mobile advertising market in India:

  • Worldwide mobile advertising market is pegged at $1 billion currently. IDC believes with more than two billion mobile users in the world, it prevails as the first medium through which advertisers can reach such a large audience on an individual basis.
  • The mobile advertising market in India currently stands at Rs 5-6 crore market, set to grow to Rs 20-25 crore by March 2008.

Bluetooth and mobile advertising: How and Why?

Now that TRAI has announced Do-Not-Call registry service, Indian advertises are exploring innovative ways to reach out to customers. Apart from Permission Marketing, the next wave in Mobile advertising is via Bluetooth device.

Well, marketers will use your Bluetooth device to push ads/ring tones/mobile games and several other value added service.

bluetooth

One of the major ad placement for Bluetooth advertising is at the PoS (i.e point of sale). Imagine this :: you are at the Foodworld outlet and while you are paying the bill (lets say you bought some beer and cigarettes), you receive a contextual ad of a chicken outlet near the FoodWorld location!Leaving the contextual ad part aside (an Indian startup is currently working on this idea), companies are going gung-ho about pushing ring tones/mobile games ads to user’s bluetooth handsets @ hangout outlets (like Coffee day/Pantaloon etc).

“ARPUs are bound to go down unless operators come up with some value added services, and mobile advertising could be one of them,” agrees Ernst & Young national telecom leader Prashant Singhal. According to him, though the size of mobile advertising is miniscule, it has potential to grow at 200% a year, giving operators a new revenue source. With the average revenue per user (ARPU) constantly falling, it could be a saving grace for operators. From Rs 356 in March last year, the ARPU in December 2006 has declined by 115 to touch Rs 316.

Adds Rajiv Hiranandani of mobile2win: “Even though Bluetooth existed for quite sometime, it was only used for transferring of data for individual uses. Now the companies are setting up Dongles (servers) that beams the data across a shopping complex or a mall enabling commercial use of the technology”.

Challenges in the growth of mobile advertising thru’ Bluetooth?

Though the number of bluetooth enabled devices have increased, what’s really interesting is this is a sort of “if..only” advertising model. i.e. the entire viability of this model relies on whether the consumers have kept bluetooth switched on. Given the fact that most of the users aren’t tech savvy to even understand the usage of Bluetooth, I do see a huge challenge for advertisers.

At the same time, opportunities are immense, so is the possibility of spam content as well as virus attacks.

Only time will tell how Bluetooth advertising fares in the Indian mobile market. What do you think of future of Bluetooth advertising?

Do you keep the Bluetooth switched on by default? I’d love to know that!

source: BS, FE, img

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