Unsolicited Commercial Communications Regulation in India– Trigger for Mobile Based Advertisement
Applications Mobile Advertisement Mobile Devices Mobile Marketing Smartphone SMS Unsolicited Commercial CommunicationThe online advertisement spend by advertisers are reached INR 2260 Cr ending March 2013. The market size is too low. The advertiser’s prefer to opt for telemarketing and promotional SMS to reach out to Mobility user compared to application based mobile advertisement on mobile. The Applications ecosystem in India is not matured enough to offer hidden potential of device centric and application hosted mobile advertisement due to number of reasons such as backend delivery, Contextual capture, mobile e-Commerce mechanism. The lack of technology supported triggered advertisers to choose telemarketing and promotional SMS to offer product awareness drive through the mentioned media. In order to keep the cost low and offer better value proposition, many telemarketing and bulk advertisement providers decided to choose short cuts to capture market share. The move turned out to be risk for consumer privacy, content security. Post multiple regulatory directives, regulators failed to stop pesky telemarketing calls and SMS by telemarketing companies. In order to control unaccounted billions of message routing through illegal mechanism prompted regulators to put the onus on Wireless operators to enhance their network to eradicate or control revenue leakage which is impacting whole ecosystem player. Post few high voltage meetings and directives, it is observed that many companies indulged in Mobile Marketing using Telemarketing and SMS experienced drastic fall in their order flow and business. Any positive impact of unsolicited commercial communication regulation would force advertisers to find another medium to reach out to consumer base. With the growing adoption of Application among Indian medium to high end smartphone users, Mobile marketing business is going to be redirected to Mobile advertisement based marketing. In my earlier post, I mentioned about Mobile based advertisement market size of INR 230 Cr but I can see that $ Bn’s opportunity is waiting for the smart companies to capture.
Mobile and Tablet Based Advertisement Command 10% of Total Online Ad Market in India
Mobile Advertisement Mobile Marketing Smartphone TabletThe Internet and Mobile Association of India (IAMAI) and IMRB International report indicate shift in online advertisement segment. The different media components of online advertisement are search, display, mobile, social media, email, video. Indian Online advertisement market by March 2013 reached INR 2260 clocking 29% YoY growth. The growing online advertisement destination is mobile and tablet. The segment ad market spends reached 230Cr clocking 88% YoY growth. It is expected that mobile and tablet based mobile ad space is going to observe major upward spend by advertiser in next few years. Given the Indian economic size and generally FMCG, Telecom, Real Estate, BFSI sectors are considered big advertisers indicate revenue leakage in the space. Stay tuned for my upcoming post which will highlight how mobile advertisement segment can generate more revenue than print and newspaper segment
Indian Mobile Marketing Business experiencing fall in business post stringent regulation
Mobile Marketing pesky calls SMS Telecom Sector TRAI Regulation Unsolicited Commercial CommunicationThe regulatory effort to protect Indian wireless and wired subscriber privacy as well as to enforce regulation started to show positive impact after 5 years of effort. In recent months, Indian regulators warned few wireless operators to twist their networks identify, block and initiate action against telemarketing flaunting regulatory compliance forced Mobile marketing tools as well as service provider to remodel their service offering. The “Telemarketing and SMS based promotional activities are termed as Wireless Enterprise Mobility” by few service providers raised their concerns regarding fall in business post enforcement of Do not Disturb, Increased termination charges and termed regulatory moves as showstopper act. I am surprised to observe that none talked about consumer pain and overall benefit of regulation on wireless ecosystem. I also carry reservation in terming Telemarketing calls and SMS based promotional calls as wireless marketing because all kind of wireless service must be supported with subscriber consent. The current solution offerings neglect consumer side.








