Mobile is digital but all digital is not mobile
The title is not just wordplay. It is a classic misinterpretation played out in the advertising world. What type of an agency is best positioned to become master of mobile advertising? I have not heard a convincing answer to this question so far.
The way the advertising industry in general views mobile advertising is quite basic and far from inspiring. Though the mobile advertising has been “the promise” for several years, many good initiatives have simply died as the coming of mobile advertising has been delayed for too long. Meanwhile, the digital arms of the agencies have developed their skills in the fast-evolving web business. Budgets have exploded in the digital space and the results are very promising.
And then, oh yes, there is this mobile business. But with less than one-tenth of the overall digital budgets and with an at least ten times more complex ecosystem, mobile advertising in many cases does not make financial sense for agencies. Clients, however, want to be on mobile and therefore most of the agencies must master the mobile medium—but can they?
According to MobiThinking Guide to Mobile Agencies (July 2010), the top 10 agencies value mostly under $20 million in revenues, but astonishingly their staff numbers vary from a few employees to nearly 500! Their claimed reach is from nationwide to multi-regional (or even global) and they do everything from messaging to m-commerce. That’s a very diverse bunch of companies doing almost everything in mobile. Can a small market support their diversified efforts or do they say things just in case? You decide.
When will the major agency networks embark on mobile at full throttle, and how? Will it be through their existing digital agencies, stretching to cover the increasingly complex mobile ecosystems? Are they buying small independent players? Or maybe they are trying to create the needed know-how organically though their best creative and media agencies. And the biggest question of all—is there a CEO who is willing to invest in this nascent opportunity with much needed determination without a sufficient advertising spend to justify that investment?
It is no wonder that mobile ends up being a sidekick to digital in all discussions. And yet, nearly everyone admits that mobile will, eventually, be a dominant player. But when the inevitable market growth happens, catching up will be tough.

Antti is an enterprising visionary and architect of next wave of contextual and digital marketing, with strong credentials and insights acquired from over 2 decades of marketing & social marketing, telecommunications and advertising experience.



