Webchutney which was ranked as the no.1 Digital agency according to a report has now announced the launch of its mobile marketing arm Culture Mafia. Culture Mafia will be full service independent mobile agency, which will integrate mobile marketing, advertising, and mobile internet development supported with in-house media and technology capabilities.
Is there a need for a specialist mobile agency?
Lets look at the value chain for mobile advertising first:
Brands -> Marketing/buying agencies -> Enablers -> Content Providers -> Aggregators -> Device makers -> Wireless operator -> Subscribers
The value chain is longer due multiple mobile formats and multiple operators having far more control over content thats pushed through their channels. Unlike internet where format has no role and ISP’s are mere carriers.
Various modes of mobile advertising as well
- Sms/mms
- WAP/GPRS (Display/Text)
- Voice calls
- IVR
- Blue casting/bluetooth
- 2d bar codes DM/QR Scan codes
Also the Indian market is very very nascent
According to Manish Vij of Quasar the Indian mobile market statistics are like the following:
- 15 mil GPRS users / 50% active users
- 52 cr revenue in 2008
- Growth 60% YoY
Besides for the above statistics the recent mobile user base numbers are very very encouraging to say the least.
Question remains – Is there a need for a dedicated mobile agency? Cant current digital agencies handle mobile as well?
Given all the above factors one would have to admit that mobile is a different animal than internet. The screen size, the multiple formats, modes of advertising make it a far more challenging medium for advertising that even the online medium. Some people Ive interacted with are of the opinion that mobile is a communication device and not a media to advertise on. Their take is any mobile ad (especially sms) is nothing but intrusive advertising. While I may agree to some extent I still feel that these are very early days in the life cycle of the mobile medium to pass a concrete judgement. Another 4-5 years shall surely paint a clearer picture.
On the whole this move by Webchutney also seems a way to derisk itself during a downturn as mobile advertising might see a jump during these tough times. The challenge for chutney would be to scale all these agencies when the good times are back. For now this strategy should work.
Rajiv,
India has close to 50-60 million Internet subscribers but more than 300 million mobile subscribers.
To bridge the digital divide it is clear that mobile is the way to go and not the Internet. Though. Internet can play a second fiddle.
India might as well skip the Internet and jump on the mobile platform. Reliance Money recently launched mobile trading. Many other companies are trying out other mobile services.
Given this importance of mobile, it is hard to ignore mobile advertising. Webchutney is on the right path.
rajiv — i have a question: in your value chain, are “enablers”, ad networks/servers? thanks, jacquie