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Permission marketing likely to pick up steam

Permission marketing refers to personalised advertising delivered onto portable devices with the consent of the subscriber in lieu of free services.

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Advertisers to opt for more personalised, non-intrusive mobile content, says a study

MUMBAI: Imagine walking along Mumbai’s marine drive. You receive a message on your cell phone which says that a friend of yours is somewhere around and Café Coffee day would like to sponsor a rendezvous.

This may not be far with consumers indicating an acceptance to branded content, especially on mobile phones. Permission marketing is what they call it. It refers to personalised advertising delivered onto portable devices like mobile phones with the consent of the subscriber in lieu of free services. The mobile phone company would gain revenue from advertisers who incorporate their message to the content rather than from the calls that you make, giving them the leeway to not charge the consumer for services like making calls and downloading data.

A study conducted by Lodestar Universal signals that consumers are increasingly ready for branded messages and advertising content on their mobile phones, provided they are relevant to them and not invasive.  The content that appeals to consumers includes music, films, etc.

Nandini Dias, COO, Lodestar Universal, said:  “With India’s mobile subscriber base at more than 200 million and growing rapidly, advertisers will have to follow consumers; the total viewership of the top three general entertainment channels is around 140 million, quite a long way behind the mobile base. Portable devices, especially mobile phones have the potential to become the alternative out-of-home (OOH) media, with average amount of time spent travelling in India considered to be the second highest in the world.”

The study also indicates that the mobile phone companies have not been able to satisfy the consumer who is demanding more content for his device. The high demand for illegal content like music and video on mobile illustrates this fact. The massive user base and the demand for content suggest that there is revenue to be tapped by mobile companies.

Harish Bijoor, CEO, Harish Bijoor Consults, told DNA Money: “At the end of the day one-to-one marketing is where we are headed to — from mass marketing to demassified marketing, so to speak.” He added: “The number of people who might subscribe to permission marketing might be not as many as we think, because it has been noticed in developed countries that consumers largely think twice before allowing permission marketing.”

India currently has regulations restricting access to consumers through marketing calls. Subscribers have the option of signing up to the “do not” call registry, which means that they would be protected from marketing calls.

Media and advertising experts point out that once permission marketing on mobiles arrives in India in its full glory, authorities would have to frame suitable regulations to address various issues including those of privacy.  

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