AT&T introduced its first network to approximately two thousand customers in 1977 – this was the beginning of mobile phones (Oneupweb, 2005 cited here). According to Reportlinker.com it is estimated that there will be over five billion users subscribed globally by the end of this year, highlighting mobile technology as “an outstanding phenomenon that has forever changed society” (See article here). It is predicted that by 2015, the mobile will replace the PC as the most used method of access to the internet (Findel – Hawkins, www.mobithinking.com).The ‘Digital Divide’ refers to the huge variation in present adoption levels of technology across countries. The digital divide for mobile technology is defined slightly different to other technological advances...the digital divide in mobile technologies is how advanced one’s technology is rather than does or does not have the technology (Wikipedia.com). Mobiles have an uneven penetration rate across countries and regions; generally the wealthy and powerful countries predominate with low income countries having 4 per cent penetration and high income countries having nearly 77% (Goggin 2006 cited at See journal here).
Statistics on Mobile Subscribers per 100 habitants (ITU Digital Access Index, (See reference here)
Country | Mobile |
Sweden | 88.9 |
USA | 47.3 |
Canada | 37.7 |
Australia | 64.0 |
Italy | 92.5 |
Chile | 42.8 |
Brazil | 20.1 |
China | 16.1 |
Egypt | 6.7 |
India | 1.2 |
Vietnam | 2.3 |
Kenya | 4.2 |
Bangladesh | 0.8 |
Nigeria | 1.3 |
Mali | 0.5 |
Niger | 0.1 |
Below, show the overall divide between the Developed and Developing World’s subscriptions to mobile phones.
The first generation of mobile phones (1G) was cellular networks, the first being launched in Japan by NTT in 1979. It used multiple cell sites and had the ability to transfer calls from one site to the next as the customer travelled around. The first UK mobile call was made by Vodafone on 1 January 1985. Second generation (2G) brought digital networks in the 1990’s where digital was used rather than analogue and the industry saw a massive explosion on subscriptions. This introduced the new variant of communication, SMS, where people could send text only content. The first full internet service was made possible and introduced in Japan in 1999 and the first downloadable content sold in the form of ringtones. 3G was introduced after mobile phones had become so integrated into people’s everyday lives bringing protocols that made data connection faster. These new high speeds meant it was now possible for media streaming to happen of radio and television to mobile phones. It became clear very quickly that 3G networks would become overwhelmed by the growth of bandwidth intensive applications such as streaming media so in 2009 the industry introduced 4G technology that meant speed improved over ten times from 3G. 4G uses an all-IP network rather than the 3G circuit switching.
According to multiple analysts, Mobile Marketing and Advertising will explode from just a couple hundred million dollars in revenues in 2008 to $3 – 5 Billion by 2012 (See article here). Mobile Marketing has many advantages for businesses; the advertising can be targeted extremely effectively and made personal to the mobile user, it is done using the most up to date information and technology, it is easily trackable and an excellent way of reaching consumers as people have their mobile phone with them all the time, anywhere and everywhere they go within their daily lives. However, the concept is still in its infancy. Text messaging marketing has been used for a few years and is a used widely when it comes to mobile marketing. According to a study by Comshore 25% of users participate in at least one (and up to ten) SMS marketing programmes marketing(See article here. This is extremely popular in the fast food joints, clothing stores and the nightclub scene. Texting is also proven to get seven times the response rate of email. Local media is also starting to be offered via text message and producing mobile versions of their content to increase advertising revenue. Retailers are working to enhance the shopping experience with the use of mobile communications. Fast food places such as Burger King, Pizza Hut and Taco Bell have introduced mobile sites , texting programmes and apps that allow consumers to order food to pick up. Localised smartphone apps such as FourSquare and Yowza are being experimented with by companies and Starbucks are even testing a Starbucks Card Mobile scheme where customers can pay in the shop for their coffee using their mobile phone.
Twitter have announced this week that they are concentrating on their growth, especially on mobile. Twitter’s Chief Executive, Dick Costello, has said that the service needs “deeper integration” into smart phones and also to be made more available to basic phones (Wakefield 2010 - See article here). Costello commented that “40% of Tweets now come from mobile platforms” showing the huge potential that mobile communication has in this digital age. 
However, even though there are many opportunities to be exploited for marketers when it comes to mobile marketing, there are also challenges to overcome. Research by Forrester has found that “Consumers aren’t impressed with apps that provide little utility and only clutter up their phone decks” (Parrish 2011 - See article here). App downloads are also hard to measure as downloads are not a representation of who is using the apps as many are deleted within a short time. Another problem marketers are facing is measuring the ROI of the advertising as there is a lack of advertising standards. Privacy is also a huge issue with consumers when it comes to mobile marketing.
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