Pandora: Unleashing Mobile Phone Ads

-Tom Lowry, BusinessWeek

Smartphones are continuing to dominate the market as the hottest new trend amongst not only businessmen, but also teens, parents and just about anyone who can get their hands on one.  With the ongoing success of these devices, there is one particular company that seems to be ‘smart’ and taking advantage of the mobile madness.  Pandora, “a nine-year-old, free online service that allows users to design radio stations based on their musical preferences”, has launched a mobile edition, allowing over six million users to access music through their phone.  This mobile edition also allows companies to advertise, and they are certainly taking advantage of this opportunity.

            In my opinion, mobile advertising is the next big thing, which is why many popular businesses are attracted to the idea of it.  The fact that big name brands such as Best Buy, Target, Dockers, and Nike are buying ads on Pandora proves the reliability of this new marketing strategy. Many other companies also capitalize on this opportunity.  Domino’s Pizza puts up ads suggesting that people should call in for pizza at that very moment.  In addition, many college students, such as myself, are exposed to the ads while using their phones for music at the gym, on campus, or on the way to work.  Although these ads may seem extremely annoying to music lovers, because they interrupt their constant flow of music, studies show that this new direct marketing tool is working.  According to Target, “27% more people clicked on its ad for the release of Christina Aguilera’s greatest hits CD last fall than on any other mobile Web campaign.”

            Although this new marketing tool may seem useful for companies trying to gain an advantage over their rivals, there are some downfalls to this idea.  To start, “only 1% to 2% of people click on ads overall.”  Since mobile ads are a new kind of marketing, many businesses do not know how to successfully market their products in this way.  Often times they try to build flashy websites that sometimes make mobile phones crash because they are too complicated.

            Many parents may not be too fond of mobile phone ads, because they give various companies direct access to their children through a cellular device.  These companies realize that people who use Pandora spend a lot of time on it, thus giving them more time to advertise their products.  Since “the mobile phone has become the favored communication hub for the majority of American teens,” teenagers are especially prone to the new ads.  Although the ads seem to be appropriate now, there is no telling what types of industries will soon enter the market.  As a person who has spent a lot of time babysitting young children, I know that I would not want to see them exposed to Bud Light ads or anything of the sort.

            Pandora’s mobile phone ads may seem to be a great new marketing strategy for companies trying to get ahead in the business world; however, with new technology come many risks that we must consider.

 

http://www.businessweek.com/magazine/content/09_22/b4133052597112.htm 

http://pewresearch.org/pubs/1572/teens-cell-phones-text-messages