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by Rob Gerlsbeck
Marketing Magazine
Nov 7, 2005
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If visitors from another planet were to
monitor Earth's cellphone transmissions to learn more about human intelligence,
what might they think of our taste in ringtones? Consider, for instance,
one currently popular download called the Mexican Nut Dance-a variation
on the uptempo Mexican Hat Dance in which the oomph! of a man getting
kicked in the groin is repeated every few bars to hilarious effect.
While many people balk at paying anything to download a complete song
to their MP3 player, thousands have had no problem plunking down two
to three dollars for the privilege of having the Mexican Nut Dance start
up every time their phone rings.
The popularity of ringtones is just one indicator of how mobile technology
is rapidly being transformed by two key trends: the personalization
of cellphones through things like ringtones and wallpapers, and the
evolution of the phone from a device used primarily to talk with others
into an entertainment/non-voice communications centre. "The cellphone
has moved from the side of your head to the front of your face,"
says Kaan Yigit, president of Toronto-based Solutions Research Group.
Andy Nulman, president of Montreal's Airborne Entertainment, which develops
mobile applications for marketers (including the aforementioned Mexican
Nut Dance), classifies non-talk cellphone usage into four areas: communication
(text messaging); information (receiving news, weather and real-time
sports scores); entertainment (downloading full songs, games and video);
and personalization (downloading ringtones, wallpaper and ringbacks).
"If you look at the split between talk and non-talk cellphone usage,
it's probably 75% to 80% in favour of talk, but that 20% to 25% is rising
rapidly," Nulman says.
A survey done this year by M:Metrics, a Seattle, Wash.-based mobile
research firm found that 58% of mobile subscribers in the U.S. have
used their phones for something other than making a call. While older
people are exploring non-talk services (14% of those over 65 have sent
a text message), it is primarily the young causing this shift: 46.2%
of Americans who downloaded a mobile game this past August were age
13 to 24, as were 40.2% who text messaged, 46.9% who downloaded a ringtone
and 33.8% who browsed news and information on their cellphone.
While comparable figures are not available in Canada, statistics show
that it's also teens and young adults driving interest in mobile technology.
Thirty-two per cent of kids 12 to 14 now own a cellphone, versus only
6% four years ago, according to Solutions Research. In the same period
cellphone ownership has nearly doubled among 15- to 19-year-olds (to
58% from 30%) and 20- to 29-year-olds (to 63% from 36%). Meanwhile,
the BBM RTS Canada Fall 2004/Spring 2005 survey found that among cellphone
users who have downloaded ringtones and games, 50% are under 24 with
slightly over half (55%) being male. And while 13% of the Canadian population
now has Internet access via their cellphone, that number rises to 33%
among 18- to 24-year-olds.
Young people often have a tough time letting go of their phones as well.
According to Solutions, 60% of teens say they feel "cut off"
if they don't have their phone with them-a phenomenon the company refers
to as "disconnect anxiety," Yigit says.
Experts suggest that the importance cellphones play in the lives of
teens and young adults should not be underestimated by marketers. Customizing
their phone with ringtones and wallpaper has "become an expression
of personality," says Mark Donovan, vice-president and senior analyst
at M:Metrics. The type of ringtone you buy "has less to do with
music and more to do with projecting 'Hey, this is who I am,' when you're
out in public."
One company that has capitalized on this trend is MyTego. The Winnipeg-based
firm lets people design their own cellphone or MP3 player skin (above)
at its mall kiosks and website. Customers pay anywhere from $12 to $28
for the skins, says MyTego's president, Doyle Buehler. "Just like
cars, people want to customize their phones. They want to be identified
with their own style."
There are other marketing opportunities emerging, adds Nulman, noting
that in mobile "the line between content and commerce is fine."
For example, the ringtones and wallpaper his company developed for the
hit Fox TV show Family Guy are as much a marketing message-that people
pay for-as a licensed product. Popular ads such as Molson Canadian's
"The Rant" or the "I'm koo-koo for Cocoa Puffs"
tag line could easily become popular ringtones, he suggests.
"There are some fundamental shifts going on here," says Richard
Seifeddine, VP of marketing at Telus Mobility, noting that marketers
are just now starting to look at how they can get their message out
through phones. However, he adds, phone companies like Telus have already
shifted their message and are promoting cellphones as "information
appliances." For example, one current Telus billboard has the tag
line "I heard it likes being watched" to describe a phone.
"The cellphone," Seifeddine says "is rapidly becoming
the device you don't want to leave home without."
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