Nanu way to go!

31 May,2016

 

By Anuka Roy

 

We all will relate to that annoying situation of trying to read an interesting article on a mobile but getting interrupted by an ad which keeps blinking and diverts your attention. A recent study was conducted by ‘Nanu,’ among a targeted group of Gen X, Gen Y and millennials from India using smartphones and who have a diverse work profile on mobile advertising. Nanu is a mobile call app developed for the emerging markets. It utilises proprietary ultra-low bandwidth VoIP (Voice over Internet Protocol) technology and an ad-sponsored free call business model to provide high quality free calls to everyone, everywhere, even on 2G.  A Singapore-based startup founded by a father-son team of Martin and Daniel Nygate.

 

The study reveals that 60 per cent respondents are annoyed with mobile advertising and thought the ads to be most annoying and obtrusive. But banners still hold some preference for mobile users due to its unforced nature since approximately 52 per cent of respondents have rated banners as least annoying while more than 55 per cent respondents find pop-ups and video ads the most annoying form of mobile advertising.

 

The focus of advertising is mainly on two factors – increase in sales and brand-building. In its present form, mobile advertising fails to do either of them as indicated by the survey. The survey reveals that 46 per cent respondents may click intentionally on banner ads, but 80 per cent still avoid clicking on pop-ups and video ads. Moreover, about 75 per cent of them indicate their doubts on making any purchase decision based on mobile advertising.

 

According to Founder and CEO Martin Nygate, there is need understand the evolution of advertising on mobilephones and smartphones. When smartphones came out, technologists took the technology from desktop and laptops, which was a banner, and put it on a mobile phone. “But the reach on the mobile phone is so small, the banner as a call to action is so small that no one can see what they are saying. Now, technologists say that the banners do not work so let us do the pop-ups. And, I do not need to tell you how annoying and intrusive that is. Then they said people do not like pop-ups so let us do video ads. They are even worse because they consume data. In the last few months, the data consumption in everyone’s phone has soared and that is because of the proliferation of these video adverts. Basically, they are stealing your data. It’s worse now as even if you do not click on it, it is downloaded in the background.”

 

So, what is the solution that Nanu provides for mobile advertisers? “First and foremost, our form of advertising is the voice over, over the ringtone and is completely non-intrusive. When you are calling me, instead of the ring you hear the voiceover, but the moment I pick up the advert stops. Let us not forget everytime you make a phone call, it is about 10 seconds where you are listening ‘ring ring’, that is the 10 seconds we use. So, that is completely non-intrusive. Second thing is, when you download Nanu we ask your age, sex, profession and education. We can do targeted one-to-one marketing in a very effective way. Thirdly, advertisers are very excited because when you are listening to the adverts it is not like radio playing in the background and you are actually listening, that means the recall rates are very high. Finally, probably, the most important thing, this is one of the few forms of advertising where the consumer gets a direct benefit for consuming the advert. You are getting a phone call for free and you are positively disposition to the advertiser because ‘this call is brought to you by McDonalds. Well thank you McDonalds for giving me a call for free’. So, it is a win-win for everyone.”

 

Not only mobile advertising, the company is also coming up with another powerful statement in the OTT (Over The Top delivery system)-telco relationship. Nanu claims that they are ready to pay the telecom operators  for using the telecom infrastructure, hence bringing a paradigm shift in the present conversation around OTT and Telecoms. Commenting on the same, Nygate said, “TRAI said telcos cannot block VoIP. What this means that telcos have a threat because if more and more OTTs steal their voice calling revenues they are going to have serious problems. What we are saying is that we are the only OTT company in the world that is willing to pay the telcos for transmitting a Nanu to Nanu call over their network. We don’t have to but we want to because we want to maintain their profitability. It is important for us to partner with telcos because without them we would not work. So, we have to make sure they still make money and because we get money from advertisers so we can pay them.”

 

Today, mobile advertising is the core of any brand’s digital marketing media strategy and marketers are aggressively looking at options to ensure the right visibility for the brand, thereby enhancing brand recall for the products and services. The outcome of the survey indicates the status quo of the mobile advertising segment, leading to annoyed and irritated consumers coming at the cost of brands’ advertising budget for mobile.

 

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