App-based mobile marketing takes off in Singapore

A look around on the bus or the train in the morning reveals just how attached to our mobile phones Singaporeans are. It also looks as though everyone has a smartphone. That’s not surprising – Singapore has long been known as a country full of early adopters, and the appetite for mobile phones here, while limited in number (because of our small size) has not abated – Singaporeans are still looking for the latest, greatest mobile phone. These days, that tends to be a smartphone, something with an advanced operating system (OS), equipped with a decent camera, a powerful processor and substantial amounts of memory so that it can handle a multitude of tasks, from simple scheduling to media playback.

Back in 2010, before Apple cut off AdMob’s access to its data, AdMob estimated that iOS penetration in Singapore was the highest in Asia, a whopping 9 percent. Even assuming that percentage has not risen, which is unlikely, that means that there are around half a million iPhones and iPads in use in Singapore. This is not an entirely unbelievable figure, and if you throw Android, Windows 7, Symbian and other mobile OSes into the mix, it is obvious why it looks like everyone has a smart phone – because smart phone penetration in Singapore is very high.

There’s probably no way to know for sure why that is – a combination of the pace of life in Singapore and an affluent and brand-conscious population, probably. Whatever the reason, the high number of smartphones in Singaporeans’ hands has created a real hunger for applications (apps). These small computer programs can be purchased for small amounts (or even for free) from the Apple App Store, the Android Market, or one of a range of other app stores, according to the operating system in use.

Look at the App Store and the Android Market and the range of locally produced apps is obvious. From taxi reservation apps, to bus timing apps, to apps that let you find the best hawker stalls, there is definitely a developing local app economy. What’s more interesting is the rate at which these apps are being consumed – while we don’t have access to local numbers at the moment, the fact is that the lists of top apps in appstores move at an astonishing rate.

What people seem to like the most are free apps – flashlights, compasses, calculators, usually simple, single-use apps that cost nothing to the user. Games are the other category of free apps that appeal widely to the Singaporean user. Interestingly enough, all of these free apps aren’t really free, and in many cases, apps are supported by in-app advertising, usually in the form of small pop-up banners that display unobtrusively at the top or bottom of the app. (Some games get their revenue by offering in-app purchases, where users can pay money to get items that can be used to some advantage within the game.)

This is probably the most prevalent form of mobile marketing in Singapore at the moment – and it’s one in which the user is complicit with the marketer, as they choose to install the apps (and gain added functionality) in exchange for exposure to a constant stream of marketing material. While it’s early days yet, the level of acceptance for this kind of mobile marketing is a good sign – it reflects the willingness of consumers to tolerate a limited amount of advertising, when they receive something that they value in return.

Rohit Dadwal, Managing Director, Mobile Marketing Association Asia Pacific Limited