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Johannesburg - Advertisers are over-estimating the size of the cellphone internet market as most users download games rather than browse the web.
"There's a complete misunderstanding in the market of what the mobile internet represents," said Arthur Goldstuck, head of World Wide Worx.
"When network and service providers talk about the 9.5 million or 10 million people who use internet on cellphones, these users are not using it consciously or actively."
This week, MWeb launched MWeb Mobile, a new division that will focus on cellphone internet products and services. The company cited research by international cellphone browser company Opera Software, which claims that 9 million people are using the internet via their cellphones at present.
However, according to Goldstuck only about 500 000 people use their cellphones as primary sources for internet access, while only between 2 million and 4 million use their cellphones to browse the internet and check their emails.
Goldstuck said clicking on a link in an SMS to buy a game or a ringtone is very different to accessing the internet "actively and consciously".
"This is where a lot of marketers are going to burn their fingers," he said.
A research study by World Wide Worx is expected to show that cellphone users aren't ready to use the internet en masse for at least the next three to five years, warned Goldstuck.
The real opportunity lies with applications.
Apple iPhone users are able to download applications, or apps. Apps include anything from games to newspaper subscriptions.
According to Goldstuck, apps stores offer massive opportunities for the local market. "All major manufacturers now have apps stores, Apple has the major mindshare, but in future it may not remain the biggest [provider]."
"If you look at the major phones in this market, the iPhone certainly doesn't rank there. Of growing brands among younger audiences you find Samsung is leaping ahead, challenging Nokia in a big way - these brands have apps stores as well," said Goldstuck.
Local developers should rather look at what they can do with apps stores, advises Goldstuck.
- Fin24.com