By Peter Evans
LONDON--Unilever PLC (UN, UL) is targeting users of low-end cell
phones with ads for its laundry-soap, ice cream and beauty
products--the latest attempt by a consumer goods company to stave
off slowing growth in emerging markets.
The Anglo-Dutch company, the world's second biggest advertiser
after Procter & Gamble Co., said Tuesday it has signed a deal
with mobile marketing firm Brandtone to ramp up mobile ads
targeting consumers in India, China and Indonesia. The agreement
will also extend to consumers in the U.S.
Financial details of the deal weren't disclosed.
More than half of Unilever's sales of brands including Axe
deodorant and Ben & Jerry's ice cream now come from emerging
markets, but it faces a battle to sustain its rate of growth. At
its half-year results in July, the company warned of slowing
economic growth in emerging markets.
Unilever said Brandtone's technology allows it to contact
potential or existing customers who have agreed to receive
marketing information. In many emerging markets, where most people
own low-spec feature phones, the communication is most frequently
via a text message. A previous campaign using the technology in
South Africa resulted in a 20% sales uplift, Unilever said.
Interested customers respond to the messages with information
about their brand preferences and are rewarded with incentives
including free mobile airtime or recorded calls from
celebrities.
"This doesn't mean you have to have a smartphone. It's something
that can be done through a text. It's a truly mass market
opportunity," said Keith Weed, Unilever's chief marketing officer
in an interview.
India and China alone boast more than two billion mobile users,
according to government data from both countries. Mr. Weed said
mobile advertising was an opportunity to reach customers in
emerging markets who often wouldn't have access to television.
Consumer goods firms-traditionally among the biggest spenders on
advertising-have started switching on to mobile marketing at the
expense of television and, more severely, print advertising.
P&G said last month it now spends more than a third of its U.S.
advertising budget on digital media, a dramatic shift from a decade
ago.
Write to Peter Evans at Peter.Evans@wsj.com
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