Tag Archives: ad-supported

Digital Hollywood: Mobile Commerce & Content

Santa Monica, CA—Last night I attended an opening event at Digital Hollywood, namely the party celebrating nominees for the upcoming Mobile Excellence Awards. At the Loew’s Hotel on the beach, guests were treated to a spectacular sunset, a view of the neon-lit Ferris Wheel on the Santa Monica pier and, of course, drinks and hors d’oeuvres. Enthusiasm is high for the actual Mobile Excellence Awards, coming up on December 8th.

Today, I attended a panel on Mobile Commerce & Content, moderated by Steve Bradbury, GoTV vp of content strategy and business affairs and featuring panelists Cheng Wu, Azuki co-founder/chair; Brian K. Johnson, senior vp, Americas and Asia Pacific for mBlox; Larry Berkin, vp of ecosystem and corporate business development for ACCESS Systems Americas; Virgin Mobile USA director of brand development & partnerships Ron Faris and AirPlay Network chair/CEO Morgan Guenther.

GoTVs Steve Bradbury

GoTVs Steve Bradbury

At Loew's Hotel

At Loew's Hotel

Sorry to say I missed the first part of the panel but came in at a perfect moment: when the discussion turned to advertising. Moderator Bradbury asked panelists what advertising model will work in the next 6 to 18 months. “Now it’s the original model of TV: we’ll give you content to get you from one set of ads to the next,” he said.

Guenther agreed with the “TV model” assessment and pointed out that his company’s model was focused on the live event. “When there’s a pause in the action, you look at the mobile phone and match it up with what’s happening in movie theatre or TV screen,” he said. “It’s all abut pacing and what the customer is anticipating.”

Virgin Mobile USA’s Faris admitted that his company doesn’t have the scale, but instead has a niche focused on youth. “Reach and frequency are tenets of advertising, but to bring relevance we’ve had to bring depth of experience,” he said. “We’ve looked at different ways of advertising. When we launched Sugar Mama, a model where you watch content in exchange for free minutes, we didn’t thave the scale to be able to compete. We were up against Google, AOL and so on. We tried to bring in WAP banners and text blasts to bring up the numbers. They were great for reach, but for depth of engagement, which is what we’re using, we were reincarnating things that annoyed us on the web. The WAP banner is nothing more than a banner ad. Text blasts are nothing more than spam. Geo-targeting is great but why do I care? If I get a text blast for Nyquil and don’t have a cold, why should I care? From our perspective, you have to understand what’s relevant and create a deep engagement. I don’t want to keep going in this direction – we have to move into a sponsorship model.”

Berkin pointed out that everyone is in the early stages of mobile advertising. “I come from the download pay- for-application model. It’s a scale business.” He also revealed that ACCESS Systems Americas has created a widget platform that’s ad supported that will roll out on smart phones across the world.

Johnson noted that the text message ad-supported model has taken off. “We’re watching that carefully,” he said. “We see a big increase in free-mium, where you get something for free but maybe you’ll pay something more if you like it. Micro-payments are our biggest growing segment, for example to pay 99 cents to send someone virtual flowers. A mixture of micro payment and ads will pay for content.”

Azuki’s Cheng said that “the mobile ad ecosystem is completely fragmented and totally isolated from advertising.” “Mobile is different from desktop,” he said. “You can’t put 30-second ad for 30-seconds of content. Advertisers have an inventory of 30-second spots, so their resources aren’t fitting the mobile ecosystem.”

One panelist noted that “before we see a truly ad-funded content model, I’d like to see a flourishing one online. “We’re closer to having that scale in the online context, for music in particular,” he said. “There have been attempts for fully ad-funded models but the numbers don’t work. Content costs are steep, and we’re a ways off until we see truly ad-funded mobile content.”

The last word came from Bradbury who spoke about metrics. “Metrics in the online world stink. The numbers are inconcistent. Metrics have to be much more standardized and effective. The same thing in the mobile space, so you can go to a media buyer used to seeing things in a certain way and give them numbers they understand in order to justify putting money into a mobile buy. Then you’ve got a viable campaign. But, for now, metrics are still a big issue.”

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Filed under Advertising/Marketing, Content, Monetizing Mobile

How to Make Money from Mobile Content

From the Mobile Content & Marketing Expo

San Jose, CA—How can you miss with a panel on making money? This session, with Joe Laszlo, director of advertising at the Interactive Advertising Bureau (IAB), moderating a panel made up of mobile video executives, was packed. Each executive spoke about his or her company’s business model. Susan Cashen, vp of marketing at mywaves described the company as a handset agnostic mobile video service that delivers video around the world. “Because we’re free, we’re dependent on advertising,” she said. “We’ve also recently launched commerce with entertainment. When a consumer is immersed in an entertainment experience like watching a free Beyonce video, it’s a natural for them to be able to buy Beyonce content, both virtual and real goods.”

Transpera CEO Frank Barbieri described his company as “building the largest premium ad-supported mobile video network.” Networks in Motion is an applications and platform provider for the mobile phone, focused on search and navigation, with a subscription-based model. “Navigation and search is alive and well on the paid platform,” said CEO Doug Antone. Bytemobile CMO Adrian Hall said his company provides services to the carrier as an enabler to the end-user. “We basically enable the mobile Internet for the end-user,” he said. “And we see user-profile information which is useful for contextual and behavioral targeted advertising.”

On the advertising front, asked Laszlo, are advertisers are willing to pay a premium for mobile? Bytemobile’s Hall said the one thing that appears obvious is that the more targeted the ad, the more valuable. Barbieri said that mobile has far more focus of attention than the PC, where the screen could be displaying several windows and other distractions simultaneously. “For brand advertisers, that increased attention leads to better numbers,” he said. “I think the news is fairly good in these early days.” Cashen said about 6.5 million unique come to mywaves every month; they come twice a week and spend 20 minutes, watching 2 or 3 minute segments. “A 30-second pre-roll just won’t cut it,” she said. “In the short term, there are big opportunities to connect with consumers via direct marketing. There’s genius to leverage the video entertainment on the handset from the point of view of a brand. Taking what works on the web on mobile is taking baby steps,. You have this incredible storefront on the handset. Click-to-call, click-to-buy: there’s no better measurement. Leveraging the entertainment to create action is where we feel good.”

Cashen said that transcoding video for the consumer gives her company information on the consumers. “We have the ability to target by DMA, time of day, and type of handset,” she reported.

Everyone is trying to drive personalization and the consistency of brand across multiple devices, noted Hall and more personalized advertising based on user needs will create a dramatically stronger click-through rate. The mobile marketing campaign has to have ways to interact with the user, said Barbieri. “We work with our brand advertisers to brainstorm the mobile marketing campaign and how to target the audience.”

Antone observed that his company’s business model is different in that the user pays $10/month to navigate. “It’s no longer how you get from Point A to Point B,” he said. “We want someone to turn it on in the morning for real-time traffic information. Not just where’s the local movie theater but what’s playing and when. It’s all available on your client-server application on your handset. See us as a publisher that’s getting your content out to people. Our customers are the carriers, who sell to their customers. That’s our strategy. All of them have this $10 price point. At some point it’ll be $5 and beyond that it will be zero, a free application. The relevance of this is that when someone is mobile, they’re also motivated. When you’re in a browsing application and looking for a restaurant, you’re motivated to go. Targeted, pertinent advertising that can happen during that search is what we’re focused on.”

But to get the numbers, the only way the carriers can make that work is to draw in big percentages of their users. To get 50 to 60 percent, they’ll have to change the pricing model. “We’re betting on the idea that they’re going to try to do that and not roll over,” said Antone

Focusing on how the Networks in Motion product will one day be free, Antone talked about the challenge. “It depends how good we all are at creating the economics on the back end,” he said. “That listing of Italian restaurants in your neighborhood, for example. Would you find it offensive to get a manipulated search, where the restaurant that’s farther away pays to be listed first? When do consumers say, Forget it – you’re giving me something I don’t want. We have to do this in a way that there’s enough economics but the consumer still likes it.”

Finally, panelists spoke about the role of the carrier, between the extremes of a dumb pipe and a walled garden. “There is a smart pipe concept where there’s a tremendous amount of marketing and merchandising power that any one would be a fool to ignore, because they have a connection to the user with billing inserts, with product marketing on the deck,” said Barbieri. “There’s a relationship that can be used to promote content well. We have to move from a programming-type mentality of carriers to more of a merchandising, marketing and retail type of relationship. And that’s good for us and for the consumer as well. We have yet to get to the point where there are tremendous marketing and retailing competencies at some of the carriers, but that’ll change.

The carriers could move faster,” added Hall. “They are desperately trying to be smart pipes and it’s incumbent on us to work with them to become smarter. While they’re starting to recognize they’re sitting in a unique place and make smarter use of the user profiles they see. By doing that effectively, they’ll continue to be smart pipes or, in some cases become smarter pipes.”

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Filed under Advertising/Marketing, Content, Monetizing Mobile