Professional Documents
Culture Documents
©notice
This material is copyright 2008 by visiongain. It is against the law to reproduce any of this material without the prior written agreement of
visiongain. You cannot photocopy, fax, download to database or duplicate in any other way any of the material contained in this report. Each
purchase and single copy is for personal use only.
Contents
Chapter 1
Introduction
1.1 Executive summary
1.2 Mobile advertising
1.3 Mobile content funded by mobile advertising
1.4 The focus of this report
Chapter 2
What mobile content?
Chart 1 Bango mobile content sales 2006-2007
2.1 Which mobile content is most appropriate
2.2 Mobile TV and video
2.2.1 Issues with mobile TV
2.2.1.1 Forms of advertising enabled by Mobile TV
Chart 2 Mobile TV handset penetration comparison
2.2.2 Subscriber take up
Chart 3 Mobile TV trends
Image 1 Sony Ericsson Bravia
Image 1.2 Sony Ericsson Bravia
Image 2 Nokia DVB-H Handset
2.2.3 Prospective impact
2.2.4 Live video streaming
2.2.5 Mobile ad funded TV and video
2.3 Mobile MMS
2.3.1 Converged handsets
2.3.2 Subscriber reach
2.4 Mobile social networking
Table 1 Examples of social networks on the mobile
2.4.1 Global phenomenon
2.4.2 Potential improvements and impact
2.4.3 Exclusively mobile social networks
2.4.4 LBA
2.4.5 Messaging
2.5 Ringtones
2.5.1 Target market base
2.6 Music
2
Contents
3
Contents
3.4.4 Visual
3.4.5 Market leaders
3.4.6 What will be best suited to being ad funded?
3.5 Mobile subscribers
3.5.1 Mobile ad funded content benefits to mobile
subscribers
Table 2 Benefits and detriments of ad funded mobile content to
mobile subscribers
3.5.2 Targeted advertisements
3.5.3 Free content
3.6 Mobile advertising
3.6.1 Targted audience
3.6.2 Size of market base
3.6.3 Target market
Table 3 Mobile ad funded content market trends
3.7 Conclusion
Chapter 4
Global market reach of mobile ad funded
content
4.1 Developed markets
4.1.1 Target market segments
4.2 Advertisers using the platform
4.3 Emerging markets
4.3.1 Reduction in end user costs
Chart 7 Cost reducing mobile data usage
4.4 Click through rate
4.5 Age demographic
Chart 8 Age trends in mobile content
4.6 Best content
4.7 Mobile content standards
4.7.1 3GSM
4.7.2 3G HSPA
Table 4 HSPA-Enabled devices September 2007
4
Contents
5
Contents
Chapter 6
Branding and advertising in ad funded mobile
content
6.1 Branding examples
6.1.1 Blyk: Penguin books
Table 7 Blyk’s Penguin campain stats
6.1.2 Greystripe: New Line Cinema
6.2 Market demographic
6.3 Display of mobile advertisements
6.4 Who will buy ad funded mobile content
6.4.1 What will mobile subscribers want from ad
funded mobile content?
6.5 Conclusion
Chapter 7
Market potential
7.1 Mobile advertising spend
Chart 12 Mobile ad spend forecast
7.2 The market landscape in 2013
7.3 Market demographics in 2013
7.4 Advertisers
7.5 Content in 2013
Table 8 Ad funded mobile content SWOTs
Chapter 8
Conclusions and recommendations
8.1 Mobile content providers
8.2 Mobile advertisers
8.3 Mobile operators
8.4 Mobile handset manufacturers
6
Ad funded mobile content
Companies mentioned in this report
3 Fon 11
20th Century Fox Frengo
4INFO Gofresh
Adidas Goldspot Media
Advanced-television.com Google
Airtel Greystripe
Aka aki Groovr
Alcatel Lucent GSM World
Amobee media systems Honda
AOL innerActive Smart Media
Apple itsmy.com
Bango Jaiku
Bebo Jamster
Bluepulse JJB Sports
Blyk Jygy
Boots Loopt
Britekite L’Oreal
Buongiorno M3 Mobile
Calvin Klein M:Metrics
Cellcom Meet now live
CNN Microsoft
Coca cola Mig 33
COI Connexions MobiAd
ComScore Mobifun
Dada Mobile Entertainment Forum
Dada Ad Mobi TV
Daimler Chrysler Mobile Europe
Disney Mobile marketing magazine
Dodgeball Mobixell networks
Domino’s Pizza Moconews.net
Dynamic Logic Mocospace
ebay MOSH Mobile
EMI Motorola
Emarketer Myspace
Ericsson Myxer
Europa Natwest
Facebook NEC
Flickr Netsize
7
Ad funded mobile content
New Line Cinema Ümobile
Nielsen Utterz
NME Visa
Nokia Vodafone
NTT DoCoMo Wadju
Opera What’s on TV
Orange Whrrl
Paramount Xero Mobile
Peekamo Xunii
Penguin Books Yahoo!
Pick me up Zyb
Pitch
Play Phone
Qik
Rhythm NewMedia
ROK Entertainment
Saab
Samsung
Shozu
Skype
SMART Telecommunications
Sniff
Societe Generale
Sony
Sony BMG Music
Entertainment
Sony Pictures
Splash mobile entertainment
Sprint
Strands
Suzuki
Telephia
Tellabs
The European Commission
The Guardian
T-Mobile
Treemo
Twango
Twitter
8
Ad funded mobile content
Chapter 1. Introduction
As the content available to subscribers on the mobile grows in
quality and quantity, mobile advertising is also increasing in its
methods, sophistication and reach to global mobile subscribers. A
method that has allowed mobile content providers, mobile
operators and mobile advertisers to combine their energies is
advertising funded mobile content.
9
Ad funded mobile content
driven to use content on the mobile web if their initial user
experiences are positive, and developments in the handset
industry are a step towards higher QoS.
10
Ad funded mobile content
1.2. Mobile advertising
Mobile advertising provides the opportunity to effectively target a
source of an enormous amount of potential consumers while still
remaining personable and tailored. However, the response and
uptake of mobile advertising has been varied in differing markets.
Overall, advertisers are wary of a media that is as of yet, not fully
tested and unsure in the market. The mobile web remains elusive
to some users and previous poor user experience would put some
subscribers off altogether, limiting the potential audience for
advertisers. Other forms of mobile advertising, such as SMS may
be perceived to be too much like spam found with e mail, and
advertisers would be naturally wary of alienating their audience.
However, mobile advertising is finding its way into the mobile
market and advertisers recognise the sheer size of the mobile
audience as having great potential.
11
Ad funded mobile content
minimal costs will be passed on to them. Subscribers must also
be reassured that advertising that they receive will be relevant,
and will not become like the spam marketing that has become so
prevalent on the PC. Advertising funded mobile content presents
potential advantages for all those involved. Mobile operators and
mobile advertisers can share the revenues that are generated
from this content as the amount of subscribers accessing and
responding to such content and advertisements increase.
12
Ad funded mobile content
Chapter 2 What mobile content?
The amount and variation of content available on the mobile
continues to grow. The amount of mobile content being
downloaded by mobile subscribers is also on the increase, with
Bango reporting mobile content sales at 30% from its content
providers in 2007, compared to just 5% in 2006.
13
Ad funded mobile content
audience. In order to ensure maximum user experience and a
higher likelihood of subscribers responding to the advertisement,
advertisers should ensure a relevancy to the content and the
mobile subscriber. However, an advertisement that remains solely
tied to its specialist area of content or audience, runs the risk of
limiting exposure to potential new audiences and consumers, and
this should be kept in mind. Deciding which kind of content to
sponsor is also an important deciding factor, and this chapter
evaluates some of the content on the market in its
appropriateness for mobile ad funded content.
14
Ad funded mobile content
take a stronger place in the mobile market. The mobile market
has seen an increase in the number of handsets with larger touch
screens that are more appropriate for viewing applications that
require a larger screen such as mobile TV, video and the mobile
web. The sophistication of mobile devices and technology means
that mobile subscribers are able to enjoy a variety of content
through this medium, from music videos through a mobile web
search to live TV.
15
Ad funded mobile content
2.2.1 Issues with Mobile TV
One such issue that has been noted is the need for a
standardisation of technologies to help enable mobile TV. This is a
particular problem in the UK market. The European Commission
is pushing for DVB-H (Digital Video Broadcasting-Handheld) to be
a mandatory standard through its member states, which would
allow greater interoperability for mobile TV between devices.
DVB-H is one of the more prevalent formats for mobile TV and is
implemented and enabled in handsets by a number of mobile
handset providers, such as Samsung and Nokia. The technology
is based on the DVB-T technology for broadcasting digital
terrestrial television, and takes into account the limitations of a
mobile device such as a lower power resource and roaming
environments.
16
Ad funded mobile content
is often “free” on a home television set, and has a better user
experience. Ad funded mobile TV will allow mobile subscribers to
utilise mobile TV for free or for a very low charge, and the
advertisements will be accepted by the subscriber as a part of
payment.
The affect has also been seen with the mobile web. The take up
for the mobile web has been slow, due to the user experience and
high data charges. However, improvements in the user
experience, such as faster rates of connection and downloading,
17
Ad funded mobile content
the lowering of data charges and the introduction of flat rate
charges, have improved the perception of the mobile web and will
improve the number of users on the mobile web, which is now
becoming more commonplace on the mobile. Comparisons can
be drawn from this to mobile TV, improvements in the user
experience and the quality of the content will drive up consumer
use of this content, and a standardisation in technologies and the
use of adverts to drive down costs will push this content further to
mobile subscribers.
18
Ad funded mobile content
19
Ad funded mobile content
H2 2007, 0.7% of the total UK mobile subscribers watched
Image 1. Sony Ericsson broadcast TV on a mobile handset at least once a month, and
Bravia
0.9% watched any commercial programmed TV or video at least
once a month. This is an extremely low proportion of the market
and advertisers would be rightly wary of sponsoring such a market
segment. However, there is room for improvement in the service
which would encourage mobile subscribers to use the service and
would dramatically reduce churn. In a survey commissioned by
Tellabs when questioned as to why they abandoned mobile TV,
subscribers stated that the service was too expensive (45%) and
that there were issues with reliability (24%).
20
Ad funded mobile content
Image 2. Nokia DVB-H 2.2.3. Prospective impact
handset
The impact of ad sponsored mobile TV will dramatically increase
the likelihood of the content gaining subscribers, as the cost to the
end user is one of the main barriers to the success of this
particular media in European and US markets. Ad funded mobile
TV will help to push mobile TV into previously slow markets for
the content. Ad funding may also help the content providers
reduce costs, and this may allow for more content at a higher
quality, which will reduce consumer churn as mobile subscribers
gain a higher quality of content with less of the costs passed onto
them.
Source: Nokia
Operators will be able to gain revenue from ad sponsored content,
which will help to counter falling ARPU. Visiongain believes that
the market in Europe will see a positive response to ad funded
mobile TV content, but that the Asia Pacific market will continue to
lead the way, and that consumers with greater penetration of
mobile TV capable handsets will provide the more tempting
audience for mobile advertisers, and will therefore have a greater
amount of access to ad sponsored mobile TV content. We believe
that mobile subscribers across most markets will be more
receptive to value added content when the pricing is driven down
by advertising sponsorship, and will be willing to accept adverts
on their devices for it. As content on mobile phones and the
mobile web becomes more sophisticated mobile TV will be used
by more subscribers, accepting that their mobile handset is much
more capable than just making phone calls, but has become a
multimedia device, which has been seen with the device
convergence of handsets coming to include cameras and music
players.
21
Ad funded mobile content
22
Ad funded mobile content
discussed problems with standardisation and perceived issues
with quality and price. However, that is not to say that the market
is not open in these areas. Consumers polled in various surveys
suggest that mobile TV and video has the potential to be popular
amongst mobile subscribers. There has also been a survey from
ComScore that shows that the most likely demographic for mobile
TV users (in America) is men aged between 25-34, giving mobile
advertisers a clear indication of the market demographic allowing
for tailored and relevant advertising which mobile subscribers
would be most receptive to.
23
Ad funded mobile content
relevant advertising which will be better received by the mobile
subscriber and more likely to be acted upon. (i.e. higher
conversion rate).
24
Ad funded mobile content
set to continue over 2008. The success of social networking sites
such as myspace and Facebook have propelled the application in
to the media spotlight as their market value continues to grow.
Social networking sites are becoming accessible on the mobile
web. The fixed internet players and mobile specific entrants are
coming in to the mobile market and are responding to the needs
of the mobile subscriber to access information on the move.
25
Ad funded mobile content
26
Ad funded mobile content
Mobile ad funded social networks will allow for a more
personalised one-to-one advertising service. The improved
relevancy of this advertising on social networking will boost
revenue in this area, encouraging mobile subscribers to engage
with the adverts and act upon them more than they would on a
fixed PC social networking site. Mobile social applications and
relevant ad sponsoring on the content will be able to push users
from the social networking content to the recommended activities
and web pages, increasing the brand awareness and consumer
reach on the advert sponsoring the content. Social
recommendation which is seen on social networking sites will also
help to drive advertising on the mobile, when the sponsors are
recommended by users having seen and acted on the advertising.
2.4.4. LBA
The use of Location Based Advertising in mobile ad funded social
networking will vary depending on the specific brand or service
sponsoring the social network. However, LBA has the potential to
massively increase the relevancy and consumer engagement with
advertisements increasing ROI. LBA allows mobile advertisers to
specifically target potential consumers by the basis of their
27
Ad funded mobile content
location, reducing the potential marketing spend as the advert
need only appear to the consumer when they are in the vicinity.
This is particularly beneficial for smaller local businesses that may
have a lower marketing budget than other enterprises. This also
raises the standard for mobile subscribers, as local search and
advertising is perceived to be the killer app on the mobile,
allowing mobile subscribers to "discover" relevant information and
advertising on their mobile handsets rather than be targeted with a
high amount of irrelevant information and advertising, like the
spam seen on the fixed PC.
2.4.5. Messaging
The portability of the mobile device allows mobile subscribers to
make more use of instant messaging services and messages
posted on personal pages on social networking sites. This will
also enable advertisers to target their prospective audiences more
effectively; depending on the information users feel comfortable in
giving the advertisers. Mobile subscribers have become used to
using instant messaging on the internet for free, and will want a
similar service on the mobile. Advertising sponsorship will enable
this and visiongain believes that mobile subscribers will be willing
to receive advertising for free mobile content.
2.5. Ringtones
The market for selling mobile ringtones continues to grow, with
ringtones advertised both on and off the mobile. Mobile ringtone
providers have received some bad press regarding their charges.
This is not exclusive to ringtone providers but it is one example
where the costs to the end user have received negative attention
and this is an area where advertisement funding would be
beneficial to the business. Where mobile subscribers pay a high
charge for mobile content like ringtones, advertising sponsorship
could dramatically reduce or even eliminate charges to the end
user.
28
Ad funded mobile content
content that the mobile user is searching for. This method of ad
sponsoring would be particularly useful for brands wishing to
advertise film through theme music, and chart song releases.
2.6. Music
The music industry has had to battle to fiercely protect copyright
of music, especially since the internet has allowed for greater
ease in file sharing for music. Downloading music for a price on
certain websites has helped to control copyright, but has not
eliminated the problem as illegal file sharing still exists. As the
mobile web becomes more closely related to the PC web
experience it is likely that these problems will move on to the
mobile web. Mobile ad funded music content has become present
on the mobile and operators and content providers have been
trialling ad funded solutions for music and music videos.
EMI and T-Mobile are one example of these trials. The operator
and record label joined and offered ad funded content launching a
trial in the UK in 2006. There have also been trials from mobile
operators such as 3, which launched its ad funded mobile video
content with Rhythm NewMedia in 2008. The use of ad funded
music helps appeal to a wide demographic, as the varying music
genres will draw a wide audience. By sponsoring the content and
lowering the cost to the end user, mobile music content providers
are appealing to a wider audience and budget, and this also
ensures advertisers a greater audience reach.
29
Ad funded mobile content
content for cheaper or even free, this would represent serious
competition for the label. The service from 3 UK saw a rapid
uptake with 25% of 3 subscribers signing up to the service in the
first six months, showing that this business format could represent
a threat to iTunes. For iTunes the competitive differentiator will be
cut price content versus brand loyalty. Apple has established itself
in the mobile music market, especially with the release of the
iPhone, but the price differentiator will be a competitive aspect in
the mobile music market.
30
Ad funded mobile content
2.7.1. Revenue
The main search engine giants that have migrated on to the
mobile web, including Google, Yahoo! and MSN Live search
receive the majority of their revenue from advertising. Despite the
weakening economy in the global credit crunch, Google has
reported particularly strong profits, despite fears of a slowdown in
online advertising spending, with a 30% jump in profits reported in
April 2008. However, these fears in a slow down in online
advertising spend are not unfounded and ad funded content
business models would do well to assess the global economic
situation when structuring their budgets and business models.
31
Ad funded mobile content
Chart 4. US search engine market share June 2008
Source: ComScore
32
Ad funded mobile content
providers can mould the games to the market’s specification and
can adjust the games to include relevant advertising and brands,
encouraging the mobile subscriber to engage with the
advertisement. However, visiongain believes that advergaming
revenues will account for a minor part of the mobile advertising
funded content market as users have been shown to be willing to
pay for this content. It will however also open up the market for
new entrants in reducing costs for games content providers.
33
Ad funded mobile content
advertisers will gain higher brand awareness and global audience
reach.
2.10. Conclusion
The mobile content that will be best suited to being driven by
advertising funding will evolve as the content available to mobile
subscribers increases in the amount and as the standards gain in
quality. New forms of content entering the market will have an
effect on what advertisers will choose to sponsor as well as the
forms that the advertising will take. Sales of mobile content are
continuing to rise as the mobile handset becomes more capable
of supporting more sophisticated content and greater memory.
The mobile content which currently presents itself as being most
appropriate for ad funding is mobile TV as this is the content,
particularly in Western Europe and the US, that needs incentives
to drive it into the consumer market. Content that has previously
been seen as expensive and subscribers are unwilling to pay for
would benefit from ad funding as free or cut price content will
34
Ad funded mobile content
drive subscriber use which in turn will push up the advertising
engagement and revenues.
35
Ad funded mobile content
Chapter 3 Implications of mobile ad
funded content
Mobile ad funded content will affect the costs and market
demographic reach of all those concerned within mobile ad
sponsored content. The use of advertising on content will allow
greater reach for the advertising brand tapping into the 3 billion
subscriber mobile market, which will also allow the advertisers to
gain intelligence in marketing to mobile subscribers, which will
give greater potential in future advertising campaigns. Working
with mobile content providers and mobile operators, mobile
advertisers and advertisers new to the mobile market will be able
to gather intelligence on the mobile subscriber market which
would aid them in future campaigns, both on and off the mobile.
This would also come to benefit the mobile subscriber, in
receiving advertising of a higher quality leading to a higher
standard of consumer experience.
3.1.1. OPEX
Mobile ad funded content gives mobile operators an opportunity to
reduce their operational expenses through the sponsorship gained
36
Ad funded mobile content
through the advertisements. The implication of mobile operator
costs will be determined by the kind of mobile ad funded content
that is present on the mobile network. For example; an MVNO
would dramatically reduce operational costs in deciding to fund its
business from advertising sponsorship. MVNO Blyk has used this
strategy and subsequently can offer its subscribers free calls and
text messaging. However, the amount of funds present from such
a business strategy may be reduced, and therefore may have an
impact on the quality of the service, such as by offering a low
amount of free calling, which may lead consumers to believe that
the advertising does not justify the service. By allowing other
forms of ad funded content on to the network, such as games and
music, mobile operators will be able to share in revenues gained,
which will help to offset the costs incurred.
3.1.2. CAPEX
The capital expenditures of a mobile operator will affect the mobile
operator in potential future advertising needed to fund differing
content in the future. Some mobile operators may need to
upgrade their networks and adopt certain standards to achieve the
highest quality of content and advertising, or risk subscribers
defecting to other networks for a higher standard in QoS.
Investing in these areas may increase CAPEX for mobile
operators, but will be necessary in responding to the market.
37
Ad funded mobile content
multiple market segments over the network then there is a risk of
the subscriber receiving untargeted ads which take on the quality
of spam, driving users away from the service. For smaller MVNOs
like Blyk, there is also the danger that if main stream mobile
operators should choose to offer ad funded networks this may
well push smaller less well known brands out of the market.
38
Ad funded mobile content
subscriber market. Network operators must also determine
whether they will be offering separate ad funded content or if they
will provide an ad funded network when entering the mobile ad
funded content market. When operators debate this there are
several factors to consider:
39
Ad funded mobile content
on the portal, and having the content available from the subscriber
starting, limiting the click distance, their mobile web search would
give the ad funded mobile content the greater reach to the mobile
audience.
3.1.7.1. 3 UK
In March 2008, 3UK launched the first ad funded commercial
mobile music video service in conjunction with Sony BMG Music
entertainment, powered by mobile advertising solutions company
Rhythm NewMedia. The service is available to 3 subscribers
through the 3 music page on the WAP site. The service was
launched following a successful service of free mobile video in
2007 in which during the first two months of roll out, around 10%
of the subscriber base of 3 UK had viewed video clips on the
service. By October 2007, it was reported that 1 million users had
registered for the ad funded service, demonstrating the customer
satisfaction for the service. This has demonstrated that mobile
subscribers, especially 3 UK mobile subscribers are willing to view
40
Ad funded mobile content
advertisements in return for free mobile content, and that 3 UK
has found success in music and mobile video content for ad
funding. In promoting mobile video through ad sponsorship, 3 UK
is able to provide financial incentives for its subscribers to try the
service, as there is little or no cost to the end user.
3.1.7.2. Vodafone
Vodafone has entered the mobile ad funded content market in
several areas of Europe, including Italy, Spain, Greece and the
Czech Republic. Vodafone has explored differing forms of content,
including ad funded peer-to-peer SMS and games in Greece,
Spain and the Czech Republic, while Vodafone Italia has launched
ad funded mobile video content in Italy. The service Free Video
was launched in January 2008, demonstrating the growing
number of mobile operators who believe that mobile video content
is the most appropriate form of content to fund from advertising,
minimising the cost to the end user and providing an incentive for
those who have never tried the service to sample the offering from
the operator. Vodafone has partnered with Amobee Media
systems to offer the ad sponsored content and it too is
considering which content is most appropriate to fund with
advertising and offer to its subscriber for free.
41
Ad funded mobile content
In an interview with mocoNews.net, Mike Eaton, head of content
at Vodafone UK stated that while Vodafone had plans for the
mobile ad funded video content market, that ad funded games
would not be appropriate, as this particular industry was one in
which users were happy to pay for the content, giving profitable
revenues. This suggests that providing some mobile content, such
as games, through advertising funding and offering them for free
to the consumer may devalue the content and alienate a
sustainable form of revenue. Mobile operators must therefore find
the appropriate balance between enticing their subscribers onto a
service by offering it for free and retaining a sustainable business
model for providing content, in which users are charged. To do
this operators must determine the popular content and which kind
of content subscribers are most likely to pay for.
3.1.7.3. Orange
Mobile operator Orange has launched ad funded content in
France and is also trialling ad funded content in the UK. In
France, Orange has joined with Amobee and launched ad funded
mobile games trial in H1 2007. This was reported to be the first
mobile ad funded content trial in France and included sponsorship
from advertisers including Coca Cola and Societe Generale, Saab
and Mobifun. The objective of the trial was to determine the
attitudes of the Orange France mobile subscribers in regards to
ad funded games content and how consumers would react to
advertisements in mobile content, on their mobile handsets. While
other mobile operators have rejected mobile games as a source
for ad funded content, Orange France have chosen to market this
content to its subscribers. Research for the Mobile Entertainment
Forum has estimated that in the UK ad funded mobile games will
42
Ad funded mobile content
be worth £600,000 in 2008 ($1,167,970) and £41 million ($79
million) by 2012. It is clear that some operators and analysts
believe that ad funded mobile games represent an area of growth
in the market and time spent by operators investing in this area
would be worth while. However, visiongain believes that mobile
video and TV is the area which holds more potential in the ad
funded market, as subscribers have been previously shown to pay
for mobile gaming content, whereas mobile video can provide a
rich media experience for the advertisers and will drive
subscribers onto a new medium, which can be difficult given
perceptions of mobile data prices. Offering the service for free
would be an incentive for the mobile subscriber. As discussed
previously, ad funding in content such as mobile games where
subscribers have been previously happy to pay for the content,
providing advertising funding and allowing the content to be
downloaded for free runs the risk of devaluing the content.
43
Ad funded mobile content
In the UK in March 2008, Orange announced that it would be
trialling ad funded music content for 800,000 of its mobile users.
The music will be offered in four different genres; urban, pop, rock
and dance. Users can download the content from the Orange
world internet platform. The trial is set to last three months and
reflects a common download for mobile subscribers. As more
mobile devices become enabled with devices such as Mp3
players and larger video screens the demand for music and music
videos on the mobile handset will grow. Orange's UK trial reflects
the growing trend in mobile handsets and mobile subscribers, and
will be able to reach a growing number of consumers through this
kind of media.
3.1.7.4. Cellcom
Another mobile operator to have trialled ad funded mobile game
content is Israeli operator Cellcom. In July 2007, Cellcom
announced the completion of its ad funded games content with
successful results. Cellcom reported a 44% click through rate
demonstrating the effect ad funding can have on mobile content.
The ad funded mobile games market has demonstrated success
for the operator and shows that a substantial amount of the
market reacts positively to ad funded mobile games content.
44
Ad funded mobile content
display on mobile handset vendors, rather than mobile operators.
This may provide competition between handset manufacturers
and operators, opening up the market.
45
Ad funded mobile content
ad funded mobile business can drive content and services on to
all handsets on the mobile platform. Amobee recognises that
having mobile content accessible through a paid method is one of
the major barriers to mobile content. Sponsoring mobile content
with advertising is a way around this barrier, and that in offering
greater consumer choice in this market ad funded mobile content
can flourish.
3.4.3. Audio
Audio content, such as music and ringtones, has evolved from the
polyphonic ringtones to real music tones and music videos,
combining the audio and visual market. The ringtones content
market represents an older more established side of the market,
46
Ad funded mobile content
which consumers have been shown to be more willing to pay for
as the market has been sustained and expanded. Mobile
subscribers are now offered more sophisticated mobile audio
content options which present themselves as being more
appropriate for advertising sponsorship. Mobile ad funded music
videos are being offered by mobile operators in the market
representing a shift in market demands. Mobile subscribers now
have access to more sophisticated handsets which combine
calling and entertainment uses, such as video and music playing.
This in turn increases demand for content such as music videos
which are short and suited to a small mobile handset screen.
Mobile subscribers have previously been cautious with regards to
downloading large amounts of data onto the mobile due to
perceived high data costs and low speed. These issues are
improving and ad funding will also improve perception of these
services boosting demand. The ability of mobile subscribers to
download such content for free will encourage more users to use
the content, vital in gaining first time users of the content.
3.4.4. Visual
The heightened sophistication of visual content represents a
newer market in mobile content, and demonstrates a market that
is appropriate for advertising sponsorship. User generated video
content and broadcast mobile TV have varying popularities in
differing markets. The accessibility of user generated content and
the perception of high cost for mobile TV drives subscribers away
from the service, and ad funding would help counter this. The
incentive of gaining mobile TV content for free would drive more
first time users onto the service. A ComScore study revealed that
price was the biggest barrier to mobile TV for subscribers, with
71% citing it as the primary consideration. Trials conducted by
mobile operators with ad funded mobile video have concluded that
subscribers will accept an amount of advertising on their mobiles
in return for free content, demonstrating the potential in subscriber
take up that mobile ad funded TV has. Other visual content, such
as wallpapers and photos, have been in the mobile content
market for some time and subscribers have shown a willingness
to pay for them. However, with an increasing amount of
47
Ad funded mobile content
competitors emerging into the market the ability to offer free
content through advertising sponsorship would offer valuable
competition differentiation.
48
Ad funded mobile content
be more receptive to TV ads, as this bears on the experience of
traditional TV, and therefore subscribers would expect this kind of
advertising, and would be more likely to engage with it.
49
Ad funded mobile content
receiving irrelevant advertisements subscribers will be more likely
to engage with targeted adverts, which will feel more like a
service, providing the subscriber with information that is
welcomed, rather than ignored or deleted.
50
Ad funded mobile content
ad funded mobile content will be that which providers need to
provide incentives in order to gain consumer subscription in a
market which has so far seen relatively little take up rather than in
a market which has seen a consumer willingness to pay for
content.
51
Ad funded mobile content
Mobile advertisers will also be able to reach a more targeted
audience by the intelligence gathered from the distribution of
different forms and genres of content. Mobile subscribers who
download specific types of content on a regular basis such as
specific genres of music or games will denote a specific market
segment that can be accordingly targeted by the advertisers.
25-35 age bracket. Age bracket will vary Youth market Age will vary Niche/specialist
depending on the dependant on music markets. Age will
Will appeal most to game Suited to most genre vary depending on
those who have a variations of target market
better understanding Mobile handsets handsets Mobile handsets
of mobile technology with larger converged with mp3 Ad funding gives a
and their handset interactive screens players will competitive
capabilities at first. will benefit mobile encourage this differentiator in a
games market heavily populated
Those with higher mobile market
handset As subscribers have
specifications will be shown a willingness
more likely to enter to pay for mobile
into this consumer games it is unlikely
market that this will become
a large part of the
ad funded market
Source: visiongain
52
Ad funded mobile content
3.7. Conclusion
The implications of ad funded mobile content will affect not only
the mobile content providers, but the advertisers, mobile
operators, the consumers and to some extent the handset
manufacturers as well. As the market for ad funded content
grows, mobile strategies in content and advertising will evolve to
provide mobile subscribers with a targeted service.
53
Ad funded mobile content
Mobile subscribers and handset vendors will also feel the effects
of ad funded content. Subscribers will gain from content that is cut
in price and advertising that is directly relevant to them. The
element of choice will also be crucial for the mobile subscriber in
deciding what and how much advertising is delivered to them.
Mobile handset vendors will need to recognise the market
changes in mobile content as greater numbers of subscribers
explore the available content on the mobile platform. Mobile
handsets that allow for greater interaction with mobile content,
such as larger touch screens and greater memory capabilities, will
appeal to subscribers interested in mobile content and ad funded
mobile content.
54
Ad funded mobile content
Chapter 4. Global market reach of
mobile ad funded content
The impact and reach of mobile ad funded content will vary
depending on the dynamics of global markets. Factors that will
affect the impact of mobile ad funded content include cultural
differences, economic bands, language barriers and technological
interoperability. Mobile content providers, operators and
advertisers will have to overcome these barriers in order to
effectively target specific market segments over the mobile
platform. Advertisers will also have to consider the brand reach for
their advertising campaigns to be connected with mobile content.
The brands must have relevancy to the mobile subscriber and this
will vary in different geographical markets.
55
Ad funded mobile content
handsets that are technologically capable of supporting various
kinds of mobile content, from music to TV. Again this varies when
the markets are studied separately.
56
Ad funded mobile content
limit consumer spending. By offering mobile content for free, or at
a cut price, mobile ad funded content can provide a service for
mobile subscribers which does not dramatically increase their
budget and can even reduce it should the consumer choose an ad
funded MVNO. In an economic climate where consumers find it
necessary to limit spending, companies and business models that
strive to offer consumers services and products that can save
money in order to pay for rising food, fuel and mortgage costs will
gain greater affinity with the consumer and will offer a competitive
differentiator in the market.
57
Ad funded mobile content
and 35, being an age demographic with disposable income and
more likely to have experience with mobile content. The factor in
price will appeal across the market and will enable mobile
subscribers who have had little experience in mobile content to
enter the market and will allow newer forms of content which have
had less of an impact to reach new audiences. The addition of
contemporary advertising brands into mobile ad funded content,
such as EMI, will help to drive ad funded content into the
contemporary market. Specific ad brands being used, such as
Disney, will also help to target specific market segments and when
used within the content can drive the content towards their
preferred market.
58
Ad funded mobile content
59
Ad funded mobile content
seen by mobile handset vendors in the global economic slowdown
of 2008. This surge of mobile handset sales in these markets
suggests a growing mobile market in these areas, but mobile ad
funded content has to perform in developed markets before it can
be pushed in emerging markets. Mobile subscribers with higher
spending capabilities will be reacting and acting upon mobile
advertising, and while those in emerging markets would benefit
from free content, advertisers may not view this as a sustainable
investment. Cheaper content and networks are a philanthropic
investment for those who need it in emerging markets but in
uncertain economic times businesses feeling the pinch must
consider their long term sustainability.
60
Ad funded mobile content
information and the advertising of local services, products and
information could provide a vital lifeline in some communities. The
reduction in costs of content through ad sponsorship will help to
drive these areas of the market, previously untapped, onto the
mobile content market. However, as previously discussed,
advertisers may be wary of investing in this area due to the
potential low ROI. The introduction of a free ad funded MVNO
would provide competitive potential in the emerging market place,
but sponsoring advertisers would be wary, given the unproven
market in this field.
61
Ad funded mobile content
would be removing a significant barrier between mobile
subscribers and content, increasing the use of content and driving
revenues.
62
Ad funded mobile content
a content that is little used in these markets, gaining subscribers
and reducing churn.
63
Ad funded mobile content
4.7. Mobile content standards
In order to maximise the reach of mobile content, standards in
technology are required to allow a high QoS, reducing churn and
encouraging loyalty to the service. The standards mentioned
below have the potential to improve the speed and quality of
service for mobile content, particularly that which relies on the
mobile web. Speed and quality of content and data have been
major issues when it comes to the mobile web, and has put off
some mobile subscribers from using the mobile web and
applications like mobile search, although this is starting to improve
due to improvements in the service. Data costs have also been
perceived as a problem by mobile subscribers, however, the
changes in charging for the mobile web, such as flat rate charges
and charges per download rather than for the amount of time
spent on the web. Funding content through advertising will work
towards removing the cost barrier that prevent some mobile
subscribers taking up mobile content, which, when coupled with
an improvement in the QoS will drive mobile content further
towards mobile subscribers.
4.7.1. 3GSM
The implementation of the 3G standard has provided the mobile
user with a standard that allows the delivery of a range of
multimedia services. Mobile subscribers who use mobile content
will rely on this standard to allow the transmission of data needed
when downloading certain mobile content. The roll out of 3G is
more prevalent in European markets whereas, in the US for
example, the EDGE network is more prevalent. However, the
coverage of the network is spreading and, according to GSM
world is available in over 200 countries and territories. This allows
for greater interoperability of service, which will have benefits for
content on the network as well if mobile subscribers are able to
access the content in other areas, although charges will vary. The
data speeds available on 3GSM allow for around 300 kbits, giving
users fast access to mobile data, improving the consumer
satisfaction and QoS and allowing for more sophisticated mobile
content, such as music and TV, to be downloaded by mobile
subscribers in a fast and efficient manner. As the content available
to mobile subscribers becomes more sophisticated and requires a
64
Ad funded mobile content
higher amount of data, networks with higher data capability will
become imperative to content providers pushing these higher
quality mobile contents in order to ensure a high standard of
service to their consumers and reduce churn due to
dissatisfaction.
4.7.2 3G HSPA
HSPA encompasses HSDPA (High Speed Downlink Packet
Access), first commercialised in 2006, and HSUPA (High Speed
Downlink Packet Access), which has seen major deployments in
European markets over the course of 2007. With over 850 million
GSM, WCDMA and HSDPA subscribers in HSPA-enabled
networks worldwide in September 2007 according to GSA
estimates, the potential impact of these technologies on mobile
content and applications should in terms of quality and
subsequent market adoption. HSPA technologies will enable
operators to provide advanced multimedia and content services.
In effect, MNOs hope that by enhancing the mobile broadband
experience and facilitating the adoption of mobile data services,
HSDPA will deliver on the original promise of 3G.
Source: visiongain
Throughout the course of 2006-2007, the spread of HSPA
deployments has marked notable increases in the volume and
variety of HSPA-enabled devices, covering both phones and PC
connectivity modules such as embedded laptops, wireless routers,
USB Broadband modems and PCMCIA cards. Table 4 shows the
number and type of HSPA-enabled devices available in consumer
markets around the globe as of September 2007. 79 ODMs
produced the total of 311 commercial devices.
65
Ad funded mobile content
4.7.4. WiMAX
The evolution of WiMAX has experienced criticisms but has also
been hailed as the basis for the future of communications
providing a competitor to 3/4G networks. By adding competition in
the area consumers will benefit by networks competing to offer
the better service, giving greater speeds and QoS which will also
benefit mobile content. The ability to increase the distance of
wireless communication through WiMAX will also help those in
markets where terrain is hostile enter the mobile market and allow
greater transfer of mobile content.
66
Ad funded mobile content
• STIMI (Satellite Terrestrial Interactive Multiservice
Infrastructure) Available in China
• T-DMB (Terrestrial Digital Multimedia Broadcast) Available in
South Korea and Germany.
4.9. Conclusion
The bulk of ad funded mobile content will gain traction in
developed markets, notably Western Europe and the US. In areas
of Asia Pacific, free-to-air mobile TV may well negate the need for
ad funded TV and other forms of content will have to be utilised in
this market. Advertising on content will be best suited in a
geographical market where disposable income is high to ensure a
positive response to advertising, but will also be well received by
subscribers wanting to cut their mobile costs due to smaller
disposable incomes. In this case, ad funded MVNOs will gain
traction and popularity. Other more luxury forms of content that
are funded by advertising will gain more traction amongst
67
Ad funded mobile content
subscribers in more developed markets at first, and will then move
to emerging markets as the low price allows subscribers to
indulge in what may have been content previously viewed as too
expensive.
68
Ad funded mobile content
Chapter 5. Mobile ad funded content
available
While ad funded content is still a relatively young market, there
are various examples of ad funded mobile content available in the
mobile market. Various kinds of mobile content are emerging as
ad funded business models with varying degrees of success, with
advertisers, content providers and operators choosing different
types of content to promote and support. Web 2.0 applications are
making an impact on the mobile web and what mobile content is
available, and this has reflected on the entry of mobile TV and
mobile social networks into the ad funded market, and visiongain
believes that this will continue to be the case as we see more
examples of ad funded mobile content coming into the market.
69
Ad funded mobile content
target market to one specific segment which risks alienating
potentially lucrative areas of the advertising market and high
spending mobile subscribers. There are clearly areas in which the
ad funded MVNO needs improvement if it is to offer a truly
competitive service, but there is strong potential for the service to
compete amongst other mobile operators in a variety of markets.
5.1.1. Blyk
Entering the market in 2007, UK MVNO Blyk offers mobile
subscribers a package of free minutes and texts in return for the
subscribers receiving and responding to adverts sent to them on
their mobile handset by Blyk. The MVNO uses the network from
Orange to offer its service and when consumers have used their
free minutes and texts bundles, the call pricing reverts back to
Orange's pay as you go pricing. In 2008, Blyk intends to move
into the European market (Spain, Germany and Belgium) with the
aim to reach the 40 million young subscribers. As of April 2008
Blyk has signed up over 100,000 subscribers which, according to
their press release, is six months ahead of schedule,
demonstrating that, so far, the service can be viewed as a
success. The success for the MVNO is also a success for its
advertisers, with whom it is tied in, as the advertisements receive
exposure to a targeted audience increasing the chance for higher
ROI.
70
Ad funded mobile content
their information, Blyk has ensured that their subscriber is fully
aware of the advertising that they are likely to receive and are
less likely to regard this advertising as a nuisance and are made
fully aware of the benefits. Blyk also works on a social scale as
when a mobile subscriber has joined Blyk they can invite others to
join.
71
Ad funded mobile content
minutes offered on the network. The subscriber is offered 217 free
text messages and 43 free voice minutes. The number of voice
minutes is extremely low and when the subscriber goes over the
subscriber can top up on the tariff used by Orange's pay as you
go, at £0.10 ($0.19) per text and £0.15 ($0.29) per minute for
voice calls. While Blyk has estimated that compared to the
average pay as you go tariff for the 16-24 year old market where
the mobile subscriber can save over £280 ($554) per year, this
does not take into account the fact that contract mobile network
offers offer a much higher number of "free" minutes and texts for a
fixed charge, with lower charges per text/minute outside of these
bundles. While Blyk is able to offer the competitive differentiator of
offering truly free minutes in exchange for advertising, other
operators are also offering competitive bundles on contract, and
subscribers on contract may not be swayed by a low number of
free minutes per month. Blyk is therefore more competitive to
those on a pay as you go package, and to the areas of the youth
market on a strict budget.
72
Ad funded mobile content
release of the novel "Slam" by Nick Hornby the campaign
received a 67% response rate, demonstrating the effect that
targeted advertising can have on the mobile, and that advertisers
will gain an engaged audience with the potential for higher ROI
and revenues.
L’Oreal: Drive new product 40% Blyk sent initial MMS and 66% responded to
and brand follow up competition offer completed MMS and 70%
the competition
COI Connexions: 36%
Investigate scale of Blyk sent SMS messages 1 in 8 Blyk respondents
bullying among 16-19 year on days away from work visited the Connexions
olds and school to relevant age website that day
group
Source: Blyk
73
Ad funded mobile content
The networks may wish to keep targeting separate markets, but
they will have to offer more markets the chance to use the service
(i.e. not just the youth market in this case) and target these
markets accordingly with relevant advertising through separate
networks, which will mean that the service avoids alienating rich
areas of the market.
74
Ad funded mobile content
subscribers rewards on other mobile applications and material
goods. For example, the subscriber can earn reward points for
Apple iPods, iPhones or Visa gift cards. Like other ad funded
MVNOs subscribers are required to fill in a survey upon joining to
ensure that the advertising is as relevant as possible.
5.1.4. Ümobile
Ümobile is the first ad funded mobile network service to be
launched in Asia. The service has been launched in H1 2008 in
the Philippines and, like others on the market, has targeted a
specific age group in order to allow advertisers to target specific
market segments. The network is open to 18-35 year olds on an
invite only basis. On joining, members fill in a questionnaire giving
advertisers valuable information ensuring that advertising is
relevant, increasing ROI. The MVNO is owned by SMART
telecommunications and to drive subscriber take up the MVNO is
offering deals to subscribers who sign up between June 1 2008
and August 31 2008. Benefits to subscribers signing up within this
time frame include:
• Free PHP100 load every month for the first six months-
financial attributes continue to appeal to the ad funded MVNO
customer
• Mobile VoIP (Fring)-VoIP allows the network to provide its
subscribers with a solution that can be low cost as well as
high quality and competitive
75
Ad funded mobile content
• National coverage-Allows the network to compete in the local
and national market improving the QoS for the subscriber
• Rewards scheme-The subscriber can claim rewards through
the advertising offered through the network, increasing the
competitive differentiator of the MVNO
• Mobile broadband access-Access to boradband enhances the
communication package and again gives the MVNO a
competitive standing in the market
• PC calling with a virtual phone-This is not yet available on the
service, but will enhance the communication as a package
that the network is offering
76
Ad funded mobile content
information that subscribers give on social networks advertisers
will be able to target their audience effectively. Mobile advertisers
will also be able to make use of the mobility that mobile social
networking has to offer as location aware mobile social networks
come in to the market. Mobile social networks that actively track a
subscriber or their "friends" location, as is the case with mobile
social network Loopt, will also be able to strategically advertise to
the subscriber using LBA. While Loopt is not advertising on its
network social networking sites can use this technology to fund
their service through advertising and offer their subscribers a
targeted and relevant service.
77
Ad funded mobile content
dominance and traction in this area ad funded content can gain
stability and revenue potential in a strong area on the mobile.
5.2.1. M3 Mobile
An example of an ad funded mobile social network is M3 Mobile.
Currently still in Beta stage, the service allows mobile subscribers
to make connections with others on the network and for adverts to
appear that are deemed relevant to the user in that the product or
service is in the vicinity of the subscriber or their "friends" and
subsequent offers conjoining the product can be made. Based on
the interests of subscribers shown on the network and the
networks groups, advertisers can effectively target their market
segments and use location to further narrow down the target
market which can help to lower costs if advertisers are paying
only when their ad is displayed.
5.2.2. itsmy.com
A mobile only social network, in April 2008 itsmy.com announced
that it had 1 million users. The service is mobile only, and the
company behind it, Gofresh, has pushed the service on to the
78
Ad funded mobile content
mobile platform, off portal, and allows users to view and create
mobile content. The creation of user generated content
encapsulates the control given to mobile subscribers which will
help drive the success of ad funded mobile content. By making
subscribers absolutely aware of what they will receive in return for
advertisements that subscriber can choose whether or not to
receive the advertisements and the content. UGC echoes this in
allowing subscribers to create their own content on the mobile.
79
Ad funded mobile content
funded TV mobile platform. In January 2008, it was reported that
GoldSpot received $3 million in series A funding. In April 2008
GoldSpot announced its "trial in a box" with the aim for advertisers
on the mobile TV platform to be able to test the platform and
determine the market available to them.
5.5.1. Pitch/PlayPhone
As reportedly the first mobile content provider in the UK to provide
advertising funded content, the company provides mobile content
in varying forms. The content covers mobile entertainment and, in
May 2008, a merger with/acquisition by PlayPhone was
announced which Pitch described as an effort to increase the
subscriber base and increase the reach of Pitch's mobile
entertainment content.
80
Ad funded mobile content
5.5.2. Myxer
Founded in the US Myxer provides mobile content including
wallpapers, ringtones, games and videos that are funded by
advertising. The service extended into the UK in January 2008
and the amount of content available to mobile subscribers
continues to grow. According to Myxer nearly 4 million people use
Myxer to download mobile content from the internet, from over
250,000 pieces of content. The method of ad funding for Myxer
content is not limited by location and through the cost incentives
and variety of content available will be able to appeal to a broad
81
Ad funded mobile content
market base. According to a study in the UK the MEF found that
ad funded mobile entertainment is set to produce $286 million in
revenue by 2012. There are clear indicators that ad funded
content and content that will be well suited to advertising funding
have growth potential in uptake and revenue, as demonstrated by
these figures.
82
Ad funded mobile content
providers including Jamster, gauging the click through rate for its
ad funded games (39%). Visiongain believes that consumers have
proven willing to pay for mobile games and that ad sponsoring this
content may cut off a lucrative market. However, innerActive has
found that 78% of its games players were new users,
demonstrating that ad sponsoring this content draws in a high
amount of users that previously would not have used the content
due to the price.
83
Ad funded mobile content
5.6 Greystripe
In January 2008, it was announced that Greystripe and Opera
would partner for ad funded mobile games. Greystripe's Adwrap
method is used by twenty distributors, and Opera is the latest to
join. Greystripe describes itself as "the world's first in-game mobile
ad network and the world's first ad-supported mobile game
distribution platform" and has the ability to reach millions of
subscribers through its distributors and the portal
GameJump.com. Greystripe delivers adverts that are wrapped
around mobile content, encouraging consumer engagement with
their content and advertising.
84
Ad funded mobile content
This study carried out for Greystripe demonstrates trends that can
be exploited by mobile advertisers in mobile ad funded content.
By gaining an understanding of mobile users actions on the
mobile web and in mobile advertising campaigns, advertisers can
provide better advertising that the mobile subscriber is more likely
to use. By gaining knowlege that regular film goers are more likely
to search for film times on the mobile web, advertisers can target
their audience accordingly. By gaining a knowledge of the amount
of mobile subscribers using the mobile internet and that market
demographic, advertisers and content providers have a better
knowledge of their market. This allows ad funded mobile content
to be more targeted and therefore more welcomed by the user
driving up engagement with advertising and ROI potential. Ad
funded content represents a compelling format for mobile
operators, advertisers and content providers and the campaigns in
Greystripe's ad funded content demonstrate the potential for
success for those involved.
85
Ad funded mobile content
Chapter 6. Branding and advertising in
mobile ad funded content
As demonstrated by various mobile advertising campaigns, mobile
ad funded content is a useful tool for advertisers wishing to
expand the reach and recognition of their brand. The 3 billion
mobile subscribers that represent the market potential in targeting
the mobile market can be reached on a device that is extremely
personal. Therefore the advertising must be targeted and relevant
and this offers the opportunity for large brands to reach
consumers on a more personal level than other forms of
advertising increasing the consumer engagement with the
advertising while maximising the ROI potential.
Brands are able to make the best use of mobile space by utilising
wrap around advertising, or advertising within the content itself.
The advertising used can vary as mobile data capabilities grow.
Video and banner adverts can be used on the mobile, a rise in
data speeds and in the number of handsets with large touch
screens allows for more detailed visual advertising on the mobile.
Consumers can also engage with mobile advertising through SMS
or MMS advertising on the mobile. One such example, as seen on
the search engine 4INFO uses a "teaser ad" via text message to
gain the users attention, when the user responds the advertisers
can be sure that the consumer is actively engaging with the
advertising and sending the remaining advert gives the likelihood
of higher ROI as the advertiser is already assured of the
consumers interest in the product or service.
86
Ad funded mobile content
For the Penguin campaign Blyk used text, visual and audio
advertising over the mobile via MMS to give maximum exposure
to the novel being advertised, and to keep the brand fresh in the
subscriber's mind, even those who responded "No" to wanting
further information on the novel were sent a website address for
Penguin Books. In advertising the novel to subscribers, Blyk
created a two part MMS dialogue encouraging subscribers to
accept an audio reading of a celebrity reading an extract from the
novel. Subscribers were also offered the option of saving a "Slam"
wallpaper to their handset, promoting the brand and the product.
According to Blyk, the use of audio clips to promote a book was
"a media first" and the click though rate of the advertising
demonstrates the effectiveness of using different varieties of
media in mobile advertising. The total response to the
advertisement was 67% and of those, 51% requested the audio
clip offered. Blyk was also able to determine the best times in the
day to advertise to their audience and reach their target market,
identifying the times between the hours of 11am and 3pm,
87
Ad funded mobile content
targeting students or those at work typically on a lunch break,
ensuring a time of optimum attention from their subscribers.
The aim of the Penguin advertising In order to target as wide a •Total response: 67%
on the Blyk network was to: consumer base as possible while
keeping the advertising relevant Blyk •”Yes” response 51%
•Drive consumer awareness amongst employed the following strategies:
Blyk subscribers of the launch of the •”No” response 49%
novel “Slam” •A two part MMS message was sent
to subscribers offering an audio clip •Book buyers 16% more likely to
•Increase awareness of the brand respond
Penguin and its website •Those who replied yes were sent an
www.penguinbooks.com as the audio clip of the opening chapter of • Book lovers 35% more likely to
primary destination for consumers for “Slam” read by a celebrity respond
new and the latest book releases
•Those who replied no were sent an
message detailing the address of
Penguin’s URL
Source: Blyk
88
Ad funded mobile content
6.1.2. Greystripe: New Line Cinema
In November 2007, Greystripe launched an advertising campaign
for New Line Cinema to promote the release of the film “The
Golden Compass.” Greystripe used its "Adwrap" solution to push
its advertising of the film to potential film goers downloading
Greystripe's ad funded mobile games, which resulted in a 19%
increase in the subscribers’ awareness of the film and a 9.5%
increase in those interested in seeing the film. During the
campaign, Greystripe was also able to compile additional
information which would be beneficial for future advertising
campaigns alongside mobile content. For example, it was found in
a subsequent study that 35% of users polled would use their
mobile phones to show film times, and 29% of users polled said
that they would download film advertisements onto their mobile
handsets.
89
Ad funded mobile content
90
Ad funded mobile content
will appeal to a broad market depending on the content shown, as
TV programmes placed on the mobile platform will attract their
own market base. Content such as games will have a more fixed
market in terms of age, but the differing genres will appeal to a
broader market base. In Western Europe and North America
mobile content will continue to be a popular feature, and with
mobile operators expanding into emerging markets it can be
expected that mobile content will also move into these markets.
6.5. Conclusion
Brands that previously found it hard to target a large audience
over the mobile with relevancy will benefit from ad funded content
due to the opt-in nature of the content. The size of the mobile
audience can be capitalised upon by mobile advertisers in ad
funded mobile content due to the information gained from
subscribers in opting-in to receiving the content and advertising.
91
Ad funded mobile content
Chapter 7. Market potential
The market potential of ad funded mobile content represents an
opportunity for advertisers to tap into a subscriber market
numbering 3 billion with adverts that are relevant and targeted,
and thereby more likely to produce higher ROI. As mobile content
becomes more sophisticated the advertising offered in or
alongside it will also become more sophisticated, and give a
higher standard of service incorporating technologies and displays
that are superior and can give a high standard of user experience.
The UI of mobile devices has continued to improve and this will
also drive mobile content and mobile ad funded content to mobile
subscribers allowing for content and adverts that are easily
accessible with an experience that is on a par with more
traditional forms of advertising, and in some cases an
improvement.
92
Ad funded mobile content
fewer subscribers due to economic reasons and advertisers will
need to reach as large an audience as possible. The market
potential for ad funded mobile content offers some lucrative
opportunities but issues on the mobile will need to be addressed
to truly unlock this opportunity such as user experience,
standardisation and audience participation and acceptance.
93
Ad funded mobile content
market to their audience and spend in this area will grow to $10
billion per year by 2013.
Source: visiongain
94
Ad funded mobile content
This will be a crucial factor in creating and perpetuating the
success of mobile ad funded content on a global scale. In order to
prevent advertising on mobile content becoming resented by
mobile subscribers as an invasion of privacy or related to junk
mail, mobile advertisers must ensure a relevancy that will include
location awareness across the globe. In BRIC markets, access to
the mobile web will be used instead of the fixed line PC access to
the internet where this step of fixed line access may be skipped in
favour of a mobile option. In these markets, the mobile web will be
a vital link and advertisers will be able to use this to connect to
their audience through relevant content.
95
Ad funded mobile content
capable of supporting content. This market demographic is also
more likely to have financial constraints (i.e. students) and would
therefore welcome the opportunity of receiving mobile content for
free and be more receptive to the advertising sponsoring said
content.
96
Ad funded mobile content
97
Ad funded mobile content
Globally we expect the popularity of mobile ad funded content to
be ranked in the following order by 2013:
Proven consumer Targeting niche markets Large market base to Possibility of overzealous
acceptance of ad funded drives away other target advertising being regarded
content in trials potentially large markets as “spam”
Ad funding brings in
Potentially lucrative Revenue must come from market that previously may Devaluing of content
funding source subscribers acting on not have paid for content
advertising which cannot Potential saturation of
Targeted advertising be guarunteed content market
through opt-in strategies
Source: visiongain
98
Ad funded mobile content
Chapter 8 Conclusions and
recommendations
To conclude, it has become clear that the mobile is the new
platform for advertising. Mobile content sponsored by advertising
is one avenue in which advertisers can push their brand and
products to the mobile audience, while avoiding being viewed as
junk mail or an invasion of privacy. Advertising funded mobile
content will drive mobile content to a wider audience as it
becomes able to target specific market segments, grow revenue
and budgets to allow for a greater distribution of content.
99
Ad funded mobile content
8.1. Mobile content providers
Mobile subscribers will come to expect more sophisticated content
over their mobile handsets, particularly as the mobile web
becomes more accessible. As the bandwidth for certain types of
content improves and mobile subscribers gain greater access to
the mobile web, competition for mobile content and ad funded
mobile content will be driven up. Mobile content providers should:
100
Ad funded mobile content
• Consider providing niche content, such as niche MVNOs
which can be funded by advertising and appeal to a specific
target market.
101
Ad funded mobile content
8.3. Mobile operators
Mobile operators will control much of the space in which ad
funded mobile content is presented to the subscriber. Because of
this, cooperation will be needed with mobile operators in order for
the mobile subscriber to receive a tailored service. Mobile
operators can also gain revenues from allowing advertising and
ad funded content on to their networks. Mobile operators should:
102
Ad funded mobile content
103