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Ad Funded Mobile Content 2008

Ad Funded Mobile Content 2008

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Published by Carl Costa

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Categories:Types, School Work
Published by: Carl Costa on Jan 06, 2009
Copyright:Attribution Non-commercial

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05/24/2012

As previously discussed, subscriber take up has varied in different

markets, and remains low outside of Asia Pacific. There is also

conflicting opinion as to what subscribers want from a mobile TV

service. For example, the nature of the mobile device, in that the

battery power will only allow for a certain amount of viewing, and

the size limitations of the mobile screen, would suggest that the

most appropriate content for mobile subscribers would be short

clips and shows dedicated and moulded to the mobile handset.

However, a ComScore study of 2007 showed that users would

prefer to watch traditional mobile TV rather than content

generated especially for the mobile. 56% of those polled would

prefer to watch a whole show, rather than a version compacted for

the mobile. There was also a preference to general content over

focused content seen in the survey, with 53% of those polled

preferring general content such as news as opposed to focused

content such as extreme sports. This suggests that there is a

market for longer shows which would justify a higher number of

adverts to cover the cost. There are also suggestions that mobile

subscribers would be particularly receptive to ad sponsored

mobile TV. The ComScore survey showed that the greatest

consideration and potential barrier to the subscription of mobile

TV was cost, with 71% of all polled citing it as the primary

consideration. In a consumer behaviour study by Ericsson and

CNN mobile TV was the number one application that mobile users

wanted on their handsets; with 34% saying that it was the most in

demand application and 44% saying that they were to adopt it in

the next two years.

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Ad funded mobile content

In Japan there have been strong rises in the production of mobile

TV capable handsets, with, according to a news report by

advanced-television.com, "Cumulative shipments in Japan of

mobile phone handsets with one-segment terrestrial digital

broadcasting function topped 20 million as of the end of

December (2007)" and NTT DoCoMo introducing new mobile TV

capable handsets showing that the market in the Asia Pacific area

is positive. The standardisation of technologies and higher

bandwidth for mobile TV would also support this.

However, there is also dissatisfaction in this market. The low take

up of mobile TV in the European market would prevent

advertisers from sponsoring this kind of content locally. In Europe,

the highest take up of mobile TV is in Italy, where less than 1% of

the population have mobile TV enabled handsets, compared to

South Korea where 10% of the population have mobile TV

enabled handsets. The problem of gaining mobile TV subscribers

is highlighted in the UK market where, according to M:Metrics in

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Chart 3. Mobile TV trends

Source: ComScore 2007

Ad funded mobile content

H2 2007, 0.7% of the total UK mobile subscribers watched

broadcast TV on a mobile handset at least once a month, and

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%).

The issue of price can be solved by encouraging mobile

advertisers and brands to sponsor the content, thereby lowering

the cost to the end user with the potential to dramatically reduce

churn. Mobile advertisers will be aware of the massive potential of

the mobile audience, with over 3 billion mobile subscribers world

wide.

However, the low penetration of mobile TV capable handsets

outside of Asia Pacific limits the potential audience to advertisers,

and this needs to be addressed before advertisers can truly

support mobile TV. Standardisation is crucial in this area and the

delays in the roll out of DVB-H in some areas of Europe need to

be addressed to resolve this issue. The expansion of 3G networks

which is underway in Europe will also help to drive penetration of

mobile TV and potential audiences and subscriber numbers. The

implementation of flat rate charging on the mobile web has been

seen as a positive step for driving mobile subscribers to use the

mobile web and this would have the same effect for mobile TV.

Estimates place the number of mobile TV users in Japan at over 7

million according to Europa. This and the South Korea market are

clearly the markets which mobile advertisers can make the best

use in sponsoring mobile TV content. In the US and Canada

MobiTV, supplying broadband and mobile TV, has reported that it

has 3.5 million subscribers. The US and Europe have to reach a

unified standard in technologies and price setting before

advertisers will be convinced that there is a sustainable business

model to be had, and subscribers begin to take up the service in

earnest.

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Image 1. Sony Ericsson
Bravia

Source: Sony Ericsson

Image 1.2 Sony Ericsson
Bravia

Source: Sony Ericsson

Ad funded mobile content

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