RIM Looking to Acquire a Mobile Advertising Network?

The latest news in the mobile world is that Research In Motion, the famed Blackberry maker, is looking to buy a mobile advertising network.

RIM firmly believes that the only way to take on its arch rivals Apple and Google is to buy a mobile ad network which is big enough to challenge the networks of its rivals. It is said the company has been negotiating with Millennial Media, a Baltimore based advertising network. The talks, however, were not a success as the ad network expected a huge sum – somewhere in the range of $400-500 million.

RIM, understandably, is concerned about paying such a huge price as it believes that it is too expensive a price to pay to acquire the network. If you remember, Apple paid close to $300 million to acquire Quattro and Google paid an astronomical $750 million to acquire AdMob.

Millennial Media, according to sources, is not very interested in the deal as it believes that it has a bright future as an independent company. Also, it believes that an acquisition by RIM would limit its ability to serve targeted ads to the iPhone, iPad, and iPod platforms, which would eventually affect its relationship with Apple. So, it is not willing to give the nod unless it gets the right price.

Since the talks with Millennial Media were less than satisfactory, RIM is also believed to be looking for other mobile advertising networks like Greystripe and JumpTap.

The reason why RIM is so desperate to acquire a mobile ad network is not hard to understand. Its share in the global smartphone market slumped from 19.1 percent to 17.8 percent recently and most of its latest launches like Blackberry Storm, Storm2, and Blackberry Torch have not been a great success. So, to catch up with the rapid growth of Google Android and Apple OS, it believes it has to have its own mobile advertising network. While both Millennial Media and Research In Motion have declined to comment publicly on the developments, it is said that we could expect some big news, particularly from the RIM camp, in the near future.

Categories: Cell Phone Advertising, All things mobile phones, RIM.

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Voice Keywords from Go800 - A Mobile-Centric Approach to Direct Response Marketing

Go800, a subsidiary of mobile media services and solutions provider GoIP, has launched an innovative, patent-pending mobile direct response service called Voice Keywords. This service intends to bring vendors and their target customers closer and make the process of direct response marketing simpler.

Voice Keywords is basically a text-to-action version of direct response marketing. Vendors can use certain keywords related to their business in their ads and customers can respond to those ads by texting the keyword to Go800. When they do, a representative from the vendors’ response team immediately gets in touch with them and offers more information about the product.

For example, a mortgage lender can lease the keyword ‘mortgage’ and use it in his marketing campaign. Customers, on seeing the ad, can simply text the word ‘mortgage’ to 46800 (Go800). Immediately, Go800 will call the customers on their mobile phone and connect them to a representative of the mortgage lender. All this happens within a few seconds.

Vendors can lease keywords that they want to use in their marketing campaigns. Go800 says that a lot of keywords, both generic and brand-specific, have been already taken by a number of advertising agencies and businesses.

I think it is a good idea which could become popular with vendors if pitched the right way. There are two reasons why I think this idea will click.

1. It makes it easier for a potential customer to respond to an advert. As a vendor, you cannot expect someone to see your ad, call the toll free number, wait patiently to get in touch with your representative, and get the information. It takes time, which could make some people lose their interest halfway. With Voice Keywords, all a customer needs to do is text a keyword to get a call from a representative instantly.

2. A lot of people do not have smartphones or high end phones with mobile web facility. They will not be able to visit your website immediately and get the information they want. Text messaging, on the other hand, is a facility that is available in almost all types of mobile phones. So, a potential customer can easily text a keyword and get the information he wants in a matter of few seconds.

Go800 plans to make it a global service and is currently building case studies to show potential vendors how they can benefit from such a service.

The idea of a company calling back a customer is certainly new for a lot of people in the industry. So, it might be difficult to convince them to come out of the ‘customer-calling-toll-free-number’ mindset and give this new idea a try. I, however, strongly feel that new ideas like this will become popular in the near future as businesses start looking for ways to become more and more customer friendly.

Categories: All things mobile phones.

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Indian Mobile Advertisers Await the Arrival of 3G Services

I have always stated that India is one place where mobile advertising could grow really, really big. A recent report from FICCI-KPMG supports by claim again. It says that nearly 80% of mobile users in India do not mind getting ads on their mobile phones if they get something in return – free music downloads, video games, and stuff like that. More importantly, nearly 50% of mobile users say that they would view the ads they get on their phones.

This news could not have come at a better time for mobile advertisers. 3G services are going to be launched in India by the end of 2010, after which mobile users will be able to access mobile websites and WAP sites at lightning fast speeds. Though India entered the 3G domain in 2008, only the government owned operator, BSNL, was allowed to provide 3G services to customers. So, a huge section of mobile users, who use the services of private players, had to wait for a long time. Later this year, private players will be allowed to provide 3G service, after which there could be a huge increase in the number of 3G users in India.

What makes this report even more special is that Indian mobile market is growing at an astonishing pace. In 2001, there were only about 5 million mobile users in India. Within a decade, the number has increased to a mind-boggling 635 million, which means the market has grown at a jaw-dropping pace. So, India is potentially the biggest market for mobile advertisers all over the world.

Indian mobile advertisers feel that the introduction of 3G services will allow them to reach out to their target customer base more efficiently. So far, SMS advertising has remained the popular choice of advertisers all over the country as a large number of mobile users do not have high-end phones or high speed data connections. The situation, however, is changing rapidly. The increasing number of high-end phone users and the introduction of affordable 3G services mean that advertisers will now be able to reach out to their customers through video based and MMS based ads. So, Indian mobile advertising industry is awaiting the arrival of private players in the 3G domain eagerly.

Categories: Cell Phone Advertising.

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AT&T Orders 8 Million Windows Phone 7 Devices - What Does It Mean for the Future of Microsoft and AT&T?

The mobile industry is abuzz with the news about AT&T placing an order for 8 million Windows Phone 7 devices. The news comes from Michael Gartenberg, who is a well known name in the mobile industry. This news has surprised many for two reasons.

1. AT&T still remains the exclusive iPhone carrier in the U.S. The unprecedented success of the iPhone has helped AT&T increase its subscriber base significantly. In such a case, a shift towards Microsoft is seen by many as a shift away from Apple.

2. Microsoft is not a very big name in the mobile phone domain today, which is ruled by two of its greatest rivals – Google and Apple. So, many believe that AT&T will not gain much from a partnership with Microsoft.

On the surface, it looks like AT&T is taking a big risk by ordering such a huge number of Windows Mobile 7 devices. However, if you take a closer look, you will realize that it is not as risky as it seems.

First, there are rumors that the exclusive deal between AT&T and Apple might end soon. Industry insiders say that a Verizon version and a T-Mobile version of the iPhone might be in the offing, which would effectively end AT&T’s stint as the exclusive iPhone carrier in the country. If these rumors are indeed true, it makes sense for AT&T to look for an alternative since the iPhone will be no longer unique to its network.

Microsoft, due to various reasons, is still struggling to compete with Apple and Google and is desperately trying to become a dominant force in the mobile phone domain for ages. It is betting big on Windows Phone 7, which is expected to be loaded with highly advanced features. If Windows Phone 7 becomes a success, AT&T will be able to retain its position as a prominent carrier in the country and Microsoft will be able to gain a much needed foothold in the mobile phone market. So, whichever way you look at it, it is certainly an interesting move by AT&T. Will it pay off? Let us wait and watch.

Categories: All things mobile phones, Microsoft.

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Mobimag - Print Medium Goes Mobile in the Middle East

Mobivision, a digital media solutions provider based in Dubai, has developed a first-of-its-kind mobile application called Mobimag, which allows people to read magazines and newspapers on their mobile phones.

Mobimag is an ad-funded platform, which means it is available free to customers. The developers call it an intuitive, effective, and interactive advertising platform. They say the adverts could be in the form of small applications, games, videos, or animations, which gives advertisers a variety of choices to reach their target customer base. The platform has a ‘click to call’ button which customers can use to respond to the adverts.

The USP of the application is that it displays magazines and newspapers exactly in the same format as their print versions. It allows users to open and view the content in a mobile friendly format. Accessing print material on mobile phones is a fairly new concept in the Middle East, so, understandably, the application has garnered a lot of attention quickly.

Prominent UAE publishers including Campaign Middle East, Gulf Business Magazine, and the 7DAYS newspaper are available on the platform. Mobivision plans to have at least 20 publishers onboard within the end of the year. It should not be a problem as the platform offers a solution to a problem that most publishers in the region face – lack of multiple revenue streams. So, publishers are most likely to use this platform to deliver their content to the fast-growing mobile phone user base in the region.

Mobimag is compatible with more than 240 mobile phones, including Windows Mobile and Symbian based smartphones and certain models of Samsung, Sony Ericsson, LG, and HTC. Surprisingly, it is not compatible with the Blackberry, Android, and the iPhone – three of the fastest growing smartphone markets in the Middle Eastern region today. The company, however, has stated that customized applications for the Blackberry, Android, and the iPhone will be released later this year. It has also mentioned that a very special application for the iPad will be released shortly.

Categories: Cell Phone Advertising, All things mobile phones, Mobile Applications.

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