Customer-centric Mobile Advertising in 2020?

A recent report from OgilvyOne and Acision predicts an interesting scenario for mobile advertising in 2020.

The report says that in about a decade from now, in 2020, mobile phone advertising will be a lot more people-centric. Mobile advertisers, instead of spamming the inbox of the end user with random ads, will start delivering personalized ads which will be customized according to the end user’s preferences and tastes. In other words, the end user will determine what comes into his mobile phone. Since the content will be personalized and useful, a lot of people will be glad to opt into mobile advertising campaigns.

The report also says that the proliferation of 3G and 4G networks will fuel mobile advertising’s growth significantly. It will make services like mobile web, mobile social networking, and mobile TV, which are currently used only by a small percentage of mobile users, a lot more accessible for a large number of mobile users.

The report also goes on to add that the market will not be controlled by a handful of mobile operators in 2020. It is likely to become segmented and a lot of operators might consider offering ad-funded services. This could very well lead to a cohesive, symbiotic environment where both mobile operators and service providers complement each other and offer a lot of value for the end user.

Basically, the report pretty much sums up what I have been trying to say for a while now. If you need a little primer, you can check out this post. The future of mobile advertising, despite the objection of privacy champions, looks bright. In fact, it looks so bright that you can’t even look at it directly unless you are wearing shades.

Categories: Cell Phone Advertising.

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Is MobiTV a Success Story in the Making?

While the current economic crisis has affected a lot of companies, some companies still continue to enjoy huge growth. MobiTV, the pioneer in mobile entertainment, has had a phenomenal growth so far and the bad economy does not seem to have affected it at all. The company recently released its growth and revenue details and I have to say I was pretty impressed to see the figures.

1. The company recently reached the 5 million subscriber mark which is a considerable achievement. Interestingly, it managed to add more than a million subscribers in just five months.

2. Its growth chart has been really impressive. It started offering live TV to mobile phones way back in 2003 – a time when mobile TV was considered a longshot. In 2005, it had just around 500,000 subscribers. Now, it has crossed the 5 million mark.

3. The annual revenue, which was around $20 million in 2005, has now more than tripled and the company expects a substantial profit in the first quarter of 2009.

4. Recently, it has added popular shows like Desperate Housewives and ABC News to its long list of products. Also, its live coverage of the presidential debates got a huge positive response from a record number of mobile users.

5. A few months back, MobiTV came up with an application called Mobi4Biz which provides customized business news packages to viewers. The package includes features like live TV and a special video on demand facility wherein customers can get content from CNBC, Bloomberg, Fox Business, and TheStreet.com. This application, as of now, is only available on Blackberry Bold. Depending on this app’s success, the company has plans to come up with a replica of this application next year for sports fans and children as well.

6. MobiTV has joined hands with more than 20 carrier networks including some big names like AT&T, Sprint, and Alltel and is available on more than 350 handsets. It offers a wide range of content including live TV, video on demand, digital music services, and premium programs. The revenue generated is split evenly between MobiTV, content providers, and mobile operators.

As you can see, MobiTV is a success story in every which way. However, its founders are wary of the fact that mobile TV is fast becoming hugely competitive and they constantly strive to keep their standards really high. Last year, we saw both AT&T and Verizon joining hands with Qualcomm MediaFlo to launch their own mobile TV service – named AT&T Mobile TV and Verizon VCast respectively. This apart, local TV stations are also planning to enter the mobile world by offering live TV to mobile phones through standard TV signals. So, it is not going to be a smooth ride for MobiTV for sure.

Categories: All things mobile phones, Mobile TV.

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Yet another interesting report on mobile advertising

Media analyst Screen Digest recently released a report on mobile advertising which brings out some interesting points.

The report emphasizes that mobile advertising is still in its nascent stage and will grow rapidly in the next few years. However, this is something we’ve all been told about mobile advertising for quite some time now. So, my focus is on two points which I thought stood out from the rest.

Mobile TV will be the major revenue generator as far as mobile ads are concerned. However, it needs to have its own set of metrics in order to be considered an important advertising medium by advertisers. While mobile TV is touted as the next big thing in mobile advertising by many, people need solid data to assess how effective the ads have been and to calculate the ROI. This, I think, is a valid observation.

By 2012, ad-funded mobile games will become hugely popular and over 60 million of such games will be downloaded per year. That is a huge number and should give a lot of hope to mobile advertisers. In my opinion, ad funded mobile games are a great way to reach users without actually ramming ads down their throat. We’ve already seen some examples like product placement in mobile games which have been quite successful in sending a subtle message to viewers through strategically placed ads within the mobile game. However, the report also says that such mobile games will not be the major source of revenue. Even then, I think mobile based games and other such content are a great way to interact with customers which can popularize the brand well.

Categories: Cell Phone Advertising, All things mobile phones.

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A look at the growth of mobile TV worldwide

I’ve discussed the concept of mobile TV a lot of times in this blog and ever since Verizon and AT&T launched their mobile TV service, I see a lot of debates going on in the internet and people taking sides for or against mobile TV. Just so you know, this concept doesn’t start and end in the United States. It’s a global phenomenon and let me broaden the horizon for you.

Italy, which is considered one of the most developed mobile phone markets in Europe, is also the leader when it comes to mobile TV in Europe. There are a dozen channels available in mobile TV in Italy and there is a loyal user base of more than one million subscribers who pay 19 Euros every month.

In Switzerland, there is a 100-second news broadcast on mobile phones and it is very popular with mobile users there. There are more than 40,000 people who watch this TV news broadcast in their mobile phones every day. People here can get up to 20 channels in their mobile phones and they pay around 13 Swiss Francs every month.

Japan is the undisputed leader when it comes to mobile TV. There are around 20 million mobile phones in Japan which are equipped with TV receivers. South Korea, another market leader in Asia, has more than 8 million mobile phones equipped with TV receivers. India, with more than 250 million mobile users, has also shown a strong inclination for mobile TV and is considered a potential market in the near future. Thanks to these markets, mobile TV in Asia is growing rapidly and is miles ahead of the U.S. market.

This apart, countries like Britain, France, and Germany have plans to start mobile TV service this year.

Do you see the complete picture? There are people all over the world who pay money for mobile TV and it’s considered one of the most successful revenue-generating services for operators.

So, in my opinion, mobile TV will not remain a niche service in the U.S. for long. I think it’s a pretty useful service for people who are always on the move and it will find its takers eventually. Also, with mobile advertisers eyeing mobile TV, we could soon have free, ad-supported TV on our mobile phones, just like television.

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

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Will AT&T buy EchoStar to offer mobile TV services?

While Verizon and AT&T caught our attention in the FCC auction, EchoStar is one company that went unnoticed. It bought 168 E-block licenses at a hefty $711 million. This has created a buzz in the market as a lot of experts think that EchoStar will try to offer mobile TV services more effectively than ever through Sling Media.

It’s a well known fact that SlingPlayer Mobile, introduced by EchoStar, has become quite popular and by acquiring a considerable number of licenses in the E-block spectrum, EchoStar might plan to broadcast its service in a better way.

Now, here’s the scoop. Another hot talk in the market is that EchoStar might not do any such thing, as it might change hands very soon. The buyer? You got it right – AT&T. This is almost a certified rumor which has been going on for ages now, but there is one thing which makes me think it might not be a rumor after all. AT&T has decided to hold off on its mobility services. Now, this sounds too preplanned to be a coincidence. After all, acquiring EchoStar will make AT&T strong in all three sectors – broadband, mobility, and TV.

So, will it happen? Your guess is as good as mine. But one way or the other, we can be sure of one thing. Mobile TV, soon, will have a very big market not just in the U.S., but around the world.

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

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