Editor's View
Something in the air
Platform: Mobile | Author: Alex Farber | Source: nma.co.uk | Published: 08.01.09
Apple aficionados were left a little flat by the lack of earth-shattering news from this week’s MacWorld, but the iPhone music announcement could have significant repercussions for mobile.
The latest ability for iPhone users to download tracks from iTunes over the air (OTA) is, on the face of it, nothing new. After all, operators and, latterly,
...... handset manufacturers and publishers have offered consumers digital download stores for years.
But they haven’t been that successful. Offering OTA access to Apple’s well-understood and slickly designed iTunes Music Store could be an important milestone in driving both wider awareness and sales of digital downloads for its peers.
The Apple spotlight often shines with a halo effect. Once consumers see iPhone-touting friends buying and downloading music OTA, they’ll want to as well. Okay, the experience might not be as slick with competing services, but the end result is the same.
It took Apple’s entrance into the mobile applications market to generate renewed interest from consumers, publishers and advertisers in the format. Somewhat embarrassingly, Apple generates more application downloads in a day than many competitors manage in a year. But the popularity of the App Store has led to a resurgence in demand for mobile apps and the story could be repeated with music.
Of course, fully opening up the à la carte iTunes model could be superseded by the range of ad-funded, on-demand music-streaming applications coming to market. But that’s a different column.
Set for success - 18.12.08
This year has seen the mobile channel grow up. A rush of landgrabbing activity from publishers and mobile ad sales houses early in the year has stabilised into a pubescent market. It will kick off next year with a solid foundation of mobile sites and advertising opportunities.
Despite the proverbial ducks all facing in relatively the same direction, I don’t expect any mobile miracles in 2009. No one talks any more of a killer app and the mythical ‘year of mobile’ phrase is mainly trotted out ironically. Realism - no bad thing when it comes to building and funding good businesses - has kicked in.
I hope to see a wider range of companies learn from others’ experiences and start to offer consumers access to services wherever they are. Take-up will continue to grow in line with new services, consumer education and device penetration, but is unlikely to hockey stick, with the same true for mobile ad revenues. But this is positive: the market is evolving at a sensible, sustainable pace.
It seems that brands and publishers realise investing in mobile is worthwhile because the expenditure is relatively small for a potentially great reward. As a channel, mobile must not be ignored, and as increasing numbers of consumers use ever more powerful phones to access richer services, the need for a brand or publisher to have a presence in the emerging space grows.
It’s vital that mobile continues to innovate and offer unique services, as well as cross off some elementary basics, such as measurement and search.
2009 is set to be a year of continued groundswell.
Coming of age - 11.12.08
The mobile internet is becoming an increasingly enjoyable place to be. Mobile sites today are fast approaching the level of design and innovation to be found on the fixed-line web.
This week saw News international relaunch The Sun's mobile site, with News of the World and Times Online set to follow. And it looks great, as did last week's Mirror mobile site launch. Our regular mobile site review in the magazine has been increasingly positive about mobile site launches. It only seems yesterday the mobile internet was regularly mocked, with clunky, poorly designed sites justifying this ire.
However, we're not quite there yet. While new mobile sites may be greeted well in the new media age office, they're never perfect. Our reviewer last week pointed out the undistinguishable clickable links on the Mirror site. So often on sites you come across basic design issues such as a lack of back button or poor navigation.
There really is little excuse for this today. While mobile sites are increasing in complexity, they're still nowhere near that of full website. Website analytics is a booming area online, delivering huge benefits for site owners. This level of rigour is yet to applied to mobile. As mobile internet users continue to boom and advertisers jump onboard, even higher standards of design and usability need to be applied. Consumers are far less forgiving of a poor experience on the smaller screen of a mobile phone.
Hopefully the increasingly trend of mobile divisions being fooled into overall digital departments, as with News International recently and Yell this week, in conjunction with increased pressure on budgets, won't stymie this development.
By Justin Pearse, Alex Farber is away.
Open all hours - 04.12.08
The last brick in the walled garden concept crumbled today with Virgin Mobile's decision to allow subscribers from other networks onto its portal.
It makes perfect sense to open up at a time when all publishers are frantically bidding to grow traffic.
Rival operators, which continue to illogically cordon off their portals, talk of wanting to protect the consumer experience. But they're adapting their own content for such a variety of (cross-network) phones and browsers anyway the writing is surely on the wall for preventing open-access across their own portals.
Imagine an ISP such as BT or Sky building an online portal which can only be accessed by its subscribers. AOL tried it in the dim and distant past but it doesn't happen any more - the web has matured sufficiently and there's no business case for it.
Graeme Oxby, Virgin Mobile MD, told me the innovative move is designed to drive the use of Virgin Media's newly integrated and exclusive content services.
Oxby is eager to build brand engagement with consumers by encouraging them to spend more time using their phones. He wants to up-sell 'glove-box' consumers to become those who rely on their Virgin Mobile phone or portal to respond to emails, keep-up with sports scores and update their social network status.
Other operators would do well to follow his example. After all if you're a loyal Virgin Mobile portal visitor it cushions the blow when you subscribe via Orange.
Scale down - 27.11.08
News that ad-funded MVNO Blyk has been forced into making a round of redundancies hopefully does not point to wider malaise within the industry.
Blyk's health is a good indicator as to the state of the wider mobile advertising market. The news it's shedding an as yet unspecified number of staff is not a positive sign.
Shaun Gregory, Blyk's UK CEO, maintains its 'receive targeted ads in return for free SMS and voice calls' business model is proven both by the investment it just secured (£33.7m), number of campaigns run (around 2,000) and subscribers (200,000). He adds Blyk is merely replicating what is happening in the wider market and increasing efficiency by going through a restructure and round of job losses.
However, nma is yet to hear of significant job losses within the digital ad industry with top agencies claiming to be in good, if not extravagant, health.
It's true Blyk was, with 60 UK employees, heavily staffed for a start-up but its cuts support anecdotal advice suggesting some mobile ad campaigns are being delayed.
In its emerging state mobile advertising is constantly at threat from any potential marketing budget cuts. We've already heard from operators O2 and Vodafone that they're looking to exploit wider ad opportunities, from their DM to their shops, in part, though not exclusively, due to the failure of mobile advertising to live up to expectations.
Jonathan Mew, the newly appointed head of mobile for the IAB, reasons that brands will continue to invest in mobile because any marketing savings made would be negligible particularly when offset by the loss of lessons gained about the emerging new platform.
And in her column in nma next week (4 December), Jessica Sandin calls for businesses to continue to innovate to ensure they remain nimble and dynamic in difficult times
By shedding some numbers, Blyk will hopefully return to operating efficiently and be better positioned to charter what hopefully becomes tougher waters but not a drought.
However, many are holding their breath for next year when there are concerns the sector could be harder hit.
Customer insight - 20.11.08
Operators are no more recession proof than any other companies and right to be taking a renewed look at potential advertising opportunities.
It has emerged this week that O2 and Vodafone are each sizing up their potential inventory with a view to extending the available ad opportunities to advertisers. They are in the rare position of having access to frequently opted-in consumers in-store, on mobile, online and increasingly as ISPs.
Mobile advertising while a valuable new and still growing revenue stream has not yet rapidly climbed to the giddy heights projected by analysts. This is mobile with all the hype that comes with it after all.
But that's not to say that operators are giving up on it - or that it hasn't acted as a valuable toe in the water.
After all, two years ago operators hardly knew the likes of Google, Yahoo, BBH, AKQA, MediaCom, OMD and Carat other than as a client, but now the relationships are much more dynamic as all the operators are relatively established media owners in their own right.
If they're to extend this early success and challenge the massed ranks of established media owners such as the News Internationals and ITVs at their own ad game then they must use the one advantage they have - the level of customer insight they sit on. Otherwise they risk fading into anonymity on a media plan.
It's been a long time source of much frustration that operators sit on vast amounts of data. Deep in their systems is a wealth of constantly updating data about subscriber habits. Their recent extension to become ISPs further bolsters this. In the privileged position of being a start up with no legacy systems to hinder it MVNO Blyk has done a good job of segmenting this data to offer it to advertisers. It's lead must now be copied by the rival operators who have the added benefits of enormous reach and lots of different channels at their disposal.
It's early days and not only are infrastructure-led telecom providers culturally a million miles away from funky media owners they want to be, they're also enormous tankers trying to change course.
But real opportunities do exist.
Of course the other vital consideration is that the consumer experience must not be damaged. No-one likes to be bombarded with ads having paid for a premium service, particularly in such a fiercely competitive marketplace. Churn remains a four letter word.
Too many cooks? - 13.11.08
Sky's decision to sell advertising around its own inventory across the operator portals could kick start a confusing trend (nma 13 November).
It's a rare state of affairs that will hopefully boost the market in the short term by allowing the broadcaster to convince its great existing advertising clients to move to mobile.
The other benefit according to Sky is that it reduces the number of buying points for an agency. So far so good.
But if rival content providers now line up for similar deals, to sit alongside each operator's existing exclusive ad sales house it could create a more fragmented value chain.
One major online portal owner commented that while Sky might appear to be offering its advertisers a simpler buy the reverse is true for an advertiser looking to buy portal-wide deals.
Taking the model to its extreme the industry could find itself in a position where operators' sales houses become disintermediated to the extent the amount of inventory they can offer is tiny and any advertiser looking for some serious portal presence will be forced to negotiate a number of deals - with several buying points and a complicated media plan.
On mobile where subscribers are generally handcuffed to initially accessing their operator portals, today's situation of just five buying points (one for each operator) might not look so bad after all.
Convenience stores? - 06.11.08
It's yet to be seen if the recent explosion of mobile app stores will baffle or encourage consumers.
The launch of Google's Android phone and its supporting App Market is the latest mobile store following Apple iPhone's App Store which claimed 10m downloads in its first weekend. Both offer consumers simple ways to find and transfer useful apps onto their phones.
They join rivals including the Nokia Download Store, Motorola's film site, built by Saffron Digital, with yet another rumoured to be en route from Microsoft.
Each is simple, slick and well stocked, but sadly completely siloed from others. There is a danger the market will stall as consumers become confused by the wealth of walled garden options as the market matures.
Finally this week digital music retailers have decided to promote a universally recognised 'MP3-compatible' logo in a bid to drive sales of the DRM-free format. The music industry is keen to offer consumers confusion-free convenience (nma.co.uk 04.11.08).
Of course it would be much simpler if an MP3-style standard existed on mobile allowing developers to write one app for every phone. That's not happening soon due to the ongoing differences between rival phone manufacturers' platforms, screen sizes and individual handset power so each legitimately pursues solo stores.
And these stores have helped solve discoverability and usage issues which have traditionally plagued the apps market. But as time goes on a walled garden sales approach could be damaging as consumers, who switch phones and simply don't know where to go next. Equally a more open market encourages browsing and downloading.
A question remains as to whether separate stores will aggravate consumer confusion or a convenient one-stop shop service will eventually prevail.
Extended offer - 30.10.08
Handset sales have only just started falling but Nokia is already preparing to shift its marketing to promote its wider content services.
The Finnish device manufacturing giant is to launch a massive through-the-line campaign to promote its Comes With Music service during hit TV show The X Factor this Saturday (nma 30 October). The innovative, pre-paid subscription service gives consumers unlimited access to music for 12 months. It's being billed as a flagship service with Nokia well aware it needs to look to other revenue streams as consumers upgrade phones less frequently.
Other handset manufacturers take note. We've already witnessed the waves made by Apple's iPhone, heavily supported by a neat marketing campaign showing off its multimedia and data capabilities. But this is a high-end piece of kit. The rival manufacturers have a much wider potential customer base to educate.
Rival manufacturers including LG and Sony Ericsson are each preparing unlimited music services. And most new phones can access popular data services such as operator portals and social networks, act as music and games players or be used to upload pictures to the web.
The operators do a sporadically good job in promoting their data services.
Likewise content publishers, with advertising for mobile services.
In the face of falling sales, longer contracts with rarer upgrades, handset manufacturers should now weigh in to demonstrate the rich array of data and content services their phones can handle.
They have the opportunity to increase loyalty to their brand, drive revenues by cross-selling products and increase the size of the content market to the benefit of all.
To date, handset manufacturers have largely based their marketing around phones' looks, photo or music playing ability. But richer services must start to appear in marketing drives along with the increasingly wide array of content services offered.
Pre-roll solutions - 23.10.08
Mobile video pre-roll ad spots are back on the potential shopping list for brands following fresh decisions from operators 3, Vodafone and Orange.
The operators have respectively appointed sales houses 4th Screen Advertising, Yahoo and internal teams following the exit of Rhythm New Media in August. A great opportunity lies in re-purposing existing TV ads, which are suffering from a decline in viewers for mobile. In the short term it's unlikely brands are going to commit to develop costly bespoke pre-rolls dedicated to mobile.
But if the format is to reach this stage the industry must tackle a number of issues. Brands and creative agencies question how impressive or effective a TV ad can be when viewed on a two inch screen. Creative must therefore be cleverly edited at the very least.
Then there's the issue of interactivity. Mobile needs to play to its strengths and engage consumers by introducing technology such as being able to click through to a site during or after the ad.
And the value chain, which currently remains long with an operator, sales house, platform provider and content owner, must either shorten or its members must learn to curb expectations.
Much can be learned from RNM's first stab at the format. It succeeded in educating potential brands and producing a series of case studies to help recruit new business. It also signed up a raft of strong content providers and highlighted some flaws such as the inability to run a 100% free-to-consumer model. Accordingly 3 and Vodafone plan to tweak the ad-funded model to include subsidised clips, costing up to 50p rather than making all content free.
To date pre-roll has largely attracted the attention of TV buyers which handle the distribution of the traditional ad content onto the new mobile platform.
If pre-roll is to succeed though it must make its way into cross-platform sales deals.
Service levels - 16.10.08
Educating consumers about what phones can do is vital but only if the available services are up to scratch.
The iPhone ads set the bar by showing off a phone's features so simply that even your mother gets it. This is an approach now being replicated by rival online campaigns rolled out this week from O2/Sony Ericsson and Vodafone/Blackberry. Mobile marketing execs are right to break down the functions of phones as they become more complex.
But the industry must go beyond education if it's to sell mobile content. This week a new survey by Entertainment Media Research (EMR) showed direct-to-mobile music sales have slumped by 5% year-on-year (nma 16 October).
Less than 10% of consumers bought a track via their mobile according to the study, down from 14% the previous year.
Mobile content and services are used to steady growth from small bases, so any news of small figures in decline must act as a serious wake-up call.
Unlimited download services such as Omnifone's Musicstation, Nokia's Comes With Music and Sony Ericsson's PlayNow will undoubtedly generate interest as they're so innovative. But they're unlikely to prove wildly popular outside of a small group of young, early adopters. This is underlined by the relative failure of online subscription services such as Napster to gain serious numbers.
Speaking with Russell Hart CEO at EMR he put the decline down to a variety of factors including the DRM restrictions which continue to cripple music bought on mobile and the boom in accessible online music destinations.
As the boundary between online and mobile continues to blur, propelled by phones such as the iPhone, the mobile industry must learn to offer services which compete on a par with online rivals before it worries too much about marketing them effectively.
Gentle revolution - 09.10.08
In his book Here Comes Everybody Clay Shirky recognised that revolutions don't happen when technology is introduced but when it becomes ubiquitous.
Mobile has indeed achieved total saturation but use of content and services haven't followed suit. This has meant we're yet to see the fabled 'year of mobile advertising' revolution.
But O2's prediction that mobile marketing spend is to grow 150% over the next five years seems entirely feasible so long as the channel helps itself to grow (nma 9 October).
The opportunity lies in generating new spend from the thousands of clients yet to experiment. Of course mobile will never be relevant for all. Speaking with Ameet Chandarana, head of digital from digital agency RPM3Beechwood, an agency which prides itself on developing marketing sites that double as useful resources, he made it clear mobile still ranked alongside social networking as a nice-to-have rather than an essential.
But he also made the point that clever spend in the right channels allows a brand to punch above its weight. So TV might not be right for all brands where mobile can potentially deliver an effective alternative.
In order to take full advantage mobile must ensure it overcomes the ongoing hurdles of education, fragmentation and usability.
If it fails then the platform will never become ubiquitous and any potential revolutions will be stifled before they can even begin.
Simple offer - 02.10.08
The unveiling of three super ad networks in the online display market should have serious repercussions for mobile advertising.
AOL, Microsoft and Yahoo each offer mobile display opportunities as a part of their huge arsenal of products. They're all bidding to simplify the buying experience for advertisers which want to use all parts of their offerings - including mobile.
And between them, these super networks control some serious mobile inventory; Hotmail, Planet 3, Vodafone Live!, Facebook and Flickr.
The challenge now comes in making sure mobile doesn't get lost in the pile of other opportunities such as affiliate, ad exchanges and behavioural targeting. A lot of responsibility lies with the one point of contact each network assigns a client to ensure they clearly communicate what's a broad offering.
While each has owned a mobile division for some time, respectively via Third Screen Media, Screentonic and Connected Life the way in which these companies are now bidding to consolidate their various offerings into one package could be the shot in the arm the mobile advertising market needs to take it on to the next level.
Relatively the industry has come pretty far in a year, although of course it's still not big enough for many. But having raised its head above the parapet of many media plans it now has the opportunity to turn this foothold into becoming an ongoing part of any media spend.
Putting the available mobile inventory in front of advertisers in a way that makes it easy to allocate budget painlessly and effectively could well spark a second evolution.
Wake-up call - 25-09-08
Google Android has generated a healthy dose of speculation, both positive and cynical, but ultimately it should prove to be another wake-up call for an underachieving mobile industry.
Another outsider, following Apple's lead, is set to shake-up the boundaries of mobile. In Android's case, it's by providing developers with an open development platform to create rich apps and services.
The excitement generated by the launch of both Android and the iPhone shows the extent to which developers are currently hobbled by existing phones and platforms.
Of course Apple and Google are arriving relatively late to the party which means they've not only the benefit of hindsight but also a blank page. Incumbent operators and handset manufacturers have to battle to innovate while keeping one eye on the billion phones they already have in the market, which is a tough balance.
Brands and content companies crowded to the iPhone following its launch, lured not by traffic figures but by an ecosystem which allowed them to develop apps which they could be proud of. It's likely that Google's G1 phone will offer a similar opportunity.
Simon Ainslie, UK MD for Nokia, told me the two devices he feared most were the iPhone and the Blackberry because they do the jobs they're supposed to do extremely well. Nokia's broad customer base means this challenge is tougher but following its acquisition of operating system Symbian and longstanding device expertise, it's something it could pull off.
And the runaway success of the Apple App Store proves that subscribers would love to be offered a range of 'killer apps'. To reassert themselves and start marketing innovative, must-have phones again, handset manufacturers must start to provide tools for developers to create compelling services and, critically, make them available in an accessible format.
Growing confidence - 18.09.08
Broadcasters and brands should rush to take advantage of the new opportunity opened up by a cross-network service from the operators that's been many years in development.
O2 has joined its operator rivals and enabled voice shortcodes for the first time, allowing companies to advertise one five digit number which consumers can either text, MMS or call at a fixed rate. No more 'calls from a mobile' grey area in the T&Cs need exist. This is vital for an industry desperate to regain the confidence of consumers.
Few consumers can be happy about calling a premium rate number which will cost an unspecified amount. Not only that but following the issues the broadcast industry has gone through with votes scandals and fake winners any interactive area which costs consumers, but isn't precisely spelled out is a potential PR disaster.
It's refreshing to hear of TV chiefs getting together to make sure they're interpreting regulations correctly and consistently (NMA 11.09.08). We now have an example of the telecoms industry moving together to help out.
It's rare for operators to successfully work together on anything, so when they do the opportunity should not be missed. SMS was one cross-network service which rolled out effectively. That went on to be hugely successful resulting in millions of pounds of previously untapped revenue for operators.
It's unlikely voice shortcodes will have quite the same impact but they could yet help broadcasters regain some revenue and eliminate a further grey area as they bid to reintroduce services.
Moving target - 11.09.08
Consuming video on mobile took a step forward this week with a partnership between the BBC iPlayer and Nokia allowing consumers to access the service via mobile handsets.
Initially limited to the high-end N96 it's to be extended further down the range and to other device manufacturers including the iPhone which has had a beta version available since March.
The launch flies in the face of poor streamed mobile TV take-up figures revealed by the BBC Trust in July with a peak of 580 viewers accessing per day. But BBC mobile controller Matthew Postgate hit back by asserting that the figures were misleading as they represent an average high across all BBC channels available rather than the maximum users to the most popular stations.
And Postgate is rightly confident that long-form VoD services could also prove popular. As I've written before, VoD remains a compelling proposition for both living room TV viewers and particularly those accessing content via their mobile. It fits into people's time-poor lifestyles.
Long-form VoD content on mobile, as provided by the iPlayer, is still emerging but with moves from a range of companies including Sky, Motorola, Paramount and T-Mobile to improve both choice and functionality it's set to become more mainstream. iTunes' massive catalogue of full-length shows and movies has already proved people will consume long-form content when they're on the move.
There's no reason why it shouldn't also succeed for mobile. Offering brands viewers are familiar with, such as Sky's football coverage or Paramount's blockbusters attract attention. Hit BBC shows such as The Apprentice or Planet Earth fit this bill.
If consumers really do want the option to consume content on-demand and across multiple platforms as broadcasters lead us to believe, then there's no reason why iPlayer Mobile shouldn't succeed.
New battle lines - 04.09.08
Vodafone is right to decide to put more emphasis on its online site.
Aside from Orange, which inherited its portal from Wanadoo, and Virgin, the operator sites remain lacklustre efforts with little reason to visit.
Vodafone's decision to prioritise its online offering will hopefully invigorate the market and lead to some useful, immersive sites for both their existing mobile subscribers and emerging ISP customers.
After all, these are companies which spend millions on their marketing only to direct consumers to a site about as inspiring as an electricity supplier's. There is massive room for improvement with a very real opportunity for the operators to boost customer loyalty, strengthen cross-platform content partnerships and even drive some online ad sales.
Already this summer NMA has revealed an online ad trial from O2 and new landing page for 3 mobile broadband subscribers which is surely ripe to develop into a fully fledged portal. It seems the catalyst to effect these changes has been the advent of the operators' broadband services. 3 and Vodafone are aggressively pushing their dongles and O2 has Be, its fixed-line broadband service.
Any ISP provider needs a relatively good landing page experience for its subscribers and while it has been difficult for these portals to compare with the likes of AOL, MSN and Yahoo! it's important to build a true cross-platform strategy.
Operators, while fundamentally simply network providers, have grown content teams and have a reasonable amount of experience of running [mobile] portals with decent traffic. They must take these skills cross-platform to meet customer demands or risk being outmanoeuvred by more cross-platform savvy rivals.
The operator war could be kicking off again in a whole new online battleground.
Converged times - 28.08.08
News International has been a trailblazer for mobile content so its decision to merge its mobile business with its online department could yet spark a trend.
The decision has been taken for two reasons; to save costs and create a more effective offering, neither of which can really be knocked.
To date, mobile has required dedicated teams to set things up. Developing a decent experience requires expertise as does striking distribution deals with operators and evangelising a product internally.
But once these tasks have been completed a question mark hangs over the feasibility of running a completely separate team long term. And rightly so - we live in converged times when consumers expect a similar experience whatever the platform and merging divisions often helps to make that happen.
It's an evolution that's already far advanced online, with content owners steadily rolling editorial and commercial teams together to handle both digital and offline media. There's no reason why mobile shouldn't feed into this ecosystem once it's found its feet.
Which long term is a positive development. While it might mean more streamlined teams it will ultimately result in a more sustainable channel which sits at the same table as other media channels. It should mean faster content and product updates and bigger ad deals.
Homeward bound - 21.08.08
It's a shame that ad-funded video content provider Rhythm New Media (RNM) has fled the UK for the safety of its US base.
The company has withdrawn from the UK despite having secured solid deals with a range of operators and content providers that other companies would love to have signed.
RNM says it's opted to shut its UK operation in favour of focusing on its domestic US territory.
It's decided it simply isn't worth investing the time, effort and resource in the UK market if you have bigger fish to fry in the US.
Although off to a somewhat slower start than the UK in terms of mobile internet usage, it seems that adoption in the US is soaring. And there's no denying the potential opportunity that exists across the pond in sheer scale of audience. MobiTV, the US mobile TV provider which has deals with 3 and Orange, opted for the same route in April 2007 (NMA 26.04.07).
It begs the question whether US-based small to medium sized companies will bother investing in the UK. That's a good thing for UK-based rivals but not such a positive in terms of innovation and healthy competition. Fortunately other US-backed operations such as ad networks AdMob and AdInfuse seem committed to Britain.
Whether RNM backed out too soon remains to be seen but it has certainly left a reasonable sized gap in the market others will be lining up to fill.
All about inventory - 14.08.08
Online ad network Accelerator has been given the best possible leg-up into mobile through its partnership with AdMob (NMA 14.08.08).
The decision to work with a partner like AdMob, which has a huge amount of inventory, instantly gives eType’s sister company scale to sell. Other online networks, such as Advertising.com and Unanimis, are valiantly attempting to gain traction in the space but it’s tough going, with limited inventory. And they’re overly dependent on their online publishers rolling out mobile versions of their sites which then become popular.
Following the deal, the Accelerator ad network will instantly be able to offer advertisers access to a huge amount of inventory. And while AdMob claims to lead the pack, other off-portal ad networks including AdInfuse, Millenial and YOC are starting to grow.
While sales houses such as Microsoft, Screentonic, Yahoo! and 4th Screen tie up deals with the chief portals, it’s sensible for canny sales networks to get an instant injection of inventory.
Expect AdMob to continue to tie up with sales networks on a territory-by-territory basis throughout the world as it works towards becoming a powerful global network.
Poor support - 07.08.08
Entrenched ad serving platform DoubleClick's announcement that it's to offer agencies a mobile platform to manage campaigns should come as a relief to those grappling to deliver campaigns.
While researching a feature on mobile planning/buying, which appears in NMA this week, the level of frustration felt by media agencies about the space was clear, and this has a direct impact on the level of client spend.
Planners' complaints ranged from a lack of available data, which the GSM Association, led by Henry Stevens is working with the operators to provide, to practically deliver campaigns and getting timely and accurate reports back.
This low level of support for planners, who are a notoriously scientific bunch, is unforgivable. They comprise the brain of the ad industry and without their support no client will spend much on mobile. Fundamentally they require the operators, which still control the bulk of traffic and user data, to become much more transparent and think more like proper media owners. If that's what they claim to want to be then they must act like it.
A lot of scepticism exists as to whether the operators will even be prepared to collaborate with each other under guidance from its own association the GSM to provide broad traffic data. But if it can't even deliver this top line measurement quickly then there's little hope for mobile advertising to become anything more than a flash in the pan .
Sir Martin Sorrell, CEO of WPP, himself has complained that the operators have so far failed to work together. He might yet be their biggest customer if they'll let him.
Small crowd - 31.07.08
Unwittingly the BBC Trust exposed that viewers really don't want mobile TV this week.
As part of the BBC's submission to the Trust on its plan to continue to simulcast its content to mobile following its 12 month trial, the Trust released the first actual figures I've seen for mobile TV take up. And it made for bloody depressing reading.
After years of industry hype, the extent to which mobile TV is being viewed is embarrassingly low. A peak of just 580 unique users with a paltry 13 minutes of BBC TV viewed each month. This is for a service that was in the base package of three of the UK's largest operators; 3, Orange and Vodafone and available to millions of subscribers.
I applaud Orange for releasing its regular Orange Digital Music Index but its lack of mobile TV subscriber numbers and actual viewing time are conspicuous by their absence. There were rumours that Sky signed up 250,000 to its mobile TV subscription package following its launch but these figures are still yet to be confirmed. Two years later.
The problem is three-fold. Consumers aren't used to walking around watching TV in the way that they are with listening to music, which is a much better match for mobile. Secondly we no longer live in a broadcast (simulcast) world and no-one less so than the early adopters and kids the operators are trying to attract to mobile TV services. Finally the quality of mobile TV over 3G is terrible.
Operators and broadcasters should stop wasting time and money on mobile TV. Their best bet is to focus on video-on-demand (VoD) which has a much greater potential. As T-Mobile has plumped for with a great new service it has launched with Saffron Digital this week, enabling people to view content purchased over mobile on the internet.
Being able to stream or download content of your choice instantly, or side-load it iTunes-style for later consumption makes a lot of sense.
We live in an on-demand age. No-one wants to catch the last six minutes of Jeremy Kyle or tune in right at the start of the ad break.
Mobile VoD ad companies such as Rhythm New Media have realised this early and are successfully working to bring together content providers and advertisers. They release figures.
Filling a gap - 24.07.08
Mobile data is a billion pound annual market, according to Vodafone Group's latest results, but the catch is that this is driven by dongles.
The operator grew its 'mobile PC connectivity devices' business by 105% year-on-year with 6.7m group customers now connecting to the internet via Vodafone.
While mobile internet figures are conspicuous by their absence, the success of mobile broadband is likely to have far reaching repercussions. Operators such as 3 and Vodafone have spotted a gap in the market for consumers with no land lines who want the flexibility of short-term pay-as-you-go internet connectivity.
As the new business accelerates operators, in their move to becoming ISPs and portal owners, must ensure that they provide a good advertising experience to avoid becoming dumb pipes.
The knock-on effect of this should be to quickly get their ad serving solutions up to par.
As part of a mobile planning/buying feature I am writing for NMA 07.08.08, I've discovered agencies are crying out for publishers, and even more so operators, to start acting more like media owners when it comes to mobile advertising.
They demand consumer stats, targeting, ad serving and reporting. If you're selling something then you must make it attractive and simple for the buyer. The sudden and impressive growth of dongles should make operators re-think and fast-track their advertising plans.
Participation TV - 17.07.08
The mobile industry is on the way towards successfully overcoming its most recent scandal as life returns to premium-rate TV voting.
It's moved on from the Crazy Frog subscription service fiasco and last year's premium-rate services nightmares. ITV's decision to launch Interactive Telephony (ITL), an internal division dedicated to premium-rate services, proves it's over its latest round of growing pains.
The effort and resource put into the launch of ITL is proof of how important interactivity is to both broadcasters and viewers. It's easy for critics to dismiss TV voting but speaking to those across the business highlights just how much consumers enjoy participation.
Mobile's role as a key channel for interactivity between content owners and their audience still has a lot of potential and is emerging in more robust shape ready for further innovation.
However, such an emerging industry shouldn't get complacent and lessons must be learned from the TV voting scandal.
The under-regulated premium-rate services were an accident waiting to happen and mobile bosses should be investigating other potentially damaging areas, in a bid to avoid similar scandals, which could have wide repercussions for all.
It's disappointing to still read scandal stories about ludicrously high content download charges, which are jumped on by the nationals and undoubtedly sink, sadly, into the public conscience.
Easy access to adult content is another issue that should loom large in the industry's rear view mirrors as youngsters steadily upgrade onto more powerful web-enabled phones.
Organisations like the MMA, which issued its latest code this week, and regulators such as PhonepayPlus, which today unveils tougher measures around mobile content marketing, are being proactive but must keep potentially problematic issues on their radar.
And the convergence of services from TV, gambling, social networking, search and ad networks onto mobile means that regulators from all areas will have to start to focus their attentions on the platform.
No-one wants heavy regulation stifling growth in the sector, and to date the mobile industry has come through its hiccups relatively unscathed. But testing times still lie ahead.
Staying connected - 10.07.08
The second coming of the iPhone may have 3G connectivity, but there's nothing the famously user-conscious Apple can do about unsuitable mobile networks.
As part of the latest iPhone launch tomorrow Apple will also launch an App Store to allow consumers to buy maps, games and other services over the air (OTA). The store is the first move by Apple to drive its own revenues from the iPhone.
But its fans, who love all things slick and user-focused, are set for disappointment when the 3G connectivity fails to deliver the seamless experience they've grown used to online.
3G is a pain. Connectivity is often unreliable and pages and content frequently fail to load properly. Purchasing content can also be hazardous as it's often unclear whether the confirmation has actually registered.
The congested 3G networks, which are made worse by the growing popularity of dongles for laptop wireless internet access, are unlikely to offer a compelling experience anytime soon, in spite of the network upgrades and operator network share agreements.
In an integrated world there should be no lag, which is one reason why the reliable and speedy SMS works so well.
Of course these are issues that have been encountered and accepted by the traditional mobile handset manufacturers long ago. However, Apple and its users are less likely to tolerate them, especially on their stylish iPhone.
When compared to 3G, other technologies such as Wi-Fi and sideloading become increasingly attractive as they offer robust, dependable, fast internet connections. The danger for operators is that these methods cut them out of the loop as data pipes.
It will be interesting to see whether iPhone users continue to rely on sideloading as their iPod counterparts do, or whether they swarm to the Apps Store and risk suffering the 3G lag.
Making an entrance - 26.06.08
It's encouraging news to hear that one of the world's largest ad networks, Advertising.com is turning its attentions to mobile, as revealed in this week's NMA.
As the larger online players begin to take mobile seriously, so clients and publishers' interest in the channel is heightened and the platform's momentum gathers. The entrance of these established ad networks is a sign of confidence that the space, while still small, is set for further growth.
But it remains to be seen if the online ad networks will emulate their online success on mobile or whether they will be beaten by more adaptable mobile specific networks.
Admob, 4th Screen Advertising and Nokia are built around the mobile platform. The handset manufacturer has a particularly distinctive advantage as it controls many of the content services that are in its phones, giving it instant reach.
If the online ad networks are to make a success of mobile then they must adapt to the platform. Different techniques such as more specific behavioural targeting come into play as the mobile is a more personal device than a PC which is often shared. And currently the space demands more of a bespoke sales house approach than a network buy.
However, as the sector matures networks could come to benefit from their experience of running broad campaigns..
Speaking to Kevin Cornils, MD of Advertising.com yesterday at the NMA Online Marketing and Media Show 08, he said he was keen to offer mobile as part of the Platform A suite of services. Cornils wants to offer agencies and advertisers a complete full service offering, which includes mobile.
Platform A's efforts are to be applauded but it would do well to follow the example set by online rivals Microsoft Screentonic, Unanimis and Yahoo! by starting slowly with realistic expectations and growing organically with the market.
Innovative thinking - 19.06.08
Nike and Tesco, two of the world's biggest brands, are starting to take mobile more seriously.
The sports company has launched an innovative PhotoID service, by AKQA Mobile, which allows consumers to have the colours from a picture sent in with a camera phone transferred onto a pair of trainers. It's proper user-generated retailing, building its successful online iD operation.
And Tesco is moving towards integrating its Clubcard loyalty scheme more closely with mobile, via Infomedia and 4th Screen Advertising. Brands can buy mobile ad space which offers consumers extra Clubcard points if they go on to buy the advertiser's product in store.
These are both great examples of services that are in turn innovative and practical. If consumers are to start engaging with their mobile for more than just talking and texting, agencies need to come up with ideas that are either fun and unique or useful.
It was also good to see a couple of time sensitive mobile campaigns come through following a previous column pointing to the potential of such services. Puma has a Euro 2008 campaign, produced by Publicis-owned Phonevalley, which enters fans of each team into a conference call as soon as their team scores a goal.
And Archibald Ingall Stretton has devised another campaign for O2 which sends subscribers a voice message from one of the England rugby players following their games against New Zealand.
Both arguably somewhat useless, but certainly innovative.
The set of campaigns are encouraging because they point towards a future for mobile marketing which is both engaging, practical and unique. It's vital that brands push back the boundaries of this still emerging channel to pave the way for more innovation to come.
On the map - 12.06.08
The iPhone has been responsible for generating considerable noise in its short life and could prove to be a boost for mobile mapping in its latest incarnation.
Location-based services (LBS), giving people relevant information based on where they are, has been talked about by the mobile industry for years without gaining any real momentum. It's been around longer than the hype surrounding mobile advertising and mainly because it makes so much sense. Everyone carries their phone with them and so often could use directions or local information.
Apple has plugged a GPS chip into the new iPhone which uses satellites to exactly pinpoint its location. With Apple's typical slick usability, a range of services is now overlayed around this data onto the embedded Google Mobile Map.
With the clout and expertise of these two companies a simple dose of marketing could do wonders for the wider LBS market. Consumers which are made aware of a simple proposition are more likely to begin
A similar step forward took place in the wake of the launch of the first iPhone with companies which had never before considered mobile suddenly becoming increasingly aware of the platform.
Encouragingly it has emerged in recent weeks that Google itself is starting to form a commercial strategy around its Google Mobile Maps, application. It's begun including sponsored links to local business listings as the service appears on its advertising agenda.
And Nokia too is starting to push more aggressively into the sector via its latest digital campaign to promote its embedded mapping service using cartoon characters The Mapsters.
Location-based services, largely forgotten, are looming large back on the map.
Creating a buzz - 05.06.08
A wake-up call for the mobile creative advertising industry fell out of a clear blue sky this week via Honda's live skydiving TV ad.
Mobile agencies need to start matching this creatively rather than just helping brands tick a mobile box and time-based campaigns offer a real opportunity. Aside from location-based awareness, which is regularly held up as a unique selling point for mobile marketing, phones also offer guaranteed immediacy for communications.
Brands can issue time-based calls-to-action and start to innovate in a new direction. Flash-mobbing where groups of people gather randomly for parties relies on instant and viral communication.
Mobile is in a prime position to pull off more brand-led live marketing campaigns. When you send a text message to a friend it's pretty certain it will arrive within seconds. The same is true of mass text-outs albeit with a slightly longer delay. And generally consumers can't resist reading an SMS message the moment it arrives.
The vision and chutzpah of Honda's advert, which showed a team of skydivers spelling out the word Honda while in freefall, was engaging, exhilarating and innovative. Even watching it for the first time a few days later on YouTube I found myself worried that the skydivers wouldn't manage to pull it off.
If the same sort of buzz can be invoked around a mobile campaign then the medium is really starting to prove how original it can be.
Tight margins - 29.05.08
It's still far from clear if consumers are so desperate to access music on the move that they will pay a premium for it.
Mobile's unique selling point is that fans can download music wherever they are, but the case for this model was weakened this week following IPC's decision to pull its full track download (FTD) service from the NME mobile site.
Increasing numbers of mobile phones are music-enabled but the vast bulk of these are used to listen to music sideloaded from PCs according to research firm M:Metrics. It's not surprising as the experience is familiar, reliable and free.
However, operators, publishers and handset manufacturers are still trying to grab digital music market share from Apple. T-Mobile has announced today that it's to start selling entire albums for £6. Despite changes to pricing it's unclear if operators will ever succeed with an a la carte, over-the-air model.
Innovative services such as Rhythm New Media's ad-funded video streaming and subscription services such as Omnifone's MusicStation and Nokia's yet to launch Comes With Music are novel twists.
And as formerly disruptive online music services such as MySpace and YouTube get their mobile versions up and running they will also impact the market.
While the margins involved might be skinny, selling music is a volume game worth doing on mobile. It has value from a branding and commercial point of view.
The music industry is not in a healthy state and as pinning its hopes on online retailers has failed to steady the ship so mobile becomes an increasingly important opportunity for labels.
Consumers will demand choice and if the labels and hopefully the mobile industry can be dynamic enough to cook up a variety of appealing of formats then mobile stands a chance of becoming an important retail channel.
Wake-up call - 22.05.08
BBH deservedly took home a D&AD Yellow Pencil for its work with Lynx for the 'Get In There' campaign.
I've written before that mobile marketing agencies face a threat from established creative shops if they fail to innovate. But I think the introduction of a mobile marketing award into the D&ADs and the amount of coverage the campaign itself and the win have generated should act as a wake-up call to all advertising agencies.
The inclusion of the category at the D&ADs and its worthy winner ought to act as a food for thought for agency bosses.
It need not take a huge amount of investment. After all, each of the deserved UK D&AD mobile nominees AKQA Mobile, BBH and Glue London run light on mobile staff. More importantly is how effective their campaigns prove.
There's no need for agency heads to staff up or acquire mobile specialists. You don't need an army of developers frantically coding for an endless range of phones. There are other companies which can handle that side of things more effectively.
Carat International's current work on a mobile site for Reebok with Inside and Minick is a great example. As is WWAV Rapp Collins's campaign to get a free pint of Strongbow with Incentivated.
It's not just about winning awards and headlines but engaging with consumers.
I saw a great presentation from the head of innovation at BMW of a mobile wheel configurator application sent to BMW drivers in a country where winter wheels must be fitted to all cars by law. The application was sent to a small database of just 400 but of these 30% actually used it to customise their car and went on to purchase BMW wheels.
More ad agencies thinking about mobile doesn't mean others have to suffer but would result in winners all around the industry.
London life - 15.05.08
I went on a whistle-stop trip to Cannes lastweek for MEM and the Meffy Awards but wished I hadn't had to travel so far for it.
It was a well-run show with interesting presentations and a lovely setting but the mobile content industry will benefit from it being in London - which I've just discovered is the location for next year's show.
MEM 2006 took place in Islington Design Centre and was a brilliant, buzzing affair. It got curious crowds through the door to learn about how mobile can help their business. I'm afraid that Cannes felt like the same old friendly faces when I wanted to meet some new ones.
The Meffy Awards should also benefit from being closer to the dynamic UK market. They produced deserved winners but I would have liked a richer shortlist of entries.
Bebo, Eyevibe, Facebook and MySpace should have been slugging it out alongside the eventual winner Flirtomatic for the top Communities and UGC network.
AOL, BBC, Blyk, Diageo, Ladbrokes, Google, ITV, McDonald's, MSN, News International, Paramount, Sky, Tesco, Vodafone, Yahoo! and Yell are just a handful of companies running innovative mobile content or marketing projects that should be entering.
Content providers must always put their sites first. But an awards show would help increase the profile of what's happening for those still on the edges of the industry.
Calculated risk - 08.05.08
Vodafone's decision to give away unlimited data to contract customers leaves it perilously close to becoming a mere bit pipe.
Previously Vodafone, along with the other operators, was selling bundles of data and earning recurring revenues in this way. But with consumers concerned about costs racked up while browsing over their phones it has been forced to reduce the cost to zero.
In the past operators have voiced fears about following the lead set by ISPs and losing out on valuable revenues by becoming simple connectivity agents.
Presumably Vodafone believes it can earn back the revenue lost by luring more consumers online thereby enabling it to sell more content and ads.
But this will only work so long as consumers remain on-portal. While they are likely to land on the Live! portal in the short term as the off-portal sector matures, this position faces significant challenges..
Vodafone's decision to bundle its data costs is the final step the operator can take to help grow the mobile internet and should be applauded.
But try as it might not to become a bit-pipe its decision to offer free internet seems to take it to the edge of a slippery slope.
In the highly competitive mobile market it will be interesting to see if the rival operators follow Vodafone's lead to head off any potential churn.
Feeling left out - 01.05.08
Virgin's decision to hunt for a mobile advertising sales partner is sensible but stark proof that the existing advertising industry continues to fail to integrate mobile.
IDS, Virgin's existing sales house, should be managing its mobile sales too. The same could be said of Orange, which has contracted Screentonic to sell its inventory despite having its own Orange Ad Network. Both operators are in a privileged position by having existing in-house sales divisions and each has indicated they plan to handle their own sales in time. it makes sense for them to start slowly with expert partners. But integration must happen quickly if the mobile ad industry is to realise its hype any time soon.
A strong cross-platform sales team, incentivised to sell mobile as part of its inventory could make a real difference to the market. Orange's latest set of results showing that 2.6m people visit its mobile portal each month should not be ignored. It's already half as many as the 5.9m monthly visitors to its online portal.
Several efficiently delivered and effective campaigns later and word spreads around a media buying agency's other clients.
Until mobile can be sold in a cross-platform manner it is doomed to be ghettoed and won't reach its full potential.
Agressive tactics - 01.05.08
Orange's decision to partner with Facebook and Myspace to promote mobile content resounds so much because it shows how rarely above-the-line marketing of mobile content takes place.
Activity is often funded by the operators which, while wanting to become more involved in content, should not be expected to shoulder the responsibility alone.
Ebay doesn't expect BT to market its services on its behalf. And if it did rely on ISPs it certainly wouldn't have half the amount of traffic it does.
Some industries have woken up faster than others to the potential benefits of advertising their mobile services above the line, which include added brand engagement and interaction.
It's an area that the motor industry has embraced, although all too often responding to a keyword on a poster still simply results in a request for more details to be sent via SMS for a brochure to be delivered by post. While functional it's hardly the most elegant or engaging of methods.
Sadly brands such as Smirnoff and Guinness continue to ignore the promotion of their impressive mobile sites in their arresting TV ads. The result is that consumers remain unaware of what's available.
News International is regularly held up as a shining example due to its 'Paper, Online, Mobile' tagline. More content producers and brands should follow its example. There's no point allocating a small test budget spend to mobile if you're not going to actively drive traffic to see if it works.
With mobile search still floundering dismally content providers must take responsibility for marketing their own mobile sites through their existing channels.
Operators have used web assets to market their services before, notably Vodafone's campaign with its partners including Ebay and Multimap and T-Mobile's early web & walk efforts with Google.
It's about time brands and content providers got aggressive if they want their traffic and ads to grow.
True dedication - 17.04.08
BBC and Diageo this week announced that they are dedicated to mobile. The backing from these early adopters should come as some relief to agencies and operators who have perhaps been guilty of placing too great an emphasis on the future of mobile marketing before it has really kicked off. But the signs are that the classic mobile hype could be justified.
Smirnoff said it was convinced by its initial mobile website trial with AKQA Mobile, and was planning on adding the platform into its ongoing central marketing planning mix later this year. Encouragingly sister brand Guinness has also recently launched a site, built by Marvellous, with the indications that this too could be here for the foreseeable.
Meanwhile the BBC has signalled that it's to finesse its mobile TV service but is very much dedicated to the platform following an extensive 12-month trial.
This follows decisions from Tesco and McDonald's to repeat initial mobile ad trials. The signs are that the brands are beginning to back mobile as they look to integrate it into a multi-platform environment
But there are rumbles that they are doing this in spite of a less- than perfect environment in which to work. At yesterday's Mobile Marketing Association conference media buyers complained about a lack of metrics when buying on mobile.
The onus now falls on the operators to work on this issue effectively to encourage more spend from existing customers as well as new business.
Operators own the data which is so crucial to the success of any site or campaign. One publisher told me that they would regularly receive contradictory usage stats from the operator and their platform provider. Another agency exec complained that each operator reports its figure in a different format.
Much rests with operator association the GSMA's attempt to bring some consistency to mobile metrics, headed by Henry Stevens. Having recently secured the trusted ABCE to audit their findings and discovered that all the operators are capable of delivering consistent results they must see through this initiative to get mobile marketing spend to seriously take-off.
Mobile evolution - 10.04.08
Mobile marketing agencies must continue to innovate if they are to succeed in rivalling established agencies.
The latest campaign produced by traditional agency Archibald Ingall Stretton on behalf of O2 is a perfect example of clever thinking from a company which doesn't specialise in mobile.
The innovative campaign uses MMS messages as a vital ingredient. Entrants are directed to start a 'guestlist', receive a unique code and then encourage as many of their friends as possible to send in their photo via picture message. The images are uploaded to a website and the entrant with the most friends wins a private party at The O2 to see Moby.
The campaign underlines it's not just mobile and digital agencies which are experimenting in the sector.
As mobile agencies attempt to extend their remit and offer a wider range of rich services to brands they must make sure that they are not simply delivering standard services such as mobile sites and SMS mechanics but pushing boundaries that are really going to inject some excitement from the brand and ultimately consumers.
If you want to be viewed as an ad agency then you had better come up with the creative goods.
Simply ticking boxes will not cut it as rival traditional agencies become more comfortable with the format.
To compete mobile agencies must continue to think just as inventively if they want to avoid being used as simple technology suppliers.
MIG is a great example of a mobile company which, through the launch of its digital agency Jigsaw, is starting to push out in new directions. It has already won business from Walkers.
Mobile agencies who are increasingly looking to carve a niche must continue to innovate if they're to gain similar status to the big digital and integrated creative shops.
The skills and technical ability are certainly in place but the danger is that mobile agencies become too focused on the mobile internet and fail to see how it can fit into the context of the wider world.
The O2 promotion is a perfect example of mobile as a rich channel it's a competition that would not be possible to offer as elegantly via any other means.
There is a real chance for mobile agencies to become the creative shops of the future but they must remember to start from innovative ideas and not just strong technology.
Time short - 10.04.08
Everyone likes getting something for free but only if you don't have to wait too long.
Mobile is billed as a medium that gives you something to do when you've got a few minutes spare. No-one wants to be hanging around downloading ads for ages when they could be watching content. Especially with networks that can still be annoyingly slow.
But people like free stuff and separate announcements from 3, Orange and O2, that they have negotiated with record labels to offer their customer ad-supported music, is the icing on the cake. News and horoscopes are fine but some Kanye West and The Kooks videos are great.
But if they are to be successful pre-rolls must be short and arresting. One of the best examples I've seen featured Ford's running dog on the Channel 4 mobile portal. It simply galloped on the spot for a brief few seconds before cutting into the clip. The branding was still effective and shows it's not simply a case of rendering an existing TV ad. But neither does huge expense need to be incurred.
Ads must also be kept relevant and pre-roll experts like Rhythm New Media and latterly Ad Infuse and 4th Screen Advertising have excelled in this space through careful demographic targeting. I don't mind watching an Adidas ad but Nivea is never going to cut it for me. Certainly not in this ad-skipping, PVR-led world.
Pre-roll ads still remain unproven online where even YouTube hasn't adopted the format, opting instead for a mixture of display and clever in-stream overlays.
It's still a young market and both online and mobile ads agencies are learning
But following experimentation it can be a valuable platform for both consumers, content publishers and brands.
Hidden costs - 27.-3.08
Data charges don't get discussed much any more but this doesn't stop them being important.
The industry has moved on to far more interesting topics like location-based services and touch screen technology.
But the fundamentals remain important and comments from Melissa Goodwin, head of mobile for ITV, that consumers no longer care about data charges are not valid in my opinion (NMA 27.03.08).Several scare stories in the press, and a recent (expensive) personal experience streaming too many music videos from YouTube prove that wherever there is unexpected cost there is danger.
People are still scared to press the internet button on their phones because they don't know what it might cost.
The efforts of broadcasters such as BBC, ITV, Channel 4 and YouTube moving properly into mobile to offer a wide range of their available content is great news for the industry. As I've said before, no-one really wants a half-arsed mobile experience. And with more content providers with an array of videos such as BBC, ITV and YouTube offering an ever increasing catalogue on mobile the danger is that the potential costs involved can spiral out of control.
Online video didn't really take off until broadband penetration grew and a reasonable amount of content could be delivered at a reasonable quality. Mobile video's short-form nature means its needs are slightly different but it has to protect its reputation early on and be as transparent as possible.
Getting charged an unknown amount to download a piece of content was something the industry always moaned about but accepted. It was widely credited with stifling the content industry. There was always the belief that after the operators set up flat-rate plans then the off-portal content market would explode and everyone would get rich.
One by one the operators bowed to pressure and did what was asked. Vodafone went so far as to spend £16m telling everyone about it in a slightly bizarre ad in which bits of metal fell from the sky.
3 and Orange have even gone one step further and axed data charges on their own portals in a bid to reduce the fear of the dreaded bill shock. The others should follow to reduce consumer anxiety further.
The move creates a virtuous circle. It has helped contribute to an increase in the number of mobile content publishers, which in turn encourages more people to sign-up to flat-rate plans.
Mobile gets handy - 20.03.08
If mobile services are to reach their full potential, they must offer something more practical than simple entertainment.
A great example emerged this week with the deployment of the NHS mobile service built by Incentivated, which allows users to find their closest doctor, dentist or A&E department. The highly accurate GPS targeting isn’t widely available in phones currently, but cell ID technology does a more than adequate location job.
This was quickly followed by Guinness’s Pub Finder mobile site, which allows consumers to locate their nearest pub serving the rare new Guinness Red. Obviously not a ground-breaking application, but it’s good to see brands experimenting with mobile interactivity.
Mobile entrants are becoming more concerned with driving traffic to their sites via a variety of channels. But once users arrive, they must have a reason both to stay and return to the site. Services don’t have to depend on innovative location-based or Web 2.0 technology, they just need to do the basics well. SMS is regularly used as a mechanic to drive offline traffic to a mobile site, but how regularly are the results analysed to determine where the most efficient space was purchased?
Que Pasa plans to combine mobile ticketing with sending regular SMS updates to clubbers at the Camden Crawl, letting them know which gigs still have tickets available.
The industry has largely been built on what has proved to be an unsustainable base of ringtones and wallpapers. It must look to the useful skills it has as well as the bells and whistles to cement its future.
Shifting ground - 17.03.08
The ground on which operator portals has comfortably sat is beginning to shift following the news from Conde Nast that it's to pull its content off-deck.
Traditionally the traffic-heavy portals have been the holy grail for publishers and vendors but as the space matures and third parties are keen to take more control over their fate, portal managers must manage their contacts more delicately.
Conde Nast's decision to cut its operator ties and head solely off-portal is a brave step.
Traffic is likely to slump in the short term but the publisher would rather take control of its own destiny than exist at the whim and mercy of operators.
Its fears can be seen starkly at O2 following news of Grahame Riddell, head of strategic content partnership's, departure. A content provider's all-important deck placement can be changed forever with the departure of a key contact and a publisher can find themselves buried deep in the portal.
With the best will in the world new people have new ideas and while some benefit from any changes, some will have to suffer.
With murmurs that O2 is to allow advertisers to direct consumers off-portal to their own sites rather than keep all click-through traffic on the portal gives greater opportunity for publishers.
Is it not more sensible for a content provider to launch off-portal, not bother about dealing with five slightly unreliable distribution partners and simply buy banner space directing consumers to its own home?
Maturing unevenly - 29.02.08
As LinkedIn, another of the world’s largest social networks, goes mobile (nma.co.uk 25.02.08), there are clear signs that the space is maturing. The danger is that the services themselves are not.
LinkedIn joins its peers Bebo, Facebook and MySpace by entering the mobile space, but all have done so with sites that offer far more limited functionality than is available online.
Partly hobbled by the technology, some basic functions, such as streaming rich media, viewing friends’ information or updating profiles, continue to be ignored.
Limited functionality could hold back services that are really flying elsewhere. There are technical concerns, of course, but if I can play music and video on some mobile sites it stands to reason that I should be able to so on mobile social networks.
This is an area where the mobile-centric social networks like Flirtomatic and Reporo have a real chance to shine. Given their experience, knowledge of mobile and flexibility, there’s an opportunity for them to capitalise on the less-than-perfect experience being offered by their fixed-line rivals.
The move of LinkedIn and its 16m users onto mobile must be applauded. Not only is the concerted effort of any media owner to move onto mobile helpful for the state of the industry, but it signals the entrance of a professional rather than social network.
With Travis Katz’s statement in that he expects half of all traffic to his site to come from mobile (NMA 07.02.08), it’s clearly an area that’s considered vital to execute well.
But if all mobile sites actually achieve is to look better when viewed on a mobile phone, then I’d be happy to navigate to the online version from my phone and swap a poorer viewing experience for better functionality.
Is Blyk for everyone? - 21.02.08
Everyone loves Blyk - except, perhaps, advertisers.
But even they love the concept of an MVNO that offers free calls and text messages to 16-24-year-olds if they agree to receive SMS and MMS marketing messages. It’s just the numbers that aren’t stacking up.
Advertisers need scale in order to deliver campaigns, no matter how targeted they might be. And according to agency sources, Blyk is simply not generating enough subscribers for them to consider running campaigns.
Media planners have expressed disappointment with the level of subscribers to the service - currently standing at around 30,000, although Blyk insists its on target to hit 100,000 by September.
It’s also worth questioning how many of the 30,000 are active users and how many just signed up to get the free calls and SMS, used up their credit and then chucked the SIM in a drawer.
Even if the model itself stands up, the looming danger is that Blyk’s every move is being scrutinised by some very curious parties: the operators.
If Blyk is a success, there’s little to stop an established operator with a huge customer base from simply stealing the idea wholesale and offering it to its own customers.
However, some observers have expressed doubts about the model itself. In this age of behavioural targeting, there’s a danger that in an emerging, mobile market the targeting can go too far.
Eyebrows have also been raised over the number of employees - around 30. Most mobile start-ups run lean outfits to account for tight margins. And even well-established companies in the sector try to keep staff numbers down.
There’s nothing wrong with a new entrant into a market shaking up the old guard, and virtually everyone I speak to welcomes the entrance of Blyk. But there are fears regarding the sustainability of its model.
Hope for Yahoo! - 14.02.08
For all the speculation surrounding Yahoo!'s future, this year's World Mobile Congress - previously known as 3GSM - offers a ray of hope for its mobile strategy. Indeed, it's fair to say it's been nothing short of bullish in this channel.
Yahoo!'s coup of securing the search partnership for T-Mobile from Google has helped bolster its position in mobile further.
It now has search or ad deals in place with all five of the UK operators and looks to be in good shape, putting it in a strong position in mobile at least.
Vodafone must be considering its decision to work with Google as its search partner, particularly as it's already contracted Yahoo! to sell its mobile ad inventory.
It's unclear if Yahoo!'s aggressive mobile strategy has put any value on the company as it bids to repel Microsoft's unwelcome advances. No-one from either company was prepared to comment on the deal but working closely with increasing numbers of major telcos can't do it any harm.
Also in Barcelona, Yahoo! unveiled OneConnect, its new intelligent address book which collates all your SMS, IM and email conversations with friends along with location awareness and social networking status.
Applications are not always straightfoward on mobile but if it can work with one of its operator pals to embed the address book into the phone it could quickly gain a stronghold in consumers' pockets.
Mobile internet is here! - 08.02.08
Ahead of the world's biggest and most hectic mobile conference MWC in Barcelona there are indications that mobile internet services are finally taking off.
Of course the stands from the infrastructure and base station technology companies (dull but worthy?) will still dwarf those of the content guys but ground is being made up. And who wants to work in that end of the business anyway?
When Travis Katz, international MD for MySpace predicts that half of all traffic to his site will be from mobile within five years, (as our front page story revealed this week), people listen. This vision is from a man who is top friends with Tom from MySpace and someone who really understands the youth market that's shaping tomorrow's media landscape.
In any case his, 'this time next year, Rodney...' statement is backed by statistical evidence from the operators. The Mobile Data Association released its first set of figures in a long time showing the mobile internet to be continuing its stellar growth, with 17.5m people logging on in December alone.
This past year has seen renewed pushes into mobile from Facebook, Google, ITV, News International, Yahoo! and YouTube - it's clear things are starting to get serious.
And more satisfyingly these guys are not just trying to flog ringtones but build sustainable businesses dependent on loyal traffic and ad money as well as premium content.
The mobile internet experience is still far from perfect with poor connectivity, rudimentary navigation and less than perfect search.
But the signs that the media companies are beginning to formalise their strategies is a healthy first step.
Charging ahead - 01.02.08
Mobile data charges are back on the agenda following news this week that both O2 and Vodafone are scaling back their access fees.
Connectivity costs might not be the sexiest topic but it plays a vital lifeline for content providers.
Two of the most dependent, the BBC and YouTube, have also reached tipping points this week. Their rich video content demands reasonable data rates if the services are to take off.
The BBC is evaluating its mobile TV strategy as it draws to the end of its 12 month trial. And YouTube has made its entire catalogue of videos available rather than the edited version initially trialled.
Cheaper data rates allow more consumers to access services without fear of bill shock.
If operators want content providers to use the mobile internet then they must reduce the data charges which can cripple consumer interest.
The signs are that this is starting to take shape. All that remains is for operators to market their cheaper tariffs.
Only then - when the public really understand the cost implications - will services, like the Beeb's and YouTube's, take off.
Welcome back Bluetooth - 24.01.08
The news that outdoor planning agency Kinetic is to launch a mobile subsidiary has pushed Bluetooth technology back into the limelight.
The WPP-owned advertising giant wants to boost the level of interactivity it has with consumers from the moment they leave their homes - and views mobile as a natural extension.
Bluetooth first received a shot in the arm due to legislation requiring drivers to use the technology in their cars, according to one agency. Now more manufacturers are steadily incorporating the technology into their cars for the first time.
But in order for the medium to be accepted by consumers as a valuable piece of marketing rather than unsolicited spamming, the content delivered must be up to scratch.
Bluetooth can be location-based but offers little opportunity for personalisation at this stage, complicating the pay-off.
Fortunately there has been a supporting shift from creative agencies to produce rich mobile content this year.
This growing content base can be delivered to consumers in a variety of ways, including using Bluetooth. If outdoor agencies prioritise mobile on their budgets, content of a sufficiently high standard must follow.
To date Bluetooth has failed to gain momentum in outdoor advertising media. But the fact that mobile is now on Kinetic's agenda could yet change its fortunes.
Focus falls on content - 17.01.08
Two significant mobile advertising deals announced this week underline the maturing of the market and the need for content publishers to raise their game if serious sales are to be expected.
Nokia Ad Sales closed a deal with off-portal publisher Reuters (NMA 06.12.07) while Yahoo! secured T-Mobile's Web & Walk inventory.
As the remaining mobile content properties continue to be signed up by aggressive ad networks and the market saturates, the onus must be on publishers to attract new visitors for their ad network to sell around.
High-end phones, flat-rate data packages and a marketing spend from operators have all fallen into place. It's now left to the publishers to do what they should do best - offer compelling, sticky services.
Growing investment and innovation from the advertising industry - witness the recent impressive mobile work BBH has carried out for Lynx - will follow traffic if its generated.
The mobile ad networks such as 4th Screen Advertising, Admob, Admoda, Nokia, Screentonic, Yahoo! are engaged in a competitive land grab to win any available premium inventory and offer it to blue-chip advertisers. But their potential risks being stunted unless traffic continues to grow.
But there is still scepticism surrounding the current level of interest from major brands in terms of major investment in mobile advertising. Advertisers demand reach if mobile is to make it onto the top line of a marketing budget.
Dropping DRM - 14.01.08
The turn of the year saw the two remaining major record labels, Sony BMG and Warner Music, finally embrace DRM-free formats in a move that could ultimately prove to be the true test for mobile music.
Then Napster announced it was making its entire catalogue available in MP3 format within the next six months.
The mobile music industry must move to make the most of this opportunity.
While it is a chance for iTunes' fixed-line rivals to gain market share it is also an opportunity for mobile vendors.
The operators running digital music stores can't afford to drag their feet over a switch to MP3 if they're to gain any traction. Before the end of 2008 no-one is going to be interested in buying a copy-protected music file when MP3s are legally available.
And while the operators might be as slow to react as the music industry was, a mobile-savvy third party vendor such as a Jamster or Napster Mobile could be far fleeter of foot.
Ironically they will take full advantage of the flat-rate data plans operators are starting to offer removing the issue of data costs.
The birth of the DRM-free revolution represents a real chance for mobile music vendors to stake a claim as the massive hurdle of inter-operability is removed.
And the proposition for mobile music remains as strong as ever. Being able to legitimately buy a track wherever you are - and then crucially transfer it to PC - still makes good sense.
Comments
Leave a commentMobile is not predominantly an ADVERTISING channel, but a tool for effective and timely direct and viral marketing. The prediction that 2009 will see more mobile sites and advertising may well be true, but that is not what makes the channel UNIQUE. A lot of new media commentators still appears to wish for all-singing and dancing flash sites squeezed onto a small screen (or slightly bigger if you can afford an iPhone). In the meantime the AUDIENCE is texting, bluetoothing, downloading, sharing and communicating using their mobile device, and being CONNECTED to existing campaigns and services by marketers embracing mobile not as a new type of banner ad, but a 1:1 channel. That's where the action is for 2009 and beyond.
left by Nico Koepke, at 18:51 on 18 December 2008
Maybe, just maybe, the agonising over why TV on mobile isn't capturing the imagination of consumers has nothing to do with education or even service levels... but just that consumers aren't interested! Just because the technology can deliver (well, sort of...) doesn't mean there is a useful or viable business. In the same way, I'm sick of looking for a mobile phone that actually makes it easy and reliable to make phone calls! I don't need education or good service to help me understand why the latest "mobile" can condense everything my PC does into a hand-held device. I just don't want to use the technology in that way. I want a phone to be a phone. No (or very little) more. And one that works well and in a straightforward way.
left by Fred Perkins, at 14:06 on 16 October 2008
As a previous mobile TV subscriber, I can completely understand why it has not been as successful as hoped, as the operators really needed to sort out their 3G connections nationally, as just being able to watch it in London is useless - I was hoping as a commuter that it would have offered more during journey times, but as soon as I leave London down to the South East the service disappears! Just like my patience and enthusiasm!
left by Jason, at 14:47 on 31 July 2008
The technology behind broadcasting a live commercial is interesting and I Iook forward to seeing a commercial created with this in mind. But, live skydiving? Like we haven't seen that on TV before? How is this innovative, engaging or exhilarating? Have you never seen people jump out of airplanes? Lets get the Red Arrows out of retirement they can spell out Honda in an ad break.
left by rupert, at 20:46 on 23 June 2008
Totally agree with you Alex.
left by Jon Steed, at 17:06 on 19 June 2008
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