Sunday, March 25, 2007

(MMA Newsletter) The Game Changer: A Carrier's View on Mobile Advertising

The Game Changer: A Carrier's View on Mobile Advertising
Tom Burgess, CEO, Third Screen Media

In Third Screen Media's ongoing byline series for The Messenger, we've looked at the growing mobile advertising ecosystem, its opportunities, pitfalls and success stories.  In an effort to paint the entire landscape, we've taken the opportunity to provide a closer look at each of the integral players in mobile advertising to give you a better idea of the unique role each plays in making it all happen.
To view the entire article, please click HERE or read below.

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Hold The Phone! - Third Screen Media
March 2007

The Game Changer: A Carrier's View on Mobile Advertising

In Third Screen Media's ongoing byline series for The Messenger, we've looked at the growing mobile advertising ecosystem, its opportunities, pitfalls and success stories.  In an effort to paint the entire landscape, we've taken the opportunity to provide a closer look at each of the integral players in mobile advertising to give you a better idea of the unique role each plays in making it all happen.

First we discussed the content provider—or publisher—in our January interview with Matt Jones, director of mobile strategy and operations for Gannett Digital—which includes Gannett's 113 domestic local print and broadcast properties and USA TODAY.  As Matt noted, publishers are now in droves seeking to establish and expand their presence on the mobile platform, and advertising has become an enabler in their efforts.

From the issue of on and off-deck advertising to standards and new delivery technologies, we've gained the unique perspective of one key component of the ecosystem. And now, another player in mobile advertising whose efforts have placed the phones in our pockets and have ushered in the era of mobile devices: the carrier.

This month we chatted with Richard Williams, executive director, digital media operations for Verizon, to hear the carrier side of the story and to understand what the future holds for those players partnering with carriers to realize their mobile advertising goals.

Q. 2006 was the year of mobile advertising's awakening for brands and publishers. The carriers, as a whole, were cautious in their approach. What can we expect of Verizon in 2007 as companies look to partner with you in mobile advertising?

A.
As the operator of an extensive network and responsible for the mobile experience of millions of consumers each day, Verizon takes its role very seriously. We must be cognizant of each individual's privacy, experience and overall satisfaction with their mobile phone service.  For this reason, Verizon chose to partake in smaller, exploratory advertising trials with brands off of our main deck, or entry portal.

With that said, we recognize the enormous potential mobile advertising provides and seek to expand our partnerships and business relationships with technology providers, brands and publishers to ensure that. Verizon plans to increase its mobile advertising initiatives in 2007.

Q.  What are your thoughts on the mobile subscriber's perception of mobile advertising?

A. Our customers value their experience on the third screen, as the mobile phone is their most personal device. It goes everywhere. While advertising stands to delivery relevant content to the consumer, we want to be sure its done in a way that does not impede the delivery of content.

Early on in our mobile advertising trials, we conducted surveys and focus groups with our valued subscriber participants. The trial campaigns garnered high click-through rates and we received positive responses from the individuals, including no calls to our customer response center.

Not unlike the Internet, the consumer expects to see advertising on the third screen, so a great majority of the mobile audience is expecting and accepting of mobile advertising.  As an opt-in experience, mobile advertising is an experience where the consumer has control of the messages he or she wishes to receive. At the end of the day, they don't have to click on the advertisements, but should they wish to, it's all within their control and discretion.

Q. What plans does Verizon have to implement advertising?

A. At Verizon, we're always seeking to provide the best possible experience for our subscribers.  Over the course of the past year, we've conducted mobile advertising trials to better understand how the consumer would act and receive advertising.

We have plans to implement advertising throughout the Verizon mobile Internet offering, including the portal's homepage, sections and article pages.

Q. What challenges do you face in providing advertising on your mobile properties?

A.  We always are aware of our subscriber experience and want to ensure this experience is non-intrusive.  In addition, the advertising should add value and the ads should be properly targeted. Our goal is not to provide diaper ads to the 18-24 year old male demographic. Rather, the advertisements should reflect the needs and interests of our unique subscribers and should never disrupt Verizon's reliable network.

Q. What is your definition of best practices for mobile advertising?

A. On the third screen, there is only a small amount of space with which to work, so an ad needs to be small and shouldn't encroach upon the content the subscriber is seeking. While video, SMS and downloadable applications all provide opportunities for advertising to the mobile subscriber, our initial focus will be on display advertising in VZW - our mobile Internet offering. 

Verizon already works closely with the MMA—Mobile Marketing Association—to ensure that campaigns on its mobile properties adhere to its standards.  The frequency of a campaign and its appropriate targeting are just two important factors that must play into the planning of each mobile advertising campaign.

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