Mobile Advertising Blog ? Advertising may be key strategy for mobile telcos

April 28th, 2006 by Arjan Olsder Posted in 1 | No Comments »

Link: Mobile Advertising Blog ? Advertising may be key strategy for mobile telcos.

Advertising may be key strategy for mobile telcos

April 24th, 2006 Edit

Advertising is making its way into the mobile industry with mobile operators needing to embrace it in the same way as they have embraced mobile marketing offerings, according to an IDC study entitled What Lies in Store for Mobile Advertising. Mobile advertising potentially offers a new way to add value to the mobile chain: operators mainly rely on customers to generate revenue but, as voice revenues decline, there is a need to offset the loss with data revenues. But data adoption is slower than expected, leading IDC to suggest that advertising could play an integral part of the revenue mix, at least in the near term. But the biggest headache seems to be finding ways to introduce mobile adverts, due mainly to the sheer variety of business models.

Mobile advertising may also represent an important part of an operator’s off-portal strategy and revenue. Off portal is an area that mobile operators are actively seeking to bolster and opening up their portals will facilitate greater opportunities for advertising. They have increasingly opened up their portals and advertising may prove to be another source of revenue. This will naturally complement their on-portal strategy, especially given the introduction of free browsing or flat rate pricing plans. In addition, the operators will be able to offer content sponsored by brands. Content can vary from type of service as well as how it is delivered or the creation of communities such as chat groups.

IDC says that finding out which one to implement will be a case of trial and error for most operators, as the best approach is likely to depend largely on market dynamics. End users may well accept mobile advertising, provided there is a code of conduct that is respected and followed. Users don’t want spam, but are generally willing to opt-in provided that the adverts are targeted, useful, and relevant.

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    Arjan Olsder is the Vice President of Pixalon Studios. Opinions expressed on this publication do not have to represent those of Pixalon Studios.


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