Making money from Mobile TV advertising

Date: Fri, 05/08/2009 - 14:22 Source: UMTS Forum press department

Metrics, clear standards, self-regulation and partnerships all key to success, says UMTS Forum White Paper
Making money from Mobile TV advertising MWC 2009. Archive image

Video-driven advertising on mobile will create a new wave of revenues for 3G network operators, says a new White Paper from the UMTS Forum. The paper argues that Mobile TV presents an obvious growth area for network operators and advertisers, thanks to obvious parallels with the broadcast television media industry.
However, the white paper also warns that the immense commercial potential this new medium depends on several critical success factors. These include:
• Standard formats: Operators and the media industry need to define an inventory of standardised ‘templates’, allowing brand owners to create ad-driven TV content with confidence and at low cost.
• Metrics: Brand owners need transparent measurement tools (plus independent auditing) to quantify the returns on their investment in Mobile TV advertising.
• Accurate subscriber profiling: By sharing detailed demographic profile information about their subscribers, operators can help advertisers create more personalised, relevant campaigns targeting specific groups by age, interests, location etc.
• Clear business models and a viable ecosystem: All actors must co-operate and fairly share incurred costs to support the monetisation of Mobile TV advertising, while protecting the interests of subscribers, operators and content owners.
• Self regulation: Continued cross-national co-operation on regulatory aspects will be vital to build industry confidence and secure buy-in from advertisers, operators and viewers as well as other stakeholders.

Online advertising has already transformed the media landscape, drawing significant revenues away from print and other traditional channels. The evolution of a fertile eco-system now allows brand owners to invest with confidence in a range of online advertising platforms, from simple display and click-through banner adverts to paid search and sponsorship.
However the mobile industry and advertisers have not yet fully exploited the potential of advertising directly to customers via their phones. Mobile advertising to date has largely been confined to SMS and off-portal browsing. Advertising on mobile also provides the additional dimension of interactivity, allowing customers to respond directly to campaigns by clicking through links and on-screen banners.
Mobile TV offers great flexibility as an advertising platform. Advertisements can be inserted directly into the content stream – before, during or after the main video programme. They can also be displayed as banners within the client media player application or ESG (Electronic Service Guide), used as ‘gap fillers’ during service breaks, or during channel zapping.
“As the mobile marketing and advertising industry continues to grow, operators will continue to experiment with new models to deliver targeted advertising via streaming video and mobile TV services”, said UMTS Forum Chairman Jean-Pierre Bienaimé, speaking at this week’s General Assembly meeting and Mobile Broadband Europe Leadership Seminar in Ljubljana.
“Mobile TV offers a compelling new medium for advertisers to connect with their target audiences”, adds Bosco Fernandes, UMTS Forum Mobile TV Working Group chair.
“Success, however, depends on operators working hand-in-hand with the media industry and other actors to maximise potential revenues and reduce barriers to market. With clear interoperability, effective self-regulation and a fertile eco-system, advertisers will be able to reach mobile subscribers cost-effectively across multiple networks, platforms and devices to benefit from global economies of scale and maximise their returns”,
“Mobile TV and Mobile TV Advertising present a significant challenge to mobile operators, as they introduce them to a new line of business which had been previously reserved only for broadcasting companies", adds Peter Zidar, UMTS Forum Operators Group Chairman from Mobitel.

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