Monday, June 25, 2007

Is AdSense/Words a proper model for Mobile Advertisment?

A lot of people in carriers, internet companies are thinking about how to extend the online marketing/advertisment to mobile and it seems it is not a succesful task.
The successful Google model (AdSense/AdWords) faces difficult constraints with mobile: display size, not too extensive mobile browsing by users due to usability & concerns and uncertain conection costs, etc.

Sometimes when a model is so succesful people tries to replicate it in all "access way" but the answer for the question in the title is NOOOOOOOOOO !!! :-)

For mobile our purpose is re-starting from scratch. Important keys for us:

1/ free for users,
2/ not intrusive,
3/ carriers getting revenue from advertisers,
4/ advertisers getting more for same investment, business intellienge integrated with mobile advertisment

this is our aproach, our model will be explained soon

juan mateu

1 comment:

Saúl Labajo said...

It is clear that AdSense is not (yet) an adequate model for mobile advertisement, but I think it is mostly because of browser limitations in the terminal, and (I have to agree with you in this point) also because of browsing not being used massively by mobile subscribers.

Anyway, I can appreciate your concerns are divided in three categories that deserve further discussion:
1- Usability
2- Business model (subscriber-advertiser-carrier)
3- Interfacing between advertisers and mobile advertising technology

For 1-, what do you mean by non-intrusive? Advertising (no matter how anyone is trying to sell it) is always intrusive, however it may also be "gentle". Here, we face a completely different model from the Internet. It has clear advantages for the advertisers that are yet to be successfully exploited. First one is that subscribers (users) are always-on, and that makes them a clear target for advertising-on-the-go. Even more if this could be combined with user location to personalise the advertising, mostly like in "Minority Report", but, please, not so overwhelming. Anyway you must face some drawbacks that you already pointed, the main one is that users are not browinsg-on-the-go, so you have to be proactive in that sense, and it is not clear to me how to do that whitout being intrusive :-S. Push-wap may be considered in this point, but I think that the user should get some benefit so that they are willing to open push-wap messages.

For the 2- I think you are right when say that users should not be charged for reading an advertisement, and the model again is different from the Internet one, where you usually pay the same no matter you browse and read advertisements or not. However I am really not sure what is the best approach for this. Should mobile advertisement technology take into account all these and involve in the same model advertisers, carriers, etc. Or should carriers go to a model more like the Internet one where you pay once and can browse anything. I think that the first approach would generate complex models, difficult to manage (consider reaching a business agreement between technology providers, advertisers and several carriers :-O), difficult to implement (how can you be sure all carriers in a region will be willing to get on board and will give you as a technology provider the same access to their services :-O)
I think the market will decide which is the best approach, but for now I think the second approach seems to be the chosen, and this is being driven by the business need to compete with the several Internet access services available, and also to avoid the user beign afraid of the cost each time the data services icon appears in their mobile.
Anyway, surely I don't see why carriers should get revenue from advertisers apart from the traffic generated.
So I would feel much more comfortable with a simple business model that involves just the advertiser and the technology provider, at least as an strategic principle, and just involve the carrier in a tactical way when there is no other way.

And for 3- it should be considered the state-of-the-art in advertisement technology (internet, mobile or whatever). I am not an expert in that field, but up to my knowledge there are different roles in this game (surely this classification is not the most accurate, but from a technology provider point of view makes sense):
a- Campaign implementors that once the campaign target and strategy is decided implement according to their systems (CRM, business process, etc.) all developments needed to make the users segmentation according to business qualification decided in the campaign strategy, and to personalise the campaign accordingly. There are a lot of technology already in place for this tasks, and I think it really should be considered apart from any access technology (be it Internet or mobile)
b- Transport and presentation of campaign advertisements to the users. I think this is the point where technology has to develop in order to provide mobile users with a pleasant advertisement browsing experience. And this should take into account the needs and information from the implementors. I mean, mobile advertisement technology should take care of presenting advertisements (in any format decided by campaign implementors) to the users in the most proactive and "funny" way, and should also give to the campaign implementors, information about the reception of the campaing by the users.

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