Ad-supported mobile content and services

What is?

Mobile content is defined as mobile interaction outside of peer-to-peer activities, primarily voice and SMS. The content includes images, audio, video and applications, all of which require storage or installation on the mobile phone.

The growth of mobile content has developed from the ringtone and picture background markets of the early millennium, to a more complex range of content including videos, games and applications.

A combination of better phones, improved data speeds and data prices means that the level of content downloads is expected to increase significantly.

With many recent scandals involving Premium Rate Messaging, there is a great deal of public mistrust regarding this method of billing for content. This presents an opportunity for brands that can fund content and deliver it to the mobile user for free.

On the contrary, while direct marketing through mobile devices is increasing, many users and some brands see this as an intrusion. Ad-supported content offers brands a different relationship with the mobile user by providing the benefit of free entertainment or information.

A Mobile Entertainment Forum (MEF) report believed that ad-supported mobile entertainment in games and videos would generate £145 million in revenue in the UK by 2012.

How does it work?

As brands look for new ways to promote themselves in their markets, mobile content advertising offers them a new channel through which to do so. Within video or gaming content, this is typically through pre-roll or splash screen advertising. However, there is a movement towards brands to go beyond a simple sponsorship model by developing their own content. This is done by working with developers and mobile content creators.

The distribution mechanism is usually via MMS or SMS and WAP push, where a text message with a download link is sent. This is usually triggered by a request for a short code (five or six digit number) from the mobile user.

The means of promoting this content are varied, but are generally linked to media campaigns, such as television, print or billboard advertising. On the mobile side, operator portals are currently considered the main distribution point, however, as more direct-to-consumer channels develop, they will offer viable means of distributing ad-driven content. With this development, there is an increasing number of ad supported content providers connecting brands with both content and consumers.

From an advertisers standpoint, the ability to target mobile, location, and time-sensitive content could make it an attractive proposition.

Until now, content-supported advertising has been slow to take off and reach anticipated levels, however several recent campaigns have shown the possibilities.

A mobile advertising portal surveyed its 16-25 year old user base and showed that nearly 50% would accept ads in exchange for content.

Some examples

Orange has tested ad-supported content with brands like Coca-Cola and Saab that advertise in downloadable games (see J2ME applications).

MySpace in the US has been testing similar ad-supported content.

2007’s Big Brother switched its mobile video from premium-rate pay to ad-supported and reported a four-fold increase in downloads.

The mobile network, 3, launched an ad-supported video service in the summer of 2007 and gained more than 1 million subscribers in the first 6 months.