January 28, 2008

Advertising on mobile portals

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Mobiletech believes that mobile marketing will bring value to the consumer, the advertiser and the owner of the advertising space. We anticipate significant growth, and expect a high number of advertisers and corporations to establish a mobile presence. All stakeholders will benefit from the fact that mobile marketing is a current priority by several parties in the value chain.

Historically mobile internet has been dominated by content providers. Mobile marketing, with its unique qualities, brings industries like insurance, TV stations, magazines etc. on the field. This contributes to a broadening of the services found on mobile internet

Further, the traceability and measurability are far more reliable in terms of targeting segments in the mobile channel. This will contribute to opening a new market for advertising that is different than what we see on traditional internet. Therefore it is extremely important to not only have the right technology, but also combine it with the knowledge of the channel.

Currently ad networks are very popular on mobile portals. Networks such as admob, Mads, and Widespace are very important in the current early phase of mobile marketing because it enables site owners to make money, and it gives the consumer the opportunity to explore a so far unknown service. Networks will continue to be important for small sites and portals for a long time. However, for larger portals networks are not the solution. Mobiletech believes that the following risks concerning advertising networks must be taken into account:

  • Compromises the editorial freedom and control. It is difficult (if possible at all) to control what is advertised on the portals
  • Loss of revenue. The value chain is split into more parts than necessary.
  • Loss of advertiser relationship.
  • It becomes more difficult to target campaigns.
  • Poor ad performance. The focus of ad networks is to display an ad, not to display the right ad.
  • Eroding customer satisfaction. It is a risk, both for the brand and for general usability issues to present none-quality-ensured ads to the consumer.

(Fast, “The Performance Advertising Imperative”)

These are the main reasons why Mobiletech has developed Dextella Ads as a stand-alone advertising engine that enables the organization sell and administer own advertising campaigns and selling spare capacity via advertising networks. Dextella Ads is also utilizing the unique properties of the mobile channel and is closely integrated with the Scandinavian Telecom networks. This enables features such as user identification, network belonging, geographical filtering etc. Mobiletech believes these features will be extremely valuable for mobile marketing in the long run.

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