Ad Funded Mobile Content and Services

What is it?
Mobile content is defined as interaction on mobile outside of peer to peer activities, mainly voice and SMS. Content includes pictures, audio, video and applications all of which require storage or installation on the mobile handset.
The growth in mobile content has developed from the ring tone and picture background markets of the early millennium, through to a more complex range of content including video, games and applications.
A combination of better handsets, improved data speeds and data pricing means that the level of content downloads are predicted to increase significantly.
With a many recent scandals connected to Premium Rate Messaging, there is a significant public distrust with this billing method for content. This presents and opportunity to brands who are able to fund content and delivery it to the mobile user for free.
Conversely, whilst direct marketing to mobile through is increasing, many users and some brands see this as intrusive. Ad-funded content offers brands a different relationship with the mobile user by giving the benefit of free entertainment or information.
A report by the Mobile Entertainment Forum (MEF) believed that ad-funded mobile entertainment in games and video to generate revenue of £145m in the UK by 2012


How does it work?
As brands are looking for new ways to promote to their markets, mobile content advertising offers them a new channel with which to do this. Within video or gaming content, this is typically through a pre-roll or splash screen advertising. However there is a move towards brands to move beyond a simple sponsorship model by developing their own content. This is done by working with mobile content developers and creatives.
The distribution mechanism is usually via MMS or SMS and WAP push, where a text message is sent with a download link. This is usually triggered by a request to a shortcode (five or six digit number) from the mobile user.
The means of promotion of this content are varied, but are usually through tie-in’s to media campaigns such as television, press or billboard advertising. On the mobile side, the operator portals are currently regarded as the main point for distribution, however as more direct to consumer channels develop they will offer viable means of distributing advertising-led content. With this development there are an increasing number of ad-funded content providers connecting brands to both content and consumers.
From an advertisers point of view the ability of mobile targeted, location and time-sensitive content could make it an attractive proposition.
So far, content funded advertising has been slow to take off and meet the predicted levels, however a number of recent campaigns have shown the possibilities.
One mobile advertising portal surveyed it's user base of 16-25 year olds which showed that nearly 50% would accept ads in return for content.

A few examples
Orange have trialled ad funded content with brands such as Coke and Saab advertising in downloadable games (see J2ME applications).
MySpace in the US have been testing similar advertising funded content.
The 2007 Big Brother switched its mobile video from premium rate payment to advertising funded reported a four-fold increase in the downloads.
The mobile network, 3, launched an ad funded video service in summer 2007 gaining over 1 million subscribers in the first 6 months.

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