One is not enough as CBS announces partnership with FOUR mobile advertising companies

by: admin Wednesday, August 1st, 2007

Rating: proving ad-inventory is an issue

A few days ago Wapple launched a new free mobile portal service using Admob, Admoda and Millennial Media. Today CBS has announced that it will push adverts on its websites, mobile site and introduce video commercials. It too as pushed towards a multi- channel approach.

The company will be using services from: Admob, Millennial Media, Rhythm NewMedia and Third Screen Media (now under AOL).

What we think
This says a lot for the state of the mobile advertising market at the moment which really is in its infancy. With a tiny ad-inventory it doesn’t matter how many mobile advertisements are placed what matters is the value that the adverts brings for the advertiser. As yet – the “value” is where the problems of mobile advertising arise.

Coke has also signed up with several mobile companies for advertising and CBS is doing the same several reasons.
1. As I said before lack of ad-inventory
2. Small mobile advertising pure play companies are finding niche segments for marketing. Rhythm new media is dabbling with user generated mobile content, Third Screen Media is toying with audio advertisements, Admob has just launched its banner campaign (five months ago in the US) and Millennial Media is reaching out globally to publishers.
3. What Admob has started in mobile advertising (providing cheap ways of pushing ads on mobiles) has been carried on and improved on by these other providers. But because of an overall lack of inventory buying advertising remains relatively cheap. This means that signing up with more than one is possible and affordable.

The only hiccup I can foresee is the management of the four advertising channels. Will banners, text ads, ad tagging be used by all the competitors at the same time or will different core channels be managed by one advertiser only.