Price slashing for mobile advertising evident in the UK already
There was some shop floor gossip last week at MWC that Yahoo! was killing everyone’s business model by bundling mobile with online campaigns in a bid to drive up inventory levels and get traction.
Yahoo! is unquestionably the display ad leader in the UK market at the moment and its onslaught on mobile by using “low cost” prices as an instigator is (unfortunately) a proven strategy to win.
Yahoo! is starting with a very attractive CPM of only GBP 5 per month.
This is good and bad.
Good for uptake and Yahoo! But very very bad for competitors that are trying to make a business model in mobile services by focusing on quality positioning and targeting of display ads.
I think that it’s not an exaggeration that companies could go out of business if the price erosion continues.
Rating: how low can you (Y!) go?
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2 Responses to “Price slashing for mobile advertising evident in the UK already”
This is not a good move for the operators as this commoditises their traffic and effectively eliminates any upside that mobile advertising should be delivering.
This could actually working against their operator customers.
Also it conveys the impression that they don’t believe their inventory has any value if they are having to give it away
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Comment made on February 23rd, 2008 at 2:07 pmLeave a Comment