What is the problem with Mobile Advertising based MVNO’s?
The premise behind a free MVNO or a free voice calls in exchange for viewing advertising is great. It is disruptive, unique, exciting.
The stumbling block remains the ability to execute. On top of that it’s the cost of acquisition and finding the right advertisers to fund the investment and get off the starting blocks.
Few MVNO’s in today’s climate can do this. The pressure to get advertisers is so high that advertisers are able to negotiate PPC or bulk impression rates that drive down profitability and mean even more advertisers are needed to fund the MVNO.
Mobile advertising is in its infancy and I hate to say this but it’s a fact:
No advertisers is always completely happy.
Expectations are always capped by actual click through rates. Impressions are high but never effective enough for a complete brand strategy. This makes advertising a catch-22 situation.
Advertising is needed.
Advertising is necessary.
But is it ever good enough? Is advertising a risk that marketers must just live with?
The value add that companies such as Blyk or Xero or Sugar Mama have is the audience. Mobile is a strong commodity and youth is the killer target market that can create or make or kill new brands. But the problem is that the target market is also fickle. Free offers are loved but connection via community and brand means that users want to get in touch any way possible. More often that not mobile youth have several mobile prepaid cards all with special offers and bundled rates.
This is important because this means that mobile youth are savvy enough to get the free or cheap voice calls they need when they need them and mobile advertising fads or offers can be manipulated.
The resolution?
Every free MVNO offer needs to drop the free. Mobile advertising is not enough and competitions not free calls should be used to pull consumers. Having restrictions on age or who can join the MVNO is equivalent to shooting oneself in the foot.
Related News:
- Marchex VoiceStar call based advertising for AdMob, Ringleader Digital and 4Info
- Is MVNO a dirty word? Pat McCarthy VP Telcordia
- ROK ends talks to buy mobile advertising based MVNO Xero Mobile
- Blyk Mobile Advertising discussion at Mobile Marketing Forum
- Mobile Advertising Click Through Rates of 5%, 12%, 25% and 29%?
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