Ad-funded mobile entertainment can be a key weapon in the integrated armory of advertisers looking for something more concrete in terms of value exchange for brands and their potential consumers.
It all seems so incredibly obvious, but for some reason, there's a lack of people doing it. That said, I can point to a few metrics which show it's moving forward (albeit glacially) in Southeast Asia -- so someone, somewhere needs to challenge the industry to get with the program, with regard to my festive gift: Ad-Funded Mobile Entertainment, or AFME.
Given the (maximum) hype that has emerged with the (minimum) growth of mobile advertising services to date, I've taken a slight risk myself in suggesting to my new board of directors that I believe this coming year, for once and for real, AFME is a sure-fire solution for success in interactive marketing; and so, ready for commercial exploitation.
Just in case you are averse to acronyms, here is the Mobile Entertainment Forum's (MEF) definition of AFME: "The revenue generated through mobile advertising to subsidize or fully fund the cost of existing mobile entertainment to the consumer."
New Year's prediction: a coin toss
Ok, so being an entrepreneur, I've had to make a few speculative decisions in my time, not very often with the flip of a coin; more usually based on instinct. But, could the toss up be wrong this time? Actually, potentially that's down to many of the readers of this column.
I genuinely believe that AFME can be a key weapon in the integrated armory of advertisers who have already run the gamut of interactive strategies and are looking for something more concrete in terms of value exchange for brands and their potential consumers. As such, I think I've found the perfect channel opportunity to make the case for AFME.
Why mobile entertainment? All content that goes into the mobile channel (especially on a mobile network operator's deck, or portal) can be mediated and exploited for brand benefit. And I don't say that lightly.
Moreover, when you strike-up a successful communication with someone's mobile number, you have established a powerful relationship with a connected person and can thereafter, intravenously inject things into them, if they will it. (That's called opt in of course) Yes, once you have my mobile number, you access me, Colin, directly -- and if you are giving me something I want, in fact am addicted too (like sports content), I'll stick with that brand connection for as long as possible.
Sponsoring mobile content outright is branding beyond placement, beyond insertion, it builds emotional affinity to a consumer that's hard to find in any other medium.
Is there any AFME out there?
Let me point to the recent AFME (SEA) report from the Mobile Entertainment Forum, a global industry association based in London with chapters located worldwide, as well as in Asia. The MEF report concludes that the total AFME market across Indonesia, Malaysia and Thailand will be worth US$2.6 million by 2013.
While this figure appears small, given the market's propensity for cost-per-click models, at an average cost of US$0.05 per click, it still accounts for 52 million click-throughs on AFME, a significant amount of activity given the limited investment in ad-funding mobile entertainment. But, and here's the punch line: "Similarly, this growth in mobile entertainment revenues is demonstrative of a maturing mobile data market and will also provide the platform upon which mobile advertising will develop beyond messaging and banner advertisements."
What is additionally available to the sponsor apart from these two well known mobile touch points? Well, here's a practitioner's list for your records: messaging/text content, banners, links (WAP sites), in-game ads, interstitials, video, music (ringback tones and full track downloads), mobile TV (pre-rolls, post-rolls, squeeze-backs are also possible!), content/graphics, idle screen broadcasts (ISBs) and IVR/voice ads.
Plus, I can extend that with some amazing real estate from the operator's themselves, like USSD (directory menu) placement, SIM card pre-loads, as well as top-up message promotions, for example: "Thanks for your enquiry, you have X dollars left, why not download some [Brand] Hollywood content NOW!!"
Summarizing the report, I think readers should note: "The markets of Indonesia, Malaysia and Thailand will experience strong growth in mobile entertainment consumption, and therefore revenues, during the forecast period 2008 to 2013. Research into each market has highlighted phenomenal demand for free or heavily-subsidized content. With the adoption of the CPC model in each market, this makes AFME an appealing model for brands..."
Which year? Heads or tails...
The report mostly suggests that AFME as an industry activity will get moving properly in-and-around 2011. For my part, I felt that a couple of good, high profile ad-supported mobile channel packages -- within the operator environment to start with-- would prove the point and allow other brands to more quickly grasp the nettle as early as 2009. I'm working on such propositions now, hoping to put the money (however it lands) where my mouth is.
Colin Miles is executive vice-president and co-founder of i-POP Networks.