Thursday, October 23, 2008

Mobile Operator Globalive to adopt mobile advertising business model

Canadian mobile operator Globalive Communications is to use mobile advertising in an effort to keep consumer tariffs low and differentiate itself from incumbent operators Rogers Wireless, Bell Mobility and Telus. The newcomer has signed a deal with mobile marketing and advertising vendor MyScreen that will see Globalive's customers compensated for allowing targeted rich, full-screen advertisements placed on their mobile device at the end of a call or SMS. MyScreen has recently partnered with marketing agency Omnicom, which represents some of the world's major brands. UK MVNO Blyk, which itself this week announced an advertising deal with MTV is regarded as a pioneer in this space, and has already signed up over 200,000 customers.

Backed by Middle East giant Orascom Telecom, Globalive plans to launch services in the second half of next year and is targeting 1.5 million subscribers in the first three years. The move to a mobile advertising-based business model is the latest effort by the operator to position itself as a consumer-focused mobile company, following the launch of an online 'soapbox' forum last month which will gather consumers' opinions about what they seek in a mobile provider. 

Its great news for the mobile ad industry to see Operators like Globalive and Blyk taking their chance with such business model. There isnt a real success story yet but Blyk certainly are making good progress and while i doubt that complete ad supported advertising business model will work for the mobile operator business, I do believe that there is model for partial support as I m pretty sure they are segments of subscribers who are willing to pay for less for looking at ads revelant to them.