Advertisers can better connect with consumers via iPhone: Ad Infuse exec

By Giselle Abramovich

June 9, 2008

David Staas is vice president of marketing at Ad Infuse

It's quite likely that Apple will launch the 3G iPhone today. With the buzz on touch smartphones and these devices’ multimedia capabilities and faster network speeds, mobile advertising might just evolve.

IPhones are less than 1 percent of mobile devices, yet they account for 75 percent of all video impressions. Advertisers are using this demand for mobile video and multimedia formats to engage consumers.

Based in San Francisco, Ad Infuse is a mobile advertising provider that works with advertisers, carriers and operators to deliver personalized advertisements across all mobile devices. The company is focused on mobile advertising, offering an online mobile advertising platform for video content specifically for the iPhone.

With the 3G upgrade to the iPhone, there will be more mobile browsing, video and applications and the mobile advertising industry will be right there to capitalize on such innovations, according to David Staas, vice president of marketing at Ad Infuse. Mobile Marketer’s Giselle Abramovich interviewed Mr. Staas regarding the impact the new iPhone will have on mobile marketing. Here's what he said: 

How did the launch of the first iPhone affect mobile marketing?
The iPhone has had an impact on mobile content, in general. It made people more aware of what they can do with their mobile phone other than make a phone call. In fact, a lot of mobile applications have been around for a while. People were just not using them.

iCandy

M:Metrics found that around 85 percent of iPhone users use the mobile Web regularly. It’s a compelling device for advertisers as its users are significantly more reachable on a regular basis than other consumers on other phones. Only about 10 percent of mobile phone users use the Web regularly.

One of the thing about the device is its big screen and touch capabilities. We see from an engagement level that when [iPhone] users are looking at ad landing site about 34 percent click on the action and only 2 percent of regular phone users click. The iPhone offers a deeper level of engagement and allows for advertisers to really connect with consumers.

How will the launch of the 3G iPhone further drive the industry?
The thing about 3G that’s compelling is it brings mobile to the broadband Internet experience. It’s sort of like when the Internet went from dial-up to broadband. With dial-up video was spotty and poor quality. 3G will open up speed and connection to mobile content.

With the iPhone today Wi-Fi is the faster connection, but 3G will give a better experience anywhere.

With a better Internet connection, multimedia content will grow in usage. Video is important. When we create videos for clients, about 70 percent are being consumed by iPhone users and 30 percent or less for all other devices. This is great exposure for the advertiser

What are some of the new features that the iPhone is rumored to have?
If you read all the different blogs and articles there's a lot of guessing going on. It is always hard to try and figure out what Apple has planned and I think they will find a way to surprise us all.

I have heard things about is a better GPS [and] perhaps having the tactile sensation on the touchscreen. But one thing that’s consistent is the 3G. 

What is the current state of mobile marketing?
I think there are things that are changing. A lot of marketing today has been long tail. There are a lot of text- and banner-based and Internet-performance-based campaigns.

We do the thick tail, so we work with brands, agency and carriers. We see a lot of large brands entering the marketing space. Their approach is what happens beyond the click. If you are thinking about an auto manufacturer, it’s unlikely people are going to click through to buy a car. That large purchase consumer goods provider has different objectives.

So as these brands move into the mobile space we are seeing more multimedia-like video which plays on the emotional purchase. Large brands are shifting towards multimedia and how we engage the consumer once they have clicked.

Where do you see it going in the next five years?
In the next five years, we are already seeing initial elements of this, instead of using proven ad formats from Internet, the industry is going to focus on leveraging the unique capabilities of mobile.

For example we are doing a campaign for a brewer in Britain and we advertise on the social network Flirt-O-matic. Users can buy each other a beer and if I buy you a beer, you will receive a mobile coupon. You can then go to a pub and redeem your beer there just by showing your mobile phone.

This type of a campaign shows how a mobile device can interact with the outside world, something you can’t do with the Internet, for example.