Ad-supported model works well with applications: MMF panelist

By Giselle Tsirulnik

June 12, 2008

Harald Neidhardt is founder and chief marketing officer of Smaato

NEW YORK -- Mobile applications, games and content downloads have�emerged as a new category to carry branded messages, deliver mobile advertising campaigns and act as brand extensions�to capture consumer interest.

Panelists at the Mobile Marketing Association's Mobile Marketing Forum also pointed out that downloadable application usage will grow with ad support.

"Downloadables are primarily interactive and include games and tools," said Erica Chris, vice president of strategy business development at Greystripe, New York. "The ad-supported model works well with applications because users get to download them free if they view ads."

Greystripe worked on a campaign with electronics retail chain RadioShack. RadioShack wanted consumers to know that it sells all the latest mobile phones and accessories, so it created a message promoting that. Greystripe used its AdWrap technology to weave the advertisement into some of its mobile games.

RadioShack was�pleased with the outcome of the mobile initiative, Ms. Chris claimed.

"We raised their status as a wireless store," Ms. Chris said. "People who intended to make an immediate decision of buying a mobile phone went way up with RadioShack.

"We believe in a mobile interactive service," she said. "It takes the participation of high-value brands and advertisers to get users comfortable enough to continue using mobile. I highly encourage all to help build this market to the place you want it to be by participating in this interactive cycle."

Anothe panelist said mobile applications improve experiences for consumers.

"The experience for the user gets more vivid," said Harald Neidhardt, chief marketing officer of Smaato. "Applications give users more variety, easy discovery and a sense of value in terms of the experience they are getting.

Mr. Neidhardt said that the younger demographic uses applications to kill time. The time-span for people on mobile is not too long, so there needs to be a standard for the length of an ad.

There isn't a standard when it comes to in-application advertising.

"We need to provide some way to move into a mobile application, ad-format DNA to facilitate this marketplace and targeting," Mr. Neidhardt said. "This is a new way to increase the inventory on phones."

With a growing audience of application users, this may be a way to turn mobile into a direct response vehicle.�

"People don't mind betting ads on their phones as long as they get something of value in return," Mr. Neidhardt said.�

"Downloads are really booming," he said. "Applications help build profiles on the users."