Nielsen scoops up Telephia to bolster mobile play

The Nielsen Company finally made an aggressive move into mobile, agreeing to acquire market research firm Telephia Inc. for an undisclosed sum.
Nielsen initially launched an effort to track mobile data usage in March 2005, but Nielsen Mobile saw very little public activity for more than a year. The company launched a RingScan service late last year, tracking ringtone sales, and Nielsen several weeks ago unveiled its first product to measure mobile content usage, dubbed Mobile Vector.
Telephia, meanwhile, has steadily gained traction in the early days of mobile data services. The San Francisco-based company said it serves more than 100 customers in North America and Europe including carriers, handset manufacturers and content providers, and has partnered with AOL subsidiary Third Screen Media Inc. to help advertisers deliver targeted marketing messages to wireless users.
The Nielsen-Telephia deal is expected to close in third quarter.
The Telephia acquisition gives Nielsen a firm foothold in wireless just as carriers and others begin experimenting with mobile advertisements. Analysts say accurate consumption data will be critical for wireless companies looking to tap into vast marketing budgets.
“As media content increasingly moves from television to the personal computer to the ‘third screen’ of the mobile device, it is essential that we measure all platforms,” said Nielsen Executive VP Susan Whiting. “Building on the compatible strengths of both companies enables us to provide more complete consumer insights to clients around the world.”
Interestingly, Telephia is in the midst of a patent-infringement suit against M:Metrics, a Seattle-based rival that also has built an impressive list of clients. Telephia filed the suit last year, claiming M:Metrics’ smartphone-metering software violated its intellectual property rights.
Will Hodgman, who serves as president and CEO of M:Metrics, was a key executive at Nielsen’s online audience measurement division.