Carriers definitely should have a place at the mobile advertising table. But maybe not too much of a place.
Mobile network operators and their content partners increasingly are looking to advertising dollars to help support flagging mobile data services. While $15-per-month mobile video services and $3 over-the-air song downloads have failed to gain steam, the world of mobile banner ads, SMS campaigns and wireless coupons has gained more attention than a Britney Spears court appearance.
Carriers, of course, are salivating over the potential of the mobile ad industry, which could play a major role in their efforts to recoup billion-dollar investments in their networks. But when it comes to building an ecosystem, the operators should defer to longtime advertising industry types, said John Hadl, managing director of BrandinHand.
“The carriers have a role,” Hadl said during a Q&A at yesterday’s Mobile Entertainment Live event that focused on mobile advertising and marketing. “The problem is when they try to regulate an industry they do not now anything about. I think it’s worth bypassing them if you can.”
Which is not to say that operators should be disintermediated entirely, fellow panelist Courtney Jane Acuff was quick to point out. Acuff, who heads a division of Publicis Group called denuo, said wireless service providers are evolving in how they view mobile ads and the revenues they can bring.
“In the end, the entire ecosystem would benefit from everyone having a seat at the table,” said Acuff. “There are certain things, I think, that the carriers are beginning to understand.”
And the most effective way to deliver those ads is by using them as part of a cross-platform campaign, Acuff said. While mobile-only campaigns may fail to attract mainstream uses, savvy marketers will use wireless to support broader efforts across the Internet, television and other channels.
“Mobile is absolutely best when it is integrated into a larger communications strategy,” Acuff said. “Making it tie to a larger communications goal on the Internet will help a consumer interact” with the brand.
But the wireless industry could take a cue from cable and satellite television, Hadl countered. Operators have done a good job building networks and subscriber bases, but shouldn’t try to determine who gets how much of the pie.
“Think about television; cable,” said Hadl as the session came to a close. “Cable guys lay pipes, they pay content providers, they get you to start watching shows” and let the content providers keep the ad revenues. “In the mobile model, the carriers lay the pipes, they get subscribers, yet not only do they not pay the content providers,” they want to control the ad-revenue splits.
“I’m not looking for the guy who sold me my phone to sell me advertising opportunities,” Hadl said. “It continues to shock me.”