mobiletech
Mobile Video Ads: Coming Soon?
Filed in archive Location Based Services by tom on January 16, 2006
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The New York Times is carrying a story today about the imminent launch of video ads on mobiles.
Marketers said they were particularly excited about the prospect of eventually using cellphones, many of which are equipped with global positioning systems, to send ads to consumers based on their location. With that information, marketers could, in theory, send pitches from retailers to cellphone users who might be in the vicinity of a store.
The idea of pushing advertisements to handsets absed on their current physical location raises all sorts of issues around privacy and the tracking of indivuduals without consent.

Although

[b]y law, carriers are not allowed to divulge information on a subscriber's location unless that individual gives permission. One idea being floated by carriers and advertisers is to offer consumers incentives, like reduced monthly phone fees, if they agree to receive ads.

Some companies are already experimenting with mobile ads, with ESPN in the US planning on running short video clips from a range of advertisers later this year.
One reason for growing interest in cellphone ads, Mr. Burgess said, is the relatively high rate at which customers click on banner ads on mobile screens. The click-through rate is around 4 percent on phones, compared with 1 percent on the Internet, he said.

Mr. Burgess attributes the higher response rate to a greater ability to aim ads at particular consumers based on factors like time of day and the kind of handset they are using.
Visit the New York Times' website to read the whole article.

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Tags: mobile  ads 
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