What's Ad All About, Alpheus
What's Ad All About, Alpheus
You've all heard of Blyk, the virtual mobile operator launching later this year. They give you free calls and messaging, in the hope that they can guarantee income from mobile advertising.
The operator will be supporting user-generated classified ads which will allow individuals to define and send ads to other users.
Bit risky, don't you think? Especially when so many others have come unstuck on similar gambles.
Not so, says Ray Tarling, head of mobile content delivery at Alpheus Solutions, a consultancy to mobile operators and content providers.
The mobile advertising market needs new ideas to be tried and approaches to be optimised based on consumer response, it is clear now that there will be a successful business model in this space, he tells Mobbed.
Yes, but this doesn't sound too convincing does it?
"User generated advertising adds another dimension to the Blyk business model. Operators have been keen to generate advertising based revenue as an alternative to direct charges or subscriptions, and consumers have expressed their approval of advertising supported services; indeed customers are familiar with this model from their web surfing experiences,” he says.
Other initiatives have shown that the mobile advertising model isn't easy to crack. The key seems to be obtaining a critical mass of users and keeping costs low. However, user generated advertising is a competitive market and until Blyk has the users to make advertising with them worthwhile, they may find their customers sticking to more traditional electronic and print channels.
“If Blyk succeeds they will need a strategy to face the threat of being copied by the current operator establishment who will have the benefit of starting with large numbers of users and having huge marketing machinery,” says Tarling.
Contact them here www.alpheus.com
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