Counting eyeballs and ad dollars

Counting eyeballs and ad dollars 
As I write this I'm at Denver International Airport, awaiting my flight to Las Vegas for the National Association of Broadcasters convention, where I'll be moderating a panel on mobile advertising and marketing at iHollywood's co-located event, MoTV. 

I spoke with several of my panelists in preparation for the event, and I continue to hear one common theme: experimentation. Advertisers, content firms and mobile operators are still experimenting with mobile video business models--ad-supported, subscription or a hybrid of both.

Perhaps the biggest development in mobile advertising is that the large content players are getting in the advertising game. Last month NBC Universal and MTV Networks both announced they are adding advertising to their mobile content. NBC is testing 30-second spots, while MTV said that it has sponsorship deals with Pepsi-Cola and Intel. It's no surprise MTV's content attracted such high-profile advertisers--the company's mobile video clips are widely regarded as the most popular among mobile video viewers, many of whom fall into the 18-to-30-year-old demographic group.  

Although mobile video viewers are still limited, the base is growing. And that's encouraging. According to Telephia, at year-end 2006 there were 6.2 million mobile video subscribers in the U.S., up from 2.5 million at the start of the year. Apparently 6.2 million potential eyeballs are enough to get the big-name advertisers to stand up and take notice.

But many challenges still remain. For example, how are media companies and wireless operators measuring and reporting the results of these advertisements? And what format is best for mobile video? NBC is testing 30-second spots, but some believe that shorter spots--10 seconds or less--are more fitting for a mobile environment, particularly if consumers are paying for that viewing time.

The Weather Channel has long been an advocate of mobile advertising but Louis Gump, vice president of mobile at The Weather Channel Interactive, says that the company isn't ready to support advertising in mobile video. "We don't have the reach yet," Gump said. "Advertisers want reach."

Look for more of my coverage on mobile video from the NAB show in Wednesday's newsletter. - Sue