Editor's Corner

Streamlining the mobile ad buy

Wireless operators are in the midst of major transformation. Once adamantly opposed to the idea of introducing advertising to their subscribers for fear of alienating them, carriers are now tentatively dipping their toes into the mobile advertising waters.

The reason for the change is simple economics. Mobile subscribers have reached their spending threshold for content purchases. One way to grow the mobile content pie and increase data usage is by offering customers content subsidized by advertising.

Sprint was one of the first major carriers to sanction advertising. The carrier teamed with Enpocket last fall and introduced banner ads on some of its content partner sites. Verizon Wireless is also taking tentative steps in that direction as is AT&T (formerly Cingular Wireless), which early this year said that it plans to roll out mobile advertising initiatives but declined give any specifics.

But before mobile advertising can be deemed a success, the industry must first figure out how to streamline the disjointed mobile advertising ecosystem. 

Mobile ad formats are fragmented--advertisers can buy a WAP-based banner ad, launch a text messaging marketing campaign, insert an ad into a mobile search platform, advertise to a mobile community or buy a mobile video ad. But all these ad purchases require a different platform and usually involve a different set of players. Operators have enlisted the help of a variety of mobile ad platform vendors but few are equipped to handle multiple types of ad buys.

In fact, just purchasing the ad inventory can be a challenge. Some operators want to control the ad buy and are hiring sales forces to grow this new medium, while others are just taking a cut of the revenue and letting their advertising platform partner handle the ad sales.

One firm I recently spoke with is hoping to streamline the mobile ad scenario by bringing together publishers, carriers and advertisers. The start-up, called Millennial Media, is headed by President and CEO Paul Palmieri.

Palmieri is a familiar name in the mobile content world--many of you probably remember him from his days at Verizon Wireless, where he served as executive director of business development and programming and helped architect the carrier's V CAST entertainment service. Palmieri believes that Millennial's MYDAS platform will unify the fragmented mobile ad ecosystem, serving as a one-stop shop for all types of mobile advertising. Of course, Millennial will be competing against some other well-known ad platforms such as Third Screen Media, which has made already made inroads with several big brands.

Nevertheless, Millennial has the right idea--delivering ads across the various mobile platforms and eliminating the fragmentation. With this type of progress, mobile advertising may quickly gain credibility with advertisers and big brands.

P.S.  I'm very pleased to be joining the FierceMarkets editorial team and working with a pro like Jason Ankeny.  Please send me your comments, criticisms and ideas. - Sue