Ericsson today kicked off Malaysia’s first Mobile Advertising seminar, focusing on advertising-sponsored multimedia content as a key funding element, in an era where mobile content and services are becoming more prevalent, and operators and other industry players are already beginning to jump on the mobile advertising bandwagon.

Increased network traffic and data revenue are the two immediate revenue opportunities for operators. Content subscription fees, advertising and paid interactions such as games and videos, are opportunities for operators to deliver richer service to their customers. According to Manoj Menon, partner and Asia-Pacific managing director at global growth consulting company Frost & Sullivan, mobile advertising can be made more compelling than just the conventional SMS coupons, periodic scrolling banners or flashing icons splashed across tiny mobile screens.

“We are seeing the rise of a new trend in this area, but there are also challenges that need to be overcome before mobile advertising can truly take off. This includes making mobile ads non-intrusive to subscribers and establishing common standards to measure the effectiveness of such ad campaigns,” he said. “Locally and globally, we see this to be a real potential revenue stream for mobile operators and advertising companies.”

Frost & Sullivan estimates the total mobile advertising revenue in Malaysia to rise from RM10.4 million forecasted at the end of 2008 to RM175.5 million by 2012, at a strong compound annual growth rate (CAGR) of 102.9 percent, as a result of increasing advertising expenditure as well as the shift in choice of new media. This will account for about 2.2 percent of the total mobile data services revenue (RM7.94 billion) in 2012.

“The strong growth will be due to several factors such as greater adoption of premium mobile content, availability of more sophisticated handsets, flat-rate pricing for mobile broadband, wider 3G network coverage and mobile video services,” Menon added.

Matthias Kunze, Yahoo! Connected Life Director of Mobile Monetization, said: “The mobile internet has great potential to be a business-generating model. Yahoo! has long been on the forefront in this area, driving consumer demand and enabling mobile search to be transformed from ‘random’ to ‘relevant’ to one’s business.”

Ericsson takes a holistic approach in helping operators put together advertising-funded multimedia offerings. Elin Elkehag, Ericsson’s Strategic Product Manager for Advertising said: "We're helping operators to take advantage of a business opportunity by providing the technical solutions, and by connecting them to the advertising industry in a smooth and efficient way. We should not treat the mobile platform as a separate entity but rather as a compliment in addition to current mass media."

In 2006, Ericsson and the Norwegian Broadcasting Corporation (NRK) launched a world-first trial of personalized mobile TV advertising, which allowed trial advertisers to employ customized marketing to volunteer mobile TV viewers. Results show the average viewing time of each mobile TV user more than doubled – to seven minutes per session – when users interacted with ads customized to the user’s age, gender, location, and personal interests. Advertisements were interactive, customized to ensure their relevance to individual consumers, and tailored to the age, gender, location and personal interests of the consumer. Advertising content spanned an array of formats, including videos, banners, ticker texts and branded downloadable content.

Other speakers at the seminar included Andreas Vogiatzakis, Managing Director of the OmicomMediaGroup (Malaysia) and David Green, General Manager of Mobile Advertising, Vodafone Australia.

Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 185 million subscribers. The company’s portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of ‘communication for all’ through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm and NASDAQ stock exchanges.
 
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