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Mobile ads get personal
Mobile advertising is set to evolve. Personalized content is being trialed in a world first, and the early signs indicate a promising future for this new business model.

Today's consumers are already responding to short-code ads and are accessing content and applications in greater numbers than ever before. Mobile operators are currently sending the bulk of SMS ads, but brand advertisers are expected to ride on this success and promote the development of customized mobile TV advertising.

Ericsson, in conjunction with the Norwegian Broadcasting Corporation (NRK), has kicked off a two-month trial of customized mobile TV advertising. This world first sees advertisements tailored to a user's age, gender and personal interests. Content will be provided by agency partner Proximity Oslo, and span an array of formats including videos, banners and branded downloadable content.

Trial volunteers will have access to NRK's two TV channels, five radio channels and a made-for-mobile TV program that allows users to upload content and interact with the show via voting or chatting. Content will be accessed via a downloadable client - a Java application providing fast channel-switching, interactivity and the new personal advertising features.

Gunnar Garfors, director of Development at NRK, says this new form of advertising has already generated interest from local and international brands.

"Every single one has said it is something they want to be part of," he says.

"We have a great opportunity here. We're a public broadcaster, which means we can't show adverts on regular TV. But we are allowed to show them on mobile TV, so this is a new revenue stream for us."

Paul Goode, senior analyst and vice president of Product Development at research firm M Metrics, says: "The consumption of mobile content is reaching saturation point and we believe one of the barriers is price. Mobile advertising can help lower the price of content or eliminate the cost altogether in some cases."

Personalized content ensures its relevance to individual users. It involves viewers who, by their interaction, invite ads tailored to their particular lifestyle. In this way, it differs significantly from spam.

A recent Ericsson poll of 37 mobile, media and advertising industry players revealed a significant interest in mobile ads, with retail brands particularly intrigued by the interactivity and personalization.

Kurt Sillén, vice president, Ericsson Mobility World, says: "This has big potential. Some people estimate the market will be worth more than USD 20 billion by 2010.

"Customized mobile advertising adds value to existing mobile TV services. Our solution makes it possible for viewers to interact with their trusted brands, and it provides the advertising industry with an innovative, high-involvement, customer marketing tool."