The world's first trial of personalized mobile TV advertising has proven its effectiveness with a positive consumer response. The trial was conducted by Ericsson (NASDAQ:ERIC) and the Norwegian Broadcasting Corporation (NRK).
The results of the three-month trial, which have been processed by M:Metrics, show that the average click-through rate reached an amazing 13 percent, and the average viewing time of each mobile TV user more than doubled - to seven minutes per session - when users interacted with customized ads.
The trial also showed this behavior was sustainable in terms of the click-through rate and session times because usage was consistent throughout the trial. Almost half of the users were 30 to 44 years old, followed by those 18 to 29 years old. Participants identified entertainment and music as their most common interests when starting in the trial.
Advertisements in the trial were interactive, customized to ensure their relevance to individual users, and tailored to the user's age, gender, location, and personal interests. Advertising content also spanned an array of formats, including videos, banners, ticker texts, and branded downloadable content.
Gunnar Garfors, Director of Development at NRK, says: "We aim to provide our viewers and listeners with content that is relevant and of interest to different target groups. The same should apply to advertisements. New functionalities such as fast channel-switching between seven TV and radio channels make content, ads and services as accessible as users expect."
Kurt Sillén, Vice President, Ericsson Mobility World, says: "The trial lays the foundation for a mobile TV advertising business model. For broadcasters and operators, the mobile TV application results in increased traffic and new revenues from advertising and paid interactions. This opens the way for new advertising formats, widens target groups and builds customer loyalty while giving end users an enhanced TV experience."
Paul Goode, Vice President at M:Metrics, says: "Previous research from M:Metrics has shown that pricing is a major deterrent to the adoption of mobile TV, and that up to 41 percent of mobile TV consumers would accept advertising-subsidized services. The results of this trial confirm the willingness of viewers to embrace advertising. This is excellent news for the growth potential of mobile TV audiences."
The trial started in Norway in December and is open to the public. Volunteers are able to access three NRK TV channels and four of its radio channels. A made-for-mobile 24/7 sports TV channel is among those available during the trial. Customers may use their handsets to interact with the show's host via voting and chatting, and can contribute content by uploading photos and video clips.
Content and services can be accessed via a downloadable client, a Java application providing fast channel switching, interactivity and the new personal advertising features.
The new interactive mobile TV advertising application is an end-to-end solution based on existing technology. It enables mobile phone users to watch live or on-demand streamed TV programs and interact with their favorite brands or shows.
The trial is being run over existing mobile network infrastructure and uses current, commercially available mobile phones.
NOTES TO EDITOR
Ericsson and NRK launch world first - customized mobile TV advertising:
A photo is available at http://www.nrk.no/img/616735.jpg
Mobile TV gains global traction:
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at www.ericsson.com
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Media Relations
Phone: +46 8 719 6992
NRK is the biggest media institution in Norway, with national TV and radio channels, as well as major web and WAP sites. The public service broadcaster has been a leader when it comes to mobile content and interactive services in Europe since 2000. Read more at: www.nrk.no
M:Metrics is the mobile market measurement authority. As the leading research firm to measure the audience for mobile media, M:Metrics provides the most accurate metrics on actual mobile content consumption by applying trusted media measurement methodologies to the mobile market. M:Metrics' monthly syndicated data service gives clients the critical insights and intelligence required to inform smart business strategies and the competitive benchmarks needed to evaluate the performance of competitors and partners. M:Metrics is a private, venture-funded corporation headquartered in Seattle, with offices in San Francisco and London. Read more at: www.mmetrics.com