Comments for Borrell's Blog http://blog.borrell.biz Borrell Associates: Tomorrow's Media, Understood Today Thu, 28 Aug 2008 16:32:49 +0000 http://wordpress.org/?v=2.0.4 Comment on MOBILE (WIRELESS) ADVERTISING by Jim Kerr http://blog.borrell.biz/2007/08/14/mobile-wireless-advertising/#comment-10650 Wed, 15 Aug 2007 16:59:08 +0000 http://blog.borrell.biz/2007/08/14/mobile-wireless-advertising/#comment-10650 Gordon, I think there are two issues you miss in this post. First, you point out the lack of cell phone screen real estate presents an opportunity only for brand advertising, but that ignores the interactive aspect of cell phones, where SMS messaging can be used to deliver a digital coupon. Coupons can most certainly be local and are definitely not brand-only advertising. While you are correct about display advertising, interactive advertising appears to be quite effective via a cell phone. The other point I take issue with is your point that the cell phone will follow the cable model. That ignores the essence of java- and web-enabled devices. You can currently download applications on your cell phone that directly bypass carriers, and this will only get more common as phone technology improves. This is obviosly radically different than cable companies. Google Maps is probably the best example of this. The application is entirely carrier independent, but powerful in its ability to provide mapping to people who need it most--those out traveling. It is a short step from the application to serving advertising within it. The Apple iPhone, which is probably better described as an MVNO service rather than an AT&Tdevice, is another good example. The content on the phone is being explicitly built around its robust web browser. Carrier content is completely irrelevant. That said, I agree with your overall point: Mobile advertising is early in its infancy. All the effort today seems to be about using it as either added-value for existing advertisers or as a slight premium on existing advertising deals. This is a far cry from mobile-only campaigns, which won't be common until the distant future, as you correctly point out. Gordon, I think there are two issues you miss in this post. First, you point out the lack of cell phone screen real estate presents an opportunity only for brand advertising, but that ignores the interactive aspect of cell phones, where SMS messaging can be used to deliver a digital coupon. Coupons can most certainly be local and are definitely not brand-only advertising. While you are correct about display advertising, interactive advertising appears to be quite effective via a cell phone.

The other point I take issue with is your point that the cell phone will follow the cable model. That ignores the essence of java- and web-enabled devices. You can currently download applications on your cell phone that directly bypass carriers, and this will only get more common as phone technology improves. This is obviosly radically different than cable companies.

Google Maps is probably the best example of this. The application is entirely carrier independent, but powerful in its ability to provide mapping to people who need it most–those out traveling. It is a short step from the application to serving advertising within it.

The Apple iPhone, which is probably better described as an MVNO service rather than an AT&Tdevice, is another good example. The content on the phone is being explicitly built around its robust web browser. Carrier content is completely irrelevant.

That said, I agree with your overall point: Mobile advertising is early in its infancy. All the effort today seems to be about using it as either added-value for existing advertisers or as a slight premium on existing advertising deals. This is a far cry from mobile-only campaigns, which won’t be common until the distant future, as you correctly point out.

]]> Comment on The Albatross of Convergence by Scott Petersen http://blog.borrell.biz/2006/11/03/the-albatross-of-convergence/#comment-8 Thu, 30 Nov 2006 17:01:50 +0000 http://blog.borrell.biz/2006/11/03/the-albatross-of-convergence/#comment-8 While you may have stirred up some controversy among the TV managers at the conference, you made me very happy with this blog post. My company works with TV stations in creating online revenue streams (on a contigency basis) within classified vertical segments (employment, real estate, auto, etc.). Being a former Online Director for Gannett Newspaper Division, and now working primarily with TV stations, I am amazed at two things: 1)The untapped revenue potential that market leading tv stations have in front of them with their online presence. 2) Their incorrect, but strong assumption that upselling video spots to current advertisers is the key to driving long term online revenue growth. Until newspapers separated out their Online divisions, staffed internet only departments with proper sales resources, and backed the Internet operations with top level support, they too had limited success. While the easy upsell (would you like online with that?) has allowed them to capture the lion's share of local online ad dollars, they too are in real trouble if they don't reinvent their strategy to reach and satisfy customers beyond their current advertiser base. TV stations, Newspapers, or any other online publishers will be far better off when the Online divisions of these companies are truly separate. Then and only then will they fight for opportunity and rid themselves of the fear of revenue cannibalization. While you may have stirred up some controversy among the TV managers at the conference, you made me very happy with this blog post.

My company works with TV stations in creating online revenue streams (on a contigency basis) within classified vertical segments (employment, real estate, auto, etc.). Being a former Online Director for Gannett Newspaper Division, and now working primarily with TV stations, I am amazed at two things:

1)The untapped revenue potential that market leading tv stations have in front of them with their online presence.
2) Their incorrect, but strong assumption that upselling video spots to current advertisers is the key to driving long term online revenue growth.

Until newspapers separated out their Online divisions, staffed internet only departments with proper sales resources, and backed the Internet operations with top level support, they too had limited success. While the easy upsell (would you like online with that?) has allowed them to capture the lion’s share of local online ad dollars, they too are in real trouble if they don’t reinvent their strategy to reach and satisfy customers beyond their current advertiser base.

TV stations, Newspapers, or any other online publishers will be far better off when the Online divisions of these companies are truly separate. Then and only then will they fight for opportunity and rid themselves of the fear of revenue cannibalization.

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