On December 10th, nearly six months after the launch of MSN Mobile, Microsoft began displaying ads to MSN Mobile users in the United States. Now available in the United States to any mobile phone user, MSN Mobile provides customers with one-stop access to e-mail, news, local movie listings, maps and directions, as well as Windows Live™ services such as Windows Live Hotmail®, Windows Live Messenger, Windows Live Spaces, and Live Search. Microsoft has already been selling these types of ads in Western Europe, and now is looking to tap into the growing US mobile advertising business by allowing advertisers to extend their brand into a new platform.
This launch follows other recent Microsoft mobile activity such as several purchases of players in the mobile space – one being ScreenTonic, a leading European mobile advertiser. The other is MotionBridge, a mobile search provider. Microsoft is looking to cut a bigger slice of the mobile advertising pie, which is estimated to reach $5 billion over the next 4 years.
Increasingly, mobile devices are outfitted with GPS transceivers that broadcast a user’s location. This, in conjunction with consumer data, makes for an appealing ad targeting model, but also raises privacy concerns. In our last issue we discussed Ask.com’s announcement of the AskEraser, illustrating how important privacy concerns are and the lengths that engines are going to in order to protect those concerns. This advance in technology pushes Local Search to the small screen, making targeting capabilities more granular. There are concerns regarding the storage and use of this location and behavioral data since the guidelines that apply in Search Engine Marketing and Display Advertising don’t explicitly apply to mobile device users. It will be interesting to see what hurdles Microsoft has to clear in order to resolve this issue.
Millions of users are now able to access the mobile internet, and marketers have the challenge of finding them. Those looking to test mobile ads should consider several factors before making their decision. First, it’s important to understand the difference in look and feel of ads on mobile devices. You have to be prepared to change creative just for mobile. It’s also important to make sure you have either a WAP-enabled site formatted for mobile browsers or are able to have a number to allow users to contact you directly. Lastly, you need to understand if your product is right for mobile. Certain sectors are probably not a fit for mobile at this time, while others such as e-commerce, stores, and news are perfectly suited to capture this audience.
Article by Luigi Ferguson