Wednesday, July 25, 2007

Will dynamic ad push free mobile gaming?



Can dynamic advertising and marketing push make mobile gaming free and by that reaching all of us? TheMarker, a leading financial Israeli newspaper, reports today that the Israeli start-up company innerActive has just completed a capital raise of $1.5M from "private investors". It was just two weeks ago, on July 12, 2007, that Israel's largest mobile operator Cellcom has announced the completion of its first ad-funded mobile games service powered by new technology from innerActive.

The new Cellcom service showed results of 44% Click-Through-Rate (CTR) and 19% Acquisition Rate for Mobile Advertising Campaigns, indicating a breakthrough in marketing via mobile phones. I guess this has pretty much done the job with those "private investors".

As I wasn't participating this pilot (even though I am a Cellcom user!) here is how it actually worked according to an official press release from innerActive:

As integrate to Cellcom’s system innerActive's solution "dynamically inserted ads and marketing content for product placement within the games". Yet, as opposed to traditional mas-media advertising models innerActive's mobile in-game ads were "targeted and segmented in real-time according to each user’s profile, behavior and responses". In addition, "mobile coupons and other incentives were offered for conversion and cross-over to other media channels like websites and point of sells".

In marketing terms the new model used in the trial has proved to be effective and feasible to all the players. On average, according to the results of this trial, a trend of 10 times higher game downloads per user was observed, comparing to the pre-pilot download results. Adi Cohen, VP Marketing of Cellcom said:

"We succeeded to promote thousands of new users, that are not heavy gamers, to consumed and enjoyed games. The advertising-marketing stimulus trial confirms its effectiveness to all parties that took part in this project. This mobile advertising is working and shows far-reaching consequences for the mobile industry.”

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