[by Peggy Anne Salz] User-created content and blogging continue to dominate the buzz at World Telemedia in Berlin. But like any discussion of the “next big thing” – the jury is out on the how and when it will pay off. However, there is growing consensus among mobile media companies that brands must get more involved. Consider the rise of MySpace (going mobile via Helio) – and the avalanche of interest from brands – and you can see where this is going.
Peperoni, Germany’s mobile answer to MySpace, counts more than 8 million page impressions per day – a number the Marcus Ladwig, COO of Peperoni, tells me is growing at a rate of 25% per month. Access to so many eyeballs has also excited content companies – who want to advertise to Peperoni’s growing mobile community. While Ladwig can’t divulge the details of the campaigns in discussion, beyond saying that he sees “huge uptake” from mobile companies and advertisers, it’ll be a hugely interesting test bed for new approaches to boost customer loyalty.
So far, discussions with brands focus on banner placement (on the peperonity.com mobile pages that list the most popular sites according to users, hits, or other sites just voted by user to be the coolest) and putting links on sites relevant user-created sites (such as music download offer on sites inhabited by die-hard music fans). But moving forward, Ladwig can also imagine other business models. Just as Pizza Hut has sealed a deal with Everquest in 2005 to allow multi-player gamers to order pizza without leaving the game, brands could offer Peperoni mobile community members similar amenities. After all, if we’re going to exist in mobile communities, we’re likely to expect many of our real-life needs to be cared for in our virtual worlds.
As Ladwig puts it, the future business model is really about gaining competitive advantage through building mindshare. Providing mobile communications and content is part of this strategy, but it must also be about enhancing users’ virtual lives. “We’re pleased with the number of companies coming to us and asking to advertise to the community, but we are puzzled why still more major brands and media companies don’t [harness] mobile community to build brand loyalty.”
This indifference is even more baffling if we consider recent research from NewBay, a company that supplies blogging solutions. Its 12-month study of four operators using its mobile blogging solution found that not only does blogging increase operators’ messaging and data revenues, it also reduces churn. Read between any vendor spin – and the message is clear: connecting with bloggers builds brand trust.
[Another interesting example worth mentioning is Mars, Incorporated in Singapore. The global food producer and maker of Cesar dog food products offers consumers the tools to set up their own “doggie blogs.” Mars is clever; it knows that encouraging consumers to share their life experiences is another way to build trust – and market share. After all, users are less likely to switch brands after they have entrusted the Cesar site with photos and diaries of their dog’s daily life.]
While Ladwig argues that many major media companies are missing out on a business opportunity here, he’s not worried. His major concern is how Peperoni can scale to meet the demand by users and a few clever media companies that get it.
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