Mobile advertising is continuing to gain attention from the industry, with panelists at the Mobile Entertainment Summit viewing it as a good way to get a return on the investment of producing content, reports RCR News. “Programs typically bring an 85% return on investment to content providers, whereas wireless carriers have demanded upwards of 50% of revenues, said Michael Stroud, CEO and co-founder of iHollywood Forum Inc…Hence, the tremendous interest in mobile advertising as of late. Many view it as a logical component that will help content vendors regain some of the revenues lost to wireless walled gardens.”
Michael Kernan, VP of talent agency ICM, reckoned that companies were willing to put money into mobile advertising and paying for mobile content would eventually cease as it all became ad-supported. This theme is becoming more and more common, although I think the key word is “eventually”. Doug Craig, VP at Discovery Communications, said that advertisers aren’t going to spend on mobile until they know what they are going to get in return — they don’t care how many people are signed to a particular service, they want to know how many actually use it and how often. In a different piece RCR News reports on a deal between TV viewing measurement company Rentrak and mobile TV provider Hiwire for a trial to measure total viewers of video programming and video ads on mobile phones, with an eye to using the data to attract advertisers. The trial will be in Las Vegas this summer.
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