by, Lesa Seibert, President, Xstreme Media
There are 4.1 billion cell phone connections worldwide, and with the prevalence of smart phones, the concept of browsing the Web from a mobile phone has gone mainstream. Consider this: Mobile phone carriers are sitting atop a trove of data – not just your name, address, and, of course, phone number but also credit card information, who your friends are, and where you're located at this very moment. Even with privacy regulations, more of this information will become available to marketers as phones are used more like little PCs, creating opportunities for highly targeted ads and other marketing breakthroughs.
Here's what you need to know to get started.
- How exactly do I advertise on a mobile phone? The most common type of mobile ad is a display ad served on a Web page called up on a cell phone's screen. The ads are created for the site's mobile format and may not be the same as the ads you would see if you were browsing the site on a PC. Ads are priced on a Cost Per Mille, or CPM, basis – the price you pay for the ad to be seen 1,000 times.
- How do I buy mobile ads? Most advertisers work with mobile-ad networks, which bring together advertisers and websites that are frequently viewed by phone. Some of the larger players, which are owned by the likes of Google (AdMob), AOL (Third Screen Media) and Apple (Quattro Wireless), will act as full-service marketing shops. They handle the entire process, including technology, the creative content of mobile ads, and the ads' placement.
- What do mobile ads cost? The cost of mobile ads varies due to the different types of ads, and different cell phone platforms. For instance, AdMob, one of the main mobile-ad networks, currently charges CPMs of $12 to $14 for iPhone banner ads.
- What about text messaging? One option is to buy or rent a short code, a five- or six-digit phone number from which you can send and receive text messages. One common way to use a short code is to publish it on a billboard or in a print ad ("Text 51234 for more information") that encourages customers to enter a contest or participate in a poll.
- What does a short code cost? Cellit Mobile Marketing, in Chicago, and Movo, in Florida, sell short codes for $500 to $1,000 per month, plus a one-time setup fee of a few thousand dollars and a charge of 4 cents to 7 cents for each text message. You can also rent a code for as little as $225 per month. Keep in mind that technological standards vary. Nearly every phone on the market is equipped to send and receive texts, but some systems won't let you embed complex graphics or photographs.
- Hiring a professional? There are companies that provide text messaging services that cost you a fixed fee per month or year and provide the short code and software to send your text to not only text platforms but to also convert it to voice and call the customer or to email and sends them an email.
- How do I go after my best customers on a mobile phone? Google has expanded into the mobile world in several ways. Now, it allows companies to buy display ads – ads related to content – on the mobile Web. AdMob claims click-through rates on this type of ad of up to 3 percent, which is quite high. The company charges a cost-per-click (CPC) fee of 25 cents to 30 cents.