I've been a contributor to Mobile Messaging 2.0, a corporate sponsored blog covering the mobile industry since September 2007. Last month Beeline Communications and the blog's sponsor, Airwide Solutions, chose me to be the new Managing Editor of the blog which has 12 paid contributing analysts of the mobile industry. Click here for my most recent post at MM2, "China's Black Market iPhones surpass 1 million.
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Velti Maneuvers into China's Mobile Marketing
Chinese mobile advertising startup CASEE has closed an investment from London-based mobile marketing company Velti plc. The investment was worth up to $6 million, according to the
announcement from Velti. CASEE operates an on line mobile advertising marketplace at CASEE.cn Riding on the success of AdMob neutral off-deck posture, some have characterized CASEE as the AdMob of China. Here's the value proposition: Wireless application protocol (WAP) site operators go to CASEE and sign up to run ads on their sites, while advertisers can bid for ad space through CASEE. So within the vernacular they provide inventory to those interested in mobile marketing campaigns. 
This caught my interest for all the obvious reasons--a Chinese company again leading a mobile initiative and gaining western attention, a mobile marketing play, international M&A--but mostly since I know Velti, the company which invested in CASEE.
Velti is run by CEO Alex Moukas who I had the chance to interview at CTIA in April. Velti is the leading mobile marketing company with over US$60 million in revenues--not the start up AdMob; a listing on the London AIM exchange makes it a far more robust public company. How many other mobile marketing companies are public? None other that I know of. The company's been around for 8 years, starting out in the mobile messaging space and migrated up as the market has evolved. Mobile advertising is one of the most effective ways of driving fuller branding efforts especially within emerging markets such as China, where most access the Internet via a mobile WAP page. Good play for Velti.
Listen to my interview here with Velti CEO Alex Moukas: (x1, 10:30)
Mutual Utility
Velti's investment is a good play for them to enter into the fastest growing Chinese mobile market. CASEE is serving over 500 million ads a month on over 3,000 WAP sites in China. The company currently has 25 employees, but expects to reach 45 by the end of 2008. The company's publishing partners include Sina, Sohu and QQ. The announcement said that Velti will be able to extend CASEE's mobile advertising technology outside of China and that the two companies will cooperate on product offerings and development. CASEE's founder and CEO is Xin Ye, former CTO of Linktone (NASDAQ: LTON).
GOOD BONES & SMEs
CASEE was founded in 2006 by a local Chinese team headquartered in Beijing. Advertising clients span MNCs such as Kodak and General Motors to local, small and medium-sized enterprises. These Chinese SMEs are the real value here since that will be the primary source of advertising growth via the mobile channel in China for the future. Using their special sauce, it matches bids for advertising space against inventory offerings through targeting to maximise the price received by over 2000 content publishers from their WAP sites from advertisers. In short, the basic mobile marketing advertising model currently employed across the globe. The real value here is the access the CASEE founders have in the Chinese market, including it's CEO, Xin Ye, who was the CTO of Sohu. The founders and board have extensive experience in the local market, having held senior executive positions at US-listed Chinese companies like Sohu, Baidu and Linktone. CASEE serves more than 500 million ads every month to mobile phones in China and receives its revenues from advertisers.
I think both companies will fare well from the linking investment. Clearly it provides both a complimentary and substantial leg up, into mutually interested markets: one to go outside of China, the other the chance to get into China. Looks like a: win-win. Watch both.
Here's a an audio (scroll down) primer on the Mobile Marketing Association from its President, Laura Marriott. I had the distinct pleasure--and fun--of meeting and interviewing the President of the Mobile Marketing Association at CTIA which you can listen to here. 
Laura's s view of CTIA
...not much emerged at the show from the mobile advertising segment. Although there was increased interest and attendance from the agency and advertising arena reflecting a growing understanding and recognition of the importance of mobile in the marketing mix. Meaning: good things to come in mobile marketing.
What is the MMA?
Good question--a laurel which Laura tossed my way twice in the interview. MMA is a global trade association across the entire mobile marketing ecosystem with regional representation in the US, Europe, Asia and Latin America reflected by 600 companies in the business drawn from across the world. The Mobile Marketing Association is the premier trade association that strives to stimulate the growth of mobile marketing and its associated technologies. It's membership is comprised of drawn from the worlds of advertising agencies, advertisers, hand held device manufacturers, carriers and operators, retailers, software providers and service providers, as well as any company focused on the potential of marketing via mobile devices.
Is the MMA important?
Yes. As consumers increasingly use their handsets to browse the Web, it's no wonder that advertisers see mobile screens as valuable turf. In the US, cell phones haven't yet proved to be the same kind of advertising bonanza as the Internet, mostly because of the wireless industry's more controlled nature and the slower adoption of text messaging and mobile Web services. But momentum is gradually building, especially behind text-based marketing campaigns, which are more prevalent in Asia and Europe.
According to research firm eMarketer, worldwide spending on mobile advertising totaled $2.7 billion last year and is expected to hit $4.6 billion in 2008, rising to $19.1 billion by 2012. In contrast, eMarketer projects that Internet advertising in the U.S. alone will reach $25.9 billion this year. Global brands drive much of it since the advertising business is driven by global brands, while the types of marketing varies region to region. More text based in other parts of the world than the US, with use of sponsored Peer to Peer messaging for example in places such as India and Africa.
MMA Boards in each region set the regional focus while following global advertising guidelines and policies. Overall goal of the MMA is to provide ease of use of for global brands to enter the market on a global basis, not a carrier to carrier, country to country basis. Part of this is promoted through 8 events across the globe sharing as a best practice identification and inspiration process source. For those who are interested in pursuing the MMA best practices, there are also lots of white papers and other free downloads at their website.
The Elephant's Legs
MMA dances between the legs of two industry elephants, advertising and mobile. Through the deft leadership of Ms. Marriott she's been able to wrangle these beasts and have them cooperate successfully. Challenges exist such as extending reach and fully using the feature rich phones for advertising, but through education of brands as well as consumers on leveraging the technical sophistication of mobile phones the conversation around mobile advertising has made great strides. As Laura rightly concludes: "Mobile advertising is going to be hot this year!"
Walk & Text Wounds may be the next front in the attack on texting by the powers that be within the
Nanny state? Just wait until state legislators get wind of an investigation by the Star Newspaper, one of those cheeky London Fleet Street papers known for their bodacious page 3 girls, that's the front page on the right>>>>>>>>>oh, you already noticed?
According to the Star's crack investigative efforts, over 6 million Brits were injured in some way because they were so immersed in the experience of sending an SMS text message they failed to look up! Most seemed to be situationally unaware of such things as lamp posts and other immovable objects including garbage cans (trash bins in Brit speak), car barriers (bollards), or stepping off the curb (pavement).
Broken Bones & Fractured Skulls, oh my!
These were not simple "slip and falls" or Text Messenger's Thumb which I've written about before, but ranged from broken noses to fractured skulls. The survey was sponsored by the British information (directory) service provider 118118, which is quite 
adept at driving awareness with their off beat marketing. BONG!
According to the Daily Star, there are now plans to set up "mobile lanes" akin to bicycle lanes for text addicts to skirt around dangerous spots.' Now that's a good mix, speeding bikes and wandering pedestrians looking down at their iPhone. Layer in all those who are listening to their "life soundtrack" with iPod ear buds, and CRASH!
According to an interviewed activist from a group called Living Streets, who warned: “Our pavements are increasingly becoming obstacle courses.” Huh, what's changed here in regards to sidewalk topography?
Aha, here's the culprit--commerce. To protect and serve the texting public 118118 has launched a pilot project protecting such lame texters by installing texting bumper guards on offending lamp posts and other obstacles in London's Brick Lane starting yesterday. 118118 spokesman William Ostrom said: “Hopefully this scheme will reduce the risk of embarrassing injury.” Scheme indeed.
Very clever way for 118118 to get their brand "close" to their consuming public and very consistent with their intruiging brand positioning!
So what do you think of 118118's innovative way to bring attention to their brand, slick advertising or sorry excuse?
Duh! Teens are “Super Communicators”
Research from the Pew Internet & American Life Project finds that that 93% of teens use the internet, essentially using the web as their social palate—the place where they can interact, share their creativity, and tell stories. 64% of online teens ages 12-17 have participated in one or more among a wide range of content-creating activities on the internet, up from 57% of online teens in a similar survey at the end of 2004.
28% of the entire teen population are super-communicators. These are teens who employ multiple 
communications options for dealing with family and friends, including wireline phones, cell phones, texting, social network sites, instant messaging, and email, and surprisingly they are more likely to be older girls. This breaks with the past “3 Gs” marketing perspective of the mobile industry, i.e., “Games, Girls & Gadgets” targeted at teenage boys.
The reality of the mobile business is that sub-twenties consume more sophisticated communications tools than a 40 year old corporate executive who is completely price elastic when it comes to communication costs. This is quite a disruptive influence which goes well beyond the mere “teen texting” phenomenon which is most often reflected in the media mobile advertising culture.
Result of the Bedroom Culture
Face it, kids drive the world. If you want to understand the future of technology, look to why and how technology enters into the lives of tomorrow’s customers. If you really want to see the future, examine how childhood has changed rather than how technology has changed.
Children and young people’s engagement and experience of “the world” has radically changed. The difference from children of the past is now their “world” isn’t the real world which most of mankind has experienced; it is the “virtual world.” New media and technology have clearly shaped their social life, but it hasn’t been the cause of this. It in fact is the result of something very different.
Consider how perceived risk has changed childhood. The rising concern of anything remotely or horribly risky befalling children has lead to the decline of kid’s street culture. When I was growing up in the 60s, the ringing pronouncement of my mother whether we were either in the US or France during my summers was “GO OUTSIDE AND PLAY!” I’m sure that even in cave man days, kids were either lashed to their mothers while gathering, or following their fathers while hunting. But today’s industrialized developed child socializes from the confines of his/her bedroom, which has made technology critically important to their cultural connections. Technology isn’t the cause, it is the effect.
As a result, most kids are fairly isolated. Digital technologies such as the mobile phone and easy access to the internet have enabled adolescents to overcome their experience of isolation through connected communication with their peers. Parents look as though mobile communications is a technology tool, while the children use it to gain freedom from parents/adult supervision and reach out. Kids engage in tribal behavior using a separate language as a code such as shortened SMS, thus avoiding any adult interpretation. Naturally these connection technologies make them passionate about the technology. It connects them with peers, enables them to be entertained. It gives them ways of interaction, experiment, to progress, to grow up.
Lagging Mobile Marketing Message
The rise and commercial attention on social networking services is a reflection of the reality that kid’s self expression is the biggest problem they have. The reflected results of the problem are the “confluent” use of technology and solutions to express themselves such as You Tube, My Space, Facebook, Flicker, IM, SMS, etc. They have created their space to do what they want, which is what we did when we played kick the can, sandlot baseball or spin the bottle. Mobile phone personalization through ring tones and skins expresses who they are. Kid social hierarchy is now through who you relate to and reflected in a buddy list, which is a new social status marker.
In order to broader capitalize and harvest this opportunity the mobile industry needs to be more responsive and reactive to this new evolution of consumers. It is a reflection that marketing to the mobile consumer is not effective to the young, male football viewers (from either side of the Atlantic), nor enterprise based aging baby boomers. It needs to be more engaged on these creative communicators, these Super Communicators which will shape the business in a few short years.
OK. Now its your turn. What do you think of the comfort of today's risk free kids? Do you think 
technology has enabled this or is a demand response to it? Is marketing of mobile communcations lagging this cohort? Comments are very welcome (please!) with the objective of building a community who engages in a conversation. And if you liked the post, please dig, delicous, or stumble to spread the word! Thanks for your readership.
Sprint's Mobile Style
US wireless carrier Sprint has partnered with style guru-esse Stacy London, guest host of "What Not to Wear" on cable' tv's TLC, in launching a new web site with Sprint, http://www.sprint.com/mymobilestyle . The 
mymobilestyle web site is to assist people in deciding what mobile handset fits with with their personal style and help holiday gift buyers find the oh so just right accessory for friends, family and your so-ooh special types.
Seems Sprint is finally recognizing that a mobile phone is the ultimate personal accessory. That makes the 250 million mobile phones in the US the most ubiquitous fashion accessory in history. As to intimacy, consider when was the last time you let your spouse, parents or "pet squeeze" a glimpse of your mobile's address book, or text messages? That's intimate electronics.
From the Fashion Police Constable Stacy: "The mobile phone is literally the one accessory that you display in public every single time you go out. If someone told you that you could only wear one watch for the foreseeable future, or one pair of earrings, I know that everyone would give considerable thought to what they would pick out, so your mobile phone should be no different," said Stacy. "I partnered with Sprint on this project because Sprint understands that your mobile phone is a major reflection of who you are." Well, at least her intentions seem good.
But, clearly a superiour grasp of the obvious. Execution is where it starts to erode...Stacy's Web site features a quiz to help individuals determine their "mobile style," calculated by answering a few questions to determine their interests and tastes. Based on the results, Stacy not only categorizes the site visitor, but also recommends what mobile phone fits her or him best. The quiz categories are: Runway Ready, Superconnected, NRNDNGTXTR, Tuned In, Geek Chic, Biz-Intense and The Ultimate Fan. Turns out I'm a "Biz-Intense."
For example, the quiz first asks for the following line to be completed: "Before I go out, I always..." Candidly it is a little lame and about at the level of a 14 year old girl. And I don't mean the real edgy, fashion forward 14 year old girl trendsetters which are so heavily researched in Japan. At the completion of the quiz, your answers may lead Stacy to say the respondent is "Runway Ready," meaning that the best choice for her or his phone is a very sleek and trendy Touch by HTC. Or Stacy may determine that the respondent is "Tuned In," meaning that a phone with many music features and MP3-player-like buttons such as the MUZIQ by LG may be the right perfect fit. Videos of Stacy then show her demonstrating on mannequins what outfits each category of person, including "Runway Ready" or "Tuned In," might be wearing. Like I said, about the level of a 14 year old girl.
Close to 3 billion phones are in the hands of consumers around the world currently. Do yah think they have been able to make such choices about which they like the most? In a time where User Generated Content and Social Media is changing and upending the entire top down marketing conversation, do you really think that Stacy is adding that much value? OK, it harvests the holiday in-store traffic by giving people something to do while they wait for a salesman. Shelf life of the effort: 90 days max before it disappears.
OK. Now it's your turn. 
What do you think? Is this creative or cruddy in store merchandising of a mobile phone.
China's news media is in full blossom of mobile adaptability. China's rapid economic development and per capita GDP growth has driven vigorous development of the media industry with a growth rate of 11.9% in 2005, 
two percentage points beyond that of China's GDP. In 2006, the growth rate exceeded 12%. Sub-channel growth percolates along, with the Internet, digital television, new media (mobile) and advertising all growing rapidly and especially those industries/companies related to digital TV which are expected to be the core center of investment in 2007. This is all drawn from an interesting Chinese government "blue paper" report released last month by China's MII.
Noteworthy to mobile is the emergence of mobile "newsprint" offerings. Here's a synopsis of its development in China. When the web version of newspapers was first introduced, it looked like galley proofs with no layout and did not suit conventional reading habits. Subsequent PDF versions had newspaper format but were difficult to read. A breakthrough occured in February 2006, when the Zhejiang Ribao Newspaper Group and Peking University launched full digital versions for five newspapers.
The visual interface of these digital newspapers made reading Chinese characters much easier. Chinese read this "mobile newsprint" via digital networks without any trouble, the same way they read traditional newspapers. Much like I read the IHT on my HTC Dash. Then came mobile voice! In March 2006, Hefei Wanbao made use of iFlytek's intelligent digital voice technology to create China's first talking newspaper. Readers only need to download the required software to "listen in" to newspapers of the Hefei Wanbao Newspaper Group via voice calls. They may choose to listen to the news in male or female voice, Putonghua or Cantonese. They can even choose their background music.
The real breakthrough came from Guangdong provence through a Chinese software company, the Guangzhou Ribao Group launched a mobile e-newspaper in late 2006. What makes publishing this mobile e-newspaper attractive is that the price of the technical equipment is efficiently cheap (Rmb2,000 per unit appx. US$ 265), providing a low cost entry into the "New Media" channel. This mobile electronic version of Guangzhou Ribao has a current circulation of 20,000 copies per month.
Yangzi Wanbao launched China's first mobile newspaper in July 2001, but it was not very different from ordinary SMS text messages. Mobile phone newspapers became truly popular following the growth of multimedia messaging system (MMS) format, which makes it possible to read both text and graphics on the phone. In July 2004, Zhongguo Funu Bao (China Women's News) cooperated with China Mobile to provide the first mobile phone version to MMS users. The number of mobile phone newspapers soared in 2006, involving over 10 central newspapers, over 40 mainstream local newspapers and more than 20 newspaper groups.
China's broad newspaper industry has been a lackluster investment segment, with a decline in advertising growth. The plight of the newspaper advertising market has expanded with time, while readership has also been shrinking. The downward market turn in recent years has aroused the concern of both the newspaper industry and the academic community concerned about public civic awareness.
Since tradtional "print" readers have a history of seeing advertisements and newstories sharing a newsprint page, expansion into the mobiel advertising space should be an auspicious omen for mobile advertising opportunities in the context of mobile newspapers as well.
China's newsprint industry may well have found that mobile innovation will lead it to a richer future.
MOBILE ADVERTISERS SHOOT IT OUT AT OMMA
At yesterday's OMMA Mobile event in New York, seven mobile advertising companies had a cage match with six minute presentations, mano a mano. The seven were Amobee, M Pocket, Millennial Media, Grey Stripe, AdMob, Third Screen, and AdInfuse. The winner, my friend Roger Wood SVP of Amobee, "digits down" based on SMS voting from the marketing and advertising attendees in the audience. Kudos to the Roj-ah for a presentation which elegantly and eloquently covered all the value aspects of Amobee's proposition and integration into the carrier domain, while creating the commercial "patois' required in the advertising world. And given that it was the debut day of the "Jesus Phone--it does all things" by Apple, he aptly won an iPhone.
Understanding how analytics illuminate and profile users, with a measure of customer acquisition costs is a key performance indicator for advertising whether it is traditional print, fixed billboard or media such as TV and radio. The same now applies with the emerging mobile advertising channel.
If the real value exchange between mobile and advertising is to be fully capitalized, new data sets need to be developed for the advertising and brand industries that drive this space.
An on-going interest of mine has been how the mobile segment is moving to solve core questions like: a) how many people have been exposed to an advertisement? And (b) how effective is the advertising? These are cornerstone questions to advertising, and nothing has changed for advertising's transfer to the mobile channel.
As part of my quest I had the opportunity recently to sit down with Bango's Anhil Malhotra, SVP of Marketing. Bango is paving the way, working with the Media Rating Council and Mobile Marketing Association, moving beyond simple CPM (cost per 1k exposures), PPC (pay per click), CPC (cost per call) and CPA (cost per action) metrics to establish new audience verification metrics for mobile.
Listen here (8 min)
to my podcast with Anil Malhotra, SVP of Marketing with Bango (recorded at the Harvard Club of New York) as we explore the future of mobile advertising metrics, and how there is no end to the appetite of what people want when it comes precise and concise audience verifiability.
The reality is that mobile provides much more power in the battle from exposure to persuasion to transactions. Find out how.
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