January » 2009 » mobilegroove

I've done dozens of podcasts to date, but this one stands out as the one I can listen to again and again. In fact, rather than edit it down, I turned it into a two-part series. Why? Because Tom Huseby, Managing Partner who formed SeaPoint Ventures back in 1997, is an industry veteran who calls them as he see them. A browse through Tom's bio and it's clear he's not one to follow the crowd of lemming investors who rush to the next new thing, only to drop if when the cool factor has gone cold. To the contrary, Tom is convinced early-stage startups can pay-off big if investors stick with them for the long-term. To identify the do's and don'ts for startups in a downturn we started off talking through the business basics, such as the best exit strategies and the opportunities for "kitchen-table startups" - as he calls them - and app developers. Tom's answers are insightful and entertaining - all the more reason to listen in. But the main attraction is Tom's take on what mobile advertising really needs: Engagement. In his view, it's all about providing and managing a one-to-one conversation between brands and people, and he's looking for companies that "get" it. As he puts it: "There are a few agencies that appear to get it, but they und up getting slotted as a mobile agency...What you want to be is a creative advertiser [agency] that uses mobile." Since there are so few on the horizon, the time may be right to start one yourself.

Back with an in-depth look at Singapore-based BuzzCity - a major player in the mobile social network space whose ad-funded myGamma community targets blue-collar workers and the newly-connected middle class across emerging markets - and an exclusive interview with KF Lai, BuzzCity CEO. I caught up KF for a long overdue briefing to connect the dots in his ambitious strategy to - as he puts it - "build the number one mobile portal and Long Tail ad network in emerging markets and possibly the world." BuzzCity's keen focus on serving the "unwired" in developing countries - people whose only access to the Internet is their mobile phone - made business sense from the start, allowing it to chalk up 3+ million users across 80 countries (as of December 2008). But it's the company's clever approach to mobile advertising that makes it the one to watch. Expect a raft of announcements kicking off at Mobile World Congress (MWC), allowing app and content providers to get more reach (and thus more revenues). This is all I can say under NDA, but think 'social graph meets viral-marketing' and you're definitely on the right track.

I kick off this year with more opportunities than ever to deliver good ideas to a great audience. I'm pleased that MSG has a central place in the exchange, and I invite you to reach out to me directly or arrange a briefing with my PA Andrea Henninge - andrea@msearchgroove.com . MSG has also partnered with bnetTV to conduct in-depth interviews with CEOs from a who's who of companies in the mobile space. If you're planning to be at Mobile World Congress and would like to do a video interview with me, then contact me or Andrea soonest. Slots are going fast - but I am always open to good ideas and getting to know cool companies.

Behind the scenes, sparks continue to fly, prompted by the MSG exclusive interview with Jonathan Bulkeley, Scanbuy CEO. His only formal response to a recent and controversial CTIA white paper -- work-in-progress that outlines the ecosystem and infrastructure needed to make 2D barcodes a viable business - counts 8 11 in-depth comments from industry insiders and executives. It will take a few design tweaks before comments feature on the MSG home page, but the debate is too good to miss. Check out the discussion here and the post that started it all here.

A complaint filed earlier this month by the Center for Digital Democracy and the U.S. Public Interest Research Group with the Federal Trade Commission continues to make waves. The groups claim deceptive practices throughout the mobile advertising industry and ask the commission to launch an investigation into the privacy implications of marketing practices targeted at mobile phone users. While the 52-page document highlights some valid concerns, it also exaggerates the intent and ability of the some 50 vendors listed in the complaint to threaten privacy and consumer welfare. This hyperbole is unfortunate as it seriously compromises the credibility of the complaint and clouds the core issues that the mobile industry must address, such as improved citizen education about the costs and benefits of providing personal data. In my response (posted today on Mobile Marketer) I look at ChaCha, Xtract, Bango and AdMob, and outline how a citizen-focused organization – Every Single One Of Us – could provide a solution that protects – and doesn't patronize – empowered individual to take change of their mobile advertising experiences.

The mobile advertising market has reached a new phase of maturity where targeting is essential and performance is a given. Increasingly, publishers and advertisers demand monetization schemes that match advertising and audience. Last year we settled for traffic, but this year we demand more. I know from my own experience testing ad networks with Maria Sanchez - for my series of mobile advertising white papers - that a lack of targeting and quality inventory in some cases has forced us to spend money like water. Want to spend $100+ in 15 minutes? Who needs Las Vegas when you have a plain-vanilla mobile ad network?! No wonder targeting is the new mobile business mantra. From here on expect a new emphasis on quality and not quantity in mobile advertising. JumpTap, a mobile search and advertising company, has another one to add: Exclusivity.