Just two weeks after release and my new white paper (Mobile Advertising For The Masses) counts 500+ downloads. (Again, I am honored that Bango (white paper sponsor) refers to me as a “mobile guru.”) I always endeavor to communicate complex ideas in a way that everyone will understand, and am told people enjoy my accessible and entertaining writing style. But the real reason behind the popularity of this hands-on analysis of campaigns across three mobile social networks (BuzzCity, itsmy.com, and Peperonity) is timing. Mobile social networks are on the rise (a recent Informa report counted 200+ of them) and open for business.

Where is the money?

I was fortunate to speak at Mobile Advertising & the Rise of Social Networking: What does it mean for Brands, Agencies and Service Providers?, a Knowledge & Networking Seminar organized by AIME (the Association for Interactive Media and Entertainment) last week in London. I enjoyed the opportunity to network with mobile professionals in a casual atmosphere and will most definitely participate in future AIME events. Andrew Darling, AIME Director of Communications, tells me upcoming events/topics include: WAP publishing, mobile payments, mobile coupons, and mobile widgets.

My session looked at the nuts and bolts of mobile advertising in social networks, and the real results, revenues,  and strategies first-mover companies such as pioneer mobile flirting service Flirtomatic and brave consumer brands (via full-service mobile marketing agency Inside Mobile), have to share.

As I am currently conducting my own mobile advertising research, I was particularly interested to learn from Eric Mugnier, Inside Mobile Product and Innovation Director, that the agency has also done its homework in the form of an in-depth survey of 80 key decision makers in the global mobile advertising value chain. The report won’t be released for a few weeks/months but Eric, who is also interested in my input and ideas, has promised MSG will have it first. (Thanks Eric!)

In his presentation, which included video interview excerpts from a selection of interviews, Eric outlined a few clear trends/requirements for effective mobile advertising in a social network. Mobile advertising must be targeted and relevant; the industry has no shortage of good ideas, but it must address issues around scale; and finally, brands and agencies have built the proper foundations, and  now the priority must be to create a toolkit approach that will allow more companies to execute on the lessons they have learned.

“Killer app”

Where are the brands?

Further along than I thought if we consider the example of a major sporting goods and sports apparel company, an Inside Mobile client gearing up to release an iPhone app that combines creativity, communication, and community to deliver a compelling advertising experience that users can make their own.

In a nutshell, the app allows people to customize their shoe and share it with their friends. In the next phase, people will be able to buy what they created with their phones, share what they created with the community (and this is where it gets really interesting), geotag their creation to add another dimension to the discussion (this is what I created and where), and have the ability to post their creation as part of their Facebook profile. (More next week when MSG has the exclusive on this innovative campaign.)

As Eric put it: Allowing people to customize, share, and – most importantly – make the end-result a part of their own digital persona paves the way for effective and enthusiastic viral marketing. He’s right!

It was refreshing to hear Eric describe the campaign elements in these terms. I read it as proof the advertising ecosystem has moved a giant step forward in understanding that: 1) The emergence of empowered individuals, the advance of so-called digital natives (individuals who have grown up with the Internet), and the abundance of applications designed to give consumers more of a say in how they create, access and enjoy content have transformed communication and, more specifically, the business of advertising; 2) Advertising has become content, and brands and agencies must find ways to turn their one-way pitch to “consumers” into invigorating and effective two-way conversations; and 3) Advertising in a social network is all about active participation in the community and developing ways to interact with members and enable them to interact with each other.

My take: The principles I have discussed and debated with Jonathan MacDonald, mobile advertising activist and close friend/colleague for almost a year now, are no longer just ideas; they are the building blocks of ideal business models. Well done (!) – I’m sure Jonathan’s many presentations, trips, and workshops play a role somewhere in this transformation.

Mobile metrics

Speaking of progress, Henry Stevens, Director of Media and Entertainment, GSMA, updated us on the Mobile Media Metrics (MMM) initiative to use independently aggregated and audited metrics from operator network data to develop a common methodology (what to measure) and common process (how to measure). Agreement on these key points would enable media owners to measure performance of their media properties across mobile networks, and help media planners better understand audience trends and behavior.

Where are we now?

As we know, all five U.K. mobile operators are on board. Now the GSMA is well on its way to a commercial launch in the U.K. (the feasibility study is complete) and working with operators in other European markets to duplicate this across other regions. A technical solution for the anonymization and aggregation of operator data (allowing a persistent and unique ID), as well as integration with other relevant databases and third-party demographics, top the agenda.

But the real news is how all this can be integrated into existing reporting tools. The GSMA is currently seeking the input of brands, agencies, and media owners to ensure the process meets the long-term objective of the organization to drive the growth of mobile as a multimedia platform.

Another presentation that underlined the pivotal importance of analytics in the scheme of things came from Nandi Gurprasad, VP of Alliances, Bango.

In a case study of Tapatap, a Bango customer that was recently acquired by women’s social network LimeLife, Nandi showed how the social gaming community used analytics to measure the success of its mobile Web ad campaigns and refine advertising pitches and presentations to target countries, networks and handsets which it determined (through analytics) yield the best conversion rates. Accurate tracking of response rates across different ad networks also allowed Tapatap to better plan campaigns and, more importantly, determine customer acquisition cost.

As Nandi put it: The example shows how and why companies should leverage tools that “give them an edge” – specifically, tools that provide real-time and reliable information on users – and which provide answers to the all-important questions: Who (are my customers)? What (did they look at)? Where (did they come from)?

Vendor spin aside, mobile social networks are here to stay and grow. They offer opportunity for advertisers and drive demand for analytics solutions. (As I point out in my white paper: When the end-game is all about getting a big(ger) picture view of what you achieved and where you missed the mark, then a more comprehensive analytics solution is a must. In practical terms, the two (offered by mobile social network ad networks and independent vendors) are complementary – not competitive.)

Flirtomatic’s phenomenal numbers

Saving the best for last, a real highpoint was the inside track on Flirtomatic, a combination mobile social network and mobile flirting service with the ability to monetize mobile users through conversation with content such as virtual flowers, chocolate, and kisses.

Matt Dicks, Flirtomatic Commercial Director, reported the community counts over 1 million U.K. users and outlined how Flirtomatic turns people with a passing interest in flirting to spending customers.

The trick is retail 101 all over again: Delight the customer.

In a nutshell, Flirtomatic “makes newcomers feel welcome when they come in.” Some 55 percent of daily new users go active and send a Flirtogram (signaling they want to flirt); some 20 percent of users go on to spend with Flirtomatic on items such as virtual gifts or features to enhance their own profiles. Flirtomatic chalks up revenues of $10 per month per spending customer.

At the other end of the spectrum, Flirtomatic counts “over 100 million WAP impressions per month.” Where does mobile advertising pay dividends?

A whopping 84 percent of page impressions are generated on-portal (where Flirtomatic essentially plasters operator portals with banner ads). Next are ad networks with 12 percent, followed by paid search with 3 percent (a category Matt said shows significant growth as more users go off portal and explore mobile search services to get where they want to go).

So, operators have the volume now, but will this continue? Matt expects operators will rule the roost for another 2-3 years. After all, operators are the gatekeeper and the billing agent. An envious position between the content company and the customer indeed!

Flirtomatic has also made the move from virtual gifting to the real thing (overcoming a logistics nightmare to let members give the objects of their affection chocolate and sexy underwear). The results: 500 gave chocolates and 300 gave underwear. More important than the numbers, the experiment proves members are willing to give and receive real gifts using their mobile phone.

Read between the lines, and this behavior bodes well for brands and advertisers.

As Matt pointed out: It’s a golden opportunity for brands to get involved. Think of the sponsorship and sampling opportunities. Encourage members to send flowers (and plug Interflora in the process, for example.) Cross-sell and up-sell chocolates (you just sent your loved one Cadbury Creme Eggs, have you thought of trying a milk chocolate bar?).

The possibilities are endless – and the conversions can peg the needle. Matt walked us through the example of an early experiment Flirtomatic conducted with a popular brand of cider. Members could “shout a pint” to their buddies using their mobile phones. The recipients got a voucher on their mobile phone for a free pint of cider and the location of the nearest pub that would redeem it. The results: 348,000 members sent a pint to their friends over a two week period; CTR peaked at an impressive 10 percent.

Should mobile advertising stop at delivering a message? Or should it seek to unite the virtual and physical worlds (a topic I also examine in detail in the Netsize Guide 2009 on offer in the MSG sidebar)? The jury is out on this one, but the discussion will continue at MSG.

What do YOU think?

BTW: Matt kindly invited me to visit Flirtomatic during my next trip to London, an offer I will gladly take him up on. I have long admired the company and Mark Curtis, Flirtomatic founder and author of this  well-known book on disruption culture, whose views I also hope to capture in a thought-provoking podcast. If there was ever a mobile social community success story worth telling, then Flirtomatic is it!

Disclaimer:  Bango is an MSG supporter.

It’s early days and there are no easy answers – all the more reason to attend Mobile Advertising & the Rise of Social Networking: What does it mean for Brands, Agencies and Service Providers?, a Knowledge & Networking Seminar organized by AIME, (The Association for Interactive Media and Entertainment), this Thursday in London.  The seminar provides the perfect opportunity to explore key learnings with industry pioneers and network over drinks. (The event begins at 6:30 p.m. and wraps up around 11 p.m. More details on the program and venue here.)

One company I look forward to hearing is Flirtomatic, a pioneer mobile flirting service that has had great success monetizing mobile users through conversation with added fun and great content such as virtual flowers and kisses. The company recently extended its reach to enable members to give the objects of their affection real gifts including chocolate and sexy underwear. As Matt Dicks, Commercial Director for Flirtomatic, put it in an interview with AIME’s Andrew Darling: The approach to mobile advertising is about marketing entertainment and content services as part of its mobile social network. “It’s about integrating ads and brands into the fabric of a social networking service – enabling premium gifting between users and using advertising to support content.”

Other speakers on hand to share their experiences/vision include:

• Nandi Gurprasad, VP of Alliances, Bango
• Dusan Hamlin, Joint Managing Director, Inside Mobile
• Mark Brill, Chairman Mobile Council, DMA
• Henry Stevens, Director of Media and Entertainment, GSMA

I’ve been invited to present the results of my new-release white paper (Mobile Advertising For The Masses). In it I road test the mobile ad networks offered by three mobile social networks and document the results. (Look for the free download later on in the week.) I also conclude with my three principles for interacting with mobile social networkers on their terms. (After all, those are the rules here!)

1) Make the most out of mobile analytics offered both by the ad network and an independent vendor to match your marketing message/campaign with the community.

2)Consider virtual gifting and other schemes to provide something of value to users and their community.

3)Participate actively in the community and interact with members to build relationships and enable them to deepen their relationships with each other by providing tools that will let them do what they are there to do: Keep in touch with friends, connect with people who share their interests and share content and feelings with the community.

If you want to meet up or catch-up during the seminar, then please reach out to me directly, or contact Andrea Henninge (andrea@msearchgroove.com) to schedule a briefing.

Disclaimer: Bango is an MSG sponsor.