In brief:

After months of researching my chapter contribution to an upcoming book on marketing to Digital Natives, it’s increasingly clear that mobile advertising companies – and their view of “consumers” needs — must evolve.

Mobile is a fiercely personal device and people – particularly empowered Digital Natives – want content and advertising on their terms. (I purposely mix content and advertising here because they are becoming one and the same thing.)

Another shift in the marketplace: our requirement to have a say in the content/advertising we are willing to receive. This came through loud and clear in the research/interviews I conducted for Mobile Advertising Research U.K. 2009 project, a research project endorsed by the Interactive Advertising Bureau (IAB) and the Mobile Marketing Association (MMA) to expertly document the state of the mobile advertising industry in the U.K.

Among the findings (based on 1,000+ consumer online responses and 20+ interviews with operators, enablers, agencies, and brands): only 32 percent of the 1,000+ consumers surveyed had a positive attitude toward receiving advertising messages on their mobile phone. However, that number rose to 64 percent, provided people were properly “incentivized,” and 70 percent if they were incentivized and “in control” of their mobile advertising experience.

Connect the dots, as an increasing number of mobile advertising companies and ecosystem companies have begun to do, and it’s clear that the capability to provide permission-based mobile advertising (with an easy opt-in/opt-out option) could become table stakes.

MOBILE PIONEERS

Companies such as BuzzCity’s myGamma and gofresh’s itsmy.com, mobile social networks turned mobile social ad networks, need little convincing. They made the strategic decision in 2007-08 to allow their verified members to choose the channel of advertising they would accept. Of course, this wasn’t just out of respect for the individual member. Opt-in also allows advertisers to better target their key demographic (example: sports enthusiasts with sports ads) and ensure members who receive a marketing message actually listen.

In my own mobile advertising road test/white paper (PDF) on behalf road test on behalf of Bango, a provider of mobile analytics solutions and MSG supporter, showed that this was indeed a plus for my own campaigns. In fact, I gave BuzzCity the highest marks overall because its opt-in allowed me to deliver effective mobile advertising. (Happy coincidence — I have an interview with BuzzCity CEO KF Lai next week and gofresh’s Vince Staybl has also just reached out to me from his NY trip to offer me a pre-briefing on some significant news, so watch this space.)

JUMPTAP CONSUMER INTELLIGENCE

Jumptap, a provider of mobile advertising solutions that also operates a major mobile ad network, aims to tackle these shortcomings. The company announced this week that is will implement a new feature in mid-year (translated: by end-June) that “enables mobile consumers to manage their own profiles for a more personalized brand experience.”

The focus is on permission-based advertising and on putting the consumer (individual) at the center of their advertising experience. In a nutshell, the feature will enable visitors to participating websites in Jumptap’s ad network to chose the mobile advertising content that interest them – and the choice to opt-out of the process altogether. (Specifically, all publishers in the network will be able to participate. Participating publishers will need to include a link to Jumptap’s profile manager.)

What’s the user experience?

People can choose from a variety of some 29 advertising content categories, including automotive, careers, chat & email, entertainment, finance, fitness, food & drink and games, as the slide below illustrates.

What’s at work (and how) in the background? And how does Jumptap avoid potentially presenting the same people with the same ads?

JumpTap operates a premium mobile advertising network with a penetration of approx. 50 million unique visits a month in the U.S. alone.

Predictably, Jumptap’s IP, which includes patented technology, mobile search algorithms and proprietary know-how around targeting and relevancy (which I have analyzed in this post), plays a huge role in delivering people mobile advertising they will likely find relevant and useful. The company counts unique visitors based on “distinct IDs we get from carriers, cookies, request headers and device IDs.” This can vary across network. “In instances where we don’t have a unique ID, we estimate the number of unique visitors based on page views/unique user that we see elsewhere in the network.”

INTERVIEW WITH PARAN JOHAR

Armed with this background I caught up with Jumptap CMO to learn still more about the nuts & bolts of this ambitious solution and what is says about the company’s wider mobile advertising strategy.

Q: Jumptap is one of a growing group of companies sharply focused on putting the consumer at the center of the mobile advertising ecosystem? Why is this important and what do you offer people?

A: What we’re now seeing is a new wave of mobile advertising right, with the focus on customer intelligence and really putting the customer at the forefront of the mobile advertising ecosystem. Many companies got lost and focused on other constituents: operators, publishers and advertisers. They are all important people, but we are putting the customer at the forefront of the mobile advertising ecosystem, and the way we’re doing that is allowing them to manage their own profiles in a really simple format. This also drives the relevancy of ads.

The concept of is revolutionary but because everyone else has been trying to satisfy other constituents. By driving customer intelligence you’re going to see a higher engagement rate. If you see a higher engagement rate, you’re going to see advertisers who are getting better ROI. If they’re getting a better ROI, you’re going to be able to charge them more. If you can charge them more, by default, you get a better publishing yield so you’re really taking care of all these other constituents by focusing on your core audience, which is the customer, and driving the customer intelligence.

Q: Other companies have a similar approach. And just last week Alcatel-Lucent broke on the scene with a mobile advertising solution that is the subject of a larger report I am currently writing. In it I argue that permission-based advertising is a good fit with messaging because you build a conversation that – in turn – can improve the customer data. But your focus is display….

A: Yes, it’s only about display and it’s not about behavioural targeting. What this is about is empowering consumers to choose their category of interest. That’s one component of the data that will drive the delivery of relevant advertising. It goes into the user profile. And then there might be a component related to context, a component related to carrier data, a component related to publishers’ data – or a keyword from a search. All these are components and the ultimate goal is to drive consumer relevancy through this focus on consumer intelligence– and the better we can understand our mobile ad network, the better we can serve relevant ads to consumers.

Throughout this process three things are critical. One is full-transparency. Two is respecting their privacy and making sure all this data is completely anonymous. And third is preference. We’re allowing them to tell advertisers ‘these are my categories of preference.’

Q: What’s the roll out and what are plans beyond the iPhone?

A: That’s a great question. We’re rolling this out at the end of Q2, and you’re going to get a link to a Beta site where you can go in on your iPhone – or any device – and just scroll through and change categories of interest to suit you. It’s incredibly simple. The idea was to keep it as simple as possible.

Q: It it’s for all handsets from the get-go?

A: It is for all handsets and all advertisers. It’s on iPhone and on mobile Internet, so it’s going to be limited at first. But, as it rolls out, it’s going to obviously develop [momentum]. The goal is ultimately to drive more relevant advertising to everyone on all handsets.

Q: I mentioned that other companies have placed some form of permission-based advertising at the core of what they do. Take BuzzCity. BuzzCity even surveys its members and shares this anonymized information with advertisers to help them target their audience. From an initial look at Jumptap is different because it offers the data to third-party publishers. This would perhaps be the differentiating factor. At the other end of the spectrum there is Alcatel-Lucent’s Optism solution, [a solution that harnesses permission-based advertising – specifically, text messaging – to improve targeting.] So, there are other flavors out there…

A: No one else is doing this the way we are. It is absolutely one of our key differentiators. We also have 80 percent of the carrier business in the U.S. AT&T works with two sales partners, right? One is Jumptap and the other is Yahoo. Needless to say, we’re in good company.

We also have the broadest IP portfolio of any mobile ad network. And we have our pay-per-lick performance marketplace that allows users to bid at a keyword level, category, handset or carrier. We’re the only ones who have all of that.

You bring up the mobile social networks such as BuzzCity. I think it’s a little bit different within a social media construct. That is one component that can be added to the user profile, certainly. But remember we are not taking a siloed approach. It’s not just contextual, not just consumer category information, not just behavioural, not just carrier information. It is all of these components aggregated across multiple forms of data to drive relevancy. That’s our consumer intelligence.

Q: Another part of this might be that you are a neutral network. You belong to a group of ad networks – including the likes of Millennial Media and inMobi – that is not in the Google or Apple camp…

A: I think that’s a great way to break out the marketplace now and there are three groups, so to speak. There’s a lot coming from Apple that I agree with — and there’s a lot that I don’t. On the one hand, Steve Jobs came out publicly and said that mobile advertising sucks and that he has this goal of driving relevancy right to his network. That’s something we applaud. It’s very much in line with our strategy of customer intelligence, so that I think is dead-on.

The piece I don’t think is dead-on is his approach. He’s almost creating a walled garden for himself, almost an AOL of the mobile Internet. Advertisers really don’t care where their ad runs. They care about reaching their audience, not the device. iPhone happens to be the sexy thing right now, but Android will be the next sexy thing – and it [Android] is already is starting to catch a lot of that limelight.

Imagine you were a TV buyer and you had to buy a 30 second TV spot and you had to be cognisant of whether your audience is watching television on a Samsung, Sony or Pioneer TV set. And then you had to worry about whether they were watching it over cable, satellite or a dish network. And then you had to customize your creative accordingly. And so on. It doesn’t make for an efficient marketplace and that’s where I think Apple is missing the boat a little bit. They’re becoming a walled garden in advertising, which I think is not good for the mobile advertising ecosystem in the long term.

Q: Finally, where is the excitement?

A: We’re doing a lot in rich media. Our Unified Rich Media Platform [which I detail further down] delivers the industry’s broadest set of rich media units – for both mobile Web and in apps – all from one network. And our rich media platform is completely open. So, if you’re a rich media buyer for you plug right into our system. We work with iPhone, Android, Palm, and Blackberry. We’re an open system and we help advertisers reach their target audience.

***

MY TAKE: Permission-based advertising sits at the core of a variety of approaches and solutions I analyze in my upcoming report for GigaOM PRO, a project that has evolved from a SWOT analysis of mobile advertising solutions (including Alcatel-Lucent’s Optism and JumpTap’s solution powered by “consumer intelligence”) into a wider discussion of the business value of permission-based (opt-in).

We have ample evidence that permission-based messaging delivers positive results and response rates. A messaging approach also allows brands and other companies in the ecosystem to build on this personal profiling data (with the individual’s permission) by adding questions to refine the profile. This way, an individual who has signed up for car ads (a broad topic) might divulge that they are more into Audi than BMW and even say why they prefer one over the other. All voluntary information an advertiser would no doubt value.

Display is a different. It’s more one-way than two-way, and there is a danger of “spamming” people with repeat advertising because there aren’t enough ads in a category – or because the ad networks can’t identify unique users (and therefore gauge whether an individual user has seen the same ad already, or not). Jumptap claims to have addressed the latter with its IP, technology and techniques that allow the ad network to identify 50 million uniques per month in the U.S. alone.

This week’s announcement builds on that foundation. The focus is to increase the value and relevancy of mobile display ads. (Thus, Jumptap does not compete with companies that focus on mobile messaging and direct marketing.) To achieve this Jumptap inputs the advertising categories chosen by the individual into a much larger, more sophisticated equation that includes data from carriers, searches and some context. This covers the bases to provide people a better user experience (provided there is a good supply of ads in each category), and that should certainly lead to high advertiser ROI and publisher yields. Of course, the proof is in the numbers. We’ll have to wait a while for those. In the meantime, Jumptap’s move can be read as an important confirmation that all advertising – not just messaging – is correctly evolving to provide people more of a say in what they get.

Disclaimer: Bango is an MSG supporter with a branded thought leadership presence on this website; Jumptap has been an MSG supporter and sponsored a series of podcasts.

No matter how you look at it (or who you ask) mobile search, the model that has effectively retrofitted Internet search for mobile devices, is riddled with shortcomings This was the message that came across in the interviews I conducted for Mobile Advertising Research UK, the presentations I and other search authorities made during the recent Mobile Search Masterclass in London, and, more recently, in the mobile search assessment white paper (Pump Up The Volume: An Assessment of Voice-Enabled Web Search on the iPhone) I co-authored with Peggy Albright. (DOWNLOAD)

Is mobile search broken? More importantly, how can we fix it? These are the questions I put to a variety of executives representing companies from across the mobile search and advertising business ecosystem. Read between the lines, and their answers – along with my own conclusions – point to areas of improvement and opportunity in mobile search.

MOBILE ADVERTISING RESEARCH UK

Primary research and C-Level interviews with agencies, brands, operators and third parties reveal mobile search is missing the mark. Their gripe: the poor quality of mobile search (specifically universal search powered by keyword queries and PageRank algorithms) is to blame for a lack of interest and investment in paid search advertising.

As a leading executive at a global brand put it: “Just between the two of us, our spend for search is by far not in the [single] digits yet – and it won’t be….We do a lot in mobile, but the basics of search are not yet at the level of sophistication consumers would expect from us.”

At the other end of the spectrum, agencies are far from upbeat about the short-term outlook for mobile search. As one managing director at a mobile marketing agency put it: “Just the way the content is indexed prevents advertisers from creating a cohesive plan to integrate search in their [mobile] advertising strategies. There is just not the volume to get in and really do some targeted search [advertising], and that’s what brands want: to make advertising personal and relevant to every search the consumer makes.”

Against this backdrop, many sources questioned whether the U.K. adspend figures for 2008 released by the Internet Advertising Bureau (IAB) – the trade body for digital marketing – and PricewaterhouseCoopers (PwC) didn’t overplay the importance of paid search advertising.

The study – a U.K. first – shows that mobile adspend bucked all market trends, increasing by 99.2 percent year on year to reach GBP28.6 million. Mobile display advertising – which includes banners, text links, tenancies pre/post roll and in-game – accounted for GBP14.2 million in 2008, 49.8 percent of all mobile advertising spend, while paid-for search advertising was estimated to account for GBP14.4 million, 50.2 percent of all mobile advertising spend.

As Harry Dewhirst, Co-Founder & Operations Director of RingRing Media Ltd., an independent media agency in the U.K., pointed out during the conference Mobile Advertising Research UK and again in a private briefing with MSG: the amount spent on paid search (from his vantage point) is considerably less than display. The reason: mobile search is “not up to scratch” and fails to deliver people “information in a digestible format as quickly and as conveniently as they need it.” (During the conference Harry raised eyebrows when he identified mobile search as a chief obstacle to mobile advertising – period.)

Harry further tells me the poor mobile search experience means fewer people use search, and that has resulted in a “lack of depth” in search terms. While the terms “plumber” and “London” might draw crowds of online searchers, they can’t pack them in on mobile – yet. “And until they do, search queries will continue to be focused on branded terms like ‘Facebook’ and ‘MySpace,’ and used as navigation.” Despite these issues, Harry reports conversion rates for search are higher than display. “This indicates a positive future for mobile search advertising, but the repeat usage and quality of results isn’t good enough yet.” (Ironically, this sentiment is echoed and documented in the summary analysis of the Masterclass below.)

But there are some bright spots. Harry, who knows mobile search inside out from his previous experience at Medio Systems, a mobile search provider, gives high marks to Taptu, a socially-assisted service that tackles issues such as poor quality results and even worse rendering by summarizing the content/search results in a page that allows people to pre-screen the results before clicking. He is also upbeat about other vertical solutions such as directory assistance search services that are designed from the ground up to give searchers what they need on the move.

MOBILE SEARCH MASTERCLASS

A summer highlight for me has been participating for the second successive year in the mobile search masterclass, a course delivered as part of The City University London’s Masterclass series. Once again I joined an impressive roster of industry authorities from companies, and once again Colin Bates, CTO of Mobile Commerce Ltd., presented some amazing insights into mobile search usage, trends and behavior.

It’s worth sitting up to take notice because Mobile Commerce, like an honest broker sitting between all the major U.K. mobile operators and all the mobile search engines, effectively powers customers’ search boxes. In a nutshell, Mobile Commerce takes the search terms people type into operator portal search boxes and federates them out to a variety of information retrieval sources to deliver a results set made up of  regular Internet search results (Google, Yahoo Microsoft), specialist mobile search results (local search and a variety of verticals), and paid search advertising linked to keywords. Mobile Commerce also offers an increasing number of content owners/publishers a similar service through its Monetised Mobile Search solution, a plug-in service that allows client companies to put a search box on their mobile site and generate revenues from paid search advertising.

As a result, Mobile Commerce has an invaluable insider’s view into what people search for and the results they receive. The bottom line: Nearly 12 months on from Colin’s last presentation and mobile search is still (!) broken.

VOLUME

The surprise: mobile search volume has doubled and in some cases tripled. However, part of the reason for this meteoric rise could be Mobile Commerce’s own success in signing up customers (such as major U.K. newspapers and Virgin Media). Colin put it down to growth in mobile publishing and the number of publishers that placed a search box on their pages. [Hmm - will more publishers take charge of content (and advertising) by controlling the search box?] And let’s not forget the impact of the iPhone and other cool handsets that make the Internet fun to surf on our phones.

What are people searching for? The stellar growth Colin sees – partly because Mobile Commerce powers mobile search for The Sun – is in a category he calls “Glamor,” a term that comprises all the hot half-nude models (Page 3 girls) featured on the newspaper’s third page.

More people are using mobile search. Are they getting what the want?

In a word, no.

Colin’s road test of mobile search services offered by Google and Yahoo (similar to last year) makes it clear mobile search has a way to go. While the search engines excel in Internet search on a mobile phone, their mobile-specific results are – well – “rubbish.” A search for directory assistance delivers a link to the media relations department for World Aids Day, and a simple search for nearby post offices delivers a list of locations no longer in operation. As Colin put it: “The tools (such as Google Maps) are great, the data is out of date.”

Why are mobile search results served up by Internet search engines so poor?

1)    Mobile robots can’t spider the “mobile Web.” There is no sure-fire way to identify a site by URL (for a while .mobi or m.sitename. was a help). The advance of the iPhone and multi-mode sites that adapt content and change markup to match the incoming device type also muddy the waters.

2)    Indexing mobile pages – where information is dynamic, spread across multiple pages and impacted by user input and user-generated content – is a nightmare to index.

3)    The existence of data silos (such as downloadable content) and the lack of cross-linking data make it difficult to rank results and power PageRank algorithms.

4)    People have little say in their search results. On the Internet what we click on (or don’t) is important feedback (an indication of what we find relevant) that fine-tunes rankings and results. We do this on mobile too, but relevant results are often too many clicks away to be seen, used or appreciated.

PERSPECTIVES

Despite the many shortcoming of mobile search, people are using it more than ever before.

What are the drivers?

For one, supply. More players offer mobile search this year than last.

All the U.K. operators offer mobile search on their portals and an increasing number of publishers have also implemented Mobile Commerce solutions.

(In fact, this flurry of activity prompted Mobile Commerce to launch its Monetised Search service in the U.S., where U.K.-based search engine Taptu has signed up as the first client. Bob Last, SVP of Business Development at Taptu, said in a statement: “Working closely with Mobile Commerce since last year, Mobile Commerce significantly improves the availability of relevant ads for our users. The U.S. is our busiest market for mobile searches at Taptu and we are very pleased to be extending our involvement with Mobile Commerce to monetise more of this U.S. search traffic.”)

Demand is also a factor.

People are using mobile search – but it’s not the way they use it on the PC. It’s more about snacking, snippets and quick answers than research and information retrieval. This is what Mobile Commerce concludes (and proves) after a thorough analysis of search terms, search results and what people clicked. Because it powers the complete process it can make the connection between what people query and what they consider a valuable (accurate) result.

The company has developed a system of some 20 categories, ranging from Single User Search (which comprises all the Long Tail terms that literally only came up once in 12 months) to Social Networking (which accounted for a 16 percent of searches over the last year).

Connect the dots, as Colin did, and specific categories (such as Social Networking) are about navigation. In other words, people are typing them in order to find the mobile site. This is further supported by the dramatic dip in searches for Facebook plummet right around the time the social network launched a proper mobile property.

REVENUE

Mobile search may broken but paid search advertising – at least for a few categories – is paying dividends. Specifically, the categories Adult, Games and Personalization (downloadable mobile content) received the largest ratio of clicks against paid search adverts in the results set.

Read between the lines, and we have a confirmation of the pivotal role of paid search advertising in content discovery (a trend I have tracked and documented in articles such as this one for New Media Age – subscription  required).

Why should mobile content companies harness paid search ads to promote their content? Because it works. As Colin put it: “The mobile search model is broken, and publishers have very little control over how their sites appear in the results set – if at all.” In practice, using advertising – specifically text and banner ads – enables content discovery and drives results. It’s also cheap discovery since (at least in the U.K.) CTRs for display ads have tumbled from GBP 15 per CPM to “around GBP 5.”

The avalanche of mobile content – and now mobile apps – turns up the pressure on publishers and developers to rise above the noise and make their stuff findable and buyable. Until companies fix the bugs in mobile search, display and banner ads remain the only sure-fire way to get the message out.

BETTER MOBILE SEARCH

But publishers and brands don’t have to limit their focus to the usual suspects (Google, Yahoo, Microsoft). The real excitement is in search tools and technologies that make the most of mobile and even harness other people to improve the overall experience.

An example Colin offered is Shazam, which he described as “mobile content search without the box.” The phenomenally popular mobile music discovery provider grew from 20 million users (in September 2008) to 35 million worldwide (in February 2009), with over a million tracks now being tagged every day across the world. (Release) It has deployed by 75 carriers across 60 countries, and is a popular application in the Apple App Store, the Android Market and the BlackBerry App World.

In Colin’s view, “mobile-specific search tools” that enable made-for-mobile search (as opposed to universal Internet search) are bound to improve mobile search and make money for the companies that develop them.

In my own Masterclass presentation (and ongoing mobile search research) I have taken it a step further, identifying 10+ categories of mobile search and assembling a list of super-cool companies harnessing context, location and the wisdom of crowds to improve the precision of search results and the quality of our mobile search experiences.

A welcome addition to the list is Alabot, a mobile search provider based out of Pune, India, with offices in Kuala Lumpur and London. I first met Akshat Shrivastava, Alabot founder, at a mobile search conference, where I had the pleasure of presenting him with the Bronze in the category Best Technology Innovation – Software. Earlier this week Akshat sent me a DM via Twitter (@peggyanne) with the great news: Alabot has secured funding from a global innovation fund and sealed a deal with a Malaysian mobile operator to develop a multi-lingual (English, Bahasa, Chinese, Tamil) mobile content vertical search service.

The text search service will start off serving up ringtones and wallpapers from the operator’s online content stock, or “low hanging fruit” Akshat tells me is just the beginning. As he put it: “Content services that require a syntax or Internet access aren’t getting traction [in that region] because they are not intuitive or interactive.” Moving forward, Akshat tells me plans are to extend the service to other content verticals and expand reach via deals with several OEMs. Rock On!

SEARCH AS CONVERSATION

Strong demand for more interactive (translated: natural language search services) isn’t limited to emerging markets.

In North America, ChaCha, a people-powered search service that uses specially trained individuals ChaCha calls “guides,” has answered more than 150 million questions via mobile phones and the Internet, making it one of the leaders in SMS search.

Intrigued by the power and potential of voice search on the iconic iPhone, Peggy Albright and I recently completed Pump Up The Volume: An Assessment of Voice-Enabled Web Search on the iPhone, a performance analysis of voice-enabled mobile search services offered by Google, ChaCha and Vlingo (a spoken interface to the Yahoo search engine). Download the free white paper here.

A chief finding: ChaCha “proved superior” to the two other voice-enabled search options for the iPhone. Specifically, ChaCha proved to offer exceptional results, with its human guides interpreting the search query accurately in the majority of cases.

To be clear, the study was not a road test of speech recognition technologies. To evaluate the overall performance of voice-enabled mobile services offered by ChaCha, Google and Vlingo for iPhone with Yahoo!, the researchers asked a series of 18 queries representative of six typical mobile search categories (Navigational, Directions, Information Local, Information General, Social, and Long-Tail). For each query the researchers evaluated nine performance characteristics including response time, results accuracy, voice recognition accuracy, number of results received, keytaps required, relevancy of the result, location awareness, use of advertising, and presence of other value-added features.

According to the study, ChaCha interpreted natural language search queries, that is, queries asked as questions, accurately in 94.4 percent of the tests and delivered an accurate search result in 88.9 percent of cases. The Google voice recognition technology interpreted queries accurately in 16.7 percent of tests and delivered accurate search results in 22.2 percent of tests. The Vlingo for iPhone voice recognition technology correctly interpreted queries in 72.2 percent of cases and delivered accurate results (via Yahoo!) in 27.8 percent of tests.

A clear finding that emerged is the importance of people-power. As Peggy Albright pointed out: “The use of human agents [by ChaCha] to help interpret spoken queries and conduct searches makes a positive difference in the quality of results delivered when compared to traditional search engines that use algorithmic software to find requested documents or information on the basis of keyword matches.”

In the report I also identified a key advantage ChaCha has over its competitors: Its keen focus on social search, an approach that effectively infuses human preferences and human judgments into computer algorithms to pinpoint truly relevant information and potentially better answers.

Beyond tipping the scales back in favor of results that are relevant rather than search- engine optimized, social search also lays the groundwork for a conversation with people on their terms, paving the way for the delivery of mobile advertising that is relevant and more likely to be appreciated.

MY TAKE:

Universal mobile search has significant shortcomings, weaknesses that brands and agencies tell me has convinced them to put paid search on the back burner. (There are exceptions: Colin from Mobile Commerce reminds us that for some segments – specifically mobile content – paid search is a potent means to encourage content discovery.) We have a choice: we can wait for providers to improve universal mobile search, or we can harness tools and technologies to deliver a better experience NOW. An obvious and excellent alternative is social search, often called “people-powered search” because it harnesses people to deliver results tailored to searchers on the basis of who they are and what they like. The interviews and insights collected in this analysis outline where mobile search misses the mark and reveal a huge opportunity for companies (such as ChaCha) that give a personal touch to search results (a perfect fit with the mobile phone, which we’ve already established is an intensely personal device).

It’s still in the early days, but the place and the power of people in mobile search is clear. As the worlds of mobile search and mobile social networking collide, they produce opportunities for companies to tap the community – both implicitly and explicitly – for much better quality results and the delivery of much more relevant advertising.

Disclaimer: The complete report is available for free download from MSearchGroove. This white paper is published by MSearchGroove. It contains the findings of independent research and analysis carried out by Peggy Albright, Albright Communications, and Peggy Anne Salz, MSearchGroove in January 2009. The research methodology was developed by Peggy Albright. The research was sponsored by ChaCha. The opinions expressed in this white paper are those of Peggy Albright and Peggy Anne Salz, and do not reflect the opinions of the organizations referenced in this paper.

Related reading:

Context, Social Media, And Cool Interfaces Rock Mobile Search; MSG Teams Up With mTrends To Map Out The Brave New Landscape

Mobile Search Masterclass: How Google & Yahoo Really Measure Up; Is Paid Search The Path To Discovery?

Mobile Social Search Makes Its Mark; Will Group Searching, Sharing & Collaboration Take Social Networking To The Next Level?

EXCLUSIVE & EXPLOSIVE: New People-Powered Mobile Search & Advertising Solution Puts Mobile Operators Back In The Driver’s Seat; Will Search Giants Have To Watch Their Backs?

Will Tapping The Wisdom Of Crowds Outsmart Mobile Search Giants?

Regular readers will recall that MSG was commissioned to conduct Mobile Advertising Research UK, a project research endorsed by the Interactive Advertising Bureau (IAB) and the Mobile Marketing Association (MMA), to expertly document the state of the mobile advertising industry in the U.K. and identify growth opportunities in the emerging mobile advertising marketplace.

The report — which combines valuable consumer insights gathered by ÆNEAS Strategy Consulting and Management (coordinated by my esteemed colleagues Tarik Fawzi and Atva van Zanten) and qualitative research based on more than 20 interviews with operators, enablers, agencies and brands contributed by MSG — marks the first in a series of region-specific reports that will include Germany (2009) and North America (2010).

During the inaugural event (Mobile Advertising Research U.K.) last week in London, Tarik and I presented an overview of key findings (documented by MSearchGroove here) and revealed the results of an online survey of over 1,000 British. consumers. Pricing is GBP 2,999 ($4,866) for the report, and a 500 GBP discount is available for MMA/IAB members, and people who attended the event. For more details, click here.

And speaking of reports, I am pleased to announce that I will provide a sneak-peak at the results of a performance analysis of voice-enabled mobile search services from search giants Google, Yahoo! & ChaCha during a special Mobile Search Masterclass in London on June 30.

By way of background, this course is part of The City University London’s Masterclass series, a collaboration between the giCentre and the Centre for Interactive Systems Research at the University. It will be run for the second year following from feedback last year and is endorsed by the Mobile Data Association (MDA). Registration is GBP295 and the organizers tell me there are still a few seats available, so email Mark Firman (mfirman@soi.city.ac.uk) to reserve your place.

The complete findings will be released in July, but I can say that ChaCha, a fast-growing SMS mobile search service available in the U.S., “proved superior” to two other voice-enabled search options for the iPhone: the Google Mobile App with Voice and Vlingo for iPhone, a voice-enabled application that allows users to direct their spoken queries to Google or Yahoo! For the purposes of this study, Vlingo provided a spoken interface to the Yahoo! search engine.

To evaluate the overall performance of voice-enabled mobile services offered by ChaCha, Google and Vlingo for iPhone with Yahoo!, we asked a series of 18 queries representative of six typical mobile search categories (Navigational, Directions, Information Local, Information General, Social, and Long-Tail). For each query, we evaluated nine performance characteristics including response time, results accuracy, voice recognition accuracy, number of results received, keytaps required, relevancy of the result, location awareness, use of advertising and presence of other value-added features. The study further took into account that a service could deliver its search results in the form of answers (as ChaCha offers) or as links to Web pages (which Google and Vlingo deliver); for each query tested, an accurate result could be achieved in either form.

In addition to going over some high-level results, I will also present an overview of the mobile search landscape, focusing particular attention on the 10+ categories of mobile search gaining significant traction, including multimodal (voice/visual), mobile vertical search (music/games) and social search, a people-powered search approach that effectively infuses human preferences and human judgments into computer algorithms to pinpoint relevant information and better answers.

This presentation is based on the work I did with Rudy De Waele, blogger at mTrends and dotopen founder, in preparation for a workshop on Mobile Search Future Prospects organized by JRC IPTS (Institute for Prospective Technological Studies of the European Commission).

Other masterclass speakers and sessions will examine a range of topics and developments, including: mobile search statistics and surveys, key trends and developments, location services and search user interfaces and usability, and the range of content and advertising monetization models involving mobile search. I’m honored to join an impressive roster of industry authorities from companies including AmbieSense Ltd., a provider of ambient search services; Microsoft Research (Cambridge); g8wave Ltd., a mobile marketing company; and Mobile Commerce Ltd., a provider of location-based services that also possesses what the founders call a “piece of enablement” that gives them deep insight into the search queries passed through the operator portals in the U.K., and the results set returned to the user. This central position, combined with the company’s prowess in search advertising, makes MC a top address for the inside track on the quality of the mobile search experience offered by Google and Yahoo!, as well as their ability to deliver relevant results to users’ queries.

Last year, the case studies and analytics provided by Colin Bates, Mobile Commerce CTO, data also reported on MSearchGroove, provided invaluable insight into the most popular categories of mobile search queries and what users really want from their mobile search experience. The eye-opening observation: “Users are grazing, not researching. They are looking for time-fillers rather than facts, and they are using search boxes for site-finding rather than data-finding.”

It will be exciting to explore how mobile search has moved on and discuss where it is going. If you plan to attend and would like to meet up or catch up, please contact me directly (peggy@msearchgroove.com) or arrange an appointment with Andrea Henninge (andrea@msearchgroove.com). I hope to see you soon and will circle back with analysis after the event.

I am pleased to report this work has also sparked interest at Eyefor Travel Research, a business intelligence firm known as the “leading voice of online travel.” Andrew Merrie, research analyst and Headmaster of the School for Mobile (the firm’s initiative for educating the travel and tourism industries on opportunities in mobile), reached out to me earlier today to collaborate on the firm’s series of free reports (which are essential reads chock-full of case studies, key statistics, and best practice) focused on mobile technology and solutions.

There is a special emphasis on mobile search (which we agree is the linchpin of a range of effective strategies to deliver mobile advertising, commerce, and CRM). By way of background, the Eyefor Travel report series consists of Vol.1 Mobile Technology in  Travel: The Introduction, and  Vol 2,  Mobile Technology in Travel Report: The Detail. Vol 3  Mobile Technology in Travel Report: Consumer Insight is work in progress, but you can sign up here for an alert when it is released later in June.

A trend that stands out is the new popularity of SMS search schemes as a sure-fire way to reach a mass market. As Andrew puts it: “SMS search is a tool that 99 percent of customers know how to use. In a consumer-focused industry such as ours, it [SMS search] represents a good first step in how companies need to move forward.” Another advantage beyond intuitive usability: Proven monetization models around the delivery of related text links and advertising.

This point came through loud and clear in this week’s AdAge article, which outlines the advantages of SMS search, and takes a look at the companies (notably 4INFO, which MSG profiled here, and ChaCha) cashing in on its newfound popularity among users and advertisers.

Rita Chang, who wrote the piece, contacted me for the article, and has since arranged a follow-up call to discuss the mobile search competitive landscape. The intention is to write a comprehensive feature on the models and companies I think set the bar. I gladly support her in this work, and welcome other journalists to reach out to me for comments or just a few company contacts.

The increasing excitement around SMS search isn’t limited to the U.S. (the focus of Rita’s AdAge article). It’s also going full-steam in Asia, where Mobile Content Networks (MCN) – a provider of mobile search and revenue solutions that deliver people connections to content, not links to content, on their mobile phones – has chalked up an impressive list of operator customers for its SMS search, which emphasizes content discovery instead of answers to specific search queries.

Today marks the company’s official launch of Smart Search (aptly named) in partnership with Smart Communications, the Philippines’ leading mobile operator with 36.9 million subscribers. The MCN-powered search service (an SMS triggered search service that lets people use a shortcode to text queries for their favorite downloadable music) complements MCN’s WAP search solution for the SMART Music Store, which launched in 2008 and offers subscribers real-time access to a growing catalog of ringtones and music tracks from local content providers.

Stephen Burke, MCN SVP Sales and Marketing, who pre-briefed me on the news announcement yesterday, also kindly agreed to a spontaneous Skype chat interview to connect the dots in MCN’s evolving search strategy. I produce an excerpt of it below, and will circle back for a more in-depth discussion once MCN formally announces a key customer win later in the summer.

Q: The news is Smart Search. What else is in the pipeline?

A: We will also be adding new WAP and SMS content channels with Smart this month and next, and are seeing steady and healthy traffic growth.

Q: What can you share about traffic and usage?

A: For the Smart WAP Music search, we have seen page views and queries double in the second quarter calendar. We add [the content categories] Games in mid-June and Video in late June, which is projected to increase traffic about 3x.

Q: SMS activity?

A: SMS Search [is] reaching all the non-WAP users in the world’s most active SMS market.We will be ramping advertising in Q3. In emerging markets, the first step is to help build the Mobile Ad ecosystem, which is happening now.

Q: Do they [Smart mobile operator] use allwords [MCN's own PPC mobile content promotion program]?

A: No, not yet. The Philippines’ carrier revshare/ecosystem issues aren’t quite in place yet.

Q: And what can you report elsewhere across your partners/customers?

A: AIS in Thailand, FYI has also tripled traffic as they’ve added our Search to almost every page on the portal in their preparations to launch 3G services. These “emerging markets” are catching fire. Basically, we are seeing growth in all markets (Scandinavia, Turkey, Thailand, Philippines, Japan, etc).

Q: SMS search is certainly on the upswing.

A: In markets where WAP penetration/3G penetration is still lower (than Europe or U.S. or Japan), a transaction oriented, content and personalization oriented SMS service is an important addition. And it’s [SMS search] being specced into RFPs we are seeing elsewhere in S. Asia and Latin America.

My take: SMS search is a case of been-there-done-that? No way! It may be a rather un-sexy category of mobile search, but there is nothing unexciting about the demand for it across markets (and the increasing interest among advertisers). Indeed, comScore reports that SMS ads average a 16 percent response rate, outperforming typical 1-3 percent click-through rates for mobile display ads. While we may be enamored of the iPhone and the pivotal role this device has played in shifting mobile models (and the complete mobile business ecosystem) in the direction of mobile computing (as opposed to mobile communications), we should remember that the mobile device is about connecting us to the people and stuff (information, answers, content, and advertising – because it is content) that matters to us most. What works is what works. As Alex Meisl – Chairman of Sponge, a mobile marketing agency, and Co-Chair of the Mobile Marketing Association – pointed out in a phone interview yesterday, he is not bullish about bells and whistles in mobile. Most of his company’s campaigns harness text and messaging mechanisms people understand. Another advantage of text is the dialog it encourages between people and brands. This level of interaction can also bring a new dimension to mobile search, turning a search query into much more of a search conversation we can all understand.

Disclaimer: ChaCha has sponsored an MSG white paper; MCN has been an MSG supporter.

The webinar dovetails well with my mobile advertising projects, including Mobile Advertising Research U.K., a research project MSG has undertaken to expertly document the state of the mobile advertising industry in the U.K., identify growth opportunities in the emerging mobile advertising marketplace, and benefit stakeholders, shareholders, and consumers worldwide.  It draws upon primary research, including in-depth interviews with 15+ mobile executives, agencies, and mobile networks, including an interview this week with Freddy Friedman, Mobixell Head of Advertising. With my MSG hat on I will also request a later briefing with Mobixell (for MSG) to discuss recent news, new customers, and the role of mobile in a multi-channel advertising strategy.

I’ve also wrapped up my contribution to a series on audio-visual presentations on mobile advertising produced by Henry Stewart Talks (HST), which will likely go live in early June. HST, a company with a 35-year tradition, provides access to world class seminars by leading thinkers and authorities from around the globe in one online resource.

The company commissioned me to summarize the findings of both volumes of my extremely popular mobile advertising white paper series (sponsored by Bango): Mobile Advertising for Newbies, which provides a how-to guide to mobile advertising and analytics; and Mobile Advertising For The Masses, which examines the market opportunity for running campaigns in a mobile social networks.

I am pleased to have the opportunity (as part of HST’s Marketing & Management series) to educate the marketplace about mobile advertising and the pivotal role of mobile analytics.

I’m also honored to join the impressive roster of mobile advertising executives and thinkers including: Harald Neidhardt, CMO, Smaato Inc.; Michael Becker, EVP of Business Development, iLoop Mobile; Gerry Christensen, CTO, Zoove; Diane Strahan, Vice President of Mobile Services, NeuStar; Chris Torbit, Vice President of Mobile Services, SmartReply; James Darcey, Senior Vice President, Single Touch Interactive; G.D. Ramkumar, Co-founder and CTO, SnapTell; Ramin Vatanparast, Senior Strategy & Business Development Manager, Nokia; Saul Kato, Founder, Qwikker; and Phyllis Reuther, CTO, Archipelago Network.

I’m especially excited to learn more about Phyllis’ new endeavor, and will keep you posted on MSG. (By way of background, Phyllis was previously CTO at Mobile Content Networks (MCN)-a company that began by providing a platform for federated mobile search and has since extended its reach to provide a combination PPC content promotion and vertical paid search program.) I also encourage you to download her talk for an expert overview of mobile search and advertising.

The individual HST presentations cover a wide variety of topics, ranging from an overview of the burgeoning mobile content market, and the barriers to success and challenges faced by content developers and owners to establish long-term customer relationships and revenue streams, to an in-depth look at the emerging practice of consumer-centric marketing, detailing the opportunities and challenges arising from its adoption.

A particularly interesting talk reviews the use of current opt-in methods – like the Common Short Code – with new mobile enabling technologies, such as Bluetooth alerts, “StarStar” (**) dialing, interactive voice response, 2-D (or QR code) image recognition, content-embedded techniques, and location-based services.

I still have the opportunity to take your views and perspectives into account, and I would welcome your input to this defining work.

If you have an interest in being considered for an interview for MobiAD World Focus, please contact me directly or send an email to my assistant Andrea Henninge (andrea@msearchgroove.com).

Disclaimer: Bango is an MSG supporter.

Taptu’s approach, which takes universal search to the next level, crawling and indexing the social networking sites and destinations such as MySpace, YouTube, and Wikipedia, to expose an eclectic mix of results and content we might not have found otherwise, has been at the core of Taptu’s differentiation. But it’s the company’s latest release white paper (Touch Search: A New Vision For Mobile Search, which you can download by clicking the button in the sidebar) that signals an exciting shift in the mobile search paradigm.

The advance of touch devices changes how we browse the mobile Web and, naturally, it impacts what we expect from mobile search. What’s more, the touch Web represents a fast-growing subset of the Web, consisting of websites and Web pages that are optimized for access by touch devices like the iPhone.

However, as I point out in this earlier post, Taptu does more than acknowledge this trend; it has responded with a roadmap to encourage the innovation that content providers and brands agencies will require to deliver an optimized search and advertising experience for touch devices. I met up with Andreas Bernstrom, Taptu COO, a few weeks back to see Taptu’s prototype search service in action. Now I have the green light to post (I respect Andreas’ request not to give too much away here), so here’s a brief summary of my private demo and the details I can share.

USER EXPERIENCE: Search is dead simple and there is even the option to see and click on popular searches, cutting click distance and turning search into a recreational activity. See hot searches and share results. That’s a feature that no doubt builds on the learnings gained from 1-Tap, a feature of Taptu’s mobile search service that – true to its name- lets users share their mobile search results (including cool mobile content) in one click. To save users from typing in their friends’ details, 1-Tap can also tap into other services such as Web-based email and Twitter.

PRESENTATION: No dull lists of links or tedious trail of thumbnails. Results are displayed in a card format optimized for presentation on a touch device. I watched as Andreas not only breezed through the card results (depicting images and information in an easy-to-browse format); he could actually flip the cards over to see more details (say, the discography of a particular band or the tour dates of a group). And if you like what you see, then share it (!)  – Twitter it, post it to your personal site or just send it via email to your friends.

ADVERTISING: Advertising is indeed content, and judging from the emphasis on “cool” (and engagement), I would bet this is the business mantra at Taptu. Search ads (as we know them) still work, but the best ads are not only relevant to the keyword query; they enhance the experience. Andreas called them “engagement ads” and gave me glimpse of how this new advertising form dovetails with our content/search experience.

It’s early days, but this idea is one whose time has come. No more advertising messages and banners that annoy rather than excite. Imagine exploring advertising, using your finger to peel through its layers like an onion and immerse yourself in advertising that doesn’t seem at all like advertising. Now that’s a way to grab (and keep) my attention. “You can go into the ad and play with it.” Video, pop-ups, and a mix of content-rich cool stuff. Taptu showed it off to me, but it won’t be commercial for at least another six months. The strategy is about building an audience first and then introducing engagement ads, so watch this space!

(Here I am immediately reminded of a presentation from Tomi Ahonen, mobile luminary and author, in which he recounted why he believed Asian operators have their head around mobile – much more so than operators elsewhere. In it he quoted BJ Yang, CEO of AirCross, the number one South Korean mobile advertising company and the mobile advertising arm of mobile operator  SK Telecom,  who said mobile must be regarded as a “very close personal playground.” If that’s the attitude we need to make mobile (and mobile advertising) work, then Taptu’s approach might get us there, delivering fun (to consumers) and money (to the business ecosystem).

The demo Andreas showed me was a car ad that allowed me to move through the car and experience driving. I could sign up for test drives, see which dealers where had which models, check out related information, news, and reviews, and share the works with my friends.

Andreas and I mulled over what this could mean to viral marketing. Would the ability to share make seeding viral videos a new form of advertising. (It sure worked for Quicksilver, maker of surfing clothing whose “dynamite” video spread like wildfire with kids asking when they would ever be able see it on TV (!) People clamoring for advertising – now that’s a change…)

Would all this interactivity lead to a new monetization model? Say, pay-per-view instead of pay-per-click….

SURPRISES: From Taptu – I’ve come to expect it. This mobile search experience is full of them. I’m encouraged to explore my search results and all the content related to what I asked for in the first place. On each card, alongside the results, I have a wheel symbol that allows me to discover connections between content (some I couldn’t even imagine). I tried it out on music results, finding bands that were like my first pick and tracing their roots and the roots of each member in the band. An element of serendipity to keep content fresh and our minds active? Sorted.

So the mobile search and advertising experience are in synch for the Touch Web. But how big is the market and the opportunity?

Taptu offers this trio of industry predictions. (The methodology is explained in detail in the white paper.)

1)      Total global mobile search volume will grow rapidly from 63 million searches per day at the end of 2008 to 620 million in 2012 – almost 10 fold growth in just four years.

2)      The volume of searches from touch phones will grow even faster, to overtake the volume of searches from normal phones by the end of this year.

3)      By 2012, over 60 percent of all mobile searches will come from touch phones alone, representing less than 10 percent of the installed base of phones and just 20 percent of annual shipments.

My thanks again to Steve Ives, Taptu CEO, and Bob Last, Taptu Head of Business Development, for providing me the opportunity to contribute to the white paper.

Disclaimer: Taptu has collaborated with MSG on white paper projects.

The 450+ attendees at Think Mobile that descended on NYC in March can count themselves lucky. We were treated to an excellent line-up of 60+ top-notch speakers, chosen by my esteemed colleague Matthew Snyder, Founder & CEO of ADObjects, a strategic cross-media consultancy, for their insights, ideas, and willingness to share both. Feedback from my panel on Mobile Search & SEO has been overwhelmingly positive, in part because Matthew and I brainstormed and purposely brought together an eclectic mix of individuals passionate about their work and the mobile industry at large.

I was so impressed by the caliber of speakers (Michael Slinger, Manager, Google: Rachel Pasqua, Director, Mobile Strategy, iCrossing; and David Berkowitz, Director of Emerging Media & Client Strategy at 360i) that I have decided to showcase each individually on MSG. (I had the opportunity to do a video interview with David and will be back with more on that, and his views on social media and mobile search, once the bnetTV team has edited the footage and posted in the video player in the sidebar.)

Today I kick off this “mini-series” with Bob Rosenschein, Answers Corporation CEO and mobile search “guru” (my description- he’s far too modest). The company’s social search service WikiAnswers.com has seen some stellar growth, according to comScore. In March, the measurement and market research firm reported that WikiAnswers.com U.S. unique visitors reached nearly 19 million in January 2009, compared to 729,000 in December 2006. During this time period, WikiAnswers.com’s market share increased from 4 percent to nearly 35 percent, vs. Yahoo! Answers, based on U.S. unique visitors. Overall, WikiAnswers.com was identified as the fastest growing top 200 U.S. domain for all of 2008.

Another milestone: Answers Corporation counted 10 million questions in the WikiAnswers.com Q&A database. (Answers Corporation acquired the WikiAnswers.com database in 2006, and since then questions have increased over 35-fold.) As Bruce D. Smith, Chief Strategic Officer of Answers Corporation, who leads the Community Development team, put it in a recent release: The WikiAnswers community is “experiencing exciting growth,” with over 500 volunteer supervisors and millions of contributors, supported by our 12-member Community Development Team.

Social search meets mobile? Regular readers will know I am excited about this combination. (In fact, I commented on this emerging business model in recent-release white papers from mobile search companies Taptu and abphone.) In view of WikiAnswers.com’s increasing popularity, I decided to take a closer look at the company’s future roadmap. I caught up with Bob to get the inside track on his company’s mobile ambitions, discuss the key criteria for an optimal mobile search experience, and the role of mobile advertising in the scheme of things.

Listen to the podcast. [16:18]

By way of background, Answers Corporation, founded in 1998, was formerly known as GuruNet. It changed its name to Answers Corporation in 2005. The company is best known as the owner of the popular social knowledge Q&A site WikiAnswers.com, and the “encyclodictionalmanacapedia” Answers.com. Answers is a Google AdSense partner, meaning thatAnswers.com and WikiAnswers.com show Google performance ads on their pages.

WIKIANSWERS.COM: It’s a fast-mover. “On WikiAnswers, people type in the questions; other people answer them; and hopefully, over time, we get the best possible answers. Our goal is to give the best answers anywhere on the Web, for any kind of question.”

MOBILE SEARCH: Bob can’t give specifics and I respect that. But he can give us an indication of what is in the pipeline. As he put it: “I will say that the area of delivering our answers on mobile is obviously of enormous interest to us this year and next year.” While companies can tailor their services to specific platforms and devices, Bob doesn’t recommend it and hints that his company is focused on “adapting our product lines over time to work on all of the mobile devices, and of course we mean smartphones, but not only smartphones — anything with a Web browser.”

OPTIMAL USER EXPERIENCE: Quick answers in fewer clicks is the algorithm for mobile search success. “We believe that there’s too much information overload.” The problem is that search engines are really good at searching the Web, but what do they deliver? “A page of links; of links to other sites, but you know what? The mobile world still has slow browsers….If you get a list of links to pages that are mobile pages, you’re almost afraid to click on one of them. How do you know if it’s going to be a 5 second page or a 25 second page?” You don’t know. “Our goal is to give people useful information in fewer clicks. And so that’s actually a very good hint towards how we see the mobile world evolving and what we think we might be able to add to it.”

MOBILE SEO: Is the end-game about delivering answers on the go? If so, then what is the potential impact on SEO? In a word: Profound. Bob points out that Google’s introduction of a canonical element aimed at assisting SEO clearly recognizes mobile content is different from the Web. “In other words, you can now make a page that exists in different forms, give it a canonical name, and tell Google that this is the canonical page. This is the real page, and all these other things are just adaptations of it for different user experiences and phone factors, especially mobile. So, Google is being advised that this is the same page as another page in a legitimate fashion such that it doesn’t hurt SEO.

PUBLISHER TIPS: Brand is everything, which is why companies must deliver a quality user experience that begins with the basics, such as presentation. “Users will have even less patience on a small device. You have to get it right and it’s a really different ballgame in terms of presentational dynamics.” Google and Yahoo will continue to be important, and I think the challenges for the rest of us [will be] to find our place in this new world…. [It] will boil down to user experience. In the words of Tim O’Reilly; ‘How do we get users to visit our content in an age where they are free to choose content?’

MONETIZATION & MOBILE ADS: Google changed the rules when it introduced text ads on their pages that didn’t look like text ads. “Google zagged when everybody else was zigging, and they did something very brilliant.” But the real lesson we must apply to mobile is relevancy.  ”It is attractive to the user; it’s more trustworthy. But if that weren’t enough, it is informative and not interruptive.” But even relevant ads might not convince users to accept mobile advertising, according to recent research from Nielsen Mobile (via Citi Investment Research, a division of Citigroup Global markets). Bob was kind enough to share a short excerpt and some surprising stats from the client report, written by analyst Mark Mahaney. Under the heading: “There is a material consumer resistance to mobile advertising,” Mahaney states privacy concerns and users’ skepticism are holding back mobile advertising in the U.S.

Meanwhile, we learn from the Thanh Nien Daily that mobile advertising is booming in Vietnam. Quoting Aaron Cross, managing director of The Nielsen Company in Vietnam, who spoke at a two-day conference on Integrated Marketing in Vietnam which wrapped up last Friday in Ho Chi Minh City, the post reports (according to the Nielsen Mobile Insights Survey 2008) almost half of mobile owners in Vietnam receive advertisements via SMS each month.

The majority of those ads are read by consumers. The survey also said 74 percent of people in HCMC and Hanoi, the country’s two economic hubs, own a mobile phone. Over half (58 percent) of the country’s urban population, and a third (37 percent) of rural residents own cell phones. But the way isn’t clear for mass marketing yet. Cross pointed out the new anti-spam government decree, which took effect last month in Vietnam, protects consumers from receiving unwanted messages on their mobile phones. However, cost-conscious Vietnamese consumers are open to “hot deals and great value to relieve pressure from their monthly budgets.”

Mobile advertising is also gaining traction in Japan. This post, quoting Tom Bowman, BBC.com’s VP international ad sales who spoke at the Digital Symposium hosted by Habari Media last week in the Western Cape, argues consumers are “almost twice as receptive to mobile advertising as to magazine advertising, making it the highest priority for prospective advertisers.”

WHAT’S NEXT?: The industry has to sort out business models. Is it sponsorship? Is it an animated display ad? Or is it some kind of click-through only on performance ads? “But I’m going to say something very flippant now: “Who cares? …It’s a branding opportunity… and sometimes you subsidize one part of your business with another.” Bob would rather “get the service right and figure out how to monetize later.”

Special thanks to Alison Minaglia at Technology PR for the image of Bob addressing the ThinkMobile audience!

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.

I’m also pleased to report that the interest in my series of mobile advertising white papers is going strong. While I’ve just wrapped up Vol 2, my earlier white paper (Mobile Advertising For Newbies) will soon be making the rounds as part of a package of audio-visual presentations on mobile advertising produced by Henry Stewart Talks, a company committed to providing access to world class seminars by leading thinkers and authorities from around the globe in one online resource. The company commissioned me to summarize the findings of my first white paper and so educate the market about the pivotal role of mobile analytics in all we do. The more digital we become, the more the data matters…

Location is another topic high on my agenda, so I am looking forward to a F2F meeting/podcast with Dan Harple, who is responsible for leadership, and strategic and operational growth at GyPSii, a super-cool company leading the race to deliver us mobile experiences that combine information, entertainment, social networks, and location/navigation. A passion for multimedia, real-time interactive communications, collaboration, and social media runs through Dan’s bio like a leitmotif.

Prior to joining GyPSii he was Founder, Chairman, and CEO of Context Media, Inc., an enterprise software firm that was acquired by Oracle. Before that, his efforts centered on media research in Context Labs, a company he co-founded with Artist and Producer Todd Rundgren. Cool!

If you want to know more about the company and its future roadmap, then click on the screen in the MSG video player and watch the interview I did with Shane Lennon, Vice President, Marketing & Product Development, during Mobile World Congress. It’s the video interview I chose to showcase this week, and you can read more in my column for bnetTV’s weekly newsletter here.

I’ll follow up on those conversations next week. For now, all attention is focused on Mobile Advertising For The Masses, my new-release white paper timed to CTIA and an essential read for marketers who want to tap into mobile social networks (and the ad networks they provide) to drive positive results. This time I evaluate the analytics capabilities offered by three ad networks: BuzzCity (BuzzCity), itsmy.com (itsmy.biz), and Peperonity (AdMob). I also compare the depth and breadth of analysis they provide, and examine the need for an additional comprehensive mobile analytics package to connect the dots, fill in the gaps, and give me the big picture view of what my campaigns achieved and how I might use this insight to plan and target future campaigns.

It’s among my best work and worth the all-nighters during and since my stay in New York to put in the final finishing touches. I won’t go into the details here (for that you’ll have to download the free white paper), but I can say BuzzCity came out on top, allowing me to visibility into who my customers are (gender), where they are (location down to the U.S. state level), and handset make and model, for a start.

itsmy.com also allowed me to hone my campaign to target my key demographic, but outdated order and payment systems dampened my enthusiasm. Peperonity also had a few highpoints, but hasn’t quite reached its full potential.

I look forward to catch-calls and briefings with senior executives at both networks. My mobile advertising experiments cued me into some interesting features and functionality in the pipeline and I am anxious to learn more, insights into their ad networks, which  I’ll be sure to share on MSG.

BTW: I’m also pleased that I have been invited by Andrew Darling to speak on mobile advertising, social media and my key findings during 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) that will take place in London on April 2. (More details on the program and venue here.)

All attendees will receive copies of my two best practice white papers – “Mobile Advertising for Newbies” and “Mobile Advertising for the Masses.”

Speakers include:

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

Key themes to be explored:

• Is advertising content?
• Brands in social media advertising – listen first, then join in the conversation.
• If social networks have become the new ‘water coolers’, incubating new micro audiences with differentiated tastes, what makes advertising too intrusive in this new environment?
• What’s the ‘next big thing’ in mobile advertising – mobile for the masses?
• Is it just about advertising messages? What kinds of mobile services suit mobile advertising?
• Measuring success and understanding how important targeting is. Which types of campaigns work?
• Are social networking services the ultimate channel for the ‘long tail’?
• What is ’social currency’ and how do you convert it into revenue?

As I illustrate in my white paper, mobile social networks have the inside track on their growing membership. Opt-in procedures, often requiring users to register and fill out detailed questionnaires, put mobile social networking companies in the enviable position of being able to not only collect valuable customer data, but also provide advertisers a breakdown of customer segments by gender, location, make and model of handset – and much more. It’s valuable information brands can harness to fine-tune and plan future campaigns.

But, as I show in my final analysis, you can do one better if you also employ a more comprehensive analytics solution to measure success, failure, and how well your campaign really achieved your business objectives.

A comprehensive analytics solution represents a perfect complement to the solutions provided by mobile social ad networks, giving advertisers a more holistic view of their customers and allowing them to answer the critical questions every advertiser and publisher needs to know: Who are my customers? What did they look at? Where did they come from? What were the results? Did community members convert to the campaign goals?

My take: To maximize results on a social networking site, it’s critical that advertisers follow these three principals.

• Make the most out of mobile analytics offered by both the ad network and an independent vendor such as Bango to match your marketing message/campaign with the community. Social networking sites generally require members to register, which raises the bar in terms of interest, motivation, and qualification. This puts your message in an environment where members are predisposed to relevant messages. In a best case scenario, people should view your marketing as an extension of their mobile experience, rather than spam.

• Consider virtual gifting and other schemes to provide something of value to users and their community. After all, the goal here is to encourage user interaction, cultivate a two-way conversation, and boost brand awareness. This is not an environment for marketing pitches and product-pushers. Success stories include Flirtomatic, a pioneer mobile flirting service with the ability to monetize mobile users through conversation with added fun and great content such as virtual flowers, chocolate, 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.

• 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. More importantly, keep in mind you don’t need whiz-bang technology to engage with members in a meaningful exchange about your brand. Text ads and banner display ads are a great way to start. Besides, they are going to be around with us for a while yet to come. The innovation is not in advertising formats, but how we use them.

In a market where two-way conversation is the end-goal, and where traffic on mobile social networking is on the rise, brands that lend their voice to the conversation wil most likely deliver their advertising message loud and clear.

Disclaimer: Bango is an MSG supporter.

I have had this trend high on my radar for several years, a passion that received its first outlet and accolades when EContent magazine gave me free reign to write an in-depth cover story on the state of Social Search (which appeared in the November 2007 issue). I loved researching and writing the article, a work I still regard as one of the best in my career. The good news: I’m told the article had – and continues to have – an impact on the content industry. The not-so-good news: When I wrote the article I was disappointed that so few companies “got” mobile, and today – nearly two years later – only a handful of companies have really have caught on.

To be fair, I wrote the article, aptly titled Teams Work: Social Search Gets Results, before companies such as abphone, ChaCha, Hiogi and Taptu broke on to the scene with strategies that draw on social search approaches and algorithms to improve mobile search results ranking and relevancy. I invite you to read my comments in new-release white papers from abphone and Taptu, and MSG’s own soon-to-be released assessment of the user experience delivered by search engines (among them ChaCha).

But progress is progress, and I am confident that more online social search companies will sharpen their focus on mobile as the advance of mobile social networks and other communities pushes people-powered mobile search to the top of the agenda this year. (In fact, recent reports/stats on Twitter, Facebook, and my own discussions with social networking companies confirm an exciting new trend: We have begun to search in communities – and today the number of queries even exceeds our searches in Google. Connect the dots and a game-changing search paradigm emerges. The power of people + the power of mobile = a power shift in favor of new mobile players who harness the wisdom of mobile crowds.

Where does all this leave mobile operators?

Well, just a week ago I would have said they can watch if they are stupid, and open up their analytics to third-parties (to give critical context to search results) if they are smart. Now, I can say they have a third and far more lucrative option: They can offer a people-powered search service provided by an infrastructure vendor (building on existing front-end analytics capabilities that capture the interests, passions, and profiles of users) to deliver subscribers genuinely useful and relevant search results. And if mobile operators chose to bolt on the mobile advertising module, they can position themselves to offer paid search advertising from a variety of ad networks and keep the lion’s share of the revenues.

You’re reading it in MSG first: Watch for a mobile infrastructure provider to launch a solution that joins existing analytics at the front-end with search and advertising, potentially allowing operators to be equivalent to Google. And watch a mobile operator customer to implement it this year.

I am under NDA and therefore cannot disclose the name of the vendor company, but I can share the details of the search technology and the recent results of a trial test the vendor company conducted with a mobile carrier (a pilot that effectively proves the business case for mobile search powered by mobile searchers (subscribers) and enhanced by operator analytics).

Let’s examine the business case for operator-managed mobile search and advertising.

First, mobile search is not rocket science, nor is it a service that only search engine providers can offer. Search can be broken down into two basic tasks: Indexing the Web to include domains and fresh content in search results; and developing algorithms to assist in ranking and rating the results. It’s not impossible and white-label search providers have shown how this can be accomplished. (They just lost the plot when it came to finding and indexing the content on the wider Web, which is why white-label has lost momentum.) However, for reasons I outline below, mobile operators are positioned to go one better than the solutions that have gone before.

Second, PageRank is not the only game in town. There are many techniques available, not just PageRank, a one-size-fits-all approach pioneered by Google (that as I point out in my post suffers from serious limitations in the mobile space). Operators, because they are close to the customer, can harness social search concepts to improve the experience and the search results. (One to consider is BrowseRank, a new algorithm developed by the vendor company that represents a vast improvement on PageRank because it focuses on the pages people click most often, and correctly assumes that we click these pages because they offer the content and answers we value most.

Third, mobile operators alone have access to the data that matters - directly from us. They know our location and context; our profiles and purchases; the sites we browse; and the search results we think rock (!). As a result, mobile operators don’t have to index the whole of the Web because they know from their usage logs the sites we browse and click (not as individuals, but as a group), and can simply make sure these domains figure prominently in the mobile search results.

Finally, we don’t need the whole of the Internet on our phones. If people really do want/demand the whole Web on their phones, then it makes sense to leave mobile search to the search giants who can handle the mammoth task of organizing the world’s information. But do we want it ALL? Not if we consider a recent trial involving the vendor company and a North American carrier. As the source put it: A review of a month of mobile search usage and queries revealed that “millions of users had only visited 34,000 domains.” Drilling down, the source found that a whopping “96 percent of transactions were covered by 14,000 domains.”

Hmmm… So, is there really a Long Tail in mobile search? Or have bad experiences – poor content adaptation, broken links, and other shortcomings – already dampened our enthusiasm for the mobile Web? Or are we just gravitating to our favorite destinations (such as social networks) on the move, and leaving the Long Tail searches to our PCs where we have access to a large screen and a full keyboard? So many questions we can and must address…

I pose a devil’s advocate question: But what if users are flocking to a cool new site, not already in the index? The answer: “A single page request can flag a new site to be included in the search index, giving unprecedented speed of index updating.”

But doesn’t that somehow at some level limit choice? Not really. To introduce an element of serendipity, the solution comes configured with a “throw external” feature that will redirect to GYM search engines if the results delivered by the operator search engine are below a given accuracy. (Settings for SafeSearch also allow the mobile operator to exclude harmful content from the search results.)

The source and I then debated the extent to which analytics and behavioral data could actually enable the creation of new and more personalized mobile search services. Our conclusion: It certainly covers all the bases to achieve this because it would only index the sites the subscribers like best. Take a mobile operator with a prosumer customer base such as O2. They would likely value straightforward results that help them plan and execute their daily routine, and the mobile search results would reflect this. A consumer-focused operator, such as Virgin Mobile, may find that its users prefer entertainment sites and social networking/moblogging destinations, and likewise give them top-notch placement in the mobile search results.

Beyond identifying sites to index tailored to the preferences of the subscriber base, the solution would pave the way for mobile operators to refine search results based on meta data from browsing activity. For the first time ever, mobile search results could be ranked by device type, time of day, or day of the week. As the source put it: “Initially we have  focused  on domain and page popularity within a given data set, however this can be further optimized, for example by refining result ranking based on  time of day or device – people  browsing in  the morning preferred a particular destination domain, while people with a Nokia N95 preferred another.”

Likewise, the solution would allow mobile advertising (which the industry is finally beginning to recognize is another form of content) to be refined and targeted to the preferences and profiles of the subscriber base. What’s more, the mobile operators could keep the lion’s share of the paid search revenues.

My Take: Operators – through their enviable position at the center of our mobile experiences – are perfectly positioned to tap into the wisdom of invisible crowds (us). With the right tools and technology mobile operators can follow our virtual breadcrumb trail to optimize our mobile search (and advertising) experiences, using our actual usage patterns to give us the answers/results we will most likely appreciate. What better way to compete against search engine giants and even win?

The findings are based on Bango’s birds-eye view of browsing behavior and mobile transactions across 1,811 devices and 208 countries in February 2009. (By way of background, Bango provides real-time mobile analytics and collects mobile payments in over 150 countries worldwide.) For a complete list of the top 10 countries in both mobile browsing and mobile payments for February 2009 (hot off the presses!), check out the Bango Briefing Room here.

Speaking of stats, this recent blog post underlines the pivotal role of mobile analytics in developing truly targeted mobile campaigns. As it points out: Most analytics products only update publishers/advertisers on traffic trends daily/weekly/monthly. But that doesn’t cut it when it comes to uncovering the hour by hour breakdown of traffic, granular detail that can mean the difference between campaign success and failure. Indeed, hourly access to analytics also allows advertisers/publishers to fine-tune their campaigns, and change content throughout the day based on the time of day.

Keep looking for more stats from Bango in the Briefing Room – and watch for Vol. 2 of my series of mobile advertising how-to white papers (sponsored by Bango). The next in the series, Mobile Advertising For The Masses, documents mobile advertising campaigns across three mobile social networks.

Disclaimer: Bango is an MSG supporter.

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.

As KF puts it: “It’s about critical mass, and we have reached a critical mass in myGamma today that has become attractive to developers who want to tap into our community and soon beyond [these] members to friends of friends of myGamma [members].”

To this end, upcoming announcements will emphasize “improvements to our ad network and ad serving system so that it delivers value to advertisers and publishers.”

For now, let’s just say announcements pave the way for application developers to better distribute and monetize their content via the myGamma community and wider network of off-portal publisher sites and destinations BuzzCity has built through partnerships and as a result of the $10 million investment it received last summer from South African media group Naspers.

By way of background, the investment boosts BuzzCity’s profile, powers its expansion plans, and cements Naspers’ position as a formidable force in the evolving media landscape. The key here is convergence, and there’s clear evidence of a business model that could potentially blow other mobile social networks out of the water.

Naspers is a multinational media company headquartered in South Africa, with principal operations in electronic media (including pay-tv, Internet and instant-messaging subscriber platforms, and the provision of related technologies) and print media (including the publishing, distribution and printing of magazines, newspapers, and books). Naspers’ investments include: ACL Wireless Limited, a major provider of mobile value-added services based in India that offers community applications such as chat, IM and social networking, as well as mobile services; Tencent, a provider of Internet and mobile value-added services in China with the largest IM community in China – QQ; Sanook!, the leading Thai language portal in Thailand; and Mail.ru, ranked as the number one email service for Russian speaking users with some 30 million unique monthly visitors, and over two billion monthly page views (according to the website).  And the list goes on…

The goal is to expand the BuzzCity mobile ad network. But there are no plans to manage mobile advertising campaigns. For that, KF would rather team up with companies such as Top Space, the media arm of Sanook!, and be the mobile part of the pitch the company makes to clients. As he puts it: “The idea is to complement the existing offer these companies [in the portfolio] have and extend that reach into mobile.” BuzzCity is also not interested in content creation. “At this stage we have decided that we will not take a stake or invest in a company that develops original content. We want to work with these [content development] companies, allowing them distribution and marketing through our community and [Naspers] portfolio companies.”

Excerpts from the Q&A:

Q: Who are your competitors? We know it’s AdMob when it comes to ad networks – but who are the players that compete against BuzzCity at the big-picture level?

A: Looking at the competitors, I can say we will be the first one in the space to create a real ecosystem. We have community and a complete monetization path, and there’s more to come. [In comparison] the App Store doesn’t have the community, and it doesn’t run ad networks.  App Store is a pure transaction mechanism.  It leverages on the number of people that use iPhones to provide a transaction-based monetization path. So a comparison with Apple is possible, but not accurate. We’re closer to Facebook. It offers a developer platform, allowing developers to build the applications on Facebook and popularize them by offering them to [Facebook] members, but the monetization path is not so clear. Likewise, the ad network isn’t in place to help publishers and merchants monetize the traffic. We have all that, and all the developers have to do is figure out how to make their applications popular. Once they are popular, the way is clear to make money out of them. Then the question becomes: Do I continue to offer it for free, so that I can charge for advertising? Or do I charge for my application? Both options are supported by BuzzCity.

Q: You already have developers offering apps and content to the community? What are the hot items?

A: The most popular applications are ones that allow users to have some fun and express themselves. For example, there is a Tarot card [app] that tells your future and lets you share Tarot cards with your friends. Another popular application is called Hug Me. It’s just a simple hug, and users can give each other virtual hugs and show each other they care. Virtual gifting is very big, and we expect to see quite a number of virtual gifting applications moving forward.

(BTW: This response dovetails well with Tim Green’s observations over at Mobile Entertainment. He points out that virtual gifting is part of a successful monetization scheme for BuzzCity. What’s more, he wouldn’t be surprised “if, a few years from now, Facebook decides the best way to get a presence in mobile in certain geographies is to advertise on BuzzCity’s network.”)

Q: Let’s talk about the release of the BuzzCity Mobile Advertising Index, a report that tracks the growth of off-portal mobile Internet use in more than 200 countries around the world. For Q4 2008 the index shows almost 50 percent growth in paid banner advertisements in the U.S. Specifically, 382 million mobile banner ads were served in the U.S. in the last three months of 2008, a 47 percent increase over the previous quarter, and a 209 percent increase for the year. In a press statement, you said this is an indicator of the resilience of mobile advertising in the face of the current economic downturn, as well as the exponential growth in mobile Internet use among U.S. consumers. Can you elaborate? And what are you seeing now?

A: In the fourth quarter of 2008, just over 7.5 billion advertiser banners were delivered across the network, representing quarterly growth of 40 percent, a slight increase from the previous quarter’s growth of 38 percent. According to our data, we actually only service about one-third of the advertiser demand.  In other words, there is another two-thirds of advertiser dollar [budget] on the table every day that we’re not spending. We have advertiser dollars waiting to be earned, if developers are able to develop compelling applications that users find interesting. We have a board meeting this morning, and I can say I have very happy shareholders today.

Q: Is it the focus on the Long Tail that allows you to profit in a recession?

A: Yes. When we put our Long Tail mobile ad network together, aggregating around 2,000 smaller sites, it was about capturing value offered by the smaller sites – sites that otherwise would not be able to attract advertising on their own. It was also about allowing advertisers to reach a diverse audience. After all, if you want 1,000 people to respond to your offer, you’re more likely to succeed if you try to attract 1,000 people from 1,000 different sites rather than 1,000 visitors to a single site.

In fact, the financial crisis has so far has turned out to be a net positive for us.  We expected two things to happen. We expected venture-funded companies that were buying traffic to drive the downloads would likely reduce their spending because they were worried they might not be able to raise the next round of funding because of financial crisis. This did happen, but the financial crisis hit the U.S. and U.S. companies harder than the rest. Elsewhere, companies that were spending on ad networks to buy traffic have not reduced their spending. In addition, we expected mobile value-added service providers to cut back advertising spending, which also happened. But these [VAS] players appear to have moved larger portions of their advertising budget into mobile Internet, which benefits us. We’re also seeing a rise in spending coming from more traditional businesses, such as financial services. They have increased overall mobile Internet and advertising spending because it’s more controllable and measurable [than other media buys].

For example, in India, advertisers are reducing their overall budgets by up to 50 percent. In fact, [publications like] Hindustan and Times of India are reporting 75 percent reductions in the ad revenue. But, in reality, a shift is taking place and advertisers are moving money from online to the mobile Internet.  So, BuzzCity profits from the financial crisis. You have seen that from quarter to quarter we grew about 40 percent, and from November to December we actually grew 40 percent as well, month to month. In January, we see that the trend has continued and we are quite hopeful that in this quarter [1Q2009] we will report either a similar growth rate or an even bigger one.

Q: Speaking of India, you recently launched a feature that enables brands in India to target ad campaigns to four regions around four major cities: Mumbai, Delhi, Chennai, and Kolkata. How is demand for that?

A: It’s getting very good response from advertisers. But most advertisers are looking for reach and don’t only want to target individual regions. Overall, India has been growing quite well over the last months, with a number of more traditional companies taking their campaigns to mobile.

Q: Can you provide examples?

A:  A lot of activity from banks. In the last months we’ve seen Sri Lankan Airlines advertising to Indian customers. We have also seen campaigns from Toyota, Dell, Renault – and other big brands using mobile to reach Indian consumers. In fact, activity has increased so much over the last six months that we increased our team there from two to five [people]. We are also planning to roll this feature [being able to target regions] out to two more countries over the next six months. We are deciding the countries and I’ll let you know closer to the date.

Q: You recently announced a deal with MCN in Thailand, where you use its MobileSearch.net platform to power content discovery and mobile search for your myGamma community there. I’ve seen other mobile communities embrace search as well, I’m thinking here of the deal between itsmy.com and Taptu. How are members using mobile search?

A: From my initial observations, it doesn’t seem that users like to search as much as they like to discover new things. We’re talking with MCN about how they could use the social graph to make mobile search much more of an activity involving user recommendations. Of course, we will leave the mobile search technology to providers and not develop our own search service. There are a couple of other initiatives that we are pursuing right now but we’re not ready to announce details. I can also say that we are looking at launching keyword search functions in our ad network, letting advertisers target the advertising based on the user query.

***

NOTE: I’ll also have more about the nuts and bolts of BuzzCity’s ad network in my upcoming mobile advertising white paper, set to be released in time for MWC. As I wrote earlier, BuzzCity understands advertiser requirements for spending control and improved targeting. More importantly, it walks the talk, providing advertisers a balanced mix of mobile analytics and post-campaign demographic data (based on a representative audience sample). In fact, click analytics from BuzzCity (I ran banner ad campaigns across three mobile social networks, including BuzzCity) showed my audience was predominantly male, with over one-third of my clicks in the U.S. coming from the state of Mississippi.

My take: It’s potentially valuable feedback for advertisers wanting to target campaigns to variables such as gender and location, and a clear competitive advantage for BuzzCity over other ad networks.

Disclaimer: The MSG series of mobile advertising white papers is sponsored by Bango.

Against this backdrop, I have decided to explore the advance of solutions from companies such as Wapple – designed from the ground up to make publishing a no-brainer – and the impact on the mobile Web. (Scott Beaumont, Co-Founder of Mippin, will also make his debut with a guest column next week that walks us through the procedure to mobilize MSG and the bigger reasons why publishers should get involved.)

My take: A lot of content to explore at our finger tips and an increased need for mobile search services that find – and monetize – it. Taptu tops the list – but I see other companies on the horizon that likewise understand the pivotal importance of putting people back in the equation.

I detail this argument in my column for EContent magazine here. One company I’m watching in ChaCha, a mobile search and answers service that launched a year ago this month. (By way of background, ChaCha has developed a “search-with-a-guide” process that lets stumped searchers connect with a live person – in real-time and via an instant message chat for answers in the form of relevant links and results.)

In fact, my associate Peggy Albright and I have spent the last weeks testing ChaCha voice search against the likes of Google and Vlingo and will have the results for you later this month. Keep posted for analysis that may surprise you and a post from Peggy chock-full of our observations and frustrations.

Disclaimer: Taptu has collaborated with MSG on a white paper.