With restrictions like “do not call” registry for controlling marketing and ad activity over mobiles, advertisers are exploring fresh solutions.
MUMBAI: With restrictions like the “do not call” registry in place for controlling marketing and advertising activity over mobile phones, advertisers are exploring fresh solutions to reach their target audience through mobile phones.
Companies at both ends of the spectrum, including corporate powerhouses like Reliance ADAG and start-ups like Paymate, are developing solutions to tap the potential of the mobile phone.
Paymate, a Mumbai-based mobile commerce firm, had earlier introduced a mobile payment service. In a bid to tap revenues from the burgeoning air travel industry, it has tied up with Galileo, a Global Distribution System.
On booking, the customer will get a free SMS with details like the PNR number and date of travel. The company plans to sell advertising space on these messages and claims to cover nearly 40% of the total number of tickets issued currently.
Travel portal travelguru.com was the first to use this medium which is independent of the kind of handset or the service provider.
Ajay Adiseshann, founder and managing director of the firm, told DNA Money: “Advertising is possible wherever a transaction or information exchange is involved. In some time a huge level of customisation based on demographic and behavioural information will be possible. For example, you can advertise specifically to female executives who fly business class on the Delhi-Bangalore sector at a premium.”
While talks are on with quite a few players, Paymate has websites such as makemytrip.com and airlines like Kingfisher on board. The company had earlier secured a $5 million funding from venture capital firms Sherpalo Ventures and Kleiner Perkins Caufield & Byers.
Telecom companies have been busy selling space on their portals like Airtel Live, Idea Fresh and Reliance World.
Some also allow free user group SMSs to be sent in lieu of advertising space on these messages. Reliance Communications claim significant conversion rate for the banner advertising on its RWorld platform. It has clients like ING Vysya Bank, Cadbury’s, Parachute and Fair & Lovely in its roster.
Mahesh Prasad, president, applications, content and solutions group, Reliance Communications, said: “Though it is a new platform, technological advances have meant a rapid increase in advertising inventory, resulting in increased spends in the past 12 months.”
At the same time, these companies are mindful of the possibility of regulations, citing privacy concerns, hampering growth.
Mahesh Prasad said, “The biggest advantage of these solutions is that it allows the customer to opt out at any point of time. There is caution because mobile advertising is a unique and unknown medium. Everyone is treading on unfamiliar ground.”
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