Ad-funded mobile entertainment to generate revenue of $290 million in the UK by 2012

Ad-funded mobile entertainment (AFME), with mobile games and video in particular, is set to generate substantial revenues of $290 million (£145m) by 2012, according to a report by the Mobile Entertainment Forum (MEF).

The report, that takes an in-depth look into the impact of ad-funded mobile entertainment on the on-portal mobile entertainment market in the UK, estimate that ad-funded mobile entertainment will have generated revenue for the UK mobile games market of over $1.2 million in 2008, and by 2012 it will be contributing $82 million.

“There are approximately 3 billion mobile subscribers around the world. Being able to provide them with content for free or at a subsidized cost will drive up mobile content consumption and provide users with targeted, personalized advertising that is meaningful to them,” said Rimma Perelmuter, MEF Executive Director.

NeuStar integrated innerActive's mobile advertising solution in its mobile IM application

NeuStar has embedded innerActive's ad-funded mobile entertainment channel inside its mobile Instant Messaging (IM) application. NeuStar is showcasing the new personalised and contextual mobile advertising based IM solution, at GSMA Mobile World Congress 2008 show.

The solution will enable operators to deliver online advertising through a range of models, including toaster pop-up banners, product placement, and branded information services called "presence-enabled Ad Buddies" through the operator's mobile IM service. Operators will benefit from attractive advertising pricing schemes, and users will benefit from the option of communicating for free or at discounted rates.

"Advertising over mobile IM provides new revenue streams and is creating new partnerships between operators, advertising agencies, brands, publishers, and third party developers to deliver an on-demand, interactive, and rich mobile advertising experience,” said Allen Scott, general manager at NeuStar Next Generation Messaging (NGM). “NeuStar's third party developer program, called the Innovation Zone, is driving innovation over mobile IM -- and innerActive is helping operators to capitalise on the new opportunities mobile IM brings."

NeuStar is a provider of clearinghouse and directory services to the global communications and Internet industry. In November 2006, NeuStar created its Next Generation Messaging Services by acquiring Israeli provider of instant messaging solution, Followap.

Compelling results for innerActive’s UK mobile entertainment trial

The six-week mobile entertainment trial of innerActive in UK shows a very high CTR of 39% on average. The trial with digital entertainment firm Jamster gave mobile users in UK the opportunity to download six free games from the Jamster site, in return for viewing advertising and promotions from sponsors.

The mobile advertisements and promotion features were sponsored by top international brands such as Calvin Klein, Domino's Pizza, Fox, Paramount Pictures and eBay. Incentives included wallpapers, movie trailers, pizza vouchers and prizes such as portable media players.

We think the results of this trial speak for themselves. Our breakthrough technology, which enables us to dynamically embed relevant, contextual advertising and other marketing offers in-game, delivers great results. This new entertainment channel will offer an enriched user experience, reaching a vast and untapped audience and setting a new type of interactive dialogue between advertisers and audiences.

innerActive to reveal its successful UK trial results with Jamster at GSMA 2008 show

innerActive Smart Media will reveal the successful UK trial results of a mobile in-game advertising service with digital entertainment partner Jamster, and will showcase its groundbreaking new ad-funded product for Instant Messaging (IM) and presence systems, at the Mobile World Congress 2008, Hall 4 level 1 IMA Pavilion, 11-14 February 2008 in Barcelona, Spain.

We are also planning to announce new commercial launches with leading international off-deck portals and new partnerships for our ad-funded entertainment channels. innerActive has already launched at the end of last year its commercial service with Cellcom, Israel's largest operator, offering free mobile content.

The highly successful UK trial, which ended on 31 December ’07, gave UK mobile users the opportunity to download six free games from the Jamster site, in return for viewing advertising and promotions from sponsors. The mobile advertisements and promotion features were sponsored by top international brands including: Calvin Klein, Domino's Pizza, Fox, SPIDER-MAN™ 3, Paramount Pictures, What's on TV, Pick Me Up, NME.COM, and eBay.