Feedback on Today's "Myth Buster" Article
Krish Arvapally, the founder and CTO of Mojiva, had an interesting article today on MediaPost busting the "Seven Myths of Mobile Advertising"
The post was insightful and promotes the strong viability (and superiority) of mobile advertising. Here are his 7 myths that he shattered:
Myth # 1: Smaller screen, smaller effect
Myth #2: (Mobile only delivers) Low CPMs
Myth #3: Mobile (banner) ads are harder to design
Myth #4: No unique user detection and targeting
Myth #5: Creating a mobile Web site is difficult and expensive
Myth #6: A perceived lack of ROI
Myth #7: SMS is the only type of mobile advertising
I wanted to expand his myth busting on four of his items. 
Myth #2: The market will define the proper CPM. If mobile delivers higher value than other forms of advertising, more advertisers will want it and prices will go up, and if it doesn't, prices will decrease. In our world of mobile voice advertising, we've been delivering very strong ROI's which is keeping prices up in the $20 to $80 eCPM range -- which is very healthy.
Myth #4: If a user goes to a mobile site, it's hard to uniquely identify them, because there are no cookies to place on the user's phone. Krish talks about other techniques that Mojivo has designed which can zero in on the user. In our case, its simple -- we have a phone number. This allows us to easily put frequency capping in place, along with employing yield optimization and better targeting.
Myth #6: See my recent blog post about +1000% ROI's we deliver through voice-based mobile advertising.
Myth #7: When busting Myth #7, (SMS is the only type of Mobile Advertising) Krish failed to add voice advertising to the mix. Tsk, tsk.
SMS is ubiquitous but lacking in media richness. WAP banner ads are richer, but only 19 to 20% of mobile phones can access WAP sites. Voice on the other hand, is both ubiquitous (all 5 billion of the worlds phones can handle voice) and is rich and compelling in its message.
We are inserting millions of relevant audio ads each month into informational phone calls along with sending associated SMS and MMS follow-up information. We're getting 2 to 8% CTR's and providing great ROI's for our clients.
Here's another recent example: We just finished a campaign that was inserting geo-targeted ads for Chevys Fresh-
Mex restaurants to mobile callers of AOL's Moviefone service. The ad said "If your're hungry before or after your movie, stop by Chevy's which is just 2 blocks north of your theater. Press 1 now for a promotion code for $10 off a meal tonight." Each ad had a different theater-restaurant combination.
We served tens-of-thousands of ads and delivered thousands of promo codes to hungry callers. The callers redeemed these codes by showing the message on their phone to the server and enjoyed a tasty meal while saving a few bucks. Now that's compelling advertising that works!
Like Krish said "brands and agencies should start leveraging the mobile medium now as an easy-to-use, creative, targeted, and measurable new revenue opportunity."
I agree.
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Reply #1 on : Mon October 26, 2009, 11:25:55