Wednesday, 17 September 2008

Ericsson Signs 1st Contract for Hosted Mobile Advertising

Communications colossus, Ericsson and Dutch mobile network operator KPN have signed a contract for hosted mobile advertising, marking Ericsson’s first contract for hosted mobile advertising.

Under the agreement, Ericsson will provide KPN with end-to-end business solution for managing and delivering targeted advertisements to be displayed on mobile phones and other devices.

The hosted service will allow KPN to deliver targeted advertisements based on consumer preferences to individual network users via mobile internet pages and various messaging services.

The advertisements can be targeted based on each user’s personal preferences. Advertising agencies can create and maintain advertisement campaigns through reporting tools.

KPN, commercially launched its first mobile advertising services in May 2008 and has since piloted such services with major advertisers and is currently testing them further.

The company said it plans to work out opt-in programs for customers to keep kosher with legal requirements, and is researching appropriate incentive programs.

“KPN is proud to announce a strategic partnership with Ericsson. Ericsson’ platform suits KPN’s need to add relevant advertisements to operator services to end users, in which opt-in plays a crucial role,” said Patrick Kuijsters, marketing director KPN Mobile.

“KPN’s vision is to reduce waste of advertisers’ media spending and to deliver relevant offers to its consumers based on their desires. Ericsson is a crucial partner in realising this vision, and is willing to help KPN shape this developing market.”

Mobile advertising is a developing medium that supports new business models with promising forecasts. Mobile devices, as the most personal medium, provide opportunities for these new business models.

“Hosting is a growing segment within Ericsson and we are pleased to collaborate in exploring new possibilities in the multimedia environment,” said Nils de Baar, President, Ericsson in the Netherlands.