News
mBlox: Advertisers should pay for the data they use
Stuart O'Brien Sep 18 2008, 6:14pm
mBlox exec chairman calls for revision of mobile ad business models.
The mobile advertising industry needs to adopt a 'sender pays' model for data if rich media is to work as part of campaigns.
That's the view of mBlox executive chairman Andrew Bud, who argues that advertisers need to be doubly careful of the charges their messages will incur to end users, many of whom won't have a flat rate data tariff.
A 'sender pays' model would mean data charges are absorbed by advertisers, who can buy data in bulk at wholesale prices, thereby ensuring that no consumer is directly charged for ad delivery.
Writing for ME, Bud said: "With the current system of data tariffs, mobile advertising is unfeasible, as it is not ethical to make consumers pay for the delivery of advertising... woe betide the advertiser who drops megabytes onto the bill of someone without a flat-rate bundle."
To read Bud's full take on mobile advertising and the issues it faces, click here.
