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Orange searches for new mobile ad models
Stuart O'Brien Sep 30 2008, 9:33am
UK operator touts 'cost per engagement' as an alternative to established internet ad models.
Orange hopes new business models will emerge specific to mobile advertising, which has so far adopted practices already established on the internet.
Speaking to ME, Orange's head of third party services said the mobile industry was still looking for its 'killer' business model combination, and touted 'cost per engagement' as something worth more exploration.
He said: "Each ad format lends itself to a particular kind of model. Mobile banners and ad-funded video tends to go the way of CPM, whereas mobile search defaults to CPC. It’s very reflective of how the internet works.
"What we’ve not seen yet as an industry is the killer mobile combination. CPC didn’t really exist on the web until sponsored search came along, so maybe we’ll see something totally new emerge in wireless too. Cost per engagement, for example, where ad payments are made depending on users making a phone call or downloading content."
You can read the full interview with Steve Ricketts by clicking here.
