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innerActive and Buongiorno Team Up to Provide Free Ad-funded Mobile Entertainment

innerActive Smart Media, a global provider of innovative, ad-funded entertainment channels, is teaming up with Buongiorno, the world number one in mobile entertainment, to offer its customers free ad-supported content (e.g. Games, IM and Video). The agreement signifies innerActive's first commercial ad-supported launch with aTier One off-deck portal.

HotSMS, part of Buongiorno Marketing Services, will offer this free ad-funded entertainment service directly to its members of HotSMS.com. innerActive's solution also enables Buongiorno to offer it's HotSMS.com subscribers the choice of free content, in return for viewing non-intrusive, contextual advertisements and product placements that are dynamically embedded in-content. The advertising sales will behandled by HotSMS.

40% click-through rates:

Results from earlier trials of innerActive's platform have produced outstanding click-through results for brand owners of around 40%, as well as downloads ten times higher than for paid-for games. These compelling results are also partly due to the platform's self-learning capability, which learns what offers and incentives users respond to and modifies future promotions accordingly.

The ad-funded model also gives content owners, brand owners and portals access to valuable new mobile user segments: in trials, 78% of games players were new users, who had never downloaded a game before. Users can also share ad-funded content for free with others, thereby creating a strong viral market that can be profiled and targeted.

Additional advertising revenue streams:

Ziv Elul, Co-founder and Co-CEO of innerActive comments: "Offering users free games, in return for viewing advertisements and promotional offers, opens up a valuable new untapped market for advertisers, content owners and portals and also provides users that are unwilling to pay for premium content with a high quality, yet free, alternative. The agreement with Buongiorno to use our technology to offer ad-funded content to their customers represents a major step forward in this nascent sector."

Commenting on the ad sales potential, Ruben Troostwijk, Managing Director at HotSMS, says: "We're certain that innerActive's innovative and effective way of reaching target mobile users with ads and incentives will appeal to top 500 advertisers and ad agencies. Our ad sales experience combined with innerActive's ad-funded entertainment channel is sure to be a winning combination."

The agreement marks the second commercial launch of innerActive's ad-funded entertainment channel; the company has been working with mobile operator Cellcom in Israel since March 2007. [FierceWireless]

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