I’d like to present a different take than proposed by Aner below. When I think of the effectiveness of this new marketing channel I look at the wider perspective of the platform and user habits. To pinpoint the discussion further I’d like to address the action that leads to the ad being served. Google’s definition of a mobile ad is as follows:

“Mobile ads are shorter text-based AdWords ads that appear on mobile websites or when users search Google from a mobile device. When users clicks on your mobile ad, you can send them to your mobile webpage or offer them the option to connect to your business phone.”

The issue that I would like to focus on is the fact that content discovery and search habits are COMPLETELY different when it comes to mobile browsing. As such, I believe ‘copying’ a successful ad model on the ‘pc web’ does not guarantee success in the mobile world.

Mobile web browsing is much more focused. You hardly ever start in one place and ‘wander’ to the next or discover new services and information based on advertising and hyperlinks. Its usually a much more focused action. You are ‘on the go’ you look up ’something’ - news, sports –> these are served via direct links in the Operator’s portal or your own bookmarks - done. There is no (or hardly any) plain search. If there is, its in the context of a use case such as maps, music or video search and that usually happens within a specific service (HooQs ).

In his MEM2007 insights post Aner mentioned (point #9) users tried Google mobile search and didn’t like it. I did too, and didn’t like it. Not because of Google but because content is scarce and the chance of random discovery which is part of the Internet’s main ‘wonders’ doesn’t [yet] exist in the mobile web.

I’m willing to agree Google’s drive is positive. If anyone can start some kind of drive that will motivate mobile content to be created thus leading to an eco-system that is able to sustain ads based on that content…it’s Google. Google’s mobile ads are basically an experiment that will hopefully lead to more mobile content and probably also lead to a change in the ad model.

One of the greatest killer apps for mobile search will be the integration of location based with search. Not on a country level, on the neighborhood level! If I want to buy flowers for my wife - Go to Google, search “Flowers” –> results = near by flower shops, with link to number and a map. That’s effective and thats the kind of “fused” service I am looking when it comes to using my mobile for search.

For now, the level of service is basic. The action is welcomed but execution not focused enough on leveraging mobile use cases.

      

I spent the week in Monaco at MEM2007. From the personal perspective it was a very exciting show, after all, first time HOOQs was on display. From that perspective we had an excellent show - great feedback and lots of users and leads. We have work cut out for us, but the good news is that the market is HOT! The need for personalized, open, operator independent web to mobile services is all over the place and is welcomed by users, operators, content providers, analysts and bloggers.

MEM2007 is not really a classic exhibition, it’s more of a conference. Participation is nearly exclusive to industry insiders and the tracks, therefore, are very professional. To a start-up-ist, these represent rare opportunities to take a 30,000 feet view and collect some insights that extend beyond the daily challenges. My own personal climax was not a single industry lecture or panel, even though all were very interesting at their own merit. To me, the most insightful session was a focus group with 10 different teenagers. These young adults were gathered from different countries - Australia, England, France, Italy, Finland, Germany - and were all surveyed about their digital lives. Here is some of what they told us:

1. The key elements teenagers look for in their mobile phones is appearance. Then come ability to play music, quality of camera and feature richness. 

2. Nokia is the most popular handset brand. Out of the 10 participants, 5 had Nokias, 2 had Samsungs, 2 had LGs (Chocolate) and 1 had a Sony Ericsson. 7 out of 10 devices were 3G.

3. They don’t do mobile clients - only 1 participant ever downloaded a mobile application. A game. Used it a couple of times and ditched it.

4. Teenagers are smart shoppers. They don’t mind paying for Internet content, but hate buying stuff they can easily find for free. In other words, they will not buy songs for 3 Euros a pop. Contrary to popular belief, they buy a lot of CDs in addition to downloading free music. They know how to manage their music collection and how to get their favorite music on their mobile device.

5. On they other hand, all participants testified they would gladly buy new content if only they could find it easily. All participants agreed that the mobile operator portals are close to impossible to navigate through.

6. On top, the differences between operators and handsets make it impossible for users to share experiences. Not tracks or clips - pure information about where and how to find them!

7. They things they on their handsets are better Internet browsing and memory. They really don’t get why MP3 and Video enabled phones come with such little memory.

8. They don’t mind advertising if it makes content free. They are already used to online ant TV advertising, why object to mobile ads?

9. They all tried Google on their mobile and didn’t like it. The mobile experience does not provide anything close to the internet experience.

10. They don’t do MMS. All of them tried and all of them claim that “it doesn’t work”.

11. If they had to give up their TV, Mobile Phone or PC, 9 out of 10 would give up their TV (the only other answer was PC). None would let go of their mobile phone.

These young adults were not screaming in a vacuum. It was great to hear executives from operators presenting plans to further breakdown their walled gardens and push flat data rates. It seems like it’s only a question of price points now. This is music to the ears of user centric service providers. To me, however, getting the bartenders in front of our booth excited and HooQed was most rewarding than anything!