The Nokia Adservice may well be one of the most significant announcements this year and I believe, it will transform the industry.
Here is my analysis on the Nokia ad service.
To understand why this is a seminal announcement, we need to understand that the advertisement model is very significant. It is the main driver on the Web (web 20) (and that includes all forms of advertising like video).
I believe that the Ad model will also be a major driver to the Mobile Web
Now this is going to hurt
The Nokia ad service provides a very interesting alternative to third parties because it is an Off portal initiative across all Nokia handsets globally.
This truly changes the game from an advertiser perspective because:
a) They deal with one entity(Nokia)
b) They potentially access ALL Nokia devices ACROSS operators globally
c) They can target the customer base because the Web/Mobile gateways are run by Nokia (off portal)
From a third party advertiser perspective, working with a company like Nokia would be far more preferable than working with the many Operators globally and not getting anywhere.
My ten cents worth here is also the operators have often tried to market mobile as an FMCG brand would market baked beans. I see a more reliable partner in Nokia than I would Vodafone or Verizon for example.
Ajit thinks that a) The Nokia ad service will revolutionise the Ad serving market for mobile devices
and b) It would help many companies to actually reach global customers (all Nokia devices) and also target global customers(since much more about the customer is known in this scenario)
So mobile, the 7th Mass Media is growing up, aided by the "Y" of convergence and a mature industry. How much will be left for the incumbents? A new ecology is being now built, with it new business ands distribution possibilities. We are witnessing the shift from individualised and pesonalised media consumption towards consumption as a networked practice. You see networks are sticky in ways that mass media never was, it requires a very different approach to what we create, how we create it and how we market it. And, the change wrought by the networked information environment is structural.
Think about it 2.6 billion mobile devices vs. 1.6 billion TV sets. Even using Sarkov's Law, the Law of the mass media, its a no-brainer. A media industry struggling to hold onto its core audience in the face of competition from all other media may be forced to take greater risks to accommodate consumer interests, I would suggest.
And so Darwinism has rudely arrived in our business and media ecology. And of course it was Darwin that wrote that it is not the most intelligent nor the strongest that survive, but those most adaptive to change.
It’s a world of Social Media not Mass Media. Niche mass audiences - forming around passion based interests that are not geographic specific.
So, as a brand you have to think very hard how you are going to build your propositions and business models, structure your organizations to harness the true potential of our New media World
And I know many companies are starting to scratch their heads, and think about thorny issues of change. But, let me stress its not about copying MySpace or YouTube. It’s about understanding the underlying principles and making sense of them for your organisation
For conventional businesses it’s the hardest act to follow. Look like Nokia has decided to give it a really good go. And the 7th Mass Media is delivering something very different from the other 6. A man with one machine is doomed to isolation, but a man with two machines or even 3: TV, PC and mobile can belong to a community
When people who have access to multiple machines consume – and – produce – media together, when they pool their insights and information, mobilise to promote common interests, and function as grassroots intermediaries ensuring that important messages and interesting content circulate more broadly. Rather than talking about personal media we should be talking about communal media
that becomes part of our lives as part of a community, whether that be face to face or within a virtual context.
More complex, yes, but its a reality, and the technology and capability are there.
Intelligent marketers will understand that this could enable release the value of the long tail, vs. focussing on the short dog. In a manner that until this point was thought impossible.
We live today in a world of networked consumption, that is global from day 1. So what's it going to be an Ad campaign with ITV? or CBS or a targeted global campaign with Nokia.