There are now host of companies that are trying to monetize the mobile site, SMS service or the mobile applications developed by independent developers. This is similar to the Internet model where a web site ower can include content specific advertisement get paid based on the click. Now for mobile a similar model has been developed by companies like AdMob, ZestADZ etc. Hovr has gone one step ahead and can allow the game developers to monetize games that they have developed i.e., end user gets the games free of charge but it contains the advertisements.
So here is the summary of the model provided by ZestADZ (http://www.zestadz.com/index)
- Built on the permission marketing concent (http://www.permission.com) which means Ads are served to subscribers along with premium services as they get that for a subsidized price or free in return advertising
- It offers the ad inventory that are location sensitive and contextually relevant. Supports non-intrusive, interactive mobile advertising which makes its possible to offer content/services free of cost
- Revenue model
– with advertisers: CPC (click per cost) or pay per click (PPC) for text impressions and CPM (click per thousand impression) for banners
– Pays out the publishers within a agreed period of time after billing which is typically 30 days. It is mentioned that 25% of the ad revenue is shared with publishers
- Typical traffic that ZestADZ bosts – 1 million expression per month for SMS (how? where the site originates or is it originated from its partner applications/services?) and WAP traffic 0.5 million impression per month
- supports advertising in Hindi (using Tensor Technologies MeghDoot Hindi SMS solution with Mobile Transliteration Technology)
The channels that the ZestADZ offers for the campaign management is SMS, WAP and J2ME applications and games. That means the focus is more on the data space of the operator. It is interesting that they expect the advertisers to pay the money in advance…
For the SMS, it charges per SMS sent and inserts context specific advertisement e.g., if there is a key word lunch in the message then some eat out place is appended to the SMS. And for WAP site, advertisement is inserted as text or as banner.
Following is the logical architecture of this system. But in this architecture it is not sure whether the data analytics system would have the access to external systems like the device information or the usage pattern of the subscriber. So may be only by tracking the WAP usage pattern the system must be tracking the subscriber behavior. But can it maintain per subscribers i.e., assuming 40% of the 170 million Indian subscriber information is maintained?

For the publishers or the service developers, ZestADZ offers API to embed the advertisement e.g., for SMS API call to their server and for J2ME applications & games MIDP1.0 APIs.
