Outlook or flashback? The (mobile) reward advertising model…

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Claudia Hautumm / pixelio.de

About 12 years ago, when I was about to join silicon, I remember my first meeting in the Chelsea office. I got to know the founders and management team in London and we had first discussions about the future of the business model. It was all very exciting to be in the UK, talking business with that innovative team that was reaching out to the big VC’s for more venture capital as web TV and community building seemed to have been the new rising starts for the next hundred years. And today all business is focussing on mobile…

At that day, we were brainstorming opportunities how to engage users in advertising, and how to reward them. Reward them, when they were watching the pre-rolls at our daily (on-demand) three minutes news show, when they were clicking on display ads, when were reading articles that might fit their business needs and then send them personalized advertising… and reward them when paying attention to any forms and activities of sponsored areas.

To be frankly open, the time was not ready for these types of advertising rewards from a user perspective (as well as the ad industry understanding the capabilities). However, we thought about clever loyalty programs and how to let users participate in the revenues we are generating. As we were working in the B2B scenario it was even more difficult to get this into the heads of our users. I remember, we even tested the silicon point reward model and had a personalized point counter on our side for some days. Yes, we were quite ahead of our times…

So, where are we today with the reward advertising model?

Some weeks ago, I met Julian Fourgeaud at Rovio (Angry Birds) when I was speaking at the istrategyconference in Amsterdam. Julian told me all about the opportunities they have with their mobile gaming business. If you think about their reach – Angry Birds just cracked the 200 Mio. downloads barrier- it all makes perfect sense. I was surprised how much time people spend with the game, and how addicted people became during the istrategyconference dinner (just ask my kids…) but wondered how to make a clever advertising model out of it. And I thought if reach is as benefitial as relevance form an advertising point of view. But that is another story…

Today, I was reminded of the old silicon days. I came across a new business model which is called kiip. Their business is quite simple. A code is implemented in a game which is basically an ad. The ad is a reward points model or coupon that shows up in mobile games when people achieve certain high-scores or levels in the game. So, when you beat a level, you might get a coffee from Starbucks or a discount from MINI’s merchandising shop. Or you just collect points via their loyalty schemes which motivate you to think about purchasing their latest products.

Here is the video how kiip works…

Kiip: An Introduction from kiip on Vimeo.

Spot On!
There are so many advertising opportunities or loyalty programs (i.e. like Multiply to increase the worth of brand fans) these days that won’t be as offensive as the traditional advertising model. HOWEVER, in my eyes there is one thing which needs to happen: Personalization. With silicon those days we saw who was logged in, just like Youtube, Facebook and Twitter do. So, personalized reward advertising ad models should no be a challenge anymore (under given permission). Still, I cannot see any of these rewarding systems really working for now. Or is Facebook Stories heading towards this idea? Groupon, Foursquare and Gowalla could come up with similar ideas if they just collaborate with the guys from kiip. And if credit card providers as well as loyalty card providers would change their strategies and group with these guys, chances would be amazing to make advertising engaging, personal, rewarding and finally efficient for brands. We would get offers in a personalized format, at the right time and in the right environment.

What do you think about reward advertising models? Is this an exiting area to focus on? Do you fear that data privacy (remember this Google spoof commercial…) becomes an issue as usual? Let us know…

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2 Kommentare zu "Outlook or flashback? The (mobile) reward advertising model…"

  1. Study: Social Media and Advertising – The next hype for marketers…? am 02.08.2011 10:39 

    […] For B2B companies LinkedIn got some great assets, not only with their special groups. YouTube is some higly underated platform in my eyes. It can be used for different visual aspects in B2B, but also viral topics and campaign opportunities in B2C. If restaurants, service providers or entertainment brands want to head for local promotions, Foursquare (and Gowalla in some areas – also 5% increase forecasted) offers some fantastic buzz potential. Whether Zynga is really so powerful for marketers to promote their offerings, needs to be seen and proved in the future. I would rather recomment and elaborate on reward advertising models. […]

  2. Incentivized ads boost brand perception, study finds am 20.09.2011 12:29 

    […] with the masses of advertising we are faced with on a daily basis. Mobile advertising shows some similar development in terms of incentivization. Often companies said that the value of ads is getting lower as they […]

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