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Brand owners gear up for 3G streaming of interactive video ads
Tuesday, 23 November 2004

New Media Age, Dominic Dudley - Brand owners are to start streaming video ads to 3G mobile phones within weeks, in a potentially powerful new way of delivering both advertising and content and services.

As well as representing a far more advanced way to advertise, the service also offers a new source of revenues for content providers and mobile networks to exploit.

The new system, known as video shortcodes, has been developed by mobile technology firm MX Telecom. It'll involve 3G mobile users dialling a shortcode, opting for a video call and then being sent streamed video content to their mobiles.
The first network to launch it is likely to be 3, which is expected to start offering it in weeks. 'It's significant in the way customers get to content in the long-run,' said a 3 spokesman.

The mobile operator will initially focus on offering existing content, such as news and weather, through video shortcodes, rather than using it as an advertising platform.

'It's only a matter of time before all the other networks go live with this,' said Mark Fitzgerald, MD of MX Telecom. He pointed to a wide range of potential services, including users interacting with the video through their keypad, video phone-ins to TV shows and linking horseracing footage with calls to a bookmaker's call centre.

Some brand owners are known to be looking closely at the potential of the service. Although no advertisers have yet been confirmed, NMA understands that both a major FMCG company and several music and TV firms could go live with services in weeks.

Early uses are likely to include streaming TV ads to users' phones and music companies offering artists' videos. As the content is streamed rather than downloaded onto phones, it avoids digital rights management issues for content owners.

Pamir Gelenbe, co-founder of mobile marketing firm Flytxt, said his firm had seen keen interest from potential advertisers and predicted that it would become a mass-market channel within 18 months. 'There are a lot of people lined up,' he said.

However, it's likely to be adult services that dominate in terms of revenues, with one industry insider predicting that they will account for up to 70% of all content delivered.

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