Converge Weekly

Microsoft claims its Mobile Marketplaces is adding numerous advertisers daily and to date campaigns have exceeded expectations with click-through rates in excess of 20 percent. Brands such as Thumbplay and Jamster are examples of advertisers using the new mobile ad product. Microsoft Mobile Marketplaces is a mobile ad product that illustrates the performance advantage of combining mobile search and display.

“Advertisers in the Microsoft Mobile Marketplace have a broad range of goals,” said Jamie Wells, global director of trade marketing at Microsoft, Redmond, WA. “Early entrants are primarily mobile content providers who are interested in increasing their campaign ROI by maximizing user conversions and downloads of music ringtones.” Microsoft launched the marketplace to a select group of advertisers during the critical holiday shopping season. Consumers are on-the-go and more pressed for time during the holidays.

So far, Microsoft launched Marketplaces for Ringtones, and additional Microsoft Mobile Marketplaces are already in the works, including Holiday Shopping, Mobile Games and Wallpapers. Here’s how Marketplaces work: A user browsing a Microsoft mobile media property, such as Mobile MSN, Hotmail, Messenger, CNBC or Fox Sports, is presented with a display ad promoting a specific consumer product vertical, such as “Last Minute Holiday Deals” or “Hot Ringtones.” When a user clicks on a mobile display banner they are directed to a mobile landing page that contains a list of sponsored links from Bing for Mobile that are based on the specific theme or set of keywords associated with that Marketplace. “Targeting is less of a factor with Marketplaces versus traditional display campaigns, as the ad product is designed to attract a self-selected user base,” Mr. Wells said. “That said, all Marketplace campaigns generally are targeting mobile Web users.”

 The Microsoft Mobile Marketplace acts as a transformational mobile ad product, converting a generally reactive medium like mobile display into a more intent-based mobile search product, the company said. Benefits to the advertiser are cost savings and ease of implementation. Microsoft claims brands are able to increase their ROI by extending their mobile search campaign across key Microsoft Mobile display properties. “Mobile has the advantage of being one of the most interactive and versatile advertising mediums.

It is also a highly effective channel to reach on the go consumers,” Mr. Wells said. “With Microsoft’s Marketplaces for Mobile ad product, advertisers are able to realize the performance advantage of combining the power of mobile search and display while at the same time deliver an entertaining and interactive experience to mobile consumers,” he said.