Adotas

Where media buyers start online





Spotlight

China’s Mobile Charge: Madhouse CEO Joshua Maa Reveals the Framework and Future of the Chinese Mobile Beat

Written on
January 5th 2007
Author
by Kiran Aditham  |
Feed
   XML Feed

What’s the Madhouse business model?

As outlined, Madhouse derives its revenue through providing total mobile marketing solutions to agencies and advertisers, as well as from service fees charged to MadNetwork publishers. Mobile marketing solutions include campaign and mobile site design, hosting, as well an interactive messaging platform (SMS, MMS, WAP-Push, etc). The intelligent and automated functionality of MadServing (described below) creates a clearinghouse that enables a highly scalable business model, and reliable 3rd party monitoring and reporting.

Can you give me a Chinese mobile market overview?

While the mobile marketing sector in China remains in its infancy, China has well over 400 million mobile phone users; 90 million of those are mobile Internet users. By 2008 mobile phone users will approach 600 million and mobile Internet users will reach 230 million, exceeding PC Internet users.

Next generation mobile technologies, bringing increased speeds, convenience, and functionality, will make mobile media one of the most effective media and advertising platforms. In Japan, where mobile networks and business models are more mature, mobile advertising revenues have quickly ramped up to exceed 10% of the traditional Internet advertising market, creating a market worth more than US$500 million in 2005.


What are some of the Madhouse products/targeting strategies?

MadServing — Intelligent Mobile Ad Serving and Reporting
MadServing is an industry-leading intelligent mobile ad serving platform that enables targeted ad serving, management, and reporting.

MadServing enables advertisers to serve ads based on characteristics of the ad viewer:
- By city (i.e., Beijing, Shanghai and not Guangzhou)
- By carrier sub-brand (pre-paid Shenzhouxing; post-paid GoTone, Quanqiutong; youth brands M-Zone)
- By handset model (i.e. target only US$300 handsets and above or target specific handset brands: Nokia, Motorola)

In addition to user targeting outlined above, MadServing further enables advertisers to:
- Place caps on impressions, clicks, and actions such as unique-user use/download limits
- Enjoy optimized performance as top performing creatives are automatically served in
- Conduct mobile media buys based on CPM, CPC, CPA and time-based pricing models, in conjunction with various targeting criteria
- Monitor and adjust campaigns in real-time via the MadServing PC-based user interface
- Decide what time of the day or parts of the day to conduct campaigns
- Determine which sites feature the ad

In short, MadServing brings intelligent targeting and functionality to traffic generated by Madhouse Mobile Ad Network members, as illustrated in the diagram below.

Launched in early July 2006, MadServing has successfully handled intelligent mobile ad campaigns for a series of first-tier clients including Dell (Euro Interactive), MOTO (OgilvyOne), Canon (DAC), eBay, Apple iPod (Reddot-Prefero), Reuters, Baodao Optical, BenQ-Siemens, GlaxoSmithKline (McCann), Johnson & Johnson Pharmaceuticals (Euro RSCG), and Hennessey (ZenithOptimedia Interactive). As of October 2006, MadServing has served over 66.7 million ad impressions, with peak daily impressions reaching 39 million in September alone.MadNetwork — One-Stop Shop to Access the Industry’s Largest Network of Mobile Sites
MadServing provides advertisers with one-stop ad buying services across the MadNetwork of mobile websites, which includes the most trafficked sites on China’s emerging mobile Internet.Via MadNetwork, Madhouse represents:- Free WAP sector leaders in traffic such as QQ, Kong.net, 3G.net.cn, Sohu, TOM, WAPTX, WAP Shiji, Lxyes, Downjoy, WAP Diguo, mBook, and Zhuoyu
- Highly defined user communities that cluster around vertical sites (e.g., cars, travel)
- On-device portals (software downloaded and installed directly onto phones) and in-phone media players
- Carrier media
- As an agent at the carrier’s headquarters level China Mobile Monternet portal
- Directly at the provincial level
- Madhouse was chosen by the China Telecom Research Institute’s 3G Lab to be its sole strategic partner for mobile media & advertising on its 3G networks and business for a 2-year period beginning October 2006.

MadSolutions — Mobile Marketing Campaign Design and Execution The Madhouse team works with advertisers and ad agencies to design and execute innovative mobile media and cross-media campaigns. The MadSolutions team operates the interactive mobile messaging platform (SMS, MMS, WAP-push), as well as building, designing, and optimizing mobile phone WAP sites for corporations and campaigns. Via MadSolutions, clients are able to leverage traditional, cross-media buys, campaigns, and on-pack promotions, as well as existing CRM systems and member databases. Madhouse clients experience the benefits and effectiveness of mobile marketing as users come to interact with brands via mobile phone.

Business Development Strategy
As the operator of China’s largest mobile ad network, Madhouse is working closely with publishers to expand the size and reach of the MadNetwork. On the advertising client side, Madhouse primarily works with agencies and media buying houses to bring clients to the mobile media. Key partners already include GroupM’s Mindshare, OgilvyOne, ZenithOptimedia, EuroInteractive, McCann Worldwide, Isobar, Reddot-Prefero, and Digital Advertising Consortium.



Pages: « previous page 1 2 3 next page »

Tags: and
Article Sponsor

More Spotlights

Reader Comments.

No comments yet

Leave a Comment

Add a comment


Spotlight

Turn VP: Ad Network Shakeout “Inevitable”ADOTAS EXCLUSIVE – Turn bills itself as the world’s first Smart Market for online advertising. Turn’s VP of product and [...] more...

Adotas Partnership