Leading direct response media agency tests mobile buying platform
ID Media, the nation's largest direct and interactive media services agency, has partnered with 4Info to offer SMS text messaging services to clients.
4Info is a purveyor of SMS publishing and advertising services and claims to run the largest SMS ad network in the country. The deal with ID Media, which is part of Interpublic Group of Companies Inc., will extend the direct response model to SMS.
"We are trying to develop smarter, ROI-focused ad buying models for new media platforms such as mobile," said Josh Martin, vice president and director of emerging media at ID Media, New York.
"ID Media are the experts when it comes to planning, buying and analyzing direct response media," he said. "We are applying this expertise and cost-per-metric-focused discipline of planning and buying to new media.
"We are also trying to make sure that our ad messages are integrated in relevant ways that would appeal to a consumer. This will hopefully lead to better response and conversion rates than other traditional or emerging media platforms."
4Info, San Mateo, CA, delivers real-time information related to stocks, sports and entertainment through print, television and online ads. Users request this information by sending a text message. An ad of typically 40 characters in length will appear under the requested SMS content. The ad's response mechanisms are click-to-call, click-to-WAP, SMS and click-to-email.
Also, 4Info sells inventory on a CPM basis, with content from NBC, MTV, TV Guide, Evite, USA Today, MySpace, NBA, E!, SayNow and 1-800-FREE-411.
ID Media's choice of 4Info as partner was determined by its relationships with many traditional media outlets.
"Clients really have not demanded an SMS offering," Mr. Martin said. "They are definitely curious about it and always want to learn more. ID Media is very proactive in bringing new, ROI-focused opportunities to our client base.
"Often times, and similar to 4Info, we partner with specific vendors to develop our own unique buy models for their media inventory," he said.
ID Media plans and buys direct response media for clients such as American Express, Johnson & Johnson, HBO, Computer Associates, Verizon, Nautilus and Kaiser Permanente.
Play for pay
Through the 4Info deal, ID Media clients will pay only when a consumer responds instead of just an impression delivery. This will not only base advertising on call-to-action performance, but also create interaction rates and mobile call-to-sale conversion ratios.
"Our clients will have the ability to test [the] 4Info service based on the number of responses that are generated," Mr. Martin said. "This limits some of the financial risk of testing a new media platform. It also allows us to utilize new media platforms along with traditional vehicles to meet and exceed our established goals and expectations.
"So we need to make sure that client acquisition and ROI goals are not compromised when shifting budget to test a new media opportunity," he said. "We will also understand what the appropriate rate will be moving forward for 4Info ad units based on the responses generated."
ID Media has already planned and implemented numerous campaigns and media tactics with mobile.
While Mr. Martin won't name names, he said the agency recently used SMS as an alternative call-to-action for an out-of-home media campaign. The company has also run mobile banner campaigns and tried to capture email and phone responses.
In addition, ID Media has planned and implemented mobile video and mobile search campaigns with specialist companies such as MobiTV and Slifter.
The 4Info deal will take ID Media's engagement with mobile a step further.
"It will definitely address ad pricing as well as consumer interaction and engagement metrics," Mr. Martin said. "We will also be able to better understand the quality of those responses, based on how respondents convert on a back-end basis.
"Hopefully, it will also get our clients interested in getting their feet wet with mobile in a manner that demands very little financial risk, exposure and set-up," he said.