Another big obstacle in making money out of mobile content is the huge chunk of revenue operators take from each transaction be it WAP billing or PSMS .
40 -55 % is the norm from the end user price. So if you sell a video clip at 3 euros you will be lucky to receive 1.50.
Off portal content providers get a very raw deal. If you are on portal with an operator you still the get the same revenue share but the crucial difference is you are not paying for traffic. The operator provides it to you.Cozy.
Its only in mobile that such obscene revenue grabs are tolerated.Imagine Credit Card processors taking 50 % of the transaction in commission.Internet commerce would be dead overnight !
Yet we all accept it. Why ? Well the operators have us by the dangly bits.They know that operator 'on phone billing' is the only viable billing method for content purchases so its a case of ' if you don't like it - tough ' !
However, it is a very stupid short term ' not looking further than the end of your snout' policy that has simply strangled off portal mobile content together with the operators not allowing genuine free access to the mobile web.
For smaller companies there is no incentive whatsoever to set up mobile storefronts with all the cost and hassle this entails and to be treated like a piece of dogs poo by the operators.
You can buy expensive on portal advertising ( maybe, but this is another topic ) but you still get the same crappy revenue share even though you are paying for advertising on their portal.
So is there anyway at all to make money from selling mobile content when faced with these obstacles.Well yes there is , but do not believe all the rubbish you read about how easy it is to do so.Anyone telling you how easy it is is trying to sell you something.
Wednesday, October 28, 2009
Monday, October 26, 2009
making mobile money
Well you can submit your new mobile site to the big search engines and handle mobile search requests for mobile operators but ... !
Remember a few years ago there was all this talk , no hot air about the operators opening up and allowing subscribers off portal to the brave new world of open access to the mobile web ? Well several things happened that screwed that up.
1) The operators developed a fixation with forcing PC designed websites onto tiny mobile screens.Transcoding engines where rolled out to literally force the issue !
2)Many operators partnered with or developed advertising platforms that hijack mobile search at the critical moment so users tend to click anything they find on page 1 so of course click the premium advertised links.Note that these links always point to mobile sites ( WAP / Xhtml ) and not Internet sites as the operators KNOW that Internet sites do work correctly on mobile phones.So why do they insist that Web sites are option number 1 offered to mobile surfers ?
When a user wants to buy a mobile game for example he wants to find a correctly designed mobile site with device recognition and WAP billing so he can seamlessly find,download,pay for and enjoy his game.Not wade through Web sites trying to find somewhere he can get his game.
It is now harder to find quality off portal mobile traffic than it was 3 years ago.
Unless you want to pay through the nose to buy into these advertising deals that is.
Its a huge mistake to view the mobile web as an open, level playing field like the Internet is.Its not open and its not level.Its tilted very much in favor of the operators and each operator controls what if any access it will grant to its users to find and consume mobile content outside of its control.
Remember a few years ago there was all this talk , no hot air about the operators opening up and allowing subscribers off portal to the brave new world of open access to the mobile web ? Well several things happened that screwed that up.
1) The operators developed a fixation with forcing PC designed websites onto tiny mobile screens.Transcoding engines where rolled out to literally force the issue !
2)Many operators partnered with or developed advertising platforms that hijack mobile search at the critical moment so users tend to click anything they find on page 1 so of course click the premium advertised links.Note that these links always point to mobile sites ( WAP / Xhtml ) and not Internet sites as the operators KNOW that Internet sites do work correctly on mobile phones.So why do they insist that Web sites are option number 1 offered to mobile surfers ?
When a user wants to buy a mobile game for example he wants to find a correctly designed mobile site with device recognition and WAP billing so he can seamlessly find,download,pay for and enjoy his game.Not wade through Web sites trying to find somewhere he can get his game.
It is now harder to find quality off portal mobile traffic than it was 3 years ago.
Unless you want to pay through the nose to buy into these advertising deals that is.
Its a huge mistake to view the mobile web as an open, level playing field like the Internet is.Its not open and its not level.Its tilted very much in favor of the operators and each operator controls what if any access it will grant to its users to find and consume mobile content outside of its control.
getting started
So you want to sell mobile content. If you read and believe the hype and forcasts then you would be right to think that there is a vast pot of gold at the end of the content rainbow.The information that is not so widely avialable is ' how' you sell content.
Lets say you have signed up to a mobile content site builder and chosen a billing package from a billing aggregator both on hefty monthly fees, then what ?
Here you have (eventually ! )your spanking fully loaded mobile content storefront with integrated operator billing and you ready to sell content, but to whom and how ?
To mobile users of course ! Well yes, but its not quite that simple, although you have probably been led to believe that it is fairly simple ? Just look at the numbers ! Billions are spent on mobile content each year and its rising fast ! Yes but........
Lets say you have signed up to a mobile content site builder and chosen a billing package from a billing aggregator both on hefty monthly fees, then what ?
Here you have (eventually ! )your spanking fully loaded mobile content storefront with integrated operator billing and you ready to sell content, but to whom and how ?
To mobile users of course ! Well yes, but its not quite that simple, although you have probably been led to believe that it is fairly simple ? Just look at the numbers ! Billions are spent on mobile content each year and its rising fast ! Yes but........
welcome to mobile content reality
Hi everyone , anyone . Been thinking about a blog for a while so here goes.
If you are or are thinking about working in the mobile content space , starting or running a company then then this for you. Its going to be a bullshit free zone.Its sole purpose is trying to figure out what and where is making money,the markets to get into and the ones to avoid.
If your not flush with VC funding like us I reckon that any tips, warnings and pointers to being profitable will be welcome ?
I will try to get topics started but input from you will be vital if this thing is going to be any help whatsoever.Whatever I say will be as I see it , and they may not be the way it should be seen. I am not a 'thought leader' I run a mobile content company that needs to pay its bills each month and i am sure i am not alone.
If you are or are thinking about working in the mobile content space , starting or running a company then then this for you. Its going to be a bullshit free zone.Its sole purpose is trying to figure out what and where is making money,the markets to get into and the ones to avoid.
If your not flush with VC funding like us I reckon that any tips, warnings and pointers to being profitable will be welcome ?
I will try to get topics started but input from you will be vital if this thing is going to be any help whatsoever.Whatever I say will be as I see it , and they may not be the way it should be seen. I am not a 'thought leader' I run a mobile content company that needs to pay its bills each month and i am sure i am not alone.
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