Israeli Operator Cellcom Launches Ad-Funded Air Time Program

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Israeli Operator Cellcom Launches Ad-Funded Air Time Program

Israeli mobile phone operator Cellcom has rolled out a new ad-funded air time plan to lure in younger subscribers. The new model, similar to Virgin Mobile’s Sugar Mama program in the US, gives subscribers air time in return for watching ads, reports Reuters. Cellcom chief Amos Shapira said the program would make cellphone service less expensive for customers, without the company, which has 3.1 subscribers, having to susbsidize it.

Customers who sign on to the plan will be given up to 45 minutes a month of voice calls after viewing ads. They will also have to answer questions about the commercials to prove they watched them. Advertisers will pay 1.7 shekels ($0.48) per proven ad view. The operator hopes to hit 15 million shekels ($4.2 million) in ad turnover in its first years, with half of the sum being given to subscribers in free air time. Israel’s internet ad market was worth $90 million in 2007.

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Dianne See Morrison Sep 15, 2008 4:28 AM ET

Posted In: Advertising, Companies, cellcom, israel

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Mike Gauba

Cellcom is on the right track to convert mobile advertising into a paying business. The key to the success of this business is integrating viewers into the value chain rather than they being just at its receiving end. Broadcasting ads to the viewers is not a rocket science but getting the viewers to watch these ads is certainly one. The number of solutions to this issue are 1.designing every ad to be so exciting that the mobile users literally wait for these ads to hit their mobiles;2. Incentivize the users to watch ads;3 every ad carries a discount coupon and all these ads put together make a significant impact on the monthly bottom line.