Telstra Signs Mobile Ad Deal

MELBOURNE -- Telstra's MediaSmart® and WPP’s Mobile Alliance today announced the signing of a deal to capitalise on the revolution underway in the mobile advertising market in Australia.

The deal is built on a partnership to deliver mobile display advertising for major brands including Volvo, Kraft, Ford, Diageo, HSBC, P&G and Motorola across Telstra’s BigPond mobile portal.

This provides access to more than 2 million Telstra Next G™ and 3G mobile customers, while opening the door to four million impressions per month for participating advertisers.

The deal follows the major announcement last month from Telstra and BigPond to provide an unrivalled range of free-to-browse content for Telstra Next G™ and 3G customers, which is expected to fuel massive growth for mobile advertising.

For MediaSmart®, a key division of Telstra’s $2 billion advertising business Sensis, the deal cements its position as the industry leader in a rapidly growing market.

“MediaSmart’s® partnership with Mobile Alliance, together with similar deals we are exploring with other potential partners, paves the way for innovative and highly targeted mobile advertising campaigns that will help define the future of mobile advertising,” said Sensis’ General Manager, Digital and Vertical Markets, Thomas Arthur.

“To date, there have been some clear barriers for potential mobile advertisers, including uncertainty about pricing models, effective use of the mobile medium, mobile ad production and the relationship between the medium and advertisers’ existing communication mix.

“Working with Mobile Alliance, we will address these concerns by providing advertisers with a flexible environment where they can test new technologies and trial different creative executions,” he said.

Mobile Alliance Chairman, Y&R Brands CEO, Mr Matt McGrath said the new partnership will provide WPP clients with cost effective insights into how best to harness the enormous potential of the mobile marketing sector.

“We know from previous experience that consumers are keen to explore and interact with mobile content. This new partnership will provide us with guidance on how to use mobile as a branding medium, as opposed to just a promotional channel, as well as giving us a clearer indication on how various models can be monetised. We will also draw on WPP’s global resources and IP to provide our clients with first mover advantage in this untapped channel,” said Mr McGrath.

Telstra Corp. Ltd. (ASX: TLS; NZK: TLS)