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Wireless ad: Heralding an Epoch of Profit for WAP

Focus Media(NASDAQ: FMCN)spent US$30 million on its purchase of Digital Galvez in March 2006 and formally entered the wireless ad market by establishing Focus Wireless. In the same month, China Mobile initiated its own ad service based on Monternet in collaboration with Fractalist. In early July, China Unicom followed suit by letting its merger subsidiary Uninewspace start actual operation.

Rivals on the wireless front

Fractalist is fortunate in having gained both fame and more than 100 million registered Monternet customers through its cooperation with China Mobile. China Mobile has 260 million users while its registered Monternet users amount to more than 1 billion with an average record of 3 million daily users.

There is another wireless space apart from operators own wireless platforms; 80 thousand independent WAP sites. CEO of 3G portal Deng Yuqiang says, Monternet has only a limited space for ads, its server page has only a few pieces of advertising and it couldnot cast ads on SP web pages but we have 50 channels to place them.

People from the industry have said that there would be an excellent platform for ad transmission if the present WAP resources could be reorganized. Now, Focus Wireless is working on just that. Its CEO Xu Maodong announced that Focus Wireless has incorporated more than 20 of the independent WAP sites with the biggest volume in its ad publishing platform, including leaders of the sector such as Kongzhong, Joyes, MOABC and WAPtx.

Xu believes that China Mobile is the first-choice partner for an ad agent, for Monternet has undeniable advantages. He said Focus Wireless is making active efforts to win over China Mobile. We are an open-minded agent, and will target every platform of value, whether it is an independent WAP or an operator. Now we have made substantial advances in cooperation with China Mobile.