Alcatel-Lucent, Placecast marry location with mobile ads

Alcatel-Lucent (NYSE: ALU) is trying its hand at mobile advertising with the help of location-based advertising provider 1020 Placecast. The companies today announced plans to jointly provide mobile operators and brands with location-targeted ads based on Alcatel’s geofencing technology and Placecast’s location-targeting capabilities.

Alcatel-Lucent already provides ad-insertion for IPTV but is hoping to capitalize on the burgeoning market for relevant mobile ads – and the equally hot market for location-based services (LBS). The platform lets consumers opt in and provide operators with a list of the stores and brands from which they would like to receive content and information. They can also set the parameters of the service – how often they receive ads from each individual brand, at what times or in what form – SMS or MMS. The ads they receive can come in the form of the classic Starbucks coupon example or a notice when their favorite line at a nearby Target is on sale.

“When you add in a click-to-call or click-to-map, the relevancy of that message greatly increases the effectiveness of the marketing over showing a user a standard ad,” said Alistair Goodman, chief executive officer of 1020 Placecast. “Part of what is unique about the combination of our technologies is the ability to create that offering and do it at scale.”

Placecast works with the advertisers to create scalable, location-based messaging campaigns for mobile, and Alcatel-Lucent manages and delivers the content on the carrier’s behalf. Alcatel-Lucent’s geo-fencing technology lets the advertiser create certain regions for targeting – as broad or specific as they want. When the consumer enters that geofence, Placecast delivers a proximity-based ad or marketing campaign. Alcatel-Lucent won’t reveal exact locations, just the fact that the consumer entered a designated geographical area. Mark Disbrow, head of Alcatel-Lucent's LBS business, said they adhere to the privacy requirements of any carrier they work with.

Alcatel Lucent, along with Telcordia, is a member of the TM Forum’s Counter Encounter, an initiative for service providers and suppliers to determine how to best manage content and generate revenue from mobile services. Advertisements are one aspect of what it will take for carriers to successfully enter the content business, according to Grant Lenahan, Telcordia's vice president and strategist of service solutions. He stressed that mobile ads have to give consumers something in return, and location by itself isn’t necessarily the most targeted way to reach someone on mobile.