Free calls in the air, but will advertisers bite?

Neeraja Kumar in New Delhi

Advertisements have already made radio, TV, and Internet more or less free of cost for users. And next on the list could be calls on mobile phones. Under a new concept called “ad callouts” all a customer needs to do is prefix three digits to a number he wants to dial, listen to ads being aired and get some free airtime.

But even as ad agencies are excited about the idea, telecom companies are cautious. Interestingly their wariness stems from the fear that the advertisers may not use this new media.
According to Mr Anil Nayar, president - mobility, Bharti Enterprises, “It is a wonderful idea but we are not planning to start this as of now, because worldwide we do not see a very enthusiastic response to it.”

Meanwhile, Escotel, one of the few operators venturing into the ad calls arena, says it does not see it as a revenue generator. “It passes the financial burden from the user to the advertiser,’’ says Mr Rajeev Burman, chief sales and marketing officer, Escotel.

The company is currently developing a software to implement the ad calls system on its networks in Haryana, Kerala, and UP (West).

Others like Shyam Telecom are wary. Mr Rajiv Mehrotra, managing director, Shyam Telecom, believes callout ads are premature for India.

Then there is the issue of whether the idea will go down well with advertisers — the people who can make or break the concept.
Mr Nayar says advertisers may not be comfortable using this media because “there are chances that cell users might press those digits, hold the phone away while the ad is being relayed and then make their call.” And, it would have to compete with the electronic media for a share of the advertising pie, he added.

However, Mr Rohit Ohri, vice president of HTA — a leading ad agency — feels “its a damn good idea”. He reasons that customers would want to hear the ads ‘‘as they are being rewarded for listening, and it does not even amount to spam.” He also believes ad calls will complement the electronic media.

Mr Sohail Seth, CEO, Equus, however is more cautious: “It’s early days yet. Unless technology is test marketed in consumer domain, it is a shot in the dark.” He also feels that only lifestyle brands will work in this media.

Also, as Mr Burman points out, more than 70 per cent of cellular subscribers are pre-paid users on whom cellular companies have absolutely no data.

On the positive side, ad calls would allow advertisers to directly reach a high-disposable-income audience more receptive to new products, rather than air ads on expensive prime time rates, which may or may not reach the target audience. And the advertiser can target specialized ads at post-paid users, about whom the companies have complete information.

“In the case of the pre-paid subscribers, even if it works on a random basis, this will be a fairly economical way of communicating since all cellphone owners have a certain profile,” said Mr Ohri.

“No other medium would offer advertisers this kind of focused reach, especially in non-metro areas,” says a research undertaken by the students of Department of Business Economics and Business Economic Association, University of Delhi to test the concept of call-out advertisements on mobile phones and study the needs of the prospective advertisers.

As per the report, ad calls could feature fast moving consumer goods (FMCG) like cold drinks or premium goods targeted at the affluent. Besides, cell operators could lure new customers with free airtime.