CBS Plans to Sell Ads on Mobile Devices

CBS plans to team up with mobile-advertising firms AdMob, Millennial Media, Rhythm NewMedia and Third Screen Media to sell ads on mobile devices for its programming. Marketers will be able to buy text and banner ads for mobile sites as well as video spots for devices.

Wall Street Journal has the full story here.

Third Screen Adds Hovr to Mobile Ad Network

Mobile ad network Third Screen Media will provide ads to game publisher Hovr's free titles, reports ClickZ.

While Hovr will be hosting the ads, Third Screen will be responsible for selling and managing them. Hovr previously sold its own ads, which were inserted dynamically either before the game started or after it ended. The deal does not extend into Hovr's social networking offerings.

Hovr is the third game publisher to join Third Screen's network. The ad management and delivery company was recently acquired by AOL, and operations are being integrated into Advertising.com as the deal works its way toward approval.

AOL Buys Third Screen Media, Adds Mobile

Mediapost reports today that AOL has agreed to acquire Third Screen Media for an undisclosed sum. The mobile ad firm will now operate as a wholly owned subsidiary of AOL's third-party ad network Advertising.com.

Reports that AOL was after Third Screen for as much as $80 million have circulated since February. (Initial news of the talks came several months after discussions between Third Screen and Microsoft failed, according to published reports.)

The acquisition comes during a period of rapid growth for mobile advertising. U.S. mobile advertising is expected to grow from $421 million in 2006 to $4.7 billion by 2011, according to eMarketer. Worldwide, the market is expected to expand to $11.3 billion by the same year.

Acquisition rumors aside, Third Screen has remained a hot industry name thanks to ad deals with several large companies. Last December, Universal McCann tapped the firm to manage mobile media efforts for clients including Microsoft, Johnson & Johnson and Intel.

Additionally, Third Screen earlier this year struck a deal with MSNBC to sell ads and manage inventory on its mobile site, joining a roster of publishers including Fox News, USA Today, the Weather Channel, CBS SportsLine, and ESPN.

Third Screen Media connects advertisers, publishers and mobile phone carriers on a common platform, allowing ads to be managed and delivered through wireless application protocol, or WAP, downloadable applications, text-messaging, or SMS, multimedia messaging service, or MMS and mobile video.

Advertising.com, has been a major driver of growth for AOL. Analysts recently credited the ad network with helping to drive AOL's first-quarter ad sales up 40% this year compared to the first quarter of last year. And in April, Advertising.com won the privilege to provide display and video ad management services for the yet-unnamed video venture between NBC Universal and News Corp.

Mobile Ads Promote Mobile Sites

To boost visits to their sites, some mobile providers are advertising on other mobile webpages, reports AdAge.

According to Third Screen Media CMO Jeff Janer, mobile site publishers see mobile users as their natural audience. Third Screen increased its reported number of monthly impressions from 50 million at the end of 2006 to 225 million at present. The number of mobile campaigns the company manages has tripled from a year ago.

While numbers speak volumes, an Ogilvy & Mather partner calls targeting the deal-breaker for mobile, which is seen as a high-engagement medium.

Cost-per-thousand rates hovering in the $28-$30 range, with premium sites commanding up to $50. Better targeting could raise the overall all deal rate to $1 million or more.

Venture capital interest in the mobile sector is still growing, but not at the same clip as in the recent past. Only five new deals were signed in 2007, a significant decline from the 21 deals signed in 2006.