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Mobile ad specialist pulling out of UK, India
Territories covered
Western Europe

Spain,
UK,
North America

USA,
Asia-Pacific

India,
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Published:
21-Aug-08
Rhtythm New Media is closing its UK and Indian branches to refocus on the US market. The mobile video advertising specialist had deals with 3, Orange and T-Mobile in the UK and Vodafone in Spain. The company had secured over Euro 14m in funding.
Our take... Rhythm New Media charged an estimated £80 (Euro 100) to £100 (Euro 125) CPM in the UK, which is significantly higher than the market average. Although the news can be seen as a blow for mobile video advertising, it is more of a signal that integrated players can offer better solutions than specialists who rely on singular formats. Screen Digest believes mobile advertising will consolidate into cross-media offerings and require operator collaboration, at least in the early stages. Operator-friendly Amobee (whose minority shareholders include Vodafone and Telefonica) inked video partnerships with PacketVideo, Quickplay Media and Thin Multimedia, while off-portal display specialist AdMob offers video ad solutions with MyWaves. Screen Digest expects the UK mobile VoD ad market to be worth £6.1m (Euro 7.7m) in 2012.
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