Exclusive outtakes from industry leaders
Virgin Mobile USA’s trillions and trillions
Virgin Mobile USA CEO Dan Schulman told the Reuters Global Technology, Media and Telecoms Summit today about a new advertising partnership with AOL’s Third Screen Media.
We asked him how big a deal it was. Schulman was enthusiastic, to say the least.
“We think it will drive a trillion dollars to us in the next four to six months.”
On the more serious side, Schulman explained that mobile advertising was still in its infancy as carriers have yet to really figure out the right way of offering people ads on their phones without becoming a nuisance.
“It’s small (in terms of revenue) and I wouldn’t even put it in the meaningful category yet. We’re experimenting with it. Mobile advertising is something you need to be quite careful with. A cell phone is a relatively intimate device.”
Virgin Mobile USA has had some success with its advertising forays. Schulman said more than 700,000 of its 5 million customers had signed up for its “Sugar Mama” promotion that let them earn free phone minutes in return for watching ads online.
Its subscribers can also put their friends to work for them with a “Sugar Mama” widget on social network Facebook. The more friends download the application and watch ads, the more free minutes their pal can accumulate.