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Off-Portal, Off-Radar, On-Target
by Steve Smith, Thursday, May 24, 2007, 4:30 PM

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When Myxer.com's co-founder/CTO Myk Willis and his partner took a meeting with a record label recently, they listened to the big media honcho brag about how much mobile content the brand was delivering. The Myxer boys listened to what the big label thought were impressive monthly sales numbers, quietly looked at each other and thought -- "We sell that much in a day," says Willis. In fact, the success of Myxer.com, a roll-your-own ringtone and wallpaper provider for independent bands is a prime example of an entire mobile content industry that is evolving off deck and under the radar of carriers and the big media that the networks now court.

"When I look at my daily reports," says Willis, "we are at just below 80,000 ringtones a day, which would be one a second. It blows my mind." The site went from selling 1 million pieces of content monthly at the end of 2006 to tracking at about 2 million for May. About 1 million people have already used the service to buy content, and 500,000 uniques come to the Myxer site each month.

Even more remarkable is the nominal cost of marketing. Myxer.com is not present on any carrier decks. Myxer offers independent bands, and just about anyone else, the ability to upload their own songs to create a ringtone. The bands can upload a tune and use online tools to edit the tone. They can then post the tone on their own MySpace or home Web sites, a link that kicks the buyer over to the Myxer store for fulfillment via an SMS push to the phone. Myxer gets its traffic first and foremost from natural search results on users searching for their favorite indie bands, and then from MySpace. The online tools are simple enough for any user to roll and send himself his own tone, but Willis says about 80% of downloads involve indie bands. If their numbers are accurate, then this is an off-deck, off-label, product that demonstrates how much mobile activity is going on off-radar and outselling the big brands.

Many people I speak with in the more formal mobile content community believe that it is nigh impossible to build a new media brand on mobile. The discovery process is too challenging here; the deck is too limited an interface for a mobile Yahoo or eBay to emerge, goes the argument. Certainly the carriers reinforce this view by courting the major media, all in the belief that it takes a familiar brand to stand out on the platform. But at the same time, companies like Myxer as well as MobileSidewalk are working the search engines and Web-based viral/social networks to build mobile audiences that could care less what the carriers offer inside their walled (or severely gated) gardens.

Another interesting aspect to off-portal delivery is how many people are continuing to discover this channel. Willis says that a very large percentage of Myxer users continue to be first-timers who are just discovering mobile content generally and the mobile Web in particular. "We still don't find that many savvy users coming to the site," he says.

There is a serious dearth of education in the mobile space. I have been hearing this again and again from mobile content providers big and small, no-names and major brands. The content providers are educating users, not the carriers.

There is an opportunity here for brand marketers to go off portal as well. Volkswagon has already used Myxer to make ringtones attached to characters in a recent TV ad campaign (http://www.mvisible.com/myxertags_branding.html). The branded tones were distributed via a MySpace page for the campaign. Likewise, Harley-Davidson and Bazooka bubble gum have made Myxer tones, without having to go to a carrier or to a mobile marketing company.

Increasingly, companies are finding ways to circumvent the deck and collect audiences where they pursue their passions -- not when they happen to flip their phone.

2 comments on "Off-Portal, Off-Radar, On-Target"

  1. Frederic Guarino from HEMISPHERE NO BRAINER
    commented on: May 29, 2007 at 12:51 PM
    Michael is right in pointing out the dearth of promotion by the carriers of anything but voice. The US has got to be the last major market worldwide to have carriers tout "we're the best network" in their marketing campaigns. Yet, Q1 releases point to data driving 15% of revenue on average, we're now talking about a $1 billion/month business ! Myxer and its companion Mixxer (the former 3Gupload) are testaments to the great powers of word of mouth between teens. How the carriers will treat these start-ups (let them flourish and shut them down) will inform on how data can jump from 15% to 30% of revenue.

    fredericguarinodotcom.blogspot.com

  2. Michael Kremin from NeoGen Digital
    commented on: May 25, 2007 at 10:37 AM
    Carriers take note of the power of word of mouth and social networking. Here is a service that beats the carriers on any of their own mobile applications - with no traditional advertising or promotion (other than MySpace which has become mainstream). If this were AT&T or Verizon, they'd be spending millions on ads alone.

    The carriers should step up their education efforts. Ever tried to learn SMS and MMS on your service? Easiest way, ask a teen. Have you ever had a carrier sales rep ask if you wanted to learn how to access the Web via your phone? Their priority is signing up customers for voice and data plans, and letting nature takes its course. Talk about leaving money on the table. An educated customer always spends more and is more loyal.

    The carriers want it all, to produce and own content, and distribute it on their networks; even when they have not yet mastered the skills of delivering state of the art, reliable networks with complete geographic coverage. That should be their first goal.

    By controlling access and use of the networks so much, the carriers are losing out on customers spending more to access apps and content the carriers would never consider. Apps and content like Myxer will never come out of the bureaucratic group think of a carriers anyway.

    Here's to Myxer's and all the other mobile start-ups success!

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Do you have strong opinions and inside knowledge about the topic of this article -- and do you want to share your insights, observations and points of view regularly with the readers of MediaPost? To be considered as a MediaPost contributing writer, please send pertinent info about your credentials, plus several column ideas and one example of your writing on the topic, to pfine@mediapost.com. Please see our editorial guidelines here first.

STEVE SMITH
  • Contributing writer Steve Smith is a lapsed academic who saw the light, bolted the University and spent the last decade as a digital media critic and consultant. He is chair and programmer of OMMA Mobile and OMMA Behavioral conferences from Mediapost and is the Digital Media Editor at Media Industry Newsletter (MIN) from Access Intelligence. Contact him here.



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