Gizmondo--a company that expects to launch its namesake mobile entertainment device in the United States by next month--is poised to break a multimillion-dollar multi-channel ad campaign aimed at
young, rap-loving early adopters, said company CEO Michael Carrender. The Gizmondo handheld--which began trials in the United Kingdom in March--already is generating buzz stateside, based on its
ability to receive geographically and demographically targeted streaming video advertising.
The Gizmondo device--which looks like a lima bean-shaped version of Sony's PSP handheld--is a
video game, movie, and music player, a Web browser, text message and e-mail sender, a camera, and a GPS-loaded navigation and tracking device. The GPS functionality is what will allow companies to
geo-target ads.
Gizmondo, the company--a subsidiary of the publicly owned, Jacksonville, Fla.-based Tiger Telematics--will spend at least $30 million from now until its October launch date on
everything from television and online to guerrilla and word-of-mouth marketing, Carrender said. The company just opened offices in Santa Monica, Calif., from which it will handle most marketing and
sales internally, although Gizmondo might bring a media buying agency in-house at some point, said James Beaven, a company representative.
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"We're involved with lots of rap stars," said Carrender.
"We're doing a lot of endorsements," he said, adding that the Gizmondo will make an appearance in rap videos, where "early adopters will associate it with guys like Busta Rhymes." Mall kiosks are also
planned for about 50 metro markets, as well as stores planned for New York City and Los Angeles sometime next year.
The company intends to sell two types of Gizmondos: a $400 version, which will
not receive so-called "Smart-Adds," and a $229 ad-enabled version. The latter will receive at most three 20- to-30-second ads per day. Also, upon purchase of the ad-supported unit, buyers are expected
to complete an online questionnaire for improved ad targeting.
Adidas, Sprite, and Levi's are among the companies serving Smart-Adds over the devices currently being tested in the U.K. Carrender
said that these companies and others are waiting to see whether the model proves effective in Europe before they commit to advertising on Gizmondos in the United States.
"I'm confident we'll have
companies pounding down our door because of the tremendous feedback we're getting from our U.K. trials," Carrender predicted. He expressed similar optimism over U.S. consumers' readiness for a de
facto ad machine.
"Kids will walk into a store, see a model for half the price, and think 'What's the big deal with three ads a day from Busta Rhymes or some basketball player?'," said Carrender.
A barcode or coupon will sometimes appear after ads, along with mapping directions on how to get to a retailer's nearest location. Barcodes can be scanned directly from Gizmondo screens. "Just imagine
being the first to hear a new 50 Cent and Gwen Stefani music sample or get a free Slurpee from 7-11--all because you receive Smart-Adds."
For all its potential, Gizmondo is not without its
skeptics.
Mark Egan, an account director at Havas's MPG, said that while the idea of being able to consistently reach a coveted demographic with highly targeted and even actionable advertising is
attractive, he is not confident that Gizmondo is the company to make it happen.
"They'll be the first to pull off what advertisers are dreaming about--if they can actually pull it off," said
Egan. In the past, Gizmondo has missed several announced launch dates--the latest was Aug. 11, and July 13 before that.