Ringtones: Adding a Step? Where's Mike?

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There's been a lot of talk about ringtone revenues being down lately, but people are still killin it in the industry. 1.5 years ago maybe the top 10% of ringtone affiliates were making all the money; today the top 1% are taking it all in. Survival of the fittest.
 
The added ringtone step is supposed to be a reply yes from the handset instead of a PIN submit.

Any change will affect everyone the same. So if conversions go down 30% you can rest assured the cost to get traffic will go down the same.

Ringtones are just another hot offer of the time, it used to be credit cards, then nextcard went belly up, then it was debt consolidation and mortgages until the FTC stepped in and cleaned house, now its ringtones. As with any new industry its a bit of a wild west until legislation comes through to guide marketers on whats acceptable and what is not. once legislation sweeps through, the market looses its lucrative characteristics and those who are big in it, need to find something new or die off.

The lesson is to find markets that are stable and not as volatile as ringtones, I am a big supporter of online dating as its been a top 5 industry online for the last 5 years and shows no signs of slowing down. However if volatility and sweeping changes are something you can deal with then continue to promote ringtones.
 
Cingular has an ETA for end of 3rd quarter to have docs for their OPPC (Off Portal Purchasing Control) system. You can read about the changes with OPPC here. Now Cingular/AT&T will most likely not be forcing everyone into an immediate migration but rather over time. It could be into early next year until we see Cingular/AT&T move onto their OPPC system (this is completely an assumption). This is only Cingular making this change currently, not the rest of the carriers. Currently web based opt-ins are not dead and while Cingular is looking into moving to in-text only optins, as of right now that is currently not the case. Until the final docs are released nobody will really know the final answer, everything is complete assumption.

Additionally, we have done testing on in-text only optins and show that while conversions drop, its only by around 20%. Cingular/AT&T owns 27.1% of the market, so that 20% drop represents a universal conversion drop of 5.42%. As Mike said earlier in this thread people need to remember that profit margins will stay relatively the same as bids are based on ROI. If conversions drop, bids drop. Mortgage bids cost $3-5 each because they back at out that price. This market is no different.

The intelligent/ethical marketers who have been here from the beginning and are still around despite all the market changes will continue to stay. The people who use deceptive ad-copy, don't have any bid management technology and those who have all their eggs in one basket are the ones who will not only be hurt by this, but by every change this market has while its evolving into a much more established and consumer-friendly market.

So is this the end of affiliate marketing for mobile content (i.e, ringtones). Absolutely not.


 
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I think by not advertising "Bonus" or "Complimentary" when this takes affect will help your conversions. The customers will definitely know they are being charged now.
 
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