07-12-2007 03:31 PM CET - Advertising, Media Consulting, Marketing Research

Successful Results for Cellcom and innerActive Ad-Funded Mobile Games Service: 44% Clickthrough Rate and 19% Acquisition Rate for Mobile Advertising Campaigns

Press release from: innerActive

Tel Aviv, Israel, July 12, 2007 -- Israel's largest mobile operator Cellcom has announced today the completion of its first ad-funded mobile games service powered by innerActive technology. The new innovative service showed results of 44% Click-Through-Rate (CTR) and 19% Acquisition Rate for Mobile Advertising Campaigns, indicating a breakthrough in marketing via mobile phones.

The value-added infotainment service offers the subscribers free game downloads, sponsored by top brands such as: Tnuva, Nokia, McDonalds, Diadora, Samsung, Adidas and Walt Disney. Leading interactive advertising agencies such as McCann Digital, Saatchi & Saatchi, BBDO and nextin participated in the month-long pilot.

innerActive's Campaign Management system provided an end-to-end solution for both Cellcom and the advertisers. The solution, which can easily integrate to Cellcom’s system, dynamically inserted ads and marketing content for product placement within the games. With the system, mobile in-game ads were targeted and segmented in real-time according to each user’s profile, behavior and responses. In addition, mobile coupons and other incentives were offered for conversion and cross-over to other media channels like websites and point of sells.

“The new model used in the trial has proved to be effective and feasible to all the players. We succeeded to promote thousands of new users, that are not heavy gamers, to consumed and enjoyed games,” said Adi Cohen, VP Marketing of Cellcom. "The advertising-marketing stimulus trial confirms its effectiveness to all parties that took part in this project. This mobile advertising is working and shows far-reaching consequences for the mobile industry.”

The strong capabilities of innerActive innovative technology produce exceptional results. On average a trend of 10 times higher game downloads per user was observer, compared to pre-pilot download numbers. The Tetris game set a new record for as the number of download jumped by 14 times. The new business model, that this represents, motivated an untapped segment of mobile users to download mobile games as 24% of the participants did not download games in the six month period before the test and 54% did not do it in the three months prior to the pilot.

“The ad-funded model used in the trial has created a new dialog with the consumers while at the same time setting a new level of response and conversion to targeted and relevant marketing content," said Offer Yehudai, innerActive Co-manager. “The usage of in-content deliver within the games has become a great online media experience within various audiences, especial in the youth segment (9-20 year old) – 65% enjoying the benefits.

“These trends reveal the huge potential and highlight innerActive’s solution of in-content ad-funded mobile advertising and business model,” said Ziv Elul, innerActive Co-manager. “Driving from this successful pilot, innerActive is about to launch its new solution for live streaming advertising on both video and music channels.”

About innerActive
innerActive Smart Media is a high-tech startup company that provides innovative ad-funded mobile advertising solution for mobile operators, portals, advertisers and digital content providers. innerActive's platform enables scalable and dynamic product placement solutions for rich media mobile content as well as digital coupons management, according to the users' profile and interaction with the content. For more information please visit at, www.inner-active.com

About Cellcom
Cellcom (NYSE: CEL) is the leading Israeli cellular company. Cellcom entered the market in 1994 and today provides services to more than 2.8 million subscribers representing approximately 34% market share. Cellcom operates UMTS/HSDPA, GSM/GPRS/EDGE and TDMA networks. Cellcom also offers landline transmission and data services to business customers and telecommunications operators and, since July 2006, offers landline telephony services to selected businesses.

Company Contact:
Offer Yehudai

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