Finland-based Nokia, the world’s biggest cellphone maker, is creating mobile devices wrapped in corporate logos.
The company is offering advertisers the right to brand mobile handsets for an undisclosed fee. According to an article by Advertising Age, advertisers can choose a Nokia phone that complements their demographic target, put the logo on the handset and accessories, embed mobile content into the phone and put it in packaging that also features their logo. The program should launch in the United States during the second half of this year.
Benefits to the company include Nokia’s ability to pre-load content on the advertisers behalf, while the benefit to consumers is being able to access that original content. David Kohl, Nokia Interactive head of sales-Americas, said this allows brands the opportunity to put content in the hands of the most potent advocates, those who like the brand and want to be seen with it.
The program has been running for about 18 months and seen some initial success in Brazil. When it arrives in the United States, the program will test how far consumers are willing to go to interact with brands.
The branded phones cost between $70 and $200 in Brazil and are sold through retailers that market them with in-store promotions and co-op advertising programs involving Nokia.
One of the program’s best-selling phones is under Unilever’s Seda personal care brand, which used a limited-edition pink Nokia phone to refresh its brand and launch a teen shampoo line. The device, which costs $100, came bundled with games, trial-size shampoos and exclusive music. The phone sold out within two months, and sold 200,000 units between April and December.
However, some critics of the program worry that Brazil’s mobile economics apply more to the program than that of the United States. For instance, customers in Brazil pay more for mobile Internet access and content, with songs costing about $3 a piece, but stateside content is inexpensive or free.
Also, Brazilians usually prepay for mobile phone time, meaning they can buy handsets without carrier oversight. However, in the United States, people usually buy phones through carriers who then subsidize the handsets in exchange for signing a service contract.
Companies such as Disney and ESPN have already failed at attempts to sell branded handsets. But Nokia said it’s currently in talks with T-Mobile and AT&T regarding distribution of the branded phones.
Most experts say the success of the program will depend on what consumers are able to gain from carrying a branded phone. Although the phones will cost the same or less than the unbranded version, most consumers will expect some form of compensation for being a sort of brand spokesperson.
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