Nokia to merge Enpocket into mobile ad division

Nokia will drop the Enpocket brand and roll it into a new division dedicated to mobile advertising, following its purchase of the mobile advertising agency.

Nokia bought Enpocket last week in a deal understood to be worth $150m (£75m).

The Finnish mobile phone manufacturer plans to merge its ad service department and ad connector section with Enpocket to bulk up its dedication to mobile advertising.

Tom Henriksson, director of Nokia Ad Service, said: "It will be called Nokia Ad Business, but we'll look to move towards a more interesting name in the future. It will take up to a year to integrate the businesses, and the takeover should be completed in October.

"Nokia is regarded as the fifth strongest brand in the world, so it makes sense to change to that."

Henriksson said that Nokia plans to invest in new ad formats. Along with regular banner ads and search, Henriksson predicted the rise of screen advertising when the screen is idle and localised advertising leading to people using shops and services in the vicinity.

"We want to innovate and have the competence in-house to do so," he said. "For the first time, we're seeing brands include mobile in their budgets. Many have recently set their budgets for 2008 and mobile is very much part of their plans."

He added: "We want to build the kind of scale of services to make it easy for advertisers on mobile. We won't be doing this alone, and there is a need for standards to be introduced to mobile advertising."

Analysis, page 16.

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