Third Screen Media founder launches hybrid loyalty-advertising platform

Mickey Alam Khan  - October 19, 2010

Tom Burgess, founder of what was one of the earliest and biggest mobile ad networks, today launches Clovr Media, a new consumer loyalty and interactive advertising platform that marries cards, online and mobile.
Securing $1.5 million in seed funding from investors Kepha Partners and Common Angels, Mr. Burgess hopes to do with Clovr what he did with mobile ad network Third Screen Media – build it to a size where it is impossible to ignore. Having successfully sold Third Screen Media to AOL Time Warner in 2007 for low nine figures, the Waltham, MA-based CEO now sees opportunity for brands and retailers to turn interactive ad campaigns into card-linked offers.
"Similar to mobile advertising in 2005, the CLO marketplace is an emerging segment that will see significant growth over the next several years and is destined to become a common functionality for all online and mobile ad campaigns," Mr. Burgess said. 
 
In this exclusive Q&A, Mr. Burgess – who went on a oceanic sailing hiatus after Third Screen's sale – explains how Clovr is being positioned as the bridge to improved digital advertising, the growth potential of card-linked offers and why it just does not make sense when skeptics doubt the potential of mobile.
"Even today I hear a lot of chatter that mobile is in its early stages," Mr. Burgess said.
"Come on guys – high-speed connectivity is commonplace, smartphones have reached significant market penetration and the consumers' go-to access device is their mobile phone," he said. "We're way beyond the early days."
 
Please read on: 
Clovr Media – that's an unusual name for an unusual business, isn't it?
The name Clovr Media is derived from Card-Linked-Offers-Virtual-Redemption.
Card Linked Offers, or CLOs, have been used for many years in the banking industry.
The concept of linking loyalty rewards or special offers to consumers' credit/debit cards is nothing new. 
At Clovr Media we've created the next generation of CLO capability, ushering in a Loyalty 2.0 solution. Clovr Media is an innovator in the emerging CLO advertising market segment. 
You were one of the first to spot the mobile advertising opportunity many years ago and then took time off after selling mobile ad network ThirdScreen Media to AOL in 2007. Do you see the same opportunity now in card-linked offers?
CLOs play a critical role in Loyalty 2.0. 
Similar to mobile advertising in 2005, the CLO marketplace is an emerging segment that will see significant growth over the next several years and is destined to become a common functionality for all online and mobile ad campaigns. 
CLOs provide advertisers the ability to secure customers up-stream at the purchase consideration phase and realize 100 percent attribution on every campaign.
Financial institutions now have the ability to provide loyalty benefits to their consumers beyond their traditional online banking and paper statement touch points and consumers realize a frictionless path to saving money.  
What's the focus of Clovr Media?
Clovr Media is ushering in Loyalty 2.0 by bridging the gap between two massive industries, consumer banking and interactive advertising. 
Who are you targeting?
Our primary customers are brand advertisers. 
More specifically, we are targeting retailers and the manufacturer brands sold at retail. 
It is important to note that we offer the ability to create CLOs at both the merchant level and the SKU level. 
How does your offering work?
Our software platform provides a gateway between financial institutions and interactive advertising. 
Brands are now able to turn their mobile or online banner, text, search and video advertisements into CLO's, securing customer's up-stream at the purchase consideration phase and realizing 100 percent attribution on every campaign.
Consumers' existing credit/debit cards are enabled via our card issuing bank partners as part of their loyalty 2.0 offerings. 
Consumers see CLO enabled ads offering retail and product discounts during their regular use of the Internet, mobile and online.
When clicked, these Clovr-enabled ads link special offers directly to the consumers' existing credit/debit cards.
Consumers automatically receive the credit directly on their payment card statement with no interaction required at the point of sale.
The consumer is informed via text message or email, which is their choice, to their mobile device when they successfully link an offer to their card and post purchase when the credit has been applied to their account.
Obviously your go-to-market strategy is already in play. Could you spell it out?
We have spent the past several months simultaneously securing partnerships throughout the digital media and financial marketplaces and building our gateway software platform.
Progress on those efforts led to discussions with retailers and brands, and based on successful milestones we are excited to finally go public with our offering. 
As of today, interested parties can visit our Web site at http://www.clovrmedia.com. 
Over the next few months we will be preparing the first-ever round of CLO-enabled mobile and online interactive advertising banner ad campaigns. 
You've had the long view of mobile. Where is it today?
This is a great question.
Keep in mind that I have been in this market since 2001. Mobile operators laughed at me when I announced that mobile was the next frontier of digital media and interactive advertising. 
The concept that mobile operators would become successful media companies was scoffed at.
Even today I hear a lot of chatter that mobile is in its early stages.
Come on guys – high-speed connectivity is commonplace, smartphones have reached significant market penetration and the consumers' go-to access device is their mobile phone.
We're way beyond the early days. 
Just look at the outstanding consumer user experience of being able to browse the Web at high speed, access GPS-enabled turn-by-turn mapping with a couple clicks, snapping a picture or shooting a video and instantly posting it to your preferred social media. You can't do all this with second-screen devices.
These are the days of growth, innovation and achieving leadership solutions that are only possible on the mobile platform. 
I could go on with many specific examples of great innovations in mobile, but there is not enough time in this interview.
So what challenge are you helping address?
Clovr Media is addressing three primary challenges. 
First, we are helping financial institutions meet their demand for new, cost-effective loyalty solutions. 
Next, we are delivering on the desire for advertisers to achieve consistent and reliable campaign attribution. 
Finally, we are providing a new form of customer acquisition and loyalty for retailers.
Let's not forget that all of these goals are being achieved while providing you and me, consumers, with a simpler way to save money. 
 
http://www.mobilemarketer.com/cms/news/advertising/7800.html