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Vince Panero (VP): How did you get interested in web publishing originally? What were those early days like for you?

Jim Mansfield: Phonezoo’s goal from the beginning was to revolutionize the mobile content market by offering free ringtones and other content supported by ads. The biggest challenges we faced initially, aside from technology, were creating awareness of our service and getting users to try it out. Once people tried Phonezoo, they were more than willing to recommend us to friends. As a result, we grew fairly rapidly.

VP: Can you tell us about your website/s? How would you describe your focus/business model? And are there any particular issues exclusive to your site that you had to overcome to make the advertising model work?

Jim Mansfield: Phonezoo is a service that allows people to send ringtones, photos and games to their mobile phone for free. Phonezoo is an ad-supported service, so we never make people pay to send content to their phone. Users can create ringtones from mp3s on their computer and send ringtones others have created.

To make the ad-supported model work, we not only show ads on our website, but also serve ads in text messages sent to users as well as on WAP pages where people download ringtones.

VP: Being primarily mobile focused, did you employ any special strategies along the way to get off the ground, for example: partnerships, combinations of services that are usually separate?

Jim Mansfield: I think the biggest differentiator was offering people the ability to create ringtones and send them to their phones for free. Once people embraced that concept, it was easy to offer Photos, and then partner to offer free, ad-supported games. Naturally we work with many people in the Mobile ecosystem, as well as different advertising partners for each component of ringtone delivery – Web, WAP and Text message.

VP: What was the biggest challenge you faced creating or growing your company? For example, did you have to abandon an earlier idea because you couldn’t find a way to make it work? Explain.

Jim Mansfield: One of the biggest challenges we faced was figuring out the best way to get mobile content to each different Phone Company / Phone Model combination. Different phone companies have different methods of delivery, and different phones need different file types. A lot of testing and trial and error went in to making sure our users get the best experience possible.

VP: What was the inspiration for the name of your company and your website?

Jim Mansfield: Naming a company and finding a website is hard. First there are the things everyone looks for – something short, something easy to spell, and something memorable. Then there is the matter of finding a domain you can obtain.

During the brainstorming process, I was chatting with my 19-year old nanny about cell phones. She, like many 19-year olds, is addicted to her phone. I asked her how many contacts she had in her phone. She said, “I don’t know…more than a hundred.” I said that sounded like a lot and wondered how she kept track of everyone. She said, “It’s hard…it’s like a zoo in there.” And that conversation eventually led to the name Phonezoo.

VP: Did you get into this with the idea that you would make ad dollars from this site? How did you initially monetize your site? What problems did you encounter utilizing these early methods?

Jim Mansfield: We absolutely started Phonezoo with the intent of making money from advertising. At first we focused mainly on user growth, then slowly began to add individual networks to serve ads on our site. It was difficult to manage all the different networks and optimize the revenue on each page. It was hard to determine how many impressions from Network X to serve before switching to Network Y to boost yield. There was a lot of trial and error and a lot of analysis that went into this in the early days.

VP: Why did you start using Direct Media Exchange as your ad management platform of choice?

Jim Mansfield: Direct Media Exchange offered us a lot of advantages. We could manage all of our networks in one easy-to-use interface. Direct Media Exchange brought several new networks to our site which has resulted in significant incremental revenue for us. And it’s given us the ability to serve our own ads with advanced targeting, frequency capping, etc.

VP: What statistical changes have you seen since you started using it? For example, have your eCPM and revenue increased?

Jim Mansfield: Definitely. We’ve seen revenue per page, revenue per user and overall eCPM increase since we implemented Direct Media Exchange.

VP: What do you like most about Direct Media Exchange? Are there helpful parts of it that other ad management interfaces simply don’t offer? And how does it address the specific needs of your website’s unique niche?

Jim Mansfield: First of all, the UI is great – well designed and easy to use. I love being able to manage all my networks, adjust bids, frequency, etc. all on one page. And the tools to serve my own campaigns are great – the ability to set frequency caps, pacing, delivery, target by geography, etc. Direct Media Exchange offers features at no additional cost to me that other ad-serving platforms charge for.

VP: If there was a recipe for success that you’ve discovered–and you were able to go back in time and share that with yourself when you were younger–what would that ‘recipe’ be?

Jim Mansfield: I suppose it’s fairly simple – listen to your customers. If you take the time to listen to the people that use your product or service you can build, offer, position, and message your offering in a way that is meaningful and relevant. Too often companies make choices that are in the best interest of the company and not the user. While there is always a trade, user-focused companies seem to be more successful in the long run.

VP: Do you have any comments on ad placement technique: what works and what doesn’t? Is there a particular type of ad that you favor over others in regards to your site? What are your thoughts around this?

Jim Mansfield: I think we have clearly seen on our site that the 300×250 format clicks well. This is a great format to get peoples’ attention and tell a story without being overly intrusive. Unlike Skyscrapers (120×600) for example, all the content is on the screen at once, above the fold. Offers that are simple and easy to understand work best – our users quickly tire of trying to be ‘tricked’ into clicking or getting something.

VP: Do you have any other tips or tricks that you think others using the exchange might find useful? What advice would you give to a newbie user of Direct Media Exchange?

Jim Mansfield: I guess I’d advise people to update the eCPMs for the various networks regularly, especially at the beginning. We’ve found that other networks’ yield can change substantially in a short period of time, so it pays to stay on top of this.

VP: Do you have any final thoughts on this “exchange concept” (network transparency and competition, the utility of having just one login, etc.)?

Jim Mansfield: I think the idea of the exchange is the way of the future. It’s great for businesses of all sizes and I imagine more publishers will go to this model soon. I’ve recommended Direct Media Exchange to friends at other publishers.

VP: DMX–Is it just another web app, or has it really made your life easier or better in some way? Explain.

Jim Mansfield: Yeah – it’s a web app, but one that’s extremely easy to use, saves me several hours a week and generates substantial incremental revenue for Phonezoo. It makes business better and that makes life better.

VP: Thanks for being a member of Direct Media Exchange!