ROK Entertainment Group, a British mobile technology development company, is in negotiations to acquire Xero Mobile and its patents that enable tracking of ads that consumers view on their mobile phones.

Xero Mobile, marketing firm targeting the 18-24 demographic, aims to offer subsidized wireless services. In exchange, users must agree to accept a small number of video ads to their mobile device each day based on their personal tastes.

ROK's acquisition of Xero Mobile will position ROK to target the 17.3 million-strong college market with relevant, opt-in advertisements.

Users can be sent various promotions, coupons, vouchers, movie trailers, corporate/brand advertising, sporting events and music downloads.

The ads are created using information provided by the users, so they are always targeted.
In addition to below-market wireless service, users receive credits that can be redeemed for airtime or text messages based on the amount of ads viewed.

The acquisition offers key advantages to marketers. Not only does ROK target a highly mobile and technology-dependent demographic, but its solution will enable advertisers to pay only when their ad is viewed, ROK said.

ROK claims to be the first British company to stream multichannel television programs directly to mass-market 2.5G mobile phones. The company recently closed a $7 million funding round before going public earlier this year.