Mobile advertising and location based mobile services ruby chao zhang


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By examining the major advertising networks and the differences in their various market segments, as well as the impact of location-based technologies on new advertising efforts and the innovative services that have arisen to take advantage of location-based technologies, I wanted this presentation to highlight what advertisers and mobile users can expect to see in the next five years in a constantly changing industry. One important aspect of the future of the mobile industry's development that is not stressed in these slides is mobile apps. Apps are the way to extend the usability of mobile internet service, and is a major player in the growth of the mobile internet. Also, I believe it will be the leader in efforts to monetize the mobile internet effort in the future, but due to the scope of my research this time, I did not cover it. I would definitely like to look into this sector in the future.

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Mobile advertising and location based mobile services ruby chao zhang

  1. 1. Mathew Honan: 37.769958 °N, 122.467233 °W. Photo: Jason Madara Mobile: The Future of Internet… and Our Lives Ruby Chao Zhang 4/28/2010 Mobile Advertising & Location-based Mobile Services
  2. 2. Overview  Mobile advertising  Location-based mobile services
  3. 3. Mobile Advertising  The mobile phone platform  Personal  Interactive  Constantly in-use
  4. 4. Mobile Advertising  Fractured market, no ad network is dominant  Major players serve different market segments, and different regions Mobile Ad Networks Market Share in 2009 Google + Admob 24% AOL The others 2% 26% Quattro Wireless JumpTap Millenial (acquired by 4% Media Apple in Jan, 18% 2010) 7% Microsoft Yahoo 8% 11% (Data by market research firm IDC, 2009)
  5. 5. Mobile Advertising  According to a study by Gfk NOP research in 2007, more than 3 in 10 mobile users in the U.S. have seen or heard advertising on their mobile phones  But I bet…
  6. 6. Mobile Advertising  Four main types of mobile advertising SMS/MMS Mobile Ads Search Ads App/Game/Video Display Ads Web Display Ads
  7. 7. Mobile Advertising  Revenue shifts from SMS ads to search ads
  8. 8. Mobile Advertising  Overall rapid growing prospect in the next 3 years (Data by Kelsey Group, Chart made by TechCrunch, Sep 2009)
  9. 9. Mobile Advertising  Three types of mobile advertising networks: depend on how they reach their audience  BlindAdvertising Networks  Premium Blind Advertising Networks  Premium Advertising Networks
  10. 10. Mobile Advertising  Blind advertising networks  High volume advertising to an extensive base of mostly independent mobile publishers  Usually do not allow advertisers to choose specific websites, but could choose by country and content channels (news, sports etc)  CPC is the norm, CPM is used to create brand awareness  Wealth of self-service tools exists, mobile ad publishers can expect to earn about 55-65% of the advertiser’s rate
  11. 11. Mobile Advertising  Premium blind advertising networks  Advertising can be specifically placed on well-known sites, some networks have exclusive relationships with websites  CPM model rules, some higher-end, in- demand advertising inventory can cost $20 CPM  Mix of self-service and direct sales and support and lots of targeting options
  12. 12. Mobile Advertising  Premium advertising networks  Narrow in focus, ad sales are focused on extremely high-traffic publishers  In-house ad sales, operate advertising for their own sites and networks  Generally CPM-based, with rates ranging from $5 to $75 CPM .  Publishers on these ad networks can reap up 50 to 70% of advertising revenue.
  13. 13. Mobile Advertising  iAds: Moving the needle in the mobile ad space?  Built for HTML5  iAds will come pre-installed in the new iPhone OS 4.0 coming out this summer  In-app ads that can include video, games, store finders and customizers, more fun and interactive "We think most of this [existing] mobile advertising really sucks!"  Android OS catching up and exceeding iPhone web traffic in March, 2010 (Admob’s monthly mobile metrics report )
  14. 14. Location-Based Mobile Service  Location : most important contextual clue provided by mobile device  Location:“where” information filter  The compelling combination of information and financial incentive
  15. 15. Location-Based Mobile Service  Industry growing fast with the development of GPS and other positioning technologies on mobile device  Juniper Research estimates that location-based services, as an industry, will earn up to $12.7 billion by 2014
  16. 16. Location-Based Mobile Service  North Face’s Location-Based Mobile Campaign  2010 spring, New York, Boston, San Francisco, and Seattle  Using SMS/Geo-fencing technology to target opt-in customers
  17. 17. Location-Based Mobile Service  Zip Car On The Go  Put consumers more directly in touch with businesses and services  May disrupt already-existing business services
  18. 18. Location-Based Mobile Service  Geodelic  Combining a person's location, inferred intent and personal affinities to deliver relevant information about the real world surrounding them at any given moment
  19. 19. Location-Based Mobile Service  Foursquare  Adding a social layer & gaming elements to the location, turning the city to a playground
  20. 20. What Is Your Next Big Idea?
  21. 21. References Butcher, D. (February 24, 2010). North Face debuts first LBS campaign for outdoor apparel. Retrieved from Byrne, C. (January 10, 2010) Will 2010 be mobile advertising’s big year? Retrieved from Gibbs, C. (January 5, 2010) 2010: The Year of M&A in Mobile Advertising. Retrieved from IAB. (October 2009) October 2009: Change Is in the Air for Mobile Advertising. Retrieved from Justin. (April 26, 2010). Survey: Consumers Prefer Location-Based Ads Over SMS And Mobile Web Ads. Retrieved from mobile-web-ads-6198/ Klaasen, A. (September 14, 2009). Places, Please: How Location Changes Digital Marketing. Retrieved from Meeker, M. & Devitt, S. & Wu, L. (April 12, 2010) Internet Trends [PDF document]. Retrieved from Morgan Stanley Institutional Research site: mobiThinking. (2009) The mobiThinking guide to mobile advertising networks 2010: Blind Networks. Retrieved from Mooney, A. (April 16, 2010) Why Apple's iAd platform will make mobile ads sexy. Retrieved from Palmieri, P. (April 13, 2010) Four things about Apple iAd that tickled Millennial Media’s Paul Palmieri. Retrieved from
  22. 22. References Patel, K. (April 8, 2010) Apple's iAd Not Game-Changing, but Will Move Market. Retrieved from Patel, K. (March 22, 2010). Forget Foursquare: Why Location Marketing Is New Point-of- Purchase. Retrieved from Reedy, S. (February 11, 2010) Mobile operators seek role in great location shake-out. Retrieved from Schonfeld, E. (October 6, 2009) Mobile Advertising Is Shaping Up to Be All Search. Retrieved from The Economist. (March 4, 2010). Follow me: Adverts that know where you are could be lucrative—not to mention controversial. Retrieved from Walsh, M. (November 23, 2009) Report: Google + AdMob = 24% Mobile Ad Network Share. Retrieved from Warren, C. (April 27, 2010). Motorola Droid is Android’s Dominant Device. Retrieved from Wauters, R. (February 23, 2010). Mobile Location-Based Services Could Rake In $12.7 Billion By 2014. Retrieved from Photo credits: Jason Madara; most other photos are from internet, authors can contact me for credit.