This document discusses recent developments and opportunities in the mobile advertising industry. It notes that Google acquired AdMob for $750 million and Apple acquired Quattro Wireless for $265 million, showing strong interest in in-application mobile advertising. It also discusses the growing size and fragmented forecasts of the mobile advertising market. The document outlines different types of mobile ad networks and opportunities around contextual targeting, new ad formats, and location-based advertising. It proposes services around mobile advertising strategy, sales management, and technology optimization.
Overcoming challenges of implementing mobile audience measurement studies in ...Merlien Institute
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InMobi LTVP is an absolutely free developer enablement platform that works by identifying different in-app user groups and provides deep behavior insight to the premium publisher or app developer. The app publisher using the InMobi platform then has the ability to rapidly modify the app behavior for the different user segments without having to resubmit the app for approval.
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- Gain advanced user insights based on behavioral attributes such as monetary value of the purchase, time spent inside the app, number of app launches, or other custom events unique to the app.
- Define granular user segments based on behavioral attributes such as monetary value of the purchase, time spent inside the app, number of app launches, or other custom events unique to the app.
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Overcoming challenges of implementing mobile audience measurement studies in ...Merlien Institute
Presented by Beth Uyenco, Senior Vice President, International Research - ComScore
at Market Research in the Mobile World Asia-Pacific
30-31 January 2013, Kuala Lumpur, Malaysia
This event is proudly organised by Merlien Institute
Check out our upcoming events by visiting http://www.mrmw.net
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Join us to learn more about our exciting new platform, InMobi Lifetime Value Platform (LTVP), which allows premium publishers and app developers to better understand and engage their users, helping to maximize Lifetime Value (LTV), and ultimately increase revenues.
InMobi LTVP is an absolutely free developer enablement platform that works by identifying different in-app user groups and provides deep behavior insight to the premium publisher or app developer. The app publisher using the InMobi platform then has the ability to rapidly modify the app behavior for the different user segments without having to resubmit the app for approval.
InMobi LTVP will help you:
- Gain advanced user insights based on behavioral attributes such as monetary value of the purchase, time spent inside the app, number of app launches, or other custom events unique to the app.
- Define granular user segments based on behavioral attributes such as monetary value of the purchase, time spent inside the app, number of app launches, or other custom events unique to the app.
- Deliver rich in-app messages and modify app behavior at a segment level using targeted actions such as selling unique virtual goods, displaying highly customized ads, rewarding power users or cross promoting other apps.
Latest InMobi research finds smartphones impression growth outpacing advanced...InMobi
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2. BIG MOVEMENTS OVER THE LAST FEW MONTHS…
$750 Million – AdMob $265 Million – Quattro
-AdMob Estimated Revenues in 09 - $70M -Quattro Estimated Revenues in 09 - $30M
• Both Google and Apple showed strong interest in “in-Application” advertising where ads are
running within a connected application using the standard MMA size banner format. Google’s
Android team needed to find a way to attract developers to their ecosystem and Apple’s iSlate
tablet team are rumored to have really pressed for the Quattro acquisition also because of the
need to get developers on board
• Other OEMs like Nokia, BlackBerry, Sony Ericsson are contemplating a move in mobile
advertising as it has become a recognized and viable business model for distributing content
and applications over the mobile medium.
• Some operators jumped into the game early. Vodafone and Telefonica invested in Amobee and
are deploying its platform in 38 countries, Orange bought mobile ad-network and agency
Unanimis. The GSMA has made mobile advertising one of its key areas for development starting
with measurement but moving towards aggregation.
3. FROM REACH & FREQUENCY TO MAKING EACH “LOCAL”
IMPRESSION COUNT
The advertising ecosystem has been focused on getting big brands with big budgets to
spend on expensive media: for instance Television
The focus has been on getting the highest reach and frequency
New Media – Yahoo!, AOL, Google, Facebook and now Mobile is shifting the focus from
counting the people you can reach to reaching the people that count… These are
people who can act on an impression. Google has also broken the “time dimension” of
advertising by placing an ad at the moment in time a user expresses an interest in
something. They have also figured out a way to monetize a users “intention” as
opposed to monetize a users “attention”.
It is time that a new player figures out how to monetize and maximize the “space”
dimension of advertising
4. MARKET SIZING – AS MANY FORECASTS AS THERE ARE
METHODS OF MEASURING AND DEFINING MOBILE ADVERTISING
1. Berg Insight estimates that the total value of global mobile advertising market was $1.014 B in
2008.
2. Ovum USA: $1.3bn in 2010 Accounts for text delivery advertising only
3. Yankee Group USA: $2B in 2010 Mobile advertisement only
4. Jupiter Research USA: $2.1bn in 2011
5. eMarketer USA: $4.7bn by 2011 WW: $11.3bn by 2011Mobile advertisement only
6. Shosteck Group WW: grow to $9.6bn by 2010 Mobile advertisement only
7. Informa Telecoms and Media WW: $11.5bn by 2011 Mobile advertisement only
8. Strategy Analytics USA: 17% of total online ad spending by 2010
9. ABI Research WW: $19bn by 2011 Mobile marketing and advertising combined
Mobile Advertising is a very different market to market with countries like Indonesia and
South Africa showing strong growth in WAP banners and places like India and Eastern Europe
still focused on text messaging. The US and now UK are more and more focused on in-App
and rich media advertising due to the exploding Smartphone market.
5. GLOBAL MOBILE ADVERTISING SPENDING
The average size of campaigns is rising from $30,000-50,000 two years
ago to $100,000-$150,000 in mid-2009 with many exceeding $1 million
solely focused on mobile.
Source: Chetan Sharma Consulting
6. BLIND AD NETWORKS
Usually the largest in terms of publishers, advertisers and impressions.
Serve a high volume of advertising to an extensive base of mostly independent
mobile publishers (mobile sites and applications)
Usually, advertisers can not choose specific mobile sites
Performance advertising, CPC in particular, is the norm. The CPC varies with supply
and demand, determined through a self-service auction system.
The cheapest option is run of network (RON) adverts (i.e. no targeting), which in
some countries may start at US$0.01 CPC.
Some blind networks also offer brand advertising, on the CPM model - for marketers
that want exposure, maybe to create awareness of a new product.
Advertisers should expect a range of self-service tools that help them track and
optimize their campaign in real time.
Publishers receive a revenue share, perhaps 55-65 percent of what the advertiser
pays.
Key players in the market: Admoda, AdMob, BuzzCity, InMobi
Source: mobiThinking
7. PREMIUM BLIND AD NETWORKS
Higher proportion of premium publishers (i.e. mobile sites of well-known brands, like
newspapers, broadcasters or operator portals), than blind networks, some on
exclusive relationships.
Attract more brand advertising, paid for on CPM model
Costs vary considerably – campaigns targeted at top-tier inventory can be as high as
US$20 CPM.
A lot of advertising will still be blind or semi-blind (i.e. targeted at a channel), but for
a premium price you may be able to buy a specific spot on a site of your choice.
Performance advertising is also available – and sometimes search advertising (based
on key words) – paid for by CPC, for marketers who want an active response to ads.
The cheapest option is run of network (RON) adverts (i.e. no targeting), which in
some countries may start at US$0.05 - US$0.10 CPC.
Advertisers should expect a mix of self-service and direct sales and support and a
wealth of targeting options.
Publishers should expect to receive a majority share of advertising revenue –
percentages are often negotiated on a case-by-case basis.
Key players: Millennial Media, Jumptap, Madhouse, Quattro Wireless
Source: mobiThinking
8. PREMIUM AD NETWORKS
Premium networks focus on a limited number of prestige publishers – mobile
operators and big-brand, big-traffic sites, perhaps newspapers or broadcasters.
The vast majority of campaigns are brand advertising, so the predominant (maybe
only) pricing model is CPM model.
Under CPM, costs vary considerably, ranging from US$5-US$75.
Some may also offer performance advertising for marketers who want an active
response to their ads paid for by CPC; but expect to pay considerably more than on a
blind network as CPC can range from US$0.05-US$0.50.
Premium networks attract big brand advertisers who are prepared to pay premium
prices to secure the prime locations on top-tier mobile destinations
Advertisers should expect more direct sales and support, than self-service and a
wealth of targeting options.
Publishers should expect to receive a majority share of advertising revenue, perhaps
50–70 percent. Deals are usually negotiated on a case-by-case basis.
Key players: Microsoft, YOC, Advertising.com/AOL, Nokia Interactive Advertising,
Pudding Media
Source: mobiThinking
9. MOBILE AD-NETWORKS (ACTIVE IN THE UK)
AdMob Mobiento RingRing
Velti Startech Admoda
YOC Mobilera Adshandy
4th Screen Technomart Mojiva
Enpocket/Nokia Kickmobile Buzzcity
Microsoft/Screentonic Out there media Quattro
Dada MD Factory MoVoxx
MADS Mo2o Apperta
Adlink Media Mobext Smaato
10. SPECIALIST MOBILE ANALYTICS COMPANIES
Bango Mobilytics Amethon
New York and Cambridge, UK Part of Mobile Visions, Inc., Princeton, NJ Sydney, Melbourne and New York
Products Products Products:
Site analysis: unique visitors, visits, page views, avg Site analysis: unique visitors, visits, page views, avg Site analysis: unique visitors, visits, page views, avg
time on site etc. Filter by page, operator, country, time on site etc. time on site etc.
device Filter by page, operator, country, device Filter by page, operator, country, device
Campaign analysis: Goal comparison Campaign analysis: Goal comparison, revenue
Works with Google, Yahoo, Microsoft, AdMob, tracking Customers:
Decktrade APIs for data integration Go2Media, BlueCentral Hosting Solutions, Gambit
APIs for data integration Group, News Digital Media, Mobango
Flurry Pinch Media MediaLets Mobclix
San Francisco NY NY and SFO San Francisco, CA
• Seed round from Union Square • Raised $4m Series A in May ’09 • iPhone applications and services to iPhone
• Cutting edge analytics, and First Round Capital (Foundry, DFJ Gotham) developers
deployment and monetisation tools • iPhone focused • iPhone focused • Operates a real-time analytics and media
• Real-time usage data • Analytics and development tools • Analytics platforms focused on advertising platform. Provides mobile based
• Across all handset types focused on developers and apps developers, ad agencies advertising campaigns creation, management, and
• Free service to developers with publishers • Work to cleverly integrate deployment services.
VAS • Advertising solutions advertising into apps • Offers application sentiment and trends
• Seed round from DFJ, Borealis • Advertising effectiveness information
Ventures, Draper Richards
10
11. MOBILE BANNER ADS INSTANCES BY SECTOR
Mobile Banner Ads instances by Sector (Jan 08 UK)
Home Furnishings
Food Retail
Computer Hardware
Specialized Consumer Services
Movies & Entertainment
Internet Software & Services
Automobile Manufacturers
Publishing
Broadcasting & Cable TV
Internet Retail (Mobile Content)
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Percentage of ads served
12. UK: MOBILE MEDIA INDEX FOR CAR BRANDS
- MOBILE MEDIA SUITS THE HIGH END
Skoda 56
Suzuki 72
Nissan 77
Volvo 87
Volkswagen 88
Toyota 89
Honda 91
Renault 93
Hyundai 94
Ford 98
Peugeot 105
Vauxhall 107
BMW 110
Citroen 119
Mercedes Benz 126
Mitsubishi 136
Fiat 137
Land Rover/Range Rover 137
Audi 152
Jaguar/Daimler 167
0 20 40 60 80 100 120 140 160 180
Source: TGI M:Metrics 2008 – Base: All GB adults (aged 15+)
13. MOBILE MEDIA AUDIENCE RECEPTIVE TO ADVERTISING
% of media consumers who agree
35
“I’m tempted to buy products I’ve seen advertised”
30
25
TV
ia
es
s
a
io
et
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em
ed
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rn
do
in
ap
te
az
m
R
in
ut
sp
In
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ag
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ile
ew
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ob
N
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Source: TGI M:Metrics 2008 – Base: All GB adults (aged 15+)
14. WHY ARE OPERATORS GETTING IN THE ADVERTISING GAME
• Some have very large “media” audiences in their own right. Many of the largest operators in
Europe and in the UK are also media companies or are tightly coupled to media companies.
• Several have already been generating advertising revenues from their on-line ISP, portal and
IPTV businesses: Orange (Wanadoo), Vodafone Germany (ARCOR), Telefonica (Terra and
Imagenio)
• Since they own the customer they are the only ones who can provide truly “ad-funded”
business models. They can zero rate traffic associated to an ad being delivered on a phone.
• Operators have visibility across all mobile media consumption: video, games, music, messaging,
browsing, searching, etc. Ultimately, advertisers will be able to build a relationship with mobile
consumers and take them on “customer journeys”.
• Operators are the only ones who can “frequency cap” across multiple inventory types which is
of importance to brands and advertisers.
• Operators have more information about their subscribers (age, gender, location, type of billing
plan, etc), and can also use this to create relevancy.
• Operators (in the short term) have access to new inventory formats that Google, Microsoft and
Yahoo! won't. One example of this is peer to peer SMS ad insertion.
Here are some exampled of operator driven mobile advertising initiatives:
15. CURRENT OPERATOR CENTRIC APPROACH - A HOLISTIC
APPROACH TO MEDIA SALES
€50
Premium
€ 20
Medium
€ 10
Remnant
€1
Over 25 mobile ad-networks
18. IN SMS CLIENT
Application main menu Message Message Interstitial ad
composition sending
Back to inbox Interstitial ad More Info on the ad Options on the
ad
19. MOBILE VIDEO AD FORMATS
10 to 30 second Ad (Video or animated GIF) Video Content Requested 10 to 30 second Ad
during buffering… (Video or animated GIF)
at the end…
Buffering… …10 – 30 secs video …40 – 90 secs video… …10 – 30 secs video ad
ad…
21. TRADITIONAL HYPER-LOCAL/LOCAL ADVERTISING MEDIA SEGMENTS
More than 60 percent of small and medium businesses advertise locally in the Yellow Pages and
on their company websites, while 40 percent use direct mail. 1/4 of local ad spend is on
Yellow Pages or Local Listings:
• Yellowpages / local business directories
• Newspaper classified
• Magazine advertising
• Outdoor advertising
Name Location Description $ Revenue Q3'08 $ Revenue Q3'09
R. H. Donnelley US yellow pages 648 million 534 million
Marchex US local search advertising 37,152 22,172
company
Yell Group Plc UK Operates directory 1,023 million 982 million
businesses in UK, Spain, US
and LATAM
Idearc Inc. US 735 million 611 million
Seat Pagine Gialle Italy largest in Italy and second 397 million 345 million
larget directory publisher
in UK
Local Insight Regatta US Yellow pages and online 135 million 144 million
Holdings search
22. EXICON – MOBILE ADVERTISING STRATEGY & EXECUTION
Mobile advertising strategic evaluation
Value chain analysis
Market sizing, trends and new areas of focus
• Behavioral and contextual targeting
• New ad formats: Apps (connected vs. cashed)
• Post click analysis and ad effectiveness
• Proximity and hyper local advertising
Project management:
• Inventory management
• Ad sales channel management
• Sales forecasting, trafficking and reporting
Ad-Network selection and inventory yield optimization
Mobile advertising technology vendor selection / audit
Media sales partner selection
23. THANK YOU
Patrick Parodi
patrick@exicon.mobi
Follow me @paparodi