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Table of Contents

Market Study
Published: December 2011
Pages: 160
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 833.00  Buy Now!
Research from: Berg Insight
Sector: Mobile Content & Apps

The mobile channel is joining mainstream media
There are close to 6 billion active mobile subscriptions across the
globe, which can be compared with about 2 billion Internet users.
This underpins the vast potential of the mobile channel for advertising
and marketing, being highly important for brands seeking
to engage in communication with present and potential customers.
Berg Insight estimates that the total value of the global mobile
marketing and advertising market was € 2.61 billion in 2010, having
experienced healthy growth throughout the financial crisis and the
following recuperation. Growing at a compound annual growth rate
of 36.9 percent, the market is forecasted to be worth € 17.2 billion in
2016 – corresponding to 15.2 percent of the total digital advertising
market. Mobile advertising is at the same time predicted to account
for 3.8 percent of the total global ad spend for all media.
The mobile media has several especially interesting attributes from a
marketing perspective. First of all most people have a mobile handset,
making reach unmatched. Mobile handsets and networks are
also getting increasingly advanced, making it possible to deliver
highly compelling advertising experiences, incorporating rich media,
video and interactive content. Even more importantly, handsets
are extremely personal devices which people tend to always have
within reach and most often switched on. This enables marketing
possibilities which other channels lack. Consumers can be reached
at all times and in all places, which makes the channel stand out of
the crowd. The personal nature of the devices makes it possible to
deliver messages which are highly relevant for the recipient, taking
into consideration demographics, interests, habits and other preferences.
Communication having undergone such screening is bound
to be much more effective in portraying a brand positively. The ROI
of such initiatives can be substantially better than for intrusive campaigns
where all consumers are flooded with the same non-personalised
message. The mobile channel can in this way avoid the pitfall
of unsolicited communication and capture an important role in the
future of marketing.
For several years, mobile media has been claimed to be on the verge
of entering the array of main media channels for marketing. During
the last years, companies have started to leave the experimental
stage and deliver full-scale campaigns, gradually including mobile in
the marketing media mix. Advertisers include blue chip companies
as well as SMEs. Exposure through multiple channels, digital as
well as traditional, has proven to generate better outcomes than
when channels are used in isolation. This is especially true for the mobile
media, being relatively new and therefore bound to benefit from
the viral effects created by campaigns spanning several media and
generating attention across the population of potential customers.
Numerous actors are engaging in activities related to mobile marketing,
including large players from the digital industry. Google and
Apple, with the AdMob and iAd advertising platforms, hold major
market shares in mobile advertising. Microsoft has struggled in the
mobile space and has joined forces with Nokia in an attempt to create
a third mobile ecosystem to compete with Google’s Android and
Apple’s iOS. A wide variety of other companies are also involved in
the value chain, including specialised mobile actors such as Millennial
Media, Amobee and Smaato. Facebook is furthermore on the
verge of establishing its presence in the mobile advertising space,
and may very well become an important player if leveraging user
data for targeted mobile campaigns.
There are a number of key takeaways from the latest developments
in mobile marketing. The channel is getting established as an integral
part of the media mix, a progress which is eased by the booming
smartphone adoption and increasing mobile media consumption.
Brands do however need to refine their marketing strategies to
integrate the mobile channel, in order to spend wisely and capitalise
on the potential the mobile channel brings. Operators need to pay
attention to the possible changes in the mobile ecosystem, where
advertising can be an important future source of revenue. Within the
plethora of advertising formats, applications are currently extremely
popular, though also the mobile web is seeing increased uptake
spurred by HTML5. While advanced formats offer impressive user
experiences, the potential in more simple alternatives such as SMS
and coupons is however still substantial, not the least due to an
unprecedented reach. Finally, the integration of location-sensitivity
in advertising efforts is increasing, an area which releases the full
potential of the mobile channel.
How should mobile handsets be integrated in the marketing
media mix?
What changes in the mobile industry and end-user behaviour are
required for mobile advertising to keep growing as a multi-billion
euro market?
How are Apple, Google, Microsoft and Yahoo! positioning
themselves to become leading mobile advertising players?
Who are the rising stars that stand out from the crowd among the
mobile advertising and marketing companies?
How well suited for advertising are different existing and future
mobile media channels?
What are the experiences from mobile marketing campaigns so far?
What implications does mobile advertising bring for operators?
Which advertising formats will become most successful in the
mobile environment?
In what ways can location technology improve the relevancy of
mobile advertising?

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