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This report will allow you to:
Identify tomorrow’s most profitable advertising opportunities in the mobile space.
Understand the fundamentals of the ad-based mobile media revenue models.
Recognise the key enablers of growth in the mobile advertising market.
Comprehend the relative importance of digital channels compared to other advertising media.
Learn about the experiences of mobile marketing campaigns by top global brands.
Profit from valuable insights about ad-funded business models for mobile operators.
This report answers the following questions:
How should mobile handsets be integrated in the marketing
What developments 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
In what ways can location technology improve the relevance of
Mobile ad spend set to increase severalfold until 2017
There are more than 6 billion active mobile subscriptions across the
globe, which can be compared with about 2.5 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 € 3.8 billion in 2011, having experienced healthy
growth throughout the recent financial crisis. Growing at a compound
annual growth rate of 31.4 percent, the market is forecasted to be worth
€ 19.7 billion in 2017–corresponding to 15.5 percent of the total digital
ad market. Mobile advertising is at the same time predicted to account
for 4.4 percent of the total global ad spend for all media. This resonates
well with the continuously increasing share of time people spend on the
mobile channel at the expense of traditional media consumption.
The mobile media has several especially useful characteristics from a
marketing perspective. First of all most people have a mobile handset,
making reach unmatched. Mobile handsets have become 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 unique 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, context,
behaviour and other preferences. Marketing messages that have gone
through such a personalisation process are 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 next-generation marketing.
For several years, mobile media was claimed to be on the verge of
entering the array of main media channels for marketing. During the
last few years, advertisers have increasingly left the experimental stage
and started to deliver full-scale campaigns, gradually establishing
the mobile channel in the marketing media mix. Advertisers
include blue chip companies and to an increasing extent also SMEs.
Exposure through multiple channels, digital as well as traditional,
has proven to yield better results and higher engagement than
when channels are used in isolation. This is especially true for
mobile media, being relatively new and therefore likely to benefit from
compounding effects created by campaigns spanning several media
to generate 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 platforms, hold considerable market shares
in mobile advertising. Microsoft has moreover struggled in the mobile
space and has joined forces with Nokia in an attempt to create a third
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 advertising actors such as Millennial
Media, InMobi, Madvertise, Amobee and Smaato. Facebook has
moreover made a first inroad into the mobile ad market and may
surface as an important player.
There are a number of key takeaways from the latest developments
in mobile marketing. Mobile marketing is gradually strengthening its
position in the marketing media mix as smartphones are becoming
ubiquitous and drive mobile media usage. Brands do however need
to refine their marketing strategies to integrate the mobile channel. For
operators, the ongoing transition to an increasingly data-driven mobile
ecosystem can present attractive opportunities to generate revenues
from advertising. Within the plethora of ad formats, apps have proven
to provide great consumer engagement, but mobile web presence has
also surfaced as a must-have among brands. HTML5 is moreover
increasingly enabling native app-like experiences also through
browsers. Video and rich media are the current state-of-the-art ad
formats, but the potential of less sophisticated alternatives such as
permission-based SMS programs is still substantial, not the least due to
an unprecedented reach. The integration of location-sensitivity across
all formats is moreover increasing, though hyperlocal advertising is yet
to be used on a large scale. Finally, real-time bidding (RTB) is expected
to increase rapidly in adoption also on the mobile channel.