mobile intro

8/3/2019 Mobile Intro

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Introduction to theMobile Advertising Industry

Jim CookEditor


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Topics for today

How big is this market?

What are the ad formats?

Who is the audience, and What are they watching?

Who is in the Value Chain?

What can we expect in the coming year?


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In the UK, mobile advertising spend is projected to be187m by 2011.

Source: Strategy Analytics


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Look at it from the perspective of brand budgets:

What percentage of your marketing communications budget doyou plan to spend on mobile marketing in 1, 2 and 5 years time?

Percent of brands spending 6% to 15% of their budgetA survey of 50 global brands by AirWide Solutions

14%

32%

58%

0%

10%

20%

30%

40%

50%

60%

70%

2007 2009 2012

Source: AirWide Solutions


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Mobile Advertising Encompasses a

Wide Variety of FormatsIt is more than internet advertising on a small screen!

Display Ads

Search

In-game Ads

Text to win SMS

Coupons

Proximity Marketing Idle screen

Call screen ads

Company WAP sites

Messaging Ads


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons


Call screen ads

Company WAP sites

Messaging Ads


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons


Call screen ads

Company WAP sites

Messaging Ads


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons


Call screen ads

Company WAP sites

Messaging Ads


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons


Call screen ads

Company WAP sites

Messaging Ads


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons


Call screen ads

Company WAP sites

Messaging Ads


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons


Call screen ads

Company WAP sites

Messaging Ads


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons


Dial screen ads

Company WAP sites

Messaging Ads

Recently launchedDisney site in USEventual furtherIntegration withDisney.com andDisney virtualworlds


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons


Dial screen ads

Company WAP sites

Messaging Ads


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Display Ads

Search

In-game Ads

Text to win SMS

Coupons

Proximity Marketing

Idle screen

Dial screen ads

Company WAP sites

Messaging Ads

SMS Ad Tags


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Who is the mobile audience,

andWhat are they watching?

Mobile has its own characteristics, it is different fromother advertising media.

Wide perception that mobile is only for 1 to 24 year

olds


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Downloaders and Browsers in UK

Indicative of mobile internet usage

Mobile is not only about the youth market - very healthy segmentsabove 25 year old

Under 24 years old account for 30% of mobile content consumers,

while only 20% of mobile subscribers.

3 month average ending Aug 2007

Data source:


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Mobile marketing is reaching the masses

0%

10%

20%

30%

40%

50%

60%

70%

80%

FR DE IT ES UK US

% of all MobileSubs receiving anSMS advert

% of Recipients ofSMS adverts

responding

Respondents expressed as a % of those who have received an SMS ad3 month average ending Aug 2007

Data source:


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What are they watching?

Top 10 for unique subscribers, UK Top 10 for page views, UK

Company Company

1 Google Inc. 1 Hutchison Whampoa Limited

2 British Broadcasting Corporation (BBC) 2 Google Inc.

3 Orange Personal Communications Svc Ltd 3 British Broadcasting Corporat

4 Microsoft Corporation 4 Yahoo! Inc.

5 Vodafone Group PLC 5 Microsoft Corporation

6 eBay Inc. 6 Vodafone Group PLC

7 Telefnica O2 Europe plc 7 Orange Personal Communicat8 Hutchison Whampoa Limited 8 eBay Inc.

9 Yahoo! Inc. 9 Deutsche Telekom AG

10 Deutsche Telekom AG 10 TheFacebook, Inc

Data from M:Metrics on-device meter,tracking an opt-in panel of Smartphone owners,

June07

Top 10 Smartphone Web Sites

Data source:


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Mobile Advertising Value Chain

Advertisers

Agencies

Ad Network

AdServing

MobilePublisher

MobileOperator

Interested in Mobile Not yet putting major budgetsbehind mobile Dont really understandmobile in depth

Not getting enough info fromtheir agencies


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Advertisers

Agencies

Ad Network

AdServing

MobilePublisher

MobileOperator

Interested in Mobile Starting to dedicate full timepeople, but not always enoughbusiness to justify it Most do not have in depth

understanding of mobile Need more data to effectivelyplan for mobile in overall context


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Advertisers

Agencies

Ad Network

AdServing

MobilePublisher

MobileOperator

Rapidly growing Usually part of some otherorganization Industry consolidation takingplace

Local and International


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Advertisers

Agencies

Ad Network

AdServing

MobilePublisher

MobileOperator

Many players Internet incumbents are enteringConsolidation is happening Examples of Ad Servers include:Nokia Ad Business, ScreenTonic

(Msft), Amobee, Third Screen,AdMob, Rhythm NewMedia


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Advertisers

Agencies

Ad Network

AdServing

MobilePublisher

MobileOperator

Many are actively building high-value inventory Ad-funded content & services aregrowing rapidly Starting to see some sold out

periods No common measurement orplanning info from publishers


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Advertisers

Agencies

Ad Network

AdServing

MobilePublisher

MobileOperator

Some are actively engaged,some are fast followers Need to develop cross operatorinventory They have the data, but not clear

if they can make it into useableinformation any time soon


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Advertisers

Agencies

Ad Network

AdServing

MobilePublisher

MobileOperator

What doconsumers

think?


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What do consumers think?

Studies show most consumers are OK withads

IF the ads are relevant

IF they get something of value in return IF they can control the ads

Studies are now coming out that

demonstrate the effectiveness of mobileadvertising, both for transactions andbranding.

3UK video service

Male Grooming Brand, Aerodeon

Weather Channel Interactive

More on the MobiAD site


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Key trends for the next year

Consolidation

Cooperation

BrandParticipation

Targeting


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Consolidation

Cooperation

BrandParticipation

Targeting

Industry consolidation has started

Nokia buys Enpocket

Microsoft buys ScreenTonic

Publicis buys Phonevalley

Yahoo buys Actionality

AOL buys Third Screen Media

plus many others And it will continue over the coming

year


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Consolidation

Cooperation

BrandParticipation

Targeting

Ad targeting and profiling shouldbecome more of a reality

Search companies will make progress

Social Networks will make progress

Operators will keep trying,but its difficult for them.


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Consolidation

Cooperation

BrandParticipation

Targeting

We will see increased level ofcooperation among the variousmobile advertising players, for

example Standards for ad formats

Reporting of audience metrics

Operators working for cross operatorinventory

Industry groups setup and workingtogether (IAB, MMA, MEF, GSMA)

These are critical for developing thereach of mobile advertising andmaking it easier to implement.


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Consolidation

Cooperation

BrandParticipation

Targeting


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Thank you very muchEnjoy the day

Most of the information for this presentation

is on www.mobiadnews.com

Subscription is free.

[email protected]

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