Christian Louca
With thanks to: Mobyaffiliates
Archive for the ‘Digital Display Advertising’ Category
Tamome CEO shares his vision of mobile & technology with launch of his new business
Posted: November 16, 2012 in Ad Industry, Advertising, Affiliate Marketing, Affiliate Networks, Affiliates, Digital Display Advertising, Digital Marketing, Display advertising, Industry News, Information communications technology, M-Commerce, Marketing, Mobile Ad Networks, Mobile Advertising, Mobile Affiliate Networks, Mobile Affiliation, Mobile Developers, Mobile Industry News, Mobile Search, Mobile SEM, Mobile Technology, Performance Advertising, SEM, SEO, Tablets, Tamome, Technology, Technology Evolution, Technology Theory, Wireless TechnologiesTags: advertising marketplace, Internet, market segment, Mobile Advertising, Technology, utility suppliers
Tamome – Mobile Affiliate Advertising Marketplace launched by Founder & CEO Christian Louca
Calling Partnerships
As Founder & CEO of Tamome I announce we are open for partnerships within the mobile affiliate advertising market sector. The Tamome team have been quietly building our technology since February of this year and we are now live with major clients. We are looking to extend partnerships with advertisers, affiliates, publishers and app developers. The time has come for the birth of mobile affiliation, a massively overlooked market segment that warrants some attention.
We have strong ambitions to drive this froward; with all our knowledge, insight, motivations, passion and general love of the industry we hope to disrupt the market through creating exciting opportunity for all our partners and partners customers alike. We invite you to participate in the next generation of mobile advertising.
A little bit of vision
With smartphone and tablet penetration accelerating across the globe and with more and more people using this as their means to stay connected with the world; always on, always connected and always with us. This has become the preferred method of; communicating with friends, family, colleagues, TV Shows, entertainment, finding out what is happening in the world, sharing content on a global scale in seconds, navigating our way around the worlds cities and towns, letting our utility suppliers know how much we owe them, staying in touch with what is important to us, researching, understanding perceived value of anything through to buying digital goods, products or services and making payments. It is no wonder that in such a short period of time where this is happening right in front of our eyes, we still cannot even begin to imagine where it will take us in the future.
Technology is so powerful; it has allowed the human race to advance in ways that were just simply not even conceivable before its time. ‘Before its time’…I am not sure what I mean by that. Since technology has been around longer than the human race. It seems strange even writing that; but I believe the reality of technology starts with life itself and the evolution of the world that we know and live in today. Mobile technology is just one element of a whole world of biological and non-biological technology evolutions. Non-biological evolutions need a creator, a creator can exist because of biological evolutions. Make sense? I think ‘technology’ is an almost impossible thing to define but I think we have to split this in these two pieces.
Biological Evolution of living technology
‘Technology that were Creators’
Biological evolution of the Human Race
Non-Biological Evolution of non-living technology
with the biological evolution of technology that were creators
‘technology that was created’
Technology that was made by technology that were creators
So it should be clear now that mobile sits within the Technology that was made by Technology that were creators space. Why is this important? We need to understand the context of the bigger picture rather than just looking at mobile.
Technology evolution depends on its creators. That is you and I. Creators evolve according to their natural evolution (remember we are biological technology). Now the lines start to blur because you could ask ‘are we evolving according to the technology that we are creating?’ Anyway, another time for that one.
We have since life began carved, manufactured, developed, created concepts of technology to ultimately make our existence on earth enriched, easier and healthier. The internet has enabled us to put all our thoughts, ideas and concepts all into one place, like a giant brain. Thanks to mobile technology this brain is now accessible to us all across the connected world like being on a drip. We can open it and close it as and when we feel. Its always there, its always on but we are in control as to when we use it to make our days enriched, easier or healthier. This is the power of mobile and why like no other industry it is growing at a rate that we have never seen before anywhere else in our time. I am proud to be part of such an amazing evolution of technology and communication that is simply extraordinary.
Christian Louca
Mobile advertising hits £500m in 2012
Posted: October 9, 2012 in Ad Industry, Advertising, Digital Display Advertising, Digital Trends, Display advertising, Industry News, Mobile Advertising, Mobile Industry News, Mobile SearchTags: Advertising, Business, Facebook, Google, IAB, Internet Advertising Bureau, Mobile, Mobile Advertising, Mobile phone, Mobile Search, PwC, uk internet advertising
Posted By } Mark Sweney guardian.co.uk,
The explosion in the popularity of smartphones and tablets has led to mobile advertising revenues nearing £500m in 2012. Photograph: Lee Jae-Won/Reuters
The explosion in popularity of smartphones, tablets and the app revolution has fuelled a more than doubling in mobile advertising to £500m this year – just four years after the sector struggled to attract £25m.
UK mobile advertising grew a staggering 132% in the first six months of this year to £181.5m, according to the latest Internet Advertising Bureau (IAB) report conducted by PricewaterhouseCoopers.
Breakneck growth is continuing in the second half – fuelled by the popularity of Apple and Google’s app stores as smartphone ownership nears 60% of the UK’s adult population – with forecasts putting UK mobile spend at as much as £511m for the full year.
In 2011, the IAB put mobile ad spend at £203m.
Mobile display and video advertising almost doubled in the first six months this year to £50m, with mobile search soaring by more than 150% to £132m.
Mobile search accounts for almost three-quarters of all UK mobile ad spend.
Total UK internet advertising spend rose 12.6% year on year in the first six months to £2.59bn, comfortably on track to pass £5bn for the year. The total digital display advertising market, including mobile, rose 10.6% in the first half to £591m.
One of the biggest beneficiaries of the rise of digital display advertising, albeit not on mobile, has been Facebook. Enders Analysis puts Facebook UK’s full-year ad revenues at £236m, a healthy 35% year-on-year rise.
However, these figures actually represent a cut of 18% on more bullish estimates made earlier in the year.
Enders analyst Ian Maude said the downgrade is the result of factors including a steeper-than-expected slowdown in the rate of Facebook’s ad revenue growth, marketers reassessing the value of ploughing money into gathering friends and likes to brand pages, and the social networking site’s well-documented struggle to make money out of mobile.
Jamie Matthews, chief executive of Initials Marketing, believes the scope for growth for mobile marketing remains massive.
“The £500m mark is just the start,” he says. “Facebook is racing to develop a mobile ad strategy to tap into its 550 million monthly mobile users, and more than half of big companies do not yet have a coherent mobile marketing strategy. I would expect mobile advertising to continue to grow at a staggering rate for some years yet.”
The biggest segment of the internet advertising market continues to be paid-for searches, which are dominated by Google.
Spend on search advertising rose 16% in the first half to crack £1.5bn, a 60% share of the overall market.
The rise of mobile ad spend in the UK
2008: £25.45m
2009: £37.6m, up 32% year on year
2010: £83m, up 116% year on year
2011: £203m, up 157% year on year
2012: £181.5m in the first half, up 132% year on year.
Via: http://www.guardian.co.uk/media/2012/oct/09/mobile-advertising-500-million-pounds-2012?newsfeed=true
Understanding Mobile Advertising
Posted: April 19, 2012 in Ad Industry, Advertising, Digital Display Advertising, Mobile Advertising, Online AdvertisingTags: AdWhirl, Apple, Clickthrough rate, Cost per mille, CTR, eCPM, iOS, iTunes, Pay per click
My Comments:
A nice article summing up the basics of mobile advertising. I would point out that another Key Metric is Conversion i.e what happens after the click: download a piece of content, register to a service, make a transaction etc etc.
Posted By } David Hillis (@davidhillis)
So you have built your mobile website or app and now you want to monetize it. You have a few options: you can sell apps on iTunes or other stores, charge a subscription or paywall, or make your content free and subsidize it with advertising.
The best approach will be determined by your audience, the value of your content or service and your distribution model.
If you are looking to grow your user base substantially, advertising is one of the only effective approaches. By some estimates an app distributed for free will have 10 times more downloads compared with a paid application.
With the growth in smartphones, mobile sites and apps, mobile has become the fastest growing category in advertising. According to eMarketer, mobile advertising spending in the US will grow 80 percent to over US$ 2.6 billion in 2012. And many experts expect mobile advertising to exceed desktop web advertising in the next few years. Whether you are a developer, a publisher or marketer, mobile advertising is a hot topic.
Yet, despite the increased spending in mobile advertising, publishers and advertisers alike are challenged with understanding the key metrics in mobile advertising, as well as finding a reliable way to forecast mobile advertising revenues and ROI.
The opportunity for mobile advertising far exceeds display ads. From location-based services, to bluecasting, to video, to interstitial web pages, there are many ways to create sponsorship. But for most sites and apps, mobile advertising is still focused on display ads. When using display or banner advertising, there are a few key metrics that provide the foundation for nearly any mobile advertising campaign.
Key Mobile Ad Metrics
eCPM
The estimated cost-per-thousand (or Roman number M) is the key metric in mobile advertising. This is the amount that a publisher is paid on average per 1,000 impressions.
For publishers, bulk mobile eCPMs range on average between US$ 1.25 per thousand impressions to as little as US$ .25 per thousand. On the desktop web, advertising is usually sold by either CPM or PPC (pay-per-click). In PPC, also called CPC (cost-per-click), the publisher only gets paid when a user clicks on an ad.
Mobile advertising differs from the desktop Internet in that some networks, like Apple’s popular iAd program, provide a blended model that provides a minimum CPM rate as well as an incremental PPC fee. Of course Google is still one of the major advertising players in mobile and, as with desktop advertising, heavily slants towards PPC.
Regardless of whether you use CPM, PPC or a blended model, forecasting will still use CPM units with an assumed click-thru rate (CTR), which is why the “e” for estimated has been appended to the CPM metric.
CTR
The click-thru rate, or conversion rate, is how often a user actually clicks on an advertisement compared with how often an ad is shown. If an ad is clicked on one time per one hundred impressions, the CTR is one percent.
Impressions
Each time an ad is displayed it creates an impression. How a site or application is created and which ad network or server is utilized will impact the number of impressions.
Refresh Rate
Refresh rates are how often a new ad is loaded.
Many mobile ad networks have a refresh rate of 30 seconds. Thus, a two minute session on a mobile application will generate four impressions. However for Apple iAD the refresh rate is every three minutes, which would result in only one impression within a two minute session. Moreover, some ad services will create a new impression for every page view on a mobile website.
When forecasting your impressions you need to know the ad refresh rate, the average duration of an app session per user, and if page views and/or duration are used to create impressions. You also need to determine which refresh rate will create the most click-through rates for your ads.
Fill Rate
The fill rate is how often an ad is delivered compared to how many times it is requested.
Mobile usage far exceeds the amount of available paid advertising, and fill rates for mobile websites and applications are notoriously low. Although fill rates vary between networks, Apple iAD often only delivers a 25 percent fill rate, or in other words only one ad delivered per four requests. Other networks boast higher fill rates, but often with substantially lower CPMs.
Ideally, publishers will utilize multiple ad networks to fill 100 percent of the inventory. This may be supported through client-side script in the site or app, or by using a mobile ad server, such as AdWhirl, that can broker the ad requests.
Ad Units
The ad unit refers to the dimensions of the mobile ad.
Ad unit standards are in a bit of flux, complicated by the sheer number of handsets and screen sizes on the market. But the most popular smartphone banner size is 300 x 50 pixels.
The Mobile Marketing Association advocates the following ad units.
Full-Feature and Smartphone Standard Ad Units:
- 120×20
- 168×28
- 216×36
- 300×250 (Smartphones Only)
- 300×50 (Smartphones Only)
- 320×50 (Smartphones Only)
Tablet Standard Ad Units:
- 300×250
- 468×60
- 728×90
- 1024×90
Category
The subject of the app or mobile site is referred to as the “category.”
Some categories have much higher eCPMs compared to other categories. When purchasing mobile advertising you need to think about which categories you want to support based on the positioning and relevancy of your product or service.
Publishers need to understand that the topic of the app or site will dramatically affect the rate that advertisers will pay to place ads. For instance, according to a recent report published by Velti, the weather category averages over twice the eCPM of games.
Platform
The platform is the type of device that the mobile ad is delivered on.
Platform can impact the eCPM earned for ads as well as the ad units required to deliver those ads. The most popular platform is Apple iOS, accounting for over 50 percent of all mobile ad impressions and often generating the highest eCPMs for mobile ads.
Forecasting Mobile Ad Revenue for Publishers
As a mobile web or app publisher it can be challenging to forecast mobile ad revenue, especially if you are using multiple ad networks to fill the available advertising inventory, and if those networks use a CPM or PPC model. To make an accurate forecast you need to make some broad assumptions.
The first item to forecast is how many impressions you think you can generate. This will be calculated by:
- The number of times per month people will use your mobile site or app
- The average duration of each session of usage for your mobile site or app
- The refresh rate for how often the ads are loaded with the app or web page
Once you understand how many impressions you can generate, you need to calculate the eCPM rate for each thousand impressions. This will be impacted by:
- The category of your app or website
- The click-thru rate for ads on your app or site
- The platform(s) your app or site are delivered on
Lastly you need to calculate the fill rate for how much of the available ad inventory will be filled by an ad network. Assuming you are using multiple networks to increase your fill rate, you need to determine which percentage of requests will be filled by which network, and at which rates.
Conclusion
Mobile is the future of advertising. It delivers location, context, behavior and other dimensions that promise to make advertising more relevant for end users and more profitable for publishers.
Yet today mobile advertising is in a bit of a freefall, with mobile usage growing faster than available advertising, resulting in falling eCPM rates. On the other side, the growth of mobile is creating more impressions, which equates to more revenue for publishers. Deciding if mobile advertising fits your business requires building a strong forecast model and then testing those assumptions as you go to market.
Whatever direction you take, the one thing you can count on is that it will all change tomorrow. The mobile industry is evolving at such a fast pace that any advertising program will need to be readdressed on a near continual basis.
Feel free to share your thoughts and questions on mobile advertising in the comments below.
Via: http://www.cmswire.com/cms/customer-experience/understanding-mobile-advertising-015180.php
What’s Trending in 2012?
Posted: January 9, 2012 in Ad Industry, Digital Display Advertising, Digital Trends, Display advertising, Industry News, Mobile Advertising, Mobile Applications, Mobile Internet, Online, Online Advertising, Performance Advertising, TabletsTags: 2012 Mobile Predictions, Advertising, Android, Apple, Facebook, Interactive media, ipad, Mobile Advertising, Smartphone
Posted by } Alex Spencer
Image via CrunchBase
2011 was a year of rapid growth and change in the mobile advertising industry. It was the year that saw smartphones, Tablets and the mobile internet become mainstream among consumers, and that saw marketers and advertisers increase spend and begin prioritising mobile. 2012 looks set to be even more of a critical year in the development of the industry. From Adfonic’s own data and knowledge of the industry we predict that the following developments will become hot topics over the next 12 months.
Tablet boom
With the iPad being one of 2011′s most popular Christmas presents, and with the new Kindle Fire making tablets more affordable and accessible, we can expect to see tablet devices replacing lower-end laptops and notebooks over the course of 2012. It is not unrealistic to expect that Tablet ownership will more than double.
Rich media going mass market
Rich media is already emerging as a game-changer for the mobile advertising industry, as it offers the consumer a more engaging and interactive experience and facilitates superior branding opportunities for advertisers. Until now, rich media advertisements for mobile have, for the most part, been offered as a premium or niche service across a small number of high end mobile publishers. In 2012, mobile ad networks will be offering rich media on a global scale, giving advertisers access to millions of consumers and challenging budgets across other media channels.
Advertising spend shifting towards mobile
As smartphone penetration booms, consumer mobile usage will continue to increase and extend across new times of the day. For example, one of the most quoted use cases in 2011 has been consumer use of tablet or smartphone devices during TV commercials. Consumers are browsing mobile sites and using apps on their tablets and smartphones in place of TV commercial consumption, which suggests that the perception of mobile as primarily an extension of the PC internet will finally disappear. It is becoming increasingly clear that mobile operates as an alternative to the “fixed internet” for many people and this can no longer be ignored. Advertising budgets will increasingly follow the consumer over to mobile.
Phasing out of feature phones
Smartphones are now becoming more economically accessible to all consumer segments as a result of the large range of Android devices coupled with Apple’s pricing strategy for older phones. As the number of services and options begin to concentrate on tablet and smartphone platforms, advertisers and agencies will slowly phase out features phones from their plans.
Apple and UDIDs
During 2010 and 2011, much investment poured into app tracked campaigns enabling advertisers to deliver installed apps at low cost. A new common approach, superseding UDIDs, will become mainstream across agencies, advertisers, ad networks and other players in the ecosystem, as Apple plans to phase out access to the UDID on its mobile devices.
Mobile web versus applications
During 2011, there were hints (driven predominantly by large industry players opting for HTML5 over a multi-app approach) of the mobile web challenging applications as the way forward for mobile internet usage. During 2012, we are likely to see this debate evolve with the potential for some major decisions by digital players to impact the market and force some rethinking.
Geo-location services
There is likely to be more integration across marketing channels, platforms and other parties that will enable geo-location services and advertising to ramp up during 2012. Driven predominantly out of the US (where most geo-location business is currently concentrated) we are likely to see more demand for campaigns targeted to smaller areas (ring-fencing) with a view to driving footfall into retail stores, restaurants and other outlets.
Increasing use of mobile payments
While this may not be the year that mobile payments become mainstream, many players will come together to make significant progress in piecing together the mobile commerce ecosystem. The success of Google Wallet last year will drive industry players forward in 2012, with major advertising events like the Olympics providing a springboard for new, exciting innovations around mobile commerce.
Facebook and mobile advertising
Facebook has been holding back on pushing mobile advertising aggressively. With close to 1bn users online, and over 300m users now accessing Facebook via their mobile, it provides a significant game-changer and possible milestone for the mobile advertising industry. However Facebook decides to execute on mobile advertising will, without a doubt, have a big impact on the digital industry in general.
Further progress on standards and privacy
With mobile advertising moving at such a fast pace in terms of innovation and market demand, there will be increasing requirements for further standardisation (ad formats, for example, including rich media) and frameworks and policies driven by the trade bodies on privacy and data.
YOC no more
Posted: November 18, 2011 in Ad Industry, Affiliate Marketing, Augmented Reality, Automotive, Content management, Customer Relationship Marketing, Data Privacy, Developers, Digital Display Advertising, Digital Marketing, Digital Trends, Display advertising, E-Commerce, Email Marketing, Industry News, Information communications technology, Internet, Location Based Services, M-Commerce, Marketing, Media & Entertainment, Mediation Platforms, Mergers & Acquisitions, Mobile Ad Exchanges, Mobile Ad Networks, Mobile Advertising, Mobile Applications, mobile banking, Mobile Developers, Mobile Gaming, Mobile Handsets, Mobile Industry News, Mobile Internet, Mobile Payment Solutions, Mobile Phones, Mobile Platforms, Mobile Privacy, Mobile Search, Mobile SEM, Mobile Social Media, Mobile Social networking, Mobile Technology, Mobile TV, Multichannel Marketing, Online, Online Advertising, Performance Advertising, Publishing, Publishing Industry, Retail, Smartphones, Sms, SMS Advertising, SMS Marketing, Social Media, Social Networking, Tablets, Technology, Telecommunications, Wireless TechnologiesTags: Advertising, Business, Christian Louca, Evolution of Communication, Mobile Theory, Telecommunications, YOC
I have now left YOC after 4 years since launching their UK operations. It has been an absolute pleasure working for such a fantastic organisation and I wish my old colleagues all the best for the future.
I am now looking at the next big thing and will update all via my blog in due course. It is exciting times for mobile and we are all moving at an incredible rate. So many fantastic new start ups with so many ingenious ideas all to make our lives better. I believe we strive to help people communicate, engage, consume, learn, inform and so much more.
This global society that we have born is the future and will change lives forever to come. No borders, no politics, no fuss. A generation of globally connected people wanting to share experiences and information from across all corners of the globe.
I am privileged to be part of such an amazing evolution of communication…
Borrell: 20% of Local Marketing Budgets Planned for Mobile
Posted: August 17, 2011 in Ad Industry, Digital Display Advertising, Digital Marketing, Display advertising, Industry News, Location Based Services, Mobile Advertising, Mobile Industry News, Multichannel Marketing, Online AdvertisingTags: Borrell Associates, Business, Groupon, Mobile Advertising, Mobile marketing, Mobile media, Mobile phone, Online Advertising
Image via Wikipedia
Borrell Associates, which specializes in research covering local and online advertising, issued a new report this week called “Main Street Goes Mobile” that examines the role that mobile media is projected to play in local business marketing over the next five years.
Pointing to a business and consumer environment ready to embrace mobile advertising, Borrell cites statistics indicating that a full third of website readership already accesses information via mobile devices. Meanwhile, half of local businesses report plans to engage in mobile marketing.
These local marketers plan to commit roughly 20% of their budgets to this effort. Will they follow through? While mobile marketing (and hyperlocal efforts in general) can be turnkey in some respects, there are still costs to consider, along with the navigation of complex technologies and new business relationships.
The difficulties most local (and national) businesses encounter with online and mobile implementation have led directly to the rise of a media middleman — Groupon is a well-known example. Whereas traditional ad agencies and marketing firms handle creative and placement, taking fees directly from advertisers, many local advertisers are opting for promotions and other efforts that come without a clear price tag attached. Using the model embraced by many group deal sites, advertisers actually receive money from these middlemen (albeit much less than they would from traditional customer engagements) rather than doling it out.
Borrell projects that, by the end of 2011, 1/3 of all mobile phone users will have smartphones. Soon, mobile capabilities will be the price of entry for marketers. Advertisers are looking to firms like Groupon, LocalUp and GeoIQ to keep their advertising efforts streamlined, transparent, and supported on multichannel platforms.
We’re talking about real money here. Borrell projects that local online advertising will reach $18 billion by 2016, with local mobile couponing at $3 billion. While this growth is occurring at a rate much faster than the slow initial shift to online advertising, we need to remember that there is already what Borrell calls an “installed base”: advertisers and consumers comfortable with online marketing, for whom the addition of mobile is simply a shift within a familiar environment.
In an important divergence from ads of the past, “the medium is no longer the message,” according to the report.
Borrell asserts that “mobile is not a channel — it’s a [series of] platforms,” allowing real-time engagement with consumers. Within mobile usage lie options for email and paid search advertising. Both of these highly popular functions provide a fertile environment for mobile advertising. But advertisers are also examining text / SMS, downloaded apps (a key opportunity) and in-game environments. And not all these channels will grow at the same rate.
In an important divergence from ads of the past, “the medium is no longer the message,” according to the report. With content and channel decoupled, advertisers need to consider that communication can be delivered in a number of ways at a number of different moments in a consumer’s day, and need to plan their messaging accordingly. Even the way the industry measures and tracks marketing success will need to change, since we are going beyond eyeballs and “impressions” to assessing the distinct action a consumer takes (or doesn’t take).
The research firm notes that local radio companies have largely missed the boat when it comes to online marketing opportunities, leaving the spoils to companies like Pandora and Slacker. This is a useful observation, as local radio really does seem half-hearted about its online presence; it will be interesting to watch future activity in this space.
The report includes a number of insightful charts projecting revenue and growth rates for components within mobile advertising. While national ad spending continues to rise in some channels, it drops in others, and local ad spending is projected to rise across the board.
An especially interesting point is the blurred point of difference between promotions, which have traditionally been more B2B-focused, and advertising, historically a B2C effort. Driven by coupons and discounts / deals, mobile marketing is starting to move across each category of US promotional spending.
Coupons, discounts and deals have “evolved,” Borrell says, to a balance point where they are both easy to execute and appealing to consumers. Other, more complex promotions prove to be more challenging to implement. An example: proximity marketing is enjoying press exposure right now. Borrell projects that the nascent marketing structure will hit its stride about two years from now. For the moment, promotions involving geolocation and “fencing” are too complex, data-driven and expensive for all but large national advertisers to take on.
It would seem that there is a major creative opportunity for middlemen — or traditional ad and marketing firms — to help develop effective and simple creative to push through these new channels, allowing advertisers to retain their hands-off status. Gradually, however, the creative quality will be forced to improve, based on consumers’ heightened expectations and the risk otherwise of saturation.
Borrell’s report effectively illustrates the skyrocketing growth of mobile marketing and advertising, as well as clarifying the multiple channels that fall within our current definition of “mobile.” They do remind the reader, though, that this all exists within a much larger bucket of money still being spent by national advertisers on traditional marketing and advertising efforts. Mobile marketing is an infant: tiny, but loud, and getting louder.
Via: http://streetfightmag.com/2011/08/12/borrell-report-local-marketing/
Mobile advertising: profit at your fingertips
Posted: June 10, 2011 in Digital Display Advertising, Digital Trends, Display advertising, Industry News, Internet, Media & Entertainment, Mobile Advertising, Mobile Industry News, Mobile Internet, Multichannel Marketing, Online, Smartphones, Tablets, Technology, Telecommunications, Television, Wireless TechnologiesTags: IAB, mobile statistics
Posted By ] James Robinson
Expensively produced adverts that were once only seen in glossy magazines are now being produced for many tablets and smartphones. Photograph: Jim Wilson/New York Times/Redux/eyevine
Mobile advertising is finally beginning to come of age as phones transform the relationship brands have with their customers in new, and sometimes unexpected, ways. The rate of growth is astounding, and the pace of change so rapid it is now difficult to believe that many companies greeted the predicted inexorable growth of mobile advertising with barely disguised scepticism a decade or so ago.
The UK market was worth £83m in 2010, according to the Internet Advertising Bureau (IAB), up from £37.6m the previous year, an 116% like-for-like increase. Online market research company comScore says that in 2010 there were 19.1 million monthly mobile internet users in this country, up by 4.6 million from the same month the previous year. US investment bank Morgan Stanley said this year that “online advertising may finally be entering a golden age”.
The bank believes that the mobile advertising market in western countries is set to reach the recent growth rates seen in Japan, where mobile ad spend rose threefold from 2006 to 2009, to stand at $1bn (£610m). FirstPartner, a consultancy company, predicts that the UK market will be valued at £992m by 2015.
Much of that growth has been driven by the mobile internet and, latterly, by smartphones. Jon Mew, head of mobile at the IAB, points out that 41% of the population already have a smartphone. “By next year that should be half of the population,” he says, “and it shows no sign of slowing.”
Rik Haslam, chief creative officer at leading digital advertising agency RAPP, says: “Clients sometimes ask me whether mobile advertising is really something they should focus on. I tell them that right now more smartphones are being built than laptops and desktops combined, that mobile internet use is ramping up almost 300% faster than desktop internet access did, and that more than 50% of people use a mobile device while watching TV. So yes, it’s something clients should focus on.” He adds: “If the internet revolution disrupted business norms, then the smartphone revolution is devastating business norms.”
Analysts at Morgan Stanley estimate that by 2020 there will be about 10bn mobile internet devices worldwide – 10 times the number of PCs currently in use.
But the story can’t be told by statistics alone, as compelling as they are. The arrival of tablets, Apple’s iPad in particular, and the popularity of location-based services, which use the GPS functionality of a smartphone to offer users services based on their location, have transformed the user experience – and the aesthetics – of mobile advertising. Put simply: it has become sexy.
“Traditional brands didn’t do much on mobile, but it’s changed dramatically in the last year,” says Mew.
In recent years, around two thirds of online advertising spend has traditionally been on ringtones and downloads, but 12% of spend last year came from companies that sell fast-moving consumer goods.
The look, feel and size, of the iPad, one of the fastest-selling new computer devices in history (it took just one month to sell 1m iPads; the iPhone reached the same target in 74 days), has prompted fashion brands and car companies to create sumptuous online campaigns that were only seen in glossy magazines or expensive television adverts until recently.
Generating a response
Although they have been talked about for some time, location-based services have only really started to take off over the past 12 months, aided by the launch of Google and Facebook products, such as Facebook Places. Those services are powerful, allowing carefully targeted advertising campaigns that generate far better responses among consumers. Research published by location data firm Navteq in August 2010 found that 41% of consumers who saw a specific mobile advert went into one of that retailer’s stores – and 53% said it was the advert that prompted them to visit.
Text messaging and advertising campaigns have become more targeted and more sophisticated. More people are using their phones rather than PCs to search the internet (10% of all UK traffic now comes through mobiles) and new mobile technology is enabling big corporations to experiment with reward schemes designed to attract and retain customers, which may, ultimately, make loyalty cards obsolete. M-commerce also continues to grow: mobile-generated sales at online giant eBay tripled to nearly $2bn in 2010, with the UK the fastest adopter.
Challenges remain for advertisers, however. The lure of the iPad and the iPhone, with their hugely popular apps, can make companies who want to establish a mobile advertising presence lazy. According to mobile marketing company 2ergo: “A lot of companies launch a mobile app and think they’ve ticked the mobile box – but an iPhone is only 11% of the total [mobile] market. You’re missing out on the bulk of your target audience.”
If a company wants to reach all of its target audience, it has to create content that can be used on all of the popular operating systems, which combined make up the vast majority of the market. Google’s operating system for mobiles, Android, is growing market share, and Android-powered phones recently overtook iPhone sales. BlackBerry-maker RIM has won a new audience of young enthusiasts who use its instant- messaging service.
All of those platforms are likely to enlarge, but there are lingering concerns among consumers about privacy and there is still some resistance about using services such as mobile internet at all. According to a recent IAB survey, 21% of respondents said they only used their mobile phone for texting or calling. That seems set to change, however, as mobile phones become the next link in the internet’s evolutionary chain. There have been several false dawns, most notably when WAP-enabled phones, which allowed users mobile access to the internet for the first time, became available at the end of the last century and failed to live up to the hype that surrounded their launch. This time around, the hyperbole seems justified.
Via: http://www.guardian.co.uk/mobile-marketing-2011/mobile-advertising-profit-fingertips
Apple Snubs The iAd & My Personal View on the Mobile Ad Market
Posted: June 7, 2011 in Developers, Digital Display Advertising, Digital Marketing, Digital Trends, Display advertising, E-Commerce, Industry News, Information communications technology, M-Commerce, Media & Entertainment, Mobile Ad Networks, Mobile Advertising, Mobile Conference, Mobile Developers, Mobile Handsets, Mobile Industry News, Mobile Internet, Mobile Platforms, Mobile Technology, Retail, Smartphones, Technology, Telecommunications, Wireless TechnologiesTags: Apple, Apple Worldwide Developers Conference, Gmail, iAD, iCloud, iOS, IOS (Apple), iphone, San Francisco, Steve Jobs, Yahoo Mail
My Comments on the below:
It is very interesting that Apple have not mentioned iAD at the World Developer conference day in San Francisco yesterday as highlighted by Dan Frommer of Business Insider. Especially, as they were so keen to raise the bar in the mobile ad industry when they announced its release last year. That said the mobile ad industry is moving at such a fast rate and I no doubt Apple are fine tuning their product from the learnings they would have taken to-date.
We are seeing first hand the mobile ad-market exploding into the desk of most Marketers & Media Planners and Buyers. This is a subject that has to be on the list rather than off the list. There are dynamic shifts across regions in the type of advertisement whether it is brands, content companies or media owners all wanting to capitalise on the opportunity.
Mobile content companies that where present in the early stages are finding it hard to convert in the matured markets such as US and Western Europe. I believe this is due to user desirability and general maturity of the market. The old content subscription services are not so sought in markets with strong smartphone penetration. As the mobile web and apps that are enabled by smartphones offer content that is ‘King’. Whereas, in emerging markets like LATAM, ASIA, Indonesia with heavy feature phone penetration content is scarce and usability limited. Hence, the desire is still high for content companies to service this void.
Western society is dominated by the big Fortune 100 advertisers whether it is premium advertising with super sexy rich media and the explosion of HTML5 or more simple direct response campaigns pushing for an acquisition/sale of some sort.
We are starting to see the big brands shift some ad-spend into the emerging markets from certain sectors such as, Travel, Finance, Technology, Health and Automotive but this is still a small portion of the total ad spend in those markets that are dominated by content companies. The end user is still considered as someone with limited or no disposable income unlike its more matured Western Societies. This is changing thanks to technology and many other factors and presents a huge opportunity for M-Commerce as this will in many emerging markets leapfrog e-commerce.
This is when everything changes…
When we consider there are 3 billion people in the world that are not even connected to online and that these 3 billion people in the next five years will become connected via cheaper and still sophisticated smartphones it presents a world of opportunity and excitement. This is why I work in the most exciting and fastest growing industry of all time.
Posted By ] Dan Frommer
Remember Apple’s iAd? Apple might not, either.
A year after being shown off as a “tentpole” feature of iPhone software, Apple’s mobile advertising business didn’t earn a single mention today, as execs previewed a new version of iOS at the company’s Worldwide Developers Conference in San Francisco.
Apple CEO Steve Jobs even took the opportunity to trash ads.
While discussing Apple’s free, new iCloud email service, he took an apparent jab at Gmail, Yahoo Mail, and the others, which stuff ads in their free email services.
“No ads,” he boasted. ”We build products that we want for ourselves, too, and we just don’t want ads.”
That’s obviously not the same thing as if Jobs were to say “we don’t like iAds” or “iAds stink.”
But it seems to underscore the awkwardness of Apple — a product-focused hardware and software company — trying to become an advertising company. (Much more about that here.)
Maybe there just weren’t any new iAd features to show off today. Apple certainly had a lot of more interesting new stuff to show off. But there wasn’t even a “hey, look how many ads we’re delivering every day” or “wow, we have all these amazing advertisers!” message. Or anything.
Via: http://www.businessinsider.com/apple-snubs-the-iad-2011-6#ixzz1OZxRyZFl
China’s Mobile Ads Will Double to $1.16 Billion in 2014, EMarketer Says
Posted: April 20, 2011 in Digital Display Advertising, Digital Trends, Display advertising, Industry News, Mobile Advertising, Mobile Industry News, Mobile InternetTags: Apple, Brazil, China, Google, Mobile Advertising, Mobile Advertising growth trends, Mobile device, mobile trends, mobile web, Noah Elkin, Quattro Wireless
Posted By ] By Douglas MacMillan
Advertising on mobile devices in China will more than double to $1.16 billion in the next three years, growing faster than the U.S. market, according to a report by EMarketer Inc.
Mobile advertising in China will grow 158 percent by 2014, EMarketer predicted in a report to be published today. In the U.S., mobile ad sales will grow 131 percent to $2.55 billion over the same period, the report said.
Advertisers are boosting spending on text and graphic display ads for handheld devices in China as portions of the world’s largest Web market increasingly migrate to mobile phones. The country will add almost 200 million mobile Internet users over the next three years, bringing the total to 568 million in 2014, according to EMarketer.
“Because mobile devices are often the primary way that consumers access digital content” in China and other emerging markets, advertisers enjoy a “heightened appeal relative to a more mature market, where you have higher PC penetration rates,” said Noah Elkin, principal analyst at EMarketer in New York.
Emerging markets for mobile advertising such as India, Brazil and Russia are growing at even faster rates than China. India’s mobile ad spending will total $190 million in 2014, up more than threefold from this year. Brazil’s mobile ads will grow almost fivefold to $117 million in the same period. Mobile advertising in Russia will more than triple to $72 million in 2014.
In the U.S., competition for mobile ad dollars has drawn large technology companies to make acquisitions in the industry. Google Inc. (GOOG) purchased mobile ad provider AdMob last year for about $700 million. The same year, Apple Inc. (AAPL) acquired Quattro Wireless, another startup selling ads placed on mobile devices.
