Posts Tagged ‘Trade Associations’

Mobile ad agency YOC has bowed its YOC Ad Plus rich media ad format for mobile phones and has signed up its first client in the shape of Wilkinson Sword. When a user clicks on a YOC Ad Plus banner, it opens full screen and enables numerous interactive elements for the advertiser, ranging from picture galleries, video and 360° rotation, to the integration of couponing, wallpapers and social networking tools.
“YOC Ad Plus allows advertisers to hand pick well known media titles on which to run their campaigns, offering a solid advertising environment,” says Gary Danks, advertising director at YOC. “YOC Ad Plus’s ability to deploy multimedia will engage mobile users much more so than standard mobile advertising, and this should in turn generate strong campaign performance for advertisers, and a higher brand awareness, Wilkinson Sword is the first brand to sign-up to use YOC Ad Plus and the format will roll out on Apple iOS and Android.

yoc

mobile2MobileSQUARED projects around 19.4 million smartphones in the UK by the end of 2010. This means, the more creative the mobile ad campaigns, the increased likelihood that more people will be able to access and engage. This is just the beginning.

Via: http://brand-e.biz/wilkinson-sword-cuts-into-mobile-rich-media_9051.html

UPDATE: Pizza Hut expects mobile to account for 50 percent of future mobile orders, not current orders

Posted By ] Rimma Kats

pizza

Buoyed by the fact that one out of two orders are via mobile, Pizza Hut is about to get more ambitious with apps.

Brian Niccol, chief marketing officer at Pizza Hut, Dallas, said yesterday at a media lunch in New York, that his company will soon launch an iPad and Android application. The executive also showcased new menu items that consumers can buy via their mobile device.

“We want our pizza to become a favorite memory,” Mr. Niccol said. “When I came onboard five years ago, Pizza Hut didn’t even have a Web site where people could order pizza.

“Now, mobile accounts for almost 50 percent of our orders,” he said.

Pizza Hut is an American restaurant chain and international franchise that operates more than 10,000 restaurants in more than 90 countries. It offers different styles of pizza along with side dishes such as pasta, buffalo wings, breadsticks and garlic bread.

The “Your Favorites. Your Pizza Hut” lunch unveiled the company’s new brand campaign.

According to Mr. Niccol, mobile and social media plays a big part in the company’s multichannel strategy.

Although Mr. Niccol would not divulge what functionalities the iPad and Android application will feature, he did share that more consumers are purchasing pizza via their mobile device than online.

Text for pizza
Pizza Hut is no stranger to mobile.

In 2009, the company was one of the first pizza chains to offer both SMS and mobile Web ordering options.

The “Total Mobile Access” service let users text an order to the short code 749488.

Then, users receive a confirming text from Pizza Hut.

Additionally, users with any Web-enabled device can order directly from the company’s mobile site (see story).

Pizza app
A few days after the debut of its SMS and Web initiatives, Pizza Hut rolled out an iPhone application that lets users order menu items via their handset.

Consumers can also play a fun game via the application that lets them build their own pizza by pinching to select the size and drag-and-drop toppings onto the pizza (see story).

The Pizza Hut application surpassed $1 million in sales after being live in the App Store for three months (see story).

Social toppings
Pizza Hut has also dabbed into the social world with a new promotion that offers users a chance to win a free single order of breadsticks by using location-based service Foursquare.

Hungry consumers who check into participating locations and become mayor of that Pizza Hut can receive their free reward with the purchase of a large pizza (see story).

Final Take
Rimma Kats, editorial assistant at Mobile Commerce Daily, New York

src=”http://www.youtube.com/v/HjBMhONSZpQ&color1=0x5d1719&color2=0xcd311b&hl=en_US&feature=player_embedded&fs=1″ type=”application/x-shockwave-flash” allowfullscreen=”true” allowScriptAccess=”always” width=”640″ height=”385″>

VIA: http://www.mobilecommercedaily.com/pizza-hut-exec-claims-mobile-accounts-for-50-percent-of-orders/

My Comment on the below article:

I have never been one to rely on predictions from research companies and in this case I also feel it is a bold prediction.  That said, do I believe in m-commerce?  Yes.  Do I believe it is going to be adopted on mass scale? Yes.

M-commerce is a natural progression for retailers to extend their existing e-commerce operations.  I also share the viewpoint that m-commerce will leapfrog e-commerce in less established markets.  After all mobile internet has done this in countries like India, China, Korea (to name a few) so why not m-commerce? Retailers have been traditionally slow in taking up mobile as a marketing/sales channel.  It was no different in the early fixed internet days.  However, with players like Google and Apple moving into the market, I do believe they are being forced to wake up and realise the true potential of this device.  Whilst they are behind other sectors in mobile adoption, it is not too late for them to get involved.

Unfortunately, we have already seen retailers start to embrace mobile with the wrong strategy and are making the mistakes that others are savvy too. We are seeing retailers jump on the app bandwagon without considering the mobile internet first, this is a classic mistake to make.  Please see my comments on this topic before: http://wp.me/pxxzu-3Z

Nonetheless, over the next 5 years I do believe will will see a huge uptake on m-commerce.  Especially as more and more rich smartphones come in to play, this will be an inevitable evolution of e-commerce into m-commerce. As mobile internet adoption is expected to take over the fixed line web on a global scale then I find it unlikely for this not to happen.

Posted 17 February 2010 09:06am by Patricio Robles

After years and years of premature predictions of varying kinds about the mobile market, it’s clear that mobile is starting to realize the potential just about everyone knew it had. From the billions of mobile subscribers around the world to the more than one billion apps that have been downloaded via Apple’s App Store, mobile is legitimately big.

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According to ABI Research, mobile is going to get a lot bigger in the ecommerce market. The research firm is predicting that in 2015, $119bn worth of goods and services will be purchased via a mobile phone.

It’s a bold prediction. By ABI Research’s count, mobile commerce tripled in the United States in 2009, but still only constituted a $1.2bn market. In Japan, which has one of the most vibrant mobile markets, mobile commerce “exceeded $10 billion” in 2009.

So how is mobile going to get to $119bn by 2015? In the developed world, adoption of smart phones is playing a large role. ABI Research notes that more and more consumers in the U.S., for instance, are using their mobile phones for retail-related purposes. Specifically, mobile-savvy consumers are using their internet-enabled phones to comparison shop while browsing brick and mortar stores. In the less developed world, the mobile phone often provides the only pathway to the internet, meaning mobile phones will be at the center of internet-based commerce in these countries.

Obviously, a lot of mobile-related predictions over the years have been way off and despite the increased maturity of mobile markets, it’s anyone’s guess as to how much money will really change hands between businesses and consumers via mobile five years from now. That said, companies should plan for the day when a mobile commerce strategy is a requirement, not optional, because that day is likely coming sooner than later.

Two areas businesses should be giving thought to:

  • Mobile presence. How will your customers and prospective customers expect to interact with you via mobile? Will you need a mobile website/storefront? How can mobile fit into a broader multichannel strategy?
  • Mobile marketing. Even businesses that decide a full-fledged mobile presence doesn’t make sense will need to consider how they’re perceived on the mobile internet. This is especially true for retailers who will increasingly have to deal with consumers who check for better pricing while in-store.

URL Link:

http://econsultancy.com/blog/5435-mobile-commerce-to-grow-to-119bn-by-2015-report#blog_comment_22558

What are the most common mistakes made when marketing to mobile users? Digital communications agency I-level has compiled data on mobile marketing, looking specifically at tactics that are both welcomed and rejected by end-users. These have been categorised into a list of ‘Seven Deadly Sins’ of mobile marketing.

Mobile platforms are no different from traditional channels. Users want to access information in a way that is clear, and intuitive. A mobile is much more than a simple voice communications device. Over 21 per cent of all mobile users in the UK access the Internet from a handset (source m:Metrics 2009). This equates to an audience of over 11 million people searching for information, accessing websites and engaging with content on a daily basis.

As a result it isn’t enough to simply operate in the space, marketers need to understand the space. What is the best way to enhance the user experience? What role do marketers want the mobile platform to play? What value does it drive from pre-click through to post-click? How does it combine with the overall strategic communications?

Below are examples of brands that have allowed their better judgement to be clouded over by the implementation of mobile campaigns, as well as those that have successfully complemented business objectives:

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Envy – copycat techniques

‘Me-too’ applications or solutions that are developed based on a brief from a client wanting to better its competitor’s application. If you are looking to develop a mobile app, it needs to be for strategic as opposed to superficial reasons. A well thought out app is original, valuable and provides users with a reason to not just download but interact with it. Research shows that only 20 per cent of iPhone apps encourage repeat usage a day after download.

The Becks Gigfinder is an example of a successful campaign. Becks in partnership with Last.fm created an app that allows users to see all the gigs that are happening in their area, utilising smartphone GPS functionality and augmented reality.

Gluttony – following the fad

Brands sometimes find it difficult to resist the smorgasbord of opportunity available through mobile platforms. Just because you can try everything, it doesn’t necessarily mean you should. Like any other media channel, it is important to understand why you are connecting with your audience and use the best approach.

The Zara iPhone app can be considered gluttonous. It is difficult to determine the purpose it serves, as there is no real product information available, store locator or option to add products to a wish list. Engagement with the brand and products is limited.

Greed – hidden costs

Just because you can charge for something doesn’t mean you should. Apps now allow you to offer paid-for updates but you need to deliver value to the user that can’t be attained from a free source. Transparency is key, as it is important to inform users of potential charges that will be incurred, even if it is at a later stage.

Lust – pretty, but useless

Someone accessing your site on a mobile has a different mindset from a desktop user. They have a different set of needs and users accessing the info from a mobile are probably searching for succinct information. It is important to consider the structure of your mobile site and incorporate all information that will add the most value on a small screen.

For example, a flash site laden with launch videos and photos aimed at lower capability handsets with PAYG reliance will alienate this audience as it has to spend all of its credit on the download of the page and its images.

Pride – do it my way

If you are going to do mobile or build an app, then take the time to do it right. An app should never be rushed to deliver a self imposed deadline. Creating value takes time, research and a lot of energy. The Guardian wasn’t the first paper to launch an app. It looked at the market, saw what others were doing and took the appropriate measures to ensure that when it did launch, it had the best app in the space. 70 thousand downloads suggests that the strategy was successful.

Sloth – no one likes the lazy friend

It has become commonplace for companies to request mobile numbers as a point of contact when users sign up to them. It is important to engage with customers shortly after they have signed up to your service. Alternatively you will waste the window of opportunity for communication on a sacred platform – mobiles are incredibly personal devices and the rules of engagement are a lot stricter.

Wrath – angering your audience isn’t a good idea

It is essential to respect the environment in which you are operating. The SMS inbox is still a highly protected and personal space. As the market matures and more users access their social media and email, via mobile, the barriers to the inbox will decrease.

Receiving text messages still evokes anticipation. Most people check their messages instantly because they expect it to be from a personal source with direct value to them. Mobile messages need to be relevant, include an ‘opt out’ tactic for the user, and not be designed to appear like spam.

People are happy to receive a message reminding them about personal appointments, but texting them at midnight regarding system updates isn’t an ideal form of engagement.

“Marketers should not be subjecting their audiences to the Seven Deadly Sins of mobile marketing,” said Oliver Newton, Head of Emerging Platforms, i-level. “Strategy is more important now than ever before, especially with the dynamism of the platforms that we have at our disposal. It is imperative to understand who you want to communicate with, where and how. Effective utilisation of mobile is the solution to this conundrum.”

URL Links:

http://www.netimperative.com/news/2010/february/the-seven-deadly-sins-of-mobile-marketing

www.i-level.com



My Comment on the below article:

I found this thoroughly refreshing to read.  Zoe has demonstrated a really good attitude to take toward the mobile channel.   I do not doubt Cisco will be successful in their approach.  I highly recommend this article.

I would add one thing with reference to Zoe’s comments, quote ‘Often brands make the mistake of going straight to creating the app first without testing the other approaches. The app market is very competitive and you need to stand out from your competitors and other apps’.

As previously mentioned: Mobile Internet is at the heart of Mobile Marketing campaigns. The key to this is to remember mobile works best when integrated into traditional media whatever the format.  Mobile applications are just one element to utilise as a marketing channel. At present only iphone applications are offering the rich levels brands would expect and the experience consumers would hope for. The others are some way behind.  Therefore there is limited reach, as in the UK iphone has only **17% handset penetration (much less Globally) with Blackberry slightly higher on **20% and Nokia still dominating with a huge **39%  (**Smart phone penetration).

In order to maximise the success of any campaign you need to reach the targeted masses; which means you need to consider all platforms and formats whether it is an application, mobile internet site or simple SMS communications (to name but a few). This always comes back to the key metrics in determining the success of any campaign:

Reach, Targeting, Engagement, Viral-bility and Transactional…..

Does it have reach?  Is it targeted? Is it engaging?  Is it viral? Can you make a sale?

The higher it scores in these areas then the closer you are to running a successful mobile marketing campaign that has delivered recognised measured tangible results.

Posted 05 January 2010 13:29pm by Jake Hird

A lot of coverage has been given to mobile phones recently, especially with Google’s Nexus One looming, the ongoing battle of platforms and the continuing onslaught of the iPhone.

I’ve already opined that although 2010 “won’t exactly be the year of mobile, but it will be a big year for mobile”, so with this in mind, marketers need to be thinking about what kind of options are open to them in this rapidly developing area.

But understanding and navigating mobile marketing can be a bit of a minefield. I caught up with Zoe Sands from Cisco to discuss the various issues within this often complex area.

Mobile marketing seems to be very much a rising star. What are your thoughts about where this currently sits in relation to other digital marketing channels?

I truly believe that mobile has great opportunity for brands to optimise and use as personal communication platform with their respective target audience.

I like to think of mobile as hitting a new wave rather than saying this is definitely the year of mobile, a statement which has been bounded about for several years and has lead to much hype and disappointment around mobile. However, I definitely agree it is becoming more of a rising star. FMCG, Gaming, Sports and Media are all doing a great job with mobile.

The majority of industries are still missing a trick with this marketing method, as it is very much seen as a consumer channel rather than a communication channel. In terms of B2B, I think this is a huge untapped opportunity.

At Cisco, I’ve led the European Mobile Programme, which includes the launch of 17 local countries in 12 languages. My strategy was to use this channel across Europe for brand awareness, starting with a mobile site in each country to get people to understand the mobile medium, then to move into SMS marketing and then onto local app development.

At a Global level the site is more advanced; there has been a big investment in SMS marketing which links in with the site updates and now a new iPhone app is currently in development due to be launched in February 2010.

What would you say are the core foundations of mobile marketing?

The core foundation for anyone wishing to start out in mobile marketing is to understand what your purpose is first, then research whether your market wants a mobile brand channel from you. At Cisco I adopted the following approach:

1. Start with a mobile website, get used to the small screen. The mobile site should not be an exact replica of the main corporate site. Offer content which your audience needs.

2. Once you have the site up and running you then need to look at creating a dialogue with your audience, which can be achieved through SMS marketing. You need to be very careful that you have a double opt in and only send appropriate messages to your target audience as the mobile is such a personal device you don’t want people to disengage with the brand.

If you use SMS too much you may start to annoy people, they will unsubscribe very quickly, then you have lost that communication channel.

3. Finally, start to look at personal ways to engage with your audience such as a mobile app or widget. Often brands make the mistake of going straight to creating the app first without testing the other approaches. The app market is very competitive and you need to stand out from your competitors and other apps. So careful planning is required here, as you don’t want to invest an app that is never used.

How fast are you seeing an uptake (by advertisers) of mobile marketing?

I think advertisers are quite slow to take up mobile marketing, and this is partly due to lack of understanding, the availability of appropriate properties to advertise on and the functionality offered.

Most properties have limited appeal and functionality available to advertisers, although I do feel that search is probably the unsung hero of mobile marketing: Google, Yahoo and Bing all have mobile search opportunities and are worth investigating.

With Google covering many more countries than its rivals, I chose this platform to run our European mobile search campaign. This campaign has been live since July 2008 and this has been a great way to drive traffic to the local country mobile sites. Additionally, none of Cisco’s competitors are actively using this channel at the moment, which means the brand can easily dominate within this space.

Can you walk us through the basic steps as to how Cisco uses mobile?

In terms of our overall strategy, mobile is an exciting opportunity for Cisco and fits naturally with the organisation’s brand value of innovation, as well as supporting the mobility product lines. It has now become an important part of Cisco’s long term web plan.

The first Cisco Mobile site was launched in the US during October 2006. From 2007 to 2009 a European programme was setup to optimise the mobile channel with 17 mobile sites created in 12 local languages. The aim was to enable a targeted set of content to extend Cisco’s brand awareness and engagement, mobile leadership and customer intimacy.

Guiding principles for creating mobile sites in Europe were to:

  • Highlight Cisco as an early adopter of advanced mobile technology.
  • Deliver content of value to the mobile user, avoiding duplication of Cisco.com.
  • Develop and promote Cisco’s European Mobile websites through SEM and SEO.
  • Extend a personal communication by targeted event marketing SMS messages.

Overall, this channel has been a cost efficient method of raising awareness of the Cisco. By embracing mobile outside of the popular entertainment sector, Cisco is advancing its position as a technological leader.

Do you operate in this way on a local, national or international level – and which do you think produces better results?

Each country in Europe has a local language site so is operating on a national level, it is not necessary for Cisco to operate on a local level as the products are not specific to a small geographical region.

What kind of user-engagement or uptake have you seen, and is there evidence that this is growing, or are you finding that audiences are resistant to mobile marketing?

Response and usage has been slow and gradual for Cisco’s mobile sites. However, there has been a significant push to build awareness of using the mobile channel internally, educating the digital and marketing teams to buy into this communication channel.

In terms of building awareness and usage externally; there have been some challenges to build traffic and usage levels, but this has not been an inhibitor to stop using this channel. I think there are very few early adopters in the market place willing use the internet via their mobile device due to two many factors data plan charges and the user experience is not often great.

Although, the service providers are now packaging unlimited data plans within the traditional call packages make it easier and worry free for consumer to access the internet. Over time this should improve usage levels of mobile in Europe.

Let’s talk metrics. Are your marketing objectives being met through the channel and how are you measuring them?

There is currently low engagement with the mobile channel, but I’m comparing it against the internet as it was in the late 1990s when not everyone had a home internet connection. There are more mobile devices in circulation than PCs/laptops, but the majority of the devices are not internet enabled and networks generally don’t seem to allow data plans to be added to their customers’ contracts: These are the major barriers to entry for adaptation.

Having said that, we are currently seeing people positively engaging with Cisco’s mobile channels; downloading the free videos, ringtones and wallpapers. The marketing objectives for awareness and driving innovation are being met, although huge traffic volumes are not being achieved as yet.

The final thought that needs to be kept in mind when considering results is that you just need to be patient with mobile and generally think of it as a long-term strategy, where outstanding delivery can sometimes take a while to manifest.

What advice would you give to those either starting out or considering running mobile activity?

You need to remember that mobile is a slightly different approach from the traditional digital channels, so you can’t just take the content and functionality from one platform and expect this to work within mobile marketing, you need a different approach.

Firstly, try a pilot site. If you are an international organisation, then research which country has the biggest take up of mobile consumption. You will also need to research what your target audience wants to see from the site in terms of functionality and content. Then create a small mobile site this should be separate to your main site, but still linked, so that search bots can still find and index it. Here are some tips:

1. Content and context matters, so write for the mobile device, and keep it concise and to the point.

2. Remember the device is personal, so messages should be appropriate, concise and timely.

3. Rethink new delivery of old media. New technologies like WiMax mean it’s possible to deliver “old media” (e.g., radio/audio or video) in new ways.

4. Listen to your audiences and give people the opportunity to feedback. Consumer response to mobile marketing has not always been positive, so it is important to tread lightly and use feedback to determine what works.

5. Use the mobile functionality in your campaigns, such asGPS and location-awareness, video, cameras and photos. All these functions can help engagement and awareness.

6. People want to share their experiences so create a mobile campaign that can be easy shared via mobile across these properties.

7. People like to share cool stuff so make it easy for people to send on videos, images and messages to friends and family.

8. When developing apps, think about need and what will make a difference to someone’s lifestyle. Exclusive content and unique offers will help your message get noticed.

9. Integrate your mobile site and campaign with your main marketing strategy, as this increases the effectiveness of your message.

10. People love free stuff; free downloads, special offers, promotions and competitions. Providing a financial incentive will help make them more effective.

What warnings would you advise to look out for when operating in this channel and what kind of challenges do marketers face?

There are so many challenges with mobile; lots of different handsets, many operating systems, and numerous browser types, so the market is fragmented, and it looks like there will not be much convergence either in the future. This is the reason why you need to start with a mobile site to analyse what devices your target audience is using to access your site.

Another challenge has been understanding the best way to use WAP. It has been stigmatised in the past for being less graphically rich and not as robust, but things are changing. If you accept WAP as framework and design with this in mind as opposed to trying to get it to conform to what you want to design.

With these challenges in mind I would advise to keep the site and messaging simple. Don’t over-complicate the mobile site’s navigation and any call to actions should be simple. For example displaying “call now” text and a number, rather than an email form is advisable, as not all devices have a QWERTY keyboard.

You also need to bear in mind that it is also going to be quite difficult to track and measure user-behaviour, as you can’t use cookies with the majority of mobile devices. Do remember to tag your mobile-site for web metrics, though. There are a number of analytical companies that can do this to an extremely high standard.

What can the digital marketing industry as a whole be doing in order to understand mobile methods better and, equally, what should mobile marketers be doing to understand how the channel fits into wider digital marketing?

The digital marketing industry needs to educate marketers on the opportunities and how to building strong mobile strategies and plans. Often, mobile is seen as ticking a check-box and not as an effective communication channel that can be integrated within the digital mix.

Marketers need to understand how to use this channel for acquisition, nurturing and retention: it’s simply just not good enough to have a “me-too” approach and following others blindly. You need to build mobile campaigns that fit into your organisation’s overall marketing strategy and planning.

What kind of developments or innovation do you expect to see in the next twelve months and beyond?

2010 will be an exciting year for mobile, Google is now starting to invest more in mobile with plans to launch its own branded handsets and with its proposed takeover of AdMob, which is still yet to be finalised. Both announcements will improve the awareness of mobile marketing within the marketing community and draw marketers attention to sit up to the fact that mobile is a huge opportunity.

Apple’s iPhone has made some inroads on the optimisation of the mobile channel with its mobile app store, although this is could be seen to be rather niche and aimed more at the consumer pop culture.

More organisations will start to use mobile as part of the infrastructure rather than just mobile marketing. For example, Cisco is trialing the use of QR codes to track products and provide guides and specs instantly, as those products are installed.

I’m also expecting the mobile market to stay fragmented, with more new mobile devices and application stores being developed. However, this may over-complicate the choice for the consumer. Consequently, some organisations will find that their app-development programme will need more investment to cover the market in more depth. With the launch of the new android devices I would expect a huge growth in applications on the Android platform which should close the gap on Apple’s App Store dominance.

Beyond apps, service providers will facilitate the growth of rich media content that is simpler, faster and offers a better user experience. Media publishers will start to experiment with micro-payments, subscription service models and alternative payment methods on mobile sites which has already been highlighted by Rupert Murdoch’s decision to charge for online media content.

Consumers will continue to demand more data services as they enjoy and value their mobile experiences, which will put great pressure on the service providers to provide more data allowances for the same price tariffs. 2010 could see the service providers out-bidding one another on data package allowances, although this will depend on the service provider’s infrastructure.

URL Link to Econsultancy:

http://econsultancy.com/blog/5173-q-a-cisco-s-zoe-sands-talks-about-mobile-marketing

(For more Reuters dealtalks, please double click on DEALTALK/)

STOCKS |  MERGERS & ACQUISITIONS

* Small players seen as targets in coming two years

* YOC, Admarvel, Velti could be snatched up -analysts

By Christoph Steitz and Nicola Leske

FRANKFURT/LONDON, Dec 4 (Reuters) – Google Inc (GOOG.O) prides itself on setting trends and its $750 million buy of mobile advertising group AdMob may be no exception.

A flurry of mergers and acquisitions is on the cards next year in the mobile ad industry as media players are encouraged by Google’s move in their quest for new revenue streams in the fast-growing area. [ID:nN09266163]

Some estimates suggest the market for mobile ads could rocket to $10 billion over the next four years, although expectations vary widely.

Given traditional advertising in mediums such as broadcast television is on the decline, companies such as Microsoft Corp (MSFT.O) and AOL Inc (AOL_w.N) may have to be prepared to pay premiums similar to what Google lavished for AdMob, a company with an estimated annual revenue of just $45 million to $60 million.

Based on that estimate, the acquisition was priced at a multiple of up to 16.7 times sales, the sort of price rarely seen in takeover deals since the heady days of the dot-com boom.

“There will be a period of external growth. You can definitely bet on Microsoft, AOL to make purchases (of mobile ad companies),” Julien Theys, analyst at Screen Digest said.

Players such as unlisted U.S.-based AdMarvel, Millennial Media and Medialets are seen as potential targets, according to Bob Walczak, chief executive of Ringleader Digital, a mobile ad company that has itself received indications of interest.

“There were interesting offers but nothing that our board decided to pursue,” Walczak said, adding venture capital firms were back in the game.

Walczak predicted most of the consolidation will take place in the next two years.

Small players such as Germany’s YOC YOGC.DE and 12Snap as well as Britain’s Velti (VEL.L), which itself acquired Ad Infuse in May, could also be potential targets.

In fact, statements by YOC Chief Executive Dirk Kraus chime with those of Walczak. “It is an open secret that we have been approached on a regular basis by parties that are interested in acquiring us,” Kraus said.

ON THE BACK BURNER

YOC may be particularly interesting, Oppenheim Research analyst Marcus Sander said, as it did not experience the share price rise it had hoped for following the AdMob takeover.

“If you ask me whether or not I was hoping for our share price to rise following Google’s AdMob acquisitions, I say ‘of course’,” said YOC’s Kraus. Since the takeover, YOC’s shares have fallen about 3 percent.

Before consolidation in the sector was put on the back burner because of the global financial crisis and tight advertising budgets, Microsoft and AOL bought ScreenTonic and Third Screen Media, respectively, in May 2007, already betting on a boost in mobile ads with the advent of the iPhone.

Finland’s Nokia Oyj (NOK1V.HE), too, ramped up its mobile ad business with the purchase of Boston-based Enpocket.

The price Google paid for AdMob, however, suggests hopes are higher than previously thought.

“I’m not sure why Google has paid that much for AdMob, but it must be due to their view of the mobile ad’s market growth in the future,” said Oppenheim Research’s Sander.

Some studies on the mobile ad market are particularly bullish, with market research company Heavy Reading putting the global revenue figure for the industry at between $10 billion and $15 billion in 2011, up from $1.4 billion in 2007.

Others are more cautious. Kelsey Group expects mobile ad revenue in the United States to hit $3.1 billion in 2013, while a study by Parks Associates found revenue from mobile ads in Canada and the United States is expected to grow to $1.5 billion in that year.

Either way, most companies in the mobile ad sector are relatively small and any premium would be affordable for big media and IT conglomerates, who will rather buy in than find themselves left out when the market takes off.

“The big companies don’t want to miss the train, which is why further M&A activity is likely,” said Wassili Papas, fund manager at Union Investment.

Whether takeover of mobile ad companies will ultimately pay off in terms of revenue and profits, however, remains a gamble.

Martin Sorrell, chief executive of the world’s top ad agency group WPP Plc (WPP.L), said at the Reuters Global Media Summit: “I think there will be more consolidation in mobile (ads) of course (but) proof of the pudding is in the eating.” (Editing by David Holmes) ((For more on the media summit, click here)) ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; Reuters Messaging: christoph.steitz.reuters.com@reuters.net))

URL Link to Reuters:

http://www.reuters.com/article/idUSGEE5AM1NF20091204

Posted by Justin on Nov 30, 2009

What Google Really Wanted In AdMob Was Its iPhone User-DataThere’s been a lot of speculation as to what plans Google has for AdMob, and why it spent such a large chunk of change to acquire it.  While it’s obviously interested in it’s broad mobile reach in terms of advertising, Google likely had its eye on something else only AdMob has- all that iPhone user-data.

With the onslaught of smartphones in recent years, the complexity has increased dramatically and so has the advertising targeted to them.  AdMob spearheaded the movement to focus on creating unique ways to market to smartphone users, and particularly iPhone users – one of the most advanced and widely-used smartphones around.

By doing so, the company gained massive ground and quickly become a primary force in iPhone-centric mobile advertising.  As the company grew, so did it’s massive collection of iPhone-specific user-data.  This data is very valuable in that it defines how iPhone users interact with various forms of targeted advertising on a very large scale.  Since the iPhone represents a new breed of smartphones and mobile devices in general, this data becomes even more valuable as it can be used to define the methods that work best for targeting new-age smartphones.

Both Google and Apple knew what AdMob had in terms of data, and the implications of harnessing that data.  Apple is becoming increasingly interested in mobile advertising now that it’s a powerful force in the mobile realm, and AdMob could have been a perfect fit, but Google realized the company was even more valuable.

Android is quickly gaining momentum and becoming a well-rounded competitor to the iPhone, and Google can leverage AdMob and it’s wealth of information regarding iPhone-users to make Android the best it can be.  More importantly, Google can leverage the ad-targeting data AdMob collects from iPhone users to determine the best ways to monetize Android in the future- something Apple was interested in too.

AdMob is a big deal in the mobile world, especially a mobile world filled with cutting-edge smartphones that are only getting smarter.  It would have been a big deal if Apple had acquired AdMob and the potential possibilities that would have provided, but it’s an even bigger deal that Google got them first.  It will undoubtedly shape the future of Android.

URL Link:

http://www.mobilemarketingwatch.com/google-wanted-admobs-iphone-user-data-4582/

Consumers expect their mobile Internet experience to be every bit as easy and accessible as it is on their PCs, but this isn’t necessarily the case according to new research from Xiam Technologies.

 by Helen Leggatt

 The survey of over 2,500 U.S. and U.K. mobile Internet users found that 8 out of 10 are frustrated by mobile search capabilities despite 68% of mobile users being dependent on mobile search engines to access content.

Not only do they have difficulty finding online content but they also claim to have to wade through too much “irrelevant information”, found Xiam Technologies’ survey (.pdf), with too much scrolling and clicking required to find what they want.

Content most desired and used is weather-related, followed by maps, social networking, games, music and local/world news. Significantly, respondents said that 27% of the time they were unable to access mobile content. Often this is a result of poor mobile webpage design (too large/small).

Research commissioned by Gomez earlier this year found that a bad mobile experience could turn users off a brand for good, driving them to competitors.

According to the 8-page report (.pdf) “It is clear there are serious consequences for organizations who fail to deliver quality mobile web experiences. The mobile website that fails to perform a transaction at speeds that mimic mobile behavior (e.g., waiting in line, stopped on a sidewalk, or sitting in a bus) or that doesn’t function as intended is unlikely to attract and retain users.”

URL Link to Biz Report:

http://www.bizreport.com/2009/11/8_out_of_10_mobile_internet_users_frustrated_by_search.html

Pamela Clark-DicksonPamela Clark-DicksonPamela Clark-Dickson is a principal analyst at Informa Telecoms & Media.

Google’s wake-up call: We don’t have SMS advertising capability November 23, 2009 Written by Pamela Clark-Dickson.

The mobile industry is buzzing about Internet giant Google’s proposed $750m, all-stock acquisition of mobile advertising network AdMob, which was announced November 9. It is a huge deal, and seemingly an acknowledgement by Google that it has not been able to sufficiently develop its own mobile advertising capabilities internally, even though it has been offering mobile display search advertisements for some time.

Given that rivals Microsoft, AOL and Yahoo all snapped up mobile advertising networks two years ago – Screen Tonic, Third Screen Media and Actionality respectively – it would seem that Google has come a little late to the party. And perhaps its lateness to the market has cost it dearly. The privately-owned, venture-capital-backed AdMob has gone from being a start-up in 2006, to become a leading provider of mobile web display and application display advertising, with an ad serving network that spans 160 countries. According to its latest Mobile Metrics report, AdMob served 10.2 billion advertisements in September 2009 across its footprint. In 64 countries, the company served more than 10 million ads, and in 14 countries, it served more than 100 million ads. That is pretty impressive.

There is no doubt that AdMob has a lot to offer Google: in addition to its extensive network of advertisers and publishers, the company is able to provide its customers with comprehensive data about their mobile advertising campaigns, which it then also anonymizes and aggregates in order to publish a monthly report on its web site. This is the kind of data that the industry desperately needs if mobile advertising is ever to go mainstream.

Still, I am staggered by the sum that Google was prepared to pay to acquire AdMob, especially since as recently as January 2009, AdMob was seeking venture capital investment. The January 2009 round totaled US$12.5 million and in all, AdMob had received $47.2m since inception – or at least, the company had publicly disclosed that it had received that amount of funding. Also, Google itself says, in its FAQ with respect to the deal and regulatory approval: “Currently we do not believe this purchase requires regulatory review outside the United States. AdMob’s business simply is too small.” It’s a somewhat arrogant statement by Google, which also seems to contradict the price that the Internet giant was willing to pay to secure AdMob.

Under the circumstances, it almost goes without saying that AdMob CEO Omar Hamoui is an astute businessman; clearly he is also a skilled negotiator who knows what his company is worth and is not prepared to accept anything less than top dollar, as it were. Google’s CEO Eric Schmidt has reportedly said that the company will buy back $750m in stock once the AdMob acquisition is completed, in order to avoid share dilution. This reportedly first-time share buy-back for Google comes less than a month after Schmidt’s statement in the company’s 3Q09 quarterly earnings call that the company would not ever consider a share buy-back.

AdMob’s investors Sequoia Capital, Accel, Draper Fisher Jurvetson and Northgate Capital must be kicking themselves at this point; they will have made back their meager-looking investments, but nothing else, unless they also agreed some kind of exit deal with AdMob that gave them a share of the profits (or stock in this case) from the sale of the company to Google.

“Yoo-hoo! Over here,” says Google

What is also interesting about Google’s acquisition of AdMob is that Google has highlighted the fact that it currently doesn’t have an offering with regards to SMS advertisements, on a web page detailing its competitors in the mobile advertising market. Just to push the point home about how important it regards SMS advertising from a revenue perspective, Google also publishes a pie chart illustrating that an estimated 55 per cent of mobile advertising budgets in 2009 will be spent on SMS advertising, compared to 25 per cent on applications and web site advertising, and 20 per cent on mobile search. In addition, Google has helpfully provided a list of five players it believes are major players in the SMS advertising market: 4INFO, Cellfire, HipCricket, iLoop Mobile and VeriSign Messaging. Google is already active in the mobile search display market, and has acquired AdMob to provide application and mobile web site advertising, which means that the above players could conceivably be regarded as acquisition targets for Google.

But given the nature of the companies that Google has listed under SMS advertising, it seems that the company’s definition of SMS advertising is broad, and includes all forms of marketing in which SMS is used, not just the relatively nascent market for the insertion of advertisements into the unused characters of a text message. Only one of the five companies that Google has highlighted as players in the SMS advertising market, 4INFO, is operating under this business model. Meanwhile HipCricket, iLoop Mobile and VeriSign Messaging could be regarded as full-service mobile marketing companies, while Cellfire specializes in mobile coupons. All of these companies would, however, use SMS as a delivery channel for mobile marketing campaigns that, for example, include a text-to-win component or an SMS coupon.

While I don’t doubt that Google has considered or is considering one or more of these five companies as an acquisition target, I believe that either 4INFO, iLoop Mobile or HipCricket are probably the best fits for the company, depending on whether Google is going to continue to focus purely on SMS advertising, or whether it enters the mobile marketing industry sector.

If Google continues to focus purely on mobile advertising, then 4INFO is probably the best suited, since it has a lengthy history in inserting advertisements in the unused characters of SMS messages. 4INFO has also secured venture capital from Draper Fisher Jurvetson, one of the companies that funded AdMob.

But if Google is also interested in the wider mobile marketing sector, then either iLoop Mobile or HipCricket is going to suit its needs better. iLoop Mobile has already essentially said “Pick me!” by publishing, almost immediately after the Google/AdMob deal was announced, a landing page on its own web site that highlighted that it sits squarely in the SMS advertising space that Google left vacant on its web page detailing the mobile advertising market. This landing page has since been removed.

I don’t think that either VeriSign Messaging’s Mobile Delivery Gateway mobile content business (the former M-Qube) or Cellfire are in with a chance. VeriSign’s MDG has been up for sale for some time, but had Google been interested I feel that it would have snapped this asset up already, since VeriSign is keen to sell and Google has the cash (or stock) to buy. Meanwhile Cellfire specializes in mobile coupons, and that’s a capability that HipCricket also provides as part of a wider portfolio of services. If Google is interested in mobile marketing, it’s probably going to want to be a full-service provider rather than a niche market player.

But will Google be prepared to pay as much as it did for AdMob for a company (or companies) that will enable it to access a market which, by its own calculations, is much more lucrative than the mobile search, web, and in-application display advertising markets put together? Only time will tell.

 URL Link to Telecoms:

http://www.telecoms.com/16549/googles-wake-up-call-we-don%e2%80%99t-have-sms-advertising-capability

Below is a good analysis I came across on Gerson Lehrman Group website.  It was taken from an article published in the Guardian on the 9th November.
My opinion on this:
I do not entirely agree that focusing on the growth of the mobile web is wrong but I certainly do agree that just focusing on the growth of the mobile web is not the best approach in determining what is going to drive the growth of the mobile advertising industry.
I completely share the view point as commented below, quote ”will be driven by a deep understanding of the mobile consumer’s context not just by the mobile web”.   More understanding of the context of the consumer must be understood in order to produce concise relevant pieces of content that are specific to the needs demanded at any given time.  If we get this fundamental principle right then we will be on the right track and not follow the old footpath of online.  What do I mean by this?  I am not an online expert by all means but I am a heavy user of the web.  I see far too many ads that are so irrelevant to my needs.  This negative and at times somewhat quite annoying experience has now led to me conditioning myself to completely ignore ads on the fixed line web.  It is almost like they are not there.  We must not allow this to happen in mobile, especially if we are to maintain healthy CTRs and ROI for the advertisers.
For sure, we need much more growth in traffic, we need better developed ad-servers, we need better standardisation, we need richer devices, we need better understanding within the agencies and brand managers.  However, we must look beyond the all too easy areas where we can raise alarms bells.  Most importantly it comes down to the user experience.  If we get the user experience right, the advertisement will be embraced with open arms.  Showing the right message, at the right time, with relevant content in the preferred way will lead to the growth of the mobile advertising industry.   It is the people at the end of the device that will drive the growth.  Not the agencies, not the technology, not even the brands or the Googles.  It is me, you, your next door neighbour and every single one of us.  We don’t care if it is an iphone, Blackberry or Nokia.  We don’t care if it is a banner, text link or video pre-roll.  We buy into the experience. We prefer one experience over another experience.  If we get this right and place the message (in whatever format it comes) in this preferred environment then the results can be magic for everyone.
Article

Summary

Mobile advertising is set to soar but only if all mobile channels are used and the combination of enabling technology, analytics and advertiser mindset is focused on identifying the exact context of the consumer before ads are served.

Analyses are solely the work of the authors and have not been edited or endorsed by GLG.

Analysis

The article is taken from London based Guardian Newspaper in a special report, “Mobile Marketing” published on 9th November 2009. This was sponsored by The Internet Advisory Bureau (IAB), Velti and Orange. Other stories within the same report discussed the simplicity of texting, the appeal of mobile applications and the growing relevance of location awareness.

Even with all of the hype surrounding mobile advertising, it is starting from a relatively low base. The IAB reports 2008 UK spend on mobile advertising at just ₤28.6M, which itself represented a growth of 90% on the previous year. A 100% year-on-year growth is not too difficult to predict when 2009 figures are reported. Google’s recent acquisition of AdMob will certainly add to this rate of growth during 2010 as brands, advertisers and agencies leverage what is a huge endorsement of the mobile advertising industry.

That the project to determine an accurate method to measure mobile web traffic might somehow have a major impact on the industry is questionable. Whilst the GSMA working in collaboration with the UK’s big five operators to achieve this was the right way to go, the results are late. The GSMA are behind the curve on this after all, the lack of metrics has not stopped AdMob from serving billions of mobile ad impressions. Further more other specialist companies such as Bango for example, are already providing such tools.

But what about the rest of the advertising industry and their involvement in the mobile web?  For the brands, advertisers and agencies involved, focusing on the mobile web as the growth engine for mobile advertising is wrong. The tendency is still to treat the mobile web as a scaled down version of the internet. Mobile’s smaller screen and personal nature mean that it needs to be treated much more preciously that that. Ads served on the basis of what a consumer is browsing or what they are searching for will be hit-and-miss without tools that can accurately determine the context of the mobile consumers. Serving incorrectly targeted ads, even to consumers that have ‘opted-in’, will do much to damage brand values. The location, time of day and personal preferences of the consumer are key elements of that context and once it is available, there might be other more appropriate channels over which to advertise.  SMS, MMS, mobile video and mobile apps all support advertising.

Ultimately growth in mobile advertising will be rapid but it will come from being able to address consumers across any one of, or combination of all, the mobile channels available and will be driven by a deep understanding of the mobile consumer’s context not just by the mobile web.

URL Link to Gerson Lehrman Group website:

http://www.glgroup.com/News/Mobile-Advertising-Set-To-Soar—Yes-But-What-Is-The-Engine-For-Growth-44869.html