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Mobile Advertising and Marketing 2009-2014

July 2009 148 Pages

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 Research
Operators in the Europe and the US are currently either testing various forms of advertising with 3G services or are allowing ads to be served on their portals. A number of multimedia companies have already launched mobile advertising offerings, and several ad-funded MVNOs in Europe and the US in 2007 have generated significant interest, and will become an important revenue source within the next five years.


The global economy will recover but how soon, and what mobile advertising firms will be left when the upturn happens? As with any recession, advertising is hit strongly, but mobile advertising revenues correlate well with the beginning of Internet advertising so the potential still remain enormous and viable. As the global economy embarks on an inevitable recovery after its most serious setback in generations, new sectors are emerging stronger in terms of growth potential, with mobile advertising and marketing prominent among them. Even during periods of contraction for the overall advertising industry through 2008 and 2009, spending on advertising through the mobile channel is demonstrating counter-cyclical resilience. 

The increasing availability of multimedia content is opening a large opportunity for sophisticated forms of mobile advertising. As content that already incorporates advertising - like live TV programming - makes its way to mobile handsets, brands and entertainment content providers seeing the value of presenting full multimedia ads with programs. 

From 2007 when the growing market garnered just over $7 billion on a global basis, we believe mobile marketing and advertising in these two geographical areas will grow to over $30 billion in 2014. Issues to be resolved include business models and revenue share, the type, length and frequency of ads, consumer attitudes and many others. Operators will have to walk a fine line between maximising the revenue potential of advertising, while at the same time not risk alienating subscribers and increasing churn by doing so. 

Based on interviews with key participants across the value chain, including operators, media agencies, software application providers, access providers, marketing specialists and trade association representatives, this 140+ page report analyses the market drivers and barriers affecting mobile advertising and marketing. It discusses the main market trends and charts the market evolution in the US and Europe. The report examines mobile advertising opportunities presented by MMS, video, TV, LBS, contextual advertising, as well as other niche possibilities. 

Reading this exclusive management report will tell you the following:

* Who are the main players in mobile advertising and what are they doing?

* What different forms of advertising are available and expected to appear in the future?

* How does mobile advertising compare to online and traditional media?

* Why is advertising so important to mobile?

* When will advertising start to make significant traction in the market? When will it become a mass market proposition?

* How successful will it be?

* How can operators and other companies in the value chain best position themselves?

 

Plus other key questions answered such as:

- What % of brand advertising and marketing budgets will go on the mobile channel by 2014 and what will be the associated revenues?

- Where are the biggest market opportunities?

- What advertising models exist and which ones will account for the biggest market?

- What types of mobile advertising are most likely to succeed? 

Operators in the Europe and the US are currently either testing various forms of advertising with 3G services or are allowing ads to be served on their portals. A number of multimedia companies have already launched mobile advertising offerings, and several ad-funded MVNOs in Europe and the US in 2007 have generated significant interest, and will become an important revenue source within the next five years.


Table of Contents

1. Executive Summary

1.1. New Content and Technologies Are Enabling Mobile Multimedia Advertising

1.2. Cost Elimination Potential

1.3. Who Controls The Channel?

1.4. Market Trends

1.5. Challenges and Issues To Consider 

2. Introduction

2.1. The Emergence of Mobile Marketing and Advertising

2.2. Technology to the Rescue

2.3. New Opportunities for Brands and Entertainment

            2.3.1. Decline in Ad Spend

            2.3.2. New Media Also Suffering

2.4. Shift to Mobile

2.5. Opt-in vs. Opt-out

2.6. Focus and Objectives of the Report 

3. Strategic Overview

3.1. Mobile Phone Usage

            3.1.1. Handset Upgrades

3.2. Increased Mobile Data Usage

            3.2.1. Barriers to Mobile Data Usage

            3.2.2. Improved Viewing

                        3.2.2.1. Increased Smartphone Usage

3.3. Mobile Marketing Association

            3.3.1. Advertising Guidelines

3.4. Types of Mobile Advertising

            3.4.1. SMS

                        3.4.1.1. Why is SMS Important?

            3.4.2. Premium SMS

                        3.4.2.1. Short Codes

            3.4.3. MMS

            3.4.4. Banner

            3.4.5. Competitions

            3.4.6. Coupons

                        3.4.6.1. Mobile Coupons Prove Popular

                        3.4.6.2. When to Use Coupon and Rebate Strategies?

            3.4.7. Mobile Web

                        3.4.7.1. Increased Opportunities Through Greater Usage

            3.4.8. TV and Video

                        3.4.8.1. Mobile TV and Video Standards

                                    3.4.8.1.1. DVB and DVB-like

                                    3.4.8.1.2. Mobile Video Streaming (Unicast and Multicast)

                        3.4.8.2. TV/Video Advertising Guidelines

                        3.4.8.3. Acceptance of Advertisements in Order to Receive Content

                        3.4.8.4. Steady Increase in Mobile Video Ad

            3.4.9. Mobile Apps

                        3.4.9.1. Apple App Store

                                    3.4.9.1.1. Branded App and In-Application Advertising Examples

                        3.4.9.2. Nokia Ovi Store

            3.4.10. Other Forms of Advertising

                        3.4.10.1. Audio

                        3.4.10.2. Bluetooth

                                    3.4.10.2.1. Where can Bluetooth Advertising be Utilised?

                        3.4.10.3. Mobile Gaming

                        3.4.10.4. Mobisodes

3.5. Strategy Conclusion 

4. Market Analysis

4.1. From Voice to Rich Media

4.2. The Mobile Channel

            4.2.1. Acceptance of Mobile as an Advertising Method

            4.2.2. Building Trust

            4.2.3. More Successful Than Other Forms of Advertising

4.3. Mobile Advertising Market Drivers

            4.3.1. Barriers to Mobile Advertising

4.4. Location Based Advertising

            4.4.1. How Are LBS Provided?

                        4.4.1.1. Radiolocation

                                    4.4.1.1.1. Through Base Stations

                                    4.4.1.1.2. Triangulation

                        4.4.1.2. GPS

                                    4.4.1.2.1. A-GPS

                                    4.4.1.2.2. Increasing Usage Around The World

            4.4.2. Drivers to LBA

            4.4.3. Barriers to LBA

            4.4.4. LBA Advantages

            4.4.5. Current Market for Mobile LBA

            4.4.6. LBS Revenue

            4.4.7. Will LBA Succeed in the Future?

4.5. Mobile TV Advertising

            4.5.1. Mobile Increasingly More Attractive Than TV

            4.5.2. Advertising on Mobile TV vs. Regular TV

            4.5.3. How Will Mobile TV Advertising Work?

4.6. Impact of Mobile Social Networking

4.7. Adult Content

            4.7.1. New Adult Content Advertising Possibilities in US?

            4.7.2. Positive Outlook for Advertisers

4.8. Which Technology is Most Promising for Advertisers?

            4.8.1. Advertising Recall

            4.8.2. Mobile Advertising Click Through Rates

            4.8.3. Dolce & Gabbana Success

4.9. Regulations in Mobile Advertising

            4.9.1. Europe

            4.9.2. USA

4.10. Demographics

            4.10.1. Targeting the Right Product, Advertising Towards the Right Age Group

4.11. Revenue Sharing and Billing

            4.11.1. Technology Service Billing

4.12. How Will Mobile Advertising Evolve?

            4.12.1. Tried and Trusted

            4.12.2. Tentative First Steps

4.13. Market Analysis Conclusions 

5. Agencies, Enablers and Developers Case Studies

5.1. BuzzCity

            5.1.1. Economic Conditions Encouraging Advertisers

            5.1.2. White Label Mobile Advertising Solution

5.2. Flytxt

            5.2.1. Neon

                        5.2.1.1. Reliance Implementation

5.3. Sybase 365

            5.3.1. Sybase 365 Mobile Advertising Solutions

                        5.3.1.1. SMS Ad Exchange

                        5.3.1.2. Digby/1-800-Flowers

5.4. North American Marketing, Media, Access and Platform Companies

            5.4.1. Air2Web

                        5.4.1.1. Marketing Solutions

                                    5.4.1.1.1. AirCARE

                                    5.4.1.1.2. CampaignPro

                                                5.4.1.1.2.1. CampaignPro (MMSS)

                                    5.4.1.1.3. DirectTEXT

                        5.4.1.2. Dominos Pizza

            5.4.2. AdMob

                        5.4.2.1. Adidas

                        5.4.2.2. Resistance 2

                        5.4.2.3. Toshiba

            5.4.3. Amobee

            5.4.4. g8wave

                        5.4.4.1. Products

                                    5.4.4.1.1. Live-Text

                                    5.4.4.1.2. WAP

                        5.4.4.2. Blink TV and Girls Aloud Competition

            5.4.5. ipsh!

            5.4.6. Nextcode

            5.4.7. NeoMedia/Gaviteq

                        5.4.7.1. Barcodes

                                    5.4.7.1.1. NeoReader

                                    5.4.7.1.2. NeoSphere

                        5.4.7.2. Ticketing and Couponing

            5.4.8. Soapbox Mobile

            5.4.9. Vibes

                        5.4.9.1. Coca Cola

                        5.4.9.2. Warner Brothers

                        5.4.9.3. Pittsburgh Penguins

            5.4.10. We Love Mobile

                        5.4.10.1. EQO

5.5. European Marketing, Media, Access and Platform Companies

            5.5.1. 2ergo

                        5.5.1.1. 2ergo Engage

                        5.5.1.2. National Geographic Channel

                        5.5.1.3. Phones4U

                        5.5.1.4. The Mummy 3

            5.5.2. 12snap

                        5.5.2.1. Reaction to Mobile Usage Trends

            5.5.3. ActiveMedia Technology

                        5.5.3.1. Product Areas

                        5.5.3.2. Blockbuster

                        5.5.3.3. Singapore Tourism Board

            5.5.4. Mobiento

                        5.5.4.1. H&M

                        5.5.4.2. Snickers

                        5.5.4.3. Sprite

            5.5.5. Mojiva

            5.5.6. Mirada

                        5.5.6.1. Mirada Touch

                                    5.5.6.1.1. Nestlé Kit Kat

                                    5.5.6.1.2. Budweiser

                                    5.5.6.1.3. Carling

                                    5.5.6.1.4. Britvic

                        5.5.6.2. Reaction to Mobile Usage Trends

5.6. Agencies, Enablers and Developers Conclusions 

6. Operators, Manufacturers, Service Providers and Specific Mobile Advertising Types

6.1. Operators

            6.1.1. 3

                        6.1.1.1. Setting Mobile Advertising Examples

                        6.1.1.2. Yahoo! Portal Deal

                        6.1.1.3. 4th Screen and Mobix Interactive Video Ads Deal

                        6.1.1.4. 3 Denmark and JumpTap

            6.1.2. Blyk

                        6.1.2.1. Limitations of Blyk?

            6.1.3. O2/Telefónica

                        6.1.3.1. Media Business

                        6.1.3.2. Global Mobile Advertising Alliance

                                    6.1.3.2.1. Fitness First Campaign

            6.1.4. Orange

                        6.1.4.1. Mobile Study is Positive for Advertising

                        6.1.4.2. SMS Ad Trial

            6.1.5. T-Mobile

                        6.1.5.1. Ad-funded Gaming

            6.1.6. Vodafone

                        6.1.6.1. Cautious Approach Needed?

                        6.1.6.2. Global Framework Agreement

                        6.1.6.3. Successful Roll-out of Mobile Advertising Services

                        6.1.6.4. Abandon Yahoo! Model

6.2. Manufacturers

            6.2.1. Apple

            6.2.2. Nokia

                        6.2.2.1. Nokia Media Network

                        6.2.2.2. Nokia Interactive Solutions

                        6.2.2.3. Nokia Advertising Alliance

                                    6.2.2.3.1. Ford iKool - India

                                    6.2.2.3.2. Coca-Cola Zero Studio - Brazil

6.3. Service Providers

            6.3.1. Google

                        6.3.1.1. Mobile AdWords

                        6.3.1.2. AdWords for iPhone and Android

            6.3.2. Microsoft

                        6.3.2.1. Opportunities With Microsoft Advertising

                                    6.3.2.1.1. MSN Mobile

                                    6.3.2.1.2. Windows Live for Mobile

                                    6.3.2.1.3. Bing

                                    6.3.2.1.4. Two-Screen MSN Home Page

                        6.3.2.2. Enhancing Advertising Potential

            6.3.3. Yahoo!

                        6.3.3.1. Yahoo! Mobile Advertising Solutions

                                    6.3.3.1.1. Smart Ads

                                                6.3.3.1.1.1. Boost to Mobile Ad Services Through Addition of Third Party Vendors

6.4. Companies and Case Studies by Specific Advertising Type

            6.4.1. Bluetooth

                        6.4.1.1. Sports Usage

                        6.4.1.2. T-Mobile Proximity Marketing

            6.4.2. Location Based Advertising

                        6.4.2.1. 1020 Placecast

                                    6.4.2.1.1. Alcatel-Lucent Deal

                                    6.4.2.1.2. Joined Forces With Useful Networks

                        6.4.2.2. SquareLoop

                        6.4.2.3. Useful Networks

                                    6.4.2.3.1. Burger King

                                    6.4.2.3.2. Subaru

                        6.4.2.4. Vodafone and Wayfinder

            6.4.3. Mobile Audio

                        6.4.3.1. Adfortel

                        6.4.3.2. MobiMogul

                                    6.4.3.2.1. AdTones

            6.4.4. Mobile Coupons

                        6.4.4.1. Eagle Eye Solutions

            6.4.5. Mobile Gaming

                        6.4.5.1. Telescope

                        6.4.5.1.1. Monopoly at McDonalds

6.5. Chapter Conclusions 

7. Strategies for Success

7.1. Quality Rather Than Quantity

7.2. Co-ordinate With Other Channels

7.3. Recognise the Channels Unique Features

7.4. Timelines and Context Awareness

7.5. Relevance

7.6. Value

7.7. Opt-in Only

7.8. Smartphone Ads to be More Successful?

7.9. Free Content Encourages Ad Viewing

7.10. Success Factors for Mobile Advertising 

8. Conclusions and Recommendations

8.1. Conclusions

            8.1.1. Why is Mobile Advertising More Effective Than Other Methods?

                        8.1.1.1. More Cost Effective

                        8.1.1.2. Higher CTR

            8.1.2. Handset Technology Increasing Effectiveness

            8.1.3. What Will Be Successful In The Future?

            8.1.4. Consider the Market

            8.1.5. Ad Spend

8.2. Recommendations  

List of Tables, Charts & Figures in report

Chart 2.1: US Newspaper Ad Sales, Q1 2006-Q1 2009

Chart 2.2: Top 10 US Advertisers Q1 2009, by Ad Spending (TV, Print and Online Display Ads)

Chart 2.3: UK Ad Spend Growth 2007-2008

Chart 2.4: US Ad Spend Growth 2009-2014

Chart 3.1: Mobile Data Traffic by Geography, 2009-2014

Table 3.1: Mobile Data Traffic by Geography, 2009-2014

Chart 3.2: World Smartphone Usage, 2009-2014

Chart 3.3: UK MMS Usage, 2007-2008

Chart 3.4: US Mobile Web Usage, Feb 2007-Feb 2009

Table 3.1: MMA TV/Video Advertising Units Guidelines

Chart 3.5: "Would you be willing to watch a short targeted advertisement on your mobile device in order to have free access to mobile TV and video content?"

Chart 3.6: "Have You Viewed Ads on Your Mobile Device?"

Figure 3.1: Chanel Mobile App

Chart 3.7: Attitude Towards Dialtone Ads Without Incentives

Chart 3.8: Attitude Towards Dialtone Ads With Incentives

Figure 4.1: Mobile Phone Triangulation

Chart 4.1: Worldwide GPS-embedded Handset Shipments, 2009-2014

Table 4.1: Advantages of LBA

Chart 4.2: LBS Revenues, 2009-2014

Chart 4.3: Ages of Best Mobile Ad Recall

Chart 4.4: Mobile Adult Content Revenue, 2009-2014

Chart 4.5: Mobile Advertising Recall Rates

Table 4.2 : Mobile Advertising CTR, Selected Countries in Europe, Oct-Dec 2008

Chart 4.6: US Awareness of Mobile Advertising, Q4 2008

Chart 4.7: US SMS Usage, February 2009

Table 5.1: BuzzCity Top 10 Advertising Countries by Banners Delivered, April 2009

Figure 5.1: AdMob Adidas Superstars Campaign Screenshot

Figure 5.2: AdMob Adidas Superstars Campaign Statistics

Figure 5.3: AdMob Resistance 2 Campaign Statistics

Table 5.2 : Nextcode Partners

Figure 5.4: Papa John's NeoReader Campaign

Table 5.3: Soapbox Mobile Clients

Table 5.4: 2ergo Engage Mobile Marketing Types

Table 5.5: 12snap Statistics

Table 6.1: Blyk Brands and Response Rates

Table 6.2: Blyk Partners

Table 6.4: Advertising Offered by Vodafone Local Operating Companies

Table 6.5: Countries With Google Mobile Ads Availability

Figure 6.1: AdWords Ad Types

Figure 6.2: Windows Live for Mobile Screenshot

Figure 6.3: Yahoo Mobile Phone Usage Model

Table 6.6: Bluepod Media British Football Marketing

Figure 6.4: 1020 Placecast Nike Advertising Screenshot

Chart 7.1: US Q1 2009 Ad Recall Rates

Table 7.1: Factors for Effective Mobile Advertising Campaigns

Chart 8.1: Online Advertising CTR vs. Mobile Advertising CTR

Table 8.1: Global Ad Spend, 2009-2014 (Selected Formats)

Chart 8.2: Mobile Messaging Ad Spend, 2009-2014

Chart 8.3: Mobile Display and Mobile Search Ad Spend, 2009-2014

Chart 8.4: Overall Global Mobile Ad Spend, 2009-2014 

Companies & Organistations listed in report

3

1020 Placecast

12snap

1-800-Flowers

2ergo

4th Screen

ActiveMedia

Adfortel

Adidas

AdMob

Air2Web

Airtel

Alcatel-Lucent

Amobee

Amp'd Mobile

AOL

Apple

ASA

AT&T

BASE

Bebo

Best Buy Co

Blink TV

Blockbuster

Bluepod Media

Blyk

Boots

Brightkite

Britvic

Budweiser

Buongiorno

Burger King

BuzzCity

Carling

Cellufun

Chanel

Coca Cola

Crisp Wireless

Critical Mas

Deutshe

Digby

Digistores

DMA

Dolce & Gabbana

Dominos Pizza

Dynetec

Eagle Eye Solutions

eBay

EQO

ESPN

Facebook

FCC

Fitness First

FIVE

Flytxt

Ford

Fox

FSA

FTC

g8wave

General Electric

General Motors

Google

H&M

Hypertag

iPorn

ipsh!

Johnson & Johnson

JumpTap

Levis

Limbo

Logicalis

L'Oreal

Lucozade

McDonalds

MDA

Mediaedge

Menuism

Microsoft

MindShare

Mirada

MITRE Corporation

MMA

Mobiento

MobiMogul

Mobiqa

Mobistar

MobiTV

Mobix Interactive

Mojiva

MySpace

National Geographic Channel

NeoMedia

Nestlé

News Corp.

Nextcode

Nike

NME

Nokia

O2

OFTEL

Orange

Papa John's

Penguin Books

Penthouse

PETCO

Phonepay Plus

Phones4U

Pittsburgh Penguins

Playboy

PornHub

Proctor & Gamble

Qpass

Qualcomm

Reliance

Rhythm NewMedia

RIM

RSPCA

Saturn

Screen Tonic

Sky

Soapbox Mobile

Sony BMG

Sony Playstation

Sprint Nextel

Sprite

SquareLoop

Subaru

Sybase 365

Telefónica

Telescope

Teracent

Time Warner

TMN

T-Mobile

Toshiba

Tumri

Uniqlo

Universal Pictures

USA Today

Useful Networks

Verizon

Vibes

Vivid

Vodafone

Walt Disney

Warner Brothers

Wayfinder

We Love Mobile

WKD

Yahoo!






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