| 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!
|