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Entries categorized as ‘Mobile Ad Spend’

Percentage of Mobile Spend in the Digital Landscape

November 28, 2009 · Leave a Comment

via Mobile Marketing Watch

Mobile to Account for 11.7% of Digital Ad Spend in 2014

Around the world, mobile marketing spend is growing. A new report from Sweedish analyst firm Berg Insight predicts that the total value of the global mobile marketing and advertising market will grow from € 1.0 billion in 2008 at a compound annual growth rate (CAGR) of 43 percent to € 8.7 billion in 2014.

The growth in mobile marketing worldwide will correspond to 11.7 of the total digital advertising market, says the report. Much of that growth could come from the expanding Asia Pacific sector, which Berg revealed accounted for around 75 per cent of spend on mobile marketing last year.

“Advertisers are increasingly aware of the opportunities and seek new ways to exploit them,” said Marcus Persson, telecom analyst at Berg Insight, in a statement.

Berg Insight, in the report, anticipates that there will be increasing convergence between traditional web and mobile advertising as the PC and mobile technological capabilities will come to merge. The most likely result of such a development is the formation of a few dominant digital advertising networks spanning all types of devices.

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At what stage is mobile video advertising?

November 20, 2009 · Leave a Comment

via: MediaPost

Mobile Video Advertising: The Awkward Teen Years

Newly gold-plated by Google, mobile network AdMob got us all thinking about mobile video advertising this week. The company announced a video ad unit that is promising more interactive bells, whistles and gee-whizzes than the content it is made to underwrite. Which is fine, I guess, if you can find advertisers willing to craft creative to fill these unique attributes.

For the time being, mobile video advertising is at that strange teen stage where it is starting to look like a recognizable grown-up. Smart/App phone technologies and 3G speeds are making the experience truly viable. Content is pouring into Sprint TV and most of the TV-fueled apps. Only a year ago, advertisers were hard to spot in all that fallow inventory. Now, honestly, there is probably too much mobile video advertising in the random sampling I took the other day. Like a teen, mobile video looks almost adult, until it opens its mouth. Then you realize it still has a long way to go and lots to figure out.

The same malady that continues to plague the video Web, repurposed TV spots, is also commonplace on mobile. Actually I am not a knee-jerk enemy of repurposed TV ads. I think they can reinforce ads seen on other platforms and achieve something like a surround-sound effect. But the creative has to be really good, and it really works best when the digital ad iterates somehow on the TV experience.

Still, when it comes to reusing TV video, the results are sometimes worse on mobile than on the Web. Agencies should think two or three times before slapping their :15 spot in front of a clip. I saw one Smirnoff ad on AMC’s iPhone app, and even with the great iPhone screen, the scenes were far too dim and flat to render passably. I am pretty sure the ad involved a bunch of youths on their way into some ancient underground sewer system. I heard from the ads that “the acoustics were amazing” — but apparently no one thought to bring a light. Somebody please test this stuff!

And while I am whining, we need to frequency-cap ad serving. AMC and TMZ’s apps use the same Rhythm New Media network. I guess it s a good sign that the video engine here is selling so much of its inventory, but an ad on each and every clip? The content-to-ad ratio gets kicked into low single digits at some point. I understand that repurposing is a blight on Web video as well, but on mobile it gets excruciating. If a viewer is already familiar with the ad, then he knows precisely how long he will have to wait and wait to get to his content. My experience is that anything that already irritates us about the Web only gets amplified on mobile.

On the plus side, Rhythm still has the most adroit video player I have seen on mobile and this actually makes the video ads more palatable. Tap the “I” information button on the ad and you can go to a pop-up microsite but stay within the app. You can see the videos that are in queue so the engine always telegraphs what is coming next. Minimizing surprises is an often-overlooked mobile content value.

AdMob’s new video ad units are not technically the first interactive video ads on the platform, since I have been interacting with Rhythm New Media’s ads for a while. But AdMob is promising customizable action buttons and auto-play formats that can work as interstitials outside of the usual pre-roll contexts.

read full article here.

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Apple’s plan for mobile advertising

November 18, 2009 · Leave a Comment

via: Mobile Marketing Watch

Speculation is rampant on the heels of some surprising moves by Apple in recent months regarding a secret interest in mobile advertising.

A patent application filed by Apple a few months ago finally made its way into the public eye, and it’s contents signal a possible shift in the way Apple could monetize its hardware and software products in the future.  The patent outlines what the company calls “enforcement routine” software, or in other words, a means for Apple to integrate advertising into its products that users couldn’t skip.

The patent even outlines the fact that consumers would have to verify that they’ve watched or listened to an advertisement before gaining access to the functionality of the hardware.  For example, a user couldn’t access their iPod until they’ve successfully watched the required advertising and pushed a series of buttons to verify to the device that the ads have been watched in their entirety.

Beyond the ambiguity surrounding the patent application, it’s come out recently that Apple did indeed talk to AdMob about a possible acquisition before it was snapped up by Google.  Sources close to the company have revealed that it wasn’t only AdMob that Apple had its sights set on, but that it’s “talking to everyone” in mobile advertising about potential deals.

The fact that Apple is gaining interest in mobile advertising, combined with its recent patent application, signal the possibility of Apple introducing ad-supported hardware in the future.  If the company could subsidize its historically high-end products with advertising, drastically reduced prices or even free hardware could easily be a possibility.

The iPhone is a prime example.  It’s no secret that iPhone users prefer free apps to paid apps – around 9-to-1 to be exact – and a majority of those apps are monetized via in-app advertising.  Apple has undoubtedly taken notice of the success and revenue being generated by this model, and could be taking steps to get in on the action itself.  Since AdMob is the undisputed leader in iPhone app monetization, it makes perfect sense that Apple had a key interest in the company and its technology.

If Apple were to introduce integrated advertising into the iPhone, and make the ads un-skippable and verifiable, it could potentially offer a very-low priced iPhone alternative, or even a completely free iPhone.  Instead of generating revenue via one-time hardware sales, Apple could potentially make recurring revenue from each user via on-going advertising that would equate to much more than the original $200-$400 per device they sell today.

It doesn’t stop there, Apple could use this model to subsidize the cost of iPods, OSs and even the highly anticipated Apple Tablet that’s due out in the near future.  While this is all still speculation, it would make a lot of sense, and give Apple a completely different business model to build upon- one that has proved very successful for other certain (Google) companies.

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Projected Mobile Advertising Spend

October 16, 2009 · Leave a Comment

fonegigsblog

What are Mobile Advertising Revenue projections?

It’s hard to believe what analysts say. Last year (2008) there was a study that said mobile ad revenue will grow to more than $10 billion by 2013 according to Heavy Reading.

In Feb-09, The Kelsey Group forecasts mobile ad revenue to grow to $3.1 billion by 2013.

Most recently, Research and Markets projected that spending on mobile advertising will reach $1.56 billion by 2013.

Is it me or are these projections getting smaller and smaller?

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