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Mobile Advertising and Marketing - 7th Edition


News provided by

Reportlinker

Dec 26, 2013, 09:29 ET

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NEW YORK, Dec. 26, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Mobile Advertising and Marketing – 7th Edition

http://www.reportlinker.com/p0165499/Mobile-Advertising-and-Marketing-–-7th-Edition.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Online_Advertising

There are more than 6.5 billion active mobile subscriptions across the globe, which can be compared with about 2.7 billion Internet users. This underpins the vast potential of the mobile channel for advertising and marketing, being highly important for brands seeking to engage in communication with present and potential customers. Berg Insight estimates that the total value of the global mobile marketing and advertising market was € 6.9 billion in 2012, having experienced strong growth in the fluctuating financial climate in recent years. Growing at a compound annual growth rate of 26.2 percent, the market is forecasted to be worth € 27.9 billion in 2018 – corresponding to 19.3 percent of the total digital ad market. Mobile advertising is at the same time predicted to account for 5.9 percent of the total global ad spend for all media. This resonates well with the continuously increasing share of time which people spend on the mobile channel at the expense of traditional media consumption. The mobile media has several especially useful characteristics from a marketing perspective.

First of all, most people have a mobile handset, making reach unmatched. Mobile handsets have become increasingly advanced, making it possible to deliver highly compelling advertising experiences incorporating rich media, video and interactive content. Even more importantly, handsets are extremely personal devices which people tend to always have within reach and most often switched on. This enables unique marketing possibilities which other channels lack. Consumers can be reached at all times and in all places, which makes the channel stand out of the crowd. The personal nature of the devices makes it possible to deliver messages which are highly relevant for the recipient, taking into consideration demographics, interests, context, behaviour and other preferences. Marketing messages that have gone through such a personalisation process are bound to be much more effective in fostering brand engagement and driving purchase intent. The ROI of such initiatives can be substantially better compared with intrusive campaigns where all consumers are flooded with the same non-personalised message. The mobile channel can in this way avoid the pitfall of unsolicited communication and capture an important role in next-generation marketing.

For several years, mobile media was claimed to be on the verge of entering the array of main media channels for marketing. During the last few years, advertisers have increasingly left the experimental stage and started to deliver full-scale campaigns. Advertisers include blue chip companies and to an increasing extent also SMBs. Exposure through multiple channels – digital as well as traditional – has proven to yield better results and higher engagement than when channels are used in isolation. The mobile channel for example offers great possibilities for multiscreen advertising combining TV commercials with mobile engagement. It is also possible to use mobile marketing to add interactive components to campaigns spanning print media such as newspapers and magazines as well as out-of-home marketing.

Numerous actors are engaging in activities related to mobile marketing, including large players from the digital industry. Google has captured an important position, offering a range of mobile advertising alternatives such as mobile search ads, display advertising and video ads on YouTube. Apple is further seeking to gain market shares with the iAd platform for inapp advertising. Microsoft and Yahoo! are additional digital players placing increased focus on the mobile channel. Facebook has moreover emerged as an important newcomer and is now generating half of its advertising revenues from mobile devices. Several operators including AT&T, Orange, SFR and the UK joint venture Weve are also active in mobile marketing. Leading specialised mobile marketing players further include InMobi, Smaato, Nexage, Madvertise, Amobee and Millennial Media which acquired Jumptap in 2013. There are a number of key takeaways from the latest developments in mobile marketing.

Mobile marketing is strengthening its position in the marketing media mix as smartphones are becoming ubiquitous and drive mobile media usage. Advertisers however need to refine their marketing strategies to integrate the mobile channel. Branded applications have proven to provide great consumer engagement and mobile web presence has also surfaced as a musthave among brands. Video and rich media are examples of state-of-the-art ad formats, but the potential of less sophisticated alternatives such as opt-in SMS programs is still substantial, not the least due to an unprecedented reach. The integration of locationsensitivity across all formats is moreover increasing, though hyperlocal advertising remains a nascent niche. Real-time bidding has furthermore started to take off on a large scale on the mobile channel. Finally, Berg Insight expects that the underinvestment in mobile marketing will diminish in the upcoming years.

This report will allow you to:

• Identify tomorrow's most profitable advertising opportunities in the mobile space.
• Understand the fundamentals of the ad-based mobile media revenue models.
• Recognise the key enablers of growth in the mobile advertising market.
• Comprehend the relative importance of digital channels compared to other advertising media.
• Learn about the experiences of mobile marketing campaigns by top global brands.
• Profit from valuable insights about ad-funded business models for mobile operators.

This report answers the following questions:

• How should mobile handsets be integrated in the marketing media mix?
• What developments in the mobile industry and end-user behaviour are required for mobile advertising to keep growing as a multi-billion euro market?
• How are Apple, Google, Facebook and Yahoo! positioning themselves to become leading mobile advertising players?
• Who are the rising stars that stand out from the crowd among the mobile advertising and marketing companies?
• What are the experiences from mobile marketing campaigns so far?
• What implications does mobile advertising bring for operators?
• What is the distribution of mobile advertising expenditures across formats in different regions?
• Which advertising formats will become most successful in the mobile environment?
• In what ways can location technology improve the relevance of mobile advertising?

Who should buy this report?

Mobile Advertising and Marketing is the foremost source of information about the status, future trends and technology developments on this market. Whether you are a telecom vendor, mobile operator, advertising agency, investor, consultant or application developer, you will gain valuable insights from our in-depth research

Table of Contents

Table of Contents i
List of Figures vi
Executive summary 1

1 Advertising and digital media 3

1.1 The marketing and advertising industry 3
1.1.1 Global advertising expenditure 3
1.1.2 Advertising expenditure by media 5
1.1.3 Top 20 global advertisers 6
1.1.4 Marketing industry players 7
1.2 The Internet media channel 8
1.2.1 Internet usage trends 8
1.2.2 Internet advertising expenditure 10
1.2.3 Internet advertising formats 13
1.3 The mobile media channel 15
1.3.1 Europe 17
1.3.2 United States 18
1.3.3 Japan 19
1.3.4 Emerging markets 21

2 Mobile advertising 23

2.1 The mobile handset as an advertising platform 23
2.1.1 Physical characteristics of the mobile handset 23
2.1.2 Handset software 25
2.1.3 Location capabilities 26
2.1.4 Mobile networks and data transfer capabilities. 27
2.1.5 Mobile Internet versus PC-based Internet 28
2.2 Advertising on the mobile handset 29
2.2.1 Deploying mobile advertising 30
2.2.2 Targeting mobile campaigns 30
2.2.3 Exploiting location technology 33
2.2.4 Privacy concerns 34
2.2.5 Pricing models and cost 35
2.3 The mobile advertising ecosystem 37
2.3.1 Advertisers 38
2.3.2 Ad agencies and creative designers 39
2.3.3 Digital ad networks 39
2.3.4 Technical solution providers 42
2.3.5 Mobile operators 43
2.3.6 Online media publishers and mobile application providers 44
2.3.7 Industry associations. 45

3 Messaging and mobile marketing 47

3.1 SMS and MMS marketing 47
3.1.1 Push messaging 51
3.1.2 Pull messaging and Common Short Codes 53
3.1.3 Location-targeted SMS campaigns 54
3.2 Idle screen advertising 55
3.3 Mobile coupons 57
3.4 Proximity-based marketing 59
3.4.1 Bluetooth 59
3.4.2 NFC 60
3.4.3 Barcodes 62
3.5 Case studies 64
3.5.1 Kiehl's leverages Placecast's technology to drive store visits 65
3.5.2 McDonald's drives sales with SMS coupon campaign powered by Todacell 65
3.5.3 Disney markets video game platform via NFC-enabled OOH posters 66
3.5.4 L'Oréal and Superdrug leverage O2 More's geo-targeted SMS program 66
3.5.5 Heinz uses QR codes to create engagement and support causes 66

4 Mobile web advertising 69

4.1 Portals 71
4.2 News and information 72
4.3 Mobile search 73
4.3.1 Market players and strategies 75
4.3.2 Directory services and local search 76
4.4 Communities and social networking 78
4.4.1 Market players and strategies 82
4.4.2 Social media marketing 84
4.5 Mobile music and video 85
4.6 Case studies 87
4.6.1 Mobile banner alternatives tested in Oreo's Cookies vs. Creme campaign 87
4.6.2 Tesco markets FIFA 13 game using innovative mobile advertising 88
4.6.3 Leboncoin monetises mobile web inventory using Admoove's LBA network 88
4.6.4 Amazon leads the way with mobile website matching app experience 88
4.6.5 Starbucks markets coffee maker on Harper's Bazaar's mobile website 89

5 Ad-funded applications 91

5.1 Mobile applications 91
5.1.1 Mobile games 94
5.1.2 Mobile map and navigation applications 96
5.1.3 Mobile search applications 101
5.1.4 Mobile music and video applications 102
5.1.5 Social networking applications 108
5.1.6 Branded applications 110
5.2 In-app advertising 111
5.2.1 Apple – iAd 111
5.2.2 BlackBerry – BlackBerry Advertising Service 112
5.2.3 Microsoft – Microsoft Advertising 113
5.2.4 Nokia – Microsoft Advertising and third-party ad networks 114
5.2.5 Google – AdMob 114
5.3 Case studies 115
5.3.1 P&G's Charmin eases public restroom finding with SitOrSquat app 115
5.3.2 Meat Pack launches HiJack campaign to attract customers from competitors 115
5.3.3 KFC Australia launches branded game with coupons to boost snack sales 116
5.3.4 PlaceIQ and Medialets deliver location-aware rich media ads for Meguiar 116
5.3.5 ViMAP boosts eCPM with MassiveImpact's mobile advertising solutions 117

6 Forecasts and conclusions 119

6.1 Mobile marketing industry analysis 119
6.1.1 Buyer-side: The mobile channel is getting established among advertisers 119
6.1.2 Supplier-side: Continued consolidation in the mobile marketing industry 121
6.1.3 Consumer-side: Mobile Internet set to overtake desktop access 123
6.1.4 Channels and formats: Which will succeed? 125
6.1.5 Convergence trends 127
6.2 Potential market value analysis 128
6.2.1 Target audience and exposure 129
6.2.2 CPMs for traditional and mobile media 129
6.2.3 CTRs for mobile campaigns 133
6.2.4 Revenue sensitivity analysis 133
6.3 Market forecasts and trends 135
6.4 Final conclusions 138
6.4.1 Mobile is established as an integrated channel in the marketing media mix 139
6.4.2 Smartphones are becoming ubiquitous and drive mobile media usage 139
6.4.3 Marketing strategies must be refined to integrate the mobile channel 140
6.4.4 Operators can assume a key role in the data-driven mobile ecosystem 141
6.4.5 Mobile websites and apps fill different needs 141
6.4.6 Simple and proven formats still have considerable potential 143
6.4.7 Hyperlocal targeting is a sweet spot for mobile ads but remains nascent 143
6.4.8 Real-time bidding is growing on the mobile channel 144
6.4.9 The underinvestment in mobile marketing is expected to diminish 144

7 Company profiles and strategies 147

7.1 Top advertising agencies 147
7.2 Mobile operators 150
7.2.1 AT&T 150
7.2.2 Orange. 151
7.2.3 SFR 153
7.2.4 Weve – mobile operator joint venture in the UK 154
7.3 Major digital players 155
7.3.1 Facebook 156
7.3.2 Google 157
7.3.3 Yahoo! 158
7.4 Mobile advertising and marketing players 160
7.4.1 Amobee 160
7.4.2 InMobi 161
7.4.3 Madvertise 161
7.4.4 Millennial Media 162
7.4.5 Nexage 163
7.4.6 Out There Media 164
7.4.7 Smaato 164

Glossary 167

List of Figures

Figure 1.1: Total advertising expenditure & top spending countries (Worldwide 2012) 4
Figure 1.2: Global advertising expenditure by medium (Worldwide 2012) 6
Figure 1.3: Top 20 advertisers (Worldwide 2010) 7
Figure 1.4: Top 10 advertising agency companies (Worldwide 2012) 8
Figure 1.5: Top 10 online activities on computers based on time (US September 2012) 9
Figure 1.6: Top 10 websites (US November 2013) 10
Figure 1.7: Online advertising expenditure by region (Worldwide 2012) 11
Figure 1.8: Online ad spend per capita across national markets (2012) 12
Figure 1.9: Online ad spend by category (US 2011–2012) 13
Figure 1.10: Online advertising spending by format (US 2012) 14
Figure 1.11: Mobile subscriptions and handset sales by region (Worldwide Q2-2013) 16
Figure 1.12: Computer vs. mobile internet usage (Europe 2012) 18
Figure 1.13: Mobile Internet use and smartphone adoption (US 2011–2012) 19
Figure 1.14: Mobile subscriber statistics (Japan October 2013) 20
Figure 1.15: Mobile penetration rates in major emerging markets (2012) 22
Figure 2.1: Performance parameters for different position determining methods (2013) 27
Figure 2.2: Stakeholders in the mobile marketing value chain 38
Figure 2.3: Examples of mobile ad networks (Worldwide 2013) 41
Figure 3.1: Examples of mobile messaging advertising response types 54
Figure 3.2: Examples of barcodes 62
Figure 3.3: QR code usage (EU5 July 2012) 64
Figure 4.1: Top 10 mobile properties by unique visitors (UK August 2013) 70
Figure 4.2: Top Internet search engines (Worldwide December 2012) 74
Figure 4.3: Share of smartphone users performing mobile search (US 2011–2013) 75
Figure 4.4: Share of smartphone users searching for local information (US 2011–2013) 77
Figure 4.5: Popular communities (Worldwide 2013) 79
Figure 4.6: Number of smartphone users accessing social networks (2012–2013) 81
Figure 4.7: TV, online and mobile video usage patterns – number of users (US Q2-2013) 86
Figure 5.1: Leading mobile app stores (December 2012) 92
Figure 5.2: Advantages and disadvantages of handset-based navigation solutions 96
Figure 5.3: Examples of Android, BlackBerry and iPhone navigation apps 98
Figure 5.4: Augmented reality features in IKEA's 2014 catalogue app 100
Figure 5.5: Mobile music users (EU5 July 2012) 103
Figure 5.6: Examples of music streaming services (Worldwide 2013) 105
Figure 6.1: Acquisitions in the mobile and digital media industry (2013) 122
Figure 6.2: Mobile share of total Internet traffic by region (2013). 124
Figure 6.3: Comparison of CPM levels by media (2013) 131
Figure 6.4: Typical CPM rates for mobile advertising (2013) 132
Figure 6.5: Mobile advertising revenue sensitivity analysis 134
Figure 6.6: Total and digital advertising expenditure by region (Worldwide 2012–2018) 135
Figure 6.7: Mobile advertising expenditure forecast by region (Worldwide 2012–2018) 136
Figure 6.8: Mobile advertising expenditure by format and region (Worldwide 2012) 138
Figure 7.1: Top advertising agencies (Worldwide 2012) 148

To order this report: Mobile Advertising and Marketing – 7th Edition
http://www.reportlinker.com/p0165499/Mobile-Advertising-and-Marketing-–-7th-Edition.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Online_Advertising

__________________________
Contact Clare: [email protected]
US: (339)-368-6001
Intl: +1 339-368-6001

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