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Mobile Advertising and Marketing - 7th Edition

  • ID: 2720936
  • Report
  • 167 Pages
  • Berg Insight AB
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  • Amobee
  • Facebook
  • InMobi
  • Millennial Media
  • Orange
  • SFR
  • MORE
What are the latest trends on the mobile advertising market? Growing at a compound annual growth rate of 26 percent, the mobile ad market is forecasted to be worth € 27.9 billion in 2018 – corresponding to 19.3 percent of the total digital advertising market. Find out what the industry leaders are doing and anticipate their strategies for the future. Learn more in the sixth edition of this 160 page report in the VAS Research Series.

Mobile Advertising and Marketing is the seventh consecutive report analysing the rise of mobile advertising on the global market. This strategic research report provides you with 160 pages of unique business intelligence and expert commentary on which to base your business decisions.

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 this in-depth research.
Note: Product cover images may vary from those shown
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  • Amobee
  • Facebook
  • InMobi
  • Millennial Media
  • Orange
  • SFR
  • MORE
Executive summary

1 Advertising and digital media
1.1 The marketing and advertising industry
1.1.1 Global advertising expenditure
1.1.2 Advertising expenditure by media
1.1.3 Top 20 global advertisers
1.1.4 Marketing industry players
1.2 The Internet media channel
1.2.1 Internet usage trends
1.2.2 Internet advertising expenditure
1.2.3 Internet advertising formats
1.3 The mobile media channel
1.3.1 Europe
1.3.2 United States
1.3.3 Japan
1.3.4 Emerging markets

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

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

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

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

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

7 Company profiles and strategies
7.1 Top advertising agencies
7.2 Mobile operators
7.2.1 AT&T
7.2.2 Orange
7.2.3 SFR
7.2.4 Weve – mobile operator joint venture in the UK
7.3 Major digital players
7.3.1 Facebook
7.3.2 Google
7.3.3 Yahoo!
7.4 Mobile advertising and marketing players
7.4.1 Amobee
7.4.2 InMobi
7.4.3 Madvertise
7.4.4 Millennial Media
7.4.5 Nexage
7.4.6 Out There Media
7.4.7 Smaato



List of Figures
Figure 1.1: Total advertising expenditure & top spending countries (Worldwide 2012)
Figure 1.2: Global advertising expenditure by medium (Worldwide 2012)
Figure 1.3: Top 20 advertisers (Worldwide 2010)
Figure 1.4: Top 10 advertising agency companies (Worldwide 2012)
Figure 1.5: Top 10 online activities on computers based on time (US September 2012)
Figure 1.6: Top 10 websites (US November 2013)
Figure 1.7: Online advertising expenditure by region (Worldwide 2012)
Figure 1.8: Online ad spend per capita across national markets (2012)
Figure 1.9: Online ad spend by category (US 2011–2012)
Figure 1.10: Online advertising spending by format (US 2012)
Figure 1.11: Mobile subscriptions and handset sales by region (Worldwide Q2-2013)
Figure 1.12: Computer vs. mobile internet usage (Europe 2012)
Figure 1.13: Mobile Internet use and smartphone adoption (US 2011–2012)
Figure 1.14: Mobile subscriber statistics (Japan October 2013)
Figure 1.15: Mobile penetration rates in major emerging markets (2012)
Figure 2.1: Performance parameters for different position determining methods (2013)
Figure 2.2: Stakeholders in the mobile marketing value chain
Figure 2.3: Examples of mobile ad networks (Worldwide 2013)
Figure 3.1: Examples of mobile messaging advertising response types
Figure 3.2: Examples of barcodes
Figure 3.3: QR code usage (EU5 July 2012)
Figure 4.1: Top 10 mobile properties by unique visitors (UK August 2013)
Figure 4.2: Top Internet search engines (Worldwide December 2012)
Figure 4.3: Share of smartphone users performing mobile search (US 2011–2013)
Figure 4.4: Share of smartphone users searching for local information (US 2011–2013)
Figure 4.5: Popular communities (Worldwide 2013)
Figure 4.6: Number of smartphone users accessing social networks (2012–2013)
Figure 4.7: TV, online and mobile video usage patterns – number of users (US Q2-2013)
Figure 5.1: Leading mobile app stores (December 2012)
Figure 5.2: Advantages and disadvantages of handset-based navigation solutions
Figure 5.3: Examples of Android, BlackBerry and iPhone navigation apps
Figure 5.4: Augmented reality features in IKEA's 2014 catalogue app
Figure 5.5: Mobile music users (EU5 July 2012)
Figure 5.6: Examples of music streaming services (Worldwide 2013)
Figure 6.1: Acquisitions in the mobile and digital media industry (2013)
Figure 6.2: Mobile share of total Internet traffic by region (2013)
Figure 6.3: Comparison of CPM levels by media (2013)
Figure 6.4: Typical CPM rates for mobile advertising (2013)
Figure 6.5: Mobile advertising revenue sensitivity analysis
Figure 6.6: Total and digital advertising expenditure by region (Worldwide 2012–2018)
Figure 6.7: Mobile advertising expenditure forecast by region (Worldwide 2012–2018)
Figure 6.8: Mobile advertising expenditure by format and region (Worldwide 2012)
Figure 7.1: Top advertising agencies (Worldwide 2012)
Note: Product cover images may vary from those shown
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  • Amobee
  • Facebook
  • InMobi
  • Millennial Media
  • Orange
  • SFR
  • MORE
Mobile will account for 5.9 percent of the total global ad spend in 2018

According to this new research report, the total value of the global mobile marketing and advertising market will grow from €6.9 billion in 2012 at a compound annual growth rate (CAGR) of 26 percent to € 27.9 billion in 2018. This will then correspond to 19.3 percent of the total online advertising market or 5.9 percent of the total global ad spend for all media. On a global level, mobile search advertising is estimated to represent the largest share of more than 50 percent of the total mobile ad spend, followed by display advertising and messaging. There are however considerable regional differences in the format distribution depending for example on the level of maturity and local preferences across markets.

“There is currently a mismatch between the ad dollars spent on different media and the share of time consumers devote to the various channels”, said Rickard Andersson, Senior Analyst, Berg Insight. Some channels such as print media receive a greater share of the total ad spend than can be motivated from a consumer behaviour standpoint while other channels receive too little investments. “Mobile devices are on average devoted a double digit percentage of consumers' time, yet the channel only attracts a few percent of the total global ad spend”, said Mr. Andersson. He adds that this discrepancy can be explained by the relative newness of the mobile channel as an advertising medium and the formidable growth of mobile media consumption in recent years.

The author expects that a correction in the ad budgets spent on different media is imminent, thus paving the way for a severalfold increase in mobile ad spend in the coming years. Numerous actors are involved in activities related to mobile marketing, including players from diverse backgrounds. 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. 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 furthermore include Millennial Media, InMobi, Smaato, Nexage, Madvertise and Amobee. The industry is in a phase of consolidation and notable transactions in 2013 include Millennial Media's acquisition of Jumptap and Twitter's acquisition of MoPub. Google has moreover acquired the crowdsourced navigation provider Waze which offers location-based advertising.
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- Amobee
- AT&T
- Facebook
- Google
- InMobi
- Madvertise
- Millennial Media
- Nexage
- Orange
- Out There Media
- Smaato
- Weve
- Yahoo!
Note: Product cover images may vary from those shown
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The Internet of Things is very diverse. There are hundreds of different use cases, each with different dynamics. The starting point is to segment the market. The start with a  number of sectors: Automotive, Cities, Health, Industry, Home, Industrial, Energy, Retail and Consumer Electronics. Each of those sectors breaks down into a number of applications. In total across all sectors, the analyst examines around 150 separate applications. It is at this application level that they generate their IoT forecast. The analyst builds reliable data bottom-up. They take into consideration the current adoption rate, regulations, demographics, vertical-specific statistics, value chain structure, etc.

The rigorous data collection methods are based on first-hand and secondary sources. The analyst conducts many hundreds of executive interviews on a yearly basis with companies from all parts of the IoT value chain.  They talk to on a regular basis all major mobile operator groups and regulators as well as the chipset, module, and terminal vendors. They also interview many companies in each of the vertical markets.