Mobile Advertising & Location-based Mobile Services

Mobile: The Future of Internet… and Our Lives

Ruby Chao Zhang

4/28/2010

Mathew Honan: 37.769958 °N, 122.467233 °W. Photo: Jason Madara

Overview

Mobile advertising

Location-based mobile services

Mobile Advertising

The mobile phone platform

Personal

Interactive

Constantly in-use

Mobile Advertising

Fractured market, no ad network is dominant

Major players serve different market segments,

and different regions

Google + Admob24%

Millenial Media18%

Yahoo11%

Microsoft8%

Quattro Wireless

(acquired by Apple in Jan,

2010)7%

JumpTap4%

AOL2%

The others26%

Mobile Ad Networks Market Share in 2009

(Data by market research firm IDC, 2009)

Mobile Advertising

According to a study by Gfk NOP research in

2007, more than 3 in 10 mobile users in the

U.S. have seen or heard advertising on their

mobile phones

But I bet…

Mobile Advertising

Four main types of mobile advertising

Web Display Ads

SMS/MMS Mobile Ads Search Ads

App/Game/Video

Display Ads

Mobile Advertising

Revenue shifts from SMS ads to search ads

Mobile Advertising

Overall rapid growing prospect in the next 3 years

(Data by Kelsey Group, Chart made by TechCrunch, Sep 2009)

Mobile Advertising

Three types of mobile advertising networks:

depend on how they reach their audience

Blind Advertising Networks

Premium Blind Advertising Networks

Premium Advertising Networks

Mobile Advertising

Blind advertising networks

High volume advertising to an extensive base of

mostly independent mobile publishers

Usually do not allow advertisers to choose

specific websites, but could choose by country

and content channels (news, sports etc)

CPC is the norm, CPM is used to create brand

awareness

Wealth of self-service tools exists, mobile ad

publishers can expect to earn about 55-65% of

the advertiser’s rate

Mobile Advertising

Premium blind advertising networks

Advertising can be specifically placed

on well-known sites, some networks

have exclusive relationships with

websites

CPM model rules, some higher-end, in-

demand advertising inventory can cost

$20 CPM

Mix of self-service and direct sales

and support and lots of targeting

options

Mobile Advertising

Premium advertising networks

Narrow in focus, ad sales are focused

on extremely high-traffic publishers

In-house ad sales, operate advertising

for their own sites and networks

Generally CPM-based, with rates

ranging from $5 to $75 CPM .

Publishers on these ad networks can

reap up 50 to 70% of advertising

revenue.

Mobile Advertising

iAds: Moving the needle in the mobile ad space?

Built for HTML5

iAds will come pre-installed in the new iPhone OS 4.0 coming out this summer

In-app ads that can include video, games, store finders and customizers, more fun and interactive

Android OS catching up and exceeding

iPhone web traffic in March, 2010 (Admob’s

monthly mobile metrics report )

"We think most of this [existing] mobile

advertising really sucks!"

Location-Based Mobile Service

Location : most important contextual clue provided

by mobile device

The compelling combination of information and

financial incentive

Location:“where” information filter

Location-Based Mobile Service

Industry growing fast with the development of GPS and other positioning technologies on mobile device

Juniper Research estimates that location-based

services, as an industry, will earn up to $12.7 billion

by 2014

Location-Based Mobile Service

North Face’s Location-Based Mobile Campaign

2010 spring, New York, Boston, San Francisco, and

Seattle

Using SMS/Geo-fencing technology to target opt-in

customers

Location-Based Mobile Service

Zip Car On The Go

Put consumers more directly in touch with businesses

and services

May disrupt already-existing business services

Location-Based Mobile Service

Geodelic

Combining a person's location, inferred intent and

personal affinities to deliver relevant information about

the real world surrounding them at any given moment

Location-Based Mobile Service

Foursquare

Adding a social layer & gaming elements to the

location, turning the city to a playground

What Is Your Next Big Idea?

References

Butcher, D. (February 24, 2010). North Face debuts first LBS campaign for outdoor apparel.

Retrieved from http://www.mobilemarketer.com/cms/news/advertising/5482.html

Byrne, C. (January 10, 2010) Will 2010 be mobile advertising’s big year? Retrieved from

http://mobile.venturebeat.com/2010/01/10/will-2010-be-mobile-advertisings-big-year/

Gibbs, C. (January 5, 2010) 2010: The Year of M&A in Mobile Advertising. Retrieved from

http://gigaom.com/2010/01/05/2010-the-year-of-ma-in-mobile-advertising/

IAB. (October 2009) October 2009: Change Is in the Air for Mobile Advertising. Retrieved from

http://www.iab.net/insights_research/947883/1675/974217

Justin. (April 26, 2010). Survey: Consumers Prefer Location-Based Ads Over SMS And Mobile

Web Ads. Retrieved from http://www.mobilemarketingwatch.com/survey-consumers-prefer-location-based-ads-over-sms-and-mobile-web-ads-6198/

Klaasen, A. (September 14, 2009). Places, Please: How Location Changes Digital

Marketing. Retrieved from http://adage.com/digital/article?article_id=138971

Meeker, M. & Devitt, S. & Wu, L. (April 12, 2010) Internet Trends [PDF document]. Retrieved

from Morgan Stanley Institutional Research site:

http://www.morganstanley.com/institutional/techresearch/internet_trends042010.html

mobiThinking. (2009) The mobiThinking guide to mobile advertising networks 2010: Blind

Networks. Retrieved from http://www.mobithinking.com/mobile-ad-network-guide/blind

Mooney, A. (April 16, 2010) Why Apple's iAd platform will make mobile ads sexy.

Retrieved from http://www.mobilemarketer.com/cms/opinion/columns/5997.html

Palmieri, P. (April 13, 2010) Four things about Apple iAd that tickled Millennial Media’s Paul

Palmieri. Retrieved from http://www.mobilemarketer.com/cms/opinion/columns/5952.html

References

Patel, K. (April 8, 2010) Apple's iAd Not Game-Changing, but Will Move Market.

Retrieved from http://adage.com/digital/article?article_id=143189

Patel, K. (March 22, 2010). Forget Foursquare: Why Location Marketing Is New Point-of-

Purchase. Retrieved from http://adage.com/digital/article?article_id=142902

Reedy, S. (February 11, 2010) Mobile operators seek role in great location shake-out. Retrieved

from http://connectedplanetonline.com/mobile-apps/news/great-location-shake-out-0211/

Schonfeld, E. (October 6, 2009) Mobile Advertising Is Shaping Up to Be All Search. Retrieved

from http://techcrunch.com/2009/10/06/mobile-advertising-is-shaping-up-to-be-all-search/

The Economist. (March 4, 2010). Follow me: Adverts that know where you are could be

lucrative—not to mention controversial. Retrieved from http://www.economist.com/businessfinance/displaystory.cfm?story_id=15612291

Walsh, M. (November 23, 2009) Report: Google + AdMob = 24% Mobile Ad Network Share.

Retrieved from http://www.mediapost.com/publications/?art_aid=117926&fa=Articles.showArticle

Warren, C. (April 27, 2010). Motorola Droid is Android’s Dominant Device. Retrieved from

http://mashable.com/2010/04/27/admob-stats-march-2010/

Wauters, R. (February 23, 2010). Mobile Location-Based Services Could Rake In $12.7

Billion By 2014. Retrieved from http://techcrunch.com/2010/02/23/location-based-services-revenue/

Photo credits: Jason Madara; most other photos are from internet, authors can contact me for credit.