On
November 9, 2009 Google announced an agreement to acquire AdMob, a
mobile display ad technology provider, for $750 million. This
acquisition will enhance Google's existing expertise and technology in
mobile advertising, while also giving advertisers and publishers more
choice in this growing new area.
The deal will bring new innovation and competition to mobile
advertising, and will lead to more effective tools for creating,
serving, and analyzing emerging mobile ads formats.
This deal will benefit developers, publishers, and
advertisers by improving the performance of mobile advertising, and
will provide users with more free or low-cost mobile apps.
The mobile advertising space will remain highly competitive,
with more than a dozen mobile ad networks. The deal is similar to
mobile advertising acquisitions that AOL, Microsoft, and Yahoo have
made in the past two years.
Mobile advertising is a rapidly growing and competitive space, and
Google and AdMob are currently specializing in different areas. Though
Google offers many forms of mobile advertising, its focus to date has
been on mobile search ads, while AdMob's focus has been mobile display
ads and in-application ads.
Study: NAVTEQ sees ROI in location-based ads
NAVTEQ commissioned a survey conducted by Marketing Research Services Inc. (MRSI) to study the impact of location-based advertising on consumers.
The study surveyed 757 respondents 18 and older with average household incomes over $50K and using devices with ads in categories including Convenience, Fuel, Hotel, Pharmacy, and Bank/ATMs.
Survey findings are the following:
-Seventy-two percent of consumers find the ads to be acceptable on their navigation devices
-At least 50% of respondents recall seeing an ad for each of the advertised brands (aided and unaided)
-On average, 19% of people who recall seeing a specific ad reported clicking through for information on nearby locations
-Up to 6% of navigation device users visited a business location because of seeing an ad on their navigation device
NAVTEQ
LocationPoint Advertising combines GPS-based proximity, contextual and demographic information to get ads, coupons, and other marketing promotions into the hands of consumers as they are near a point of potential purchase. Today the NAVTEQ ad property is mainly made of Garmin devices which have ads distributed through the RDS-TMC connection that also serve for traffic information.-GPSBusiness News 11/6/09
How location-based searches are changing mobile
"As use of mobile phone search evolves it is very important for local
merchants or local outlets for major chains and brands to use a certain
amount of Web presence and search engine optimization to get their
messages out to the people nearby." -Mobile Marketer 8-25-09
Despite an expected
4% drop in mobile device sales, LBS subscribers are forecast to grow from 41
million in 2008 to 95.7 million in 2009, with revenue increasing from $998.3
million to $2.2 billion, says Gartner.
Leverage mobile to improve your brand
"If we look at successful brands that have already pushed to mobile,
it is clear that mobile should not just treated as an additional
revenue stream. Mobile provides new and exciting ways to interact with brands.
Mobile lets users connect with their favorite content on their terms. Brands have the opportunity to create new interactive experiences
that leverage the power of mobile environments such as address book,
camera, GPS and the accelerometer. Advertisers should not make the mistake of trying to recreate
classic Web advertising models that gather metrics like impressions and
click-throughs. A better strategy is to create great branded mobile experiences that
drive interactive usage and brand awareness. Successful brands have
leveraged mobile to extend their overall brand equity, not necessarily
to turn on a new revenue stream in the mobile channel. Brands often struggle with the question of fit for their brand.
Successful brands such as the Mini Cooper car that appear to have no
obvious mobile fit have had success developing iPhone applications that
associate their brand with positive attributes like fun and coolness.
Every brand can benefit from a mobile presence. The trick is determining how mobile can embrace and extend your brand. Kraft, for example, offers an iFood iPhone application that targets key
demographics, improves the lifetime value of a customer, drives
innovation and increases brand awareness. By now, the mobile marketing era is well underway. There are plenty
of examples of first-movers and fast followers who have already
invested and succeeded in the mobile channel. We can all learn from
these early successes." -Dave Sloan The Mobile Marketer 5/4/09
Pizza chain Papa John's International Inc. has generated more than $1 million
in sales from mobile Web orders in less than six months after offering that
option to consumers.
Mobile ad network AdMob unveiled the results of one-day mobile advertising test
campaigns it ran for Tylenol, Splenda and Post Cereals' Honey Bunches of Oats.
The last piece of the mobile contactless payments puzzle in the U.S. is the
commercial roll-out of NFC-enabled handsets from major OEMs and carriers,
according to MasterCard.
Unilver's Axe brand of male grooming products has launched a mobile marketing
campaign that includes a mobile Web site, ringtones, text alerts and a TV ad
campaign with SMS calls-to-action.
Wondering what's for dinner? General Mills' Betty Crocker brand has launched an
iPhone application to help answer that question.
Mobile marketing budgets to grow 150% by 2013
Coca-Cola and Xbox are among brands set to increase their mobile ad investment, as new research shows mobile marketing budgets will grow by 150% over the next five years despite the economic downturn. An O2 survey by Vanson Bourne of 100 marketing and IT directors from the financial services, manufacturing and retail sectors found that 60% favoured mobile marketing due to its targeted nature. Some 85% said mobile marketing campaigns generate a higher response than traditional methods....New Media Age October 9, 2008
5. Food for Thought: Apps Drive Snackable Content Downloads
4. Mobile ad pacing: Ads For Free Content
3. Localization: Ads Tied To Locations
2. Positive User Experience Driven By Location-Awareness
1. Improvements In Ad Quality Will Drive Business
For advertisers and media companies alike, content monetization will remain
the top priority in 2009 as they rush to deliver an increasingly interactive,
palatable and relevant advertising experience. The growth of the mobile Web is going to change the mobile experience in
ways that are both dramatic and personal. Faster transmission speeds, better handsets and the drop in mobile
subscriber fees are combining to grow the global audience for the mobile Web
and enhance the mobile experience. 2009 will be a year of transition as mobile subscribers look to a host of
compelling services beyond voice and ringtones as must-haves, helping to grow
the content, advertising and services industries, which are striving to meet
these emerging users’ needs.
-Jim Ricotta, Azukia Systems
720 million mobile devices with GPS to be shipped in 2011
Market research firm In-Stat today released a new report, “GPS Chips in Mobile Devices”, which indicates that sales of mobile devices with integrated GPS are expected to grow from 180 million units in 2007 to 720 million units in 2011. http://www.gpsbusinessnews.com/index.php?action=article&numero=477
A Much Higher Premium For LBS Ads
"Location-based advertising extends the reach of the shop window, and both shops and manufacturers will pay a much higher premium for this kind of advertising than they will for the blanket advertising of the kind found in magazines." Mike Evans Findermentalism.com October, 2007
Marketing Budget On Mobile Marketing
"...89% of brands will use text and multimedia messaging to reach their audience, with nearly one-third planning to spend in excess of 10% of marketing budgets on the medium. In five years over half of brands (52%) expect to spend between 5% and 25% of total marketing budget on mobile marketing." Independant Survey (Airwide Solutions).
Google Mobile OS Will Be Ad-Supported
"Since ads will be built into the open platform, Google will be able to offset the need for application adoption subscription fees by delivering customized, individual-level ad packages to any location-aware device running the OS. This means unobtrusive, relevant ads delivered to the most prequalified individual imaginable...an individual conveying an "ad relevance predisposition" through both the subject of the local search (the current AdSense model) and real-time physical proximity to the advertised services rendered. If Google ties in payment/reservation services, they will be able to track ad effectiveness not by click-throughs, but by converted, incremental sales. The result could be the end of pay-per-click ads and the dawn of hyper-effective location-aware advertising paid for by converted sale percentage rev-share." Wilson Kerr November 2007
A Primary Means Of Reaching Out To Our Customers
..“Mobile Marketing” consists of a unique, complex, mix of technologies, business skills, and marketing expertise. It is a child born of the Internet revolution, and it is critical that today’s marketers grasp its significance. It is one of the first new channels to arise in over 50 years, and will quickly become a primary means of reaching out to our customers." MMA Industry Overview http://www.mmaglobal.com/modules/article/view.article.php/1153
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