How big is Mobile/Wireless Advertising market ?. Will Google dominate this space too ?. What are the other players in this market ?.
Answers (29)
Not big yet, will become big as soon as internet on mobile devices become affordable. (try crossing countries in Europe and access internet in an other country than where you have your contract, even vodafone doesn't deliver!)
And yes, Google will be dominate, together with Microsoft. They have all the resources/technologies in place, and recently bought Doubleclick, which just before bought TangoZebra, a UK rich media server already delivering campaigns on Mobile.
Greetings,
Gordon
sebastian B
Head of Business development at Ericsson Malaysia
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Today, mobile wireless advertising market is still pretty small. For this year forecast estimates 2B usd For the year 2010, is like 10b usd.
The interesting thing, is that today we are prepare for mobile advertising ly because there are enough mobile inventory ( devices, mobile internet is growing, MMS is taking off, mobile tv is starting to be interactive, 3g).
Another important issue, is that there is a disparity of the money spend in traditional media (tv basically) and Mobile. People spend 3 hours daily watching tv and advertisers spend 70BN usd/year. For Mobile, people spend like 50 minutes/day and advertisers spend like 1% ( 2bn usd)
Last but not least, is the interactivity that offer mobile. You can target better your market, giving only what they wnat, when they want. Even now, there is a company ( Blyrk) that will offer totally free services for youth, pay only by advertisers.
For me, the scene is ready, but is only a matter of the first mover.
Catherine S
R&D Engineer
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Hello,
If you can read french, here a link to an interesting article on that subject. In fact it is a study from march 2007.
Main data is :
- Japon is leading the way for this market with 650 millions of euros invested in 2006.
The second link, in the same article, displays a graph for the evolution of mobile advertising market in the world (source eMarketer, january 2007).
Projections are given for world and french markets.
Hope this help, in spite of language barrier!
Regards
Catherine
Links:
Mobile advertising it's in its infancy right now. The existing forms of mobile ads have only been through SMS. Many times, it's considered as spam by the end-users. However, there are huge opportunities for mobile ads as traditional ad channels such as TV is loosing its relevancy. Now, regarding the size of the mobile advertising market, its indeed very small at the moment. But the adressable market is not to be underestimated. You often hear these quotes from Coca-Cola, MTV, etc, how much they plan to devote on mobile ads within five years time...
Now, in my opinion, to make mobile ads successful, the mobile operators play an important role in the value chain. In fact, they posses very important knowledge about their subscribers. This valuable piece of information is unbeatable compared to traditional TV, and sometimes even compared to the Internet. Please note that this doesn't imply that mobile operators would be the player selling the ads directly. The second important success factor is to find new ways of doing ads in the mobile space. Mobile TV is an excellent way of doing it - you reach the long tail, you subsidize something or even giving out something for free (trading off the content cost), it's user triggered... you name it. Ultimately, mobile ads is making mobile TV a mass-market service.
Now, to the players, who will dominate? The answer is strongly connected to the model/value chain of mobile services. Consider a bit-pipe/off portal scenario, which many believe is the future model, then we would see these big Internet players dominate, Google/Youtube, AOL, MSN, Ebay etc... In the field of mobile TV, we would see some new players aggregating content and advertisements, and then partnering with the mobile operators...
Anyway, I strongly believe that mobile ads will walk the Internet way...
/Guan
Johan K
johan.swerwer {at} gmail.com Business startup/turn-around/strategy, Telco/banking Bus & Tech Architect
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Google is going for it.... thus that is a possibility. Loads of operators are interested. Demand for solutions has shot through the roof.
BTW: We're interested in launching a number of niche market virtual network operators (VNO and MVNO's) -- We currently cover five niche markets... for others that contacted me. Hold until July please. Re-organising as the demand far exceeded the expectation in response.
Johan Kok - johan.swerwer@gmail.com
Sunil M
CEO & Co-Founder at Mango Technologies Pvt. Ltd.
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Mobile/Wireless advertising market is in it's early stage now but everyone is hoping that it'll become a huge market in next 2 years time frame.
Let's understand the intricacies of mobile advertising and how it's different from Internet world:
It's more device dependent but internet is easily accessible through PC.
No standard in Mobile handset world, it's highly fragmented market (many different platforms, apps, server, communication standard) unlike PC world, where primarily you have Windows and Intel
Europe is talking about 3G but emerging countries are still debating about delivering data using SMS channel.
Localization is key in mobile handset world. We can have thousands of results in Google but you can't have the same in limited capabilities devices.
I would say market for mobile advertising is wide open at this point of time for many players including Google, Microsoft and other smaller local players. Many companies are still debating about Location based services, GPS, IPTV etc. and clubbing advertising with all of them.
Regards,
Sunil
www.mangotechno.com
Piotr I
Owner at Expertus (consultancy in open source, FreeBSD, Mac OS X, Linux, mobile)
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We've started mobile advertising project a few months ago, and I think the results are promising. Mobile users are generally less anonymous than Internet users, so it gives somewhat better opportunities for precise targeting. The market itself is not so big now, but it's just starting, so I think it will be growing dynamically in years following.
Kuldeep,
It's a very interesting and timely question for us also. We are trying to assess the same after the launch of our Mobile Website http://mvies.in
Just attended the MoMo Delhi event today & you would be surprised to hear that we had 4 guys talking on the same subject, but the market size is still not clear.
I guess everyone is just figuring it out.
http://mvies.in
Links:
Given the take-up rates of 3G smartphone and Windows Mobile phones with wifi, and the roll-out of massive wifi hotspots in Asia - the outlook is promising! The story may get even more interesting if we loop in the upcoming WiMAX services.
Google definitely will have the advantage if they indeed launch GooglePhone with technologies that blend GoogleMap, GoogleSearch and GPS just to name a few. On the other hand, Yahoo and Microsoft won't sit idle without a fight working along with device makers and regional telcos.
Local relevance and customer consumption behavior are important to seduce users to take up the offer. IE wiped out Netscape for its control of the landing pages, I suppose the history will repeat itself. Thus, whoever controls the "landing page"" will dominate the subsequent clicks and hence sales.. So no surprises if both Apple and Google are launching their mobile phones in near future.
Ganesh S
Owner, Knowledge Campus Research & Consulting Services and Management Consulting Consultant
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I am very passionate about this
Have a look at my presentation - http://www.scribd.com/doc/35126/SG-CR-KE-ALL-OF-US-ARE-GREAT-IN-COMMUNICATING
The question I have asked here, is that 'Are we missing out reaching the millions of mobile phone / iPod and other mobile device users'
My definite answer, is that we are missing out and the potential is tremendous
Standards, or non-standards, being what they are, how do we reach out?
My answer is very simple - as Photo Files - say in JPG format
I have developed a process by which, a presentation prepared in PowerPoint is rendered as High Quality Photos, which can be hosted on Internet sites and delivered to customers / prospects who opt to receive these ad contents - as photo files
Technically speaking, the Internet and the mobile network can be integrated / interconnected. Look at the tremendous opportunity - instead of worrying about 'non-standards' across all mobile networks of the world, the ad contents on Internet can be individually integrated with all mobile networks of the world - AND YOU HAVE ACCESS TO REACH OUT!
I specialize in content preparation - prepare the content as presentation and render as high quality photos
Have a look at my blog on this http://ganeshsrinivasanspresentstoslides.blogspot.com/
Would welcome further discussions on this - I can share more
Links:
Murdo M suggests this expert on this topic:
Michael S
Chief Executive Officer of Amethon Solutions
Best Answers in: Wireless (5), Telecommunications (2)
A few people have already provided numbers on the size but I thought it might be useful to talk about where I see mobile advertising to and where it is going. I answered a similar question recently so thought I would repost.
Cheers,
Michael
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I am indirectly involved in the mobile advertising space and this is where I see a lot of growth. Unlike the TV, web or print media, the mobile is totally personal to me, operators have significant information about me from a demographic, location, spending habits, etc, and there is an existing billing relationship that can also be leveraged.
There are five main areas of mobile advertising focus at the moment:
1. SMS to win/SMS to register interest: Allows brands to solicit interest from potential customers and typically complemented by print media, packaging, etc. This is now very comment and has a well established business model
2. Mobile Portal banner ads: Very similar to the banner ad model on the internet today but constrained by device capability and consumer use of mobile devices for browsing the internet. Both of these are improving which will speed industry growth. All operators now have a mobile portal that can be monetised in this way and there are other mobile portal providers going this way. Check out the Toyota ad on http://wap.drive.com.au.link below (works in a normal browser).
3. Mobile Search: Similar to the internet model and will increase rapidly as consumers use mobile search engines from Google and Yahoo to navigate off-net content. It will be typical pay to get to the top of the list stuff and even more important when there is only a small screen.
4. Branded Content: Most operators are offering mobile services such as news alerts, video streaming, etc. These are now being sponsored by brands so you will increasingly see pre- and post-roll adverts.
5. Viral Marketing: This is our speciality as we provide technology to operators that allows them to track mobile content as it is shared/forwarded P2P. The key application is to allow branded content (viral video or animated gif) to be seeded to a small target group and then leverage their social network to distribute it further.
The key challenge for everyone in the industry is to avoid the levels of SPAM we see on the internet. Fortunately it costs much more to send a bulk SMS or MMS but there will still be some rogue elements out there.
Links:
Different in different regions - Im based in Asia and there are forecasts for $$$mmm's from 2010 onwards..guess alot of this growth is pegged to broadband growth etc..
Think we can expect Google to have pretty good shot at mobile, but think we can also expect broadcast new media players to move on this, mobile being more personal, also AvantGo etc..
Am working on mobile/wireless infotainment and IM for Asia, and working through this issue as we go..
Links:
Hi Kuldeep,
Mobile marketing is still small, but is growing rapidly (as an indication of the potential--consider than twice as many smart phones were shipped in 2006 as in 2005). In response to some of the queries below, Google will indeed be a leader in this realm (in Japan, they already have Text Ads in the mobile browsers that dial a number when you click, as opposed to linking to a new website).
However, Apple will be the platform from which mobile marketing expands (at least in the US, because the Japanese have had the required technology for 3-4 years). Apple's new iPhone has its Safari browser integrated which will allow users to zoom in/out of a .Com website (eliminating the need for any website developed specifically for a mobile device).
However, one of the current limitations in the US is a lack of bandwidth for mobile phones b/c our network is considerably "older" than those in Japan, South Korea, India, etc. In Japan, for example, you can walk out of a building and automatically find on your phone where the closest fast food restaurant is---if you happen to be hungry and want the advertisement. We're a few years away from this in the US, but it will become available (more so through Apple I believe than Google) in the next few years).
Nigel D
Wireless and Mobile Strategy, Technology and Business Development Visionary
Best Answers in: Wireless (10), Biotech (5), Computer Networking (4), Telecommunications (4), Web Development (4), Organizational Development (3), Career Management (2), Enterprise Software (2), Computers and Software (2), Certification and Licenses (1), Conference Venues (1), Government Services (1), Internationalization and Localization (1), Events Marketing (1), Business Development (1), Public Relations (1), Manufacturing (1), Energy and Development (1), E-Commerce (1), Information Security (1), Information Storage (1)
I remain a little skpetical about the large growth figures being shown in some studies (10 to 15 times growth over the next 5 years or so...) and I'm a tad skeptical that the Googles, eBays and other giants have figured out the large differences between PC based Internet users and Mobile device based users.
Right now one of the best sites for smartphone users looking for information is actually run by the BBC. While SMS/MMS based revenues are gaining traction and portals beginning to make headway and mobile TV is beginning ......... I'm not sure anyone fully understands the implications of two important factors
The phone is a personal device and while offering a great vehicle for targetted marketing ........ none of the Internet greats have even emerged from the stone age in adapting to the user.
Mobile phones move and their location is more or less known (depening upon cell of origin, various triangulation technologies such as Cambridge Positioning Systems et al or GPS-A.....). The Internet has never cared whether your devices is moving or where it is.
Successfull advertising in the mobile world will need to care a great deal about both, if it wants to go beyond the current TV/Internet broadcast model. And believe me it will ulitmately need to go much beyond that level to win.
There are some dark horses in this race with very deep pockets.........one example would be the Amexs, VISAs and Mastercards who "know" a great deal about how, where and when you spend........but never had a real time link back to you as a "spender".......until mobile payments take off. With the right "opt in" model they may soon be able to suggest places to eat, stay and visit wherever you are.
I don't doubt that this will become a healthy industry but the value chain is complex............ and the business models still being bent into shape (actually the mobile operators will need to be bent out of shape to make this work properly).
I'm particularly interested in the user context/location/motion side of wireless services.
Nigel
Load up windows live search from Microsoft...available at
wls.live.com ...so far ad free and recently launched on WM devices with T-mobile..
on the Sprint network this is supported on non-WM devices as well as a java app. also licensed to Nokia for s60..
Ads may follow in future if service becomes free..
After you use this , you'll forget that goodle app that is curently shipped as a half-baked java app !!
The mobile phone market is following a similar path as the desktop computer market... similar startups, shakeouts, and business models - unprofitable and profitable. It’s just happening faster now.
I was involved in the startup of Apple in the software area and Computerland stores in the 1970s; then into the word processing arena with Wang, IBM Displaywriter, and the Xerox Star System; then to the IBM PC in the early 1980s; and finally to the mobile phone startup of the 1990s - launching Nextel from Motorola in Plantation, Florida. The issues and answers are surprisingly similar.
To understand what is going to happen with mobile/wireless advertising, you just need to look at what happened with the desktop and laptops. The screen area is smaller with mobile devices, but the issues and solutions will be similar. The answer is easy, until…
The bigger deal will be the death of barcodes and the rise of in-store and context based advertising/selling with RFID (Radio Frequency Identification). Once the products have RFID, advertising, instant couponing, “live” electronic selling will change the face of merchandising, inventory control, and purchasing for both businesses and consumers.
As a thought for the day, what happened to personal computer stores? Makes you wonder what your future is if you work as a mobile device sales person or at a dedicated cellphone store....
Prashant S
Program Manager ,Monsoon Multimedia , pacificleo@gmail.com
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hi Kuldeep
i am organizer of Mobile Monday Delhi . we had our meeting this saturday and topic of event was Mobile Advertisement. there were few very insightful talks by mobile Advertisement veterans .
Please have a look at following presentations . this will give you some idea
http://www.slideshare.net/pacificleo/is-india-ready-for-a-mobile-adnetwork
http://www.slideshare.net/pacificleo/an-insight-into-mobile-advertising-by-asif-ali-cto-of-mobile-worx-cto-of-mobileworx-presented-at-momo3-new-delhi-26099
we will upload some more presentation in coming days
keep a track of
http://www.slideshare.net/tag/momodelhi3
hope that helps
Prashant
We've seen Google dominate in any internet-based advertising they've attempted. It seems to me, however, that they'll be too distracted to make a truly global effort.
Almost a year ago there were reports of plans (http://www.dmxzone.com/ShowDetail.asp?NewsId=10967) but there has been no major push. That may have just been a balloon they sent up to distract from the recent push into the office application market.
Furthermore the huge and developing market in Japan is still protected by the Japanese government, and it would take a lot of planning to fit ads to the Indian culture.
In short, they could, but probably won't be willing to, especially on the Global stage.
The mobile advertising market is slowly gaining traction with Mobile Operators seeking to explore newer means of revenues supported by Advertising. With the revenue streams and margins on traditional Voice depleting over time, data services are being looked upon as the compensator.
According to leading research reports, Advertising on Mobiles world-over is poised to be around USD 9-10Billion in the year 2010-11.
Regards,
Hari Prasad Sampath
Pretty big--but at least 2 years out. I can tell you that Google will NOT dominate the market as operators will jealously guard the value of this portal. Most are already implementing theitr own ecommerce engines in WAP and won't cede this space like the wired Internet.
Sachin P
Software Business Owner, Mobile Business Solutions Consultant, Field Force Automation
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I just checked out one sms based marketing website. Check it out.
Links:
One player in the market is Blyk, who are a Virtual Mobile Network Operator that will offer free phone calls, funded by advertising revenue.
Links:
yeah...today many people have started using this new advertising campaign..reason is quite obvious...may be internet is not the reach of individual user (except developed countries) but handheld device is there with one...no matter what features they have..but sms would be with everyone...:)
In india, it is also recently started...and they pay too for accepting advertising on one's mobile..
visit http://mginger.com/ for more details
reagards,
Jaykishan Nirmal.
Admob is a company which has advertised its delivered 1 or 2 billion ads on mobile.
Regarding Mobile advertising, its definitely about a shift in budgets of companies from traditional print into the internet and mobile.
See this article.
"UK spending on internet adverts topped 10% of the total for the first time. "
http://news.bbc.co.uk/2/hi/business/6675061.stm
So for mobile ads to take off, it's about the numer of eyeballs and what the advertisers perceive as the pay off for mobile ads in mobile sites or applications.
I think it will always be second cousin to the internet but may charge a higher premium for click click through rates especially if you can personalise the ad to the user.
Milind N
Associate Director ( IT Talent delivery and support ) Compunnel Software Group Inc.
Today, mobile wireless advertising market is still very young and has its teething problems.
Its going to grow many many folds in coming few years.
The possibilities are vast and far reaching.
Eventually it is going to dominate the entire advertising scenario.Yes Google will dominate this space too and new players will imerge.
The experst I have suggested cover your questiosn from all perspectives.
If you are talking of US market, it will eventually take off with the same players (GOOG, YHOO, MSFT) as they already have build the brand and domain knowledge.
In the US today, the mobile content is driven by the carriers themselves and possibly to make their 3G investment viable. And unless that shell is broken it is difficult for any Ad providers to venture unless they partner with carriers. Though the alternatives are already popping with Google Maps service on mobile device and similar services.
A potential company:
Third Screen Media
Links:
PJ L
Corporate Recruiter at Microsoft - {LION} - 3000+ Connections
Best Answers in: Enterprise Software (1)
Google is definitely gunning for the market, but anyone is far from dominating it. As far as market value, the sky is the limit. There are currently 750 million people that have access to the web worldwide, compare that with over 2.2 billion people that use a mobile device. Like a lot of people have stated, once the market gets its ducks in a row and a correct model in place the mobile Ad market could eclipse anything we have seen so far.
Cheers,
PJ
