Mobile Content Platforms
Mobile Content Platforms
“Mobile Content Platforms: Mobile 2.0 and Advertising Join the Party” covers the
software platforms used to deliver & monetize content to mobile handsets. The
research contains five-year worldwide forecasts of global market revenue for video,
music, gaming and images. The forecast for the emerging category of advertising in
premium is included. The report also presents market share in these areas for mobile
operators, content providers and content-enablement companies. The report provides a
further breakdown of revenue share for the content-enablement companies by revenue
share of music including ringtone, ringtune, ringback, over-the-air full music track
download, streaming music revenue by region. The report also contains profiles of
major mobile content enablement platform companies and trends and predictions for
the industry.
While messaging continues to dominate data revenue and shows continued steady
growth, mobile premium content is expanding its growth worldwide. By “premium
content”, MMI means discretionary entertainment content such as music, games and
video that a subscriber purchases, subscribes or rents.
Developed markets, such as Japan and Korea, have seen dramatic growth in premium
content. Operators are seeing data revenue exceed 30% of total service revenue as the
ringtone market shifts from a primary to a partial revenue stream in a premium content
mix that includes full track downloads and mobile video. Mobile gaming emerged first in
Asia, expanded to Europe and is now growing in North America. Mobile video holds the
most significant potential, with current worldwide “on-network” mobile video
subscribers exceeding 9 million, according to MultiMedia Intelligence. Mobile video
though is still at its nascent stages. Broadcast mobile TV is still only selectively deployed
on a country by country basis, capturing about 5 million users as of the end of 2006.
Several significant market trends have arisen over the last year in the area of content
platforms. The significant trends include:
- Movement to target the mass market
- Support of multiple funding models
- Enablement of mobile 2.0 features
- Support of multi-platform execution (as opposed to executions on multiple platforms)
Four fundamental types of content are delivered to handsets: music, images, video and
games. Music breaks into several sub-categories including ringtones (further divided
into both polyphonic and realtones), ringback tones, full track downloads and streaming
music. MMI also counts adult content, which combines and spans all four “media” major
categories. Adult content has some unique features that drive us to forecast it as a
separate category.
The imbedded advertising model for mobile video is in place and will serve to
dramatically increase viewership. Clearly, consumers have accepted advertising in their
subscription video streams. Other forms of premium content such as games and music
have not have not seen significant advertising inserts as of yet. This will happen but
MMI does not see it is as a significant or measurable market within our forecast
parameter.
In our estimation the size of the on-deck market will exceed the off-deck market. This
reflects MultiMedia Intelligence’s categorization of mobile TV as “on-deck.”
Operators have tremendous power because they “own” the subscriber base. Clearly,
content companies have considerable power as they own the content that individuals
want. The other two entities tend to be somewhat stuck in the middle, “bullied” at
times. The revenue of the market participants reflects this dynamic.
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- Access market sizing and forecasting of the global and online mobile advertising
industry.
- Analyze online and mobile advertising market segments, growth forecasts, drivers and
resistors.
- Gain insight into emerging models which will drive the industry in the future: semantic,
location based, social networking and video advertising.
- Gain insight into the various tools used for measuring the effectiveness of online
advertising, such as business analytics.
The $55bn online advertising industry, largely dominated by Google, is poised for a
historic battle. While Google will continue to monopolize the online ad space for some
more time, Microsoft could emerge as a strong contender which may result in a market
duopoly in the long-run.
The $2bn mobile advertising industry (which is currently just a fraction of the size of the
online advertising market) will also witness equally dramatic changes. The two
significant events which will transform the industry are: the rise of Google’s Android
platform to a position of dominance; and the emergence of Asia as a key market.
While the online advertising industry is growing at a CAGR of 11.4% between 2007-12,
and will continue to be popular in the developed world, mobile advertising will gain
maximum traction in the emerging markets of Asia, especially India and China. The key
driver of this growth will be the high rates of mobile penetration in the region.
- What was and will be the value of the global online and mobile advertising industry?
What are the opportunities in the various market segments?
- What are the various drivers and resisitors to online and mobile advertising market
growth?
- Who are the major players, who are current leaders and who are the emerging
contenders? What are their busines models, strategies and SWOT?
- What are the various tools for measuring the performance and effectiveness of the
advertising industry?
- What are the emerging models and evolving trends that will drive future growth in the
industry?
This Frost & Sullivan research service titled U.S. Mobile Advertising and Search Markets
provides market trends, forecasts, and predictions for 2010 and beyond. The study also
provides value chain and revenue share analyses. In this research, Frost & Sullivan's
expert analysts thoroughly examine the following: smartphone and feature phone
applications, next-generation devices, mobile advertising, mobile marketing, mobile
banking, and mobile payments.
Market Overview
Increasing penetration of advanced mobile devices is perhaps the biggest driver for
mobile advertising, helping the industry on two important fronts. Firstly, greater uptake
of mobile data services - including the mobile Web, mobile applications, mobile video,
and others - opens up new forms of inventory on a per user basis and from an overall
growth perspective. Secondly, and perhaps equally important is the ability of these
next-generation devices to support new technologies and user experience paradigms
that helps in delivering an improved, interactive mobile advertising experience such as
rich media advertising, HTML 5.0, location-based services, and others. “In-application
mobile advertising has emerged as a strong contender in the mobile advertising markets
- mainly driven by smartphone in-application opportunity,” notes the analyst of this
research service. “Apple’s App Store and Google’s Android market have already
demonstrated the viability of smartphone in-application mobile advertising.” The
smartphone environment creates a superior mobile advertising experience that
encompasses rich media support, location awareness, m-commerce capabilities, and
others. Leading advertising platform vendors offer mobile advertising across multiple
channels, with mobile Internet and in-application advertising emerging as the most
common among holders of multiple types of inventory.
The ability to embed Web views within applications unleashes several innovative
possibilities for rich media advertising in mobile applications. Within applications,
advertising solution providers can also leverage on additional functionality/information
such as location, accelerometer, and others that are exposed by the operating system
software development kit (SDK). The strong performance of in-application advertising
can be attributed to the high-quality experience it delivers when compared to that of a
browser. Emergence of application analytics to measure the advertising and application
performance helps advertisers and application developers improve the performance of
their consumer offerings and optimizes the advertising and application performance. A
large majority of applications are available ‘free of cost’ to the end user and this has
significantly generated newer types of advertising inventory in the U.S. mobile
advertising markets.
The biggest challenge is to educate the brands and advertising about the possibilities in
mobile advertising. Managing the expectation of the key stakeholders is also important
to ensure sustainable growth. Prolific growth in the mobile data ecosystem, along with
multiple specialized industry participants targeting different advertising services, has
made it difficult to have standardized frameworks for mobile advertising. Specialized
industry participants have been the early innovators in this space; however, this has also
resulted in disparate processes and approaches to mobile advertising leading to greater
demand for working together with the existing platforms to enable a unified, consistent
advertising workflow. “The online advertising industry benefitted significantly due to the
third-party ad serving technologies and greater automation for campaign management,”
says the analyst. “For example, industry solution providers are already integrating with
the dominant online ad campaign planning and delivery platforms to incorporate a
mobile advertising element.” Additionally, all major mobile advertising networks work
collaboratively to deliver the best advertising experience to advertisers and agencies as
well as publishers and mobile operators.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this
research:
Technologies
Key forecasts include the number of users who receive advertising on their mobiles,
both by region and by delivery channel (SMS, MMS, Mobile Internet, On-portal, In
content downloads, Idle screen, P2P and Mobile TV). Other forecasts include cost per
clickthrough (CPC) and cost per mille (CPM) rates and the number of users who respond
to mobile advertising. The number of responses per annum and total adspend per
channel are also forecast.
The report also analyses key drivers and contraints such as the personal nature of the
mobile, enabling targeted and potentially more effective campaigns, and mobile’s
perceived lack of reach due to low access rates of rich media content and services.
Key Questions Addressed by this Report:
- How has the global recession impacted on the mobile advertising market?
- What will be the key mobile distribution channels for brand advertising in five years’
time?
- Who are the major players in the mobile advertising ecosystem?
- How have brands utilised mobile channels within integrated multimedia campaigns?
- Will mobile advertising be viable as a primary revenue stream for content providers?
- What strategies should brands, agencies and network operator employ to derive
optimal success from mobile advertising?
Key Benefits:
- A unique source of combined research and analysis for the mobile advertising market
including technologies, market characteristics and forecasts.
- Practical analysis of the emerging opportunities for vendors and operators.
- Unique insights: includes interviews of leading players with significant experience of
the mobile advertising market.
- Benefit from fresh thinking and intelligent market assessment.
This mobile advertising report presents a number of case studies in the form of
successful mobile advertising campaigns such as the iPint application for the iPhone and
the Jeep campaign on Greystripe.
Interviews with major players across the mobile advertising value chain are included and
over 25 companies are profiled. Regulation pertaining to mobile advertising is also
investigated and strategic recommendations for brands, advertising agencies and
operators are provided
Author:
Dr Windsor Holden is Principal Analyst with Juniper Research. Windsor has written
extensively on mobile content, emerging telecoms markets and digital TV. He is also a
regular conference speaker and a former Research Fellow of the Institute of
Communication Studies, University of Leeds.
Mobile Advertising and Marketing – 3rd Edition
Berg Insight says mobile will account for 11.7 percent of digital ad spend in 2014
According to a new research report from the analyst firm Berg Insight, the total value of
the global mobile marketing and advertising market will grow from € 1.0 billion in 2008
at a compound annual growth rate (CAGR) of 43 percent to € 8.7 billion in 2014. This will
then correspond to 11.7 percent of the total digital advertising market. As the digital
convergence blurs the differences between devices the definition used for mobile
advertising is that it is the digital media exposed on a mobile handset screen. The report
predicts that the mobile media will become a natural part of the marketing media mix.
“Handsets are highly private devices that offer a unique platform for personal
interaction with consumers”, said Marcus Persson, telecom analyst, Berg Insight.
“Advertisers are increasingly aware of the opportunities and seek new ways to exploit
them. Just the simple fact that people are able to make a phone call or send a text
message anywhere at any time has changed the conditions for marketing in general.” He
adds that many marketing campaigns are designed to trigger a response in the form of a
voice call, SMS/MMS or a visit to a mobile web site. On-screen advertising on mobile
displays has not taken off until very recently but is becoming increasingly relevant with
the rising popularity of advanced Internet-enabled smartphones.
Berg Insight anticipates that there will be increasing convergence between traditional
web and mobile advertising as the PC and mobile technological capabilities will come to
merge. The most likely result of such a development is the formation of a few dominant
digital advertising networks spanning all types of devices. Corporations such as Google
and Microsoft openly aspire for this position in competition with among others Apple,
Nokia and Yahoo!. Ultimately the control over advertising in handsets will reside far
beyond the traditional mobile network environment.
How to transform the mobile handset into an advertising platform? As the global
number of mobile subscribers approaches 5 billion, there is no question regarding the
potential reach of the mobile media. Yet advertisers, agencies and telecom industry
players are still searching for the winning formula that will unlock the market. Learn
more in the third edition of this 150 page report in Berg Insight's VAS Research Series.
Mobile Advertising and Marketing is the third consecutive report analysing the rise of
mobile advertising on the global market.
This strategic research report from Berg Insight provides you with 150 pages of unique
business intelligence and expert commentary on which to base your business decisions.
- How can mobile handsets become integrated in the marketing media mix?
- What changes in the mobile industry and end-user behaviour are required before
mobile advertising can become a multi-billion euro market?
- How are Google, Microsoft, Nokia and Yahoo! positioning themselves to become
leading mobile advertising networks?
- Who are the rising stars that stand out from the crowd among the mobile advertising
and marketing companies?
- How well suited for advertising are different existing and future mobile media
channels?
- What are the initial experiences from mobile marketing campaigns?
- Which advertising formats will become most successful in the mobile environment?
- In what ways can location technology improve the relevancy of mobile advertising?
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.
Mobile communication is a global phenomenon that has thoroughly changed the way
people interact with each other. More than 4 billion subscribers are using mobile
services every day, more than twice the number of traditional Internet users. Mobile
devices have several unique characteristics that make them highly suitable for
advertising and marketing. Handsets are extremely personal devices since they are
owned and used by one person. They are almost always with the person, which allows
contextual targeting of people on-the-go. Being switched on at almost all times, they
also allow advertisers to reach the consumers in the right moment. Since today’s
mobiles are highly interactive devices and are featured with a range of functions
including video players, music players, cameras and web browsers there are many
different options for interaction. Another major benefit is that the mobile space is less
crowded than most other channels whereby adverts get more attention.
For these reasons mobile is becoming a natural part of the marketing media mix.
Handsets are highly private devices that offer a unique platform for personal interaction
with consumers. Advertisers are increasingly aware of the opportunities and seek new
ways to exploit them. Just the simple fact that people are able to make a phone call or
send a text message anywhere at any time has changed the conditions for marketing in
general. Many marketing campaigns are designed to trigger a response in the form of a
voice call, SMS/MMS or a visit to a mobile web site. Handsets are also a suitable
platform for building brand awareness through the distribution of free content or
applications. Mobile advertising is yet another channel that evolves along with mobile
Internet access.
As the advertising and marketing industry acquires more and more experience of the
mobile channel it will become a natural part of the integrated marketing media mix. As
digital media converge there will however be less and less distinction between mobile or
traditional Internet advertising and market. Digital campaigns will be designed to reach
out to consumers on a broad range of platforms, including everything from full-size PCs
to smartphones.
Berg Insight estimates that the total value of the global mobile marketing and
advertising market was € 1,014 million in 2008. Asia-Pacific constituted the main
regional market, accounting for around 75 percent of the total value. Despite the
shrinking advertising market, the mobile channel has grown over the past year
underpinned by a strong momentum and increasing mobile media usage. Growing at a
compound annual growth rate of 43 percent, the market will be worth € 8.7 billion in
2014 – corresponding to 11.7 percent of the total digital advertising market.
The mobile marketing and advertising ecosystem is highly fragmented and complex,
which is typical for an immature industry. Many companies try to find their place in the
value chain and get a piece of the market. Much of the activities carried out are still on
an experimental stage and actors are constantly looking for new business models and
services that could generate revenues. However, many large brands have launched
numerous campaigns and are now moving beyond the trial stage to establish the mobile
channel to be part of the media mix. Campaigns are getting increasingly complex and
more integrated into larger campaigns, spanning several media formats. Most firms
specialized in enabling mobile advertising are still relatively small, venture capital
funded actors. Many larger players are taking a relatively cautious stance with the
exception of a few companies such as Vodafone, Yahoo! and Google. Over the past
three years many of the larger players have acquired firms specialized in mobile
advertising. The largest deal to date was Google’s US$ 750 million acquisition of AdMob
in November 2009.
Many mobile operators have actively engaged in mobile advertising activities in some
form. The level of activity, however, varies vastly between different operators. Turkcell
is currently the most aggressive promoter of mobile advertising since Blyk discontinued
its MVNO business. Vodafone offers a wide range of services across the globe, some
commercially available while others are of an experimental character. Besides the
operators, both Nokia and Ericsson have launched various services to accelerate the
mobile advertising developments.
Mobile Advertising in Emerging Markets looks at mobile advertising initiatives and the
revenue potential in emerging markets, with a particular emphasis on Brazil, China,
India, Indonesia, Mexico, Romania, Russia, South Africa and Turkey. We also put our
findings in context by making comparisons with global trends and developed markets,
such as the US and UK. Our analysis indicates that mobile advertising will boost mobile
data service revenue by up to 10% and that leading operators are pushing a variety of
advertising methods, from sponsored messaging and alert services to more
sophisticated content over mobile portals.
Case studies:
Brazil
China
Indonesia
Mexico
Romania
Russia
South Africa
Turkey
Key questions answered
- How will mobile and Internet-based advertising compare in emerging and mature
markets?
- Are there markets where the mobile sector’s share of overall advertising spending will
surpass that of the Internet anytime soon?
- In light of the fact that even basic services such as sponsored messaging and alert
systems are enabling brands to reach a wider audience, how will the progression of
mobile networks to 3G affect the development of mobile advertising?
- What are the benefits to brands of including mobile advertising initiatives in their
overarching marketing strategies?
- Can SMS-based approaches ever help brands reach a substantial mobile audience in
emerging markets?
- What are the advantages to mobile operators of pushing m-advertising, besides adding
a revenue stream?
- Can advertising play a role in boosting the use of paid connectivity products?
Target audience
Operators
Learn how different business models can be used to provide mobile financial services, in
particular what the role is of the main players and the supporting ecosystem. Find out
which factors — regulations, technology — make a service successful. Draw on
conclusions based on the experience of successful African operators that have wide
application in markets at various stages of development. The report also looks at
examples of why privacy issues, mobile spam and unsolicited messages are key areas
the industry must continue to address delicately.
Banks
Find out the size of the opportunity in emerging markets, and determine how different
markets require different approaches. Learn how the mobile advertising channel can
increase awareness of your offerings, improve customer satisfaction and provide
information about customer behavior and preferences. This report provides insight into
how different approaches using mobile media can help reach customers more
effectively. It also offers the analysis you need in order to take advantage of the mobile
opportunity, especially among previously unreachable income segments.
Investors
Identify the opportunities in mobile advertising by examining case studies of some of
the most challenging markets in the world. This report provides a thorough grounding in
the important issues facing one of the most exciting segments of the
telecommunications industry, giving you the fundamental tools to develop long-range
plans and winning strategies.
Mobile Advertising in Emerging Markets examines mobile advertising initiatives and the
revenue potential in emerging markets, with a particular emphasis on Brazil, China,
Indonesia, Mexico, Romania, Russia, South Africa, and Turkey. This 84-page report puts
our findings in context by making comparisons with global trends and developed
markets, such as the U.S. and the U.K.
The author predicts that mobile advertising will boost mobile data service revenue by 10
percent within the next five years, as mobile service adoption rates grow worldwide.
Mobile data services are expected to account for more than 33 percent of operators'
service revenue at the global level by 2013, making any driver of this market a strategic
component.
The expected growth in mobile data subscriptions will make mobile advertising a robust
growth area despite an expected overall downturn in advertising spending over the next
two years, notes Jan Ten Sythoff, manager of Mobile Content at Pyramid Research and
co-author of the report. 'Fixed-line Internet and mobile platforms will take market share
away from traditional formats in the short term and grow in line with economic
recovery from 2011 onward,' say Sythoff. 'Mobile and Internet platforms combined will
account for roughly 12 percent of overall advertising spending in emerging markets and
30 percent in developed countries by 2013,' he adds.
The report identifies eight developing markets in which mobile advertising initiatives are
gaining ground. Combined, these markets will account for more than 35 percent of
mobile subscriptions worldwide by 2013. 'South Africa and Indonesia stand out as
markets where the mobile sector's share of overall advertising spending will surpass
that of the Internet medium as early as 2009,' says Sythoff.
“Mobile will become an important medium for advertisers in the medium-to-long term,
but most service providers are still not participating effectively in the development of
this market, limiting their opportunities to build new revenue streams and to enhance
the user experience through relevant and engaging advertisements and advertising-
funded services,” Alexandra Rehak, Principal Analyst.
Mobile advertising has attracted much attention from companies within the traditional
mobile communications value chain (service providers, platform developers, handset
vendors and payment processing engines), as well as from external players, including
media companies, content developers, advertising agencies and major consumer
brands. Although the market is still in a nascent stage, it is certain that mobile devices,
and the content and applications accessed on them, will become important media for
advertisers in the medium-to-long term. The question for service providers and their
partners is how they can participate effectively in the development of this market and
how they can derive the maximum benefit from it, when so many other players are also
hoping to extract value from mobile advertising.
We analyse strengths, weaknesses, opportunities and threats for each of the service
providers discussed in the report, and discuss the key benefits that service providers can
achieve by taking a proactive approach to the mobile advertising market.
- Mobile service providers (MNOs and MVNOs): to understand the developing market
for mobile advertising and the best ways in which service providers can address this.
Learn how other service providers are working to position themselves effectively and
maximise revenue from mobile advertising.
- Mobile advertising networks and mobile advertising platform providers: to learn more
about the most effective ways to form partnerships with mobile service providers in
order to expand the mobile advertising market and develop compelling new advertising
propositions.
- Investors and consultancies: to understand the opportunities presented by mobile
advertising and to assess which service providers are best positioned to take advantage
of these.
- Media and content creators and producers: to learn more about service provider
strategies for mobile advertising in order to develop effective partnerships and
campaigns.
- Handset vendors: to gain insight into the types of mobile advertising that service
providers are most likely to promote and participate in. Determine which features and
partnerships vendors should develop to make mobile devices an attractive and effective
delivery medium for advertising.
- Network infrastructure vendors: to understand the likely development of the mobile
advertising market and the ways in which their carrier partners can facilitate mobile
advertising. Learn what opportunities infrastructure vendors have to support these
efforts.
- Regulators: to make sense of where mobile service providers stand, relative to other
parties, in the mobile advertising value chain. Discover which aspects of mobile
advertising may require additional attention or regulatory focus.
The Mobile Advertising report analyzes the changes that must occur before this nascent
channel becomes a full-blown advertising medium around the globe.
eMarketer forecasts that worldwide mobile marketing and advertising spending will
reach $19 billion by 2012.
With mobile devices evolving rapidly in capability, feature sets and screen resolution,
and with consumers adopting smart devices phones and now tablets at a faster rate
than feature phones, marketers are overcoming the reluctance to embrace mobile as
described in last year’s report.
Spending on mobile advertising will grow more than sixfold between 2009 and 2014,
reaching nearly $2.55 billion.
- What is the outlook and growth trajectory for mobile advertising and marketing?
- What formats are available to marketers, and which show the most promise?
- Access market sizing and forecasting of the global and online mobile advertising
industry.
- Analyze online and mobile advertising market segments, growth forecasts, drivers and
resistors.
- Gain insight into emerging models which will drive the industry in the future: semantic,
location based, social networking and video advertising.
- Gain insight into the various tools used for measuring the effectiveness of online
advertising, such as business analytics.
The $55bn online advertising industry, largely dominated by Google, is poised for a
historic battle. While Google will continue to monopolize the online ad space for some
more time, Microsoft could emerge as a strong contender which may result in a market
duopoly in the long-run.
The $2bn mobile advertising industry (which is currently just a fraction of the size of the
online advertising market) will also witness equally dramatic changes. The two
significant events which will transform the industry are: the rise of Google’s Android
platform to a position of dominance; and the emergence of Asia as a key market.
While the online advertising industry is growing at a CAGR of 11.4% between 2007-12,
and will continue to be popular in the developed world, mobile advertising will gain
maximum traction in the emerging markets of Asia, especially India and China. The key
driver of this growth will be the high rates of mobile penetration in the region.
- What was and will be the value of the global online and mobile advertising industry?
What are the opportunities in the various market segments?
- What are the various drivers and resisitors to online and mobile advertising market
growth?
- Who are the major players, who are current leaders and who are the emerging
contenders? What are their busines models, strategies and SWOT?
- What are the various tools for measuring the performance and effectiveness of the
advertising industry?
- What are the emerging models and evolving trends that will drive future growth in the
industry?
This report presents location and proximity services that are successful and the
companies behind the solutions.
Methodology
Companies are presented so that the audience may gain insight into the operational and
financial levers of management. Activities that catapulted each company forward are
highlighted in context of their business model.
Seasoned thought-leaders from within the executive teams of each company provide
their expertise to detail a vivid picture of what it takes to succeed today and what
technologies will provide unique value to the industry in 2012.
Audience:
- Cellular positioning (A-GPS and U-TDOA), RFID, and Bluetooth product and service
suppliers
We forecast that mobile internet users via handsets in the US will rise to 158m in 2015,
and smartphone owners will rise to 194m in the same year. In view of this, prospects for
revenues from mobile advertising are considerable, and we predict they will increase by
a compound annual growth rate of +37% across the forecast period to 2015.
This 29 page report examines mobile advertising via handsets in the US to 2015, and is
divided into two sections. The first section provides analysis and forecasts for ad
revenues across SMS, Display and Search. The second section is given over to an analysis
of the following drivers to mobile advertising: