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REPORT

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Mobile Advertising and Marketing 2007 - Market analysis and forecasts 2007-2012

Mobile Advertising and Marketing 2007 - Market analysis and forecasts 2007-2012

  • Publication date: 12/11/2007
  • Number of Pages: 188
  1. Report Details
  2. Table of Contents
  3. Companies Listed

Report Details

Mobile advertising is coming to a phone near you – but simply translating existing models won’t work. Your industry has woken to the potential of offering advertisements on mobile. You need to react now. If you wait, the opportunity may be gone.

The increasing availability of multimedia content is opening a large opportunity for sophisticated forms of mobile advertising. As content that already incorporates advertising - like live TV programming - makes its way to mobile handsets, brands and entertainment content providers are beginning to see the value of presenting full multimedia ads with programs.

From 2006 when the nascent market garnered just over $500 million in Europe and the United States, visiongain believes mobile marketing and advertising in these two geographical areas will grow to almost $2 billion in 2012. Issues to be resolved include business models and revenue share, the type, length and frequency of ads, consumer attitudes and many others. Operators will have to walk a fine line between maximising the revenue potential of advertising, while at the same time not risk alienating subscribers and increasing churn by doing so.

Based on interviews with key participants across the value chain, including operators, media agencies, software application providers, access providers, marketing specialists and trade association representatives, this 180+ page report analyses the market drivers and barriers affecting mobile advertising and marketing. It discusses the main market trends and charts the market evolution in the US and Europe. The report examines mobile advertising opportunities presented by MMS, video, TV, LBS, contextual advertising, as well as other niche possibilities.

Reading this exclusive management report will tell you the following:
• Who are the main players in mobile advertising and what are they doing?
• What different forms of advertising are available and expected to appear in the future?
• How does mobile advertising compare to online and traditional media?
• Why is advertising so important to mobile?
• When will advertising start to make significant traction in the market? When will it become a mass market proposition?
• How successful will it be?
• How can operators and other companies in the value chain best position themselves?

Find out the answers to these and many other questions by buying this vital industry insight.

Plus other key questions answered such as:
- What % of brand advertising and marketing budgets will go on the mobile channel by 2012 and what will be the associated revenues?
- Where are the biggest market opportunities?
- What advertising models exist and which ones will account for the biggest market?
- What types of mobile advertising are most likely to succeed?

Operators in the Europe and the US are currently either testing various forms of advertising with 3G services or are allowing ads to be served on their portals. A number of multimedia companies have already launched mobile advertising offerings, and several ad-funded MVNO's in Europe and the US in 2007 have generated significant interest, and will become an important revenue source within the next five years.

Why you need to order this report today:
1. Mobile operators: Gain insight into the issues affecting mobile advertising and where revenues can be derived from this new opportunity. Discover regional adoption and usage of new technology and services, as well as market size data. Obtain analysis of the key market participants and their products and services.
2. Brands/Advertisers/Marketers: Discover what opportunities exist in the mobile advertising channel and what the best strategies are in this space. Learn about market issues specifically related to mobile content and mobile marketing and advertising including technology, media types, demographics, psychographics, subscriber receptivity and trends.
3. Vendors: Learn what mobile operators’ plans are with mobile advertising and marketing. Find out how the market will evolve and how you can benefit from this growth.

Furthermore, the entry of large online search engines into the mobile world opens up new advertising opportunities in the shape of context-based mobile search. What are the best strategies for success? This report will tell you.

Mobile advertising has great potential due to the relationship between a mobile subscriber and their handset, where the mobile device is often with the end-user for most of their waking time. With mobile penetration reaching 100 per cent in many developed markets, the mobile phone will soon be in virtually everyone’s pocket. Advertising is currently a major area of growth in the mobile world and is set to become even more specialised than it is at the moment. Do you understand this market? Do you know how it will develop? Is this an issue that you need to act on and find out about now?

Who needs to read this report?
Directors, VP and Senior managers in:
• Mobile/ Cellular carriers and operators
• Digital and Mobile Advertising agencies
• Mobile Search companies
• Handset manufacturers
• Mobile content providers
• Brands looking to tap into the mobile audience
 

Table of Contents

1. Executive Summary
1.1 New Content and Technologies are Enabling Mobile Multimedia Advertising
1.2 Who Controls the Channel?
1.3 Market Trends
1.4 Challenges and Issues To Consider
1.5 Market Forecasts
1.6 Conclusions

2.Introduction
2.1 The Emergence of Mobile Marketing and Advertising
2.2 Technology to the Rescue
2.2.1 New Opportunities for Brands and Entertainment
2.3 Mobile advertising growth
Chart 2.1: Mobile advertising investment in US and Western Europe, 2007-2012
Chart 2.2: Evolution of mobile advertising business and monetisation models
2.4 Advertising and the mobile user
Chart 2.3: In mobile advertising, how important is it to you that…?
2.4.1 Getting Consumers to Accept Advertising on Their Mobile Phones
Chart 2.4: 3G Reported Global Subscribers, July 2002-July 2007
2.5 An ad-funded mobile service - the future?
2.6 Opt-in vs. opt-out
2.7 The Bottom Line
2.8 Research Methodology
2.9 Focus and Objectives of the Report

3. Strategic Overview of the Global Mobile Market
3.1 Mobile Phone Usage
Table 3.1: Mobile subscribers, 2006-2012
3.2 Impetus for Mobile Phone Upgrades
3.3 Adoption of New Technologies
3.4 Increased mobile data usage
Chart 3.1: Global data revenue growth
3.4.1 Increase in mass-market devices
Chart 3.2: 3G handset penetration in Western Europe
Chart 3.3: Smartphone shipments as a percentage of total handset shipments
3.5 Forms of mobile advertising
3.5.1 SMS
3.5.1.1 Success through SMS campaigns
3.5.1.2 SMS ads show higher response rates in the emerging US market
Table 3.2: Text-based Advertising by Country, July 2007
Table 3.3: US Mobile Subscriber Monthly Consumption of Content and Applications, July 2007
Table 3.4: UK Mobile Subscriber Monthly Consumption of Content and Applications, July 2007
3.5.2 Premium SMS
3.5.3 MMS
3.5.4 Banner advertising
3.5.5 Mobile gaming
Chart 3.4: Global in-game advertising spending forecast 2007-2012
3.6 The Battle Over Content
3.6.1 Who Controls the Customer?
3.6.2 Off-portal vs. on-portal content
3.7 Mobile Network Operators Need a Revenue Boost
3.7.1 Achieving Synergies Between Advertising and Content

4. Market Analysis
4.1 From Voice to Rich Media
4.2 Terminology
4.3 The Mobile Channel - A New Channel with Unique Characteristics
4.3.2 What Can Mobile Marketing and Advertising Accomplish?
4.3.2.1 Mobile Advertising Market Drivers
4.3.3 Barriers to Successful Mobile Marketing  and Advertising
4.3.3.1 Technological Barriers
4.3.3.2 Attitudinal Barriers
4.3.3.3 Mobile advertising will not work for all products and services
4.4 Advantages of Mobile Advertising and Marketing
Table 4.1: Comparison of Media Campaign Response Rates
4.4.1 Reasons for the success of mobile advertising and marketing
Table 4.2: Advantages of Mobile Marketing vs. Traditional Marketing
4.6 Typical Marketing Campaigns
4.7 Mobile Advertising and Marketing Techniques
4.7.1 Location Based Services (LBS)
4.7.1.1 The importance of search to LBA
4.7.1.2 Drivers and barriers to LBA
Table 4.3: Advantages of LBA
4.7.1.3 Current market for mobile LBA
4.7.1.4 LBS subscribers
Chart 4.1: LBS subscribers, 2007-2012
Chart 4.2: Proportion of LBS funded by advertising forecast 2012
4.7.1.5 Mobile LBA future
4.7.1.5.1 Will Mobile LBA Succeed?
4.7.2 Multimedia - Music, Video, TV
4.7.2.1 Mobile Music and Advertising
4.7.2.2 Mobile Video Advertising
4.7.2.3 Advertising Through Mobile TV
4.7.2.3.1 Determining the Mobile TV Ad Model
4.7.2.3.2 Advertisers will find the mobile channel an increasingly attractive alternative to TV
4.7.2.3.3 Differences Between Advertising on Mobile and Regular TV
Chart 4.3: Mobile TV subscribers, 2007-2012
4.7.2.3.4 How will mobile TV advertisements work?
4.7.2.3.5 Mobile TV - An Uncertain Medium
4.8 Advertising Opportunities with Mobisodes
4.8.1 Magazines Embrace the Mobile Channel with Mobizines
4.8.1.1 Advertising on Mobizines
4.9.3 Adult Content
4.9.3.1 Adult Content Provides a Good Opportunity for Multimedia Ads
Chart 4.4: Mobile adult content global revenue forecast 2007-2012
4.10  The Future of Messaging and Rich Media
4.10.1 Which Technology is Most promising for Mobile Advertising?
4.11 Mobile Advertising Activity is on the Increase
4.12 Privacy and Spam Considerations
4.12.1 Regulations
4.12.2 Attitudes Towards Spam
4.12.2.1 Perceptions of Spam in the US and Europe Among Operators and Consumers
4.13 Demographics
4.13.1 Targeting the Right Product Advertising Towards the Right Age Group
4.13.2 Advanced Mobile Service Users
4.13.3 The Sweet Spot Ages
4.14 Key Players in Providing Content to the End-User
Table 4.4: Mobile Marketing/Advertising Participants
4.14.1 Agencies
4.14.2 Mobile Marketing Specialists
4.14.3 Aggregators/Gateway Providers 
4.15 The Role of Wireless Network Operators
4.15.1 Operator Positioning in the Mobile Advertising Value Chain
4.15.2 Operator Attitudes to Full-Scale Advertising
4.16 Revenue Sharing and Billing
4.16.1 Technology Services Billing
4.16.2 Premium SMS
Table 4.5: Premium SMS Revenue Sharing Splits - US
4.17 How will mobile advertising evolve?
4.18 Alternative Advertising Models
4.18.1 Sponsorship of Mobile Services
4.18.2 Advertising funded content
4.19 Mobile Search
4.19.1 Internet Search vs. Mobile Search
4.19.2 Mobile Search Takes Off
4.19.3 Contextual Advertising will Become a Lucrative Market
4.20 Market Forecasts
Chart 4.5: Mobile Advertising Investment (US and Western Europe), 2006-2012
Chart 4.6: Mobile Marketing Investment (US and Western Europe), 2006-2012
4.21 Market Trends
4.21.1 Emergence of more one-stop shops
4.21.2 Emergence of mobile advertising specialists
4.21.3 Outsourcing of Mobile Advertising and Marketing
4.21.4 Demographic Changes will Shift Types of Mobile Advertising and Marketing
4.21.5 Mobile Search Growth
4.21.6 The Fall of the Walled Garden
4.21.7 Falling Costs of Mobile Advertising and Marketing
4.21.8 Increasing Importance of CRM to Mobile Brands and Advertisers
4.21.9 Evolution of a Sustainable Mobile Advertising Business Model
4.21.10 Ad-subsidised MVNOs
4.22 Chapter Conclusions

5. Case Studies and Competitive Landscape
Table 5.1: Major Mobile Players by Category in the Mobile and Advertising Space
5.1 Flytxt and Orange UK
5.1.1 Objectives
5.1.2 Solution
5.1.3 Results
5.2 m-Qube and NBC/Endemol Entertainment
5.2.1 Objective
5.2.2 Solution
5.2.3 Results
5.3 12snap and Coca Cola
5.3.1 Objective
5.3.2 Solution
5.3.3 Results
5.4 Mobile 365 and Volvo
5.4.1 Objective
5.4.2 Solution
5.4.3 Results
5.5 North American Marketing, Media, Access, and Platform Companies
5.5.1 Air2Web
5.5.2 AdMob
Chart 5.1: AdMob Revenue Split with Publishers
Chart 5.2: AdMob Revenue Split with Ad Source Partners
Table 5.2: AdMob Channel Audience Composition, by Age Q3 2007
5.5.3 Captive Interactive
5.5.4 Enpocket
5.5.4.1 Enpocket research
Chart 5.3: Would you prefer it if mobile phone advertising was more relevant and useful to you because it was tailored to your interests?
Chart 5.4: Would you find it intrusive if advertising on mobile Internet was not targeted to your needs?
5.5.5 g8wave
5.5.6 ipsh!
Table 5.3: ipsh! Key Clients
5.5.7 mBlox
5.5.8 mia
5.5.9 MobiTV
5.5.9.1 MobiTV’s Advertising Strategy
5.5.9.2 Advertising for live mobile TV and on-demand mobile TV
5.5.9.3 Future Opportunities
5.5.10 Mobliss
5.5.11 m-Qube
5.5.12 Nextcode
5.5.13 PaperClick/NeoMedia
5.5.14 QUALCOMM/MediaFLO
5.5.14.1 MediaFLO’s Advertising Strategy
5.5.15 Soapbox Mobile
5.5.16 SquareLoop
5.5.17 Telescope
5.5.18 Third Screen Media
5.5.19 Twelve Horses
5.5.20 Vibes
5.5.21 Vidiator
5.6 European Marketing, Media, Access, and Platform Companies
5.6.1 12snap
5.6.2 ActiveMedia Technology
5.6.3 Dimension 5 and Ad2Hand
5.6.4 Buongiorno
5.6.5 Dynetic
5.6.6 Emexus
5.6.7 Flytxt
5.6.8 mkodo
5.6.9 Netsize
5.6.10 Opera Telecom
5.6.11 Que Pasa
5.6.12 Streamezzo
5.6.13 Upstream
5.6.14 Watisit
5.6.15 Zamano
5.7 Advertising based model – Blyk
5.7.1 Blyk - Leading the Way in a Challenging Market
5.7.2 Xero Mobile and ROK
5.7.3 MySpace goes mobile
5.7.4 Can Ad-Supported Mobile Succeed?
5.8 Mobile search
5.8.1 Mobile search differs from fixed line search
Table 5.4: Key differences between fixed line and mobile search
Chart 5.5: Average internet searches per user session
5.8.1.1 Importance of maps to mobile local search
5.9 Barriers
5.9.1 Lack of capable handset penetration
5.9.1.1 Applications
5.9.2 Privacy and ethical issues
5.9.2.1 Opting-in to LBA
5.9.3 How to deliver the advertising
5.9.4 Cost of search applications
5.10 Fixed line players move to mobile
Chart 5.6: US Mobile search engine daily usage, June-August 2006
Chart 5.7: Share of US online searches by engine April-May 2007
5.10.1 Google
5.10.1.1 Google Mobile Internet and Image Search
Table 5.5: Key operators and handset manufacturers in partnership with Google
5.10.1.1.1 The .Mobi domain
5.10.1.2 Google Mobile WebSearch
5.10.1.3 Google Mobile Local Search
5.10.1.3.1 Acquisitions to Boost Google’s Mobile Search and advertising
5.10.1.3.2 Google’s free 411 service
5.10.1.4 A Google handset?
5.10.1.4.1 An Ad-Funded Google handset?
5.10.1.5 Brand dilution issues
5.10.2 Yahoo
Table 5.6: Key operators and handset manufacturers in partnership with Yahoo
5.10.2.1 Yahoo OneSearch
5.10.2.2 Yahoo Mobile Publisher Services
5.10.2.3 Microsoft
5.11 Other vendors
5.11.1 Nokia
5.11.1.1 Nokia Mobile Search
5.11.1.2 Nokia LBS
5.11.1.3 Nokia Ad Service and Ad Connector
5.11.1.4 Nokia is Taking Mobile Advertising Seriously
5.11.1.5 Nokia Is Leading the Way For the Handset Giants
5.11.2 MobilePeople – monetising mobile search
5.11.2.1 The Mobile Search and Discovery Initiative
5.11.2.2 MobilePeople’s Liquid Search
5.11.3 m-spatial – made to measure mapping
5.11.3.1 m-spatial - UK search trends in 2007
Table 5.7: Top Ten Local Search Brands January - April 2007
Table 5.8: Top Ten Local Search Categories January - April 2007
5.11.4 Medio Systems – an LBA white-label solution
5.11.4.1 Medio mobile search
5.11.4.2 Medio's Advertising and merchandising
5.11.5 AirG and mobile social networks
5.11.6 Hypertag – developing short-range advertising
5.12 Mobile Operators’ Advertising Strategies
5.12.1 North American Operators
5.12.1.1 AT&T Wireless
5.12.1.2 Sprint Nextel
5.12.1.3 T-Mobile USA
5.12.1.4 Verizon Wireless
5.12.2 European Operators
5.12.2.1 Orange
5.12.2.2 O2
5.12.2.2.1 O2 and Mobile Social Networking
Table 5.9: Most Popular Social Networks in the UK, August 2007; and Growth Across 2007
5.12.2.3 SFR
5.12.2.4. 3UK
5.12.2.5 T-Mobile International
5.12.2.6 Telefónica Móviles
5.12.2.7 Vodafone
5.13 Trade Associations
5.13.1 Mobile Marketing Association (MMA)
5.13.2 Mobile Entertainment Forum
5.13.3 Mobile Data Association
5.13.4 ICSTIS

6.Strategies for Success and Recommendations
6.1 Strategies
6.1.1 Mobile Advertising/Marketing Doesn't Stand Alone
6.1.2 Recognise the Channel’s Unique Features
6.1.3 Timeliness and Context Awareness
6.1.4 Relevance
6.1.5 Value
6.1.6 Opt-in Only
6.2 Recommendations

Companies Listed

12snap
3 Italy
3 UK
3GPP
ABC
ABN-Amro
Absolut Vodka
Action Engine
ActiveMedia
Adidas
AdMob
Air2Web
AirG
Airwide Solutions
Alltel Wireless
American Express
Anatel
Anheuser Busch
AOL
Apple
Asda
Ask Network
AT&T
BBC
Bell Mobility
BenQ
Bertelsmann
Blockbuster
Blyk
Boost Mobile
Bouygues Telecom
BT
Buena Vista
Buongiorno Vitaminic
Cadbury
Calvin Klein
Canalsat
Captive Interactive
CBS
Channel 4
Cherrysauce
China Mobile
Cineworld
Cingular Wireless
Citibank
Coca-Cola
Conde Nast
Crown Castle International
Cuervo
D2 Communications
Dimension 5
Domino’s Pizza
Dunkin’ Donuts
Dynetic
EDC
Emexus
Endemol
Enpocket
ESPN
ESPN Mobile
Flytxt
Ford
Fox Broadcasting Company
g8wave
Gavitec AG
General Motors
Gizmondo
Google
Halfords
Harvest Media Group
HBO Mobile
HipCricket
HP
HTC
Hutchinson Whampoa
Hypertag
ICSTIS
Index Group
InfoGin
InfoSpace
ING-Barings
Ingenio
Intel
ipsh!
ITV
Jamba
KDDI
Kelloggs
Leap Wireless
LG
LogicaCMG
L’Oreal
Master Card
MauiGames
mBlox
McDonalds
Medio Systems
Microsoft
Midwest Wireless
MindMatics
mkodo
Mobile 365
Mobile Data Association (MDA)
Mobile Information Access (mia)
Mobile Marketing Association
Mobile Media Sales
MobilePeople
MobiTV
Mobliss
Mobot
MotionBridge
Motorola
m-Qube
m-spatial
MTV
MySpace
NBC Mobile
NBC Universal Digital Media
Neo One
NeoMedia
Netsize
Nextcode
Nike
Nokia
NTT DoCoMo
O2 UK
O2 Ireland
O2 Nederland
Odeon
Opera Telecom
Orange France
Orange UK
Palm
PaperClick
Pepsi
Phonevalley
Pizza Hut
Premier Travel Inn
Proctor and Gamble
Qualcomm
Que Pasa
Refresh Mobile
RIM/BlackBerry
Rogers Wireless
Route 66
Samsung
Sainsbury’s
Sanyo
Screen Tonic
Sensis
SFR
SK Telecom
Sky
Soapbox Mobile
Sony
Sony Ericsson
Sony Pictures
Sprint Nextel
SquareLoop
Telefónica Móviles
Telescope
Telia
Telus Mobility
Tesco
Texas Instruments
The Chrysalis Group
Third Screen Media
Time Warner Cable
T-Mobile Austria
T-Mobile Germany
T-Mobile UK
T-Mobile USA
Trimble
Turner Broadcasting
Twelve Horses
Twentieth Television
Unilever
Universal Music Group
Upstream
USA Today
Verizon Wireless
Vibes
Vidiator
Virgin Mobile
VISA
Vivendi Universal
Vivid Entertainment
Vodafone Ireland
Vodafone Japan
Vodafone UK
Vue
Walt Disney
Warner Bros
WATISIT
Weather Channel
Weather Channel Interactive
Western Wireless
Xero Mobile
Yahoo!
Yell.com
Zamano