Locally Targetted Mobile Advertising expected to climb to 78% of Mobile Ad spending

Mobile Ads To Hit $4 Billion By 2015

Locally targeted mobile ads will have a 70% share ($2.8 billion) of the expected $4 billion in overall U.S. mobile ad spending by 2015, according to Chantilly, Virginia-based BIA/Kelsey. In addition, total US mobile ad spending will balloon from $790 million in 2010 to $4 billion in 2015. Concurrently, the local portion of that total will increase from $404 million to $2.8 billion. Consequently, the advisory firm projects, locally targeted mobile ads will then make up 51% of overall US mobile ad spending, growing to 70% by 2015.

“Exploding mobile usage, clearer ROI and a shorter purchase funnel will accelerate this demand within display, search and SMS advertising formats,” the report reads. In 2010, overall U.S. mobile advertising was at $790 million. Local mobile advertising’s piece of the pie is $404 million — 51% of the whole mobile advertising market.

The gain is expected when large brand advertisers adapt their marketing goals for the mobile device. That’s thanks to a growing awareness of retail locations, driven by consumers’ increasing smartphone ownership. Once large advertisers move in, BIA/Kelsey says small and medium-sized businesses will also push marketing efforts on mobile. All advertisers will benefit from the clearer return on investment and shorter purchasing funnel.

Mobile advertising sellers will also garner premium pricing on location-targeted ads. Michael Boland, senior analyst and program director of BIA/Kelsey Mobile Local Media practice, stated: “These premiums result from higher performance for locally targeted mobile ads when compared with non-local ads, due to higher relevance, immediacy and consumer buying intent, all of which are more prevalent in mobile than many other print and digital media.”

Bottom Line: Further targeting coupled with LBS and Geo-Fencing advancements will drive an increase in local advertising. Advertisers quickly need to focus on capturing intent to deliver greater ROI on each placement. Mobile is very focused and directive and therefore conversion cannot be ignored.

Let QWASI develop a conversion strategy off your mobile display, in-app advertisements, SMS ads and other placements. For more information on mobile marketing or other QWASI services, contact us today @ 877-747-9274.

June 25, 2011 in Blog   |   No Comments

Local Search powers 30% of all Mobile Searches

Google this week shared some very powerful and persuasive data about local search on mobile phones and devices. Diana Pouliot, Director of Mobile Advertising, Google, Inc, shared with those in attendance at the CTIA Wireless Conference Mobile Marketing & Advertising forum that 30% (one-third) of all Google searches on the mobile web are about some aspect of the searcher’s local environment.

Paul Feng, Google’s Mobile-Ads Group Product Manager, expounded on Google’s efforts to make the search giant’s advertising reach as “local as possible”. Some efforts underway include developing new ad formats. Feng suggested further tweaking of those formats in the near future – changes that may even involve new forms of user interaction, including navigation. “We think of location as a hugely important signal.”

And Google is admittedly hard at work optimizing advertising platforms for the increasing pertinence of “local-intent” in a substantial chunk of all mobile searches. Google, however, isn’t along in its efforts. For example, this week Yahoo’s sales reps are “going after big companies with outlets that advertise in local newspapers and on regional radio stations and Web sites.” The marketers referenced include Dunkin’ Donuts, Burger King, Pizza Hut, State Farm Insurance and Home Depot.

The mobile industry seems to agree: analysts are now forecasting and predicting that location-based mobile spending will top $4 billion in 2015. That’s up from just $34 million spent just last year.

Mobile Marketing and Mobile Advertising center on location, location, location. Certainly already a very familiar concept in real estate marketing and other industries that base it’s value around location including: billboards, channel position on cable channels, online marketing (above or below the fold), land value, store traffic, etc.

Bottom Line: Local Intent will drive mobile marketing and advertising.

March 25, 2010 in Blog   |   1 Comment

Google/AdMob – new focus on Mobile Advertising

Google Inc. is acquiring AdMob, a mobile display ad technology provider, for $750 million in stock. AdMob offers a variety of mobile advertising tools for creating, serving and analyzing emerging mobile ads formats.

“Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time,” said Susan Wojcicki, VP of product management at Google in a statement. “AdMob is the quintessential Silicon Valley startup — generating impressive year on year revenue growth — and we’re excited to welcome this talented team to Google.”

AdMob brings an extensive network of display ad inventory on 15,000 mobile Web sites and applications for iPhone and Android along with mobile web banners. To date, AdMob has been one of the largest (if not the largest) mobile ad network for in-app ad inventory on the iPhone. This has brought new implications for demographic targeting and audience segmentation to Google. The combination of AdMob’s display and in-app advertising coupled with search adverticing makes Google king of the hill again in mobile.

What does this mean for Mobile Marketing and Advertising?

First, it’s clear that Google is serious about mobile advertising and sees the space as a growth market. We too are excited about the space and the future mobile advertising holds for marketers, brands and consumers. Google also brings credibility (think about online advertising BEFORE AdWords). The ease of use AdMob is able to demonstrate with it’s platform will also lead to a better advertiser experience when researching and placing mobile advertisements. This deal also brings better ad formats and options to Google – something Google knows very well how to monetize.

In addition, Google will ad focus to this emerging market opportunity of self-service advertising. Google will help bring mobile to an entirely new audience. Google has been testing mobile advertising for several years with their own mobile search, banner and in-app ad networks and now mobile analytics.

What Admob did was to help businesses and agencies navigate the space with a platform that is easy to use and has evolved from text links to interactive banners and in App advertisements.

Next, this move will lead to a shift in mobile acquisition and bring new investment to mobile. Let’s face it, it’s great to run a mobile ad, but to covert traffic is an entirely separate event. Then to resell or market to these new prospects and finally, lead them to water – the Holy Grail – a purchase or some sort of transaction. This will also lead to greater focus on Mobile Analytics too over the entire mobile ecosystem.

This purchase is very similar to other acquisitions made by AOL (Third Screen Media), MicroSoft (TellMe and ScreenTonic) and Yahoo (Actionality and RightMedia).

With Google sitting on top of the mobile advertising scene, it still leaves other competitors to focus on their edge over the other companies. These companies include Quattro Wireless, Millennial Media, Jumptap and 4INFO to name a few.

Mobile Advertising Projected Growth

Gartner projects that the worldwide revenue for mobile advertising will be $13.5 billion in 2013, up from around $500 million in 2008. This includes mobile banner ads, SMS, text links, search and maps, ads in applications and games, ads in videos and TV shown on a mobile phone. Until now, Google has focused mainly on search advertising, but this deal signals that it has its sights set on other areas as well.

Focusing on display, search and messaging-based advertising, eMarketer predicts that U.S. mobile advertising spending will grow from $320 million last year to $416 million this year to more than $1.5 billion by 2013.

———————–
QWASI brings results to your mobile advertising buy. Contact us today to learn more. Call us toll-free at 877-747-9274.

November 10, 2009 in Blog   |   No Comments