| 2011-12-21
Mobile will account for 15.2 percent of global online ad spend in 2016
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 € 2.6 billion in 2010 at a compound annual growth rate (CAGR) of 37 percent to € 17.2 billion in 2016. This will then correspond to 15.2 percent of the total online advertising market or 3.8 percent of the total global ad spend for all media. 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 a major boom in mobile advertising is on its way after having remained on an experimental stage for several years. “The popularity of smartphones and the increasing availability of mobile media that can include mobile advertising are the main game changers”, said Rickard Andersson, Telecom Analyst, Berg Insight. A common strategy is to increasingly integrate mobile components in traditional media campaigns. “Brands are now progressively embracing the mobile channel, including the entire range of apps from games and entertainment to utility applications. Also mobile web advertising and opt-in SMS campaigns are popular”, said Mr. Andersson. He adds that advertisers are also keen on exploring opportunities with location-based advertising (LBA) making marketing messages hyper-relevant both in time and place. The mobile marketing value chain is still developing and there are a large number of players dedicated to different activities related to mobile advertising. Since the value chain is fragmented and the industry has not yet reached maturity, many different roles are involved. Traditional digital players and major mobile OS providers such as Google, Microsoft, Apple and Yahoo! are in fierce competition over market shares in the mobile advertising space. Facebook is furthermore on the verge of establishing its presence in mobile advertising, and may very well become an important player if leveraging user data for targeted mobile campaigns. There is further a wide range of specialised mobile actors. Examples include the ad network Millennial Media, the ad exchange Smaato and the operator-centric advertising solution provider Amobee. Many acquisitions have recently taken place within the mobile marketing industry and further consolidation is expected to bring about an ecosystem consisting of a few dominant digital advertising networks spanning all types of devices.
poynt and Int is a good thing 2011-11-23
Location-based service revenues in Europe to reach € 435 million by 2016
According to a new research report by Berg Insight, mobile location-based service (LBS) revenues in Europe are forecasted to grow from € 205 million in 2010 at a compound annual growth rate (CAGR) of 13.4 percent to reach € 435 million in 2016. Berg Insight estimates that 20 percent of all mobile subscribers in Europe already use some kind of location-enhanced application on a regular basis. Local search, social networking and navigation services are the top application categories in terms of number of users. The social networking category is forecasted to experience the highest growth in the coming years. In North America, the larger installed base of GPS-enabled handsets and smartphones has enabled higher uptake of LBS. Berg Insight estimates that about one third of mobile subscribers now access LBS on a regular basis. Especially navigation apps have become very popular in North America. However, the intensifying competition in the navigation segment will lead to declining revenues in the next few years. The total North American LBS market is forecasted to grow at a CAGR of 2.3 percent from US$ 620 million in 2010 to reach US$ 710 million in 2016. “Higher adoption of smartphones is driving usage of mobile Internet services and apps in general. As more and more developers add location support in their apps to enhance the user experience, LBS is now gaining mainstream acceptance among mobile subscribers”, said André Malm, Senior Analyst, Berg Insight. He adds that integration of GPS in handsets is an important enabler. “The installed base of GPS handsets in Europe has reached 35 percent of total handsets and surpassed 70 percent in North America.” The revenue model for many mobile apps in the consumer segment is shifting from premium fees to ad-funding. This is also the case for LBS where now also navigation services are becoming free for end-users and developers monetise their offerings through ads and various service bundles. However, revenues may not grow at the same rate as usage since the mobile advertising ecosystem is still nascent. It will take some years before a successful model has been established that allows advertisers to reach out to a critical mass of active users. This is especially true for emerging location-based advertising.
| |