Mobile Advertising Business Models : Market Research Report

Mobile Advertising Business Models

Published by: In-Stat

Published: Mar. 11, 2008 - 36 Pages

Executive Summary: Introduction—The Reality of Mobile Advertising; Definitions and Scope of this Research; New Media: Online and Search Advertising; Banner Advertising; Search Advertising; The Newer Medium: Mobile; Bringing the Lessons of Online Advertising to Mobile; Measuring Audience and Reach; The Call to Action; Mobile Advertising vs. Other Advertising Media; Advantages of Mobile Advertising; Disadvantages of Mobile Advertising; Improving Environment for Mobile Advertising; Mobile Advertising Business Models; Types of Mobile Advertisements; Message Advertisements; Banner and Display; In-Application; Video; Opportunities, Expectations, and Hype; Advertising-Supported Cellular Service; Location-Aware Search (Proximity Search); Practitioners and Initiatives; Banner and Display Ads; AdMob; Third Screen Media; Mobile Posse; Search Ads; JumpTap; Google; Yahoo; Ad-Supported Services; Virgin’s Mobile USA; Blyk; Recent Developments; The iPhone Effect; The Google Effect; M&A: Web Companies Head to Mobile; Quick Poll: Exposure and Reaction to Mobile Advertising; Awareness of Mobile Advertisements; Actions Taken in Response to Mobile Advertising; Overall Attitude toward Mobile Advertising; Conclusions; Market Accelerators; Maturing of the Online Advertising Market; Improvements in Cellphone Capabilities; Awareness of Mobile Users’ Needs; Movement toward Mobile Payments; Market Barriers; Mobile Internet Users and Flat-Rate Data Pricing; Compatible Cellphones; Independent Analytics; Sufficient Interest from Advertisers; Conflicts; Outlook; Appendix: Advertiser-Supported Wireless Service; Methodology; Survey Data; Companies Interviewed for this Research; Related In-Stat Reports
List of Tables: Table 1. Awareness of Mobile Advertising; Table 2. Actions Taken as a Result of Mobile Advertising (base: have seen a mobile ad); Table 3. Attitude Toward Mobile Advertising (base: all respondents)
List of Figures: Figure 1. Attitude Toward Mobile Advertising (base: do not find mobile ads unacceptable); Figure 2. Mobile Advertising Ecosystem; Figure 3. CPM, CPC and CPA; Figure 4. Banner Ad; Figure 5. Display Advertisement; Figure 6. Awareness of Mobile Advertising; Figure 7. Ad Awareness by US Mobile Operator; Figure 8. Actions Taken as a Result of Mobile Advertising (base: have responded to mobile ad); Figure 9. Attitude Toward Mobile Advertising (base: do not find mobile ads unacceptable); Figure 10. Breakeven Point, Ad-Supported Cellphone (Cost: US$32/month)

Abstract

In the glorious but unlamented dotcom boom, the key goal for many online applications seemed to be "attracting eyeballs" (users) who would then attract enough advertising revenue to become ad supported. The term "ad-supported" is being heard more frequently in the mobile market as well, with applications, content, and even cellular service being considered. Emboldened by the success of Google and the millions of web sites earning money with Google advertising, dozens of new companies have set their sights on the cellphone as the next advertising opportunity.

The potential market for mobile advertising ranges from the relatively unsophisticated small advertising buyers attracted to Google and large scale national and international "brand" advertisers (automakers, soft drinks, fast food), who demand rigorous measurement methods before they'll part with their 9-figure ad budgets.

This report identifies the key drivers that are moving mobile advertising forward and identifies several items making cellphones a unique advertising medium. There is also information about various mobile advertising business models and the companies that are most influential in the market.

The research also examines the effects of the iPhone and the Google phone and examines the notion of advertising-supported cellular service.

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Mobile Advertising Business Models

Table of Contents

Abstract