Industry Research Reports and Market Analysis at MindBranch.com
  

Mobile Advertising and Marketing: Market Analysis and Forecasts 2006-2011

Product Type: Market Research Report
Published by: Visiongain
Published: March 2006
Product Code: R155-165
Description
Mobile advertising is coming to a phone near you - but simply translating existing models won't work.

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.

Operators in the U.S. and Western Europe 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 will launch advertising in H1 2006 within their multimedia offering. 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.

From 2005 when the nascent market garnered $255 million in Europe and the United States, mobile marketing and advertising in these two geographical areas will grow to exceed $1 billion in 2009, provided certain elements fall into place. 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 170+ 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.

Questions answered in this report include:
  • What % of brand advertising and marketing budgets will go on the mobile channel by 2011 and what will be the associated revenues?
  • Where are the biggest market opportunities?
  • How does mobile advertising compare to online and traditional media?
  • What advertising models exist and which ones will account for the biggest market?
  • What types of mobile advertising are most likely to succeed?
  • How can operators and other companies in the value chain best position themselves?
Why you should buy this report:
  • 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.
  • 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.
  • 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.
Please Note: Reports are sold based on the user licenses indicated. The Publisher delivers the report in Flash format via the publisher website, allowing viewing and printing capabilities only. Within one to two business days after placing the order, the Publisher will email the client with information on accessing their purchase. Prior to initiating fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.
Table of Contents
Chapter 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 Multiple Advertising Opportunities Exist

1.5 Challenges and Issues to Consider

1.6 Market Forecasts

1.7 Conclusions




Chapter 2 Introduction

2.1 The Emergence of Mobile Marketing and Advertising


2.2.1 Technology to the Rescue

2.2.2 New Opportunities for Brands and Entertainment


2.3 Will Consumers Accept Advertising on Their Mobile Phones?


2.3.1 Opt-in and opt-out


2.4 The Bottom Line

2.5 Research Methodology

2.6 Focus and Objectives of the Report




Chapter 3 Strategic Overview

3.1 Mobile Phone Usage


Table 3.1: Mobile subscribers, 2004-2010

Table 3.2: Number of Handsets in Use and Penetration Rates in Selected Countries


3.2 Handset Revenues

3.4 Impetus for Mobile Phone Upgrades

3.5 Adoption of New Technologies


Chart 3.1: US subscribers purchasing mobile video content, 2005 & 2010 (millions)


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



Chart 3.2: Mobile Operators' Data Revenues, as % of total Wireless Revenue (by Region)


3.7.1 Which Operators are Most Likely to Embrace Mobile Advertising?

3.7.2 Achieving Synergies Between Advertising and Content




Chapter 4 Market Analysis and Forecasts

4.1 From Voice to Rich Media


Chart 4.1: Penetration of multimedia-enabled handsets by region


4.2 Japan: The Mobile Advertising Pioneers


4.2.1 Japan's Early Entrance into Mobile Advertising

4.2.2 Video formatted advertisements


Chart 4.2: Mobile marketing and advertising expenditures in Japan, 2006 & 2009


4.2.2 Mobile Advertising in Korea


4.3 Terminology

4.4 The Mobile Channel


4.4.1 A New Channel with Unique Characteristics

4.4.2 What Can Mobile Marketing and Advertising Accomplish?


4.4.2.1 Mobile Advertising Market Drivers


4.4.3 Barriers to Successful Mobile Marketing and Advertising


4.4.3.1 Technological Barriers

4.4.3.2 Attitudinal Barriers

4.4.3.3 Mobile advertising will not work for all products and services



4.5 Advantages of Mobile Advertising and Marketing


Table 4.1: Comparison of Media Campaign Response Rates

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 SMS

4.7.2 Premium SMS

4.7.3 Voice SMS

4.7.4 MMS


4.7.4.1 Premium MMS Campaigns


4.7.5 LBS



Chart 4.3: LBS subscribers by region, 2005


4.7.5.1 Push- vs Pull-Based Mobile Advertising


4.7.6 Mobile Banner Ads

4.7.7 Games



Chart 4.4: Total Global Revenues from Mobile Gaming, 2005-2010 ($ billions)


4.7.7.1 Advertising is being embedded in many games in multiple ways

4.7.7.2 In-game advertising spending


4.7.8 Multimedia - Music, Video, TV


4.7.8.1 Mobile Music and Advertising

4.7.8.2 Mobile Video Advertising

4.7.8.3 Advertising Through Mobile TV


4.7.8.3.1 Determining the Mobile TV Ad Model

4.7.8.3.2 Advertisers will find the mobile channel an increasingly attractive alternative to TV

4.7.8.3.3 Differences Between Advertising on Mobile and Regular TV

4.7.8.3.4 Mobile TV Advertising is Seeing Early Traction in the US

4.7.8.3.5 Mobile TV Presents a Significant Opportunity for Advertising


Chart 4.5: Global mobile TV subscribers, 2005-2010




4.7.9 Adult Content


4.7.9.1 Adult Content Provides a Good Opportunity for Multimedia Ads


Chart 4.6: % of searches relating to adult material on PCs and mobile handsets



4.7.10 The Future of Messaging and Rich Media


4.7.10.1 Which Technology is Most promising for Mobile Advertising?


4.7.11 Differences Between Europe and the United States


4.8.1 Fixed-Line and Mobile Phones


4.8.2 Pre-paid vs. Contract

4.8.3 Attitudinal Differences


Chart 4.7: European wireless users are willing to receive SMS- promotions on their phones


4.8.4 Structural Differences


Table 4.3: Penetration of 3G Phones per Country in Western Europe, 2005-2010



4.9 Characteristics of the European Market



Table 4.4: Relative Monthly Consumption of Mobile Data Services By Type Over 2G and 3G Networks, Quarter Ended December 2005


4.9.1 UK market


Table 4.5: U.K. Mobile Subscriber Monthly Consumption of Content and Applications


4.9.1.1 Mobile Advertising Activity is on the Increase


Chart 4.8: Mobile Advertising Spending in the UK, 2005 & 2006



4.10 Characteristics of the U.S. market



Table 4.6: Mobile Content and Applications Used by U.S. Mobile Subscribers


4.10.1 SMS in the U.S.-The American Idol Effect


Chart 4.9: Percent of U.S. Mobile Phone Subscribers Who Have Used SMS, by Age Grouping


4.10.2 MMS

4.10.3 Multimedia


Chart 4.10: US 3G subs vs. total subs growth, 2005-2010

Table 4.7: U.S. Consumers Who Watch TV Programs on Mobile Phones


4.10.4 TV Broadcasters and Other Entertainment Providers


4.10.4.1 Hollywood Takes Control of its Content

4.10.4.2 NBC Mobile

4.10.4.3 CBS Mobile Content

4.10.4.3 ABC

4.10.4.4 ESPN


4.10.4.4.1 ESPN's Mobile Advertising Strategy


4.10.4.5 MTV Looks to Mobile Advertising-Based Business Model

4.10.4.6 Warner Bros


4.10.4.6.1 Warner Bros' Revenue Share Concerns



4.10.5 Advertising Opportunities with Mobisodes

4.10.6 Magazines Embrace the Mobile Channel with Mobizines


4.10.6.1 Advertising on Mobizines



4.11 Privacy and Spam Considerations


4.11.1 Regulations

4.11.2 Attitudes Towards Spam


4.11.2.1 Perceptions of Spam in the US and Europe Among Operators and Consumers



4.12 Demographics


4.12.1 Targeting the Right Product Advertising Towards the Right Age Group

4.12.2 Advanced Mobile Service Users

4.12.3 The Sweet Spot Ages


4.13 Key Players in Providing Content to the End-User



Table 4.8: Mobile Marketing/Advertising Participants


4.13.1 Agencies

4.13.2 Mobile Marketing Specialists

4.13.3 Aggregators/Gateway Providers


4.14 The Role of Wireless Network Operators


4.14.1 Operator Positioning in the Mobile Advertising Value Chain

4.14.2 Operator Attitudes to Full-Scale Advertising


4.15 Revenue Sharing and Billing


4.15.1 Display Advertising Cause Revenue Sharing Splits to be More Evenly Distributed

4.15.2 Technology Services Billing

4.15.3 Premium SMS


Table 4.9: Premium SMS Revenue Sharing Splits - U.S.



4.18 Cost of mobile campaigns


Table 4.10: Mobile advertising cost comparison by bearer technology


4.19 How will mobile advertising evolve?


Figure 4.1: Mobile Advertising and Marketing Market Evolution


4.20 Alternative Advertising Models


4.20.1 Sponsorship of Mobile Services

4.20.2 Advertising funded content


4.21 Mobile Search


4.21.1 Internet Search vs. Mobile Search

4.21.2 Mobile Search Takes Off


Chart 4.11: Unique users visiting Yahoo!'s and Google's mobile search interface


4.21.3 Proliferation of Major Search Engines into Mobile is Stimulating the Market

4.21.3 Contextual Advertising will Become a Lucrative Market


4.22 Market Forecasts


Chart 4.12: Global Mobile Search Advertising and Marketing Spend, 2005-2011

Chart 4.13: Mobile Advertising Investment by Region, 2005-2011

Chart 4.14: Mobile Marketing Investment by Region, 2005-2011

Chart 4.15: Mobile Advertising Revenues, 2006-2011


4.23 Market Trends


4.23.1 Emergence of more one-stop shops

4.23.2 Emergence of mobile advertising specialists

4.23.3 Outsourcing of Mobile Advertising and Marketing

4.23.4 Demographic Changes will Shift Types of Mobile Advertising and Marketing

4.23.5 Mobile Search Growth

4.23.6 The Fall of the Walled Garden

4.23.7 Falling Costs of Mobile Advertising and Marketing

4.23.8 Increasing Importance of CRM to Mobile Brands and Advertisers

4.23.9 Evolution of a Sustainable Mobile Advertising Business Model

4.23.10 Ad-subsidised MVNOs


4.24 Chapter Conclusions




Chapter 5 Competitive Landscape


Table 5.1: Major Mobile Players by Category in the Mobile and Advertising Space


5.1 North American Marketing, Media, Access, and Platform Companies


5.1.1 Air2Web

5.1.2 AdMob


Chart 5.1: AdMob Revenue Split with Publishers

Chart 5.2: AdMob Revenue Split with Ad Source Partners


5.1.3 Captive Interactive

5.1.4 Enpocket

5.1.5 Mobile 365

5.1.6 g8wave

5.1.7 ipsh!


Table 5.3: ipsh! clients


5.1.8 mBlox

5.1.9 mia

5.1.10 MobiTV


5.1.10.1 MobiTV's Advertising Strategy

5.1.10.2 Advertising for live mobile TV and on-demand mobile TV

5.1.10.3 Future Opportunities


5.1.11 Mobliss

5.1.12 Modeo

5.1.13 m-Qube

5.1.14 Neven Vision

5.1.15 Nextcode

5.1.16 PaperClick/NeoMedia

5.1.17 QUALCOMM/MediaFLO


5.1.17.1 MediaFLO's Advertising Strategy


5.1.18 Soapbox Mobile

5.1.19 SquareLoop

5.1.20 Telescope

5.1.21 Third Screen Media

5.1.22 Twelve Horses

5.1.23 Versaly Entertainment

5.1.24 Vibes

5.1.25 Vidiator


5.2 European Marketing, Media, Access, and Platform Companies


5.2.1 12snap

5.2.2 Active Media

5.2.3 Ad2Hand

5.2.4 Buongiorno

5.2.5 Dynetics

5.2.6 Emexus

5.2.7 Flytxt

5.2.8 MindMatics

5.2.9 mkodo

5.2.10 Netsize

5.2.11 Opera Telecom

5.2.12 Phonevalley

5.2.13 Que Pasa

5.2.14 Screen Tonic

5.2.15 Streamezzo

5.2.16 Upstream

5.2.17 Watisit

5.2.18 Zamano


5.3 Mobile Search Firms


5.3.1 Google


5.3.1.1 Looking to the Third Screen

5.3.1.2 Click-to-call advertising service

5.3.1.3 Call-on-select

5.3.1.4 Towards mobile location-based advertising?


5.3.2 Yahoo!


5.3.2.1 Yahoo!'s Mobile Advertising Strategy


5.3.3 Microsoft


5.3.3.1 Integrating mobile search capability


5.3.4 Action Engine

5.3.5 4INFO

5.3.6 iCrossing

5.3.7 Ingenio

5.3.8 m-Spatial


5.4 Mobile Operators' Advertising Strategies


5.4.1 North American Operators


5.4.1.1 Cingular Wireless

5.4.1.2 Sprint Nextel

5.4.1.4 T-Mobile USA

5.4.1.5 Verizon Wireless


5.4.2 European Operators


5.4.2.1 Orange

5.4.2.3 O2

5.4.2.4 SFR

5.4.2.5 Hutchison


5.4.2.5.1 3 UK

5.4.2.5.1 3 Italy


5.4.2.6 T-Mobile International

5.4.2.7 Telefónica Móviles

5.4.2.8 Vodafone



5.5 Handset Manufacturers


5.5.1 Nokia

5.5.2 Samsung

5.5.3 Sanyo


5.6 Trade Associations


5.6.1 Mobile Marketing Association (MMA)

5.6.2 Mobile Entertainment Forum

5.6.3 Mobile Data Association

5.6.4 ICSTIS




Chapter 6 Case Studies

6.1 Flytxt and Orange UK


6.1.1 Objectives

6.1.2 Solution

6.1.3 Results


6.2 m-Qube and NBC/Endemol Entertainment


6.2.1 Objective

6.2.2 Solution

6.2.3 Results


6.3 12snap and Coca Cola


6.3.1 Objective

6.3.2 Solution

6.3.3 Results


6.4 Mobile 365 and Volvo


6.4.1 Objective

6.4.2 Solution

6.4.3 Results




Chapter 7 Strategies for Success and Recommendations

7.1 Strategies


7.1.1 Mobile Advertising/Marketing Doesn't Stand Alone

7.1.2 Recognise the Channel's Unique Features

7.1.3 Timeliness and Context Awareness

7.1.4 Relevance

7.1.5 Value

7.1.6 Opt-in Only


7.2 Recommendations




Appendix A Lead author's biography




Appendix B About visiongain




Appendix C Report evaluation form




Key Companies

12snap

3 Italy

3 UK

3GPP

4INFO

ABC

ABN-Amro

Absolut Vodka

Action Engine

ActiveMedia

ActiveSky

Adidas

AdMob

Aicent

Air2Web

AirCROSS

Airwide Solutions

Alltel Wireless

American Express

Anheuser Busch

AOL

Apple

Arqiva

BBC

Bell Mobility

Bertelsmann

Blockbuster

Boost Mobile

Boulanger

Bouygues Telecom

BT

Buongiorno Vitaminic

Cadbury

Calvin Klein

Canalsat

Captive Interactive

CBS

Channel 4

Cherrysauce

Chrysler

Cingular Wireless

Citibank

Citroen

Coca-Cola

Conde Nast

Crown Castle International

Cuervo

D2 Communications

Dentsu

Dimension 5

Dunkin' Donuts

Dynetic

Emexus

Empower Interactive

Endemol

Enpocket

ESPN

ESPN Mobile

Experian

Fandango

Flytxt

Ford

Fox Broadcasting Company

g8wave

Gavitec AG

General Motors

Gizmondo

go2

Google

Graphico

Harvest Media Group.

HBO Mobile

Hilton Hotels

HipCricket

HP

Hutchinson Whampoa

ICSTIS

Index Group

InfoGin

InfoSpace,

ING-Barings

Ingenio

Intel

Internet Broadcasting

ipsh!

ITV

Jamba

KDDI

Kelloggs

Leap Wireless

LG

LogicaCMG

Master Card

MauiGames

mBlox

McDonalds

Microsoft

Midwest Wireless

MindMatics

mkodo

Mobile 365

Mobile Data Association (MDA)

Mobile DTV Alliance

Mobile Information Access (mia)

Mobile Marketing Association

Mobile Media Sales

MobiTV

Mobliss

Mobot

Modeo

MotionBridge

Motorola

m-Qube

m-spatial

MTV,

NBC Mobile

NBC Universal Digital Media

Neo One

NeoMedia

NeoMedia Technologies

Netsize

Neven Vision

Nextcode

Nike

Nokia

NTT DoCoMo

O2 UK

O2 Ireland

O2 Nederland

Omnicom Group

Opera Telecom

Orange France

Orange UK

Palm

PaperClick

Pepsi

Phonevalley

Pot Noodle

Proctor and Gamble

Qualcomm

Que Pasa

Refresh Mobile

Rogers Wireless

Samsung

Sanyo

Screen Tonic

SFR

Sharp

SK Telecom

Sky

SmartVideo Technologies

Soapbox Mobile

Sony

Sony Ericsson

Sony Pictures

Sprint Nextel

Sponge

SquareLoop

Telefónica Móviles

Telescope

Telia

Telus Mobility

Texas Instruments

The Chrysalis Group

Third Screen Media

Time Warner Cable

T-Mobile Austria

T-Mobile Germany

T-Mobile UK

T-Mobile USA

Turner Broadcasting

Twelve Horses

Twentieth Television

Unilever

Universal Music Group

Upstream

USA Today

Verizon Wireless

Versaly Entertainment

Vibes

Vidiator

Vindigo

Virgin Mobile

VISA

Vivendi Universal

Vivid Entertainment

Vodafone Ireland

Vodafone Japan

Vodafone UK

Walt Disney Co

Warner Bros

WATISIT

Weather Channel

Weather Channel Interactive

Western Wireless

Xero Mobile

Yahoo!

Zamano

Ordering and More Information
Price and Delivery Options



MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence.