Thursday, August 28, 2008

Mobile advertising market will be worth over $12 billion by 2011

Worldwide mobile advertising market alone will be worth over $12 billion by 2011 as telecom carriers around the world are turning their attention to advertising as a potential source of revenue, according to a new forecast by Gartner.

The Gartner report conclude that telecom operators will need to overcome some key challenges to realize their advertising ambitions. Those challenges include the need to disrupt the current distribution of advertising money between competing media channels and convince advertisers and marketers that their various channels, customer knowledge, analytics and network control features can reach the intended audience more effectively than traditional channels.

"If a carrier can execute its advertising strategy well and overcome the key challenges, it could move quickly to reap the benefits," said King-Yew Foong, research director at Gartner. "Carriers can expect to become an integral part of consumers' lifestyles when they can reliably deliver relevant advertisements to them. This will require closer cooperation and partnerships with other businesses, such as retailers, restaurants and cinemas."

The report entitled "How Carriers Can Position Themselves to win in the Advertising Market" also said that if telecom carriers are to compete effectively for advertising revenue, they must convince advertisers and marketers of the effectiveness and value of their approach while distinguishing their value proposition from companies such as Google, Yahoo, Microsoft and traditional media such as television broadcasters and newspapers. By developing the skills to enable them to do these things, telecom carriers will also improve their understanding of the advertisers' perspective and how to meet advertisers' requirements, such as audience validation.

Saturday, June 28, 2008

innerActive Co-CEO to participate in panel discussion at IMA Mobile Advertising conference

Offer Yehudai, Co-CEO and Co-Founder of innerActive Smart Media, will participate in a panel discussion entitled, “Ads & Content Infrastructure – Barriers & Accelerators” at IMA Mobile Advertising conference.

The members of panel, which will moderate Lior Zadicareo, Managing Partner, Starvision Partners, include: Eran Hertzmann, Head of Mobile Advertising, Mobixell Networks; Ilan Weizman, VP Marketing, Surf Communication Solutions; Guy Horowitz, Dir. Strategy, modu; and Ariel Maislos, Founder & CEO, puddingmedia.

The panel will to discuss the crucial issue of the future of mobile in-game advertising such as:

  • Does advertising is an opportunity for brand companies?
  • Which content are suited for mobile ad-funded?
  • How likely are mobile ad campaigns to attract advertisers?
  • Are mobil phone users are willing to receive advertising in exchange for free digital content?

Worldwide mobile advertising is projected to surpass $2.7 billion in 2008, up from $1.7 billion in 2007, according to Gartner forecast (March 2008). The industry is poised for consistent growth and by the end of 2011 worldwide mobile advertising revenue is forecast to surpass $12.8 billion.

The event entitled, “Mobile Advertising: Exploring the Potential beyond the Hype”, is organized by The Israel Mobile and Communications Association (IMA) and will be held on June 29, 2008, at Gan Oranim, Tel-Aviv.

Thursday, March 13, 2008

More Advertisers to deploy mobile coupons

More advertisers are expected to use mobile coupons or promotions next year, although anticipated growth will remain in single digits, according to a report Mobile Coupons: Identifying New Opportunities Beyond Early Trials,” published by JupiterResearch.

The study conclude that mobile coupon must focus on highly relevant offers, deliver value, manage frequency, and give the consumer control, in order to be truly successful. Currently, 30% of the consumers are interested in receiving coupons on their mobile phones.

"Mobile coupons are gaining traction among advertisers, and are no longer just a niche tactic, rather they are moving toward the mainstream to more common use,” explained Neil Strother, analyst with JupiterResearch and lead author of the report. “There are definite benefits to using mobile coupons such as real-time offers, geo-targeting, personalization, time-of-day redemption tracking, triggering impulse purchases, and a lower cost of delivery. But while there is tremendous untapped potential, there are still barriers that exist.”

Redemption methods are one key inhibitor to wider use by advertisers. Few retailers have systems able to read coupons directly from handset screens. This lack means the POS requires another way of verifying and tracking. Current methods include the following: entering the code manually in a cash register; matching it with a customer’s loyalty card number; or writing it down on paper—the least preferable way. But while there are still hurdles that need to be cleared, this method of mobile marketing presents some potential and clear benefits to advertisers.

Wednesday, March 5, 2008

28 million US mobile user responded to mobile ads

28 million American mobile phone users in US (11.5% of all US mobile subscribers) responded to mobile advertisement such as banner ads on mobile web pages, SMS advertising, or video advertising, in the past 30 days, according to the bi-annual Mobile Advertising Report from Nielsen Mobile. Those users say they are open to mobile advertising because it decreases their mobile bill, improves the availability of mobile content or relevant to their interests.

The study reveals that the number of mobile users who recalled seeing mobile advertising between the second and fourth quarters of 2007 increased 38% to 58 million subscribers. Teen data users (ages 13-17) were the most likely age segment to recall seeing mobile advertising - 46% recalled seeing some type of mobile advertisement, compared to 29% of all data users.

"Increasing levels of consumer recall, interaction and receptivity to mobile advertising reinforce the validity of the mobile marketing medium," said Jeff Herrmann, VP of Mobile Media at Nielsen Mobile. "Successful mobile marketers will meet the challenge offered by consumers by engaging with them in a way that adds value to the mobile user content experience."

Nielsen's report findings also show that increasing number of mobile users appear to understand the value proposition of ad-supported mobile content, and expect to see more advertising over their cell phones in the future. 32% of users said they are open to mobile advertising if it lowers their overall bill, 13% said they are open to mobile advertising if it improves the media and content currently available, and 14% said they are already open to mobile advertising so long as it is relevant to their interests. 23% expect to see more mobile advertising in the future.

Tuesday, February 12, 2008

Ad-funded mobile entertainment to generate revenue of $290 million in the UK by 2012

Ad-funded mobile entertainment (AFME), with mobile games and video in particular, is set to generate substantial revenues of $290 million (£145m) by 2012, according to a report by the Mobile Entertainment Forum (MEF).

The report, that takes an in-depth look into the impact of ad-funded mobile entertainment on the on-portal mobile entertainment market in the UK, estimate that ad-funded mobile entertainment will have generated revenue for the UK mobile games market of over $1.2 million in 2008, and by 2012 it will be contributing $82 million.

“There are approximately 3 billion mobile subscribers around the world. Being able to provide them with content for free or at a subsidized cost will drive up mobile content consumption and provide users with targeted, personalized advertising that is meaningful to them,” said Rimma Perelmuter, MEF Executive Director.

NeuStar integrated innerActive's mobile advertising solution in its mobile IM application

NeuStar has embedded innerActive's ad-funded mobile entertainment channel inside its mobile Instant Messaging (IM) application. NeuStar is showcasing the new personalised and contextual mobile advertising based IM solution, at GSMA Mobile World Congress 2008 show.

The solution will enable operators to deliver online advertising through a range of models, including toaster pop-up banners, product placement, and branded information services called "presence-enabled Ad Buddies" through the operator's mobile IM service. Operators will benefit from attractive advertising pricing schemes, and users will benefit from the option of communicating for free or at discounted rates.

"Advertising over mobile IM provides new revenue streams and is creating new partnerships between operators, advertising agencies, brands, publishers, and third party developers to deliver an on-demand, interactive, and rich mobile advertising experience,” said Allen Scott, general manager at NeuStar Next Generation Messaging (NGM). “NeuStar's third party developer program, called the Innovation Zone, is driving innovation over mobile IM -- and innerActive is helping operators to capitalise on the new opportunities mobile IM brings."

NeuStar is a provider of clearinghouse and directory services to the global communications and Internet industry. In November 2006, NeuStar created its Next Generation Messaging Services by acquiring Israeli provider of instant messaging solution, Followap.

Friday, February 8, 2008

Compelling results for innerActive’s UK mobile entertainment trial

The six-week mobile entertainment trial of innerActive in UK shows a very high CTR of 39% on average. The trial with digital entertainment firm Jamster gave mobile users in UK the opportunity to download six free games from the Jamster site, in return for viewing advertising and promotions from sponsors.

The mobile advertisements and promotion features were sponsored by top international brands such as Calvin Klein, Domino's Pizza, Fox, Paramount Pictures and eBay. Incentives included wallpapers, movie trailers, pizza vouchers and prizes such as portable media players.

We think the results of this trial speak for themselves. Our breakthrough technology, which enables us to dynamically embed relevant, contextual advertising and other marketing offers in-game, delivers great results. This new entertainment channel will offer an enriched user experience, reaching a vast and untapped audience and setting a new type of interactive dialogue between advertisers and audiences.