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Mobile Marketing and Advertising

When compared to other forms of advertising (print, Internet, TV, radio, direct mail), mobile is likely growing at a much faster rate because it is considered more cost effective, personalized, and results-driven.  Mobile Marketing & Advertising 2009: Challenges and Opportunities examines the current mobile marketing and advertising market, evaluating methods companies are using to effectively leverage it as a platform to enhance brand awareness and increase sales effectiveness. The report examines the leading suppliers to the mobile marketing industry and analyzes how their products are impacting the way consumers opt-in to cell phone-delivered marketing messages and increasingly use their phones to search for, and even purchase, products and service.

This report provides forecasts and analysis on the global perspective of mobile advertising and marketing, which includes product placement in games, sponsored video, premium content and branded applications. It also provides a forecast for each different mobile type and opportunity. It not only profiles suppliers but also shows how they compare on technological prowess and customer awareness/satisfaction. Finally, the report shows strategies for the largest revenue opportunities.

The report includes:

* Up-to-date consumer survey data by region
* Forecast through 2014 including forecast by global region
* Forecast by mobile marketing type (SMS, video, search, etc)
* Case study examples of mobile marketing and advertising in practice
* Exclusive supplier landscape map by technological prowess and customer awareness/satisfaction

Key Findings:

* Given the exponential adoption of mobile as a communications and promotion platform, Mind Commerce fully expects that global spending on mobile advertising and marketing initiatives will reach nearly $29 billion in 2009, a 59% increase from 2008
* The greatest opportunity for marketing campaign development is likely the mobile video and downloadable applications sector, which we expect will surpass the $1 billion mark in the U.S. in 2009
* Mind Commerce finds that premium content for mobile devices, including streaming video and downloadable applications, is growing at the fastest rate of all mobile marketing types. Not to be ignored, however, is the rising trend of consumers to use their mobile devices for accessing social networks, such as Facebook and MySpace.
*  Mind Commerce estimates the world market for mobile marketing and advertising revenues will reach nearly $50 billion by 2014, up from about $29 billion today, growing at a five-year CAGR rate of nearly 12%. Europe and North America will grow at the fastest rates, about 16% through the period, to reach $16.3 billion and $12.4 billion, respectively.
*  We expect 2009 to be a decisive year for mobile marketing spending as marketers worldwide move from disillusionment over their expected return from this platform to the realization that they can indeed enhance consumer brand equity via the targeted precision and customized experience that mobile affords over other media placements


*  Marketing and Advertising Agencies, and Corporate Marketing Departments. Chief Marketing and Advertising Executives are determining how best to allocate their budgets for 2010 and mobile is certainly on their radar.
* Mobile advertising networks. The suppliers enable different types of mobile ads to be broadcast over mobile networks, in videos, and in other mobile premium content.
* Mobile search and content aggregators. Many are chasing Google but the smaller vendors offer localized search capabilities.
* Cellular phone providers. They carry the millions of text messages, some of them sponsored, and are looking at ways to leverage mobile marketing campaign data for their own use.
* Mobile platform developers. These suppliers create videos, games, downloadable applications for mobile that they in turn use to recruit sponsorship opportunities.
* Traditional media outlets. Broadcast television stations and Internet properties are leveraging mobile to stream newscasts and other premium content.
* Smartphone and PDA manufacturers. They provide the hardware that enable next-generation mobile content possible.

Companies Evaluated in Report:

AdMob AOL Doubleclick Enpocket First Screen Media Google Greystripe iCrossing JumpTap Medio Systems Millennial Media MSN Yahoo! Yellowpages.com Whitepages.com

Companies Mentioned in Report:

ABI Research Admob Apple AT&T Cisco Systems ComScore Dialogic DoubleClick Enpocket Epsilon Fox Interactive Media GFK/NOP Research Go2 Google, Greystripe iCrossing InfoSpace, Internet Advertising Bureau JPMorgan JumpTap, Jupiter Research Medio Systems Millennial Media Millennial Media Mobile Data Association Mobile Marketing Association MSN MySpace Nielsen Nintendo Co Nokia Portio Research PricewaterhouseCoopers Sprint Nextel Strategy Analytics Telephia TGI M:Metrics Third Screen Media’s T-Mobile Twitter.com UpSnap Usable Products Co Virgin Mobile USA Vodafone Whitepages.com Yahoo, Yellowpages.com

Table of Contents:

Section 1    Mobile Marketing and Advertising Grows Up. 5
Global Spending on Mobile Advertising and Marketing Rises5
Few Vendors Will Dominate Mobile Market9
Mobile Messaging and Mobile Search Generate Interest10
Marketers Differ on the Best Messaging Platform.. 11
Mobile Search Will Dominate Subscriber Activity. 14
Mobile Reaches Elusive Younger Male Demographic. 16
U.S. Mobile Searchers Prefer Task-Driven Content17
U.S. Mobile Searchers Prefer Ad-Supported Format, says Survey. 18
Mobile Video and Apps Is Fastest Growing Content Sector. 20

Section 2    The Mobile Marketing Opportunity. 24
Spending Forecasts Vary Among Researchers24
European Mobile Marketing Will Grow Gradually. 25
Europe Mobile Marketing Efforts Mature Slowly. 26
Asia is Mobile Global Leader. 27
Growth of Mobile Marketing Spending Faces Challenges28
One-Third of Mobile Users Recall Advertising Today. 29
Mobile Campaigns are Still Pricey. 31

Section 3    Mobile Marketing Vendor Shakeout32
Suppliers Provide Diverse Set of Offerings32
Google Dominates Mobile Search and Content Aggregation. 33
Advertising Networks Vie for Leading Brand Clientele. 44
Mobile Phone Carriers to Focus on Platform Access49

Section 4    The Mobile Marketing Forecast51
Global Market Spending to Reach $50B by 2014. 51
Immediate Measurement of Success Attracts Advertisers62
Section 5   Recommendations: Plan Mobile Campaigns Now.. 64

List of Figures

Figure 1. Global Spending on Mobile Advertising and Marketing (in U.S. $ billion), 2007 to 2009  8
Figure 2. U.S. Spending by Type of Mobile Marketing and Advertising (in $ billions), 2007 to 2009  9
Figure 3. Percent of Mobile Media Users and Internet Users Who Respond to Advertisements (in Great Britain)13
Figure 4. Mobile Subscriber Monthly Consumption of Content and Applications  14
Figure 5. Global Mobile Content Consumption on iPhones and Smartphones  15
Figure 6. Mobile Search Users (000s) via Mobile Device, Three-Month Average in U.S. and Europe  17
Figure 7. Gender Differences Among Cell Phone Users by European Country  17
Figure 8. Leading Mobile Search Brands by Mobile Searcher Penetration  38
Figure 9: Mobile Search and Content Aggregator Vendor Landscape, 2009  40
Figure 10. Mobile Advertising Network Vendor Landscape  50
Figure 11. U.S. Market Share of Cellular Phone Service Providers  51
Figure 12. Global Mobile Marketing and Advertising Spending Forecast, 2009 to 2014  53
Source: Mind Commerce, 2009  53
Figure 13. Share of Spending on Mobile Marketing and Advertising by Region, 2009 vs. 2014  54
Figure 14. Global Spending on Types of Mobile Marketing, 2009 to 2014  55
Figure 15. 2009 Share of Spending by Mobile Marketing Format56
Figure 16. 2014 Share of Spending by Mobile Marketing Format57
Figure 17. Spending (in $ billions) on Mobile Marketing and Advertising Formats in the U.S., 2009 vs. 2014  58
Figure 18. Spending (in $ billions) on Mobile Marketing and Advertising Formats in China, 2009 vs. 2014  59
Figure 19. Spending ($ in billions) on Mobile Marketing and Advertising Formats in the U.K., 2009 vs. 2014  59

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