Mobile Marketing & Advertising 2013: Challenges and Opportunities

• Publication date: November 2012
• Report size: 52 pages

No longer a niche value-added service (VAS), mobile marketing and advertising is now a mainstream service offering. As is the case with many VAS applications, there is an interdependency between the mobile operator and various third parties including media companies, advertisers, portals, content providers, brands, and various other intermediaries. Drivers for mobile marketing include a dramatic increase in smartphone usage, over-the-top appli...

No longer a niche value-added service (VAS), mobile marketing and advertising is now a mainstream service offering. As is the case with many VAS applications, there is an interdependency between the mobile operator and various third parties including media companies, advertisers, portals, content providers, brands, and various other intermediaries.
Drivers for mobile marketing include a dramatic increase in smartphone usage, over-the-top applications, introduction of new methods such as abbreviated dial codes, and many other factors. Worldwide share of mobile web traffic alone has increased from 3.8% to 10% from 2010 to 2012. Mobile Internet usage is expected to overtake desktop usage as early as 2014. SMS remains the most common denominator among mobile marketing modalities with approximately 3B SMS enabled phones worldwide. Smartphone penetration of about 1B global users is a significantly gaining end-user target, especially as LTE is deployed allowing for increasingly more interactive, multimedia marketing/advertising solutions.
This research focuses on the challenges and opportunities within mobile marketing and advertising in 2013 and beyond. The report includes a vendor assessment, solution analysis, and prospects for various mobile marketing and advertising modalities. The report also includes the following forecasts:
• Global Mobile Advertising and Marketing Expenditures to 2015
• Global Mobile Advertising and Marketing Expenditures by Ad Type to 2015
• Global Mobile Marketing and Advertising Expenditures by Modality to 2015
Report buyers at the Company-wide license level for this report will also receive a copy of the following reports at no additional charge:
Mobile Marketing in India: Opportunity Analysis and Forecast 2012-2017
Google in Mobile and Online Video Advertising: YouTube, Android, and More
Mobile Bar Code Marketing: Challenges, Opportunities, Global Outlook 2012-2017

Target Audience: 

-Traditional media outlets
-Mobile network operators
-Mobile platform developers
-Mobile advertising networks
-Marketing and advertising agencies
-Smartphone and tablet manufacturers
-Mobile search and content aggregators

Key Findings: 

-Mobile search will grow significantly by 2015 based on various factors including the influence of HTML5
-Smartphones and tablets are playing an increasingly important role in driving mobile ad spending, with mobile searching and mapping the strongest earners. Video and audio mobile ads, meanwhile, are the fastest-growing ad segments, with momentum seen continuing through 2015.
-In game advertising and gamification as a means of engaging consumers with brands will grow significantly to 2015
-Mobile search, especially localized search, will be the dominant activity for marketers to engage consumers with branded communications but they should not ignore the potential of downloadable applications, streaming video, and, most certainly, mobile messaging.
-Display advertising will remain the leading revenue producer through 2015. However, other modalities are catching up rapidly and soon to overtake display with direct response mobile marketing leading the way.

Global Online Advertising Industry

Table of Contents

1.0 BRIGHTNESS ON THE MOBILE ADVERTISING HORIZON 4
1.1 THE RAPIDLY CHANGING MOBILE ADVERTISING LANDSCAPE 4
1.2 MOBILE MESSAGING VENDORS GROW UP 12
1.3 MOBILE MESSAGING, MOBILE SEARCH CRITICAL ADVERTISING TOOL 12
1.4 LOCALIZED MOBILE ADS DRIVE KEY SALES IN SPECIFIC VERTICALS 15
1.5 MOBILE VIDEO AND APPS IS FASTEST GROWING CONTENT SECTOR 18
1.6 DATA TRAFFIC CHANGES FROM MEGABYTE TO GIGABYTE 20
2.0 SECTION 2 THE MOBILE MARKETING OPPORTUNITY 22
2.1 ADVERTISING SPENDING GROWTH FORECASTS 2012 TO 2020 22
2.2 EUROPEAN MOBILE MARKETING WILL GROW GRADUALLY 22
2.3 EUROPE MOBILE MARKETING EFFORTS MATURE SLOWLY 25
2.4 ASIA REMAINS MOBILE GLOBAL LEADER; U.S. LAGS 25
2.5 GROWTH OF MOBILE MARKETING SPENDING FACES CHALLENGES 26
3.0 SECTION 3 MOBILE MARKETING VENDORS MAKE THEIR MARK 28
3.1 SUPPLIERS PROVIDE DIVERSE SET OF OFFERINGS 28
3.2 ADVERTISING NETWORKS VIE FOR LEADING BRAND CLIENTELE 29
3.3 GLOBAL MARKET SPENDING TO REACH $54B BY 2020 33
3.4 MOBILE VIDEO ADVERTISING 41
3.4.1 CASE STUDY: HOW MOBILE VIDEO ADVERTISING CAN INCREASE SALES 41
3.5 YOUTUBE 43
3.5.1 YOUTUBE MOBILE VIDEO ADS 45
3.5.2 CASE STUDY: YOUTUBE VIDEO ADVERTISING WITH MOBILE COMMERCE APPLICATIONS 46
3.5.3 CASE STUDY: VIDEO ADVERTISING IN MOBILE APPS (HOW TO ATTRACT NEW USERS IN A CROWDED APP STORE?) 47
4.0 SECTION 4 RECOMMENDATIONS FOR THE MOBILE MARKETER 49
4.1 DURING AN ECONOMIC DOWNTURN 49
4.2 IMMEDIATE MEASUREMENT OF SUCCESS ATTRACTS ADVERTISERS 50

List of Tables

Table 1 Worldwide Mobile Advertising analysis 5
Table 2 Global Spending on Mobile Advertising and Marketing (in U.S. $ billion), 2011 to 2015 7
Table 3 Percentage of Mobile Subscribers Accessing Mobile Web (at least monthly) 8
Table 4 Percentage of Mobile Web Users Who Never or Rarely Use the Desktop Web 8
Table 5 U.S. Spending by Type of Mobile Marketing and Advertising (in $ millions), 2011 to 2015 9
Table 6 Year-Over-Year Growth Rates in Mobile Ad Spending by Type of Advertising, 2011 to 2015 10
Table 7 Global Spending (in U.S. $ billions) on Mobile Advertising and Marketing by Ad Type, 2011 to 2015 11
Table 8 Subscriber Monthly Consumption of Content and Applications in 2012 14
Table 9 Mobile Content Consumption on iPhones and Smartphones 15
Table 10 Percentage of Searches Conducted Via of Mobile Advice, by Type of Search 17
Table 11 Global Spending (in U.S. $ billions) on Mobile Advertising and Marketing, 2012 to 2016 23
Table 12 Global Spending (in U.S. $billions) on Mobile Advertising and Marketing by Type of Ad, 2012 to 2016 24
Table 13 Global Spending (in U.S. $ billions) on Mobile Advertising and Marketing, 2012, 2015 and 2020 33
Table 14 Global Spending (in U.S. $ billions) on Mobile Marketing and Advertising by Type of Ad, 2012, 2016 and 2020 34