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An Insight into the US Mobile Advertising Market

  • June 2015
  • -
  • Frost & Sullivan
  • -
  • 21 pages

From Rich Media to Native Ads

This Frost & Sullivan insight presents an overview of the existing environment as well as future requirements for the United States mobile advertising market. It highlights the key trends in mobile advertising and discusses the need for next generation mobile advertising solutions that deliver compelling opportunities for brands and marketers to effectively connect with consumers. Finally, it presents the market forecasts for mobile advertising in the United States.

Introduction
This Frost & Sullivan insight presents an overview of the existing environment, as well as future requirements, for the US mobile advertising market. It highlights the key trends in mobile advertising and discusses the need for next generation mobile advertising solutions that deliver compelling opportunities for brands and marketers to effectively connect with consumers. Finally, it presents the market forecasts for mobile advertising in the United States. Throughout this insight, the terms
“advertising” and “ads” are used interchangeably.

Market Overview and Key Definitions

Mobile Advertising
Mobile advertising is the process of describing or presenting a product, a service, an idea, or an organization through mobile communication channels to induce mobile subscribers to buy, interact, or support the item or the entity being advertised. The following are the main channels of mobile advertising:
- Messaging-based mobile advertising
- Mobile Internet-based display advertising
- Mobile video advertising
- In-application mobile advertising
- Search-based advertising
Advertising in these channels could be served by ad networks, ad exchanges, ad mediators, or publishers (with the help of white-label mobile advertising platforms). In the past three years, there has been an emergence of ad technology providers (also referred to as ad-tech providers) offering data-driven mobile advertising solutions to help deliver targeted ads across various media sources.

By leveraging advanced, predictive modelling solutions that can process all data sets related to consumers and making them actionable through machine-learning algorithms that consider multiple conditions beyond just the audience type, ad technology providers have emerged as key entities in the US mobile advertising market. The two dominant forms of mobile advertising messages delivered via traditional mobile advertising channels include: 1) Branding Ads, where the intention is to convey a brand’s message to consumers, and 2) Performance Ads, where the intention is to drive user interaction or traffic to the brand or marketer’s Web site to promote application downloads or acquire customer data for follow up marketing.

Table Of Contents

An Insight into the US Mobile Advertising Market
Contents
Introduction 3
Market Overview and Key Definitions ..3
Mobile Advertising .3
Market Drivers for Mobile Advertising ..4
Next-generation Mobile Devices.5
Advanced Targeting and Monetization Capabilities .6
Demand Side Platforms, Mobile Ad Exchanges, and Real-time Bidding Platforms.6
Efforts of Leading Digital Property Owners and Advertising Major ..7
In-application Mobile Advertising7
The Mobile Advertising Landscape8
Monetization Models.8
Overview of Programmatic Advertising ..8
Defining Programmatic Advertising 8
Demand Side Platforms.10
Data Management Platforms..10
Next Generation Mobile Advertising ..11
The Future of Mobile Advertising.12
Programmatic Mobile Advertising.12
Integrated Platforms 12
Economic Benefits from Consolidated Ad Operations ..14
Growing Popularity of Native Ad Units in Mobile..14
Programmatic Native Ads.15
Cross-device Retargeting .15
Machine Learning for Mobile Advertising .16
Intent-driven Advertising16
Capturing Mobile Moments..16
Other Important Success Factors.17
Improved Tracking of Consumer Activity..17
Market Forecasts .17
Conclusion and the Final Word.19
Legal Disclaimer20
The Frost and Sullivan Story ..21

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