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An Insight into the US Mobile Advertising Market

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

Summary

Table of Contents

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.

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