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Brazilian Mobile Advertising Services Market : Application-to-peer SMS Advertising is Expected to Generate a CAGR of 55.5% until 2019, Frost & Sullivan

  • January 2015
  • 42 pages
  • Frost & Sullivan
Report ID: 2621254

Summary

Table of Contents

Key Findings

•Increasing smart devices penetration in Brazil is driving retailers and venue owners’ investment in mobile advertising, and generating a greater expenditure in social network ads as a percentage of total digital ad spending.
•Operator-supported mobile advertising is very beneficial, as operators can leverage geolocation and Big Data analytics to a specific customer’s device or according to customer profile (age, gender and cluster), thus providing greater accuracy for targeting ads at specific groups.
•The growth of content and multimedia services’ usage across different devices is also an important driver for digital advertisers to leverage the ad experience for particular audiences and show the right ad for the right person and in the right context.
•According to a survey conducted by Quanti with x Brazilians, traditional means (e.g., email and SMS) are still largely used by consumers to contact companies through smartphones rather than the use of applications. This is generating opportunities for mobile advertisers to invest in SMS advertising.
•The important participants in the Mobile Advertising Services Market in Brazil today are Zenvia, IMS (Internet Mobile Services) and Telefonica.

Objectives

•To present an analysis of the current state of the Brazilian mobile advertising services market.
•To comment on emerging trends of programmatic mobile ad buying and ad serving in Brazil.
•To present case studies of mobile advertising initiatives.

Scope

•Geographic coverage: Brazil
•Base year: 2013
•Monetary units: US dollars

Research Methodology
Primary research was conducted and secondary research includes the Frost & Sullivan online database, market participants’ websites, and third party research.

Mobile Advertising: It 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 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
•Performance-based mobile advertising Advertising in these mobile channels could be served by ad networks, ad exchanges, ad mediators, or publishers (with the help of white-label mobile advertising platforms).

Objectives

The core objective of mobile advertising is to help brands communicate with customers and prospects who are increasingly on the move. From a functional standpoint, mobile advertising addresses these strategic objectives and processes:
•Building the audience/inventory: creating a pool of mobile users, also known as the advertising “inventory,” who have opted in, which means they have agreed to receive mobile advertising in exchange for something of value. Value received is usually in the form of exclusive content, or special added value as part of a loyalty program.
•Engaging 24/7: making a brand in any vertical readily accessible to mobile users, any time, to provide information, close the sale, and execute a purchase transaction—or any conversion (the brand’s desired outcome).
•Engaging at point of sale (POS): engaging mobile users through methods such as mobile barcodes, and shopping apps.
•Closing the deal: finalizing the sale, or other conversion, and providing the means to do so either online or by enabling the mobile user to pay by swiping the smartphone at a payment scanner at the POS. Smartphone scanning is most often provided using near field communications (NFC).

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