open mobile advertising

The USmA: The United States of Mobile Advertising

Prepared by Nick Lane Chief Analyst, mobileSQUARED

“ Mobile is a conversation that all DDB clients want to have now..69 billion. I must say. known internationally as DDB. I couldn’t quite see my way through it because it still seems rather misty to me. “ I’ve got a vision that these mobile phones could have a greater effect than even television advertising. Jeff Swystun Chief Communications Officer. Mövenpick Ice Creams ” Mövenpick Ice Creams is part of Nestlé. But what I would say to [the mobile industry] is that we need to understand more clearly how this all works. mobile was all ‘gobbledegook’ to me but I’m beginning to get a little bit of what mobile means and can do for me as a brand. © 2010 Smaato Inc. DDB Worldwide ” DDB Worldwide Communications Group Inc. the best method of use and we need somebody to talk to us in layman’s terms. And we are happy to share our experience that when Mobile is used effectively it makes all media work harder. how you use it. Omnicom is the advertising holding company with the highest revenue in the world. We believe that mobile can be an integral component of a larger campaign as long as it works to connect people with people. but I get the feeling that these could be incredibly powerful as an advertising medium. White Paper on The USmA: The United States of Mobile Advertising . and represents the next wave of brands looking to invest in a mobile strategy. according to Advertising Age’s agency rankings of April 2008. at US$12. Mike Godwin Managing Director. is a part of Omnicom Group Inc. why it works. not just people with brands.

mobile advertising budgets are high – especially in relation to Europe – with the average mobile advertising campaign in the US between $75. White Paper on The USmA: The United States of Mobile Advertising 2015 $5. rich advertising experience. big numbers. the US is the second largest mobile advertising market in the world.6 million.000-100.04BN 3 . User engagement with mobile advertising will inevitably increase. Primarily because 49 million mobile users already claim to have actively engaged with an advert on their mobile. USA Mobile Advertising Market Size $1. In 2010. and if just one-third of that 53% start to engage with mobile advertising. will be an increase in US mobile users engaging with advertisements on their mobile. Consumer research for mobileSQUARED by Lightspeed Research reveals that 53% of US mobile users claimed not to have seen an advert on their mobile. behind Japan. rising to $5.24BN 2011 © 2010 Smaato Inc. it ensures there is sufficient budget available to release the creatives on the campaign and deliver a truly compelling. It has a mobile population exceeding 300 million. that would contribute an additional 50 million mobile users.000.04 billion in 2015. and a mobile internet user base on the verge of surpassing 100 million. big. With this level of scale. Presently.Summary The US is all about numbers. At this level. the US mobile advertising market will be worth $797. Aligned with this increase in mobile advertising spend.

6 million. It has scale like no other developed mobile market and that is making for a hotbed of activity. mobileSQUARED research has highlighted that around 50% of the US mobile internet users are doing so on a frequent basis – on a daily or almost daily basis.6 million.The 75. and there are a fraction over 300 million active mobile subscriptions in the US. In the UK for instance. the US advertising market is expected to be worth $797. On average. 2010 20% 29% 3% 2% Opt-in Messaging Mobile Games/Music/Video/TV Apps Search 46% Banner Ads Source: mobileSQUARED. In the US. White Paper on The USmA: The United States of Mobile Advertising 4 . for example. and this is creating an opportunity for content producers and publishers to capitalize through the delivery of creative and rich-media-based advertisements to consumers. mobile mobile second mobile 300 Million US active mobile subscriptions $797. of which.000 dollar question The US mobile advertising market is a very exciting market to be operating in right now. almost one-third use their mobile phone to browse. The mobile internet is becoming a very popular and powerful platform throughout the US. The richer advertising content is helping to fuel the advertising marketplace even further. creatives receive 10-15% of the budget which could total $15.6 Million US Mobile Advertising market worth US Mobile Ad Spend.000 and provide the scope to develop an ad delivering a rich consumer experience. the average mobile campaign spend is significantly larger than anything witnessed in Europe. the average mobile advertising campaign spend is between $75.000 maximum. only to Japan which is the world’s only billion dollar advertising economy. the average creative budget would be approximately $5. The US has a population approaching 310. In 2010. October 2010 © 2010 Smaato Inc. Because of the country’s vast population.000.000-100.

mobile represents 1% of total spend.000 mobile advertising campaigns.04 billion by 2015.For the US. White Paper on The USmA: The United States of Mobile Advertising 5 . and an average of 21.24 billion. this equates to a little under 8. The US market will join Japan next year. when revenues are forecast to top $1. © 2010 Smaato Inc. part of the Publicis Groupe. as a medium. $5. Aside from the phenomenal increase in mobile advertising activity during the forecast period. According to ZenithOptimedia. the US is set for a 2. mobile is yet to penetrate over 50% of the US mobile population in terms of advertising. and increasing to $5.5 billion in 2010 – with global ad spend for 2010 expected to be worth $449.04 Billion US Mobile Advertising revenues by 2015 Total mobile banner spend (US$) of Europe’s Big Five Banner Ads Search Apps Mobile Games/Music/Video/TV Opt-in Messaging Source: mobileSQUARED.8 new campaigns per day.4% increase in advertising spend to $151.5 billion. For the US advertising industry. But the market has to brace itself for unprecedented growth. October 2010 Yet mobile remains a fraction of total advertising spend in the US.

it is only a matter of time until they do. The consumer survey revealed the now expected naysayers. the total number of mobile users engaging with mobile adverts in the US is incredibly high. Put another way.3 Million Users clicked on the ad and purchased an item 28. Even if one-third of the 159. 49 Million Already engaged with an advertisement 12.” 28. Therefore. the number of mobile users in the US that will engage with mobile advertising can only increase. 159. that will deliver an additional 53 million mobile users.3 million mobile users “have clicked on the advertisement and went on to purchase an item.86 million users have “clicked on the advertisement and looked at the item advertised but did not buy it.63 million mobile users in the US are yet to experience mobile advertising.82 million mobile users have “clicked on the advertisement and looked at the item advertised on their mobile phone and ended up buying it online using their PC/MAC. Realistically. revealed that one-sixth of US mobile users (49 million). with 21. have engaged with an advertisement of some description on their mobile phone. However. that that figure will only increase.1% of espondents claimed to have “never seen an advertisement on their phone.6% of users “doubt they will ever click on an advertisement on their mobile”. But it has to be said.” Not only does this highlight that an increasing number of mobile users are willing to commit to a purchase there and then over their mobile phone than those opting to delay until in front of their PC.9 million mobile users. 53.” while a further 7.” This suggests a little over 50% of the US population is yet to form an opinion with regards to mobile advertising. taking the total number beyond the 100 million mobile user mark. White Paper on The USmA: The United States of Mobile Advertising 6 . October 2010 © 2010 Smaato Inc.86 Million Users clicked on the ad but did not bought it US Mobile Populations’ Propensity to Mobile Advertising Source: mobileSQUARED.63 million indulge in engagement. A breakdown of those users reveals that 12.The consumers are coming: millions of them A nationally-representative survey of US mobile phone users conducted by Lightspeed Research for mobileSQUARED. or 64.

Nick established himself as one of the leading authorities on the mobile content. as publishers should consider fill rates. and will become the second billion dollar market after Japan – during 2011. Yet the true potential of mobile. to name a few criteria. mobileSQUARED Nick has been described as “the leading commentator on UK mobile media (Adam Smith. Smaato Mobile Advertising Metrics are published monthly at: http://metrics. The State of Mobile Advertising According to the data collected by Smaato choosing the right ad network is a complicated decision. reports and forecasts that have helped shape the mobile industry. September 2010 Nick Lane. But Nick’s experience extends well beyond the UK. device and content Chart: Fill Rate of Mobile Ad Networks (USA). regularly speaking and chairing at conferences and events around the Prior to launching mobileSQUARED. mobile advertising will represent 1% of total ad spend in the US. And florish the United States of mobile Advertising will. The metrics demonstrate the performance of mobile ad networks globally and the fill rate is measured as the percentage of ads delivered per ad request and varies by different factors like country. and the market realisation of advertising on the medium. He specializes in mobile market intelligence and heads up the research and analysis at mobileSQUARED (www. services and advertising space.mobilesquared. operating systems as well as response times of ad networks. that is only to be expected given digital was an entirely nascent medium 10 years ago. White Paper on The USmA: The United States of Mobile Advertising 7 . where he oversaw the group’s leading industry and has laid down the foundations for mobile to florish. And although mobile is growing faster than online.The American Dream Following years of promise. While in this role at Informa. Chief Analyst.000 registered publishers. In this role. remains some distance away. from consumer behavioral analaysis to mobile advertising.smaato. Smaato’s metrics are published monthly to show the state of the mobile advertising ecosystem according to data from over 50 ad networks globally & inventory of 9. Nick was Head of Research Services and Principal Analyst at Informa. © 2010 Smaato Inc. Nick wrote a number of reports. the US mobile advertising marketplace has sprung into life. Futures Director at GroupM). By the end of 2010. metrics. www. California.smaato.smaato. The privately held company was founded in 2005 by an experienced International management Smaato White Papers www. CA T: +1 (650) 286 11 98 twitter. developers.smaato. More than mobile advertising About Smaato Smaato is a pioneering mobile advertising company that operates the mobile ad optimization platform called SOMA (Smaato Open Mobile Advertising) and partners with mobile publishers. Smaato’s SOMA mobile advertising platform aggregates more than 50 mobile ad networks worldwide and optimizes mobile advertising revenues according to automated rules overseen by an experienced ad operations team. SOMA’s unique feature is the aggregation of multiple leading ad networks globally to maximize mobile advertising facebook.smaato. ad networks and operators. SOMA can be easily integrated with ad networks. developers and operators) and 3rd party ad technology providers. Smaato received a Top 100 Private Company Award by AlwaysOn Media (2009 & 2007) and was recently named a „company to watch 2010“ by Financial Analyst company GP Bullhound. Germany and the Asia-Pacific presence of Smaato has been established in Singapore. Germany T: +49 (40) 3480 9490 emea@smaato. ad inventory owners ( Singapore.000 publishers have signed up with Smaato as a partner to monetize their content in 220+ countries and Smaato is managing 16 billion ad requests per The names of actual companies and products mentioned here may be trademarks of their respective owners. among other awards. The European headquarters are in Hamburg. SG . Redwood Shores. is based in Redwood Shores. Smaato is an active member of the Mobile Marketing Association and the German Digital Media Association BVDW. Smaato Inc.

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