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Introduction Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing. Mobile advertising as a medium has been drawing significant attention from media giants and the advertising industry since the mid-2000s. Mobile technology is identifying newer mobile multimedia and is constantly evolving. Mobile advertising is slowly emerging as the preferred choice for advertisers as mobiles are extremely personal devices with an unparalleled reach, resulting in opportunities to target audiences in ways that no other media can offer. Mobile Advertising Mobile advertising encompasses text messaging, mobile commerce, and Bluetooth marketing along with the traditional search engine marketing, banner adverts, video adverts, and ringtone downloads. Mobile as Media This unobtrusive two-way communications caught the attention of media industry and advertisers as well as cell phone makers and telecom operators. Eventually, SMS became a new media - called the seventh mass media channel by several media and mobile experts -and even more, it is a two-way mobile media, as opposed to one-way immobile media like radios, newspapers and TV. Besides, the immediacy of responsiveness in this two-way media is a new territory found for media industry and advertisers, who are eager to measure up market response immediately. Additionally, the possibility of fast delivery of the messages and the ubiquity of the technology (it does not require any additional functionality from the mobile phone, all devices available today are capable of receiving SMS), make it ideal for time- and location-sensitive advertising, such as customer loyalty offers (ex. shopping centers, large brand stores), SMS promotions of events, etc. To leverage this strength of SMS advertising, timely and reliable delivery of messages is paramount, which is guaranteed by some SMS gateway providers. Mobile media has begun to draw more significant attention from media giants and advertising industry since the mid-2000s, based on a view that mobile media was to change the way advertisements were made, and that mobile devices can form a new media sector. Despite this, revenues are still a small fraction of the advertising industry as a hole. Inform a reported that mobile advertising in 2007 was worth $2.2 billion. This is less than 0.5% of the approximately $450 billion global advertising industry. Types of mobile advertising are expected to change rapidly. In other words, mobile technology will come up with a strong push for identifying newer and unheard-of mobile multimedia, with the result that subsequent media
migration will greatly stimulate a consumer behavioral shift and establish a paradigm shift in mobile advertising. A major media migration is on, as desktop Internet evolves into mobile Internet. One typical case in point is Nielsen’s recent buyout of Telephia However it should be kept in mind that the rapid change in the technology used by mobile advertisers can also have adverse effect to the number of consumers being reached by the mobile advertisements, due to technical limitations of their mobile devices. Because of that, campaigns that aim to achieve wide response or are targeting lower income groups might be better off relying on older, more widespread mobile advertising technologies, such as SMS. A BBC news article of August 2006 indicated, "Young drive 'radical media shift'", pointing to a fast shift away from the traditional media. "They are leaving the traditional media and moving towards new media. This generation has grown up with new technologies - and it is this generation for whom the uptake is instinctive." Mobile Advertising and Marketing Mobile advertising is coming to a phone near you – but simply translating existing models won’t work. The increasing availability of multimedia content is opening a large opportunity for sophisticated forms of mobile advertising. As content that already incorporates advertising – like live TV programming – makes it’s to mobile handsets, brands and entertainment content providers are beginning to see the value of presenting full multimedia ads with programs. Operators in the U.S and Western Europe are currently either testing various forms of advertising with 3G services or are allowing ads to be served on their portals. A number of multimedia companies will launch advertising in H1 2006 within their multimedia offering. Furthermore, the entry large online search engines into the mobile world opens up new advertising opportunities in the shape of context-based mobile search. From 2005 when the Nascent Market Gamered $255 million in Europe and the United States, mobile marketing and advertising in these two geographical areas will grow to exceed $1 billion in 2009, provided certain elements fall into place. Issues to be resolved include business models and revenue share, the type, length and frequency of ads, consumer attitudes and many others. Operators will have to walk a fine line between maximizing the revenue potential of advertising, while at the same time not risk alienating subscribers and increasing chum by doing so. Viral Marketing
As mobile is an interactive mass media similar to the internet, advertisers are eager to utilize viral marketing methods, by which one recipient of an advertisement on mobile, will forward that to a friend. This allows users to become part of the advertising experience. At the bare minimum mobile ads with viral abilities can become powerful interactive campaigns. At the extreme, they can become engagement marketing experiences. A key element of mobile marketing campaigns is the most influential member of any target audience or community, which is called the Alpha User. Types of Mobile Ads In some markets, this type of advertising is most commonly seen as a Mobile Web Banner (top of page) or Mobile Web Poster (bottom of page banner), while in others, it is dominated by SMS advertising (which has been estimated at over 90% of mobile marketing revenue worldwide). Other forms include MMS advertising, advertising within mobile games and mobile videos, during mobile TV receipt, full-screen interstices, which appear while a requested item of mobile content or mobile web page is loading up, and audio advertisements that can take the form of a jingle before a voicemail recording, or an audio recording played while interacting with a telephone-based service such as movie ticketing or directory assistance. The effectiveness of a mobile ad campaign can be measured in a variety of ways. The main measurements are impressions (views) and click-through rates. Additional measurements include conversion rates, such as, click-to-call rates and other degrees of interactive measurement. SMS, MMS, and Short code are the current predominant mobile ad serving mechanisms. The advent of 3G and Wi-Fi enabled phones has made Mobile TV and Mobile Commerce the next sought-after mediums of advertising. Video pre-/post-roll and ad funded some of the emerging trends as well. Volume is limited in terms of current reach and advertising, but this is increasing and is expected to grow rapidly over the next few years. Mobile advertising: Push & Pull Mobile advertising can roughly be divided into push and pull advertising. Push mobile advertising is the type of advertising where it is the marketers who send information to consumers without having got an initial request for it. In pull advertising it is the consumers who actively request for information from the organization/marketers. As gaining the customer’s permission to perceive mobile advertisement is one of the fundamental factors for mobile advertising success. In the case of pull mobile advertising it is the consumers who request the information.
Therefore permission is not a vital factor. It is instead factors like user friendliness, trust and value that determine the consumer’s acceptance of mobile advertising. Mobile WEB The Mobile Web refers to brower-based web services such as the World Wide Web using mobile devices. Actually there are three ad possibilities for use on mobile web: - Text links Wap Graphical 1.0 Banner Banners AD
Graphical banners Color graphical banners are the most used ad in Mobile Web Advertising. Images are used in the campaign.
Images are static or animated; Images can be placed anywhere in the website; Aspect ratio should be 4:1 (standard) or 6:1 (for high-end devices); Automatic resizing should be avoided;
Image formats are: .PNG, .JPEG and .GIF for static and .GIF for animated banners;
Recommendations for image width are: 120, 168, 216, 300 pixels;
The recommended size is dependent on the format and width chosen, but should not be more than 5KB for static and 7.5KB for animated banners; Wap 1.0 Banner AD Black and white graphics ad type that target older phones. These are very region specific but a standard wasn't published yet. WAP Mobile Advertising Mobile Advertising is much more than web banner advertising on mobile. Mobile Advertising represents a new and exciting channel for advertisers and agencies. Mobile sites represent an opportunity to present tightly targeted messages to specified customer groups. Visitors to mobile sites have pro-actively chosen to visit that site and will be genuinely interested in the content and messages. Mobile site banners are generally 10x more effective than web banners with click through rates of 15% through good banners and effective sites.
Text AD Advertising in text format. Can be used in older or modern phones. It's campaign dependent. Use advertising indicators in the text, e.g. put the word Ad before the text to emphasize that it is an ad: "Ad: - advertisement here";
The indicator should be positioned in the corners of the text; Characters limit varies from 10 to 24; Screen size has no effect on text ads;
Mobile APP Advertising inside applications on mobile is in general advantageous for free applications, though everyone can use it. The more your application is widely accepted the more your advertisement will be seen via your app and more you can earn on it. Advertising Methods for Applications Typically in application you can show advertisement using following methods: Scrolling Text You can have Ticker scrolling on top or bottom of your application screens showing advertisement and also can have some particular area with text scrolling in vertical direction.
Notification Pop-up On event of receiving advertisement you pop-up a screen showing that advertisement. But this should not be used much as this will interfere user work flow and which creates a bad impression to user. Using Data Loading Time Once the advertisement is received then we can show it when application is busy in some internal work for which user is needed to wait, then on wait screen with loading notification we can show that advertisement text and images. Ways to Send Advertisement To Applications What’s the beauty of advertisement if it can't be dynamically updated? So there are few methods you can choose from on how to send advertisement to your application. Via GPRS This is the most efficient way in respect to sending adv as you can send Images and text. But the restriction is that user have to pay for data charges and you need to have a server for you application. Via SMS This is also quite nice way of approaching for advertising, cause even if device don't have GPRS connection or functionality it will be surely having SMS capabilities. And since user is not paying for receiving SMS, all the cost is on you that you can forward to the companies who wants to use your advertising gateway. Also using SMS, on a wide range you can send advertisement location specific. Via Bluetooth Well this is less used method but quite precise to user location. You can have bluetooth server installed in public areas where when user enters will receive that location specific advertisement. It really great for Big shopping mall, for advertising their products. SMS Advertising through Short Message Service (SMS). It's the most supported format for ad.
Limit the advertisement to 160 characters; The Advertiser must be visible in the ad; If URL are used, then use the short format (20 character);
The header should reflect the consumer query so it won’t be confused with spam;
Try to avoid abbreviations and grammatical mistakes; Use punctuation to make the message clear; Take into account that line break could be consider as 2 characters; Check if the network operator supports accented letters;
MMS Allows the campaign to use Text, sound and image making it richer.
Images can be static or animated;
Use 1:1 aspect ratio as possible as it will make the ad visible in most mobile phones without the needing of scroll;
The advertisement can be placed before or after the original message;
Images format are: .JPEG and .GIF for static, .GIF for animated; Actually there's no guidelines regarding the audio; It is recommended that the file does not exceed 100kb;
Nokia Jumps into Mobile Advertising Handset maker Nokia is entering the mobile advertising space with the addition of two services: the Nokia Ad Service and the Nokia Advertising Connector. The Nokia Ad Service will plan and execute mobile-ad campaigns, working with hundreds of handsets worldwide, not just Nokia’s, Ad Age quotes Nokia’s Matthew Snyder, head of media-business development for Nokia’s Multimedia Advertising Business Program, as saying. Included in the campaigns will be interactive banner ads, ads in mobile applications and ads in mobile videos. The Nokia Ad Service is expected to launch in Paris later this spring and globally in the second half of this year. The company’s other offering, Nokia Advertising Connector, will also launch later this year, providing a platform where media companies, internet companies and others with established ad-sales teams can sell ads. Nokia Launches Mobile Advertising Network The time to start collecting the sweet, sweet fruit of advertising on millions of mobile devices used all around the world every day is upon us. After AOL’s announcement of their Open Mobile Platform, which among other things enables developers to monetize mobile applications through AOL’s Platform-A, now Nokia has announced their mobile ad network, called the Nokia Media Network, at the Mobile World Congress 2008 in Barcelona. Nokia has built the network using the technology from Enpocket, a company they’ve purchased back in October 2008. Their partners include over 70 leading publishers and operators, including AccuWeather, Discovery, Hearst, Reuters, and Sprint. On the advertiser end of the equation, some brands that Nokia has been working with are BMW, Paramount and MobiTV. Nokia claims that Nokia Media Network will yield a 10% CTR in “certain channels,” which sounds a bit too good to be true, but as Allen from Center Networks notices, who knows how many of those clicks are simply errors. Here’s some marketing’s for you: “Nokia is building upon an unrivaled understanding of the mobile consumer, our relationships with blue chip publishers and top tier operators, and a legacy
of campaign optimization through analytics to create a high-performing solution for advertisers,” said Vice President and Head of Nokia Interactive, Mike Baker. “The biggest brands in the world trust us with their mobile advertising because they know the Nokia Media Network enables them to reach the largest, highest quality audience on mobile and provides the best ROI.“ On a side note, Engadget reports that Nokia is sticking with Symbian and has no intent to switch to Windows Mobile platform. I’ve tried many devices based on both platforms, and all I can say to this news is: thank heavens. Yahoo's new play for Mobile Advertising
After Google's Android its Yahoo's turn to try and shake up the mobile content market and capture a share of the growing mobile advertising industry. Similar to Android Yahoo is betting on open source it is launching Yahoo Go 3.0 beta and is also announcing its own developer platform. Yahoo's aim is to become a starting point for the mobile Internet and It has taken a slightly different approach than Google or Microsoft it is trying to carve out a major chunk of mobile business by delivering a range of new and existing Internet services tailored to work on different types of mobile phones rather than by building phones itself like Apple or building Phone Operating System like Microsoft or Google. The Yahoo! Mobile Developer Platform will provide tools for developers to code and launch mobile widgets for a wide range of cell phones. The platform is an open environment based on XML for developers to create mobile Widgets for instant access by millions of consumers. It has already signed up as its Third-party Widget launch partners as eBay, MySpace, and MTV. Yahoo Go 3.0 meanwhile provides an “open” environment offering Yahoo!’s full selection of Mobile Widgets developed by third parties. Yahoo is hoping that developers who write services to run on Yahoo’s mobile offerings could
choose to have Yahoo deliver ads on those services. Yahoo Go 3.0 initially will run on 30 different handset models available in the United States. In coming months, the company planned to introduce the software to work with hundreds of different mobile phone models worldwide. This space is very crowded with lot of people betting on mobile being the future the Internet and yahoo doesn't wants to be left out. Strong growth in mobile advertising – BuzzCity Forecasts about the growth of the mobile advertising market vary wildly from month to month and from one analyst to another. In an attempt to add some clarity to this confusion, Advertiser Perceptions have carried out a survey of marketers and media buyers to generate insight into their advertising plans for the near future. The results of the “Wave 8″ market survey by Advertiser Perceptions bring a mixture of good and bad news for the mobile advertising industry. About 55 percent of marketers plan to increase their budgets on mobile spending in the next 6 months, indicating that there is a healthy level of enthusiasm in the market. However, less than half the participants in the survey, consider ‘interactivity’, which is strength of mobile advertising, to be an important criterion when deciding their budgets for advertising. On the other hand, these advertisers consider ‘reach’, which is a weak point of mobile advertising, to be the number one criteria. Mobile Internet usage needs to increase and attain levels comparable to other forms of media before platforms and publishers can expect advertisers to invest substantial sums in this medium. Among other things, mobile companies will have to facilitate cross-operator inventory, and a consistent audience measurement system to lure advertisers. Growth Predictions Analysts and industry leaders seem unabashed about their enthusiasm for the future of mobile advertising. Sterling Market Intelligence forecast mobile advertising revenues will reach $5.08 billion in North America and Western Europe by 2012. Thomson Financial predicts Google’s 2009 mobile ad revenue alone will reach $21.31 billion. Gartner predict that the worldwide mobile advertising market will grow from $895 million in 2007 to $14.6 billion in 2011, while the Kelsey Group forecast that the US mobile ad market will grow from $33.2 million to $1.4 billion in 2012. Forrester are the most
conservative, predicting less than $1 billion in mobile ad revenue by 2012. In brief the results of the Wave 8 report show
• 70% • 31% • 36% • 45%
of mobile advertisers use text messaging of advertisers use video ads of mobile marketers use mobile search say they intend to start mobile search in the next 6 months
SAN FRANCISCO -- Google Inc. is acquiring mobile advertising company AdMob for US$750-million, furthering the company’s push into the fastgrowing market of Web-enabled cell phones. The all-stock deal gives Google, whose Android software is increasingly used to power smart phones such as the Motorola Inc. Droid, an important element to monetize mobile Internet traffic. Privately held AdMob makes technology for serving display ads on mobile phones and to track the performance of the ads. "Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time," said Google VP of Product Management Susan Wojcicki. Google, the world’s No.1 Internet search engine, does not disclose how much of its revenue, which totaled nearly US$22- billion in 2008, comes from mobile ads.
According to E-Marketer there are 405 million mobile internet users and the figure is likely to double in just about 4 years. This huge potential market and its steady growth is what fuels Google’s continuing desire to rule the mobile ad space. They are obviously relying heavily on mobile to drive a chunk of their future growth. This would explain why Google CEO Eric Schmidt dismissal’s conservative predictions for the mobile ad market and said “(The mobile Web) is the recreation of the Internet, it’s the recreation of the PC story and it is before us — and it is very likely it will happen in the next year.” The global recession is having some effect on mobile advertisers, but mobile advertising continues its strong overall growth, said the results of BuzzCity's quarterly Global Mobile Advertising Index, yesterday, Tuesday, 14 July 2009. The company is a global provider of wireless communities and consumer services. The Index represents inventory sold across the BuzzCity Mobile Advertising Network in more than 200 countries globally and documents the usage of the mobile Internet in these markets. In the second quarter of 2009, the company delivered 7.5 billion paid advertising banners, a year-over-year increase of nearly 80% across the network. The results are deemed to show a continuation of the steady growth of the BuzzCity Mobile Advertising Network, and the strength of mobile advertising in the midst of the current economic downturn. Although strong, the numbers represent a decline of 10% compared to the previous quarter due to 600 million fewer impressions on the network in Indonesia, BuzzCity's largest market. This drop resulted from Indonesian operators tightening controls on subscription services on mobile phones. Despite the decline, advertiser interest in Indonesian audiences remained and kept this market in top position. Key developing markets, such as India, South Africa, Saudi Arabia and Kenya continue to grow. Global mobile subscriptions surpassed 4bn at year-end 2008 and are expected to approach 6bn by 2013, making mobile services an extremely relevant platform for advertising for mass audiences. Using mobile services as an advertising medium creates a new revenue stream for telecom operators as well as for technology enablers and content developers. Furthermore, mobile advertising will play a key role in driving usage of paid mobile data services. Mobile Advertising boom in India By 2003, mobile advertising will surpass online advertising revenues. The fact emerges from a recent press release by OneTele on E-Media Wire. However it isn't exactly quoted the research firm that came up with this data. The mobile
market per say in India is growing at a good pace adding about 400,000 subscribers a month (all India). On this angle the SMS is very much famous within the mobile community. But I still have my doubts that mobile advertisement would surpass online advertisement by 2003. This will happen but by 2004 midyear. As there are consumer adoption towards these kinds of marketing activity and also issues from the operators front. As there do so many operators want to do lot of things with lot of organization on the marketing front. Thus mobile advertisement to be successful would need a body dealing on the backend issues towards the operators angle and also safe guards the end consumer interest relating it to PERMISSION based marketing. Thus this mobile advertising approach will have to evolve itself and get hooked towards the growing mobile user’s community.
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