mobile marketing study and recommendations
DESCRIPTION
Study of Mobile Marketing Ecosystem and recommendations for key players. Project done by students of IIM Bangalore.TRANSCRIPT
GROUP 5Harkawal Singh 1212019 Iqbal Khan 1212021Himanshu Nahare 1212020 Sandip Jalan 1212047
Arvind Ranjan 1111333
Mobile Marketing Platforms […] Mobile Ad networks
What is Mobile advertising?
Source : Crispmedia.com
Ecosystem and Value Network
Buy Side Infrastructure and Delivery Sell Side
PUBLISHER
SUPPLY SIDE PLATFORM (SSP)Ad EXCHANGE
Ad NETWORKAdvertisers
DEMAND SIDE PLATFORM (DSP)
MEDIA AGENCY
Source: http://www.siemer.com/
Business Model of Ad Network and Ad-platform
publisher
advertisers
What’s in for PublisherMonetize its Applications developed on Android, iOS,
Microsoft OSGet Advanced analytics and transparency of the visitsCross selling opportunity to promote its own apps or
websites
What’s in for advertisersMobile is increasing as a platform for communication, and has
acceptance equivalent to that of TV or onlineMore efficient campaign runs on mobile, and enable targeted campaignMeasurable matrix and analytics to gain insights and transparency of
the channel
What’s in for Ad-NetworkBy managing inventory of demand and supply, targeted
advertisement and gain revenue through brokeragePromote rich media formats including native content to
become ad-network of choice both for publisher and advertiser
Mobile Ad Network Types
Vertical Network Blind Network Targeted Network Full transparency for the
advertiser about where their ads will run
Offer good pricing to direct marketers in exchange for those marketers relinquishing control over where their ads will run
Sometimes called “next generation” or “2.0” ad networks, these focus on specific targeting technologies such as behavioral or contextual
Typically promote high quality traffic at market prices and are heavily used by brand marketers
Usually runs campaigns as RON or Run-Of-Network
Specialize in using consumer clickstream data to enhance the value of the inventory they purchase
The economic model is generally revenue share
Offer ROS (Run-Of-Site) advertising across specific Channels
Achieve their low pricing through large bulk buys of typically remnant inventory combined with conversion optimization and ad targeting technology
Specialized targeted networks include social graph technologies which attempt to enhance the value of inventory using connections in social networks
Source: http://en.wikipedia.org/wiki/Advertising_network
Differentiating a Ad- Network Audience data is considered more valuable than inventory quality in online media buying decision making
Targeting methods that leverage audience data have grown in importance
Advertisers and agencies need greater audience insights, analytics and optimization services
Research Study by Inmobi on global Mobile Media Consumption
Comparison of inMobi, Google ad-mob & Facebook
Total number of active users 0.7 Billion 1 Billion 1.3 Billion
Total Company Revenue $ 0.5 Billion $ 55 Billion $ 7.9 Billion
Ad-Network Yes Yes Yes
Ad-Platform Yes Ad-Mob No
Own Mobile OS No Android No
World Wide Market Share <1% 50% 20%
Ad Pricing CPM, CPC, CPA CPM, CPC, CPA CPC, CPM, Cost- per-action, Cost-per-like
Advantages
Small player but expanding its network
very fast by providing SDK for APP developers and
end to end campaign management for its
customers
High REACH through various APPs (provides
SDK). Has complete details of the end consumers who have downloaded APPs
using Play Store.
High on consumer engagement and
repeat visits.Best for brand
awareness (engagement &
loyalty)
Source: http://www.inmobi.com/company/news/inmobi-claims-759m-monthly-active-users-second-only-to-facebook/http://www.statisticbrain.com/facebook-statistics/
Trends Hype Cycle - Gartner
Source: http://www.gartner.com/newsroom/id/2579615
Trends: Consolidation of the solution towards broad offering
Our Learning from the study of Ad Networks and industry• Industry overview
– Only a handful of ad-tech businesses have truly gained scale or differentiation in the marketplace– Agencies in past used to manage multiple vendors but now want to consolidate the vendor relationship– Consolidation on both the demand and supply side is like to lead to platform that enable access to both premium
publishers and ad-network; Enable multiple platforms & channels (Video, social, mobile), and integrate both behavioral and contextual targeting
– Dependence on future development of hardware and software platforms of mobile phones/devices
• Emergence of formats and standards– Native advertising is gaining further traction as a preferred ad-format to engage online with customers especially
Inmobi, where intrusive banners have proven difficult to monetize– Mobile/Tablet App Download Marketing is becoming more sophisticated with the rise of Universal Buy side SDK
solutions– Latest move by Google to standardize the android experience (making it OEM independent) – Android Silver
• Innovation drivers– The publishers hold the key to success for the ad-network and ad-platform by providing engaging real estate.
Inmobi is engaging the app developer by becoming the source of best practices, industry developments and advising on how to monetize apps best. Inmobi has even a published a book for app developers on this topic.
InMobi's dimensions of business innovationOfferings Solutions, episodic learning platform, Expertise on demand Processes Transparency, analytics, a lot of self helpPlatform Ad Platform Organization Young startup culture
Solutions Studio, analytics Supply Chain Native ads : new and better way to fulfill, Video platform
Customers Transparency and partnership Presence Global presence, 750 million usersCustomer Experience Experience success, insightful, close interaction for campaigns Networking App developer network, industry summits et al
Value Capture Effective campaigns to advertisers and monetization to publishers Brand The largest independent Ad-network
Strategy options for key players
Create / Acquire Own Mobile ad platform Evaluate own mobile OS Engage the users more, enrich the quality of
interaction and increase usage– Benefits to heavy users– Extend service offerings like video
platform
Evaluate a tie-up with one of the leading OS providers to create an ecosystem
Continue to collaborate more on both supply and demand sides
Focus on delivery format and media richness Create simpler sales interfaces and more sales
channels – self service mode Continue to find innovative ways to deliver
customer value - app developers
High Low
High
Produce some complements yourself, but have third parties produce most of them
Make all components yourself
Low
Have third parties make all components
Produce most components yourself but have third parties produce most of them
If your need for a wide assortment of complements is
If yo
ur ca
pacit
y to
inve
st is
?
Source : The art of Managing complementors– With friends like theseBy David B. Yoffie and Mary Kwak
Impact of Mobile advertisement
According to an indendent survey on global Mobile Media Consumption in Q4 2011 • 42% of respondents indicated that mobile advertising has introduced them to something new• 66 % of mobile users are just as comfortable with mobile advertising as they are with TV or online
advertising• 23 % of respondents indicating that mobile ads saves time and money.• 14 % of respondents indicating that mobile ads have influenced them to buy via mobile.• Mobile web users spend 27 % of their media time on mobile, 22 % on TV and 32 % online
Mobile Marketing Contributes $139 Billion to U.S. Economy in 2012; Set to Rise to $400 Billion by 2015
Source: http://www.eyefortravel.com/mobile-and-technology/recognising-impact-mobile-ads-purchase-behaviour-travel-marketerhttp://www.mmaglobal.com/news/mobile-marketing-contributes-139-billion-us-economy-2012-set-rise-400-billion-2015