mobile marketing study and recommendations

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GROUP 5 Harkawal Singh 1212019 Iqbal Khan 1212021 Himanshu Nahare 1212020 Sandip Jalan 1212047 Mobile Marketing Platforms […] Mobile Ad networks

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Study of Mobile Marketing Ecosystem and recommendations for key players. Project done by students of IIM Bangalore.

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Page 1: Mobile Marketing Study and Recommendations

GROUP 5Harkawal Singh 1212019 Iqbal Khan 1212021Himanshu Nahare 1212020 Sandip Jalan 1212047

Arvind Ranjan 1111333

Mobile Marketing Platforms […] Mobile Ad networks

Page 2: Mobile Marketing Study and Recommendations

What is Mobile advertising?

Source : Crispmedia.com

Page 3: Mobile Marketing Study and Recommendations

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/

Page 4: Mobile Marketing Study and Recommendations

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

Page 5: Mobile Marketing Study and Recommendations

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

Page 7: Mobile Marketing Study and Recommendations

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/

Page 8: Mobile Marketing Study and Recommendations

Trends Hype Cycle - Gartner

Source: http://www.gartner.com/newsroom/id/2579615

Page 9: Mobile Marketing Study and Recommendations

Trends: Consolidation of the solution towards broad offering

Page 10: Mobile Marketing Study and Recommendations

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

Page 11: Mobile Marketing Study and Recommendations

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

Page 12: Mobile Marketing Study and Recommendations
Page 13: Mobile Marketing Study and Recommendations

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