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All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
AN INSIGHT INTO MOBILE ADVERTISING
Presented at
Asif AliChief Technology Officer
Mobile-worx Inc.,
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
Introduction
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
WHO ARE WE?• About mobile-worx
• A leading mobility solutions firm. Headquartered in LA. Dev. Centre in Chennai
• mobile-worx is a leader in delivering innovative mobile products and services to the marketplace.
• Pioneer in mobile advertising in India
• ZestADZ
• India’s first complete, permission based mobile advertising platform / market place
• Delivers mobile ads to various channels including SMS, WAP and J2ME applications.
• Patent pending technology
• Compelling “win-win” revenue model for everyone within the ecosystem
• Signed up first advertiser recently
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
MOBILE ADVERTISING: WHAT PEOPLE ARE SAYING
Mobile Advertising Worth $10 Billion By 2010.
About 50% of respondents in the US and UK and 39% in Italy would be interested in getting free content in return for being sent relevant advertisingVerizon Wireless Chief Marketing “..mobile advertising will eventually grab as much as 30% of the approximately $100 billion US Ad spend”
The future of advertising, is in cell phones and handheld devices.
Global Ad Agency Giant
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
MYTHS ABOUT MOBILE ADVERTISING• Myth The mobile advertising market exists as unsolicited
messages and calls.
• Reality: SMS / WAP / CALLS SPAM is not considered as mobile marketing.
• Any SPAM is generally ineffective; This problem is an opportunity in itself
• Myth: Marketers haven’t heard much of mobile advertising. Awareness is low
• Reality: Leading Indian and International brands use SMS SPAM and other forms of mobile advertising.
• Leading Indian carriers are already implementing mobile marketing solutions for their customer base.
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
MARKET MATURITY
• Though mobile advertising is a nascent market, at least half a billion mobile ad impressions are getting delivered world wide, every month !
• The scenario in India: mobile advertising is on the top of the minds of every carrier. Is just getting started to move beyond SMS campaigns
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
THE FUTURE OF MOBILE MARKETING• The future of mobile marketing is permission permission
marketingmarketing a concept pioneered by Seth Godin.
• Permission mobile marketing will work; but users won’t just take ads. Users are wary of mobile marketing - IAMAI
• The content & services ecosystem will need to evolve on an ad supported model: Think google ad sense
• The average subscribers should get premium services and content for free (remember hotmail?)
• Current mobile content revenues are under intense pressure. Real value vs. perceived value mismatch is an opportunity for mobile advertising
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
THE MOBILE ADVERTISING ECOSYSTEM
$$$$
$
$$$
Advertiser
Publisher/ Mobile
developersCarriers Subscribers
BRAND OWNERS/ ADVERTISERS
PLATFORM PROVIIDERS
AGGREGATORS
WIRELESS OPERATORS
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
Mobile advertising Advertiser perspective
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
TraditionalAdvertising
On-lineAdvertising
WirelessAdvertising
One-to-one advertising
Different design to different audiences
Interactive advertising
Location based, highly targeted
Highly Interactive, viral , very
personal & ubiquitous
Mass advertising, large reach
Limited customisation
No interactivity
CAPABILITIES PERSONALISATION
-
+
Highly targeted, Highly relevant, Permission based and ubiquitous=
Value for all stakeholders – Customers, Carriers, Publishers, Advertisers
WHY IS MOBILE ADVERTISING COMPELLING?
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
WHY IS MOBILE ADVERTISING COMPELLING 2?• LARGEST REACH: 2bn users world wide; 160mn in
India
• Location sensitive. Ads can be targeted down to city / locality level using location technologies
• Premium mobile services based on an AD supported model will benefit the users; drive adoption of mobile advertising; help increase ARPUs for operators and help publishers to monetize their services better with more profits
• Campaigns can be launched based on keywords, user profile data with the best targeting possible e.g.: Deliver this Pantaloons AD to all “high end” phones to Hutch users in Chennai, who are talking about “clothes”
• Campaigns can be contextually sensitive, viral and interactive !
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
Mobile AdvertisingPublisher / Mobile developer
Perspective
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
OPPORTUNITIES FOR MOBILE CONTENT DEVELOPERS• Mobile content revenues are
more than web content revenues
$25bn from web content$31bn from mobile content !
• India a $1bn+ content market (07 est.). AD market is nascent but growing
• Mobile advertising is the best way to monetize mobile content due to skewed revenue sharing ratio in Asia !
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
APPLICATION TECHNOLOGIES THAT CAN EMBED ADS• SMS• WAP• Rich client
technologies (BREW, Java and Flash Lite)
• ZestADZ supports delivery of ADS over SMS,
• WAP and J2ME
• Flash and BREW to be supported soon
• Automated tools to embed advertisements into your binaries (coming for J2ME soon)
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
ADVERTISING MEDIA ON MOBILE
Original Game
Inserted Banner Ad
Can contain audio, video, banners or
textAudio AD will
preview
Mobile advertisements can be
•Text
•Flash movies
•Banners
•Audio
•Video
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
STRATEGY FOR MOBILE DEVELOPERS
• Sign up with an mobile AD partner
• Most basic mobile content or apps have a 6 months max shelf life. Do think of publishing these apps or content for FREE, with the support of an mobile AD partner
• Do try at least one very successful mobile app, a try. Launch it off deck, for no charge with ADS embedded within it
• Publish them on your own, external (off deck) and Carrier Channels
• Publicize your content; SEO also helps
All Rights Reserved. Copyrights 2007 mobile-worx. www.mobile-worx.com
SUMMARY Carriers - better revenues, increased data traffic
Mobile developers – better revenues with a higher revenue share than in the traditional model
Advertisers – a more powerful, highly targeted, personal medium to sell their products and services.
Mobile advertising may benefit the subscribers the most as they will get AD-supported, free or low cost premium mobile services and content