Suffering from a devalued proposition and diminished audience via traditional media, advertisers are shopping around for better promotional avenues. For brands that have recently discovered the power of the World Wide Web, the leap of imagination to mobile is not a hard one to make— almost any advertising or marketing activity that has been possible over the Internet is now possible on a mobile handset. Still, the potential of this opportunity, and the business models that would make mobile advertising work remain difficult to fully grasp.
There are four types of mobile media that will enable brands to build presence in a manner that is appropriate to nurturing a stable and long- lasting relationship with mobile subscribers. Some will stay, others will fizzle. SMS currently accounts for 90 percent of mobile marketing revenue; we expect WAP-based advertising to be the largest category for mobile advertising spend in the short-term; mobile TV and video are more longer term opportunities, but will bring in tangible revenue.
Similarly, we expect a disintermediation of the mobile advertising value chain. Even operators are not immune to disintermediation as brands bypass operator portals to go directly big to media WAP sites (e.g., Google). In this report, we analyze which players are unlikely to survive – unless they take action. We also review sample MNO and MVNO approaches toMobile advertising, from the now-defunct Mobile ESPN model to the far-fetched ad-supported Xero Mobile model.
This in-depth report includes case studies of MVNOs, Operators, Vendors, Portals, and Agencies who are harnessing the power of mobile advertising today.
Which of the four types of “pull” mobile media - SMS, Mobile Web (Display & Search), Mobile Video/TV, and Downloadable Applications/Content - will be the largest categories for mobile advertising spend, in both the short and long term?
Of the six parties in the mobile advertising value chain - the Brand, the Advertising Agency, the Advertising Enabler, the Media Company, the Mobile Operator/MVNO, and the Subscriber - which will remain a driving force in the industry, and which will become obsolete? What will the long-term mobile advertising landsccape look like both in terms of number of players and type of players?
How effective will mobile advertising be in providing new revenue streams for operators? What are the risks and considerations, including the affect on churn, that operators should consider?
What is the best way to introduce subscribers to mobile advertising? How can all parties facilitate a learning curve that brings end users up to speed with the medium?
How can brands best accomplish a shift in perception of mobile
