Microsoft Checks in to Mobile Ad Deal With Hyatt
By Jason Ankeny
Microsoft announced a mobile advertising agreement with Hyatt Hotels & Resorts that leverages the software giant's mobile search and display ad relationship with Verizon Wireless to drive traveler interest in the Hyatt Gold Passport frequent guest rewards program and encourage travelers to visit the hotel chain's new mobile website. According to Microsoft, Verizon Wireless customers can now turn to the mobile web to more efficiently find Hyatt hotels, book rooms, view and change reservations, check in or out, receive special promotions, and access general information on the go.
Microsoft Mobile Advertising is now active in 12 countries. Microsoft notes that earlier this year, it conducted a research study for Toyota in France in advance of the introduction of its IQ car in an effort to determine the impact of a "two screen versus one" advertising approach in reaching consumers. The findings: Incorporating mobile advertising with online display advertising drove a 200 percent incremental lift in ad recall and a 40 percent lift in brand recall. In addition, mobile display experienced a 350 percent lift in ad recall and a 125 percent increase in brand recall with the inclusion of mobile search ads. [FierceMobileContent]
Survey: Users Agree to Billing Discounts for Mobile Ads
By Jason Ankeny
Fifty-six percent of mobile subscribers would agree to view ads on their phones in exchange for a 25 percent to 50 percent discount on their monthly bill according to a new consumer study commissioned by open source solutions provider Transverse and conducted by market strategy consultancy iGR. Mobile subscribers under age 35 are most receptive to mobile ad discount incentives, the study reports, with users ages 18 to 25 most willing to trade the number of text messages sent/received--consumers ages 26 to 44 were most willing to view ads in exchange for discounts on voice services.
However, 46 percent of survey respondents said that while a 25 percent to 50 percent monthly discount is enough of an incentive to provide access to usage patterns including web browsing, messaging habits and location, those same discounts are not enough to convince them to share personal information including the content of texts and emails. [FierceMobileContent]
Mobile Ads Might Work with Teens
Their attention has a price
Nearly one-half of teen mobile phone users in the US said they would be at least somewhat interested in accepting mobile ads, as long as they got something in return, according to a September 2008 study conducted by Harris Interactive for mobile trade group CTIA.
Harris surveyed mobile users ages 13 to 19, and found that more than one-half of respondents were not interested in mobile ads, even in exchange for some type of incentive. Incentives are likely to be part of many mobile ad campaigns, because a majority of users are opposed to mobile marketing in general.
For the past three years, Synovate has surveyed mobile phone users in the US on behalf of the Mobile Marketing Association. Each year, at least three-quarters of respondents said they were not interested in mobile marketing.
It is easy to understand why marketers want to reach US teens through their mobile phones. Multimedia Intelligence said in June 2008 that there were more than 16 million mobile teens in the US.
And a full 71% of teens ages 12 to 17 surveyed by the Pew Internet & American Life Project and the National Commission on Writing for an April 2008 report said they had mobile phones.
Agencies and brands from all verticals rely on eMarketer Total Access for analysis and data. Daily articles are just the tip of the iceberg. Find out what you are missing. Learn more about Total Access today. [eMarketer]
How Many TV Ad Dollars Can Online Video Advertising Grab?
Focusing closely on spending.
The frequently asked questions swirling around US Internet video advertising can be funneled into two main streams: One, why has online video ad spending not grown as swiftly as predicted? And two, when will it take off?
To answer the second question first, this year's 55.9% increase in online video ad spending is a key indication that the channel is at least gaining speed—accompanied by parallel growth in the kind of trusted video content, such as sports, to support it.
"By 2012—when both traditional and alternative media companies will be distributing far more professional-quality video content online, and when the national elections and the summer Olympics will contribute far more to video ad spending than they will in 2008—annual growth will peak at 78.9%," says David Hallerman, senior analyst at eMarketer and author of the new report, Video Advertising Online: Spending and Pricing.
NBC's results for the Beijing Olympics underscored video's increasingly central place on the Internet and the still-problematic position of video advertising.
"With record traffic to NBCOlympics.com, the online portion of the games looked to be a major success. At the same time, eMarketer estimates that the site collected approximately $5.75 million in video ad revenues, or about 1.1% of this year's $505 million total video ad spending," says Mr. Hallerman. "That revenue—both substantial for one site in only 17 days and insufficient for an event of Olympian magnitude—illustrates the market's growing pains."
Read More - eMarketer
Forecast: Mobile ad Revenues to Top $1.89B by 2012
By Jason Ankeny
Mobile advertising revenues in the U.S. are expected to top the $1.89 billion mark by 2012, galvanized by the ubiquity of mobile services and increasing consumer uptake of a variety of mobile data services and applications, according to a new forecast issued by market research firm Frost & Sullivan.
Citing mobile penetration rates closing in on the 85 percent mark and a consumer base of almost 250 million U.S. subscribers, Frost & Sullivan reports operators are developing ambitious new campaigns for both on-deck and off-deck advertising, seizing on advertising's abilities to subsidize content production costs and reduce service usage costs. In particular, the wireless industry is paying particular attention to in-application mobile advertising off-deck.
Frost & Sullivan adds that operators must be cautious in shielding subscribers from overzealous marketing efforts if providing advertisers with data on consumer demographics, location, handset and related parameters. [FierceMobileContent]
Forecast: Mobile Ad Revenues to Top $1.89B by 2012
By Jason Ankeny
Mobile advertising revenues in the U.S. are expected to top the $1.89 billion mark by 2012, galvanized by the ubiquity of mobile services and increasing consumer uptake of a variety of mobile data services and applications, according to a new forecast issued by market research firm Frost & Sullivan.
Citing mobile penetration rates closing in on the 85 percent mark and a consumer base of almost 250 million U.S. subscribers, Frost & Sullivan reports operators are developing ambitious new campaigns for both on-deck and off-deck advertising, seizing on advertising's abilities to subsidize content production costs and reduce service usage costs.
In particular, the wireless industry is paying particular attention to in-application mobile advertising off-deck. Frost & Sullivan adds that operators must be cautious in shielding subscribers from overzealous marketing efforts if providing advertisers with data on consumer demographics, location, handset and related parameters. [ABI Research]
Rapid Growth In Chinese Mobile Advertising
Madhouse, Inc., one of China’s largest mobile ad networks, reported that they have served over 2.3 billion mobile ad impressions in the first 6 months of 2008. This is nearly 5 times the total number of ads served in all of 2007.
Founded in 2006, Madhouse has been a leader in mobile advertising in China. They launched a contextual ad service in late 2007, and were the first company in China to provide full screen interstitial mobile ad products and mobile video ad products in the 1st half of 2008.
Today, Madhouse can serve ads to targeted audiences according to mobile user location, phone brand, model and retail price. Madhouse is also able to increase ad effectiveness by managing and optimizing the ad versions and ad frequency of marketing material shown, clicked, or downloaded to every unique mobile user.
With over 2,000 phone models available in China today, ads can also be optimized for the differing screen resolutions.
Madhouse has also been very active in the Mobile Marketing Association, and has participated in the development of the MMA Asia-Pacific Guidelines. Madhouse also sits on the MMA APAC board. [MobiAdNews]
Forecast: Mobile Ad Revenues to Top $12B by 2011
By Jason Ankeny
Worldwide mobile advertising revenues will grow to more than $12 billion by 2011 according to a new forecast released by information technology research and advisory firm Gartner, which adds that operators must differentiate their advertising approach in the face of direct competition from device makers and web services giants like Google and Yahoo.
Gartner argues carriers must exploit access to multiple delivery channels including SMS, MMS, email, mobile search and location-based services--at the same time, operators must tread carefully to balance their advertising ambitions with user privacy and spam control concerns.
Gartner says operators must also convince advertisers and marketers their value proposition is an effective alternative to traditional media channels like television and newspapers as well as the web, drawing on inherent strengths like their subscriber relationships, understanding of local markets, customer databases, network control and multiple channel access.
"Carriers can expect to become an integral part of consumers' lifestyles when they can reliably deliver relevant advertisements to them," said Gartner research director King-Yew Foong in a prepared statement. "This will require closer cooperation and partnerships with other businesses, such as retailers, restaurants and cinemas." [FierceMobileContent]
Google: Mobile Ads Will be More Lucrative Than Online
By Jason Ankeny
During an appearance Wednesday on CNBC's Mad Money, Google CEO Eric Schmidt said he believes mobile advertising revenues will eventually outstrip traditional web advertising. "Over time we will make more money from mobile advertising," Schmidt told Mad Money host Jim Cramer. "Not now, but over time."
According to Schmidt, Google has no intention of opening up its home page to advertising, instead pinning its revenue hopes on the mobile platform and its ability to personalize ad content: "We absolutely are not going to sell that page," he said, arguing that shareholders understand the value of keeping the home page free of ads, even if a reversal in thinking could generate "some number of billions of dollars." [FierceMobileContent]
"Call to Action" Mobile Advertising Reaching $419 M by 2012
The combination of mobile TV and the inherently cellular back channel are creating a new category of advertising known as "Call to Action" advertising, according to recent research by MultiMedia Intelligence. Call to Action advertising was virtually non-existent in 2007, but the specialty advertising market will grow to $419 million in worldwide advertising revenue by 2012.
Call to Action advertising has special promise. A call to action is a feature that allows one to get more information or to communicate with the advertiser while the advertisement is playing. For example, if you see an advertisement for the latest car, you would press the call to action button and an SMS text could be sent to your phone with the nearest dealership or a dealer could send you more information.
"The cell phone is inherently an inferior entertainment platform when compared to other media devices like TVs," according to Frank Dickson, Chief Research Officer for MultiMedia Intelligence. "However, the cell phone is inherently a superior portable communications platform. It allows the possibility for TV advertising outside the home as well as creating a new form of advertising, Call to Action advertising. Call to Action leverages the built in return channel of the handset to deliver advertising beyond the capabilities of the existing living room TV experience."
MultiMedia Intelligence also found that:
- Total Mobile TV and Video advertising revenue, including "Call to Action" advertising, will exceed $1 billion by 2012
- Regionally, Call to Action advertising will be driven by the North American and Asian markets. Asia tends to lead in driving new applications. North America tends to lead in driving advertising.
- Consumers are demanding more personalization and entertainment content on their mobile phones, driving mobile TV and video subscription revenue to almost $3.5 billion in 2008. By 2012, mobile video and mobile TV will exceed $14 billion
- Mobile TV ARPUs are much higher in North America and Europe than Asia due to the lack of free-to-air alternatives.
- With the combination of a large wireless subscriber base and free-to-air alternatives, Asia has the vast majority of all mobile TV subscribers. By 2012, Asia will have two thirds of all mobile TV subscribers. [FierceWireless]
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