The next advertising revolution
November 12, 2007 at 4:58 pm | In Mobile | Leave a CommentTags: Mobile
Today mobile marketing (MM) is a growing sector in the global advertising world. Mobile marketing first appeared in 2001 but will soon represent a fundamental part of marketing strategies. With the technology for ad delivery becoming more effective, MM could replace some traditional forms of advertising by providing immediate and intimate access to consumers. Predictions are that mobile phones will turn out to be the technology of preference for accessing the internet within a few years. The mobile phone is becoming a primary means of communication not only for traditional calls but for digital services as well, including navigation, email and digital photos. In 2006, 15% of a worldwide 350 billion messages were classified as marketing messages.
The main advantage of mobile marketing is the possibility of creating an individual interaction with a specific target audience. The data available to operators will make personalized targeted campaigns possible. The ability to view information about how the user responded to a marketing message and the feedback that the message has been delivered makes mobile marketing very attractive to advertising brands.
Advertising brands spend between 5% and 25% of their total marketing budget on mobile marketing and 90% of 50 major brand names have indicated that by 2008, they will be willing to advertise their products through mobile messaging. Mobile marketing is expected to be more valuable than direct mail and the special offers made via mobile phone are considered to be highly effective methods of advertising.
Statistics have shown the enormous growth of mobile users. In 2006 there were 1 billion mobile phones sold and in many countries there is more than 1 mobile telephone per person. There were more than 2.8 billion Mobile internet users in 2007 (20% of mobile users are now regularly using WAP capability on their phones) and the number of mobile subscribers is expected to reach nearly 4 billion in 2011.
Mobile marketing offers a competitive advantage over other traditional advertising methods such as TV, radio, paper or even the Internet, because consumers can be targeted at any time, anywhere.
Another important advantage is the possibility to target people via operating systems and applications, behaviour and personal data stored by operators and geolocalisation by Network Operations. For products and brands, mobile campaigns represent an efficient way to increase brand awareness and revenues, attendance to events or visits to a store and to increase customer loyalty.
Ads on mobiles, the next very big thing ?
November 12, 2007 at 4:55 pm | In Advertising, Mobile | Leave a Comment
Never has a media reached such an important amount of users in so little time. Already half of humanity owns a mobile phone, on all continents and in all cultures. There are more mobiles than televisions and computers put together!
With mobiles, it will be possible to precisely target an audience or an individual profile with ad formats adapted to this medium which are still to be invented.
Advertising on mobiles will overtake all other promotional forms known today as soon as it finds its marks and codes.
The mobile phone will transform advertising into information and change emotional values into useful ones.
Is the print media in danger ?
November 12, 2007 at 4:53 pm | In Advertising, Changes, Media 2.0 | 1 CommentTags: Advertising, Changements, Changes, dailymotion, edipresse, facebook, Media 2.0, netvibes, press, presse, ringier, twitter, youtube
Two important news items came out last week with Google’s announcement that it will provide free access to news feeds distributed by the news agencies feeding the print media.
The announcement is doubly important with the study by the Washington Post demonstrating that the classified ads market took nearly $3 billion in revenue from the press in 2006. In terms of advertising, it is even more flagrant; advertising budgets invested in the Internet will overtake those invested in the press and rise to €45 billion ($62 billion) in 2011.
“We are on the brink of a major change across the media horizon, influenced by technological changes, user habits and business advertising strategies” commented James Rutherfurd.
This information will only reinforce the questions that perpetuate in large press group board rooms. How to stop the flight of advertising investments and how to save one of the finest professions in the world “journalism”?
It is surely too late. When Facebook, Google and Youtube were born, press owners shunned the Internet, concentrating on the internationalization of their publications for free, thinking that it would be the winning strategy.
Unless the press regroups to offer qualitative advertising space on a European or worldwide scale with a single, self service advertising platform. At least engaging in a strategy of forced acquisitions of Web 2.0 companies with strong traffic like Dailymotion, Netvibes, Facebook, Twitter, etc…The press does not have very many exit options, which Rupert Murdoch and others have understood for a long time.
Record volume of acquisitions in 2007
November 12, 2007 at 4:48 pm | In Advertising, Innovation, Venture Capital | Leave a CommentTags: ads click, Advertising, baytech venture, index venture, Innovation, mangrove, openads, Venture Capital
This graph represents the evolution of M&A operations since 2002 in the advertising and online marketing field. An important acceleration can be observed since 2005 to reach a peak in 2007, when we’re only in the middle of the year.
Click to enlarge
Concerning recent investments in this field in Europe, after ADS-click in Geneva was given a 4 million $ financing by Baytech Venture in March 2007, it’s now Openads’ turn to receive 5 million $ from Index Venture and Mangrove. (Openads is based in London).
The future of online advertising, like the NASDAQ !
November 12, 2007 at 4:41 pm | In Advertising, Marketing 2.0 | Leave a CommentTags: Adbrite, adify, ads click, Advertising, Marketing 2.0, Quigo, rightmedia, Turn, Wunderloop
Like on the NASDAQ, or on a stock market, online advertising will trade on electronic markets in all available formats, from mobile to video, including sponsored links. Marketplaces are getting their “investments” ready to take the best places on a market estimated at over B100$ in 2009.
Today, Adbrite, Rightmedia, Ads-Click, Quigo, Adify, Turn, Wunderloop are getting ready to conquer these markets, whose progressions are huge.
Who will defy GoogleClick?
Google is behind in this field, stuck in the opaque Adwords and Adsense model which dates back to 2002. The online advertising giant has just bought Doubleclick, just as the company has announced the near release of an Ad exchanges technology. The sign of a fundamental strategic swerve for the search engine which aims to become a universal marketplace.
Another sign of the times, Yahoo wants to stay in touch by investing in Rightmedia, while in parallel launching Panama, a platform inherited from Overture.
Ad Exchanges
November 12, 2007 at 4:34 pm | In Advertising | Leave a CommentTags: adify, adsense, Advertising, adwords, doubleclick, google, rightmedia
Before and after the announcement on the possible acquisition of Doubleclick by Google, many articles talked about “Ad exchanges”:
What are Ad exchanges?
It is a network where advertisers and publishers are put in direct relationship via auctions on spaces or keywords. Like on eBay, buyers and sellers can see the best prices.
Example: a publisher supplied by the Adsense advertisement flux cannot decide on the price of keywords or spaces on his site. With Ads-click, it’s possible; a vertical portal will be able to set a higher CPC price depending on his audience which is more qualified. Today, Google and the other ad networks ignore these parameters.
The logic of the Ad exchanges concept is a network entirely managed by all the sector’s actors, publishers, advertisers and SEM companies unlike the current networks such as Google, Yahoo or Miva who are controlled by their owners. It is therefore a transparent network which is being built around the world’s oldest values, supply and demand, thereby creating the future’s marketplaces.
Mark Kingdon, CEO of Organic, Inc.’s interview on the subject by Om
Extract:
Om: If you look beyond today, how does this acqusition help Google? Does this buy them time, as the advertising industry tries and figure out its future models?
Mark: Advertisers buy what they know and they innovate on the edge so Google is expanding its relationships and market coverage. Everything that’s happening on the edge is having a gut-wrenching impact on the big middle. Think about YouTube and its impact on big media. Business models are slow to change when billions of dollars are at stake.
Om: Both Google and DoubleClick are moving ahead and setting up ad-exchanges. Are they a key component to this deal?
Mark: TBD. It sounds like an obvious direction for Google to take. Add in real- or near-real time optimization across different digital media and you have a mouth-watering concept. Everything from commodities to collectibles are sold on exchanges so why not ads? Here’s why: there is a big business built on the buying and selling of ad space. It comfortable, familiar and very profitable for the participants.
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