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Mobile Advertising Forecasts All Over The Map From $11-$250 Billion

  • March 3rd, 2008
  • 1:55 pm

Advertising is the next big opportunity in mobile—by some estimates released this week, it will be a burgeoning $250 billion industry within two years, but other more conservative estimates predict it to fall between $11 billion and $20 billion in the next three years. So, which is it?

This week’s outrageous projection—$250 billion by 2010—came from the GSM Association, which believes that an initiative that Vodafone, O2, T-Mobile, and 3 are working on, could make it as easy for advertisers to run campaigns on mobiles as it is on TV or in print. The results were reported in Mobile Entertainment.

Criticisms came fast. Chetan Sharma, who co-authored the book “Mobile Advertising: Supercharge your brand in the exploding wireless market” said in his blog: “I have seen ridiculous projections before but this has to top everything we have seen before and then some more.” In an October cover story in the Economist that hailed mobile phones as a marketers’ promised land, still said mobile advertising is only a tiny business. In 2006, $871 million was spent on mobile ads worldwide, according to Informa Telecoms & Media, and the most bullish forecasted between $11.4 to $20 billion by 2011.

The GSMA said the industry will be large because of all the great things about mobile that we’ve all heard before—it’s a personal device that people carry with them always; and it can provide behavioral statistics on consumers; and therefore it can provide more targeted ads. The article points out that the carriers are doing this as a defensive move against Google and others. Their aim is to build a system that’s as quick and painless as online, while still reaching millions of consumers.

So, the question is, will the carriers be able to pull it off? In Sharma’s first chapter, he points out what the wireless industry is up against: “The challenge is that the market is too nascent to make simple linear projections and assumptions. We must be mindful of the difference between emerging and steady state markets when building our business strategies.”

   

 

Amobee Taps Canada’s Target Broadcast Sales for Ad Selling Partnership

  • January 24th, 2008
  • 11:58 am

Amobee Media Systems and Target Broadcast Sales Inc. announced today a new partnership through which Target Broadcast will represent the sales channel for select mobile advertising inventory managed by Amobee. Advertisers eager to reach the Canadian market can now take advantage of new opportunities in mobile advertising. Amobee is the world leader in advertising solutions for mobile operators. Target Broadcast Sales Inc. is Canada’s only independently owned national media sales organization.

“We anticipate mobile advertising becoming an increasingly important medium and are eager to work with a wide range of Canadian brands and media buyers. Target Broadcast can now help advertisers maximize the marketing opportunities mobile advertising creates,” said Stephen Sienko, president of Target Broadcast Sales, Inc. “Amobee provides an excellent fit for our clients since it is the only ad serving technology capable of inserting advertising impressions in all forms of content: WAP Browsing, Video & Music, SMS, MMS, and Games.”

Target Broadcast maintains five sales offices throughout Canada and will sell mobile inventory and develop relationships with major advertising agencies representing media buyers. Target Broadcast will benefit from Amobee’s existing relationships and expertise in the mobile advertising industry and its strong connection to top Canadian carriers.

“With this agreement, Amobee has continued its strategy of partnering with trusted names in ad-selling. This approach enables us to focus on our core expertise – developing the best ad-serving solutions available,” said Zohar Levkovitz, Chief Executive Officer of Amobee Media Systems. “The partnership approach to ad-selling has been highly effective for us.”

Mobile advertising presents an unprecedented potential to increase reach for advertisers. According to Pyramid Research, by 2010 1 billion new mobile subscribers will join the current base of 2.8 billion. Further, Informa projects worldwide mobile brand advertising will rise to $11 billion by 2011.