Mobile Marketing & Advertising 2012: Challenges and Opportunities

Report Summary

The mobile advertising landscape of 2011 is a blossoming field of opportunity with a rapidly expanding horizon. The accelerated global spending growth on mobile ad campaigns during the last five years is likely a function of three critical areas that we will examine more closely throughout this report: Mobile Devices, Mobile Technology Access, and Marketing Savvy.  This research evaluates the leading mobile marketing and advertising solution providers and analyzes their products and services.  The report provides forecasts and analysis from a global perspective of mobile advertising and marketing.
 
The report includes:

• Up-to-date consumer survey data by region
• Forecast through 2020 including forecast by global region
• Forecast by mobile marketing type (SMS, video, search, etc.)
• Case study examples of mobile marketing and advertising in practice
• Exclusive Mobile Advertising Supplier Perception Map by technological prowess and customer awareness/satisfaction

Audience:

• Traditional media outlets
• Mobile platform developers
• Mobile advertising networks
• Marketing and Advertising Agencies
• Smartphone and PDA manufacturers
• Mobile search and content aggregators

Key Benefits: 

• The report analyzes important metrics and trends on mobile advertising and marketing to inform executives making critical spending decisions during a down economy.
• Data explains ripe growth opportunities areas of mobile advertising by region; consumer behavior towards mobile devices and advertising effectives on purchase decisions.
• The report profiles key suppliers to the mobile ad space to help advertising buyers ensure they can optimize their mobile ad dollar spending.

 Report Findings:

• Mind Commerce estimates that global spending on mobile advertising and marketing initiatives will reach nearly $37.5 billion in 2012, a near 15% compounded annual growth rate since 2008. The Asia-Pacific region is leading the mobile charge and will chalk up an estimated budget of $15.8 billion in 2012. In comparison, Europe's spending on mobile advertising in 2012 will be about half as much ($7.9 billion) while North America's spending for 2012 will be $11.2 billion.
• Smartphones and tablets are playing an increasingly important role in driving mobile ad spending, with mobile searching and mapping the strongest earners. Video and audio mobile ads, meanwhile, are the fastest-growing ad segments, with momentum seen continuing through 2015.
• Mobile advertising networks are delivering 350 billion global impressions in 2011, generating $800 million in media spend, and earning $275 million in net platform and media services-related revenue. The U.S. market generated 50% of gross media spend, Europe 25% and Asia 25%, based on analysis of each network's billed impressions by geography.
• Mobile search, especially localized search, will be the dominant activity for marketers to engage consumers with branded communications but they should not ignore the potential of downloadable applications, streaming video, and, most certainly, mobile messaging.
• Mobile advertising and marketing industry to grow by a modest 6.1% CAGR between 2012 and 2016 to reach more than $47 billion. Although there is little doubt that spending on mobile data services is huge, parts of Europe are still far behind many other global markets likely due to the strong landline system and slower migration of consumers to mobile.
• Mind Commerce estimates the world market for mobile marketing and advertising revenues will reach nearly $54 billion by 2020, up from about $29 billion today, growing at an 8-year CAGR rate of nearly 5%. Spending will grow at the fastest rates by 2020 in countries outside of the core territories of North America and Asia, most likely Australia and South America, where cellular service will finally reach parity with the rest of the world.

Companies in Report:

• Adfonic
• Admob
• Advertising.com
• AOL
• Buzz City
• Datalogix
• Digital Trends
• Doubleclick
• eCoustics
• Google
• Greystripe
• Inmobi
• Jumptap
• Juniper
• MacCiti
• Madvertise
• Millenial Media
• Mobile Theory
• Mogreet
• Rhythm New Media
• Third Screen Media
• Vdopia

Table of Contents:
 
Part 1    Brightness on the Mobile Advertising Horizon.  4
The Rapidly Changing Mobile Advertising Landscape. 4
Mobile Messaging Vendors Grow Up. 13
Mobile Messaging, Mobile Search Critical Advertising Tool14
Mobile Video and Apps Is Fastest Growing Content Sector. 23
Section 2  The Mobile Marketing Opportunity. 26
Advertising Spending Growth Forecasts 2012 to 2020. 26
European Mobile Marketing Will Grow Gradually. 26
Europe Mobile Marketing Efforts Mature Slowly. 30
Asia is Mobile Global Leader. 31
Growth of Mobile Marketing Spending Faces Challenges. 32
Section 3  Mobile Marketing Vendors Make Their Mark. 35
Suppliers Provide Diverse Set of Offerings. 35
Advertising Networks Vie for Leading Brand Clientele. 37
Section 4   Recommendations for the Mobile Marketer54
During an Economic Downturn. 54
Global Market Spending to Reach $54B by 2020. 43
Immediate Measurement of Success Attracts Advertisers. 56

LIST OF Figures

Figure 1. Key Global Telecom Indicators for the World Telecommunication Service Sector in 2011  5
Figure 2. Global Spending on Mobile Advertising and Marketing (in U.S. $ billion), 2008 to 2012  7
Figure 3. Percentage of Mobile Subscribers Accessing Mobile Web (at least monthly)8
Figure 4. Percentage of Mobile Web Users Who Never or Rarely Use the Desktop Web  9
Figure 5. U.S. Spending by Type of Mobile Marketing and Advertising (in $ billions), 2008 to 2012  10
Figure 6. Year-Over-Year Growth Rates in Mobile Ad Spending by Type of Advertising, 2008 to 2012  11
Figure 7. Global Spending (in U.S. $ billions) on Mobile Advertising and Marketing by Ad Type, 2008 to 2012  12
Figure 8. Mobile Subscriber Monthly Consumption of Content and Applications  17
Figure 9. Global Mobile Content Consumption on iPhones and Smartphones  18
Figure 10. Share of Global Spending on Mobile Advertising by Ad Category, 2008 to 2012  21
Figure 11. Percentage of Searches Conducted Via of Mobile Advice, by Type of Search  23
Figure 12. Global Spending (in U.S. $ billions) on Mobile Advertising and Marketing, 2012 to 2016  28
Figure 13. Global Spending (in U.S. $billions) on Mobile Advertising and Marketing by Type of Ad, 2012 to 2016  29
Figure 14. 2011 Mobile Advertising Supplier Perception Map  36
Figure 15. Global Spending (in U.S. $ billions) on Mobile Advertising and Marketing, 2012, 2015 and 2020  44
Figure 16. Global Spending (in U.S. $ billions) on Mobile Marketing and Advertising by Type of Ad, 2012, 2016 and 2020  45
Figure 17. Share of Spending on Mobile Marketing and Advertising by Region, 2008 to 2020  46
Figure 18. Share of Spending by Mobile Marketing Format, 2006 to 2020  47
Figure 19. 2012 Share of Spending by Mobile Marketing Format by Region  48
Figure 20. Year-Over-Year Percent Change in Mobile Advertising and Marketing Spending by Type of Ad  49
Figure 21. 2020 Share of Spending by Mobile Marketing Format by Region  50