Estimates on the growth of mobile ad market vary, however all projections show significant growth in the next five years. Mobile ad market spend in 2010 is estimated at between $800M and $900M, with growth to propel the market size to over $2B by 2015. The explosive growth in mobile ad dollars is reflective to the ever increasing adoption of smartphones and mobile search and mobile web browsing to locate goods and services.
The flow of ad dollars into the mobile ad channel not only reflects consumer usage, but also effectiveness. A recent study by Insightexpress reveals that mobile advertising is, on average, four to five times more effective than online advertising. The study looked at several factors including aided and unaided awareness, brand favorability and purchase intent. Some of the reasons cited were the streamlined nature (less clutter & distractions) of the mobile phones allowing the ads to receive more attention. In any case, the effectiveness depends on ad units and landing pages, especially across different operating systems (OS).
Market share numbers of the major networks seems to be continually in flux, with the advantage recently tilting clearly in Google’s favor. According to IDC, Google is now the leader in mobile advertising and is on track to command a 59% market share by the end of 2010. Apple is the second leading player with a distant 8.4%, followed by Millennial Media with 6.4%. One of the factors of the recent Google ad revenue rise is the proliferation of the Android operating platform and the fact that Google dominates mobile search at over 90%. According to the research by Kelsey, Mobile Search and Mobile Display advertising will account for 81% of mobile ad revenues (with SMS accounting for the other 19%).
Lenco Mobile integrates with all major mobile advertising networks and manages budget based on market share and effectiveness.
Despite the fact that Google now reaches more handsets than any other mobile advertising network, careful attention should be paid to the demographic make-up of the intended audience. While mobile audience reach is one thing, each campaign needs to be crafted towards the exact user base within each network and delivered in a manner that allows them to best interact on their particular device (OS).
Lenco Mobile is integrated with all the mobile advertising networks and works closely with all the major wireless carriers concerning device standards and deliverability. A variety of targeting options are employed such as: by carrier, handset/OS, demographic, geo-location, contextual and publisher. Mobile advertising campaigns can be run for exposure (CPM) or traffic (CPC) and all results are continually optimized for performance in conjunction with creative testing.
Lenco Mobile also manages advertising inventory for Jetcast, the largest online internet radio platform, which generates nearly 1 billion ad impressions worldwide. The network is currently only accessible online, but is slated to go mobile sometime in 2011 and offers some unique targeting opportunities across a variety of demographics and countries.
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