When Google’s acquired AdMob and Apple introduced iAd the ad industry had an inkling that this technology would be big. Now they are getting more indications of just how big mobile advertising can get. Recently, eMarketer revised upwards its estimate of the mobile ad market predicting it will reach $743 million, a growth rate of 79%, this year. It expects spending to hit over $1.1 billion in 2011 and more than $2.5 billion by 2014. Previously, it forecast that US mobile ad spending would reach just $593 million this year.
Another, more recent sign: Greystripe's growth projections for the year. The company predicts bookings for Q4 will be a 600% more from the year-earlier period. With these numbers – and the now widespread assumption that mobile marketing has achieved mainstream status - it is wise to keep the following in mind.
SMS Still Rules
New platforms such as iAd have added sex appeal and grabbed headlines in this once staid category largely characterized by SMS - but that technology is still the mainstay. SMS is still the largest format, with spending of $327 million estimated for 2010, according to eMarketer. In fact, the category is expanding to include additional functionality, namely by adding interactivity to the campaigns.
Phizzle's web platform, PhizzleMobile, lets brands engage audiences with Text-2-Win promotions, Text-2-Vote polls and surveys, and Text-2-Screen. Skycore recently launched an enhanced, online, self-service platform that allows mobile marketers to upload, integrate and deliver video content to consumers along with scannable 1D/2D barcodes and other rich media content. Applications might include movie trailers sent with tickets; sports videos sent with tickets or comedy show videos sent with mobile receipts and a "Come Back" coupon.
Display Doesn't Automatically Mean iAd
eMarketer believes other formats within the mobile category will grow, especially display. To many, that means iAd, but marketers are considering other paths. Strata reports that while the iPhone remains the top choice with 82.7% of marketers it is losing ground to Android devices, which has received 9% boost since the last quarter.
New Options
New options for mobile advertisers include Opera Software, which is using AdMarvel, the mobile ad network it purchased back in January, to launch an Open Mobile Ad Exchange on phones and in markets where Opera Mini is the dominant browser. Sprint is also taking a stab at the mobile ad market with "Sprint ID," which bundles packs of applications together around a theme. Then there is Burstly, which is going to sell ads directly to clients instead of relying on networks. The company has launched a new Storefront that allows app developers to set up portals where advertisers can directly purchase placements.
