AdMob

The Truth About Marissa Mayer’s Surprise Deal With Google (GOOG, YHOO, MSFT)

Source: http://www.businessinsider.com/the-truth-about-marissa-mayers-surprise-deal-with-google-2013-2

Google Marissa Mayer

A couple weeks ago, Marissa Mayer surprised a lot of people in the industry when the company she runs now, Yahoo, announced plans to outsource some of its ad sales to the company that made her famous and she quit in July, Google.

In a note on its corporate blog, Yahoo said it had signed “a global, non-exclusive agreement with Google to display ads on various Yahoo! properties and certain co-branded sites using Google’s AdSense for Content and Google’s AdMob services.”

The news was surprising for a couple reasons.

Google Just Created A Gigantic New Mobile Ad Marketplace (GOOG)

Source: http://www.businessinsider.com/massive-google-just-created-a-gigantic-new-mobile-ad-marketplace-2012-6

mobile phone devices

Google has integrated AdMob, its mobile advertising service, into AdWords so that anyone buying web ads through AdWords can now also buy them on mobile devices served by AdMob, according to Jonathan Alferness, Google’s director of product management/mobile ads.

The move essentially turns the web and mobile ad markets into the same, massive market. It adds 350 million mobile devices and 300,000 mobile apps to the AdWords universe, on all types of devices. Previously, AdWords reached 2 million web sites accessible by computers.

The move comes hours after Facebook did something similar—providing turnkey access to mobile and desktop, display and news feeds ads through its ads API. Taken together, it appears that Google and Facebook envision the web and mobile ad marketplaces eventually fusing into a relatively seamless whole.

Jason Spero, head of global mobile sales and strategy at Google, told Ad Age he believes that the AdWords/AdMob conjunction will scale up the mobile market dramatically by applying Google’s main ad revenue engine to handheld device platforms.

On mobile, available inventory has thus far outmatched the demand for ads against it, depressing prices dramatically (especially at Google). A new influx of mobile advertisers from AdMob might raise mobile prices, but by directly pitting web ad inventory against mobile inventory it could also lead to lower average prices across the board.

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Thursday, June 7th, 2012 Uncategorized No Comments

Mobile Advertising Comes Of Age

Source: http://www.businessinsider.com/millennial-media-ipo-2012-1

 

millennial media ad impressionsMillennial Media, a mobile advertising network, filed for an IPO last week. We were waiting for this, as we’d predicted this would happen this year (though we didn’t think it would happen so soon).

How is Millennial Media’s business?

Pretty good, actually.

Here are the highlights:

  • The company generated $70 million in revenue in the first nine months of 2011, from just $6.2 million in 2008;
  • The company has never had a profitable quarter and is still losing money, $4 million for the first nine months of 2011.
  • It’s pretty big and growing pretty fast: it processed 40 billion ad impressions in December 2011, and impressions are growing fast (see chart); Millennial Media has 16.7% marketshare according to IDC.

The Business

millennial media revenues and lossesYou’ll almost certainly see plenty of headlines about Millennial “never turning in a profit” throughout its road show. That’s correct. It’s also irrelevant.

Millennial is growing fast and into an enormous market opportunity–mobile advertising. It should not be profitable. Gartner thinks mobile advertising will be a $20.6 billion market by 2015, which may be conservative. That’s the opportunity Millennial is going after.

What’s more, Millennial Media seems to be gaining both market and operating leverage.

millennial media advertisersMillennial Media’s gross margin, which is roughly the amount it keeps after payments to publishers, improved from 34% to 39% in the first nine months of 2011 compared to the same period in 2010. This is happening as Millennial is growing both advertisers and spending per advertisers, as you can see in the chart at right.

What’s more, Millennial’s losses are narrowing, as you can see in the chart above.

All of this suggests that Millennial is gaining both market leverage–as it gets more established it can keep more of the revenue it generates for publishers–and operating leverage–gaining operational efficiencies as it scales up.

The Market

Mobile Advertising RevenueOne thing people might be worried about is competition from Apple and Google. We’re not. Here’s why:

  • Even though Google is much bigger than Millennial (see chart at right, using data aggregated and estimated by Business Insider Intelligence), most of that is on owned-and-operated properties. Google’s AdMob network is bigger than Millennial’s but it is not dominant.
  • Apple’s online advertising format/network, iAds, has struggled in the marketplace.
  • Ad networks are not a winner take all market. On the web, there are a few giants, and many profitable smaller players. There’s no reason why it couldn’t be the same on mobile, and Millennial, as the biggest independent player, is well positioned.

THE BOTTOM LINE: Millennial Media looks like a strong business scaling up nicely in an exciting, fast-growing market. It’s kind of a boring business–an ad network, but it seems to be executing well. More importantly, don’t trust the media reports that will inevitably bang on about how Millennial has never been profitable. Yes, that’s true, but it doesn’t matter.

 

 

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Tuesday, January 10th, 2012 news No Comments

iPhone Owners Download Twice As Many Paid Apps As Android Owners (GOOG, AAPL)

Source: http://www.businessinsider.com/chart-of-the-day-apps-iphone-ipod-android-2010-6

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Apple iPhone owners are downloading almost twice as many paid applications as Google Android users, according to data from Google‘s mobile ad company AdMob. AdMob included this chart in its monthly mobile stats report.

AdMob doesn’t provide any explanation for this phenomenon, so here are our guesses:

  • iTunes has a smooth purchasing/payment process. Google’s marketplace might not be as good.
  • iTunes does a good job of highlighting popular paid apps. Android isn’t as good at that.
  • There are probably more paid apps on a relative basis for iPhone than Android.
  • The iPhone is positioned as a premium phone. Verizon offers some Android phones for free, same with T-Mobile. If you get your phone for free, you might be less willing to spend for applications. (Or be the type of users who buys paid apps.)

chart of the day, apps on iPhone, iPod, Android, 2010

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Monday, July 5th, 2010 news No Comments

Android Phones Surpass iPhone in Web Traffic

Source: http://lifehacker.com/5525578/android-phones-surpass-iphone-in-web-traffic

Android Phones Surpass iPhone in Web TrafficAccording to data collected by mobile advertising network AdMob, Android phones have surpassed the iPhone in mobile traffic—at least in terms of ads served to the devices, which is a pretty good measure for overall traffic. As mobile browsers account for more and more of our online time, it’ll be interesting to see how the OS distribution works out. [TechCrunch]

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Wednesday, April 28th, 2010 statistics No Comments

‘we tried to buy a company called AdMob’

Source: http://www.engadget.com/2010/04/08/steve-jobs-we-tried-to-buy-a-company-called-admob/

We’d previously heard rumors that Quattro Wireless was Apple’s consolation prize after a deal with bigger mobile advertising rival AdMob fell through, and Steve Jobs confirmed it on no uncertain terms at the Q&A session following today’s iPhone OS 4.0 event: “we tried to buy a company called AdMob… but Google snatched it away.” Indeed they did, though that deal hasn’t yet been approved by the Federal Trade Commission while Apple’s already up, up and away with its iAd solution, so it seems like everything shook out for the best — if you’re an iPhone developer, anyway.

Steve Jobs: ‘we tried to buy a company called AdMob’ originally appeared on Engadget on Thu, 08 Apr 2010 14:41:00 EST. Please see our terms for use of feeds.

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Thursday, April 8th, 2010 news No Comments

How the iPhone Could End Up In Second Place

Source: http://gizmodo.com/5504622/how-the-iphone-could-end-up-in-second-place

How the iPhone Could End Up In Second PlaceHere are the US mobile web traffic figures for iPhone OS and Android, getting ready to collide: Android, on its way up; iPhone, on its way down. So when will Android overtake the iPhone? Try next month.

AdMob’s Mobile Metrics Report sees a predictable continuation of what we’d seen before from the ad tracking firm—specifically, that Android is on a serious tear, thanks in no small part to the massive success of the Droid. But before, the iPhone seemed unassailable. Now, it’s about to get trumped by Google’s OS, on terms it defined. In the US, that is. The rest of the world’s still warming to Android.
How the iPhone Could End Up In Second Place
Modern smartphones are as much browsing devices as they are phones, so while mobile traffic isn’t the best way to measure total sales for a device, it’s a solid way to measure a device’s success, both in terms of how many people are using it, and how it’s getting used. The iPhone is a browsing device. So is the Pre. So are all the Android phones. But Windows Phones? BlackBerrys? Symbian devices? As popular as some of these are, they’re obviously not being used as smartphones.

The other key piece here, and one that’s not obvious from looking at the chart, is total browsing: It’s up. Way up. 193% up, in just one year. So when I talk about the iPhone falling to second place, I’m not declaring a loser—just a platform that’s winning more slowly. (Note: AdMob was recently, and generously, acquired by Google, though their advertising solutions are still cross-platform.) [Ars Technica]

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Monday, March 29th, 2010 charts No Comments

iPhone OS is still king of the mobile web space, but Android is nipping at its heels

Source: http://www.engadget.com/2010/03/29/stats-iphone-os-is-still-king-of-the-mobile-web-space-but-andr/

AdMob serves north of 10 billion ads per month to more than 15,000 mobile websites and applications. Thus, although its data is about ad rather than page impressions, it can be taken as a pretty robust indicator of how web usage habits are developing and changing over time. Android is the big standout of its most recent figures, with Google loyalists now constituting a cool 42 percent of AdMob’s smartphone audience in the US. With the EVO 4G and Galaxy S rapidly approaching, we wouldn’t be surprised by the little green droid stealing away the US share crown, at least until Apple counters with its next slice of magical machinery. Looking at the global stage, Android has also recently skipped ahead of Symbian, with a 24 percent share versus 18 percent for the smartphone leader. Together with BlackBerry OS, Symbian is still the predominant operating system in terms of smartphone sales, but it’s interesting to see both falling behind in the field of web or application usage, which is what this metric seeks to measure. Figures from Net Applications (to be found at the TheAppleBlog link) and ArsTechnica‘s own mobile user numbers corroborate these findings.

Stats: iPhone OS is still king of the mobile web space, but Android is nipping at its heels originally appeared on Engadget on Mon! , 29 Mar 2010 10:18:00 EST. Please see our terms for use of feeds.

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Monday, March 29th, 2010 charts No Comments

The iPod Touch Is This Generation’s Tamagotchi

Source: http://feeds.gawker.com/~r/gizmodo/full/~3/SM6HjEBs9Ok/the-ipod-touch-is-this-generations-tamagotchi

All these wonderful things we’re learning today, from data! First, we find out that Android is a guy thing. Now, we discover that the iPod Touch shares more demographics with glittering vampires than smartphones. iPod Touch: Kid stuff.

The age distribution makes a lot of sense, especially with the direct available comparison of the iPhone: the iPod Touch is a good gift, a plausible purchase, and a good investment for a young person right now. An iPhone with a $70-a-month minimum contract is a tougher sell, either to parents, or to kids mostly supported by their parents.

And these kids don’t just buy different gadgets than adults—they use them differently, too. For example, they looooove apps:
But they’re stingy little bastards, these kids:
Buying an app can be tough without a credit card, so again, this isn’t shocking. But it does poke a little hole in the idea of the iPod Touch as a massive moneymaker for Apple. Hardware sales are tremendous and highly profitable, sure, but once the devices are in users’ soft little baby hands, they don’t keep raking it in like the iPhone does. [AdMob]

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Thursday, February 25th, 2010 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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