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RIM continued its downward slide yesterday. In the quarter ended May 31, it shipped shipped only 7.8 million smartphones, which was the same amount they shipped in the second quarter of 2009 three years ago. Global smartphone shipments have tripled over this same period.
Its market share, meanwhile, has slid from a high of 21 percent in 2009 to 7 percent in the first quarter. We don’t know what its market share will be in the second quarter yet, but given the huge slide in shipments we would expect it to drop farther.
Compounding its woes, Blackberry delayed the release of its latest smartphone platform until 2013. A sale or breakup of RIM seems inevitable at this point. While RIM is undeniably maimed, the sale of a company shipping 40 million smartphones per year will have a significant impact on the mobile industry.
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We’re holding our Mobile Advertising Conference tomorrow, and one of the things we’ll discuss is the breakdown of mobile ad spend.
Right now, mobile ad revenue is predominately from mobile search. According to data from the Interactive Advertising Bureau, search accounts for 62 percent of mobile ad revenues, with the balance coming from display and SMS ads.
It’s even more dominant overseas. Search accounts for 48 percent of mobile ad spend in North America, but is 72 percent and 65 percent in Asia and Europe, respectively.
Conventional wisdom holds that mobile ad spend will surge to catch up with user engagement. However, as Henry Blodget wrote in January, “Most individuals do not spend more money buying things merely because they can now use the web on their mobile devices.” In other words, advertisers will only spend more money if they believe they can increase their return on investment. Mobile spending may indeed catch up with engagement, but it will come partially at the expense of other kinds of advertising.
Want more data about mobile ads? Watch for a special report from BI Intelligence on the State of Mobile Advertising later this week….
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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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