Mobile
Facebook Now Controls Nearly One-Fifth Of U.S. Mobile Display Ad Revenue
Source: https://intelligence.businessinsider.com/welcome
Facebook has vaulted past its competitors to control 18.4 percent of U.S. mobile display ad revenues.
Mobile Accounts For Over 60 Percent Of Pandora’s Ad Revenues
Source: https://intelligence.businessinsider.com/welcome
Mobile continues to drive Pandora’s ad business.
Mobile ad revenues for its fiscal third quarter were $66 million, up from an estimated $53 million a quarter prior. Mobile accounted for 62 percent of total ad revenues, compared to 59 percent in the second quarter.
Overall mobile revenues, including subscriptions, increased $15 million in the quarter to $74 million.
Pandora is a prime example of how mobile is transforming what were once Web-based companies. With 77 percent of usage now coming from mobile— not to mention a majority of revenues— Pandora is essentially a mobile company.
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How Mobile Is Waging Battle For The Multi-Screen Living Room
For over a decade, big tech companies, including IBM, Apple, and Microsoft, have been promising to take over the living room.
But home entertainment has proved a hard business to crack, and consumers remain tied to their TVs and panoply of set-top devices.
In a new report from BI Intelligence, we examine the distinct scenarios via which mobile devices will wage their battle for the living room, analyze what happens when screens collide and how the new multi-screen living room will actually function, and detail the opportunities being presented to mobile developers, advertisers, and device manufacturers.
Access the Full Report By Signing Up For A Free Trial Today >>>
Here’s an outline of how mobile devices are waging the battle for the living room:
- Source: The ability to relay high-quality video (including online video and games) wirelessly places mobile in competition with a whole galaxy of devices. Wireless TV connections are becoming increasingly common, and with them, the ability to bring smartphones and tablets more easily into the mix.
- Selection: When hand-held mini-tablets and smartphones are able to send signals to audiovisual equipment and home theaters, consumers gain more flexibility with a remote control based on a smartphone or tablet. Many apps, with attractive displays and intuitive touch-screen interfaces, are being developed for TV. As Time Warner CEO Jeff Bewkes recently said, competition in the TV int! erface s pace is heating up, and we’re going to see “as many interfaces as you can get.”
- Synchronization: In the US, 85% of U.S. tablet owners use their tablet while watching TV. In order to leverage the second screen as a companion to what’s happening on the TV, media companies must successfully migrate consumers from self-initiated use of the second screen to a programmed experience.
In full, the special report:
- Analyzes what happens when screens collide and how the new multi-screen living room will actually function
- Examines the distinct scenarios via which mobile devices will wage their battle for the living room
- Explores the opportunities for mobile developers, advertisers, and device manufacturers.
- Is full of illustrative charts and data
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Mobile Traffic To E-commerce Sites Doubled In The Past Year
Source: https://intelligence.businessinsider.com/welcome
Smartphones and tablets continue to drive an increasing share of e-commerce traffic.
According to Monetate, mobile accounted for 18 percent of e-commerce traffic in the third quarter, up from 8 percent a year prior.
Smartphones drove a larger share of traffic than tablets, which reflects their increased penetration and perhaps the popularity of “showrooming,” when consumers use their smartphone in-store to compare prices.
Retailers, both online and brick-and-mortar, have to heed consumers’ changing shopping habits. According to IBM, mobile accounted for 16 percent of Black Friday online sales this year, up from 9.8 percent a year ago.
(For more information on mobile commerce, and how brands can win, read our special report.)
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Mobile Internet Traffic Surpasses Desktop Traffic In Some Countries
Source: https://intelligence.businessinsider.com/welcome
Mobile traffic as a share of all Internet traffic has been increasing steadily worldwide.
We have been tracking the global figure for some time. But a look at regional and country-level data reveals that in some countries, mobile’s already the preferred Internet access device. Also, some world regions tilt more toward mobile than others.
As of September, 12 percent of the planet’s Internet traffic came from mobile devices, and 88 percent from desktop, according to StatCounter.
The United States is not too far from the global average, with mobile at 10 percent. But in Asia, 20 percent of traffic now comes from mobile (the proportion almost doubled compared to a year before). In Africa, mobile traffic is at 14 percent.
In Europe, mobile is 7 percent of all traffic, and in South America, 4 percent.
Looking at country-level data reveals some markets in which mobile already has surpassed desktop traffic. That’s the case in India, where 53 percent of traffic comes from mobile, and in African countries like Nigeria, where mobile is 56 percent of Internet traffic.
The data also reveal some countries which register significantly below or above their region’s average. China, with 6 percent of traffic from mobile, falls considerably below Asia’s average. The United Kingdom, at 13 percent, doubles the Europe-wide average.
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How HTML5 Will Take Over Mobile Apps
Source: http://www.businessinsider.com/bii-report-how-html5-will-take-over-mobile-apps-2012-10
HTML5 is a new technology that allows developers to build rich web-based apps that run on any device via a standard web browser.
Many think it will save the web, rendering native platform-dependent apps obsolete.
So, which will win? Native apps or HTML5?
A recent report from BI Intelligence explains why we think HTML5 will win out, and what an HTML future will look like for consumers, developers, and brands.
Access The Full Report By Signing Up For A Free Trial Today >>
Here’s how HTML5 will eventually win out:
- The most popular types of apps will be early adapters: HTML5 is particularly useful for media apps and “access” apps (those that let you access an existing accounts via a mobile device, such as banks).This is because apps that display text, images and video and monetize through ads and subscriptions can be done more cheaply and effectively through HTML5.
- The increasing prevalence of “shell apps” will push things ! along: < /strong>These are apps that have a native “shell” so they can get in the app stores, but where the entire functionality is done via HTML5. These “hybrid” apps get the best of both worlds and mean more developing resources will shift to HTML5 over time. These “wrapper” apps will also end up on the web as HTML5 improves.
- HTML5 will eventually fulfill its promise as a classic disruptive technology: It’s currently less good than native apps at lots of things. But the technology is improving. And it is cheaper to produce HTML5 apps than native apps. Over time, the new, cheaper technology of HTML5 will get better and better, and as it does it will start to eat the rest of the market.
- But, it will still take a while: HTML5 comes from a consortium, which means the technology will evolve slowly. It still isn’t ready for prime time, as there are many things that HTML5 apps just can’t do right now — as Mark Zuckerberg confirmed in his first post-IPO interview with TechCrunch. So HTML5 will likely progressively replace apps as the feature set improves! , starti ng with media and “access” apps and ending with games, which require the richness of native software more than any other app type.
- What HTML5 is, giving an overview of how it is a technology done by committee
- Why the HTML5-vs-Apps debate matters, breaking down its impact on distribution, monetization, platform power and network effects, and functionality.
- The pluses and minuses of HTML5 vs. native apps, comparing each by cost, user experience, features, distribution, and monetization.
- How and when HTML5 will take over, laying out how it has all the hallmarks of a disruptive technology.
- The success of an HTML5 pioneer, The Financial Times.
- What an HTML5 future will look like, with the promise of richer and more interactive experiences.
To access BI Intelligence’s full report on HTML5, sign up for a free trial subscription here.
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Here Are The Major Players In Mobile Advertising
Source: http://www.businessinsider.com/bii-report-here-are-the-major-players-in-mobile-advertising-2012-10
We are in the post-PC era, and soon billions of consumers will be carrying around Internet-connected mobile devices for up to 16 hours a day. Mobile audiences have exploded as a result.
Mobile advertising should be a bonanza, similar to online advertising a decade ago. However, it has been a bit slow off the ground, and its growth trajectory is not clear cut.
In a new report from BI Intelligence on the mobile advertising ecosystem, we explain the complexities and fractures, and examine the central and dynamic roles played by mobile ad networks, demand side platforms, mobile ad exchanges, real-time bidding, agencies, brands, and new companies hoping to upend the traditional banner ad.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
Here’s an overview of some major players in the mobile advertising ecosystem:
- Mobile ad networks: Mobile ad networks aggregate advertising inventory and match it with advertisers, much as online ad networks do. Networks soak up ad inventory, analyze its potential, and sell it by matching it to advertisers’ needs. Where networks differentiate is in value-added services, such as aggregating buying power to strike better deals, or improve targeting. The largest ad networks have their own sales forces reaching out to advertisers, as well as their own campaign optimization technology.
- Demand side platforms (DSPs): These function similarly to ad networks, in the sense that they help match advertisers with inventory, but tend to work hand-in-glove with brands. DSPs are complementary to the ad network business because they more richly describe mobile audiences. But once DSPs start hiring their own staff to sell ad inventory, the complementarity could end, and DSPs would compete more head-on with ad networks.
- Mobile ad exchanges: Exchanges automate many parts of the mobile ad process, and can connect publishers with multiple ad networks. Ad exchanges are primarily supply-facing at the moment, and have relatively few interactions with mobile ad agencies (even less so with brands). Agencies are disincentivized from using exchanges because they threaten their lucrative role as the brands’ media buyers.
- Mobile Ad Agencies and Mobile Marketing: One of the gripes you often hear around the mobile ad industry is that agencies don’t get it. According to the U.K.’s Association of Online Publishers, 55 percent of publishers blamed “agencies’ attitude” for low mobile ad revenues. That may be changing. Several people we talked to said agencies are doubling down on mobile, and competency is improving.
- Natives: Other companies are emerging that don’t neatly fit the established categories. They resemble ad networks in that they connect advertisers with publishers’ inventory, but they express disdain for the traditional mobile advertising model. These companies are trying to find a native approach to mobile advertising that will break through consumers’ apparent disdain for mobile ads. We call them “the natives.”
In full, the report:
- Explains how the mobile ad ecosystem is fractured and complex
- Analyzes ! how mobi le ad networks play a central role that is coming under threat
- Examines how demand side platforms and mobile ad exchanges are streamlining the market
- Breaks down how real-time bidding will play a growing role
- Details how agencies are coming around to mobile and are trying to bring big brands along
- Explains how new companies are emerging with native ad formats that are hoping to upend the traditional banner ad
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Mobile Accounts for 7 Percent Of The U.S. Digital Ad Market
Mobile almost doubled its share of the U.S. digital ad market through the first six months of the year. According to IAB, U.S. mobile ad revenues were $1.2 billion in the first half of the year and 7 percent of total U.S. digital ad revenues, up from 4 percent a year prior.
Total 2011 U.S. mobile ad revenues were $1.6 billion, according to IAB. Half-year revenues of $596 million were about 38 percent of the year-end total. Holding all else equal, if the U.S. market grew at the same rate this year, 2012 mobile ad revenues would be $3.2 billion.
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Mobile Advertising Revenues Are Rising Like Crazy
Mobile advertising is on fire.
According to a report released today by the Interactive Advertising Bureau, mobile ad revenues have increased by 92 percent in the last year, rising from $344 million in Q2 2011 to $661 million in Q2 2012.
Digital advertising revenues had an increase of 14 percent in the first six months of 2012, growing from $14.9 billion in 2011 to $17 billion in Q2 2012. Although it’s interesting to note that 73 percent of digital advertising dollars are spent by 10 ad-selling companies, and the remained is spread across approximately 75 other companies.
In spite of the rapid growth of digital and mobile advertising, it’s search that’s on top, accounting for 47 percent total digital revenues, totaling $4.1 billion.
Here’s a breakdown of the data:
Historically search has retained the largest share of advertising revenues, but as the chart below shows, even though mobile’s the youngest format, it had the largest percent revenue between 2010 and 2012.
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U.S. Mobile Content Use Keeps Treading Up
Source: https://intelligence.businessinsider.com/welcome
The rise of smartphones continues to push U.S. mobile content use higher. According to the latest comScore numbers, mobile apps and web browsers were the biggest winners, notching 12 and 10 percentage point gains in the past year, respectively.
As we discuss in our mobile usage report, much of this activity is additive. For example, while some mobile Internet use certainly cannibalizes desktop browsing, much of it would not have happened without smartphones.
However, smartphone penetration in the U.S. will begin to slow as we cross the 50 percent threshold, which means that growth in mobile content use will temper as well.
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Digital Consigliere
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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