U.S. Mobile Advertising and Search Market - vpgcorp.com Mobile Advertising... · VPG Market...
Transcript of U.S. Mobile Advertising and Search Market - vpgcorp.com Mobile Advertising... · VPG Market...
MEDICAL DEVICES PHARMACEUTICALS CHEMICALS FOOD & BEVERAGE ELECTRONICS
U.S. Mobile Advertising and Search Market
VPG Publications, Consulting, Clients www.VPGcorp.com
VPG Market Research Reports www.VPGMarketResearch.com
VPG Partner Reports www.Research-Store.com/VPG
VENTURE PLANNING GROUP 545 Eighth Avenue, Suite 401 New York, NY 10018 Phone + 1 212 564 2838 Fax + 1 212 564 8133 [email protected]
www.frost.com
U.S. Mobile Advertising and Search Market
NA11-65
Table of Contents
C h a p t e r 1
Introduction
Mobile Advertising and Search 1-1
Introduction and Overview 1-1
Market Segmentation 1-1
Key Findings and Conclusions 1-2
C h a p t e r 2
Market Trends and Strategic Evaluation and Analysis
Key Market Trends 2-1
Continued Adoption of Rich Media Ads 2-1
Ongoing Collaboration between Ad Networks; Mobile Demand Side Platforms and
Real-time Bidding Platforms 2-6
Ad Networks and Solution Provider Partnerships and Integrations - Proactive Collaboration 2-7
Private Mobile Ad Exchanges 2-8
Increasing Inventory in Mobile 2-9
Industry Standardization Efforts—ORMMA; VAST and VPAID; Others 2-12
Integrated Digital Advertising—Online; Mobile and Connected TV 2-14
Greater Integration with Mobile Commerce Functionality 2-15
Mobile Advertising and Social Communication 2-15
#NA11-65 © 2012 Frost & Sullivan www.frost.com iii
C h a p t e r 3
Total U.S. Mobile Advertising and Search Market
Key Market Definitions 3-1
Market Definitions and Overview 3-1
On-deck Mobile Advertising 3-1
Off-deck Mobile Advertising 3-1
Ad Network and Ad Network Providers 3-2
Fill Rate 3-2
Targeting 3-3
Demand Side Platforms 3-3
Ad Exchanges 3-3
Market Dynamics 3-4
Industry Challenges 3-4
Driving the growth of the Industry by educating the buy side and facilitating easier participation
in mobile advertising 3-4
Maintaining a price-premium in mobile advertising 3-5
Specialized vendors focused on a small set of mobile advertising opportunities will face increased
competitive pressures 3-5
Solving the industry fragmentation and measuring performance of mobile advertising could become
a challenge 3-5
It is important to achieve high degree of automation for rich media advertising in order to generate
enough scale 3-6
U.S. mobile operators need to play a greater role in mobile advertising 3-6
Ad aggregation and ad mediation systems in mobile need to deliver transparent pricing and reporting 3-6
Understanding the role of different types of mobile advertising solution providers can be challenging
for advertisers and publishers 3-7
Market Drivers 3-7
Next-generation connected wireless devices such as Smartphones and tablets are the major
growth drivers 3-8
Rich media ads in mobile continue to drive growth 3-8
The App Economy is a major growth driver 3-9
Increased uptake of mobile video ads expected to drive growth 3-9
Industry Standards—ORMMA, VAST, VPAID, and others—will help address inter-operability
issues in rich media and mobile video advertising and will likely be important growth drivers 3-10
#NA11-65 © 2012 Frost & Sullivan www.frost.com iv
Technological Advances such as HTML 5.0 could reduce the Industry fragmentation and help drive
adoption of new rich media mobile advertising experiences 3-10
Verifiable Results from mobile advertising help to support the business case for mobile advertising 3-11
Industry collaboration, real-time bidding exchanges and mobile demand side platforms will help in
inventory monetization 3-11
Market Forecast 3-12
Market Forecast for the U.S. Mobile Advertising and Search Market 3-12
Competitive Analysis 3-20
Competitive Analysis of the U.S. Mobile Advertising and Search Market 3-20
Solution Providers 3-21
A Note on Google 3-22
Mobile Operators 3-23
Market Share Analysis 3-25
Market Share Analysis of the U.S. Mobile Advertising and Search Market 3-25
C h a p t e r 4
Messaging-based Mobile Advertising Segment
Introduction 4-1
Introduction to Messaging-based Mobile Advertising Segment 4-1
Key Mobile Messaging Technologies 4-1
Common Short Codes 4-1
Revenue Shares for Premium and Standard Rate Mobile Messaging Campaigns 4-3
Premium Rate Campaigns 4-3
Standard Rate Campaigns 4-4
Market Revenue Forecast 4-5
Revenue Forecast for Messaging-based Mobile Advertising 4-5
#NA11-65 © 2012 Frost & Sullivan www.frost.com v
C h a p t e r 5
Mobile Internet-based Display Advertising Segment
Introduction 5-1
Mobile Internet-based Display Advertising Segment 5-1
Market Revenue Forecast 5-2
Revenue Forecast for Mobile Internet-based Display Advertising 5-2
C h a p t e r 6
Mobile Video Advertising Segment
Introduction 6-1
Introduction to Mobile Video Advertising segment 6-1
Market Revenue Forecast 6-2
Revenue Forecast for Mobile Video Advertising 6-2
C h a p t e r 7
In-application Mobile Advertising Segment
Introduction 7-1
Introduction to In-application Mobile Advertising 7-1
Market Revenue Forecast 7-2
Revenue Forecast for In-application Mobile Advertising 7-2
#NA11-65 © 2012 Frost & Sullivan www.frost.com vi
C h a p t e r 8
Mobile Search and Other Performance-based Mobile Advertising Segment
Introduction 8-1
Introduction to Mobile Search and Other Performance-based Mobile Advertising 8-1
Market Revenue Forecast 8-2
Revenue Forecast for Mobile Search and Other Performance-based Mobile Advertising 8-2
C h a p t e r 9
Key Industry Participants
Mobile Advertising Solution Providers 9-1
4INFO Profile 9-1
Company 9-1
Key Mobile Advertising Offerings and Value Proposition 9-1
AdHaven Mobile Audience Platform 9-1
Key Customers and Partnerships 9-3
AdMarvel Profile 9-4
Company 9-4
Key Offerings and Value Proposition 9-4
Key Customers and Partnerships 9-6
[a.mo.bee] Profile 9-7
Company 9-7
Key Mobile Advertising Offerings and Value Proposition 9-7
Key Customers and Partnerships 9-8
BrightRoll Profile 9-9
Company 9-9
Key Mobile Advertising Offerings and Value Proposition 9-9
Key Customers and Partnerships 9-12
Crisp Media Profile 9-12
Company 9-12
Key Mobile Advertising Offerings and Value Proposition 9-12
Key Customers and Partnerships 9-14
#NA11-65 © 2012 Frost & Sullivan www.frost.com vii
Greystripe Profile 9-14
Company 9-14
Key Mobile Advertising Offerings and Value Proposition 9-14
Key Customers and Partnerships 9-16
InMobi Profile 9-18
Company 9-18
Key Mobile Advertising Offerings and Value Proposition 9-18
Key Customers and Partnerships 9-20
Jumptap Profile 9-21
Company 9-21
Key Mobile Advertising Offerings and Value Proposition 9-21
Key Customers and Partnerships 9-23
Medialets Profile 9-24
Company 9-24
Key Offerings and Value Proposition 9-24
Key Customers and Partnerships 9-26
Mojiva Profile 9-28
Company 9-28
Key Offerings and Value Proposition 9-28
Key Customers and Partnerships 9-30
Nexage Profile 9-31
Company 9-31
Key Offerings and Value Proposition 9-31
Key Customers and Partnerships 9-33
RadiumOne Profile 9-33
Company 9-33
Key Offerings and Value Proposition 9-33
Key Customers and Partnerships 9-34
Rhythm NewMedia 9-34
Company 9-34
Key Mobile Advertising Offerings and Value Proposition 9-35
Key Customers and Partnerships 9-36
Tremor Video Profile 9-38
Company 9-38
Key Mobile Advertising Offerings and Value Proposition 9-38
Key Customers and Partnerships 9-39
#NA11-65 © 2012 Frost & Sullivan www.frost.com viii
Velti Profile 9-39
Company 9-39
Key Offerings and Value Proposition 9-40
Key Customers and Partnerships 9-42
YuMe Profile 9-42
Company 9-42
Key Mobile Advertising Offerings and Value Proposition 9-43
YuMe Products: 9-43
#NA11-65 © 2012 Frost & Sullivan www.frost.com ix
List of Figures
C h a p t e r 2
Market Trends and Strategic Evaluation and Analysis
2-1 Mobile Advertising and Search Market:
Contribution by Volume of Mobile Rich Media and Non Rich Media Branding Ads to Total Mobile
Branding Ads Served (U.S.), 2009-2017 2-4
2-2 Mobile Advertising and Search Market:
Monthly Users and Service Penetration of Mobile Internet (U.S.), 2009-2017 2-9
2-3 Mobile Advertising and Search Market:
Installed Base Forecast for Connected Tablets (U.S.), 2010-2017 2-10
C h a p t e r 3
Total U.S. Mobile Advertising and Search Market
3-1 Mobile Advertising and Search Market:
Impact of Top Eight Industry Challenges (U.S.), 2011-2017 3-4
3-2 Mobile Advertising and Search Market:
Market Drivers Ranked in Order of Impact (U.S.), 2011 -2017 3-7
3-3 Mobile Advertising and Search Market:
Revenue Forecast for Mobile Advertising (U.S.), 2009 -2017 3-14
3-4 Mobile Advertising and Search Market:
On-deck and Off-deck Mobile Advertising Revenue Forecast (U.S.), 2009-2017 3-15
3-5 Mobile Advertising and Search Market:
Revenues from Different Channels of Mobile Advertising (U.S.), 2009-2017 3-16
#NA11-65 © 2012 Frost & Sullivan www.frost.com x
3-6 Mobile Advertising and Search Market:
Percentage Revenue Contribution from Different Channels of Mobile Advertising
(U.S.), 2009-2017 3-17
3-7 Mobile Advertisement and Search Market:
Competitive Structure (U.S.), 2010 3-20
3-8 Mobile Advertisement and Search Market:
Estimated Company Market Share by On-deck Advertising Revenues (U.S.), 2010 3-25
C h a p t e r 4
Messaging-based Mobile Advertising Segment
4-1 Mobile Advertising and Search Market:
Revenue Forecast for Messaging-based Advertising and Marketing Campaigns
(U.S.), 2009-2017 4-6
4-2 Mobile Advertising and Search Market:
Application Provider Opportunity from Monthly Access Fee Collected to Maintain
Connections (U.S.), 2009-2017 4-7
C h a p t e r 5
Mobile Internet-based Display Advertising Segment
5-1 Mobile Advertising and Search Market:
Revenue Forecast for Mobile Internet-based Display Advertising (U.S.), 2009-2017 5-2
5-2 Mobile Advertising and Search Market:
Revenue Forecast for Off-deck and On-deck Mobile Internet-based Display Advertising
(U.S.), 2009-2017 5-3
#NA11-65 © 2012 Frost & Sullivan www.frost.com xi
C h a p t e r 6
Mobile Video Advertising Segment
6-1 Mobile Advertising and Search Market:
Revenue Forecast for Mobile Video Advertising (U.S.), 2009-2017 6-3
6-2 Mobile Advertising and Search Market:
Revenue Forecast for Off-deck and On-deck Mobile Video Advertising (U.S.), 2009-2017 6-4
C h a p t e r 7
In-application Mobile Advertising Segment
7-1 Mobile Advertising and Search Market:
Revenue Forecast for In-application Mobile Advertising (U.S.), 2009-2017 7-2
7-2 Mobile Advertising and Search Market:
Revenue Forecast for Off-deck and On-deck In-application Mobile Advertising
(U.S.), 2009-2017 7-3
C h a p t e r 8
Mobile Search and Other Performance-based Mobile Advertising Segment
8-1 Mobile Advertising and Search Market:
Revenue Forecast for Performance-based Mobile Advertising (U.S.), 2009-2017 8-3
8-2 Mobile Advertising and Search Market:
Revenue Forecast for Off-deck and On-deck Performance-based Mobile Advertising
(U.S.), 2009-2017 8-4
#NA11-65 © 2012 Frost & Sullivan www.frost.com xii
List of Charts
C h a p t e r 1
Introduction
1.1 Mobile Advertising and Search Market:
Market Segmentation (U.S.), 2010 1-2
1.2 Mobile Advertising and Search Market:
Revenue Forecast for Mobile Advertising (U.S.), 2009-2017 1-4
1.3 Mobile Advertising and Search Market:
Contribution from Different Channels of Mobile Advertising (U.S.), 2009-2017 1-4
C h a p t e r 2
Market Trends and Strategic Evaluation and Analysis
2.1 Mobile Advertising and Search Market:
Evolution and Roadmap for Mobile Advertising (U.S.), 2005-2017 2-3
2.2 Mobile Advertising and Search Market:
Contribution by Volume of Mobile Rich Media and Non Rich Media Branding Ads to
Total Mobile Branding Ads Served (U.S.), 2009-2017 2-4
2.3 Mobile Advertising and Search Market:
High-level Contribution of Popular Rich Media Technologies to Total Rich Media Ads
Served (U.S.), 2009-2017 2-5
2.4 Mobile Advertising and Search Market:
Revenue Contribution of Mobile-enabled and Mobile-specific DSPs and RTBs to Mobile
Internet and Mobile Applications Advertising Revenues (U.S.), 2009-2017 2-8
#NA11-65 © 2012 Frost & Sullivan www.frost.com xiii
2.5 Mobile Advertising and Search Market:
Monthly Users and Service Penetration of Mobile Internet (U.S.), 2009-2017 2-10
2.6 Mobile Advertising and Search Market:
Installed Base Forecast for Connected Tablets (U.S.), 2009-2017 2-11
C h a p t e r 3
Total U.S. Mobile Advertising and Search Market
3.1 Mobile Advertising and Search Market:
Market Engineering Measurements (U.S.), 2010 3-13
3.2 Mobile Advertising and Search Market:
Revenue Forecast for Mobile Advertising (U.S.), 2009-2017 3-14
3.3 Mobile Advertising and Search Market:
On-deck and Off-deck Mobile Advertising Revenue Forecast (U.S.), 2009-2017 3-15
3.4 Mobile Advertising and Search Market:
Variation in Contribution of On-deck and Off-deck Mobile Advertising (U.S.), 2009-2017 3-16
3.5 Mobile Advertising and Search Market:
Revenues from Different Channels of Mobile Advertising (U.S.), 2009-2017 3-17
3.6 Mobile Advertising and Search Market:
Percentage Revenue Contribution from Different Channels of Mobile Advertising
(U.S.), 2009-2017 3-18
3.7 Mobile Advertising and Search Market:
Low Growth and High Growth Revenue Estimation (U.S.), 2009-2017 3-18
3.8 Mobile Advertising and Search Market:
Estimated Company Market Share by On-deck Advertising Revenues (U.S.), 2010 3-25
#NA11-65 © 2012 Frost & Sullivan www.frost.com xiv
C h a p t e r 4
Messaging-based Mobile Advertising Segment
4.1 Mobile Advertising and Search Market:
Short Code SMS Value Chain (U.S.), 2011 4-2
4.2 Mobile Advertising and Search Market:
Possible Revenue Share for a Premium Rate Mobile Marketing Campaign (U.S.), 2011 4-4
4.3 Mobile Advertising and Search Market:
Revenue Flow for a Standard Rate Mobile Marketing Campaign (U.S.), 2011 4-5
4.4 Mobile Advertising and Search Market:
Revenue Forecast for Messaging-based Mobile Marketing and Advertising (U.S.), 2009-2017 4-6
4.5 Mobile Advertising and Search Market:
Application Provider Opportunity from Monthly Access Fee Collected to Maintain
Connections (U.S.), 2009-2017 4-8
C h a p t e r 5
Mobile Internet-based Display Advertising Segment
5.1 Mobile Advertising and Search Market:
Revenue Forecast for Mobile Internet-based Display Advertising (U.S.), 2009-2017 5-3
5.2 Mobile Advertising and Search Market:
Revenue Forecast for Off-deck and On-deck Mobile Internet-based Display Advertising
(U.S.), 2009-2017 5-4
5.3 Mobile Advertising and Search Market:
Percent Contribution of Off-deck and On-deck Mobile Internet-based Display Advertising
Revenues (U.S.), 2009-2017 5-4
#NA11-65 © 2012 Frost & Sullivan www.frost.com xv
C h a p t e r 6
Mobile Video Advertising Segment
6.1 Mobile Advertising and Search Market:
Mobile Video Advertising Segmentation (U.S.), 2011 6-2
6.2 Mobile Advertising and Search Market:
Revenue Forecast for Mobile Video Advertising (U.S.), 2009-2017 6-3
6.3 Mobile Advertising and Search Market:
Revenue Forecast for Off-deck and On-deck Mobile Video Advertising (U.S.), 2009-2017 6-4
6.4 Mobile Advertising and Search Market:
Percent Contribution of Off-deck and On-deck Mobile Video Advertising Revenues
(U.S.), 2009-2017 6-5
C h a p t e r 7
In-application Mobile Advertising Segment
7.1 Mobile Advertising and Search Market:
Revenue Forecast for In-application Mobile Advertising (U.S.), 2009-2017 7-3
7.2 Mobile Advertising and Search Market:
Revenue Forecast for Off-deck and On-deck In-application Mobile Advertising
(U.S.), 2009-2017 7-4
7.3 Mobile Advertising and Search Market:
Percent Contribution of Off-deck and On-deck In-application Mobile Advertising
Revenues (U.S.), 2009-2017 7-4
#NA11-65 © 2012 Frost & Sullivan www.frost.com xvi
C h a p t e r 8
Mobile Search and Other Performance-based Mobile Advertising Segment
8.1 Mobile Advertising and Search Market:
Revenue Forecast for Performance-based Mobile Advertising (U.S.), 2009-2017 8-3
8.2 Mobile Advertising and Search Market:
Revenue Forecast for Off-deck and On-deck Performance-based Mobile Advertising
(U.S.), 2009-2017 8-4
8.3 Mobile Advertising and Search Market:
Percent Contribution of Off-deck and On-deck Performance-based Mobile Advertising
(U.S.), 2009-2017 8-5
#NA11-65 © 2012 Frost & Sullivan www.frost.com xvii
1Introduction
M o b i l e A d v e r t i s i n g a n d S e a r c h
Introduction and Overview
This research service builds on the information presented in the study conducted in 2010
entitled "U.S. Mobile Advertising and Search Market." Although it amends and updates the
information and data points, the study itself presents a complete picture of the market and
highlights the market changes. New emerging solutions as well as business models within the
mobile advertising ecosystem are also discussed. Throughout this study, the words "adver-
tising" and "ad"; "applications" and "app"; and "mobile Internet," "mobile web," and
"WAP" are used interchangeably.
Mobile advertising is the actual process of describing or presenting a product, a service, an
idea, or an organization through mobile communication channels to induce mobile
subscribers to buy, interact, or support the item being advertised.
Market Segmentation
Frost & Sullivan presents an analysis of the following mobile advertising channels across the
on-deck and off-deck mobile ecosystems in this research service:
■ Mobile messaging-based advertising
■ Mobile Internet-based advertising
■ Mobile video advertising
■ In-application mobile advertising
■ Mobile search and performance based advertising
#NA11-65 © 2012 Frost & Sullivan www.frost.com 1-1
Chart 1.1 shows the market segmentation for the U.S. mobile advertising and search market
in 2010.
C h a r t 1 . 1
Mobile Advertising and Search Market: Market Segmentation (U.S.), 2010
Source: Frost & Sullivan analysis
Advertising in these mobile channels could be served by ad networks, ad exchanges, and ad
mediators, or by publishers themselves (with help of white-label mobile advertising plat-
forms). All these possibilities have been considered in the market forecasts.
Key Findings and Conclusions
Next-generation wireless devices such as Smartphones and tablets continue to drive the U.S.
mobile advertising and search markets. Improved targeting capabilities, advanced ad
rendering capabilities, large amounts of inventory, and strong developer interest in leveraging
mobile advertising for monetization of their applications are some of the key reasons for the
continued adoption of mobile advertising on these new device platforms.
Mobile web and mobile applications are the prime inventories for mobile advertising, with a
large majority of ad spend generated by these two advertising channels. Both branding and
performance-based advertising continue to perform well within the mobile web and mobile
applications channels. However, branding campaigns executed within the application channel
continue to outnumber the branding campaigns served within the mobile Internet in the U.S.
mobile advertising and search market.
On-deck Mobile Advertising
— Mobile Internet- based Mobile Advertising— On-deck Mobile Video Advertising— On-deck Performance-based Advertising— In-application Mobile Advertising
Off-deck Mobile Advertising
— M essaging-based Advertising— M obile Internet- based M obile Advertising— Off-deck M obile Video Advertising— Off-deck Performance-based Advertising— In-application Mobile Advertising
Mobile Advertising Market Opportunity
#NA11-65 © 2012 Frost & Sullivan www.frost.com 1-2
Mobile video ads have emerged as one of the fastest growing industry segments. Mobile
video ads can be served within both video and non-video data environments in mobile. As
such, a large majority of video ads in mobile are served within non-video data channels (for
example, a news application). Pricing-per-impression remains the main pricing mechanism
for mobile video ads.
Leading industry participants are collaborating to develop and promote a standardized
framework for rich media mobile advertising. Open Rich Media Mobile Advertising
(ORMMA), Mobile Rich Media Ad Interface Definitions (MRAID), Digital Video Ad Serving
Template (VAST), and Digital Video Player-Ad Interface Definition (VPAID) are the leading
ad standard specification and implementations for rich media and mobile video advertising.
Frost & Sullivan believes that a well-designed and popular rich media ad specification could
be one of the most important drivers of mobile advertising in the United States in the coming
years.
All leading mobile operators have established broad mobile advertising programs for on-deck
properties. Mobile operators aspire to leverage the subscriber information and insights into
data usage patterns to enable targeted mobile advertising - both within their own content
offerings, as well as within the data channels and inventory of their strategic partners.
In 2017, mobile advertising revenues in the United States are expected to reach
$x,xxx.x million. This is more than xxx percent growth over 2010 figures of around
$xxxx.xmillion. It can be argued that rapid penetration of connected tablets and other
connected display devices could actually increase the market size much beyond the Frost &
Sullivan forecasts. However, falling mobile advertising rates, excess inventory, and elimina-
tion of the distinction between online and mobile advertising spending and ad serving
mechanisms could mean that the market revenues may not grow in line with the adoption of
Smartphones and tablets. In other words, a trend of revenue divergence between inventory
and mobile advertising spending will be increasingly seen in the U.S. mobile advertising and
search markets.
From a channel perspective, performance-based advertising, mobile Internet branding, and
in-application mobile advertising are expected to be the three largest contributors to mobile
advertising. In-application advertising revenues include both display and performance mobile
advertising, which increases the bucket of performance mobile advertising in the
United States.
Chart 1.2 shows revenue forecast for mobile advertising in the U.S. mobile advertising and
search market from 2009 to 2017.
#NA11-65 © 2012 Frost & Sullivan www.frost.com 1-3
C h a r t 1 . 2
Mobile Advertising and Search Market: Revenue Forecast for Mobile Advertising (U.S.),
2009-2017
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis
Chart 1.3 shows the contribution from different channels of mobile advertising in the U.S.
mobile advertising and search market from 2009 to 2017.
C h a r t 1 . 3
Mobile Advertising and Search Market: Contribution from Different Channels of Mobile
Advertising (U.S.), 2009-2017
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis
0.0
xxx.x
x,xxx.x
x,xxx.x
x,xxx.x
x,xxx.x
x,xxx.x
2009 2010 2011 2012 2013 2014 2015 2016 2017
Year
0.0
x.x
xx.x
xx.x
xx.x
xx.x
xx.x
xx.x
xx.x
xx.x
Rev
enue
Gro
wth
Rat
e (%
)
Revenue ($ Million) Revenue Growth Rate (%)
Rev
enue
($
Mill
ion)
0.0
xx.x
xx.x
xx.x
xx.x
xxx.x
Con
trib
utio
n (%
)
2009 2010 2011 2012 2013 2014 2015 2016 2017
Year
Messaging (%) Mobile Internet (%)
Mobile Video (%) Mobile Search and Performance (%)
In-application (%)
#NA11-65 © 2012 Frost & Sullivan www.frost.com 1-4