Study of Mobile Marketing Ecosystem and recommendations for key players. Project done by students of IIM Bangalore.

1. GROUP 5
Harkawal Singh 1212019 Iqbal Khan 1212021
Himanshu Nahare 1212020 Sandip Jalan 1212047
Arvind Ranjan 1111333
Mobile Marketing Platforms […] Mobile Ad networks

2. What is Mobile advertising?
Source : Crispmedia.com

3. Ecosystem and Value Network
Buy Side
Infrastructure
and Delivery
Sell Side
PUBLISHER
SUPPLY SIDE
PLATFORM (SSP)
Ad EXCHANGE
Ad NETWORK
Advertisers
DEMAND SIDE
PLATFORM (DSP)
MEDIA AGENCY
Source: http://www.siemer.com/

4. Business Model of Ad Network and Ad-platform
publisher
advertisers
What’s in for Publisher
 Monetize its Applications developed on Android, iOS,
Microsoft OS
 Get Advanced analytics and transparency of the visits
 Cross selling opportunity to promote its own apps or
websites
What’s in for advertisers
 Mobile is increasing as a platform for communication, and has
acceptance equivalent to that of TV or online
 More efficient campaign runs on mobile, and enable targeted campaign
 Measurable matrix and analytics to gain insights and transparency of
the channel
What’s in for Ad-Network
 By managing inventory of demand and supply, targeted
advertisement and gain revenue through brokerage
 Promote rich media formats including native content to
become ad-network of choice both for publisher and
advertiser

5. Mobile Ad Network Types
Vertical Network Blind Network Targeted Network
 Full transparency for the
advertiser about where their ads
will run
 Offer good pricing to direct
marketers in exchange for those
marketers relinquishing control
over where their ads will run
 Sometimes called “next generation”
or “2.0” ad networks, these focus on
specific targeting technologies such
as behavioral or contextual
 Typically promote high quality
traffic at market prices and are
heavily used by brand marketers
 Usually runs campaigns as RON
or Run-Of-Network
 Specialize in using consumer
clickstream data to enhance the
value of the inventory they purchase
 The economic model is generally
revenue share
 Offer ROS (Run-Of-Site)
advertising across specific
Channels
 Achieve their low pricing
through large bulk buys of
typically remnant inventory
combined with conversion
optimization and ad targeting
technology
 Specialized targeted networks
include social graph technologies
which attempt to enhance the value
of inventory using connections in
social networks
Source: http://en.wikipedia.org/wiki/Advertising_network
Differentiating a Ad- Network
 Audience data is considered more valuable than inventory quality in online media buying decision making
 Targeting methods that leverage audience data have grown in importance
 Advertisers and agencies need greater audience insights, analytics and optimization services

6. Research Study by Inmobi on global Mobile Media Consumption

7. Comparison of inMobi, Google ad-mob & Facebook
Total number of active users 0.7 Billion 1 Billion 1.3 Billion
Total Company Revenue $ 0.5 Billion $ 55 Billion $ 7.9 Billion
Ad-Network Yes Yes Yes
Ad-Platform Yes Ad-Mob No
Own Mobile OS No Android No
World Wide Market Share <1% 50% 20%
Ad Pricing CPM, CPC, CPA CPM, CPC, CPA
CPC, CPM, Cost- per-
action, Cost-per-like
Advantages
Small player but
expanding its network
very fast by providing SDK
for APP developers and
end to end campaign
management for its
customers
High REACH through
various APPs (provides
SDK).
Has complete details of
the end consumers who
have downloaded APPs
using Play Store.
High on consumer
engagement and
repeat visits.
Best for brand
awareness
(engagement &
loyalty)
Source: http://www.inmobi.com/company/news/inmobi-claims-759m-monthly-active-users-second-only-to-facebook/
http://www.statisticbrain.com/facebook-statistics/

8. Trends Hype Cycle - Gartner
Source: http://www.gartner.com/newsroom/id/2579615

9. Trends: Consolidation of the solution towards broad offering

10. Our Learning from the study of Ad Networks and industry
• Industry overview
– Only a handful of ad-tech businesses have truly gained scale or differentiation in the marketplace
– Agencies in past used to manage multiple vendors but now want to consolidate the vendor relationship
– Consolidation on both the demand and supply side is like to lead to platform that enable access to both
premium publishers and ad-network; Enable multiple platforms & channels (Video, social, mobile), and
integrate both behavioral and contextual targeting
– Dependence on future development of hardware and software platforms of mobile phones/devices
• Emergence of formats and standards
– Native advertising is gaining further traction as a preferred ad-format to engage online with customers
especially Inmobi, where intrusive banners have proven difficult to monetize
– Mobile/Tablet App Download Marketing is becoming more sophisticated with the rise of Universal Buy side
SDK solutions
– Latest move by Google to standardize the android experience (making it OEM independent) – Android Silver
• Innovation drivers
– The publishers hold the key to success for the ad-network and ad-platform by providing engaging real estate.
Inmobi is engaging the app developer by becoming the source of best practices, industry developments and
advising on how to monetize apps best. Inmobi has even a published a book for app developers on this topic.
InMobi's dimensions of business innovation
Offerings Solutions, episodic learning platform, Expertise on demand Processes Transparency, analytics, a lot of self help
Platform Ad Platform Organization Young startup culture
Solutions
Studio, analytics
Supply Chain
Native ads : new and better way to fulfill, Video
platform
Customers Transparency and partnership Presence Global presence, 750 million users
Customer Experience Experience success, insightful, close interaction for campaigns Networking App developer network, industry summits et al
Value Capture
Effective campaigns to advertisers and monetization to
publishers
Brand
The largest independent Ad-network

11. Strategy options for key players
 Create / Acquire Own Mobile ad platform
 Evaluate own mobile OS
 Engage the users more, enrich the quality of
interaction and increase usage
– Benefits to heavy users
– Extend service offerings like video
platform
 Evaluate a tie-up with one of the leading OS
providers to create an ecosystem
 Continue to collaborate more on both supply and
demand sides
 Focus on delivery format and media richness
 Create simpler sales interfaces and more sales
channels – self service mode
 Continue to find innovative ways to deliver
customer value - app developers
High Low
High
Produce some complements
yourself, but have third parties
produce most of them
Make all components yourself
Low
Have third parties make all
components
Produce most components yourself
but have third parties produce most
of them
If your need for a wide assortment of complements is
Ifyourcapacitytoinvestis?
Source : The art of Managing complementors– With friends like these
By David B. Yoffie and Mary Kwak

13. Impact of Mobile advertisement
According to an indendent survey on global Mobile Media Consumption in Q4 2011
• 42% of respondents indicated that mobile advertising has introduced them to something new
• 66 % of mobile users are just as comfortable with mobile advertising as they are with TV or online
advertising
• 23 % of respondents indicating that mobile ads saves time and money.
• 14 % of respondents indicating that mobile ads have influenced them to buy via mobile.
• Mobile web users spend 27 % of their media time on mobile, 22 % on TV and 32 % online
Mobile Marketing Contributes $139 Billion to U.S. Economy in 2012; Set to Rise to $400 Billion by 2015
Source: http://www.eyefortravel.com/mobile-and-technology/recognising-impact-mobile-ads-purchase-behaviour-travel-marketer
http://www.mmaglobal.com/news/mobile-marketing-contributes-139-billion-us-economy-2012-set-rise-400-billion-2015