Mobile Advertising: Prospects And Risks

Among the major topics BMI discusses on a regular basis is the ability of telecoms operators to monetise the growing demand for network usage. The concept of a 'dumb pipe' is never far away from the strategic outlooks of some of the largest players in the telecoms markets. Mobile operators have unparalleled access to the habits of their users, data that will be useful to a number of different industries not least advertisers. BMI looks at the success of different companies' mobile advertising strategies.

The Market

Mobile advertising has garnered plenty of attention in 2013, not least because Facebook appears to have finally found a winning formula. The company's failure to cater to the shift to mobile usage was behind much of its stock price decline in 2012. However, the company announced in its Q213 results that 41% of its advertising income came from mobile, suggesting its new strategy is paying off. Google also has reported an improving performance for its cost-per-click (CPC) ratio - although it dropped again in Q213 - as its mobile advertising strategy starts to play out.

Operators Keen To Get Mobile Advertising Share
Global Mobile Advertising Spend (US$mn)

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Sector: Telecommunications