By examining the major advertising networks and the differences in their various market segments, as well as the impact of location-based technologies on new advertising efforts and the innovative services that have arisen to take advantage of location-based technologies, I wanted this presentation to highlight what advertisers and mobile users can expect to see in the next five years in a constantly changing industry. One important aspect of the future of the mobile industry's development that is not stressed in these slides is mobile apps. Apps are the way to extend the usability of mobile internet service, and is a major player in the growth of the mobile internet. Also, I believe it will be the leader in efforts to monetize the mobile internet effort in the future, but due to the scope of my research this time, I did not cover it. I would definitely like to look into this sector in the future.

1. Mathew Honan: 37.769958 °N, 122.467233 °W. Photo: Jason Madara
Mobile: The Future of Internet… and Our Lives
Ruby Chao Zhang
4/28/2010 Mobile Advertising & Location-based Mobile Services

2. Overview
 Mobile advertising
 Location-based mobile services

3. Mobile Advertising
 The mobile phone platform
 Personal
 Interactive
 Constantly in-use

4. Mobile Advertising
 Fractured market, no ad network is dominant
 Major players serve different market segments,
and different regions
Mobile Ad Networks Market Share in 2009
Google +
Admob
24%
AOL The others
2% 26%
Quattro
Wireless JumpTap Millenial
(acquired by 4% Media
Apple in Jan, 18%
2010)
7% Microsoft Yahoo
8% 11%
(Data by market research firm IDC, 2009)

5. Mobile Advertising
 According to a study by Gfk NOP research in
2007, more than 3 in 10 mobile users in the
U.S. have seen or heard advertising on their
mobile phones
 But I bet…

6. Mobile Advertising
 Four main types of mobile advertising
SMS/MMS Mobile Ads Search Ads
App/Game/Video
Display Ads
Web Display Ads

7. Mobile Advertising
 Revenue shifts from SMS ads to search ads

8. Mobile Advertising
 Overall rapid growing prospect in the next 3 years
(Data by Kelsey Group, Chart made by TechCrunch, Sep 2009)

9. Mobile Advertising
 Three types of mobile advertising networks:
depend on how they reach their audience
 BlindAdvertising Networks
 Premium Blind Advertising Networks
 Premium Advertising Networks

10. Mobile Advertising
 Blind advertising networks
 High volume advertising to an extensive base of
mostly independent mobile publishers
 Usually do not allow advertisers to choose
specific websites, but could choose by country
and content channels (news, sports etc)
 CPC is the norm, CPM is used to create brand
awareness
 Wealth of self-service tools exists, mobile ad
publishers can expect to earn about 55-65% of
the advertiser’s rate

11. Mobile Advertising
 Premium blind advertising networks
 Advertising can be specifically placed
on well-known sites, some networks
have exclusive relationships with
websites
 CPM model rules, some higher-end, in-
demand advertising inventory can cost
$20 CPM
 Mix of self-service and direct sales
and support and lots of targeting
options

12. Mobile Advertising
 Premium advertising networks
 Narrow in focus, ad sales are focused
on extremely high-traffic publishers
 In-house ad sales, operate advertising
for their own sites and networks
 Generally CPM-based, with rates
ranging from $5 to $75 CPM .
 Publishers on these ad networks can
reap up 50 to 70% of advertising
revenue.

13. Mobile Advertising
 iAds: Moving the needle in the
mobile ad space?
 Built for HTML5
 iAds will come pre-installed in
the new iPhone OS 4.0 coming
out this summer
 In-app ads that can include video,
games, store finders and
customizers, more fun and
interactive "We think most of this [existing] mobile
advertising really sucks!"
 Android OS catching up and exceeding
iPhone web traffic in March, 2010 (Admob’s
monthly mobile metrics report )

14. Location-Based Mobile Service
 Location : most important contextual clue provided
by mobile device
 Location:“where” information filter
 The compelling combination of information and
financial incentive

15. Location-Based Mobile Service
 Industry growing fast with the development of
GPS and other positioning technologies on mobile
device
 Juniper Research estimates that location-based
services, as an industry, will earn up to $12.7 billion
by 2014

16. Location-Based Mobile Service
 North Face’s Location-Based Mobile Campaign
 2010 spring, New York, Boston, San Francisco, and
Seattle
 Using SMS/Geo-fencing technology to target opt-in
customers

17. Location-Based Mobile Service
 Zip Car On The Go
 Put consumers more directly in touch with businesses
and services
 May disrupt already-existing business services

18. Location-Based Mobile Service
 Geodelic
 Combining a person's location, inferred intent and
personal affinities to deliver relevant information about
the real world surrounding them at any given moment

19. Location-Based Mobile Service
 Foursquare
 Adding a social layer & gaming elements to the
location, turning the city to a playground

20. What Is Your Next Big Idea?

21. References
Butcher, D. (February 24, 2010). North Face debuts first LBS campaign for outdoor apparel.
Retrieved from http://www.mobilemarketer.com/cms/news/advertising/5482.html
Byrne, C. (January 10, 2010) Will 2010 be mobile advertising’s big year? Retrieved from
http://mobile.venturebeat.com/2010/01/10/will-2010-be-mobile-advertisings-big-year/
Gibbs, C. (January 5, 2010) 2010: The Year of M&A in Mobile Advertising. Retrieved from
http://gigaom.com/2010/01/05/2010-the-year-of-ma-in-mobile-advertising/
IAB. (October 2009) October 2009: Change Is in the Air for Mobile Advertising. Retrieved from
http://www.iab.net/insights_research/947883/1675/974217
Justin. (April 26, 2010). Survey: Consumers Prefer Location-Based Ads Over SMS And Mobile
Web Ads. Retrieved from http://www.mobilemarketingwatch.com/survey-consumers-prefer-location-based-ads-over-sms-and-
mobile-web-ads-6198/
Klaasen, A. (September 14, 2009). Places, Please: How Location Changes Digital
Marketing. Retrieved from http://adage.com/digital/article?article_id=138971
Meeker, M. & Devitt, S. & Wu, L. (April 12, 2010) Internet Trends [PDF document]. Retrieved
from Morgan Stanley Institutional Research site:
http://www.morganstanley.com/institutional/techresearch/internet_trends042010.html
mobiThinking. (2009) The mobiThinking guide to mobile advertising networks 2010: Blind
Networks. Retrieved from http://www.mobithinking.com/mobile-ad-network-guide/blind
Mooney, A. (April 16, 2010) Why Apple's iAd platform will make mobile ads sexy.
Retrieved from http://www.mobilemarketer.com/cms/opinion/columns/5997.html
Palmieri, P. (April 13, 2010) Four things about Apple iAd that tickled Millennial Media’s Paul
Palmieri. Retrieved from http://www.mobilemarketer.com/cms/opinion/columns/5952.html

22. References
Patel, K. (April 8, 2010) Apple's iAd Not Game-Changing, but Will Move Market.
Retrieved from http://adage.com/digital/article?article_id=143189
Patel, K. (March 22, 2010). Forget Foursquare: Why Location Marketing Is New Point-of-
Purchase. Retrieved from http://adage.com/digital/article?article_id=142902
Reedy, S. (February 11, 2010) Mobile operators seek role in great location shake-out. Retrieved
from http://connectedplanetonline.com/mobile-apps/news/great-location-shake-out-0211/
Schonfeld, E. (October 6, 2009) Mobile Advertising Is Shaping Up to Be All Search. Retrieved
from http://techcrunch.com/2009/10/06/mobile-advertising-is-shaping-up-to-be-all-search/
The Economist. (March 4, 2010). Follow me: Adverts that know where you are could be
lucrative—not to mention controversial. Retrieved from
http://www.economist.com/businessfinance/displaystory.cfm?story_id=15612291
Walsh, M. (November 23, 2009) Report: Google + AdMob = 24% Mobile Ad Network Share.
Retrieved from http://www.mediapost.com/publications/?art_aid=117926&fa=Articles.showArticle
Warren, C. (April 27, 2010). Motorola Droid is Android’s Dominant Device. Retrieved from
http://mashable.com/2010/04/27/admob-stats-march-2010/
Wauters, R. (February 23, 2010). Mobile Location-Based Services Could Rake In $12.7
Billion By 2014. Retrieved from http://techcrunch.com/2010/02/23/location-based-services-revenue/
Photo credits: Jason Madara; most other photos are from internet, authors can contact me for credit.