Steve Madden, a San Francisco based retail shoe brand, has been bitten by the mobile bug and is considering shifting its focus on mobile phone advertising. Jared Horowitz, who is in charge of the business development section of Steve Madden, has stated that it has become an integral part of their digital business.

As of now, only 0.5% of Steve Madden’s revenue is generated by mobile users. The company, however, is hopeful that the revenue will increase significantly in the coming years if they develop a mobile optimized site and drive traffic to it by running innovative mobile advertising campaigns. So, to prepare themselves for the mobile juggernaut, they have come up with a long list of plans. They include

• Developing a mobile optimized WAP site which is easy to navigate.

• Adding lots of interactive features to the site like click-to-call functionality (to help people get in touch with sales persons directly) and mobile social networking functionality (to help people share their favorite stuff with their friends via email, Twitter, or Facebook).

• Adding a Store Locator feature to help people find the nearest Steve Madden store.

• Developing an application for the iPhone and iPod Touch to make it easier for iPhone users to reach the site.

• Setting up multiple revenue streams with mobile web display ads, mobile search ads, and in-app display ads.

• Introducing SMS offers and mobile coupons to engage potential customers.

• Devising innovative mobile marketing strategies to target potential customers.

According to the numbers revealed by the company, the non-optimized site of Steve Madden got more than 55,000 visitors via mobile devices in the month of February. There were more than 300,000 page views and 450 purchases. If they go ahead with the plan and implement the ideas they have come up with, they will be able to get a lot more visitors in a short span of time. More traffic, needless to add, will result in more revenue, which is always good news for any company. It should be interesting to see where Steve Madden goes from here.

The iPhone, according to ABI Research, is still the major player in the mobile app market. However, its market share is expected to reduce considerably over the next few years due to the rise of Google Android. Android currently has an 11% market share. Due to its increasing popularity and Apple’s shrinking market share, Android’s market share is expected to increase from 11% to 23% by 2014.

The reason behind Android’s growth in the mobile application market is not hard to fathom. As of now, 14 phones run the Android OS and the number is expected to increase sharply this year due to the introduction of new Android based phones. Also, the response for free mobile apps from Google, Google Maps being a fine example, has been great so far. Since Google is expected to come up with more such free apps and ad-funded apps, it is safe to assume that the number of mobile apps downloaded by consumers will increase in the coming years.

ABI Research has also made another observation. It says that even though the number of mobile apps downloaded by consumers is expected to rise sharply, it may not reflect positively on the revenue chart. It says that the proliferation of free ad-funded apps might make people reluctant to buy paid mobile apps. It is quite a bold prediction given the fact that the idea of ad-funded apps is still in its nascent stage.

What I believe is that there is enough space for both ad-funded apps and paid apps. While the demand for free ad-funded apps is likely to increase significantly, the demand for paid apps, particularly business centric mobile apps, will not disappear completely, as there are quite a few people who do not like the idea of a mobile app loaded with ads. So, I predict a mobile ecosystem where ad-funded apps and paid apps can coexist without any problems. What do you think? I am interested in hearing different opinions.

Started in 2004, Greystripe has been going strong for the past six years and is one of the leading rich media mobile advertising networks in the world today. It specializes in delivering full screen ads on the iPhone, Java, and Android platforms. It also serves flash ads on the iPhone using a unique transcoding technology. The company has raised nearly $18 million in venture funding and is expecting its sales to triple this year. Michael expects the company to be profitable next year.

Ever since Google bought AdMob, a lot of eyes have turned towards Greystripe, which is a competitor to AdMob. Michael Chang says that in the last two months, he has met a lot of people who have expressed their interest in buying the company. He says that a lot of people were actually interested in Greystripe even before Google’s acquisition of AdMob.

Going by what Michael Chang says, it is safe to assume that Google’s acquisition of AdMob, albeit inadvertently, has made a lot of people focus their attention on companies like Greystripe. By acquiring AdMob, Google has become the top player on the market with 30 to 40 percent market share. So, companies like Yahoo and Microsoft might try to acquire small and medium sized mobile advertising companies to consolidate their market share. Microsoft, in particular, is in dire need of a revival and I will not be surprised if they make the first move. It should be interesting to see how things unfold in the coming months.

That’s right folks. Finding the best deals in town this holiday season has become a lot simpler. Holiday season sales, discounts, deals, and offers – you can find it all on your mobile phone in the form of mobile coupons. You can simply show these coupons to the retailer (or wholesaler depending on who offers the discounts) and redeem the offer.

So, what actually happens is

1. A local business, an electronics showroom for example, adds a mobile coupon to Google Local Business Center listing.

2. You go to google.com on your mobile phone and search for some good deals on DVD players.

3. The Place Page shows that a showroom nearby offers a 10% discount on Blu-ray players and gives three Blu-ray discs for free.

4. You get a message which says that you should show the coupon on your phone at the participating business to redeem the offer.

5. You go to the showroom, show the mobile coupon, and buy the DVD player at a discount and get all the free stuff.

6. You walk away with a big smile on your face.

Sounds simple enough, doesn’t it? What this means to you, and millions of other mobile users, is that you do not have to go through newspapers, magazines, and billboards looking for the best deals this holiday season. You can get all the information you want on the go right on your mobile phone. It is a lot more convenient and saves a lot of time as well. So, get ready to shop till you drop.

If you remember, the Associated Press launched its own mobile news portal some time back. The response, as expected, has been very good so far. With more than 1.5 million registered users, AP’s mobile application is one of the most popular apps in the marketplace today. Still, AP wants to extend the reach of its mobile news network further. So, the company thinks that developing a customized application for Windows Mobile users is the first step in the right direction.

The introduction of this application will help AP in two ways. One – it will make its mobile news portal very popular. Two – it will create new revenue streams for its members. It will be beneficial for Microsoft as well as it gives Windows Mobile users access to a wide range of information, tools, games, and more. If you are a Windows phone user, this app will bring you stock market news, weather news, sports updates, local news and international news, lifestyle tips, travel tips, and entertainment news right to your mobile phone screen.

The app also includes plenty of social networking features which allow you to share a news story with your friends instantly on Twitter or Facebook. You also have the option of bookmarking it in your Delicious account. If you want to share something privately with your friends, you can email the story as well.

So, how have Windows Mobile users reacted to this new app? A cursory look at the comments section on Windows Marketplace for Mobile gives a good idea. It is full of positive comments like ‘great app’, ‘user friendly app’, ‘nice social networking features’, and so on. So, we can expect a lot more users to download this app. AP has plenty of reasons to smile. If you are a Windows Mobile user, make sure you check out this application and let me know your thoughts.

This, as you can imagine, is an opt-in service which is available only to those who subscribe to the service voluntarily. Customers will be delivered interactive full screen ads at the end of every call. Banner ads will be served when customers are browsing the net on their mobile phone. The subscribers who opt in to the service will get special discounts, offers, and free services which are not available to regular subscribers of America Movil.

The ads delivered are highly targeted based on the preferences of each subscriber. The subscribers can get ads from different categories like health, entertainment, lifestyle, and sports. Subscribers can accumulate reward points for every ad they view on their mobile phone. They can redeem these reward points to get free services and other such offers from their operator.

America Movil and MyScreen conducted a trial this year to get an idea of the response from subscribers. Much to everyone’s surprise, the ads from MyScreen generated 20% CTR (click through rate), which is unprecedented to say the least. Just so you know, online ads, which have become ubiquitous these days, generate a CTR of 1%. In other words, the response to mobile ads, at least in this scenario, was 20 times higher than the response to online ads. This encouraged the parties involved tremendously to introduce the service to America Movil customers.

In my opinion, the timing of this alliance could not have been better. A recent report from Juniper Research says that mobile advertising in Latin America is still in its nascent stage and is expected to grow significantly in the coming years. In 2012, the amount spent on mobile advertising in the region is expected to be somewhere around $1.3 billion. Considering the fact that America Movil has millions of subscribers from the region, it makes sense for them to join hands with MyScreen to come up with such a service.

The directory enquiry service offered by 68100 covers both business and residential landline numbers in the country and costs only 35p per minute. Now, some of you might be thinking ‘there has to be a catch somewhere’. It is true. There is a catch. You need to listen to an ad when you call this number. It is a concept that you are all familiar with – mobile advertising. Let me tell you how it works.

1. You call 68100.

2. Your call is attended by an operator who searches for the number you request.

3. You listen to a small 20-second ad.

4. An automatic voice reads out the number you requested.

5. Once you hang up the phone, you get a text message which contains the requested number and an offer from an advertiser.

6. If you want the service to connect you to the number you requested, you can press 1.

7. If you are interested in the offer from the advertiser, you can press 2.

It is like any other directory enquiry service. The only difference is that it is available at an affordable price since a significant portion of the cost is covered by mobile advertisers.

The question now is whether people will be willing to listen to ads or not. It is difficult to answer this question. Some might avoid using this service because of their rabid aversion for ads. Some might use this service since it is cheap. I, for one, wouldn’t mind using such a service if I can save a pound or two. So, it all depends on people’s preferences.

The only problem with this service, in my opinion, is that it primarily caters to people who have low end mobile phones without internet connectivity option. If a person has a high end mobile phone, like I do, he can easily get the information he wants by visiting the website of Yell or Maureen. He does not need to use this service at all. Apart from this, I do not see any other problem with this service. This, I think, is yet another example as to how useful mobile advertising can be if presented the right way. What do you think?

• The number of people who use social networking sites like Facebook and MySpace increased by nearly 7% in 2009.

• The number of mobile users who send or receive more than 10 emails a week increased by nearly 10%.

• The number of mobile phone users who send or receive more than 10 text messages a week increased by nearly 10%.

• The number of people searching the internet for products and services available in their area increased by nearly 3%.

• The number of local searches done on the mobile phone exceeds the number of out-of-area searches. In other words, local search is increasingly becoming popular with mobile users across the country.

Done? Now, check out some random statistics I picked up from various sites on the internet.

• There are about three billion mobile phones in the world today, which makes mobile technology the most widely used technology on the planet today.

• For a large number of 16-24 year olds, the mobile phone is a lot more important than the TV.

• The number of people who have mobile phones is significantly higher than the number of people who have credit cards.

• The amount spent on mobile media rose by nearly 40% last year. In other words, mobile media is the fastest growing media channel in the world today.

• In 2012, the amount spent on mobile media in the U.S. will be somewhere around $6 billion. The total amount spent on mobile media worldwide will be in the range of $18-20 billion.

What do these numbers tell you? Firstly, the world is becoming increasingly mobile savvy. Secondly, a large number of mobile phone users use their phone for browsing the net, searching for stuff, listening to music, watching videos, and connecting with their friends through various social networking sites. So, the mobile phone is no longer just meant for sending and receiving text messages and calls. It is slowly becoming a multidimensional tool.

If 2009 is a precursor of things to come in the world of mobile phones, we can expect a lot more in the coming years. And that is good news for mobile advertisers all over the world.

Regular readers of this blog know a thing or two about AdMob. It is one of the few mobile advertising companies that I’ve written a lot about on this blog. Anyone who has seen the growth chart of AdMob will hardly find it surprising that a giant like Google has acquired the company. After all, the company has served billions of mobile ads and its clientele include big names like Yahoo.

AdMob specializes in web display ads and application display ads. When mobile users surf the net or play a mobile video game, they will be served targeted ads. Google, as you know, specializes in search ads. When mobile users search for something on the internet, the results page they get will contain targeted ads. Now, combine these two technologies and you have a killer mobile marketing strategy.

Google has spent an astronomical $750 million on this acquisition. Some people think it has spent a lot of money to acquire what many perceive a small business. I do not think so. Google, as we all know, has been trying to make its presence felt in mobile advertising market for quite some time now. While it is certainly seen as a force to be reckoned with, its success on the mobile market is nowhere near its success on the internet. So, acquiring a company like AdMob can help Google establish itself on the mobile phone advertising market.

Moreover, this acquisition will give Google a chance to understand the dynamics of the mobile advertising market. It now has access to a huge amount of data which includes the usage data of various mobile applications. It now knows what kind of mobile apps are preferred by mobile users and what kind of ads have the best conversion rate. With this knowledge, Google can fine tune its advertising strategies and get even better results. So, in my opinion, this acquisition can only be good for Google in the long run.

If you think about it, what Google has done is not surprising at all. You are a new entrant to the market. You see that a number of players are already going strong. You can grab a big share of the market by either competing with them or by buying them out. When you have enough money to buy half of your competition, the latter sounds like a much better option, don’t you think? Something tells me that we’ll see more such acquisitions in the recent future.

It is really surprising. After all, Microsoft entered the smartphone market long back – Pocket PC 2002, the predecessor of Windows Mobile OS, was released in 2002. Soon, Windows Mobile was released in 2003. What has Microsoft managed to achieve in the past six years? The answer is – nothing worthwhile.

Windows Mobile, as of now, is the fourth most used mobile operating system in the world. Nokia with its Symbian OS is the market leader – followed by Blackberry and the iPhone. Experts, however, predict that it might not be able to stay at that spot for long. When you take a good look at the numbers, you get the feeling that what they predict might actually come true.

In the first quarter of 2004, Microsoft’s Windows Mobile had an envious 23% share in the smartphone market. In the first quarter of 2005, there was a steady decline and its market share was somewhere around 18%. In the first quarter of 2006, it further slumped and remained with a market share of 12%. In 2008, its market share dropped to 14%. At the start of 2009, it slumped further and remained at 7.9%. If we go by the recent report from AdMob, Microsoft’s market share, as of now, is only somewhere around 4%.

It is quite a slide – from 23% market share to 4% market share in a span of just five years. In the mean time, Apple, Nokia, RIM, and even Google have made their presence felt in the market big time.

It is really hard to believe. After all, Microsoft has got everything - all the money in the world, some of the brightest minds in the world, and plenty of goodwill. Yet, it has not been able to conquer the mobile market like it conquered the PC market. While late entrants like Apple and Google have been able to generate a big buzz, Microsoft has not been able to do anything that is worth taking notice.

Apple iPhone continues to climb the ladder and even new entrants like Motorola Droid have managed to create a big buzz. With this being the case, Microsoft’s only bet is Windows Mobile 7 OS – which incorporates the elements of Windows Mobile 6.5 and Zune – which is slated for release in 2010.

The mobile phone industry, the smartphone market in particular, is expected to grow bigger by the day. Mobile advertising, as we all know, is set to grow big as well. The time is ripe and the competition is intense. The question is – can Microsoft pull it off?