RIM Looking to Acquire a Mobile Advertising Network?

The latest news in the mobile world is that Research In Motion, the famed Blackberry maker, is looking to buy a mobile advertising network.

RIM firmly believes that the only way to take on its arch rivals Apple and Google is to buy a mobile ad network which is big enough to challenge the networks of its rivals. It is said the company has been negotiating with Millennial Media, a Baltimore based advertising network. The talks, however, were not a success as the ad network expected a huge sum – somewhere in the range of $400-500 million.

RIM, understandably, is concerned about paying such a huge price as it believes that it is too expensive a price to pay to acquire the network. If you remember, Apple paid close to $300 million to acquire Quattro and Google paid an astronomical $750 million to acquire AdMob.

Millennial Media, according to sources, is not very interested in the deal as it believes that it has a bright future as an independent company. Also, it believes that an acquisition by RIM would limit its ability to serve targeted ads to the iPhone, iPad, and iPod platforms, which would eventually affect its relationship with Apple. So, it is not willing to give the nod unless it gets the right price.

Since the talks with Millennial Media were less than satisfactory, RIM is also believed to be looking for other mobile advertising networks like Greystripe and JumpTap.

The reason why RIM is so desperate to acquire a mobile ad network is not hard to understand. Its share in the global smartphone market slumped from 19.1 percent to 17.8 percent recently and most of its latest launches like Blackberry Storm, Storm2, and Blackberry Torch have not been a great success. So, to catch up with the rapid growth of Google Android and Apple OS, it believes it has to have its own mobile advertising network. While both Millennial Media and Research In Motion have declined to comment publicly on the developments, it is said that we could expect some big news, particularly from the RIM camp, in the near future.

Categories: Cell Phone Advertising, All things mobile phones, RIM.

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AT&T Orders 8 Million Windows Phone 7 Devices - What Does It Mean for the Future of Microsoft and AT&T?

The mobile industry is abuzz with the news about AT&T placing an order for 8 million Windows Phone 7 devices. The news comes from Michael Gartenberg, who is a well known name in the mobile industry. This news has surprised many for two reasons.

1. AT&T still remains the exclusive iPhone carrier in the U.S. The unprecedented success of the iPhone has helped AT&T increase its subscriber base significantly. In such a case, a shift towards Microsoft is seen by many as a shift away from Apple.

2. Microsoft is not a very big name in the mobile phone domain today, which is ruled by two of its greatest rivals – Google and Apple. So, many believe that AT&T will not gain much from a partnership with Microsoft.

On the surface, it looks like AT&T is taking a big risk by ordering such a huge number of Windows Mobile 7 devices. However, if you take a closer look, you will realize that it is not as risky as it seems.

First, there are rumors that the exclusive deal between AT&T and Apple might end soon. Industry insiders say that a Verizon version and a T-Mobile version of the iPhone might be in the offing, which would effectively end AT&T’s stint as the exclusive iPhone carrier in the country. If these rumors are indeed true, it makes sense for AT&T to look for an alternative since the iPhone will be no longer unique to its network.

Microsoft, due to various reasons, is still struggling to compete with Apple and Google and is desperately trying to become a dominant force in the mobile phone domain for ages. It is betting big on Windows Phone 7, which is expected to be loaded with highly advanced features. If Windows Phone 7 becomes a success, AT&T will be able to retain its position as a prominent carrier in the country and Microsoft will be able to gain a much needed foothold in the mobile phone market. So, whichever way you look at it, it is certainly an interesting move by AT&T. Will it pay off? Let us wait and watch.

Categories: All things mobile phones, Microsoft.

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US Mobile Display Ad Spending Likely to Exceed $1 Billion in 2015

ABI Research’s recent report says that mobile advertising spending on display ads in the United States is likely to quadruple in the next few years. The amount spent on mobile display ads, which stands at just over $300 million now, is expected to exceed $1.2 billion in 2015.

Neil Strother of ABI Research says that a survey conducted by the firm in February revealed that 28% of mobile users use the mobile internet facility regularly. He says that the percentage of mobile internet users has increased phenomenally in the last 14 months, which is a great sign for the mobile advertising market.

The report, based on the inputs from a number of mobile marketers, technology vendors, mobile network operators, and advertising agency executives, says that there has been a steady increase in the amount allocated for mobile ad campaigns by companies. Industry insiders say that they have been seeing year-over-year increases of 25%-30%, which is unprecedented when you consider the fact that the industry is still in its infant stage.

Marketers use different types of ads like mobile display ads, text message ads, in-app ads, search ads, and video ads to reach their target audience. They rely on simple text message ads to reach people with low end phones that lack advanced features like mobile TV, internet, audio, and video. On the other hand, they use a variety of rich, multimedia ads to reach people with smartphones that come loaded with advanced features. Statistics show that smartphone penetration in the US is just about 20% now. As this number increases, we can expect a huge surge in the number of mobile ads served across the country.

One of the important signs that indicate a bright future for the industry is the entry of big players like Apple and Google. So far, the industry has been dominated by independent ad networks like Millennial Media, Jumptap, and Greystripe. Google’s acquisition of AdMob and Apple’s acquisition of Quattro Wireless, however, has changed the scenario completely. It shows that the idea of using the mobile phone as an advertising medium is slowly getting mainstream acceptance, which is great news for anyone is related to the mobile advertising industry.

Categories: Cell Phone Advertising.

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The FTC Approves Google’s Acquisition of AdMob

It has finally happened folks. The United States Federal Trade Commission has approved Google’s acquisition of AdMob. While this is something that we all knew would happen, there is an unexpected twist to the story. The approval was made possible because of Apple – Google’s arch rival. Incredible, don’t you think?

The FTC was reluctant to approve Google’s $750 million acquisition of AdMob because of just one reason – it thought the move would give Google an edge over all its competitors and make it a monopoly in the mobile advertising market. It thought the deal would make Google too big for any competitor to take on. Apple’s acquisition of Quattro Wireless in January, however, changed everything.

The acquisition of Quattro gave Apple a strong chance to dominate the mobile ad market. Moreover, an increasingly large number of people are using Apple iPhone and iPad to access the web on the go. So, the FTC decided that Apple’s deal with Quattro Wireless, coupled with the fact that the company has a significant presence in the smartphone market, will definitely mitigate the dominance of Google as a mobile advertising powerhouse and approved the latter’s acquisition of AdMob.

The FTC, in its own words, admitted that the decision was very difficult to make as the parties involved in the deal (Google and AdMob) are two of the most powerful mobile advertising networks in the world today. The regulators were worried about antitrust issues, which is one of the main reasons why they did not approve of the deal right away. The deal between Apple and Quattro Wireless changed their opinion and overshadowed their concerns. As a result, Google can now breathe a sigh of relief.

This, in my opinion, is the best thing that could have happened to the mobile advertising industry. Apple, which recently released the iPad, is poised to become a dominant force in the market and Google, with its Android OS, is already making waves in the market. As of now, the top players in the market include Apple, Symbian, Blackberry, Android, and Microsoft. The AdMob deal, however, gives Google a definite edge over its competitors.

The deal has made Google the largest mobile advertising network in the world today. As some of you already know, AdMob recently served its 200 billionth ad and serves, on average, 8.5 billion mobile ads every month. The company has its presence in more than 160 countries and has some of the biggest companies in the world as its clients. So, Google is all set to become the most dominant player in the market. Its competitors have their work cut out. It should be an interesting battle.

Categories: Cell Phone Advertising, Google, Apple.

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AdMob Serves 200 Billion Mobile Ads

Mobile advertising firm AdMob has served up its 200 billionth mobile ad. That’s billion with a capital B. As I write this blog, the number stands at 202,769,798,813 – that’s how many ads the firm has served up so far. The mind boggles, huh?

AdMob offers a wide range of services including mobile advertising and monetization solutions for advertisers, agencies, mobile web publishers, and mobile app developers. With thousands of mobile sites, it is, as of now, the largest advertising network in the world. Their client list, which by the way seems to be growing by the day, includes some of the most well known brands including Coca Cola, Ford, Proctor & Gamble, Land Rover, MTV Europe, and Adidas.

AdMob’s mobile advertising solutions help advertisers target and reach their customers easily. Its monetization solutions help publishers monetize their mobile web traffic effectively. Their highly personalized ad campaigns generate very good click through rates, which is one of the main reasons why they have some of the biggest brands on their client list.

What is astonishing about AdMob reaching this landmark is that it served up its 100 billionth ad only nine months back – in August 2009. In other words, from the period of August 2009 to April 2010, the firm has managed to serve up, on average, 11 billion ads a month. Is it any wonder Google is willing to do whatever it takes, even go to the extent of fighting the government, to acquire AdMob?

To know more about AdMob, you can check out some of my posts here, here, here, and here.

Categories: Cell Phone Advertising.

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