Ten days ago I wrote a blog about the current state of the mobile advertising market after attending Strategyeye’s ‘Future of mobile Advertising’ breakfast club meeting. This note serves to highlight some key points coming out of France, taken from Frederic Filoux’s excellent article (link below) which add further ‘noise’ to the current state of mobile advertising: that’s its weight is currently small but it’s growth is significant. Mobile revenue is the fastest growing segment (+29%), but weighs only 2% of the entire digital segment (€1,830m revenue in 2012).
All media............€13,300m.....(Source: IREP, an advertising economics research organisation) The conclusion for advertising revenues is dreadful. Not only do audiences massively flock to mobile (more visits), but people spend more time in their favorite media app (with an even greater increase in page views) but, also, each viewer brings less and less money as ad revenues grew slower than visits — by a factor of two — and slower than page views — by a factor of three. To add insult to injury, mobile apps don’t allow cookies, which prevents most measurements and users tend to randomly switch from their mobile devices to their PC or tablet, making tracking even more difficult. How might publishers react? The advertising community evangelizes the promises of Real-Time Bidding; RTB basically removes the Ken and Barbie from the transaction process as demand and supply are matched through automated market places. But RTB is also known to pushes assets prices further down. As usual in the digital ad business, the likely winner will be Google, along with a few smaller players — before these are eventually crushed by Google. Full details here: The Mobile Rogue Wave | Monday Note.
.-3.5% TV...................€3,300m.. .....-4.5% Print press (all)....€3,209m.......-8.2% National Dailies.....€233m........ -8.9% Internet Display.....€65m..........+4. 8% Internet Search......€1,141m.......+7% Mobile...............€43m..... ....+29%