Business Research
- There are hundreds of mobile advertising delivery platforms and web advertising companies that facilitate the buying, selling and exchanging of mobile traffic. All these specialize in matters of mobile marketing on advertising and promoting androids, iOS, tablets, apps mobile videos, mobile operators and brands as well as provision of interactive mobile services on mobile sites and consultancy among others to help manage ad traffic.
- Some of the most popular platforms include, Adfonic, Admarvel, Adwhirl, Adsmobi, Appia, Appflood, Buzzcity, Burstly, Celtra, Casee, Dsnmrg, Doubleclick, Flurry, Fiksu, Hipcricket, Greystripe, Jumptap, Inmobi, Leadbolt, Komlimobile, Madvertise, Mobfox, Mobgold, Mobile Theory and Millennial Media just to mention a few.
- The company had started the year on a balance sheet of over $30 million and is now left with a little over $19million, with a debt of almost $20million.
- Tapjoy, also a mobile ad company has had to lay of some of its workers as a result of the decreasing revenues.
- Investors are however counting on a possible increase in revenues by 2017, due to the increase of consumer’s media consumption on mobiles and have recently purchased and made deals with some ad platforms. The ad company, Rocket Fuel for instance, recently filed some documents with investors from the SEC worth $100million.
- Apsalar similarly secured $9milliuon in second round funding while Ubimo also a mobile ad platform secured $2million in seed funding. There are however worrying trends in the industry judging from the falling ad prices and laying off of workers.
- Google recently reported a recorded reduction in Q2 revenues due to the falling prices for mobile ads of almost 6%. In May this year, almost 200 of the staff in Velti were laid off together with other companies. The Millennial Media has recorded a drop of over 50% in its stock as well as missing out on major revenue expectations. These trends and consolidations are all indicative of the drop in mobile ads market base and falling tides a factor that is currently pushing away investors.
Project 2
- According to recent news, Google is exploring the close possibility of using tracking devices on online consumers that do not use cookies. Although the technology has not yet been fully developed, it has already caused a stir and upheaval in conference calls with advertising companies voicing concerns on the implications of the new technology to their market base.
- Google however states that the new tacking mechanism will help advertisers to consolidate more market shares.
- The technology is however still young and has several speculative mechanisms of operation.
- Google plans to develop an anonymous identifier for every individual that is expected to replace the cookies on users of Chrome, as well as other browsers, this will be on a particular device that will consequently be used by advertisers to target ads.
- Ads are therefore expected to be targeted based on consumer’s online behavior through building a behavioral profile on their shopping habits, preferences and the sites they visit.
- Most of the browsers including Mozilla Firefox and Apple Safari Browser are now opting for a Do Not Track standard on online ads following suit after Internet Explorer.
- Alternatively, Google is exploring on the launch of a feature that automatically blocks cookies as a default setting. This, Google says is expected to enhance consumer security and ensure that the Web is economically viable.
Works Cited
Business Insider Reports. 2013. Retrieved from, http://www.businessinsider.com/how-velti-one-
of-the-largest-mobile-ad-companies-on-the-planet-lost-130-million-2013-9#ixzz2fOlI3DQl.html
Claire, C.M. 2013, Google Is Exploring an Alternative to Cookies for Ad Tracking. Viewed
September 19 2013. Retrieved from http://bits.blogs.nytimes.com/2013/09/19/google-is-exploring-an-alternative-to-cookies-for-ad-tracking/?_r=0.html
Technology Advice. 2013. Electronic References. Viewed September 19 2013. Retrieved from
http://technologyadvice.com/is-mobile-advertising-in-a-bubble-examining-the-recent-market-trends/. html
