The mobile advertising industry seems to have quietened slightly since the Google-AdMob acquisition was cleared, and the Apple-Quattro purchase settled down into the iAds announcement. Around that time, people (well, VCs) were hopeful that this was the beginning of a wave of acquisition in a fairly crowded marketplace. The trouble is, there aren't that many more potential acquirers out there.
There is, however, plenty of room for consolidation. I say this as someone who has been signing the same visitors' books at the same advertisers and agencies as every other mobile advertising network... At some point, somebody is going to realize that all the networks are busy selling and re-selling one anothers' inventory, and that the fight right now is for who gets to be top of the tree, making the most CPM/CPC, as opposed to being somewhere near the bottom, and scraping the smallest cut before it gets to the publishers.
In short: the InMobis, Jumptaps, Millennials, Madvertises, Smaatos, Mojivas and Greystripes of this world are ripe for consolidation for scale. Plug the newly-acquired publishers into an existing network, and consolidate by scrapping the lesser technology/product platform and the people who created it, slicing through an executive team, and laying off the worst-performing ad sales people. It wouldn't entirely surprise me if players who already have mobile ad networks (such as Navteq/Nokia or Microsoft, or even Google) start to make acquisitions like this to build scale, or to enter territories where they don't presently feel strong enough. In the meantime, the slightly confused and confusing market landscape of dozens of overlapping mobile advertising networks is a labyrinth that some may need help in navigating. Watch this space...
This post was originally published on www.insidermobile.com on July 27th 2010
http://www.insidermobile.com for mobile, mCommerce and mobile advertising related things. I suspect I will double up and put anything I put up over there on here too. Or at least mention it here!
OK, so this is big news, and counter to the way the wind seemed to be blowing. And, yes, it creates a powerhouse that is difficult to fight in the marketplace.
But, hey, with every door that closes, another one opens, or something. Firstly I'm particularly happy for Mr. Buckley, since as we said to one another a few months ago, it's about time one of us had a decent exit... Secondly, I don't really fear Google-AdMob. In a nascent market, people will choose a supplier for all sorts of reasons. Being big is one of those. Being nimble is another. And I say this as a direct competitor.
This isn't monopolistic. It's an opportunity. I'm meeting with Russell next week, actually. Obviously he needs to buy the drinks :)
As reported here.
It's an interesting pattern, and one that most of us saw coming... Predominantly SMS-based 'mobile marketing' firms are being pulled into the vortex of 'mobile advertising'. This makes perfect sense, as these companies know mobile, and its unique attributes, and have been working on clients and agencies for years (often having not quite closed the sales cycle yet!)
It's an extra string to their bow, and one that mobile advertising providers will appreciate - tapping into that rich seam of talent, experience and a client base (albeit one that perhaps does not provide annuity revenues).
So is this the beginning of a new spate of acquisitions? I think it might be. Just as above-the-line agencies once took over star performing DM agencies, I suspect mobile advertising players will start scooping up mobile marketing firms. It's certainly a feature of a smart strategy for entering a market, as Adenyo are.
My personal-professional mantra
They say imitation is the sincerest form of flattery. Which I guess means plagiarism is tantamount to love.
The phrase 'it's about psychology, not technology' first made an appearance in regard to mobile solutions in a presentation I gave to Orange in 2001 as COO of Scan Mobile. It has since appeared in presentations by Digital Rum, Run The Red, Fronde Anywhere, Flame Digital and Sponge, who I just discovered have co-opted it as their own.
I guess I'm going to have to work on a new one for a new decade, and the beginnings of a career in a slightly different direction. But I do love it so. Or maybe i should have trademarked it, and be earning royalties...?
I was reminded of this again recently by a well-meaning digital evangelist who thought mobile telephony began with the iPhone.
In eleven years in the mobile sector, I have met (and run!) many mobile solutions companies who profess that they are 'seeking the killer application for the mobile phone'.
I remind them all, it's been found: the ability to communicate with people wherever you are.
Second mobile advertising network goes for big bucks
So Apple, who were part of the bidding war for AdMob that saw Google reach into it's pocket for $750MM, have just bought Quattro Wireless for $275MM.
I was asked on Twitter earlier "who else might buy an ad network?". Well broadcasters might be a solid bet, but no, you're unlikely to see Microsoft, AOL and Yahoo, the other behemoths of tech M&A, fly in and buy your fledgling mobile advertising business. Why? Because...
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(should it exist, or will we soon get annoyed with it?)
Anyone who has ever worked with me will know this is something I've banged on about at length for years. Most mobile marketers have either disagreed with me or ignored me, which I've taken as a good sign.
One of the primary lessons learned over a decade of interacting with consumers over their mobile devices is what I used to call 'the unique way they interact with their 0-9 keypad'. These days it's as likely to be a QWERTY keyboard or a touchscreen, but the principle is the same. Context is king...
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(okay, so it was acquired 7 years ago, but still...)
'Twas mid-December 1999. Myself and two of my best old friends were working at a digital marketing consultancy. We were working (and drinking) one evening with Robert Hamilton, who'd just had this fabulous idea - he'd tried to buy a book, but had no way (in the days before the mobile internet) to find out if it was cheaper, or in stock, at Amazon. What about this SMS thing? Snaffle It was born - a price comparison/stock checker using SMS that screen-scraped Amazon using a book's ISBN code...
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