Mobile Ad Networks and Mobile’s Future with Harald Neidhardt

Harald Neidhardt, CMO and Co-Founder of Smaato, a Mobile Ad Network Aggregator

In May, 2009, Harald Neidhardt, Co-Founder and CMO of Smaato, a mobile ad network aggregator, appeared on IM-Mobile to discuss  the fast growth of the mobile advertising industry and his personal belief that mobile has become the most powerful communications  medium on Earth.

Since then, the company has expanded its ad networks from 20 to 40 and registered publisher base from 200 to 7,000. The international firm is riding a tsunami as a mobile advertising wave races around the globe impacting brands, publishers, application developers, mobile phone manufacturers and mobile users.

The company is a pioneering mobile advertising firm that operates its mobile ad optimization platform called SOMA (Smaato Open Mobile Advertising). Smaato is one of the few ways publishers can fill their ad inventory quickly and efficiently.

Mobile Advertising Growth

Three years ago, when Apple’s iPhone emerged, few envisioned how quickly mobile would grow in developed and developing nations and continents. Those in the mobile ecosystem, especially advertising agencies and brands, saw smartphones, “apps” and mobile advertising in 2009 as tiny fish swimming in a huge online advertising ocean of $55 billion.

While it’s true that the mobile advertising goldfish generated less than $1 billion in 2008-2009, nearly all research companies agreed that mobile’s growth rate as a percentage of ad spend would increase. Some claimed 80% or higher.

Now, few question that mobile advertising is growing exponentially. eMarketer forecasts $6.5 billion in expenditures by 2012 in the United States, while Smaato predicts $1.5 billion for Asia-Pacific in 2010. In June, 2010 alone, the company delivered 8 billion ad impressions to mobile phone users in 220 countries and continents, including Indonesia, South Korea, Japan, China and Southeast Asia. That figure is rising quickly to 10 billion impressions.

Due to mobile’s dominance in South Africa, Smaato finds this African country a major opportunity for mobile advertising. The country lacks the wired infrastructure of U.S. and western European countries, making wireless one of the few available advertising media channels.

Mobile Dominance

Clearly, the mobile ad fish is still tiny compared to the online advertising whale. Yet the little critter is on steroids and bulking up fast. On June 12, 2010, the number of  cell phones rose to five billion worldwide and continues increasing daily especially in developing countries and continents.

In the U.S., 20% of U.S. consumers have already purchased smartphones and 50% will own one by 2011.  Another five billion wireless devices, including tablet computers,  e-readers, smart meters, wireless health gadgets and other devices are due for arrival by the end of 2011.

Mobile Apps and Engagement

The growth of mobile apps, supported by Smaato’s mobile ad network, is a major reason for the increasing worldwide demand for Apple’s iPhone, Android-based phones and other smart devices, such as the iPad. Apps increase user engagement with mobile devices.

Research by Joy Liuzzo at InsightExpress, for example, identified a segment of phone users she calls “mobile intensives,” people who use nearly all the functions of their devices: taking photos, listening to music, finding people and places with GPS and accessing social media sites.

In the podcast interview, Harald says he’s positive about Apple’s iAd launch and believes the company will “push the envelope” creating a wave of innovation in the mobile advertising industry. He also talks about the need to find and educate creative talent to grow mobile advertising revenues.

Listen as Harald Neidhardt discusses recent Smaato stats on the growth of Android phone click-through rates, why you can’t buy an iPhone in Germany, the annual mobile application contest sponsored by his company and the future of mobile advertising.