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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. Here’s a man who believes that mobile phones are the most powerful communications media on Earth.
Since then, the company has expanded its mobile ad network partners 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 is one of the few ways publishers can fill their ad inventory quickly and efficiently.
Mobile Ad Network 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, first 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 the growth of mobile advertising as a percentage of ad spend would increase. Some claimed 80% or higher. And virtually every mobile ad network experienced significant growth.
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, Neidhardt’s firm finds this African country a major opportunity for mobile ad network growth. The country lacks the wired infrastructure of U.S. and western European countries, making mobile one of the few available advertising media channels.
Mobile Advertising Exploding
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., over 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 mobile ad networks, 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 have increased 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, Neidhardt 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 a major figure in advertising discusses recent 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.
