Brazilian Mobile Advertising Services Market Application-to-peer SMS Advertising is Expected to Generate a CAGR of 55.
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1 Brazilian Mobile Advertising Services Market Application-to-peer SMS Advertising is Expected to Generate a CAGR of 55.5% until January 2015
2 Contents Section Slide Number Executive Summary 3 Market Overview 5 Market Trends and Analysis 11 Selected Business Cases 25 The Frost & Sullivan Story
3 Key Findings Increasing smart devices penetration in Brazil is driving retailers and venue owners investment in mobile advertising, and generating a greater expenditure in social network ads as a percentage of total digital ad spending. Operator-supported mobile advertising is very beneficial, as operators can leverage geolocation and Big Data analytics to a specific customer s device or according to customer profile (age, gender and cluster), thus providing greater accuracy for targeting ads at specific groups. The growth of content and multimedia services usage across different devices is also an important driver for digital advertisers to leverage the ad experience for particular audiences and show the right ad for the right person and in the right context. According to a survey conducted by Quanti with Brazilians, traditional means (e.g., and SMS) are still largely used by consumers to contact companies through smartphones rather than the use of applications. This is generating opportunities for mobile advertisers to invest in SMS advertising. The important participants in the Mobile Advertising Services Market in Brazil today are Zenvia, IMS (Internet Mobile Services) and Telefonica
4 Research Objectives, Scope and Methodology Objectives To present an analysis of the current state of the Brazilian mobile advertising services market. To comment on emerging trends of programmatic mobile ad buying and ad serving in Brazil. To present case studies of mobile advertising initiatives. Scope Geographic coverage: Brazil Base year: 2013 Monetary units: US dollars Research Methodology Primary research was conducted and secondary research includes the Frost & Sullivan online database, market participants websites, and third party research
5 Market Definitions Mobile Advertising: It is the process of describing or presenting a product, a service, an idea, or an organization through mobile communication channels to induce mobile subscribers to buy, interact, or support the item being advertised. The following are the main channels of mobile advertising: Messaging-based mobile advertising Mobile Internet-based display advertising Mobile video advertising In-application mobile advertising Performance-based mobile advertising Advertising in these mobile channels could be served by ad networks, ad exchanges, ad mediators, or publishers (with the help of white-label mobile advertising platforms). Direct Sales Mobile Advertising Model: Publishers have direct sale teams and sell to advertisers directly. Network Mobile Advertising Model: Ad networks selling directly
6 Market Definitions (continued) Programmatic Mobile Advertising Model: Based on establishing a dynamic, real-time bidding environment in which the buy side and the "sell side" (content owners and content publishers) establish the value of ad inventory based on parameters such as placement of the ad inventory, user demographics, location, time of day, and even the type of device in real time. In an exchange-based programmatic environment, the buy side allows real-time bidding for inventory by several potential buyers, which allows the buy side to sell inventory to the highest bidder (thus allowing for revenue maximization from mobile ads). Type of Competitors Mobile operators Advertising solution providers Ad optimization platform providers Third-party ad servers, real-time bidding platforms, demand side platforms, and other technologies are emerging or getting more popular in mobile
7 Mobile Advertising Objectives The core objective of mobile advertising is to help brands communicate with customers and prospects who are increasingly on the move. From a functional standpoint, mobile advertising addresses these strategic objectives and processes: Building the audience/inventory: creating a pool of mobile users, also known as the advertising inventory, who have opted in, which means they have agreed to receive mobile advertising in exchange for something of value. Value received is usually in the form of exclusive content, or special added value as part of a loyalty program. Engaging 24/7: making a brand in any vertical readily accessible to mobile users, any time, to provide information, close the sale, and execute a purchase transaction or any conversion (the brand s desired outcome). Engaging at point of sale (POS): engaging mobile users through methods such as mobile barcodes, and shopping apps. Closing the deal: finalizing the sale, or other conversion, and providing the means to do so either online or by enabling the mobile user to pay by swiping the smartphone at a payment scanner at the POS. Smartphone scanning is most often provided using near field communications (NFC)
8 Benefits of Operator-supported Mobile Advertising Find the right audience for ad campaigns Combine offline with mobile advertising to maximize ROI Determine true value of vendor contracts Advertisers and Ad Networks Measure the value and impact of sponsorship campaigns Improve sponsorship selection Achieve better sponsorship results by leveraging mobile location data Media Owners Benefits of Mobile Advertising Sponsors Determine true value of inventory Identify day-part traffic patterns and demographics Optimum matching of inventory to advertiser needs Retailers and Venue Owners Gather insights into subscriber movement patterns to deliver innovative offline ads Optimize digital signage campaigns for effective in venue advertising Measure impact of event pricing on audience attendance
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