mobiThinking guide to mobile advertising networks (2010)

Welcome to the mobiThinking guide to mobile advertising networks 2010 – with four new profiles of major networks. This is the only place advertisers and publishers can get the real and detailed information required when choosing a network. All data is supplied directly by the networks.

The announcement of Google’s plan to buy AdMob and then Apple's acquisition of Quattro Wireless and announcement of the iAd advertising platform, has sparked a frenzy of interest in mobile ad networks. This is great because the wider world has woken up to the vital role that ad networks play in connecting mobile marketers with mobile publishers. Unfortunately the media hype has led to a lot of misinformation about ad networks.

If you're new to mobile ad networks, perhaps start with this step-by-step primer on picking a mobile ad network. Put the networks head-to-head on questions that matter to most to you:
What’s the best mobile ad network for you? 10 more important questions than: what’s the biggest?

Three facts you need to know about mobile ad networks:

1. No ad network is dominant.
   This is still a very fragmented market. There are at least 10 mobile ad networks in the US alone.
2. No one really knows what ad network is biggest.
   The only way to tell is by revenue and no network reveals revenue data (except maybe to the FTC?). Any figures you read about market share or revenue are estimates, if not pure guesswork. And as we all know, size isn’t everything…
3. Mobile ad networks are not created alike.
   In fact you are unlikely to find two networks alike. Choose a partner (or a number of partners) that suits your requirements, target market, geography and budget.

MobiThinking divides networks into three categories, based on the business model. At one extreme there are blind networks (see definitions below), which mostly work on cost-per-click (CPC) basis; at the other extreme are those networks that focus on premium publishers, which mostly work on cost-per-thousand impressions, and then there are those in between. Clearly there is some overlap.

The mobile ad networks (click on each network to read profile)

SECTION 1: BLIND NETWORKS

• AdMob
• Admoda/Adultmoda
• BuzzCity
• InMobi * Updated: May 2010 *

SECTION 2: PREMIUM BLIND NETWORKS

• Jumptap * Updated: May 2010 *
• Madhouse
• Millennial Media
• Quattro Wireless

What are blind, premium blind or premium networks? For the uninitiated, the following will also be an introduction to the commonly used jargon and acronyms…

Blind networks are usually the largest in terms of publishers, advertisers and impressions. They serve a high volume of advertising to an extensive base of mostly independent mobile publishers (mobile sites and applications), supplemented by premium publishers’ unfilled inventory.
They offer plenty of options for targeting such as by country and content channels (news, sports etc), but do not (usually) allow advertisers to choose specific Websites.
Performance advertising is the norm, paid for by cost per click (CPC) – this is for marketers who want an active response to their ads such as clicking through a banner to the advertiser’s site, click to download/call etc. The CPC varies with supply and demand, determined through a self-service auction system. The cheapest option is run of network (RON) adverts (i.e. no targeting), which in some countries may start at US$0.01 CPC.
Some blind networks also offer brand advertising, on a cost per thousand impressions (CPM) model – i.e. you pay X for every 1,000 devices that visit/download the page – this is for marketers that want exposure, perhaps to create awareness of a new product.
Advertisers should expect a wealth of self-service tools that help you track and optimize your campaign in real time.
Publishers receive a revenue share, perhaps 55-65 percent of what the advertiser pays.
Read the profiles of: Admoda/Adultmoda; AdMob; BuzzCity; InMobi

Premium blind networks tend to be medium-sized, with a higher proportion of premium publishers (i.e. big-traffic mobile sites of well-known brands, perhaps newspapers, broadcasters or operator portals), some on exclusive relationships. These networks attract a higher proportion of brand advertising, paid for on CPM basis. A lot of advertising will still be blind or semi-blind (i.e. targeted at a channel), but for a premium price you may be able to buy a specific spot on a site of your choice. Costs vary considerably – quotes can be as high as US$20 CPM.
Performance advertising is also available – and in some cases, search advertising (based on key words) – paid for by CPC. Some networks offer cost per action/acquisition (CPA) – where the advertiser only pays if the customer clicks through and then buys, signs up etc.
Advertisers should expect a mix of self-service and direct sales and support and lots of targeting options.
Read the profiles of: Millennial Media; Jumptap; Madhouse; Quattro Wireless.

Premium networks focus on a limited number of prestige publishers – mobile operators and big-name destinations – for which they are akin to an extension of their direct-sales team. In the case of Nokia and AOL, much of the mobile inventory they sell is on Nokia or AOL sites.
The predominant (maybe only) pricing model is CPM, as the majority of campaigns are brand advertising.
Premium networks attract big brand advertisers who are prepared to pay premium prices to secure the prime locations on top-tier mobile destinations. This means CPM will vary wildly from US$5-US$75.
Advertisers should expect more direct sales and support, than self-service and a wealth of targeting options.
Publishers should expect to receive a majority share of advertising revenue, perhaps 50–70 percent. Deals are usually negotiated on a case-by-case basis.
Read the profiles of: Microsoft Mobile Advertising; YOC Group; Advertising.com/AOL; Nokia Interactive Advertising; Pudding Media.