In the past few months we have seen some major moves in the mobile advertising industry by two of the biggest tech titans. In November Google acquired mobile ad network Admob for a reported $750-million in stock and in January Apple acquired another major mobile ad network Quattro wireless for close to $300-million. Now a Business Week article has been released stating that sources close to Steve Jobs say he is planning big things for Quattro. According to these source Mr. Jobs is planning to “revolutionize the mobile advertising industry”.
If any of you have used Admob before you will know that the majority of the ads that are served up on their network are pretty much replicas of traditional online banner ads and in most cases not well targeted and un-actionable. Mr. Jobs see’s this hole and knows the true powers of both mobile and more specifically the iPhone. Mobile advertising has the potential to be much more valuable than web based advertising both to end-users and brands. Instead of simply serving up two-dimensional banner ads that click to a mobile website, Jobs see’s the potential of utilizing the vast functionality of these smart phones to engage end-users.
Take this scenario for example. A user is checking their Yahoo Fantasy Sports app on the iPhone during Football Sunday. The phone knows which app is being used when and knows to serve up a Domino’s Pizza ad. The ad shows the latest deals from Domino’s and then lets the end-user make a call directly from the ad. The user is also then able to download a coupon from the ad directly into their phone’s photo gallery so that when the delivery boy arrives at the door they can redeem their discount. In cases like these the advertisement is adding loads of value to the end user and because they are so engaged the brand (Domino’s in this case) is happy.
Spreed believes in this methodology and is actively building these types of ads for our publishers’ advertising partners. In addition our ad platform has advanced targeting capabilities. Because we analyze every action that goes on within our apps we can begin profiling users and serving them the right ads at the right time.
These are very early days for the mobile advertising industry, however we believe, just like Steve Jobs, that this industry needs to go a lot further than simply pushing a random banner ad to an unknown end user.