Archive for February, 2011

Mobile App Industry to Explode in 2011, according to Gartner

The Mobile App industry is forecasted to explode this year thanks to the rise of smartphone adoption. 76% of smartphone owners have downloaded an app to their phone at some stage, according to Accenture (in its report released in december “Retail Applications of Mobile”) – and this is a trend that nobody expects to slow anytime soon.

Research firm Gartner, in its report titled “Mobile Application Stores Worldwide 2008-2014”, predicts that worldwide mobile application store revenue will almost triple over the next 12 months, from $5.2 billion last year to $15.1 billion in 2011. It expects total app store downloads to double to nearly 18 billion. The majority of downloads will remain free. In fact, free downloads are forecast to account for 81% of total mobile application store downloads in 2011.

According to Gartner, app makers will be more dependent in the coming years upon advertising revenue and by the end of 2014, advertising will be generating approximately one third of their revenues generated by application stores, up from 16% 2010.

As this market is rapidly growing, we will likely see increased competition and new business models and new players. Watch this space…

Quality over quantity

As the head of ad operations & publisher solutions at Hi-Media UK, I say: “I fear for the future of any ad networks that do not work very hard to add genuine value at every turn in this ever-changing landscape”…

C.G.Campbell once said: “Quality isn’t something that can be argued into an article or promised into it. It must be put there. If it isn’t put there, the finest salesmanship in the world won’t act as a substitute.”

When thinking about some of the issues that are facing ad networks in 2011 this quote, written quite a long time prior to the invention of online trading, becomes exceptionally prescient.

In our opinion, quality is the watch-word for the industry. The correct attitude towards quality can be the making point or breaking point of the right type of representation for premium publishers and delivering successful campaigns for related advertising clients.

Too many ads these days are still being mindlessly chucked at space and automated by technology rather than having people that truly understand the content selling specifically to relevant advertisers who want to associate their products and/or services with the premium audiences that this content attracts.

If you ran a quality online publisher and invested heavily into the generation of premium content, which would you prefer to have representing you to the marketplace? For some websites with high volumes of user generated content and the inability to represent themselves this might be fine. Alongside this sits the ongoing issues with quality assurance that automated advertising continues to struggle with. The blocklists are never 100% adhered to and the resolutions are always retrospective.

However, I do believe that there will be clear split in the future and that once the supply and demand improves for these disintermediated solutions, the majority of display ad space will be bought and sold in a faceless manner via RTB to target specific audiences and/or content requirements. Beside this will sit the smaller premium end of market that will continue to require expert representation with specific experience and knowledge of the audiences and content that is being sold.

Digital is a unique medium as it gives brands unprecedented access and opportunity to truly engage and interact with a well-targeted consumer audience. These types of well-targeted opportunities must be managed properly and fetch a higher CPM as they offer genuine value to advertisers via targeted integration alongside sponsorship of educational/entertainment materials, which allow the advertisers to bring genuine value to a more receptive and valuable audience.

But will the majority of online publishers still need ad networks or sales houses to represent them in these two marketplaces? At the mass-market end it’s simply a resource issue and at the premium end it is experience and knowledge that counts. We at Hi-media work distinctly at the premium end with publishers that could try and do this on their own but quite simply do not have the required expertise, knowledge or contacts to do so – and I can’t see this changing. They want to keep creating quality content and improving their offerings and leave that to specialists like us.

This in turn empowers those publishers to fulfil their potential and ensure that they can afford to keep improving and developing websites that can benefit us all – thus also resulting in advertisers gaining access to niche finance sites sold by representatives that understand the audience and content. At the mass-market end of the scale however, this is simply not the case and it will simply be a question of resource v revenue – which is a problem that most publishers will start to solve internally quite quickly.

Therefore I would fear for the future of any ad networks that do not work very hard to add genuine value at every turn in this ever-changing landscape. They can no longer claim the position of high-priests interpreting the digital advertising oracle as technology has now advanced sufficiently to make everything more accessible to all publishers of all sizes – and rightly so.

Partnerships must be much fuller and more consultative, hence Hi-media’s more holistic approach, which includes the provision of online payment services, creative resource and development resource to provide a fuller service for publishers.

Hi-media Advertising rolls out Hi-media Video in Europe

Online media group Hi-media (Code ISIN FR0000075988 – HIM, HIM.FR), the European leader in monetizing the Internet audience, announces the launch of Hi-media Video in Europe.

Hi-media Video: exclusive online advertising video format

Following the launch of Hi-media Mobile last June, Hi-media Advertising continues to develop new services, the latest being Hi-media Video. This new offering gives European advertisers access to a wide range of high-impact formats geared to all types of communication:

- “In-Stream” (pre-roll, post-roll and overlay) functions to insert ad spots into website video content:
with over 60 million videos viewed each month in Europe1, Hi-media offers its advertisers a video network on websites concentrated mainly in the Entertainment and News verticals, including jeuxvideo.com, sbs6.nl, RTL.fr, universal-music.de, cinemaxx.de, zappinternet.com or football-league.co.uk.

- “In-Ad” functions programmable on IAB standard formats :
Hi-media network attracts 138 million unique users2 per month in Europe including audiences of leading websites such as LeBonCoin.fr, Meetic, Fun Radio or Auto Plus in France, The Independent in the United Kingdom, erdbeerlounge.de and Qype in Germany, alfemminile.com in Italy or Autoscout24 in Spain.

- Dedicated mobile video features (“in-banner” or “in-app”) offer, with an advertising inventory of over 100 million ad impressions3 a month. The Hi-media Mobile network encompasses a range of exclusive mobile Internet sites including RTL2, Rue89 and Foot365 in France, Shazam and Nimbuzz in Italy, DeTelegraaf and Vodafone Live in the Netherlands, or Netlog and Qype in Spain.

All Hi-media Press Releases

The 2010 Mobile Year in Review, according to ComScore

ComScore has just released the report titled “The comScore 2010 Mobile Year in Review” which provides key trends in the mobile landscape in 2010 throughout the U.S., Europe (UK, France, Italy, Spain, Germany) and Japan. The report highlights important components of the mobile market including smartphone adoption, browser/application usage and mobile content consumption.

Key findings highlighted in the report include:

• Smartphone adoption accelerated in both the U.S. and Europe. Spain leads all market with smartphone adoption of 38%.

• European Smartphone users are older than Americans.

• Mobile media consumption intensified in 2010 and is more common in the US than in Europe: 47% of mobile Americans accessed mobile media compared to 41% of Europeans.

• Application usage is closed to browser usage in Europe:
- 29% of Europeans browsed the mobile web in December 2010,
- … while application access reached 28% of Europeans.

• Top mobile activities vary across markets. For instance, European mobile subscribers were the heaviest texters (83%) while US mobile users were most likely to access socnets (24.7%).

To download some key findings underlined above, please click on the following link: Hi-media Blog ComScore The 2010 Mobile Year in Review

To download the complete report from ComScore “The comScore 2010 Mobile Year in Review”, please click on the following link: http://www.slideshare.net/himedia/com-score-2010-mobile-year-in-review-6920687

About 70% of all European Gamers Play Some Type of Casual Game

According to Newzoo’s National Gamers Surveys 2010, about 70% of all European gamers and about 90% of US gamers play casual games on a gaming portal, social network or mobile device.

On average, online casual game destinations reach two-thirds of the online audience. For instance, in the US, 66% of online users play casual games.

This study shows, as many reports, the impact of gaming on social networks and mobile devices on the total number of “casual” gamers. It also highlights a significant overlap between the individual platforms. Consumers choose their platform depending on time of day, location and social setting. People who play on all three platforms are becoming more numerous and are now about a third of all casual gamers.

For more info, please click on the following link: http://www.newzoo.com/ENG/1577-Casual_Gaming_(2010).html

Hi-media Payments: Allopass, compliant with all virtual currencies

A proprietary technology dedicated to the online video game market

Hi-media Payments, the leading ePayment business unit of Paris based Hi-media Group announced that it has launched a new Allopass script dedicated to virtual currencies.

Virtual currencies, a growing market!

Virtual currencies usage recently strongly grew on Asian, US and European gaming platforms. They allow these platforms to manage with high flexibility their community and to implement “freemium” business models which mix a free user experience and a premium part inside the game scenario.
This market, which already worth several billions of dollars worldwide, represents a huge market opportunity and Hi-media Payments intends to continue to accompany its clients in this specific segment.

A “plug and play” proprietary technology

Thanks to its new optimization algorithm, Allopass is now able to automatically generate the most accurate price points and method of payments in a given geographical area and targeted audience in order to optimize the purchase of virtual currencies on online gaming platforms.
Hi-media Payments also implemented a set of key performance indicators (KPIs) in its solution to enable the publishers to closely monitor the users gaming habits and thus optimize their client relationships.

  • Hi-media Payments will launch its VCS solution (Virtual Currency Script) during the Casual Connect Conference in Hamburg from 8th to 10th

Good news! A new means of payment to be launched in France!

http://blogs.lesechos.fr/by-les-echos/french-telecom-players-launch-e-payment-system-to-rival-paypal-a5055.html
The Hi Media Payments teams are thrilled at the idea of being in a position to distribute this solution to their clients in addition to the many other payment means the Allopass Platform offers in close on 80 countries.
France’s mobile telephone operators have decided to set up a common interoperable system along the lines of Internet+. The Internet+ system in France can be used to debit online purchases by Internet subscribers authenticated by their ISP. Buyster will offer the same service to mobile phone users authenticated by their operator. Just as Allopass has been making the Internet+ solution available to its clients over the past few years, now it will be able to roll out Buyster to clients.

Every launch of a new means of payment gives an added boost to the growth of the electronic payment market. We have seen this rule hold good since 2003: the more diversified and easy to use the means of payment on offer, the more Internet users consume and buy online.

iPad users prefer advertising rather than paid content (USA)

American research has shown that 86 percent of iPad users want to view advertising in order to receive content free of charge.

An investigation by Knowledge Networks indicates that they prefer to do this rather than pay for paid content. In practice, it appears that iPad users download around 24 apps, of which around a quarter are paid for .
The results were a surprise to Knowledge Networks because people assumed that iPad users liked to pay for content. The article also stated that the search feature is the most commonly used function on the iPad, with 97 percent of users in the investigation regularly using the Google search engine, while e-mail came a close second with 91 percent.
Of all respondents, 14 percent were prepared to pay extra for an app of a newspaper they already owned in printed form, while 12 percent stated that they wanted to pay a small fee. Only 1 percent was prepared to pay the same price for an iPad app as for a print edition of a magazine.

Source: Adformatie

KPN statistics: Netherlands switching to mobile internet

The Netherlands is experiencing a large-scale shift to mobile internet. The quarterly statistics of KPN show that forty percent of all subscription-holders have access to mobile internet. A third of KPN Netherlands’ turnover is currently generated by mobile internet and SMS.

This was highlighted in the quarterly statistics published by KPN this morning. Almost sixty percent of new subscription-holders buy a smart phone. All in all, this means four in ten KPN subscription-holders own a smart phone. This does not mean that all these customers also use mobile internet or send e-mails via the KPN network on a regular basis. However, in April 2010, market research company GfK calculated that approximately half of all smart phone owners actually did so. The other half use WiFi or only make phone calls or send SMSs.

Click here to read the full article.

Source: Emerce

Social Network Ad Spend will Reach $6 Billion Worldwide in 2011, according to eMarketer

In its report titled “Worldwide Social Network Ad Spending: 2011 Outlook” eMarketer forecasts global advertising spend across social networks will reach $5.97 billion in 2011 which represents a growth of 71.6% compared to 2010.

Social network advertising spending will account for 8.7% of total online ad spend in 2011.

US will represent the majority of spending accounting for 51.6% of the total.

Facebook will be the dominant social network and will receive 68% of worldwide social network ad spending this year. Indeed, Facebook ad revenues are expected to rise 118%, to reach $4billion in 2011.

To conclude, social network advertising is growing and is increasing their representation. “Major marketers are integrating social media into their overall marketing programs,” said Debra Aho Williamson, eMarketer principal analyst and author of this report. “As they do so, advertising in social destinations is becoming a more logical part of their plan.”