Indian Mobile Advertisement - Opportunity for Disruptive Innovation Player

This article is in continuation to my earlier article " Indian Mobile Advertisement - ShootingBlindly". In my point of view, it is important to know the problem before identifying the opportunity out of it. In my previous article, I categorically pointed out that how blind communications channel impacted the advertisement dearly both in adoption, usages and return on investment.

Still the segment is not fully evolved wherein End users are offered advertisement as per their needs. There are few companies who tried to execute the location based targeting based on the contextual behavioral pattern of the user but they failed to yield any result. The continuous struggle by the Advertisement sector prompted advertisers to change their model and started focusing on retention and Return on Investments. The move is going to impact Incent wall players in coming months while companies engaged in innovation which comprises of Indian regulation would be able to come up with disruptive model as it will help them to identify the end user for today or tomorrow. In my point of view, Even big advertisement giant from all geography missed that part in big way. Article can be considered as indicator where innovator may choose to think. If anyone want more information are free to ping me anytime.

Indian Mobile Advertisement Player - Shooting Blindly

The Smartphone adoption and subsequent flood of startup's with mobility centric focus changed the dynamics of Advertisement market place. Few years back all brand were focusing on print or TV media whereas in current environment mobile advertisement segment is attracting investment as well as attention from the startup focusing on Mobile Application reaching out to Advertisement Network to acquire additional userbase to justify the investment they received from the investor as well as asking for further investment by showing growing Daily Active User's.

The double digit growth in Smartphone also prompted Ad Networks to enhance their platform to ensure that they deliver the number what Mobile Application providers are asking for. Most of the Ad Network made the fortune in the last 4 years and many new player jumped in to milk out easy revenue stream. The rush by the Application developer flushed in with funding helped the ecosystem grow faster than Industry but completely missed the attached innovation required to serve the end consumer as per their need as well as to acquire quality user with higher retention percentage. 

The Mobile Advertisement sector innovated unique mechanism to incentivize end consumer to get the download wherein tried to reduce the Cost of user acquisition for Application provider. Most of the incent wall offer recharge on he data and voice side but they don't tell end user that at the end they need to pay for  the data. In that scenario, end mobile user is paying more than what they are getting as return from these incent wall. On a contrary, The incent wall offer application listing to end consumer without knowing anything about it. I am writing the above as I have done extensive research on the pain point of end consumer what is being enforced onto end consumer. If one ask Mobile Advertisement company about it then they say that end user can block this by choosing disable advertisement which is generally placed in Non Incent wall.

The Indian Mobile Advertisement companies as well as Application Developer must move to next level of innovation by offering options to end consumer only post knowing end consumer.

Mobile Internet Ad Revenue – Another Revenue Spinning Machine for Google and Facebook

Google successful endeavour to take on Symbian and Blackberry with its open Android Mobile OS is showing new revenue trend. Post pioneering and dominating search engine market, Google attracted many partner in its attempt to redefine mobility landscape. The open Android environment and strong developer community helped Google to tag in its other assets such as Adsense for Mobile to enable advertiser reach out to mobility user in more effective manner with higher conversion rate probability for its advertisers. According to eMarketer report, For FY12,Google captured 52.36% of total market size of $8.8. The growth probability filled market share came at 5.35%. According to report, FB is expected to quadruple its Net Mobile Internet Revenue to more than $2Bn in FY 13 and Google revenue may reach to$ 8.85 Bn. Report indicates that Google acquisition and product positioning worked whereas Microsoft failed in that segment. During early phase of Android environment launched, Analysts had their reservation around it and tireless effort of Google and its partner enabled Android ecosystem as second mechanism to Mobile Internet Ad platform. It would be interesting to observe next move by Yahoo- Microsoft combo.

Unsolicited Commercial Communications Regulation in India– Trigger for Mobile Based Advertisement

The online advertisement spend by advertisers are reached INR 2260 Cr ending March 2013. The market size is too low. The advertiser’s prefer to opt for telemarketing and promotional SMS to reach out to Mobility user compared to application based mobile advertisement on mobile. The Applications ecosystem in India is not matured enough to offer hidden potential of device centric and application hosted mobile advertisement due to number of reasons such as backend delivery, Contextual capture, mobile e-Commerce mechanism. The lack of technology supported triggered advertisers to choose telemarketing and promotional SMS to offer product awareness drive through the mentioned media. In order to keep the cost low and offer better value proposition, many telemarketing and bulk advertisement providers decided to choose short cuts to capture market share. The move turned out to be risk for consumer privacy, content security. Post multiple regulatory directives, regulators failed to stop pesky telemarketing calls and SMS by telemarketing companies. In order to control unaccounted billions of message routing through illegal mechanism prompted regulators to put the onus on Wireless operators to enhance their network to eradicate or control revenue leakage which is impacting whole ecosystem player. Post few high voltage meetings and directives, it is observed that many companies indulged in Mobile Marketing using Telemarketing and SMS experienced drastic fall in their order flow and business. Any positive impact of unsolicited commercial communication regulation would force advertisers to find another medium to reach out to consumer base. With the growing adoption of Application among Indian medium to high end smartphone users, Mobile marketing business is going to be redirected to Mobile advertisement based marketing. In my earlier post, I mentioned about Mobile based advertisement market size of INR 230 Cr but I can see that $ Bn’s opportunity is waiting for the smart companies to capture.

Mobile and Tablet Based Advertisement Command 10% of Total Online Ad Market in India

The Internet and Mobile Association of India (IAMAI) and IMRB International report indicate shift in online advertisement segment. The different media components of online advertisement are search, display, mobile, social media, email, video. Indian Online advertisement market by March 2013 reached INR 2260 clocking 29% YoY growth. The growing online advertisement destination is mobile and tablet. The segment ad market spends reached 230Cr clocking 88% YoY growth. It is expected that mobile and tablet based mobile ad space is going to observe major upward spend by advertiser in next few years. Given the Indian economic size and generally FMCG, Telecom, Real Estate, BFSI sectors are considered big advertisers indicate revenue leakage in the space. Stay tuned for my upcoming post which will highlight how mobile advertisement segment can generate more revenue than print and newspaper segment