This week I interviewed my good friend Earl Lum
, as he just released a report on one of the hottest topics in mobile – Mobile Advertising. If you know Earl, you know this report is a must have for anyone currently in mobile advertising, or thinking of being. And why wouldn’t you – it’s set to grow to USD $9.5 Billion by 2011. Earl has a way of doggedly digging for research and finding information that just makes everyone else scratch their heads wondering how he found all the detailed data. And of course with data, come good analysis. I tried doing research and analysis myself once, but just didn’t have the patience, so I fully appreciate the time and effort a report like this takes.
Here’s my interview with Earl Lum
the founder and President of EJL Wireless Research
in regards to his findings in this just release report titled ‘Global Mobile Advertising Market Analysis 2006-2011, 1st Edition,
’”1. Why did you set out to do a report on mobile advertising? I thought you were a base station guy?
Mobile infrastructure equipment analysis (i.e. the base station and PTP mmwave markets) is only one part of EJL Wireless Research’s focus on the wireless ecosystem. Mobile content is another large part of the company’s focus and we started that earlier this year with our first mobile games market analysis and mobile advertising was natural fit due to the software and hardware requirements. Also the size of the mark and potential did have a factor in analyzing the market. Another was dispelling the hype around this industry due to the excitement at CTIA earlier this year. EJL Wireless Research has been known for providing an industry reality check for our clients with its leading research and analysis.2. So what’s the big story you found?
Well, like all hype, there is some good embedded in much chaos that will require a significant change to the industry in order for the market to really take off. The reality is that there are too many players in it today and too many jumping on the bandwagon. Many will fail, some will consolidate and a few select may make it to the finish line for an M&A transaction or even the coveted IPO exit.3. What am I going to find in this report that I won’t find elsewhere?
I think what you wont find is hype. We are presenting a harsh reality check from technology to social barriers that currently exist. Don’t get me wrong, like others, I also believe that the market may be billions but significant barriers need to be scaled over for the market to move forward. You are also going to see our list of winners and losers in the market.4. Did you find any regional or country differences of note?A.
Yes but I can’t reveal more that the fact the United States is not the center of the universe.5. Any inkling into consumer backlash to this? Aren’t we inundated enough already by advertising?
You have hit the a sensitive nerve with this question. The mobile phone is the ultimate advertising portal and one of the most personal and private items a consumer owns. There may be tremendous backlash if things are done incorrectly. Hence the huge market risks for all players going forward if a select few screw it up for everyone. Remember Jamba/Jamster? They probably single handedly set back the mobile content industry by about 3 years with their deceptive marketing practices.6. What’s your advice to someone already in the mobile advertising space?A.
It not the same as the online market. How do you REALLY differentiate yourself from everyone who is trying to do the same thing? If you are a startup, your only viable bet may be an M&A exit. Look at the AOL purchase of Third Screen Media. Also we found that mobile couponing is going to be big – up to 42% of the market.7. How about advice for a company that wants to implement a mobile advertising campaign – how do they get started?
A. If they are a brand and want to diversify their traditional media and online media to wireless, then they need to find the right partners in the regions around the world to setup the campaign correctly. What technology should they use? SMS? TV/video? Bluetooth? They also need to be realistic on the upfront click through rates and potential reach and redemption rates and ultimately, product lift rates from the ad campaign.
You can find out more about EJL’s Wireless Report by contacting Earl directly at firstname.lastname@example.org
. Tell him Caroline sent you for a special WIP rate.