The mobile advertising industry is barely off of its training wheels, but market information is clearly presenting how much potential there is to make profits. While true, if one market has had unpredictable growth it has been mobile advertising, and this is in part due to the sheer diversity and complexity of mobile technology and mobile advertising technology, and the competition from other media markets. This hasn’t stopped many companies from making the most of the general upward trend — let’s take a look at 3 mobile advertising companies that are making the most of this growing market.
But Aren’t These Companies Losing Money?
The fact is that both Augme and Amobee have yet to reach profitability, and while at first glance this would appear a cause for concern, it really isn’t. The market is young and many advertising companies are still finding their feet, and despite operating losses, the attention these companies are getting (such as the recent acquisition of Amobee) show that the future is bright. Losses in these companies are also mainly due to the costs of rapid expansion, which will be good in the long term, and good for the tech job market in the short term.
Founded in 2005, the mobile advertising tech firm Amobee is a market leader, with proprietary technology supporting advert content delivery across all mobile platforms. As if to reinforce their market-leading status, Amobee recently won an award for the best “mobile marketing & advertising agency of the year”. The Singapore telecommunications giant SingTel acquired Amobee in March of this year, purchasing the company at over 10 times operating revenue. They have also recently partnered with AccuWeather, the leading global weather information service, so we can definitely expect more good things to come.
Augme Technologies have recently announced their first quarter revenue report, and the signs are looking very good. A 2012 Q1 total revenue of $51.8 million presents a 75% growth in comparison to 2011 Q1 results, with growth (albeit less) reported for mobile advertising and mobile marketing. Mobile Marketer awarded them with “Mobile Service Provider of the Year” and their subsidiary Hipcricket was named “Mobile Marketing & Advertising Agency of the Year” along with 2 other companies, a considerable feat given that there were 600 entrants in total.
Airpush is an Android based advertising service which comes bundled with a variety of free Android apps. It is responsible for ‘pushing’ advertisements into the notification space at the top of the screen, and you know it is Airpush when you see a red star icon with the advert.
The bare bones of the company’s operation is nothing new, but what makes this company one to watch is the staggering increase in performance they have gained despite the company only being 15 months old. In a recent advertisement network study by AppBrain, Airpush were placed at number 2 for advertising performance. The reasons?Airpush state that it is firstly the correct timing of adverts to make the most of times when users are most open to discover new things. Secondly is precise consumer targeting by use of locations, interests and demographics. Thirdly is transparency and user-friendliness, with features such as an opt-out scheme. You might not like spam advertisement services, but they are certainly lucrative, and certainly here to stay.