When Google launched its AdSense network to push advertising to third-party websites, it already had a massively successful advertising business on Google.com.
Facebook hasn’t reached that point yet – so it makes sense that it has pulled back from testing third-party advertising to get the basic product right first. Read more
Consolidation in the mobile advertising market continues at breakneck pace. After Google’s proposed $750m acquisition of AdMob and Apple’s $275m bid for Quattro, Amobee is now buying RingRing Media of the UK for an unspecified – but probably much smaller – amount.
California-based Amobee said the deal would result in a combined company bigger than Quattro in terms of revenues and number of ads served each month. Analysts at IDC estimate Quattro has around $21m in mobile ad revenues, giving it around 7 per cent of the market. Both would still be dwarfed by the combined Google/Admob, which would have nearly a quarter of the market with revenues of $68m. Read more
Many predicted that mobile advertising would suffer in the downturn, as marketers looked to allocate shrinking budgets to more proven media.
But that hasn’t prevented the UK market from almost doubling in size last year, according to a report by PricewaterhouseCoopers for the Internet Advertising Bureau.
PwC’s Eva Berg-Winters said that growth of 99.2 per cent was greater than she had expected. “We have now passed the tipping point where things start moving in the mobile internet,” she said, adding that mobile was taking off faster than internet advertising did at a similar stage of its development in the late 1990s. Read more
The success of Yelp (which is very popular, if not profitable), has drawn attention to the local user-generated review site as a potentially viable business model. Indeed, with millions of small businesses looking for new customers (and presumably willing to advertise), accurate, comprehensive and trustworthy local directories are invaluable services for companies and customers alike.
So when Yelp introduced its London site in January, it signalled its intention to attract advertising from a chunk of the city’s 300,000 local businesses. Other similar sites were already active in London, and now one local competitor, TrustedPlaces, is trying to outflank Yelp before it gains traction. Read more