Mobile Advertsing: Velti revenue up on Telefonica deal
An interesting article in Reuters today about Velti made me take a closer look at the company and create a quick SWOT analysis (see below).
Highlights:
1. Velti H1 revenue is over EUR 20 million
2. Velti’s purchase of AdInfuse is deemed positive
3. Velti signed a multi-million dollar deal with Telefonica in Mexico. It will now use the Velti mobile marketing platform.
With the above information in mind, I decided to give the company another look. I remember a couple of years ago I was asked by a woman called Clare Grant to check out Velti as it was going to be huge in mobile - but haven’t heard much since (apart from AdInfuse purchase).
So, I just had a good look at the Velti site and have come to some conclusions. Velti is basically like WIN PLC. I know WIN as it a sponsor of GoMo News but I didn’t realise that Velti was the same kind of service provider. Velti started off in the portals and SMS field and, just like WIN, mobile marketing and advertising needs are sprouting out from early adoption.
So the win with Telefonica is big business for Velti, as it cements its new arm in advertising. It has demonstrated success in Portals, Mobile Web and SMS but advertising is the latest sibling.
Velti Mobile Advertising SWOT Analysis
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Strengths |
Weaknesses |
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Velti is in profit during a recession
Velti has made a strategic purchase of AdInfuse
Velti has signed a huge $$$ deal with Telefonica in Mexico giving it legs outside of Europe |
Velti is one of many mobile platform players hungry for a slice of the mobile marketing pie
Once you are in one operator it is difficult to win competitor platform business in the same country.
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Opportunities |
Threats |
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Velti has opportunities to up-sell its mobile marketing solutions with its portal provider customers
Velti can now offer in-mobile application ads to its suite of products which is vital as applications become the new meat of the mobile advertising industry |
Out There Media is a small and dynamic Greek mobile advertising company also fighting for the same clients in Velti’s home town. Having met the women in charge of Out There Media I would be scared if I was Velti - as they have a solid game plan.
In fact competition is so fierce at the moment that operators looking at their own solutions (E-Plus and Alcatel-Lucent) might become an even bigger thread moving forward. |
Some examples of Velti clients and results
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Brand |
Results |
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BabyCenter |
The mobile campaign was launched in August 2007 and is still active. It had a strong month on month growth rate of 250% in the first 6 months and only a 9% drop out rate.
38% of Babycentre newsletter subscribers registered for mobile alerts and 46% of subscribers would recommend the service to a friend. |
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Cosmote |
Using technologies provided by Velti, Cosmote is able to design and deliver the My View Portal, they are also able to manage inventory, monitor and report on usage.
MyView became an instant hit amongst the Greek WAP portals with 5% participation during the first 2 months after its launch, and it is expected to reach 42% by the end of 2009. |
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Wind |
Working with Velti, WIND were able to deliver the following WAP portal features:
WIND Plus was an immediate success with hundreds of thousands of users and a 35% penetration rate during the first 6 months after its launch becoming instantly one of the most popular WAP portals in the market.
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You left out that the started a JV with IPG called Ansible in the US. a JV in China called Casee and a JV in India with the HT Times!