Yesterday was a hell of a day for mobile news. Google finally confirmed that, yes, the Nexus One is real and we can buy one soon – but Apple did it’s level best to draw attention away from Google by announcing it intended to buy it’s own mobile advertising company (see our report here). This has caused a flurry of comments from all corners, and here at GoMo we were contacted by mobile advertising executives who wanted us to know what they thought about it. Read on to see the industry opinion on this important deal.
Paran Johar, CMO of Jumptap
“If there is any doubt that 2010 is the year of Mobile Advertising, Apple just cleared up any speculation. Apple’s acquisition of Quattro is for two main reasons: first, to have a mechanism to monetize free apps with the Quattro sales force and secondly to capture a share of the growing mobile advertising media spend. The fact that both of these organizations decided to buy versus build illustrates the unique characteristics that mobile advertising affords.
It is abundantly clear that Apple is now in the media business and will be competing head to head with Google. The mobile advertising ecosystem is unique in the sense that it is so personal and can tie so many other pieces of media together. Whether complimenting TV, out of home, or print, many other non endemic advertising companies see the enormous potential.
Zohar Levkovitz, Founder and CEO of Amobee
“Like the recent Google and Admob marriage, Apple’s acquisition of Quattro not only further reinforces that the mobile advertising industry is here to stay, but it is poised to be a lucrative venture. It is great to see our partners AdMob and now Quattro acquired by the giants who will clearly resource for further investment in mobile advertising in applications. At Amobee, our focus remains as an unbiased leader focused on the premium supply of our Operator partners and innovating in areas to lubricate increased ad spend from brand and performance advertisers.”
Anne Frisbie, Head of North Americas, InMobi, claimed the real battle is not between iPhone and Android, but to see who will win the mobile advertising race. “The global mobile advertising race is wide open. Everyone in the U.S. is focused on an Android vs. iPhone battle, but Nokia, RIM and Microsoft are main contenders on the global playground as evidenced by our data in over 125 countries.”
What we think?
Unsurprisingly, the mobile advertising companies are heralding this as a great move and are focusing on the continuing uphill battle for mobile advertisers rather than “device wars”. Ok, so it’s easy to say “well of course they’d say that.” But they do have a very good point: mobile devices have a hard fight ahead of them to stay relevant. Now, I don’t meant that mobile devices themselves will become irrelevant. I mean that as the functions of the smartphone become perfected, different devices trend toward becoming virtually identical. Visually the Nexus One is pretty much the same as the iPhone. Largely, they perform the same functions – the differences between the two are things that only mobile phone fans and gadget lovers would really be interested in. And that’s not a truly huge audience. There is a much larger audience out there, which is the truly staggering number of people who own mobile devices in general. Mobile advertising can (and will) affect every single person who owns a mobile device – and that’s where the real money is.