Debunking two US myths
The two are interrelated. First, let’s look at the market.
During my recent trip to the
Over the years, the general perception is that the
While it is true that the American market is larger and therefore you’d expect higher numbers, there is a scaling factor on US traffic which means that it punches above its weight. There are four times as many people using the web from their phones to find news and information (Source: M:Metrics) but these US publishers are often generating over 1m page views per day. Their
What are the differences which explain this result. Brainstorm mode here:
- Pricing. All you can eat bundles are prevalent in the
- The use of the browser is much more ingrained in the
- The persisting skew in the
- A more open market in the US where the operators already command far less market share in internet browsing
- More devices with big screens: BlackBerry, Treo and now the iPhone.
Whatever the causes, the fact is that a number of publishers have cracked the mobile web (as they call it) and are looking for more innovative ways to further grow their traffic. BTW, this is where Mippin plays a role for these more advanced players by acting as another distribution channel – and one which is free to use, enables branding and monetisation.
So, onto the second issue:
Their only frustration is the inability to be able to monetise this traffic. It stands to reason that if you have a lot more inventory that you have a job to do to sell that inventory to achieve a decent sellthrough (the amount of ads served as a percentage of your inventory).
However, it is deeper than greater supply. There is a structural issue in the advertising market in the
For these smaller players a deal of £2,000 is a big deal and they are willing to fight to get it. In the US, such players are few and far between leaving the market dominated by the larger online agencies. For these players the extra effort required to understand mobile coupled with the smaller deal sizes - compared to online - means that it is always more convenient to place money in online rather than mobile.
It is not all bad news. There is a sense within the industry that mobile is now on the agenda as a channel – it is playing a part, being considered, in the high level planning.
And, this is a real advance.
That said, do not expect there to be a turnaround in the short term. An unstable financial system and the prevailing gloom in NY (the centre of the advertising industry in the