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SAN FRANCISCO --(Business Wire)-- May 9, 2006
Mobile Game Market is Growing Rapidly with Purchases Soaring 53 Percent During Q1 2006, According to Telephia
Telephia's Game Publisher and Title Rankings Are the Standard for Accurate Measurement by Tracking Actual Behavior Directly from Consumer Bills.
Mobile game sales continue to show strong performance during the first quarter of 2006, with wireless consumers buying more than 8.2 million games on their phones in March, up 53 percent from 5.4 million in January 2006. The number of unique mobile game buyers also jumped significantly, surging 44 percent from nearly 3.5 million in January to five million in March.
Measuring Revenue Performance is Vital to Tracking Industry Health. The Telephia Mobile Game Report shows that EA Mobile, I-Play, Gameloft, Namco, Hands-On Mobile, Glu Mobile, THQ Wireless, Oasys Mobile, Sony Pictures Mobile, and Mobliss were the top 10 revenue generators, accounting for 75 percent of mobile game industry revenue.
"The true measure of performance for a publisher or a game title is the revenue it drives from purchases," said Kanishka Agarwal, Vice President of New Products, Telephia. "Measuring the industry's performance based on downloads alone is irresponsible and misleading, especially given the extent of free trials in this rapidly growing industry."
"During the first quarter of the year, nearly 12 percent of all game downloads were free, with extreme variability from one publisher to another. For example, 49 percent of Glu Mobile's downloads were free of charge, while Hands-On Mobile had less than one percent of its downloads for free," added Agarwal.
Accurate Title and Publisher Rankings Require Actual Purchase Behavior from Bills..Telephia is the only provider of detailed mobile content audience and revenue measurement directly from the bills of an opt-in panel of nearly 35,000 mobile consumers, which sets it apart from other market research firms. As part of the Telephia Audience Metrics product suite, the Mobile Game Report provides share of revenue, share of downloads, and demographic profiling by title, genre, publisher and carrier.
"Capturing actual purchase behavior from consumer bills is essential for accurate measurement," Agarwal said. "Publisher share based on survey claims of downloaded titles is very inaccurate due to limitations of survey respondent recall of details. For example, consider a game like Solitaire where there are 14 different titles from 9 different publishers in the marketplace. At best, survey respondents may be able to recall downloading Solitaire, but not the specific title or publisher. Hence, it is not possible to precisely assign a survey claim of a Solitaire download to a specific publisher, resulting in inexact publisher share numbers."
Telephia's Q1 2006 Mobile Game Report ranks Tetris (5.2%), Tetris Deluxe (3.6%), Bejeweled (2.6%), JAMDAT Mahjong (2.2%), and Ms. Pac-Man (2.0%) as the top five mobile game titles in terms of revenue share. Telephia is able to separate Tetris from Tetris Deluxe, two very different game titles priced very differently. Survey-based claims are unable to separate Tetris from Tetris Deluxe due to recall limitations.
For further information on the Mobile Game Report or other Telephia mobile content products, please contact Jerry Rocha, Director of Mobile Content at 415-513-5894 or jrocha@telephia.com.
About Telephia. Founded in 1998, Telephia provides syndicated performance measurement information to the leaders of the converging communications and mobile industries, including carriers, device manufacturers, content and application providers, retailers, infrastructure vendors and investment analysts. Telephia is the industry standard measure of subscriber share, customer satisfaction, device share, network quality, revenue share, advertising effectiveness, content audience and many other key performance indicators. For further information, please visit our website at www.telephia.com or call 415-395-0500.
March 16, 2006 SAN FRANCISCO & LONDON Business Wire
"2006 Will Be the Year of Mobile Advertising Experimentation" says visiongain Report
As advertisers and operators seek out the best business model, 2006 will be a year of experimentation for the emerging mobile advertising market. The next five years will see a shift by major brands from simple SMS mobile marketing to more sophisticated multimedia advertising. By 2007, brands will know what works, and mobile advertising will become mainstream by 2008. These are some of the key findings from visiongain's new report, entitled "Mobile advertising and marketing: Market analysis and forecasts 2006-2011".
From 2005, when the nascent market garnered $255 million in Europe and the United States, mobile marketing and advertising in these two geographical areas will grow to exceed $1 billion in 2009, according to visiongain.
The increasing availability of multimedia content is opening a large opportunity for sophisticated forms of mobile advertising. As content that already incorporates advertising - like live TV programming - makes its way to mobile handsets, brands and entertainment content providers are beginning to see the value of presenting full multimedia ads with programs.
Players across the value chain are developing their strategies and positioning themselves in this space. Operators in the U.S. and Western Europe are currently either testing various forms of advertising with 3G services or are allowing ads to be served on their portals. A number of multimedia companies will launch advertising in 2006 within their multimedia offering. Furthermore, the entry of large online search engines into the mobile world opens up new advertising opportunities in the shape of context-based mobile search.
"The mobile phone is a very personal device that most people carry with them 24 hours a day. It affords advertisers an opportunity to present very targeted and time-sensitive information that is of interest to the user. That is a key advantage. With customer permission, advertisers can collect valuable demographic and behavioural information to hone the marketing message," says visiongain analyst and the report's lead author Marcia Kaplan.
"3G technology enables the delivery of richer content to mobile phone users, but there is a limit to how many additional charges and subscriptions mobile phone users will accept. At some point, content will have to be sponsored or partially subsidised by advertising. We are also seeing the emergence of ad-subsidised MVNOs, which plan to offer free airtime in exchange for targeted advertising to subscribers," adds Kaplan.
The report notes that certain elements need to fall into place before mobile advertising can establish itself as a viable medium. Issues to be resolved include business models and revenue share, the type, length and frequency of ads, consumer attitudes and many others. Operators will have to walk a fine line between maximising the revenue potential of advertising, while at the same time not risk alienating subscribers and increasing churn by doing so.
Based on interviews with key market participants, including operators, vendors, media agencies, software application providers, access providers, marketing specialists, and trade association representatives, this 170+ page report analyses the market drivers and barriers affecting mobile advertising and marketing. It discusses the main market trends and charts the market evolution in the US and Europe. The report examines mobile advertising opportunities presented by MMS, video, TV, LBS, as well as contextual advertising. Regional forecasts are provided up to the year 2011.
April 17, 2006 - GAMASUTRA, by Simon Carless
Analyst: In-Game Ads To $732 Million By 2010
According to a new report published by analysts the Yankee Group, in-game advertising could surge in size to around $732 million by the year 2010, up from just $56 million in 2005 and $22 million in 2004, as companies begin to target in-game worlds for static and video commercials.
Yankee Group senior analyst Michael Goodman commented of the report and his view on trends: "Although the in-game advertising market is still relatively untapped, its promising business model will lead to swift market development. Effectively competing in the interactive gaming market for the video game and advertising communities requires careful attention to the intricacies of the industry."
Interestingly, a recent survey from MarketingSherpa referencing in-game ads showed that…in-game advertising gained the biggest response, with 36% of respondents saying they intend to do placement within the games, showing that the market is gaining significant interest.
January 14, 2006 - The In-Game Advertising Business set to grow into a $3bn
(The Economic Times - Via Thomson Dialog NewsEdge): You've got to believe this - gamers actually enjoy advertising in game play and this is why in-game advertising is becoming popular by the day. In fact, industry experts feel that the real-time in-game advertising business is set to grow into a $3-billion-plus global market by 2010.
According to a study to gauge the 'effectiveness of in-game advertising that incorporates different levels of product integration', by global research company, Nielsen Entertainment, gamers actually enjoy in-game advertising. And even though in-game advertising has a long way to go before competing with other media, advertisers are expected to net a whopping $562 million into the market globally by 2009, according to industry estimates.
US-based Massive Inc, the leading video game advertising network, says that in-game advertising provides a meaningful new revenue stream by tapping into the $19 billion that advertisers spend each year to reach the 20 million men between the ages of 18 and 34, who are increasingly turning to Xboxes and PlayStations than watching prime-time television globally.
The spectrum of brands adopting in-game advertising includes auto manufacturers, sports goods, consumer electronics, and soda brands, luxury brands like Tag Heuer and Lacoste and the repertoire will only swell. According to Grant Johnson, VP at Nielsen Interactive, Advertisers are increasingly concerned about losing high potential consumers to emerging forms of entertainment.
We've demonstrated via our research at Nielsen Interactive that young men are gravitating more to video games and that this is naturally affecting the amount of time they spend consuming other, more traditional media such as TV. Hence, we are seeing growing demand among advertisers who target young consumers to leverage games to reach and influence potential buyers.
Unlike static ads which are burnt into the game's code, real time ads are dynamic and are incorporated into the story line of the game. I definitely wouldn't want to see Mario gulping a Mountain Dew for a powerup. But, I don't mind in-game advertising, as long as it gives more of a real life feel to certain games, says an ardent gamer on his blog.
Game developers believe that rates for dynamic ads will eventually be similar to those now seen in the cable television market. And with the costs of game development rising by the day, companies are looking for ways to make in-game advertising better, stronger, faster than it was before.
Says Salil Bhargava, chief marketing officer of Mumbai-based Paradox Studios, which has done several 'mobile advergaming' projects for companies like Coca-Cola India and KPS films: In-game advertising in India is still in elementary stages, but it offers publishers new revenue opportunities. If done properly, it creates added realism that can actually enhance game play. We are also working on delivering ads on the fly.
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