March 3, 2010
First two months of 2010 see huge pick-up in mobile transactions
We recently wrote about how we expected mobile advertising and marketing M&A to pick up in 2010 and we have definitely seen that over the first two months of the year (click here to read our previous post). As of March 2, there are already more announced mobile marketing acquisitions than in all of 2009, according to the Updata database.
The most recent transaction came on March 1 when mobile ad network Mobclix announced its acquisition of HeartBeat, a SaaS platform that helps iPhone app developers manage and access sales and other data. Others have included Millenial Media’s acquisition of TapMetrics and the headline-catching acquisitions of AdMarvel by Opera Software and Quattro Wireless by Apple.
Some companies even are deciding to refocus their businesses around the $2.6 billion mobile marketing industry. At the beginning of February, mobile marketer SinglePoint spun off its mobile messaging business to Ericsson to focus solely on SMS advertising. One week later, SinglePoint acquired India-based M2Junction, a text-messaging mobile advertising platform provider, to strengthen its position globally.
As the Internet, mobile and social begin morphing into one unstoppable creature, M&A that overlaps all three will continue to increase. We expect to see more interesting combinations and M&A announcements throughout the remainder of the year.
Selected Mobile Marketing Transactions, 2010
(click chart to enlarge)
May 30, 2008
And M&A Opportunities Will Follow
Mobile marketing is shaping up to be one of the most exciting Internet growth segments, creating significant investing and M&A opportunities in coming years while driving major changes in ad spending and campaign planning.
The iPhone’s phenomenal success (iPhone users now drive more than one out of every thousand web page views) highlights mobile Internet’s growth potential, which until now has been held back by bandwidth and user interface limitations and not by lack of consumer interest. As a recent study by research firm iSuppli found, iPhone users spend only 47% of their time actually placing calls, compared to 71% for other cell phones. Data from Forrester Research shows that 20% of consumers describe their cell phone as a device that they could not live without. Uses include accessing the Internet, emailing, watching video, playing games, IMing with friends, and much more.
All this mobile activity has not been lost on advertisers. Online research firm eMarketer expects worldwide mobile marketing and advertising spend to reach $19 billion by 2012, which is about seven times its 2007 level. During this time, non-mobile paid online search spending will “only” about double.
The way the mobile advertising market is shaping up, the rise of promising new vendors and technologies is sure to follow. There is a multitude of companies to watch in this space. A few include mobile media delivery company 4INFO; ion interactive that, among other things, creates landing pages that are iPhone-optimized; and Cellit that offers both pre-packaged and custom mobile marketing solutions to both SMBs and large enterprises.