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Understanding The Business Model for Mobile Advertising

business_model.gifMobile advertising is a relatively new industry, and understanding the business implications behind it can be crucial. Jinny Software – a provider of personalised messaging and media processing solutions – has authored a whitepaper which provides an interesting analysis of the business of mobile advertising.

This paper asserts that much of the reduced revenues expected by mobile operators is due to regulation, not deregulation, and suggests that mobile advertising can be an important additional revenue source for operators. The paper then goes on to develop a full model of the revenues and margins that could be expected from implementing a mobile advertising solution.

The conclusion is that – given certain assumptions – an operator might reasonably expect an increase in ARPU of 5% up to 20%.

Of course much of the result depends on the assumptions used, but overall models like this are very useful to look at and are widely employed in the software business to understand the implications of bringing new platform and services online. They are not that easy to put together correctly, and it is good that Jinny is willing to share this sort of analysis with the industry.





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14.10.2008    Tags: ,
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