Tag: mobile advertising

The largest smartphone manufacturer in the world won’t be spending as much marketing over that channel.

It has recently been revealed that Samsung Electronics, the biggest smartphone maker on the globe, has decided that it won’t be spending as much money on mobile marketing throughout 2014.

This decision has come as a surprise to some as mobile devices are a primary focus of the company.

The reason that was given for cutting back on the mobile marketing budget at Samsung, this year, is that the company plans to reduce that spending in a way that directly reflects its revenues. This, following a massive amount of spending during the fourth quarter during its tremendous promotional campaigns throughout the hot holiday shopping season.

That said, this doesn’t meant that Samsung will be ceasing its mobile marketing, only cutting is budget.

There are other advertising and promotional opportunities that are specifically being leveraged at the moment and that are cutting into the overall budget of the company. For that reason, some changes needed to be made this year to carry them through based on the revenues that are expected throughout that time.

For instance, according to Kim Hyunjoon, the senior vice president at Samsung, the company plans to “actively leverage global sports events such as the Sochi (Winter) Olympics” as well as their channels through retail. However, at the same time, they are working to “try to raise the efficiency of our marketing spend and lower our overall mobile marketing budget to revenue this year compared with last year.”

Kim Hyunjoon made this announcement to analysts as Samsung was releasing its earnings figures. Last year, the company had run a number of exceptionally large campaigns, particularly in the last part of the year. This came as a part of a number of different strategies and often coincided with the launches of a series of new types of mobile devices and gadgets that the company has to offer.

The company does intend to continue with a mobile marketing strategy this year and will maintain its reflection of the earnings it plans to bring in through 2014.

Firm highlights potential of mobile gaming

Mediabrix, a mobile and social gaming advertising firm, has been heralding the potential of mobile games for some time. These games have become resoundingly popular among consumers around the world and, as such, have also become very attractive advertising platforms. The marketing potential of mobile gaming has yet to be fully actualized, but Medibrix has been showing the revenue generation capability of gaming advertisements and how effective in-game ads can actually be.

In-game ads reach $200 CPM

Mediabrix has reported that its in-game advertisements are generating $200 CPM across multiple platforms, 180 times greater than that produced by traditional advertisements. CPM denotes the rate that marketers will pay to have their ads hosted on a particular platform. The higher the CPM, the more valuable the platform is to marketers. According to data provided by Mediabrix, mobile games may be one of the most valuable marketing platforms there is.

Popularity of mobile games proves successful for advertisers

The value of mobile games is linked to their popularity among consumers. These games are both easy to obtain, as most of them are free, and easy to play. Because of their mobility, these games can be played anywhere and at any time. Moreover, consumers tend to jump from game to game relatively quickly, exposing themselves to a wide variety of games as well as the advertisements that these games host.

Fickleness of consumers may be bad for developers

Despite the apparent potential of mobile games, monetization of these games has been a difficult issue for many startups. New and independent development firms often fail in their monetization efforts because their mobile games are not able to find traction with consumers. Notably, the way consumers move from one game to another in quick succession has created a turbulent environment wherein developers have a difficult time holding the attention of a particular gamer long enough to generate any significant revenue.