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Mobile traffic monetization: challenges and solutions

Discover all latest facts & figures on the mobile advertising industry and it’s monetization challenges in our new article and infographic

Mobile is finally in the center of the strategic vision of the global internet economy, both hardware and software vise. But smartphone and tablet penetration also boosted the volumes of mobile data traffic, urging the telecommunication market  to move rapidly toward data services. Let’s take a closer look at some of the latest mobile data traffic statistics, with its arising opportunities and challenges.

Mobile data traffic: facts & figures

The latest statistics gathered in the Ericsson Mobility Report show the pace of this growth: mobile broadband subscriptions grew 35 % year-on-year, reaching 2.3 billion, while close to 65 % of all mobile devices sold in Q1 2014 were smartphones. These factors combined caused naturally the increase in the amount of data usage per subscription that resulted in 65% growth in mobile data traffic between Q1 2013 and Q1 2014.

But how “heavy” is mobile traffic data? According to Cisco, mobile traffic in 2013 alone, generated 1.5 Exabytes[1] of data per month (1 Exabyte is 1 billion gigabytes), that was 18 times more than all traffic across the global Internet in 2000. The predictions bring more incredible numbers:  by 2018 mobile data traffic is expected to reach an annual run rate of 190 Exabytes!

There are several reasons that fuel this incredible growth, aside the devices penetration. Important positive boost comes from the 4G technology, that is faster and higher performing, and it encourages the use of advanced, multimedia apps. Today 4G connections represent only 2.9% of all mobile connections but they already account for 30 % of all mobile traffic. The Cisco report estimates that mobile 4G connections will grow from 203 million in 2013 to 1.5 billion by 2018.

Traffic market share: global overview

The latest analysis State of mobile advertising by Opera brings very interesting data for the first quarter of 2014. When it comes to traffic share, Android is the market leader, accounting for 42%, while iOS takes 38% of the market. On the other hand, when it comes to monetization, Android with 33% is still tailing iOS, that accounted for 52% of revenue share.

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Neomobile’s weekly roundup

Top weekly news from the mobile & tech industry selected by Neomobile

Facebook’s Revenue Soars On Mobile Ad Boom 

Facebook’s flourishing mobile ad business helped the social network to report impressive second quarter results. Revenue was up 61% to $2.91 billion, as the company’s profit more than doubled to $791 million.

When Facebook started selling mobile advertising space in 2012, not even the keenest optimists could have predicted how huge mobile ads would soon be for Facebook’s business. In each of the past six quarters, mobile ads contributed more then 90% to Facebook’s revenue growth. In the June quarter, mobile ad revenue amounted to $1.66 billion, up 153% or $1 billion from last year’s second quarter. Mobile ads now account for 62% of Facebook’s advertising revenue and 57% of t

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Neomobile Brazil – Interview with Pietro Gianquinto

This week, we are pleased to present Pietro Gianquinto, the Brazil Country Senior Manager at Neomobile. Pietro will give us insight on what it’s like to work at Neomobile, and share his interesting observations about the mobile industry in Brazil.

How did you arrive to Neomobile?

After my work experience in Canada, I was looking for an opportunity to work in Italy and my friend, Claudia Curto, told me about a position that opened up at Neomobile for a media planner. I did five interviews and at the end the company decided to hire someone else. After 3 months they contacted me again for an internship position to work in the Spanish market. At the time we were divided into 3 teams: WAP, Web, and TV. I was part of the WAP team. That’s where my adventure in Neomobile began.

What is your professional background?

Before Neomobile, I worked for advertising agencies and in Television as a copywriter, creating campaigns for brands. When I started working at Neomobile, my creativity was very useful when working on mobile campaigns, but I started to work with analytics, and after working in many areas within the company, I completely changed my professional background.

What is your regular workday like?

I usually arrive at the office around 7 to take my Portuguese lesson (I arrived in Brazil just 3 months ago from Mexico, so I’ve never studied Portuguese before). After that, I drink coffee and analyse the first numbers coming from HQ to take immediately actions and coordinate my team’s activities. After that, I make calls with my colleagues in HQ, carriers and partners.

What is the most interesting/rewarding project you have worked on?

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Google counts on carrier billing as a mobile payment service

Google offers carrier billing as a mobile payment option

The development of the mobile commerce industry has also generated a parallel growth in mobile payment options. They range anywhere from direct billing to mobile NFC and digital wallets. One of key players in this industry is Onebip by Neomobile, a mobile payment service based on a payment system known as carrier billing, a payment method through which users can make purchases through their smartphone or tablet and pay directly from their phone bill.

With Onebip, Neomobile offers a mobile payment option that gives application developers a tool to monetize all the digital content available on their products. Likewise, carrier billing provides the user an easy way to make a secure payment. Neomobile firmly believes in the benefits of carrier billing. That’s why we want to highlight how Google has decided to embrace this mobile payment system.

Apart from credit card payments and the company’s digital wallet (Google Wallet), today Google’s mobile customers can buy apps and digital content using their carrier billing system on the Google Play Store. With this option, any digital purchases made are billed directly to a user’s phone bill. Google currently offers this payment option in more than 20 countries around the world. Spain is a great example of success, where Movistar and Orange users can shop through carrier billing.

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Neomobile’s weekly roundup

Top weekly news from the mobile & tech industry selected by Neomobile

Global Ad Spending Growth to Double This Year

Advertisers worldwide will spend $545.40 billion on paid media in 2014, according to new figures from eMarketer. Total media ad spending will increase 5.7%, eMarketer projects, more than doubling its growth rate of 2.6% from a year ago.

ad spending global

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