By Mobile Guru
There have been a lot of articles written on the coming of age of mobile marketing but never before has there been an advertising platform that was so intimately part of the end users life. Access to potential customers virtually any time. any place makes mobile unlike any other marketing tool ever created. Despite mobile marketings now proven effectiveness, advertisers are still just scratching the very surface. The following recent study by Marketing Evolution stated the following:
US marketers should increase their spend on mobile marketing by a factor of seven, according to a study commissioned by the Mobile Marketing Association (MMA).
The research by Marketing Evolution, a marketing measurement and analytics firm, concluded that the optimized level of spend on mobile advertising for US marketers in 2012 should be 7%, on average, compared to the current budget allocation of less than 1%.
Three of the leaders in Mobile Advertising, Augme Technologies (AUGT), Millennial Media (MM) and Velti (VELT) have all recently reported quarterly numbers and given guidance for the next quarter. Most companies report growth of quarter over the previous year’s quarter. Instead focusing on sequential growth from Q1 to Q2 etc.. is a much better indicator of how revenues are really growing. Here is a breakdown of recent reports and future expectations.
- Augme Technologies: Q2 revenues grew at an estimated 20-24% from Q1. Q3 revenues are estimated to grow 15-20% from Q2 revenues.
- Millennial Media: Q2 revenues grew at 19.75% from Q1 revenue. Q3 revenues are estimated to grow at between 10-14% over Q2.
- Velti: Q2 revenues grew at 13% from Q1 revenue.Q3 revenues are estimated to grow between 2-9% from Q2 revenue.
As can be seen by the above company estimates the growth in mobile advertising is expected to continue to grow throughout the rest of the year. There are very few industries that not only are showing huge yoy growth, but also growing from quarter to quarter. As mobile becomes a much larger part of advertiser’s budgets this growth should not only continue to grow but should actually accelerate.
Despite recent impressive financials, all three companies are trading down significantly from highs. At their current prices, all three represent deep value relative to their projected growth rates.
The following is a guest post by fellow investor mobile guru, whose interest lie within the mobile revolution, start-ups & IPO’s, and intellectual property.
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