Question

Case 2 – Mobile Ads

According to eMarketer, mobile ads will top 100 and it accounts for about 16.5 percent of total advertising spending in 2016. The top five spenders of mobile ads are the United States, China, the United Kingdom, Japan and Germany. This number is expected to increase as the worldwide adoption of smartphones continue to grow. In 2015, there were about 2.6 billion smartphone users. This number is expected to top 6.1 billion globally by 2020.

Businesses are increasingly using mobile ads. Location data from mobile devices is the key element for a successful mobile ad campaign. Facebook and Google are two biggest players that generate the highest revenue from mobile ads. PlaceIQ, a technology form headquartered in New York city collects billions of data points from mobile devices and other sources and is able tract potential customers as they move from one retail location to another retail location – such as from one car dealership to another. PlaceIQ is also able to help businesses find out if the ads can translate to an actual visit by a customer. In addition to its huge data set for business, PlaceIQ also offers location data and analytics tools to businesses and allows them to do their own advertising.

Audi is using the Place IQ data to measure how many potential customers will visit its dealerships before and after they have seen ads. They also want to target potential customers who are visiting their competitors’ showrooms. Stacom Media Group is using PlaceIQ in order to find out how mobile location data can be helpful and eventually attract more customers to a business.

Questions:

a) By 2020 how many smartphones will be existing globally?

b) Who are the two leading companies that generate the biggest revenue from mobile ads?

c) How PlaceIQ impact businesses?

d) Why is Audi using the services offered by PlaceIQ?

e) Your overall observation and learning from the above case study.

Answer 1

Ans - a.) 6.1 Bn (billion) smartphones will be existing globally by 2020.

Ans - b.) Facebook and Google are leading two companies that generate highest revenue from mobile ads.

Ans - c.) PlaceIQ collects data from millions of devices and tracks the potential customer as they move from one retailer to another. Example, when an individual walks up to a car dealer and for some reason he didnt liked their cars, company like PlaceIQ maintains the data of individual and keeps track of reason for which they didnt like the car. These data collectively help to analyse and improve the business better.

Ans - d.) Audi uses the data provided by placeIQ to measure the potential customer frequency that will visit their dealership before and after the ads were live.

Ans - e.) Data plays a very important role in corporate world. It is the data which collectively analyses human psychological effect and further helps the organisation to tackle the situation accordingly. Mobile ads, merged with data science can lead the corporates to grow exponentially in near future. But along with, data is vulnerable so can be easily exposed and hence can severely backfire.