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Four of the big five advertising holding companies – Interpublic, Omnicom, Publicis, and WPP– have been subpoenaed by the US Justice Department in a probe into potential price fixing in video advertising production services, The Wall Street Journal reports.
These agencies are under investigation for manipulating the video ad production market. The Justice Department is determining whether these agencies have been involved in bid rigging, influencing independent production companies to raise prices in order to steer contracts to agencies’ in-house production units. The production and postproduction of commercials – which involves services like directing, sound editing, special effects and color correction – is an estimated $5 billion business, says the Wall Street Journal.
This investigation could have dramatic follow-on effects for the advertising industry. The Justice Department attorney leading this investigation, Rebecca Meiklejohn, has convicted ad executives for engaging in uncompetitive practices before, as explained by Business Insider. Further, the DoJ has subpoenaed K2 Intelligence, which released a damning report on nontransparent practices in the advertising industry earlier this year. The report K2’s report alleged that such practices were pervasive in the industry, but focused largely on the transfer of unethical, undisclosed media rebates. There are suggestions that the DoJ could extend its probe into this area too.
Jessica Smith, research analyst at BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on mobile marketing that takes a close look at the different tactics being used today, spanning legacy mobile technologies like SMS to emerging capabilities like beacon-aided location-based marketing. The report also identifies some of the most useful mobile marketing technologies that mobile marketers are putting to good use as parts of larger strategies.
Here are some key takeaways from the report:
- As consumers spend more time on their mobile devices, marketing campaigns are following suit. Mobile ad spend continues to lag mobile time spent, providing an opportunity for creative marketers.
- Marketers should leverage different mobile tactics depending on the size and demographics of the audience they want to reach and the type of message they want to send. With all tactics, marketers need to respect the personal nature of the mobile device and pay attention to the potential for communication overload.
- Mobile messaging — particularly SMS and email — has the broadest reach and highest adoption among mobile users. Messaging apps, relative newcomers but gaining fast in popularity, offer more innovative and engaging outreach options.
- Emerging technology, such as dynamic creative optimization, is breathing new life into mobile browser-based ad campaigns, but marketers should keep an eye on consumer adoption of mobile ad blockers.
- In-app advertising can generate high engagement rates, especially with video. Location-based apps and beacons offer additional data that can enhance targeting capabilities.
In full, the report:
- Identifies the major mobile technologies being used to reach consumers.
- Sizes up the potential reach and potential of each of these mobile technologies.
- Presents an example of a company or brand that has successfully leveraged that mobile technology to reach consumers.
- Assesses the efficacy of each approach.
- Examines the potential pitfalls and other shortcomings of each mobile technology.
To get your copy of this invaluable guide to the world of mobile marketing, choose one of these options:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
- Purchase the report and download it immediately from our research store. >> BUY THE REPORT
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile marketing is rapidly evolving.