Microsoft-Yahoo Deal Seen As Driven In Part by Mobile Ad Rev
by Russell Shaw
There are some opinions bouncing around the analyst community that identify mobile messaging and advertising as trends that may have driven Microsoft to try and acquire Yahoo.
Set against the looming spectre of Google as a competitor in this space, MultiMedia Intelligence chief research officer Frank Dickson has some thought-leader thoughts on this issue.
Frank’s thoughts, which he emailed me today, largely relate to the wishes of cell carriers to add additional revenue not tied in to subscription cash flows, and the demonstrated ability of Yahoo! and Microsoft to facilitate mobile advertising and its promise of related income to the carriers.
Frank sent a research brief to me earlier today that lays out the issues and opportunities:
Mobile operators are driving toward an increasingly rich array of data services to sustain growth. Mobile handsets are becoming increasingly powerful media devices, capable of providing a rich media (and advertising) experience. Finally, the Internet is emerging on mobile devices and mobile networks.
The result is advertisers putting their cross-hairs on the world’s 3 billion cellular subscribers. New cellular based advertising techniques will not only deliver display ads but also integrates community, participation and interactivity into the media experience.
“Microsoft and Yahoo! have both identified the promise of mobile advertising and have been frantically attacking the space,” according to Frank Dickson, Chief Research Officer for MultiMedia Intelligence. “In the early 90s, Microsoft scoffed at the promise of the Internet and gave Google a massive jump-start in the market. It will not make that mistake with mobile.”
It will be both fun and fascinating to see how this monumental acquisition process plays out. Even more interesting will be what revenue-enhancing mobile apps a Yahoo-enhanced Microsoft will bring to carriers and end-users.
