Yahoo Teams Up With To Tap $4.86 Billion APAC Mobile Advertisement Market !

Yahoo Inc (YHOO) and Mobile ad network have acquainted a prudent alliance to aid Yahoo to mobilize its mobile efforts throughout Southeast Asia, in addition to Singapore, Malaysia, the Philippines, Thailand and Vietnam. VP Vikas Gulati said in a statement the deal will rake in “lucrative benefits” for both Yahoo and the advertiser ecosystem. He also said “Being a premium digital publisher with a phenomenal number of loyal viewers, yahoo will be able to effectively offer their mobile inventory to our wide advertiser base across Southeast Asia, while being able to monetize it with optimal yields within the region”.

Undoubtedly, it’s an intelligent move by Yahoo. In 2013, APAC and Japan mobile advertisement market is projected to contribute $4.86 billion alone, and will grow by 100% to $9.46 billion by the end of 2016.

Global Mobile Advertising Revenue 2013

The Back Drop

As a new entrant, Vserv, a Mumbai based company commenced in 2010,clicked because of the company’s positioning as a mobile ad network for emerging markets, given the significant growing base of mobile users the company capitalized on this exuberant opportunity.

The company’s two main flagships are “Audience Pro” and “App Wrapper” (earlier called Ad wrapper), the company’s chief product, works across platforms such as Android, Windows, and IOS. It adds advertisements to developer’s mobile apps, enabling them to monetize their apps with minimal effort and providing advertisers with a medium to target the growing mobile audience.

Vindication for the Partnership

That means mobile devices both locally and globally will oppress the future of internet and data services as accessing them through mobile is more convenient. Accordingly, advertising is getting cheaper and the players are getting competitive by making efforts to expand their horizon, which is driving newcomers like Vserv to make the most of the given opportunity. Vserv claims to have more than 10,000 20,000 apps (according to the update sent to us by VServe) listed and flaunts that there are 8000 publishers,150 advertisers advertising through this network and additionally there was 15 billion ad requests during April this year .Vserv had a funding around $3 million from technology venture capital firm IDG Ventures India in July 2011, has grown exceptionally well and have established a strong holding across the globe. The Mumbai headquartered company already has offices in Delhi ,London, Singapore and is planning to open one in Middle East and Africa. The company brags partnerships with numerous regional  publishers ,including “Okezone,  Kompas,Viva News,Antara News,Metro TV news,Utusan(Malaysia), Cosmopolitan(Indonesia),9X Media, Sony Music ,India Today.

Will it be pragmatic??

The Company is up against well-funded rivals like Inmobi (raised $200 million from Japan’s Softbank), but the market opportunity is huge. Given Yahoo’s success in delivering deep, personal digital experiences to a huge global audience with apt audience quality and ad engagement opportunities it could be the key wave maker to drive rapid growth of mobile ad market. The space will remain dandy for few more years.

Mobile Advertisement Market

It is estimated that the total value of the global mobile marketing and advertising market will see 37% growth to $22.6 billion by 2016. Interestingly by the end of 2013, the market is speculated to be worth $11.4 billion. It is interesting enough to understand mobile users treatment to advertisements  As far as users are able to access free content post click on mobile ads, they feel comfortable with ads, study claimed. In India, Text ads are more popular and influence users for more clicks compare to display ads.

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