Online Mobile Advertising Companies are Not Making Much Money?

Online mobile advertising companies are not making profits? Well, this might be true from a certain point of views. Check out the blog post title “4 Companies Who are Losing Millions In Mobile Advertising” from Business Insider. The blog post listed out revenues and losses of 5 companies based on Q1 2012 disclosures. Among the 5 companies only Opera makes a profit. The other 4 companies like Velti, Millennial Media, Augme and Hipcricket suffer losses. Although the blog did mention roughly about the facts and reasons which cause these companies not making much money from the billion dollars industries, I like to include one reason which I think affect the most.

Google is the reason why mobile online advertising companies not making the kind of profit they should. Before the small screen of mobile advertising, Google dominates online advertising in desktop and laptops. Millions of publishers and advertisers make and spend money in online advertising industries for many years. They learn and went through all the good and bad in online advertising mostly with Google. Now that online mobile advertising comes in, most people who are involve in online mobile advertising industries are experts, experienced or former publishers and advertisers who use to deal with Google. It is almost like doing the same old online advertising thing one more time but in a smaller platform or screen. This time they will be more careful not to feed or create another company like Google which dominates the online mobile advertising industry. Thus it makes mobile advertising companies much more difficult or challenging to deal with publishers and advertisers in order to gain profit.

P/S: I suppose it takes time for mobile advertising company to break even and start making profit.



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