For a few of my clients with Great Marketing Works we look at mobile marketing as a channel to advertise to young people. Which is why the move by the aptly named Millennial Media is of interest to me.
As, reported in FC, they are acquiring rival mobile advertising network Jumptap, which is a good move to challenge Google’s dominance in the segment. A dominance I have to say for once is not a good thing for advertisers – sorry Google – but your moves into mobile marketing and then enhanced campaigns have been a little too naughty price wise for me and my clients. Doubling the costs over night….unless you checked it – you cheeky beggars
Anyhoo, as per terms of this rather cool deal, valued at $196.8 million, Jumptap shareholders will receive approximately 24.6 million shares of Millennial Media, corresponding to 22.5 percent ownership. Millennial Media President and CEO Paul Palmieri will remain in his current post, while Jumptap CEO George Bell will join the Millennial board as vice chairman. I should have bought into Jumptap (about the same time I should have bought into gold….. but sold a lot earlier….)
The deal for Millennial Media might even be better than gold as it now controls 18 percent of the mobile advertising market, while Jumptap accounts for 10.7 percent, according to IDC data–their combined 28.7 percent is roughly on par with Google, Palmieri told investors Tuesday, according to Business Insider. In all, Jumptap touts more than 100 million unique user profiles and audience targeting relationships with more than 20 third-party data providers. The firm also boasts 55 issued patents and another 50 patents that are still pending.
Millennial Media also reported second quarter results Tuesday, posting revenues of $57 million, up from $39.4 million in the year-ago quarter–an increase of 45 percent. Losses nevertheless grew from $2.2 million in the second quarter of 2012 to $3.1 million in the most recent quarter.
Millennial Media now reaches more than 450 million monthly unique users globally, including approximately 160 million monthly unique users in the U.S. Developers have integrated Millennial’s platform into more than 45,000 applications, and the firm has created 450 million proprietary, anonymous user profiles.
So fair play to them, looks like I picked the right mobile partner for our advertising with The Apprentice Academy. Especially with a new push coming up for young people and exam results – it will be interesting times ahead for our mobile marketing me thinks.
And I can now stop split testing between these two providers at least 😉
(Ed note – interestingly share price for MM dropped 8.50% on the news – http://www.businessinsider.com/millennial-media-acquisition-of-jumptap-will-change-mobile-advertising-2013-8 so perhaps I will buy some shares after all – anyone know how to do this? There really should be an app for that…..)