BuzzCity, a provider of global wireless communities and consumer services, today announced the Q3 2008 myGamma Global Mobile Advertising Index, which is said to demonstrate the growing use of the mobile internet and ensuing advertiser interest. BuzzCity says it reports continued growth in Indonesia, which remains in top position despite network irregularities, as well as significant growth in Kenya, USA and Bangladesh.
BuzzCity also reports record growth for demand of its service in Libya, which will surprise both the global mobile community and digital advertising industries. Only six months ago Libya sat in 93rd position. It is likely this growth is directly linked with changes in mobile operator business models offering affordable and understandable mobile data packages, which typically results in a significant increase in user levels and a consequent increase in brands keen to advertise on BuzzCity's advertising network.
UK brands have also shown an increased interest in buying mobile advertising space, with BuzzCity having served 48 million paid ad banners to UK users during Q3 2008. This is a 96% increase on ad banners served in Q2 2008 and puts the UK into 16th position in the index, having moved up two places in respect to Q2 2008.
myGamma Global Mobile Advertising Index
The following statistics shows paid ad banner figures for the third quarter of 2008, alongside a comparison with those of Q2 2008:
1. Indonesia: 1.8 billion (up 47%)
2. India: 660 million (down 1%)
3. South Africa: 540 million (down 7%)
4. Kenya: 299 million (up 91%)
5. USA: 261 million (up 37%)
6. Bangladesh: 134 million (up 71%)
7. Tanzania: 114 million (up 30%)
8. Libya: 103 million (up 1640%)
9. Romania: 103 million (up 43%)
10. Egypt: 98 million (up 76%)
BuzzCity's myGamma social network service on mobiles operates on an ad-supported model as a primary source of revenue. Advertisements are served on myGamma and on more than 2,000 publisher sites globally. BuzzCity tracks the growth of the network and by extension, the growth of the mobile internet in more than 200 countries around the world.
The company recently announced it has secured USD$10 million growth capital financing by new investor Naspers, a South Africa based integrated multinational media company. South Africa has consistently featured in the top five countries of the myGamma Global Mobile Advertising Index, with the number of paid ad banners having increased five-fold since 2007. To date the myGamma advertising network has served 12 billion paid advertising banners in 2008, with 1.5 billion served in South Africa alone.
KF Lai, CEO of BuzzCity, commented on the news: "Increased mobile penetration and reduced mobile data charges invariably sees more consumer activity on the mobile internet. More and more advertisers and publishers are keen to reach this growing base of consumers who may be difficult to reach via more traditional media outlets. For example, around 40% of South Africa's population has access to the mobile web whereas less than 10% access the web via a PC. This means that many big brands, such as banks and real estate agents, are willing to spend up to 70 per cent of their budget on mobile advertising.
"There is a significant segment of the global consumer market whose primary access point to the web is via mobile. Brands that fail to recognise the growing potential of advertising via the mobile channel will lose out to more innovative competitors who are leading the field when it comes to interactive D2C marketing techniques."