Mobiquity Technologies, Inc. (OTCQB:MOBQ) happened to cross my radar after the November 25, 2013 press release announcing the appointment of Michael Pinkman as Executive Consultant. Mr. Pinkman was a senior director of sales in Apple. Obviously, when a top salesman at Apple is hired as consultant, one must sit up and take notice.
Mobiquity Technologies was earlier known as Ace Marketing & Promotions and the name was changed to reflect that it was not just a marketing but a technology company offering a range of technology-based business solutions including location-based mobile marketing.
Mr. Pinkman, an experienced and renowned salesman
Mr. Pinkman has a 25-year experience in some of the top technology companies in the world including Apple, Adobe Systems. While in Apple, as Senior Director of Sales for 11 years he played an instrumental role in development of sales strategies across various revenue lines. He also planned, executed and the launch of practically all Apple products and the phenomenal success of iPhone and iPad is rightfully shared and credited to him. Earlier in life, he was with Adobe Systems for 11 years and as Director Sales and Marketing, North America, was responsible for generating sales of more than $350 million.
Location-based marketing - the potential
We are in the middle of what can be called the golden age of mobile marketing. Advertising on mobile phones and tablets, which was considered marginal until 2012, has taken off in a big way with the coming up of new platforms and capabilities. Gone are days of cheapjack ad displays; we now have innovative and creative video ads on smartphones, which has opened new vistas for advertising agencies, brands and content publishers.
Use of mobile devices as a tool to access the Internet, be it Google Search, Facebook or emails, has increased multifold as a large part of the population shifts from feature phones to smartphones and tablets. The shift, which has been faster than expected, compelled companies like Google and Facebook to eliminate differences between PC and mobile displays.
Some glaring facts regarding the potential of mobile marketing:
More than 50% of the U.S. population will be carrying smartphones by 2014.
U.S. spending on mobile advertisements is estimated to increase 75% and touch $8 billion. [http://adage.com/article/digital/mobile-fact-pack-2013-ad-age-s-guide-mobile-marketing/243696/ ] Another study places the figure at $10.5 billion by the end of this year itself. [http://www.yume.com/blog/mobile-marketing-spending-to-hit-20-billion-in-2015/]
According to the same study, by2015 the total spends on mobile marketing, including mobile advertisements, mobile CRM and mobile direct response is expected to reach $20 billion.
The largest share (50%) of the ad spend on total mobile marketing is expected to be on mobile advertising.
Nearly 24% of the world's population will be using smartphones by 2014.
On an average, users spend 141 minutes every day on mobile devices.
The biggest driver of increased ad spend on mobile marketing is that mobile ads are seen to be more effective as the viewer is more laid back while using a mobile device. Add to this the fact of larger screens, which allow images, text and HD video and not than just a logo as before, we have a very promising scenario for location-based mobile business solutions.
Mobiquity Technologies stands to gain the most as it has the largest location-based mobile marketing Bluetooth network in the country. The company's patented technology enables it to deliver ads, movie trailers, messages and coupons to almost any phone through Wi-Fi and Bluetooth with the ability to track results, which makes campaigns more accountable.
Location based mobile advertisement primarily refers to the distribution of ads (in whatever form) is the use of technology to determine the location of a consumer and provide advertisements specific to the location. Popularly known as proximity marketing, it has distinct advantages over other mobile advertising tools such as SMSs, WAP and mobile applications as it is free to consumers in addition to not being dependent on interaction wireless carrier and an external application.
Location of a targeted consumer is determined through the cellular network, Bluetooth, WiFi, GPS or through radio signals to phones enabled for near field communication.
Mobiquity recently entered into an agreement with a major movie studio for advertising new releases According to the Wall Street Journal report, the company's mobile marketing campaign successfully "drove movie goers to the box office with an official, made-for-mobile movie trailer and calendar reminder".
The bottom line
Mobile advertisement is relatively in its nascent stage as compared to traditional marketing, which is the reason why Mobiquity is yet to report profits. However, going into 2014, there is a huge potential for growth as discussed above. In my opinion, the entry of Mr. Pinkman as a marketing consultant and his relationships within the industry reflect that the company is on the right track. The potential for growth of proximity marketing appears to be even more when we see that Apple has adopted Bluetooth based iBeacon, an indoor positioning system and AirDrop, an ad-hoc file sharing tool that does not require the use of a mass storage device.
Disclosure: I am long OTCQB:MOBQ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.