For personal use only
4th February 2013
ASX RELEASE
Company Update: Over 100% Growth in Mobile Advertising Revenue
Key Points

Mobile Embrace’s unaudited revenue for its mobile advertising business
has increased more than 100% for the December 2012 ½ year compared to
the July 2012 ½ year

Mobile Embrace’s mobile content premium billing business is showing
strong month on month customer acquisition growth, more than 40%
growth December 2012 to January 2013, following a transitional softer
revenue period

In line with forecast Mobile Embrace group unaudited revenue has
increased 16.5% for the FY 2013 ½ Year compared to the previous
corresponding period
Mobile Embrace Ltd. (ASX: MBE), Australia’s leading mobile digital communications
company, unaudited revenue for its mobile advertising business has increased more
than 100% for the ½ year to December 2012 compared to the ½ year to July 2012
from $760,000 to $1,600,000.
Mobile Embrace’s mobile content premium billing business, with a shift in marketing
and the launch of a new mobile billing platform, is showing strong month on month
customer acquisition growth following a transitional softer revenue period. Monthly
customer acquisition has grown more than 40% from December 2012 to January 2013.
Indicators are robust for growth to continue. Resultant revenue benefits will be realized
in the coming months.
New customer acquisition strategies have delivered efficiencies in the cost of
acquisition. Diversification and establishment of new marketing channels has given
greater control to marketing performance and expenditure. Broadening of the
marketing channel mix has improved risk mitigation across the peaks and troughs of
individual marketing channel performance enabling “smoothing” and better consistency
in overall marketing performance.
Unaudited revenue for the Mobile Embrace group has increased 16.5% for the first ½
FY13 compared to the previous corresponding period from $4.95 million to $5.76
million, in line with forecast.
The mobile advertising business has continued to strengthen and grow its mobile
advertising premium publisher network with leading publishers such as Sportsmate,
Mamamia, Dictionary.com, APN, ARN and BBC. This has increased the amount of
mobile advertising inventory it can sell in market, and also the targeting capability that
adds to the advertiser market segments it can service.
The Tier 1 premium publisher network provides advertisers access to large volumes of
targeted ad impressions monthly across mobiles and tablets.
Mobile Embrace Limited ABN: 24 089 805 416
Level 10, 100 William Street, East Sydney NSW 2011 Australia
T +61 2 9360 3385
F +61 2 9360 2775
W www.mobileembrace.com
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For personal use only
The network offers premium advertising channels in Sport, News and Business, Music
and Entertainment, Lifestyle and, through its broader aggregated network in
partnership with US based AdMarvel, gives advertisers premium placement across a
raft of the major international publishing mastheads visited by Australian consumers,
enabling quality audience targeting.
The list of major brand clients purchasing advertising within the network has continued
to expand with many notable additions including American Express, Jagermeister, St
George, Peugeot, Red Bull, Xbox, Dick Smith, Kelloggs, SPC, Kia, Warner Music, Red
Rooster, Webjet, Sanitarium, Adidas, Disney Home Entertainment, Schick and Village
Roadshow
The mobile advertising business strategy of bringing together outstanding brand
advertisers with premium quality mobile advertising inventory continues to strengthen
its competitive positioning. The business provides a “brand safe” mobile advertising
network environment that protects major brands and leading masthead publishers from
undesirable and potentially damaging brand associations that can occur when utilizing
“blind network” mobile advertising where the advertising destination or the advertiser
are not controlled or are unknown.
According to analyst firm Berg Insight consumers are currently devoting a quarter of
their media consumption time on mobile devices, yet the channel only attracts slightly
1% of the ad dollars. Its new research report predicts the total value of the global
mobile advertising and marketing market will grow from $4.95 billion in 2011 at a
compound annual growth rate (CAGR) of 31% to $25.6 billion in 2017. This will then
correspond to 15.5% of the total online advertising market.
The growth of online mobile internet usage in Australia is rapid, up by 189% in the past
12 months, according to research released by Nielsen in October 2012. This is a
significant driver for growth in mobile advertising inventory, and increasing business
demand for mobile advertising that enables consumers to be reached as they spend
more time accessing websites via their mobile phones and tablets.
Australian internet access via mobile devices is forecast by Morgan Stanley to exceed
internet access via desktop pcs in 2014
Australian businesses are now aware it is critical that they are optimised for mobile in
order to follow consumers. Mobile Embraces platforms and technology solve the “go
mobile” problem for business.
The Company uniquely provides an end-to-end mobile marketing and advertising
infrastructure that includes the premium advertising network, mobile messaging, mobile
marketing tools and applications, mobile loyalty, mobile database capture and
management, mobile media and web design, development and publishing, mobile
applications, somogeo (social mobile and geographical) and m-commerce.
Mobile Embrace is a market leader in mobile and digital communications, which will
become strategically more relevant and important to Australian businesses, and their
need to engage the mobile market in the future.
The Company is well positioned to capitalise on a market forecast for strong and
sustained growth.
About Mobile Embrace Limited
For personal use only
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Mobile Embrace Limited (ASX: MBE) is a mobile digital communications company that reaches,
engages and embraces consumers, and builds and monetises databases via mobiles and
tablets. The company does this with a Tier-One mobile advertising premium publisher network,
mobile optimisation via award winning mobile media design and development, and complete
mobile marketing, merchandising, data management, location based and M-Commerce
solutions. Mobile Embrace, and for its major brand clients, optimises value generation through
mobile’s one-to-one consumer interaction with powerful branding, customer acquisition and
loyalty solutions.
For more information see www.mobileembrace.com
Neil Wiles
Managing Director
Mobile Embrace Limited
(02) 9360 3385
[email protected]
Media Enquiries
Kate Prince
Cannings
(02) 8284 9915
[email protected]