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Harvard Case - InMobi: Reimagining Mobile Advertising

"InMobi: Reimagining Mobile Advertising" Harvard business case study is written by Sunil Gupta, Saloni Chaturvedi. It deals with the challenges in the field of Marketing. The case study is 16 page(s) long and it was first published on : Apr 21, 2016

At Fern Fort University, we recommend InMobi pursue a multifaceted strategy focused on enhancing its core advertising platform while expanding into adjacent markets. This strategy involves a combination of organic growth initiatives, strategic acquisitions, and a continuous focus on innovation. By leveraging its strong technology foundation, InMobi can solidify its position as a leader in mobile advertising and capitalize on the rapidly growing mobile ecosystem.

2. Background

InMobi, founded in 2007, is a leading global mobile advertising platform. The company faced challenges in 2013, including declining margins due to increased competition and a shift in the advertising landscape towards programmatic buying. The case study explores InMobi's efforts to adapt and innovate, focusing on its core competencies in mobile advertising technology and data analytics.

The main protagonists of the case study are:

  • Naveen Tewari: Founder and CEO of InMobi, responsible for driving the company's strategic direction.
  • Abhay Singhal: Chief Product Officer, leading product development and innovation.
  • Amit Gupta: Chief Revenue Officer, responsible for driving revenue growth and managing client relationships.

3. Analysis of the Case Study

To analyze InMobi's situation, we can utilize the following frameworks:

SWOT Analysis:

Strengths:

  • Strong technology platform with a focus on mobile advertising.
  • Extensive data analytics capabilities for targeted advertising.
  • Global reach and presence in emerging markets.
  • Experienced leadership team with a proven track record.

Weaknesses:

  • Declining margins due to increased competition.
  • Dependence on third-party ad networks.
  • Limited brand awareness compared to larger competitors.

Opportunities:

  • Growth of the mobile advertising market, especially in emerging markets.
  • Increased demand for programmatic advertising and data-driven marketing solutions.
  • Expanding into adjacent markets like mobile commerce and mobile payments.

Threats:

  • Intense competition from established players like Google and Facebook.
  • Regulatory changes impacting the advertising industry.
  • Potential for technological disruption in the mobile advertising space.

Porter's Five Forces Analysis:

  • Threat of new entrants: Moderate, as the mobile advertising market is mature but still growing.
  • Bargaining power of buyers: High, as advertisers have many options and can easily switch platforms.
  • Bargaining power of suppliers: Low, as InMobi relies on third-party ad networks and data providers.
  • Threat of substitute products: High, as alternative advertising channels like social media and video platforms are gaining popularity.
  • Rivalry among existing competitors: Intense, as the market is fragmented with many players vying for market share.

Marketing Mix (4Ps):

  • Product: InMobi's core product is its mobile advertising platform, offering various ad formats and targeting options.
  • Price: InMobi's pricing strategy is based on a combination of cost-per-click (CPC), cost-per-thousand impressions (CPM), and cost-per-acquisition (CPA) models.
  • Place: InMobi distributes its advertising platform through a network of third-party ad networks and direct partnerships with advertisers.
  • Promotion: InMobi uses a mix of online marketing, content marketing, and industry events to promote its platform and build brand awareness.

4. Recommendations

InMobi should implement the following recommendations to address its challenges and capitalize on growth opportunities:

1. Enhance Core Advertising Platform:

  • Invest in R&D: Continue to develop innovative ad formats, targeting options, and data analytics capabilities.
  • Improve user experience: Enhance the platform's user interface and streamline the advertising process for both advertisers and publishers.
  • Expand programmatic capabilities: Offer more advanced programmatic advertising solutions to cater to the growing demand for automated ad buying.

2. Diversify Revenue Streams:

  • Expand into mobile commerce: Develop solutions for mobile commerce, such as in-app purchases and mobile payments.
  • Offer data-driven marketing services: Leverage its data analytics capabilities to provide insights and consulting services to advertisers.
  • Explore partnerships with mobile app developers: Collaborate with app developers to integrate advertising solutions into their apps.

3. Strengthen Brand Awareness:

  • Increase marketing spend: Invest in targeted marketing campaigns to reach key audiences and build brand recognition.
  • Engage in industry events: Participate in industry conferences and events to showcase its products and network with potential clients.
  • Develop thought leadership content: Create valuable content that positions InMobi as an expert in mobile advertising and data analytics.

4. Focus on Emerging Markets:

  • Invest in local teams: Build strong local teams in emerging markets to understand local market dynamics and customer needs.
  • Develop localized advertising solutions: Offer tailored advertising solutions that cater to the specific needs of emerging markets.
  • Partner with local businesses: Collaborate with local businesses to expand its reach and build trust with consumers.

5. Embrace AI and Machine Learning:

  • Integrate AI and machine learning into its platform: Leverage AI to optimize ad targeting, improve ad performance, and personalize user experiences.
  • Develop AI-powered marketing solutions: Offer AI-driven solutions that automate marketing tasks and provide insights to advertisers.
  • Invest in data science talent: Recruit and retain skilled data scientists to drive innovation and development of AI-powered solutions.

5. Basis of Recommendations

These recommendations are based on a thorough analysis of InMobi's strengths, weaknesses, opportunities, and threats. They are consistent with its core competencies in mobile advertising technology and data analytics. The recommendations also consider the needs of external customers (advertisers and publishers) and internal clients (employees).

The recommendations are attractive because they are likely to drive revenue growth, improve profitability, and enhance brand awareness. They are also aligned with the overall growth strategy of the mobile advertising industry.

Key Assumptions:

  • The mobile advertising market will continue to grow in the coming years.
  • InMobi can successfully develop and implement innovative advertising solutions.
  • The company can effectively manage its costs and maintain profitability.

6. Conclusion

InMobi is well-positioned to capitalize on the growth of the mobile advertising market. By focusing on its core competencies, diversifying its revenue streams, and embracing innovation, the company can solidify its position as a leader in the industry. The recommendations outlined in this case study solution provide a roadmap for InMobi to achieve its strategic goals and navigate the challenges of a rapidly evolving market.

7. Discussion

Alternatives:

  • Merging with a competitor: This could provide access to a larger customer base and resources, but it could also lead to integration challenges and potential cultural clashes.
  • Focusing solely on organic growth: This could be a slower and more challenging path to achieving growth targets, especially in a competitive market.

Risks:

  • Technological disruption: New technologies could emerge that disrupt the mobile advertising landscape.
  • Regulatory changes: Changes in regulations could impact the advertising industry and InMobi's business model.
  • Competition: InMobi faces intense competition from established players, which could limit its market share and profitability.

Key Assumptions:

  • The mobile advertising market will continue to grow.
  • InMobi can successfully develop and implement innovative advertising solutions.
  • The company can effectively manage its costs and maintain profitability.

8. Next Steps

  • Develop a detailed implementation plan: Outline specific timelines, milestones, and resource allocation for each recommendation.
  • Secure funding: Identify funding sources to support the implementation of the recommendations.
  • Build a strong team: Recruit and retain talented individuals with expertise in mobile advertising, data analytics, and AI.
  • Monitor progress and make adjustments: Regularly track progress against key performance indicators and make adjustments as needed.

By taking these steps, InMobi can successfully navigate the challenges of the mobile advertising market and achieve its strategic goals.

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Case Description

InMobi, a mobile advertising company, considered one of India's first unicorns, has launched a new product called Miip. InMobi hopes that the product will grow its revenue 8 times by 2018. Visually identified by a mascot, Miip seeks to re-imagine adverting by becoming a user's trusted companion on the mobile phone, introducing them to new, relevant products, much as a friend would. As the CEO and co-founder Naveen Tewari introduces the product in China, he wonders if the product will be as successful as InMobi anticipates.

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