Nowadays, digital marketing is the most common type of advertisement used by advertisers. Do you know InMobi was one of the first digital advertisers in our country? It was founded in 2007. That was 16 years ago! Was InMobi really ahead of its time or did it change its strategy? Well, the answer is, InMobi went through a business pivot that proved to be successful. Apart from the business pivot, its success lies in its effective business model. So, in this write-up, we will decode the InMobi business model and explore its diverse revenue sources.
Journey of InMobi
First of all, let’s talk about InMobi’s journey. In 2007, it was founded as an SMS-based advertising and search engine service. At that time, its name was mKhoj meaning mobile khoj or search. Although, mKhoj was going well and good. The company was earning decent revenue.
Then, why did it pivot its business model? You may ask.
Because it was not sustainable. With a far-sighted vision, the founders felt the need of expanding the startup with a sustainable business model.
They realized the fact that affordable internet and smartphones will soon storm the country. As a result, SMS-based services will decline drastically.
Because, according to them, people will switch over to the Internet. This exact phenomenon happened in real life after the expansion of internet services in 2016.
That’s why InMobi shifted its focus from SMS-based services to mobile advertising. It is a type of digital marketing. Also, they rebranded the company as “InMobi.” It was one of the most successful business pivots in Indian history.
This step contributed to enormous revenue earnings that ultimately helped the company to scale up.
InMobi didn’t stop at that! It continues to create numerous software by leveraging the latest technologies and artificial intelligence for mobile marketing. Thus, it ensures that advertisers’ money is spent well and consumers have a great experience.
InMobi: A Brief Overview
By now you must have got the idea about this digital marketing startup. InMobi is a global mobile advertising platform that offers a variety of solutions for advertisers, publishers, and developers. Its function revolves around mobile advertising, data-driven insights, and technology platforms.
Before diving deep into the InMobi business model, let’s have a quick overview of the company-
|Type of Company||Private|
|Industry||Digital Marketing Industry (Mobile Advertising)|
|Founders||Naveen Tiwari (CEO), |
and Abhay Singhal
|Market Valuation (As of 2014)||$1.5 billion (Rs.12,300 crore)|
Now, let’s delve into the InMobi business model.
(A) Working Strategy: How Does InMobi Work?
InMobi operates through a combination of technology, data analysis, and partnerships to deliver its mobile advertising solutions. The following points will provide a breakdown of InMobi’s working strategy-
(A.1) Mobile Advertising
InMobi enables advertisers to reach their target audience through various mobile advertising formats. It means that advertisers can create engaging content using InMobi’s platform. They can utilize any of the following mobile advertising formats-
- Display Ads
- Video Ads
- Native Ads
- In-App Ads
It provides a platform that connects advertisers with app developers and publishers. Thus, it allows them to display ads within mobile apps and websites.
(A.2) Advertising Solutions
InMobi offers advertisers a suite of solutions to optimize their mobile advertising campaigns. This includes audience targeting capabilities based on-
- User Demographics
Advertisers can leverage these tools to reach the right audience at the right time and maximize the effectiveness of their ad campaigns. This is an effective digital marketing tool.
(A.3) Ad Campaign Management
InMobi provides tools and dashboards for advertisers to set up and manage their mobile ad campaigns. Advertisers can define campaign objectives, budget, and targeting criteria, and monitor the performance of their campaigns in real time.
(A.4) Publisher Integration & Monetization
- App/Website Integration: InMobi partners with app developers and publishers to integrate its advertising SDK (Software Development Kit) into their mobile apps or websites. This SDK enables publishers to display ads seamlessly within their content.
- Ad Placement Optimization: InMobi provides tools and guidelines to help publishers optimize the placement and design of ads within their apps or websites. This ensures a balance between user experience and revenue generation.
- Publisher Monetization: This mobile ad company helps app developers and publishers monetize their mobile apps and websites by displaying ads. As you have read above, it provides an ad-serving platform that enables publishers to integrate ads seamlessly into their content.
Thus, it helps to generate revenue through ad impressions and clicks. InMobi also offers tools for optimizing ad placements and improving user engagement.
(A.5) Data-Driven Insights
InMobi leverages the vast amount of data generated by mobile users to provide actionable insights to advertisers and publishers. It collects and analyzes data related to users-
- Device information
- App usage patterns
- Other contextual data
This allows businesses to make informed decisions about their advertising strategies. InMobi’s data-driven insights help advertisers target the right audience and optimize their ad campaigns for better results.
InMobi collaborates with various industry partners, such as mobile app developers, publishers, ad networks, and demand-side platforms (DSPs), to expand its reach and provide a comprehensive mobile advertising solution.
They integrate their technology with partner platforms to enable seamless ad delivery and optimize the monetization process.
We can classify the InMobi partnerships into two types-
- Publisher Partnerships: InMobi collaborates with a wide range of app developers, publishers, and content providers to expand its ad inventory and reach. They integrate their technology with partner platforms to enable seamless ad delivery.
- Advertiser Partnerships: InMobi works with advertisers directly or through partnerships with ad agencies, demand-side platforms (DSPs), and other advertising platforms to access a diverse range of advertising demand.
(A.7) Innovation and Research
This is a crucial part of InMobi’s working strategy. Its research and development is focussed on the following two things-
- Emerging Technologies: InMobi invests in research and development to explore emerging technologies. Such as augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) to enhance its mobile advertising solutions.
- Product Development: It continuously iterates and improves its technology platforms and tools to meet the evolving needs of advertisers and publishers. InMobi strives to stay at the forefront of mobile advertising innovations.
(B) Revenue Sources: How Does InMobi Make Money?
It makes money through its diverse revenue sources in the mobile advertising ecosystem. This is the most significant part of the InMobi business model. The revenue sources are-
(B.1) Revenue Sharing Model
InMobi typically follows a revenue-sharing model. Here, the firm receives a portion of the advertising revenue from app developers and publishers.
Their mobile apps or websites display ads through the InMobi platform. And the revenue generated in the process is shared by both advertisers and InMobi.
(B.2) From Advertisers
As you have read above, the advertisers run mobile ad campaigns from the InMobi platform. In this process, the advertisers allocate a portion of their advertising budgets. Advertisers pay for the following features of their campaigns-
- Ad impressions
Also, InMobi offers various pricing models based on the terms and agreements with the advertisers-
- CPM (Cost Per Impression)
- CPC (Cost Per Click)
- CPA (Cost Per Action)
(B.3) Ad Serving Fees
InMobi charges fees for serving and delivering ads through its platform. These fees are charged as per the following factors-
- The volume of ad impressions
- The complexity of Campaign setups
- Level of targeting & optimization needed for the ad campaigns.
(B.4) Technology Licensing
InMobi develops and maintains its technology platforms, which include ad-serving infrastructure, real-time bidding (RTB) systems, analytics tools, and data management capabilities.
InMobi may license its technology to other advertising platforms, ad networks, or demand-side platforms (DSPs) to power its mobile advertising operations. Licensing fees can be a significant revenue source for InMobi.
(B.5) Value-Added Services
InMobi also offers additional value-added services to advertisers and publishers. Such as creative design and optimization, audience segmentation, advanced targeting capabilities, or consulting services. These services generate additional revenue streams for InMobi.
(C) Marketing Strategies of InMobi
It employs several marketing strategies to promote its mobile advertising solutions and establish itself as a leader in the industry. Some of the major ones are-
(C.1) Content Marketing
InMobi positions itself as a thought leader in the mobile advertising space by creating and sharing valuable content. This includes blog posts, whitepapers, case studies, and industry reports that highlight the latest trends, insights, and best practices in mobile advertising.
By providing educational resources, InMobi aims to establish credibility and attract the attention of advertisers, publishers, and industry professionals.
(C.2) Digital Advertising & Retargeting
InMobi leverages digital advertising channels to reach its target audience. It runs targeted online advertising campaigns across various platforms. It includes search engines, social media, and display networks.
InMobi utilizes retargeting techniques to engage with website visitors who have shown interest in their solutions, encouraging them to revisit the website or take specific actions.
(C.3) Relationship Building with Clients
InMobi emphasizes building strong relationships with its customers and partners. It has dedicated account managers and customer support teams. They provide personalized assistance, address queries, and ensure client satisfaction. By focusing on relationship building, InMobi aims to foster long-term partnerships, generate referrals, and repeat business.
InMobi’s mobile advertising empire is built on data-driven insights and cutting-edge technology. It connects advertisers with app developers and publishers, delivering targeted ad campaigns that captivate audiences. By leveraging a global presence and strategic partnerships, InMobi empowers brands to reach their target consumers effectively.
Its efficient working strategies and content marketing made it a trusted industry authority. With a focus on building relationships, it provides personalized support and innovative solutions to drive customer success. InMobi’s revenue streams like advertisement revenue share, value-added services, and technology licensing, ensure a robust and sustainable business model.
Thus, you can say InMobi business model is the secret to making it a kingpin in the world of mobile advertising.