It seems like competition in mobile now is quite fierce across lots of mobile traffic sources with tons of people running the same stuff... I'm wondering if we're in a race to the bottom similar the adult space last year or if I'm just being paranoid...
I'd like to stress that I'm not looking for hand holding here about which traffic sources / offers to go for but I would be keen to know if anyone out there is still doing decent volume on mobile now and how top heavy they think it is?
What are our thoughts on what might be the next hot areas over the next 1-2 years? Pay per call seems to be creeping in? Opportunities in rich media type ads (video, JS ads, smart watches??!)
Thanks
I think you will find that mobile traffic is only growing larger. Which means the opportunity for affiliates is growing larger.
Affiliate marketing is made up by 5-10% pioneers, the rest copy cats. So of the affiliates who are buying mobile traffic only 5-10% are trying different niches and angles, then a small portion of that are exploring new traffic sources.
If you follow the herd then it is a race to the bottom, if you start pioneering then the mobile world is your oyster.
The entire point of the arbitrage game is a race to the bottom 
But as Mr Green pointed out, increased supply is helping as well as more Global offers.
I'm seeing more Smart TV traffic. I remember reading somewhere that Cable subscriptions are down and more people are switching to internet TVs. I've been getting the odd conversion here and there with them, would be interesting to run a performance campaign direct to TV.
Just think about the Video Sales Letters I could make for penis pills 
It isn't a race to the bottom, it is just a race you gotta train for, and continuously adapt as the racetrack changes day to day.
Its not as easy as throwing up a banner, and watching the big bucks roll in while you enjoy the surf n sand sipping margaritas on some beautiful beach.
A positive mental attitude counts for a lot.
Glass half full or half empty?
For sure not, it's just that the golden days mainly in Europe, with lack of regulations, etc are gone.
Now the mobile pioneer countries have been regulated a lot by carriers/governments, so now you need to work harder to make money there. On the other hand, the emerging countries are the new gold mines until they get regulated in the future, specially for carrier billing offers and android apps. We make more money now in India, Malaysia, Bangladesh, Africa and whole Latin America, etc than we do in Europe, trying to be the pioneers there.
Also the number of mobile users is still growing non stop, RTB sources keep growing and growing, etc so there is more traffic available.
The main difference is that before you could create a campaign, optimize a bit and count the $ coming in, now you need to work hard like you do with desktop offers, finding the right offer, the right traffic source and the right angles/creatives.
I don't agree that adult is a race to the bottom 
It just got more professional and competitive.
But if you have your own marketing idea and value added site there is plenty to gain.
Again here i think that an affiliate always should use his strengths and focus on this.
Next to that i think we haven't seen the biggest push on mobile yet.
When more products/payment methods are suited to serve the mobile target group it will show plenty of new opportunities.
It's a race to the bottom if you run the same stuff everyone runs on the same sources.
Even now Adult is working for quite a few people that aren't just running the rules lander on TJ :P
I suggest testing new stuff continuously if you want to stay on top.
Reporo that shit up 
If what you are offering is an undifferentiated, commodity, me too offering, then yes, almost every industry will be a race to the bottom.
Whether it is mobile phones, or automobiles, or airlines, or mobile affiliate marketing, you need to be the innovator. Or you will be going down to the bottom very quickly.
As a newbie reading this thread, I have to say it's pure gold. A real lightbulb moment for me. I get the feeling this is what separates the men from the boys. Thanks for the insight.