2008.08 Mobile Internet Advertising - Report IAB

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All you need to know about mobile advertising. …

All you need to know about mobile advertising.

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  • 1. includes Mobile Marketing Association EMEA mobile advertising guidelines All you need to know about mobile advertising. advertising: the emerging uk market
  • 2. mobile advertising: the emerging UK market
  • 3. Contents page Contents 2 Introduction 4 What is mobile internet advertising? 9 The importance of mobile in our daily lives 12 Mobile internet advertising – what is available now? 22 Mobile advertising standards 24 Mobile marketing 26 Challenges and barriers 32 Case Study 1: Royal Navy - get the message 33 Case Study 2: Citroën 34 Our survey says: is mobile ready? 38 Conclusion 40 Jargon buster 44 Other mobile organisations 44 Acknowledgements IAB Mobile Advertising: the emerging UK market 1
  • 4. Introduction By Guy Phillipson I’m a big fan of Family Fortunes - a word association game show once hosted by Les Dennis that asked a panel of 100 people the answer to a question such as: “name something you could do in your sleep”, “name something you wear on your feet” or “name something you would use the internet for.” As a brief aside, I’ve never encountered anyone that actually took part in one of these panels, even though it’s been a lifelong ambition of mine. So allow me to be Les Dennis for a second. What if I asked you to “name a type of year”? There are many possible responses: light year, school year, financial year, leap year, the year of the cat - all common in our day-to-day vocabulary. If I were to ask 100 industry commentators on the other hand, the answers would probably be dominated with a different kind of year. The year of online, the year of the blog or the podcast, the year of user-generated-content and most recently it would seem, the ‘year of mobile’. As a medium we appear to be quite bold in our predictions of what characterises the coming year. The next 12 months have been heralded as the real turning point for mobile internet advertising, when the experience will match the technology and consumers will get over their hang-ups about using their mobile phones for something other than communication and surf ‘til their hearts’ content on the move, occasionally interacting with advertising, of course. It’s true that a growing number of people are already using mobile internet, as an ex-Vodafone man it’s an area I’m particularly excited about. They’re using it for news and entertainment, travel information and locations, price comparisons 2
  • 5. Introduction by Guy Phillipson and email. Male 16 – 34 year olds have proven to be the early adopters but other groups are steadily increasing their usage as familiarity with the medium develops. Transparency of mobile packages is improving, content is getting better and more relevant, and mobile usability is finally beginning to be addressed with the development of more and more tailor-made mobile sites and the next generation of mobile technology. We know that media owners already have established models for advertising on mobile, but have found that thus far - unsurprisingly - marketers have been relatively cautious. However, there are a number of benefits to mobile marketing that your brand can enjoy: enhanced targeting by demographic and day-part, the highly personal nature of the mobile phone, mass reach and the fact that users are likely to have their mobiles always with them and always on. Exploit these opportunities with a great creative idea and really relevant content and you’re probably on the right path. Of course that’s easier said than done, and the medium is not without “So allow me to be Les its challenges and inextricable barriers before it really hits the mainstream. So we’ve written this report with the Mobile Marketing Association to provide some key facts Dennis for a second. and useful case studies on how mobile internet advertising can work in practice. What if I asked you to Like other IAB reports, this document will present a thorough overview of the UK market as it currently stands, a profile of your audiences and what they’re doing, “name a type of year”? all the vital statistics regarding past, present and future growth as well as standards and guidelines for brands now looking to take their marketing communications even further. We’ve also asked the experts within our IAB membership to find out exactly where they think the market is headed, and I assure you it’s an essential read. So it’s safe to say that the IAB is definitely ‘going mobile’, in fact it makes sense given that many of the same rules apply to both internet advertising and mobile internet advertising. But will 2008 be the year of mobile? To be honest I don’t know, but I do know that the technology is there, I know that your consumers are ready and waiting, and I know the possibilities are endless to engage with your audiences in new and exciting ways. As an industry we’re in a transition period and 2008 - 2010 will be significant years in the development of the medium. But our advice is don’t wait until the official ‘year of mobile’ before you take that next step. Put your mobile plans into place now and you’ll be reaping the rewards indefinitely. Guy Phillipson CEO Internet Advertising Bureau IAB Mobile Advertising: the emerging UK market 3
  • 6. What is mobile internet advertising? Mobile internet advertising is any form of advertising on a mobile device that requires the internet. This can include websites designed for mobile phones, search engine marketing, traditional banner adverts, video adverts and ringtone “There are a number downloads. All of these advertising tools are already available for mobile phones. of similarities that can Mobile marketing on the other hand encompasses all of the above, but also be drawn between includes text messaging, mobile commerce and Bluetooth marketing. These traditional internet methods of marketing use mobile, but don’t necessarily use the internet. On a mobile device, you can usually tell when an application is using the internet advertising and mobile because it will either warn you in advance or a small connection symbol will appear internet advertising” at the edge of the screen (often a spinning globe). Accessing the internet on mobile can be done in a number of different ways, but the current standard in the UK is using one of two different technologies: • 3G – this stands for ‘third generation’ and allows for high speed data transfer using a mobile phone signal. It is now the standard for mobile internet connection in the UK and costs the user money depending on how much information they download. Although mobile operators now offer fixed cost monthly packages (discussed later in this report). • WIFI – stands for ‘wireless fidelity’. In the same way that computers and laptops can connect to the internet using wireless routers, mobile phones are now adding the same technology. This means that a phone can bypass the need to connect via a mobile signal, and instead connect to the internet using existing broadband connections, be it in the home, office or public place. 4
  • 7. What is mobile marketing? However, as technology develops, the lines are continuing to merge as some companies are producing systems that combine text and mobile website technology. For instance, it is possible to send a text message with a link for instant access to a website. Then, by registering on the website, it is possible to receive text alerts to be reminded when to look at the website again for updates. For the purpose of this report, we will be concentrating on mobile internet advertising and its growth in the UK. What are the similarities with internet advertising? There are a number of similarities that can be drawn between traditional internet advertising and mobile internet advertising despite being delivered and consumed differently it uses much of the same technology. Plus many of the fundamental characteristics of online advertising (interactivity, permission based etc.) still Channel 4 encourage people to send texts apply. to receive a message in return with links direct to their mobile site. In most instances, advertising is booked using exactly the same models that you already use for internet advertising, like Google’s AdWords for paid search for example. The way in which adverts are delivered is also largely the same. For instance banner adverts still appear on mobile sites next to relevant content and video adverts appear before or after video programming. What are the differences with internet advertising? The differences are largely practical: • Small screen size resulting in less space for content. • Harder to use interfaces (although this is improving). • Slower connection speeds resulting in a need for smaller file sizes. • Internet accessed on the move, away from desks. • Usually supplementary to primary internet access on computers or laptops. • Mobile internet is used for different reasons e.g. for snippets of information useful for a journey such as restaurant locations to meet a friend, timetables for trains, short news bites or TV programmes to pass the time on a train journey. Bear all of this in mind and understand what a user requires from a mobile internet experience and you will begin to realise that mobile advertising must be treated very differently. However, like internet ads, mobile ads work best when they are relevant and useful to the user and created for that particular device. IAB Mobile Advertising: the emerging UK market 5
  • 8. What is mobile internet advertising? The state of the mobile advertising market The UK mobile advertising market is in its infancy. Today, the majority of mobile “Reach and frequency advertising bought and sold is ‘on portal’, sold through third party sales-houses are a long way from (e.g. Screen Tonic for Orange, Yahoo! for Vodafone and 4th Screen for O2). their theoretical Inventory on ‘off-portal’ sites is also sold by third party specialist sales-houses maximum due to (e.g. Admob, Adinfuse) as well as some web companies like Unanimis. This allows for interest group targeting, when adverts are placed on sites depending the early stage of on the audience interested in the content of that site (e.g. sites like The Spectator, the market.” Financial Times and The Economist may attract a slightly older demographic). For on-portal advertising the ad sales model which sees mobile inventory sold according to the section of the portal where the ad appears will be replaced by a model targeting mobile users by socio-demographic profiling, behavioural analysis and location in order to provide better targeting. Measurement Buying advertising on the mobile internet is similar to buying display advertising on traditional internet. In most cases banner ad impressions can be purchased by cost-per-thousand (CPM). Prices vary according to the degree of targeting: the majority of on-portal ads sell for £10 - £20 per thousand, whilst highly targeted ads on special interest sites, or served only to certain aggregated socio- demographics or served on a search results page can sell for up to £100 per thousand. Othermobile internet site owners, predominantly publishers, sell their mobile inventory on both the CPM and cost-per-click (CPM) bases. Prices for display advertising are typically 5p - 25p per click. Highly bespoke on and off portal banner campaigns comfortably generate double digit response rates at a fractional cost of other traditional channels. Click through rates range from 0.5% (on a typical off-portal site) up to 4% (on portal), considerably higher (sometimes 15 times) than the equivalent for tradtional internet sites. Inventory Inventory is still relatively scarce because of a ‘shortage of eyeballs’. Both reach and frequency are a long way from their theoretical maximum due to the early stage of the market. Today less than a third of mobile subscribers regularly use the mobile internet and they average only one page per day (source: MMA UK). 6
  • 9. What is mobile internet advertising? The total UK inventory of page impressions is estimated at one billion page impressions per month (October 2007) but is growing at 9% month-on-month and is expected to reach over five billion by the end of 2008 (source: MMA UK). Opportunities Mobiles offer a vast number of opportunities for advertisers, but only through clever marketing that takes into consideration the needs of a consumer on the smaller device. Benefits include: • Mobiles are extremely personal because they are only used by one person; a dream for targeting and measurement. • Mobiles are always with the user, resulting in opportunities to target people in ways that no other device can. • Mobiles are always on (unless the battery runs out!) allowing the user to access advertising at any time, no matter where they are. • Mobiles are highly interactive – all mobile handsets now come with many different uses (call, text, camera, music player, web browser). • Mobiles have unparalleled reach with over 90% of the UK population owning one, if not more, handsets. Trends Accessing the internet on mobile is becoming faster and easier. 3G allows for mobile optimised web pages to load within a few seconds, almost equivalent to broadband internet access (in terms of the speed of page load). WIFI technology allows for internet access at the same speed as internet on a computer at no extra cost. As WIFI becomes more commonplace in public spaces too like cafes and hotels, mobile internet is easier and far cheaper than it has ever been. In terms of marketing, text and picture messaging (SMS / MMS) are still being used to introduce advertisers to mobile, almost as a taster for everything else mobile has to offer. However, this is gradually beginning to change as mobile advertising develops and people become more aware of what the medium can be used for. Search is being used more on mobile with operators implementing search on their own portals and other sites as well. Search has been one of the driving forces behind internet growth and the growth of internet advertising, and this is being replicated on mobile. Banner ads are already being used well across mobile internet, although it is still a very young area with a lot of improvement to be made. However, we are already seeing increased creativity with mobile banners and sponsorships. Video pre-roll and post-roll, and ad-funded content are starting to emerge. Volume is limited both in terms of current audience and advertising, but this is increasing and will continue to do so rapidly over next few years. IAB Mobile Advertising: the emerging UK market 7
  • 10. The importance of mobile in our daily lives In total, there are 60 million people in the UK, of which 48 million own mobile phones, although there are 70 million active mobile connections (active = in the last 90 days). Unsurprisingly, the profile of mobile users is fairly similar to that of the UK population. “I would feel unwanted if a whole day went by when According to the Mobile Life European Report1, the British population tend to use my phone didn’t ring or the full range of mobile features: receive a text message”. • Over half of them have used Bluetooth. • 37% have recorded a video using a mobile handset. • 27% have downloaded a music track. • Almost half of the British mobile population (46%) have accessed the internet using their mobile. • 25% have uploaded pictures or videos to the internet through their mobile. • 20% of the research respondents said that they used GPS. • 18% watched TV or video clips. • 9% used their mobile to pay bills. • 8% bought products using their mobile. The greater use of full functionality means that the mobile phone is the most important possession for 1 in 6 people in Britain – this increases to 1/3 of individuals when looking at those aged 16-24. No wonder they are emotionally reliant on their phones… indeed, 1 in 6 British people agree with the statement “I would feel unwanted if a whole day went by when my phone didn’t ring or receive a text message”. 8
  • 11. The importance of mobile in our daily lives As it is often the case with new technologies, mobile internet users tend to skew to 18-34 year-old men2. However, as with online a few years ago, this is expected to even out as usage grows. Who’s browsing mobile internet? Mobile internet usage is predicted to be driven by infotainment (entertainment information, e.g. sports and news) consumption3, as with the internet in the 57% 33% early days. men women 29% 30% 22% 11% 8% under 24 25-34 35-44 45-55 55+ Source: MMetrics August 2007 Monetising audiences via profiling Mobile operators own extensive records of their customers. Whilst operators need to respect their customers’ privacy and not share personal profile information with third parties, there is great commercial potential in creating consumer clusters based on socio-demographic characteristics, spend, usage and other behavioural information, and providing this to advertisers for precise audience targeting. This information will be available soon on an aggregated basis, as these databases are built and populated, and as common standards are achieved. Market growth 1 The Mobile Life European Report 2007 2 M:Metrics, August 2007 The mobile internet advertising industry is predicted to gather momentum over the 3 Strategy Analytics, Global Cell Update, next few years, driven by the rollout of new technologies and services from media October 2007 owners and network operators, and by the steady adoption of new services by 4 The Communications Market Report, consumers. Ofcom, August 2007 As the handset sector continues to evolve, it will ultimately drive the market for mobile internet access. By the end of 2006, there were 7.8m 3G connections in the UK, up from 4.6m for the previous year4. Penetration is expected to continue to increase rapidly over the next few years as 3G-only operator 3 (logo) has been joined by other mobile network operators (MNO) which have started migrating their subscribers onto their 3G networks. IAB Mobile Advertising: the emerging UK market 9
  • 12. The importance of mobile in our daily lives The below graph shows that over a third of people with 3G equipped phones are accessing news and information on mobile sites at least once a month: Over a third of 3G users are accessing news and info once or more in a month % of 3G subscribers using their mobile phones to carry out the following... 55.7% Took photos 78.6% 30.6% Used network services for photos/videos 47.8% 18.4% Accessed news and info 34.0% Once or more Watched any kind of mobile TV and/or video 1.3% in a month 17.1% Accessed sports information 7.5% 15.6% Total subscribers 8.4% Used email (work or personal) 15.1% 4.0% 3G subscribers Watched video sent by family or friends 14.7% Accessed social networking site or blog 2.7% 4.8% Accessed stock quotes or financial news 2.2% 4.5% 2.6% Ordered ringtone via mobile browser 3.9% Source: M:Metrics, Survey of mobile 0.9% Ordered ringtones via shortcode subscribers in the UK 1.0% Data based on 3 month moving average for 0.7% Ordered ringtone on PC and retrieved on handset period ending 31st August 2007 0.8% Source: M:Metrics, Survey of mobile subscribers in UK Data based on 3 month moving average for period ending 31st August 2007 Additionally, most mobile handsets now have internet capability. Nearly four out of five handsets sold in the first quarter of 2006 were internet-enabled3. Moreover, the introduction of unlimited data tariffs at prices as low as £5 a month means that cost will no longer be a barrier to growth of mobile internet usage. The growing number of partnerships between mobile network operators and online media owners is accelerating the improvement in mobile internet sites and enhancing customer experience to a level approaching that available to users of fixed-line internet. The graph below from M:Metrics provides a brief overview of the activities of mobile subscribers in the UK. As you can see, search activity and information such as news and entertainment are the most popular areas of usage. Utilities like the weather and maps for directions are also popular on mobile. 10
  • 13. The importance of mobile in our daily lives News/Info sections - browser access by subscribers Total and 3G Subscribers. Browser access subgenre: news/info subgenre: news/info Total and 3G Subscribers, Browser access 14.8% Search 7.2% 14.1% News 6.3% 12.9% Sports Info 6.1% 8.1% Weather 3.7% 8.0% Entertainment News 3.8% 5.1% Maps and Directories 2.3% Source: M:Metrics, Survey of mobile subscribers in the UK Movies and Entertainment 4.4% Data based on 3 month moving average info 2.2% for period ending 31st August 2007 Finally, the prevalence of more advanced mobile technology in the near future will Source: M:Metrics, Survey of mobile subscribers in UK Data based on 3 month moving average for period ending 31st August 2007 offer advertisers the opportunity to reach large numbers of consumers with more sophisticated marketing communications. Rich media will be used to convey stronger brand messages or to demonstrate products and services through the use of sound and pictures. 5 Strategy Analytics, July 2007 6 Strategy Analytics, July 2007 For these reasons, amongst others, the UK mobile advertising market in Western society is expected to grow to £187m by 20115. According to forecasts from Strategy Analytics, growth will be driven by display advertising, followed by search6. Penetration of mobile and mobile internet For several years there have been more mobiles than landlines but in 2006, for the first time, mobile penetration of households exceeded that of fixed lines in the UK. There are now more households with a mobile and no landline than the other “In Asia people access the way round. This shows that the consumer is embracing the convenience of always internet by mobile, not PC. having their mobile to hand. It is this convenience factor that means mobile has the PCs are the dinosaur.” potential to overtake the PC as the preferred way to access the internet. (Martin Sorrell, WPP) At present Vodafone estimates 27% of its customer-base regularly uses the mobile for browsing, collecting emails or instant messaging; all of which use the same WAP protocol. Vodafone predicts this figure will reach at least 50% by 2010. Mobile Internet access Mobile internet access Browse Mobile Internet 20% 27% Send/receive eMail 9% Any mobile internet Used Instant Messaging 10% services used Source: Incentivated IAB Mobile Advertising: the emerging UK market 11
  • 14. Mobile internet advertising – what is available now? With new terminology like ‘idle screen ads’ and ‘client applications’, you can begin to see why marketers aren’t yet familiar with the advertising tools mobile has to offer. However, in 2007 mobile internet advertising started creeping “Mobile internet is being onto the agenda. As talk of a ‘mobile web boom’ spread thick used by consumers and and fast, some publishers began early adoption of mobile internet advertising solutions are advertising models. As we have already discussed, mobile available now.” internet is being used by consumers and advertising solutions are available now. Brands that have kept up with the trends are already exploiting the medium. In this section we will showcase genuine and practical mobile internet advertising solutions that are available for you to use. If you aren’t familiar with them already, you soon will be. Typical mobile web actions Advertisers can run a variety of advertising campaigns. Beyond the branding opportunity of banner ads (discussed later) marketers can also use a variety of response mechanisms built into text and display ads (or within an actual text message) for example: • Click-to-call (users place an outgoing call to the advertiser) • Click-to-locate (users find the nearest supplier, e.g. car dealer, shop, restaurant or cinema etc, enabled by location-based services) 12
  • 15. Mobile internet advertising - what is available now? • Click to order brochure (users receive marketing materials by supplying their postal address) • Click to enter competition (users enter prize draw or instant win) • Click to receive email (users receive an email with links to a website by supplying their email address, enabling completion of the purchase online) • Click to receive mobile coupon (users apply for mobile coupon – possibly a barcode – which provides access to an event or store discount etc) • Click-to-buy (users make a purchase which may include some form of mobile or signatureless direct debit / credit card payment) • Click to download content (users download content, including logos, wallpapers, ringtones, onto their mobile phones) • Click to enter branded mobile internet site (users click a banner ad to connect to standing or campaign-specific mobile internet site) • Click to forward content (users forward relevant content to friends, creating a viral campaign effect) Source: MMA’s mobile advertising guidelines 2007 Mobile websites (also known as WAP sites) You’ve got to start somewhere, and establishing your own web presence is as good a place as any. Without a mobile website people will be attempting to load your full website onto their phone and probably crashing it in the process. Although a number of devices, like the iPhone, now offer a full web experience on Calvin Klein’s CKIN2U a small screen, ownership in the UK is extremely small in comparison to the mobile campaign microsite. market as a whole. In any case, even on a larger screened phone with zoom functions like the iPhone, a standard website won’t offer the best user experience because it is designed for a screen 8 – 10 times the size and situated in a more relaxed environment. Ignore the requirement for a mobile website, and your brand could fail to be usable and accessible. Considerations Remember, this is internet on the move; users don’t have time to trawl through a vast website. Think carefully about what people will and won’t require. Potentially you could include all of your online information, but the way it is accessed and presented will need to be different. A mobile site requires even fewer clicks than a standard site to reach key information. There is also less space to view content, so try to minimise the amount of content on a page. Don’t be worried about splitting long articles over multiple pages, once someone has found content they are interested in they won’t mind clicking for more, but getting them to that content in few clicks is key. Pay attention to images, particularly with text on them because images won’t scale well on phones. Also replicate graphs and charts on the mobile site pages rather than using graphics to ensure they can be viewed correctly. IAB Mobile Advertising: the emerging UK market 13
  • 16. Mobile internet advertising – what is available now? Due to the many different mobile handsets available with different screen sizes and resolutions, it can be difficult to create pages to suit them all. The easiest way is to avoid using layouts reliant on images and don’t have a fixed width. Other things to consider are linking the web and phone technology together. Telephone numbers can be linked directly from a website to a call, so ensure that ability has been added and think about expanding the amount of staff information available on the site. If someone’s late for an appointment, an email address isn’t the best use of information, but a direct line number is. Useful tools / links Test to see if your mobile site is accessible and usable on mobiles with Ready. mobi’s testing tool: http://ready.mobi/launch.jsp?locale=en_EN. Casestudy 1 As the tradebody for internet advertising, at the IAB we like to think we’re able to set a good example – we also like to make the most of a good opportunity. In 2007 the IAB decided it would need a mobile presence as an example for its members, but primarily to offer an additional service with information available on the move. Redsnapper, the web design company behind IAB’s internet site produced the mobile site in conjunction with IAB’s team, replicating the brand for the smaller screen. The specification was for a trimmed down version of the main IAB site with core information that our members would need out of the office such as contact information, event dates and locations, news and research. In depth content that would take a long time to read such as marketing guides were left off in the first phase. To visit the mobile IAB website, go to: mobile.iabuk.net 14
  • 17. Mobile internet advertising - what is available now? Search Search commands 60% of internet advertising spend in the UK. The reasons? Search is integral to everyday life and it is also highly measurable, but primarily it is so popular among advertisers because it has such a high return on investment. Likewise, on mobile, search is often the starting point for any web experience and mobile search advertising comes with exactly the same benefits as standard search. Already Google, Yahoo and the mobile operators themselves are offering mobile specific search advertising using their existing advertiser tools; in fact Google has had a ‘mobile’ tab on their Adwords console for some time. Considerations The way search is presented and used on mobile, while largely similar to internet, does bear significant differences. Due to the reduced available space, search results are limited. This usually results in 10 natural search listings sandwiched between 2 - 3 paid for listings at the top and bottom of the page. All listings have less space for text. Other than these display differences, the functionality is more or less the same. Ads are placed using the same online tools and search engine optimisation principles from standard websites are carried across to mobile. Geographical search is obviously at home on a mobile, however on the whole, search services aren’t yet able to tell advertisers the exact location of an individual without them entering the location themselves. The best example of geographic search is using a map service such as Orange Local. Useful tools / links Not only do all of the mobile phone operators have search engines built into their portals (some of which are powered by internet search engines) but the main internet search engines have gone mobile too: Google mobile: http://www.google.co.uk/m/ Yahoo mobile: http://uk.wap.yahoo.com/ MSN mobile: http://www.msn.co.uk (the site knows automatically that you are on a mobile). To place adverts on Google mobile search visit http://adwords.google.co.uk and to place adverts on Yahoo mobile search email: ysm-uk-mobile@yahoo-inc.com IAB Mobile Advertising: the emerging UK market 15
  • 18. Mobile internet advertising – what is available now? Display: text and banner ads Text and banner ads are exactly the same as internet ads but smaller. New systems such as Doubleclick’s integrated online ad booking software (DART) have made booking mobile ads part of same systems as the standard website counterparts. The systems know the size of the mobile screen, serving the correctly sized ads automatically. Measurement is already available for mobile comparable to internet banner ads, but there is room for improvement. That improvement is happening quickly with enhanced systems due in 2008. At the moment it is still possible to target based on demographics, contextual and, unique to mobile, specific mobile handsets. Considerations Size factor means there are issues around the amount of creative that can be squeezed into the smaller space (often just a logo and a small image). Download speeds mean that animated or video ads aren’t really an option just yet. If a user is in a hurry, they won’t appreciate waiting for a mobile web page to load an advert before they reach their content. There are greater differences too, created by the way people use mobile internet. People are often in a hurry when using mobile internet so they don’t browse in the same way as on standard internet, they have a predefined objective such as finding an address. Time is even more precious on mobile, so users will only click through on an ad if the incentive is particularly desirable. Inventory is still relatively scarce because of a shortage of eyeballs. Both reach and frequency are a long way from their theoretical maximum due to the early stage of the market. Today less than a third of mobile subscribers regularly use the mobile internet and they average only one page per day (source: MMA UK). Sponsorships and tenancies A sponsorship is when a company finds a website with content that matches its values and then adds advertising and their branding to the site. For example, a brand like Nike could benefit from ensuring a high profile on a sports news website. Tenancies are when a brand provides content or a service specifically for a website other than their own. For example, AOL allows holiday companies to provide services and content for their travel section receiving a percentage of the revenues. 16
  • 19. Mobile internet advertising - what is available now? Both of these are two forms of mobile internet advertising that are incredibly similar to standard internet. In principle, they are exactly the same but for the smaller screen taking into account all of the considerations required for mobile websites and display advertising. Sponsorships must take into account the reduced amount of space for graphics and messaging, aiming to really focus their campaign message. This encourages a greater selection process to find the right partner for a sponsorship and greater creativity to offer a better purpose for the sponsorship. Case study 2 – Channel 4 and Ford In 2007 Ford sponsored Channel 4’s video service 4onDemand Mobile. The level of sponsorship was minimal and non-intrusive, simply featuring the company logo and a short amount of text. This was done to raise the company’s profile by being associated with quality content and the Channel 4 brand. Video One format that has flourished only really on the internet is video. Once it had arrived it wasted no time in becoming one of the largest methods of content delivery. On mobile, video is set to be one of the driving forces behind mobile internet with the likes of Channel 4 already offering video clips, and services like iTunes offering downloadable video content for mobile devices. Advertisers are able to attach and integrate advertising within video content for mobile in exactly the same way as online. Pre-roll, post-roll and short sponsorship slots are perfectly at home on mobile video and offer all of the benefits you would enjoy online. These include contextual and demographic targeting as well as measurability in terms of how many people have downloaded the video. There are other opportunities too like advertiser funded video. The laws for advertiser funded video that apply to television don’t apply online. This allows advertisers to produce their own programmes including the products. HowTo.tv is for traditional internet, but is an excellent example of advertiser funded video that could easily be reproduced for mobile. IAB Mobile Advertising: the emerging UK market 17
  • 20. Mobile internet advertising – what is available now? However, the smaller screen size, even on larger screened mobiles, is still too small to view text used in standard TV advertising. This equates to the need for mobile specific video advertising. As with banner ads, there is less space for messaging, and clickthrough is currently impractical. Mobile video ads are a brand building and message delivery tool. Due to the high level of engagement with consumers watching on the phone, it means video advertising is one of the most powerful tools for reaching consumers on the move Selects programme cutting through the bombardment of other distractions. Example: Channel 4’s mobile 4onDemand Channel 4 recently launched their mobile video channel for their 4onDemand service. On the channel users can select from a number of video clips to download that have included Big Brother, Popworld, Deal or No Deal and Desperate Housewives. Once downloaded, each clip has a short 1 second pre-roll advert Selects episode clip attached, in this instance for the Ford Brand. The advert was to build the Ford brand with quality video content rather than for a particular Ford product. Its level of impact is obvious when looking at the user journey in the images on the left. Mobile affiliate advertising Before video clip a short ad is played Affiliate advertising is a working relationship whereby a merchant (online shop or advertiser) has consumers driven to it by ads on an affiliate (content website). If a consumer visiting the affiliate’s site clicks on a link and goes on to perform a predetermined action (usually a purchase) on a merchant’s site then the affiliate receives a commission. For example, Amazon.co.uk offers an affiliate scheme allowing affiliates to advertise products on their sites. If visitors to the affiliate sites then click through and make a purchase, the affiliate receives a percentage of the revenue. Episode starts On mobile affiliate advertising principles are, as with most mobile advertising, exactly the same as on standard internet. The differences are in the delivery and presentation of the content that we have already talked about when discussing mobile sites. 18
  • 21. Mobile internet advertising - what is available now? There is one very large consideration with regard to mobile commerce (mcommerce): trust. While a lot of the legwork has been done by reassurance through internet commerce, trust will be an issue for mcommerce initially. Ensure the same reassurances are carried across to your mobile sites with clear messaging and transparency over transactions. Example: Want it? Buy it. Wherever you are. mShopper is an affiliate that offers a comprehensive, universal mobile shopping tool. Like standard internet affiliate websites, mShopper works by partnering with merchants (usually online shops like Buy.com). By presenting products from multiple merchants, it allows users to search and compare products and prices from a broad range of different locations. From power tools to luxury handbags, mShopper lets people act on their buying impulse, any time, anywhere. This has obvious benefits. If a person is out shopping and want’s to ensure they are getting the best deal, they can simply check on their phone in store rather than waiting to get home to check on the internet or traipsing around high streets. As highlighted above, reassurance is required for mobile ecommerce and mShopper has jumped at the opportunities provided by the single mobile device. Customer service is geared up for mobile users by offering call centre support. For advertisers, mShopper also offers a blend of opportunities including banners, text ads, text messages, and direct response tools including click-to-call and click-to-buy. The site also offers banner advertising and a range of other marketing tools for merchants to raise the profile of their products. For more information and to see mShopper in action, visit: www.mshopper.net IAB Mobile Advertising: the emerging UK market 19
  • 22. Mobile internet advertising – what is available now? Client applications Client applications are, in the simplest terms, small programmes that can be downloaded on to mobile phones. Once downloaded, the applications carryout a specific task and some of these will connect to the internet each time they are accessed to download dynamic content, allowing for dynamic advertising too. The need for applications is purely for speed and accessibility. It’s far quicker and cheaper for a mobile internet user to download an application once than to download it each time they go onto a website. Complicated tools on websites can also crash mobile web browsers if they are old versions. Example: Google Maps Mobile A good example is Google Maps Mobile (http://www.google.co.uk/gmm/). Although standard Google Maps is built into a website, it is still an application that downloads quickly and seamlessly within your web browser. On computers, broadband connections are so fast that downloading and running applications within a web page isn’t an issue. However, on mobile connection speed for large files is much slower. By presenting a single download for Google Maps Mobile to be saved on the phone, this reduces the issue. Once downloaded, Google Maps Mobile connects to the internet to load the latest map images. In the same way as standard Google Maps, it’s possible to advertise addresses based on location. For instance, someone could type in ‘florist Leeds’ and the application will show the locations and details of all florists in the city. 20
  • 23. Mobile internet advertising - what is available now? Idle screen and in-game ads As well as the above discussed areas of advertising, mobile handsets allow for a number of different ways to interact, resulting in new ways to advertise! When a mobile isn’t being used an ‘idle screen’ appears equivalent to a screensaver on a computer. It’s possible for this to be used for idle screen advertising. By downloading an application onto a phone, the ads can be loaded when the phone isn’t being used. This isn’t intrusive because the user opts in to receive the ads and because the ads themselves don’t interrupt the experience. In return, the user can receive free or discounted services. Mobiles are now often capable of downloading and running games, bringing with them the ability for in-game advertising. These can range from simple graphical card games, through to fully rendered 3D worlds for golf, racing or adventure games (to name but a few). These work in very much the same way as computer or console games. IAB Mobile Advertising: the emerging UK market 21
  • 24. Mobile advertising standards Mobile Marketing Association (MMA) mobile ad guidelines The range of handsets on the market has meant advertisers need to supply multiple versions of their ads. This has acted as a deterrent to mobile advertising adoption. The five UK networks are quoted saying: To simplify the process, the Mobile Marketing Association has “We all believe that these created mobile advertising guidelines specifically for the EMEA recommendations for region, to make it easier for marketers to develop mobile advertising inventory size and aspect campaigns and protect the consumer experience while ensuring ratio, and future additions, the campaigns are delivered consistently on the majority of mobile will become the common handsets. formats.” The guidelines cover banner ads, recommended aspect ratios and banner dimensions, maximum file size, file formats and other technical specifications. The MMA plans future releases which will cover SMS, MMS, downloadables, messaging, video/TV and Bluetooth. Dimensions and aspect ratios The recommended aspect ratios for banner ads are 6:1 (default) and 4:1 (extended) because: • Having two aspect ratios provides flexibility of layout and positioning in different contexts. • 6:1 is the default recommendation that every publisher should be able to 22
  • 25. Mobile advertising standards deliver. • 4:1 is the extended size for optional use in campaigns for those who have the possibility to offer bigger ad formats within their sites. • Keeping the aspect ratio constant simplifies resizing of images and reduces effort. • Both are sufficiently large to provide an effective advertising experience, yet small enough not to be intrusive. The MMA mobile advertising guidelines are available in full here: Given the above aspect ratios it should not be necessary to give overall dimensions http://www.mmaglobal.com/ as well since ads can be resized dynamically by some serving technologies. However, emeamobileadvertising.pdf to allow for those that cannot and to aid with design the recommend widths are 120, 168, 216 and 300 pixels. What is meant by this is that the creative treatment should probably vary with the broad ranges of screensizes. What works on a PDA will not look good on an older phone and four distinct clusters of screen size are apparent. This has several benefits: • By keeping the banner widths to four sizes limits the effort of creative production. • The widths chosen provide a good fit for the majority of mobile phones, while still ensuring a minimal amount of “white space” is left on the browser to delineate the banner as an advertisement. • The widths chosen provide for an exact pixel height for both ratios defined, which simplifies scaling of the creative. Ad Size Sample Creative (approximate size) 300 px wide 216 px wide 168 px wide 120 px wide Text only link Jaguar XF File sizes and types The maximum file size for the largest static banner ad has been set at 5 KB. There is no common practice so far for animated banners. However, it is recognised that animated banners will require larger file sizes than static banners and these are being discussed presently. File types supported are JPEGs and GIFs, whilst some top-end phones support PNGs and some legacy phones still use WBMPs. IAB Mobile Advertising: the emerging UK market 23
  • 26. Mobile Marketing On top of the previously discussed mobile internet advertising tools, mobile marketing offers other powerful marketing tools mentioned in this section. “A major potential use for Text (SMS) and picture messaging (MMS) mobile phones is as an electronic wallet to pay for SMS is currently the most commonly used format for mobile marketing, accounting for 72% of spend in 2005 across Western Europe2. Whilst it can create a very goods and services.” personal experience between advertisers and consumers, the creative and character limitations mean that its use is likely to decline as other formats like MMS and mobile internet take off. By the end of the decade, MMS will be the most prevalent format, taking 48% of the market, whilst the share devoted to SMS will decline to just 23%2. Like email marketing, SMS and MMS advertising is hindered by the need for users to opt-in to receive communications. Mobile users often see push advertising as an intrusion; network operators and advertisers need to be careful not to alienate consumers. However, once advertisers have built an opt-in database, they can communicate with consumers using MMS in a highly targeted manner. Shortcode and bluetooth Shortcode can be used to solicit interest from consumers across other media. The 5 digit numbers can be included in TV, press and outdoor campaigns, encouraging consumers to text for further information. This can either be delivered directly, in the form of an SMS or MMS, or they can be sent a link to a mobile website. Bluetooth has become a popular way for consumers to transfer content face to face, between handsets. Bluetooth hotspots can be used to deliver video-clip style content on behalf of advertisers. Price and execution issues have made it a 24
  • 27. Mobile Marketing complicated addition to media plans, but as prices fall and permanent networks of Bluetooth hotspots are established, it should become far more effective. Example – HSBC using Bluetooth marketing HSBC, one of the world’s largest banks, has been trialling a new kind of location based advertising in London recently. If you are walking down Regent Street and you pass an HSBC branch office, you may receive a video ad directly onto your phone, promoting some of their banking products. The ad provides some brief information about the products, and then invites you to either send a SMS to get a call-back, or to simply walk into the branch. The bank has installed bluetooth transmitters at two of its busiest branches, Canary Wharf and Regents Street. As people walk by on the street outside, the box scans to see if bluetooth is activated on their phone. If so, it sends an un-solicited message asking if you would like to receive a free download from the bank. If they accept, they receive a small video file over bluetooth. If the passerby refuses, then no video file is sent. And the system is smart enough to keep track of which phone numbers it has sent messages to, so the same person doesn’t receive the invitation more than once. (source: MobiAdNews.com 2007) Mobile TV As well as video and TV on demand delivered through the internet on a mobile phone, some mobiles – particularly in other countries like the US and Japan – allow for a TV signal to be received. This is a standard TV signal and television programming with the regular advertising attached. In the UK this technology hasn’t taken off yet, but it potentially could be launched in the near future. It’s worth bearing in mind because consumers could be watching mobile video using a number of different methods, all of which are entirely separate from one another. Mobile commerce A major potential use for mobile phones is as an electronic wallet to pay for goods and services. A number of methods of doing this are beginning to emerge such as using visual barcodes on the screen of the mobile to be scanned in shops, through to paying by text with the cost being added to your phone bill. Another new technology is called PayForIt. It is a method of linking websites to your mobile phone allowing to pay for items such as train tickets, music and ringtones (maximum of £10) on mobile commerce sites at a click. There is no need to use credit cards because everything is done through the phone bill. It has strong levels of security to ensure consumers are completely protected. “Payforit allows the same click-to- buy user experience offered on-portal but from any WAP page.” MobileIndustry.biz. IAB Mobile Advertising: the emerging UK market 25
  • 28. Challenges and barriers No emerging medium is without its barriers to growth, and hurdles that must be overcome by the industry in order for it to be welcomed as a marketing channel by advertisers and consumers alike. We • Awareness of mobile internet have summarised these challenges as: • Cost of mobile internet • Lack of functionality Awareness of mobile internet • Accessing user data One of the greatest barriers to mobile internet usage is consumer awareness: only • Caution 44% of mobile users are aware they can access the internet on their handsets • Industry experience (source: Ofcom). This situation will change rapidly as mobile operators promote • Targeting the arrival of the mobile internet with advertising campaigns to their customers. • Advertisers • Agencies Subscribers’ awareness of the features of their mobiles: Awareness and use of mobile phone features, June 2007 50% Percentage of mobile users 15+ 44% 40% Aware 35% 32% 29% 27% mobile has 30% capability 20% 10% 10% 0% Internet Email Download Download Instant Watch TV access access and view and listen Messenger video clips to music Source: Ofcom research 26
  • 29. Challenges and barriers Cost of mobile internet Cost has been an impediment to growth of mobile internet but in the last twelve months the mobile networks have introduced flat-rate tariffs, though mainly for contract customers. Over time, subscribers will migrate to these new tariffs as their existing contracts come to an end. Data charging: Network Monthly Charge Data Bundle O2 £7.50 Unlimited* Orange £8 Unlimited* Three £5 Unlimited* T-Mobile £7.50 Unlimited* Vodafone £7.50 120MB * Subject to fair usage policy Lack of functionality Technology is not holding back the growth of mobile internet usage. Today’s handsets are mobile internet ready, shipped with XHTML functionality which allows for website browsing. However, usability has been cited as a potential barrier to consumer acceptance of mobile internet and whilst the technology is here, we know from years of internet study that usability and a pleasant surfing experience must be at the fore. WAP ready handsets: Mobile handset sales with XHTML Handsets are more complicated than PCs because of the multitude of makes, models, operating systems and screen sizes; just the popular Sony Ericsson K800i has gone through over ten changes to its operating system generating a different User Agent Profile each time. Some allow for both portrait and landscape displays at the flick of a switch, making designing for mobile web more challenging than for the PC. Advanced mobile marketing and advertising agencies use software which can identify each handset type and render content for optimal viewing quality, as well as Penetration vs complexity, hiding functionality that one particular handset might not support or offering content of handsets: Penetration vs for download in different file types. complexity of handsets: As the chart below shows, penetration of the top-end phones is significantly lower than mainstream devices (source: data from Incentivated’s WAP servers/phone models are illustrative). IAB Mobile Advertising: the emerging UK market 27
  • 30. Challenges and barriers Handset distribution The three most popular handsets in the five main markets of the EU are the Nokia 6230i, Nokia N70 and Motorola RAZR. All three offer internet access, and are used by an estimated 16m people in these five countries. (source: M:Metrics and Incentivated) Top 10 handsets in UK, Germany, France, Spain and Italy: Handset EU Share Nokia 6230i 1.8% Nokia N70 1.7% Motorola RAZR 1.5% Sony Ericsson K800i 1.1% Nokia 6230 1.0% Sony Ericsson K750i 1.1% Nokia 6630 0.9% Sony Ericsson W810i 0.9% Nokia 6280 0.9% Nokia 3310 0.9% Manufacturers’ global market shares: Manufacturer 2005 Units (m) 2006 Units (m) Nokia 265 355 Motorola 146 208 Samsung 103 108 Sony Ericsson 52 75 LG 55 65 Siemens/BenQ 40 32 Blackberry 4 8 Others 168 136 28
  • 31. Challenges and barriers Access to user data There is currently no information on user behavioural patterns for mobile internet; no information on which mobile sites are used by which users. While young men can be reached, figures discussed earlier in the report show that other groups aren’t using it in as large numbers. No common information is reported by sites on who their users are, how they browse, etc. This creates a fundamental barrier to many companies that simply can’t create a business case without this kind of information. The situation is improving gradually, but there is still a lot more that publishers and the mobile operators can do to provide the tools necessary for advertisers to invest in mobile. Industry experience Mobile internet advertising at the moment has developed into a number of silos whereby a small number of companies with good experience and understanding do exist in certain areas. However, there are very few people or companies that can work effectively across all the areas of mobile internet advertising that we discussed earlier: • SMS/MMS messaging ads • Search • Display, e.g. banners • Video e.g. pre/post roll • Proximity/Bluetooth There are lots of companies in the market who approach brands and agencies with good ideas for mobile advertising, but many of them haven’t really launched yet, and it’s hard for the agencies to know which ones will be around in a year’s time. Targeting Most campaigns require some level of targeting, but it is hard to support that in mobile, even age/gender/city information can be hard to get at the moment. The audience itself, while growing, is too small for multilevel targeting so it is best to keep targeting at a broad level. IAB Mobile Advertising: the emerging UK market 29
  • 32. Challenges and barriers Advertisers To begin with, advertisers themselves tend to have minimal to no experience working with mobile campaigns – so they have nothing to measure against. It is unlikely that companies are well equipped with the knowledge or resources to make a business case for a mobile campaign, let alone to initiate one. One of the biggest problems however, is that brands haven’t even begun to experiment with mobile, and so there is a total lack of mobile assets like mobile sites. Subsequently there is no understanding of the impact of mobile, resulting in a lack of will to try it. All of this is something that can easily be rectified by taking experimental baby steps into mobile. Internet advertising agencies Internet advertising agencies, in general, don’t yet have the resources to deal with mobile either; without brands investing in the medium, it is difficult to justify the additional cost. Again, there is often a lack of technical knowledge and experience particularly over an understanding of what mobile advertising options are available. These issues cause further problems as many agencies simply don’t know what it takes to make a mobile site or how to achieve campaign objectives on mobile. This situation is being rectified as advertiser interest picks up and agencies begin investing resource to mobile. 30
  • 33. Challenges and barriers IAB Mobile Advertising: the emerging UK market 31
  • 34. Case study: Royal Navy – Get The Message An excellent example of the creative use of mobile advertising and cross media integration is the Royal Navy’s ‘get the message’ campaign - www.getthemessage.net. – created by the agency Glue. The campaign’s aim was to raise awareness of the variety of different careers possible in the Navy and to change people’s perceptions of the organisation. To do this, the campaign drove people to the site using offline advertising and traditional online advertising through web banners and search. Once on the site, users are able to send customised video messages by email and mobile. By entering a short message and a friend’s mobile number on the site, a message is sent to the friend’s mobile allowing them to download the video clip in a matter of seconds. The clip then plays for roughly 30 seconds with a real member of the Navy presenting the typed message live during the video. Not only does it all work and function extremely well, it is simply a great example of mobile creativity at its finest. 32
  • 35. Case study: Citroën Objective The objective of the campaign was to raise awareness of the Citroén brand and to strengthen brand identity to those who may not consider it when purchasing a new car. Citroén also wanted to highlight the many motoring innovations they have introduced to the market since 1919. Of secondary importance was the requirement to fulfil the following: • Video downloads • ‘Find my nearest’ dealer • Brochure ordering • Email data-capture Parties Involved The branding was conceived by Pexton Searle, Euro RSCG was responsible for the creative, OMD UK bought the ads from Screen Tonic (Orange and Mippin), 4th Screen (O2), Yahoo! (Vodafone) and Unanimis (various off-portal sites). Incentivated built and hosted the mobile internet site and produced the WAP banner ads. Solution A mobile banner advertising campaign ran on three of the UK’s major operator portals and various off-portal WAP sites. The ads linked to a dedicated mobile internet site, from where browsers could view a history of the Citroén brand, order a brochure, locate their nearest Citroén dealer download video clips. Users of the site could also submit their email address to subscribe to the Citroén e-newsletter. IAB Mobile Advertising: the emerging UK market 33
  • 36. Our survey says: is mobile ready? In November 2007 the IAB ran a small survey of its membership – an authoritative and knowledgeable voice in internet advertising “Mobile is the future way the – to find out if the internet advertising industry is ready to step internet will be surfed.” into mobile. 41 companies responded from a mix of agencies, advertisers, publishers and other industry organisations as detailed in the below table: Answer Count % Agency 21 51.22% Advertiser 6 14.63% Publisher/Media Owner 10 24.39% Other 4 9.76% TOTAL 41 100% 34
  • 37. Our survey says: is mobile ready? The aim was to learn more about the opinions on mobile advertising from those working in the internet advertising industry. The questions asked were: 1. If/when do you see mobile advertising becoming a mainstream medium? 2. For what reasons do you think mobile would be successful as an advertising medium? 3. What is the one determining factor that would encourage you/advertisers to begin testing mobile advertising? 4. Do you view mobile and internet advertising as being connected or entirely different mediums? Chart showing when respondents felt 5. What are the main barriers to growth for mobile internet advertising? % of 3G subscribers using their mobile phones to carry out the following... mobile advertising would become a 6. What role should mobile phone operators play in mobile internet advertising? mainstream medium 2008 - 8 2009 - 11 Once or more in a month 1. If/when do you see mobile advertising becoming a mainstream medium? Never - 3 As stated in the introduction, commentators seem very keen to pinpoint exactly 2011 - beyond - 3 when a medium or format will really take off. We asked our panel of experts if, and Other - 2 when they thought this would be the case for mobile internet advertising. 2010 - 14 Our respondents were mixed in terms of when they thought mobile advertising would hit the mainstream with the majority opting for between 2008 – 2010 with one agency saying mobile advertising “Will seriously start in 2008 but [will not be] Source: M:Metrics, Survey of mobile subscribers in UK mainstream before 2010”. Data based on 3 month moving average for period ending 31st August 2007 Advertisers in particular were cautious: “I’m really undecided about mobile, it is clearly a huge opportunity to have brands in people’s pockets but the intrusive nature of pushing messages into a highly personal space is a major barrier. This is not helped by the fact that many of the networks seem to be establishing very traditional media models to their offering with a clear focus on selling space for push communications.” “I believe that mobile ads will have to be permissioned or requested if they are ever to take off (due to the personal nature of a mobile phone). At present mobile technology doesn’t support an ad that is good enough that anyone would want to see.” IAB Mobile Advertising: the emerging UK market 35
  • 38. Our survey says: is mobile ready? 2. For what reasons do you think mobile would be successful as an advertising medium? • Personal and intimate – unique to the individual, creates a one-to-one marketing relationship The majority of our panel listed similar reasons for the potential success of mobile advertising which can be summarised in order of popularity to the left. • Response – built in and easy to use response mechanisms (call, text, email, interact) Some were unsure about the future success of mobile advertising with one person stating “… it is too invasive”. • Engagement and relevance • Location - always with the user However, the majority of responses had very specific factors in mind for mobile’s • Immediate success such as “The personal / high emotional connection between user and vehicle is both the advantage but also the challenge.” And “I take three things • Targeted and timely – you can out the door in the morning - keys, wallet and phone.” reach who you want, when you want, where you want Quite dramatically, one respondent believed that mobile is “the future way the internet will be surfed”. 3. What is the one determining factor that would encourage you/advertisers to begin testing mobile advertising? • Consumer demand / volume This question provoked a wide range of very specific answers, which have • Cost - including risk-free been collated under the headings to the left in no particular order. However, the advertising predominant requirement was for more evidence in the success and effectiveness • Proven results and ROI of the medium. • Measurability – using unified numbers across portals One individual felt consistency for measurability was the key to increase transparency • Market research and case studies for the medium: “As mentioned at the IAB’s Engage 2007 conference, there has • Guidelines - for publishers and to be consistent and comparable measurability for mobile. At present there are advertisers agreed standards for this but data owners need to open this up to independent • Targeting testing and scrutiny to build trust and confidence in the medium.” • Higher speeds (over 2MB) Again, echoing the need for more reassurance in the medium was the following • Nothing at this stage – too soon response: “Information. Case studies and knowledge of the universe and what is possible within it. Still seems intrusive and irrelevant and for a small minority which I’m sure is not true but it’s tricky to understand how we make it work for clients who are cautious and believe their brand is ‘safer’ elsewhere where they know how to measure it.” 36
  • 39. Our survey says: is mobile ready? 4. Do you view mobile and internet advertising as being Chart showing how many respondents felt mobile internet and traditional connected or entirely different mediums? internet advertising is connected Over half of the people that answered thought mobile and internet advertising were Both, 5 connected, while 11 people felt it was either different or entirely different. 5 people felt they were both different and connected for the same reason. One respondent firmly placed the emphasis on the consumer: “Absolutely connected. Should be fully integrated and viewed from the consumer’s perspective. Should Different, 11 Connected, 20 be integrated offline too.” 5. What are the main barriers to growth for mobile internet advertising? • Knowledge – of what’s available Answers to this question were quite widespread and have been separated into the and possible categories on the right. Most people only included one or two of these categories • Size of audience advertising in their answer. • Belief in the medium Like question 3, it was measurement, research, audience and reassurance in the • Research medium that were seen as the main barriers by the majority of respondents. Exact • Formats parallels can be drawn with the state traditional internet advertising was in a few • Current targeting capabilities years ago. With more research and focus on the medium we are confident these • Technology – usability, screen size barriers can be rectified. and functionality • Price for consumers • User experience - faster mobile 6. What role should mobile phone operators play in internet speeds mobile internet advertising? • Creativity • Opt-in is sometimes required Again, there were very specific answers to this question with a real mix of categories. Some people felt operators should have no role in mobile internet advertising, some felt they should play a supportive role, while others felt they should take the lead. • Data sharing – offering reporting data • Education of the market • Spam prevention • Take the lead – play a pivotal role by forming a united front • Standards • Opt-out lists • As media owners, not controllers of the channels • None IAB Mobile Advertising: the emerging UK market 37
  • 40. Conclusion From our perspective at the IAB, looking into the emerging mobile market is like stepping back in time about five years or so. Around 2002, marketers were becoming aware that their audiences were flocking online, but they were largely at a loss when it comes to reaching them. A lack of case studies and insight into specific audience behaviour, coupled with technical limitations of the medium “Mobile, arguably, has were identified as major impediments to the growth of online. The ever-increasing even more potential for market share of internet advertising is testament to the fact that these challenges marketers than online did were in no way insurmountable and the online spend continues to buoy that of the in its infancy.” entire advertising industry. Mobile, arguably, has even more potential for marketers than online did in its infancy. The mobile phone is the media equivalent to a swiss army knife for the twenty-first century: it can do everything besides get a stone from a horse’s hoof and even that function may appear on fifth generation handsets! The mobile phone is personal, consumers engage with it everyday, wherever they are – and nearly everyone has one. It is both practical and entertaining. In short it is the essential media device for the majority of consumers. The above benefits may also make mobile advertising a slightly tougher needle to thread than online. As we have seen throughout this report, issues of getting consistency of formats across a number of operators, a lack of quality content currently on mobile internet and the crucial problem of not being intrusive, mean that despite mobile being very much on the agenda of marketers, there is still a degree of caution. 38
  • 41. The importance of mobile in our daily lives This report has shown, however, how these issues are being addressed and how marketers are finding imaginative ways to reach their audience wherever they are, on their mobile. As with online, there is no rulebook for mobile advertising, it is uncharted territory for us all. Mistakes will be made and we will learn from them and it will be the brave marketers who get on board early who will benefit once mobile marketing reaches the levels of traditional internet advertising of today. The IAB will be there throughout the exciting journey, and to coin a rather apt phrase, we are sure that for mobile advertising; “the future’s bright…” IAB Mobile Advertising: the emerging UK market 39
  • 42. Jargon buster Word Definition Ad Impression An advertisement impression transpires each time a consumer is exposed to as advertisement (either appended to an SMS or MMS message, on mobile web (WAP) page, within a video clip, or related media). to strengthen brand identity to those who may not consider it when purchasing a new car. Citroén also wanted to highlight the many motoring innovations they have introduced to the market since 1919. Ad Unit Any defined advertising vehicle that can appear in an ad space inside of an application. For example for the purposes of promoting a commercial brand, product or service. Banner Size The width and length dimensions (typically presented in pixels) of a banner/image advertisement placed on the mobile internet. Call to Action (CTA) A statement or instruction, typically promoted in print, web, TV, radio, on-portal, or other forms of media (often embedded in advertising), that explains to a mobile subscriber how to respond to an opt-in for a particular promotion or mobile initiative, which is typically followed by a Notice (see Notice). Click to Call A service that enables a mobile subscriber to initiate a voice call to a specified phone number by clicking on a link on a mobile internet site. Typically used to enhance and provide a direct response mechanism in an advertisement. Cost per Thousand A metric used to price advertising banners. Sites that sell advertising may guarantee and advertiser a certain number of impressions (number of times an ad banner is served and presumably seen by visitors) and then set the cost based on the guarantee, multiplied by the CPM rate. CRM Customer Relationship Management. D2C Direct to Consumer. Dynamic Ad Delivery Based upon predetermined criteria, Dynamic Ad Delivery is the process by which a mobile advertisement is delivered, via a campaign management platform, to a publisher’s mobile content. GPRS General Packet Radio Service or ‘2.5G’ is an underlying mechanism for the networks to deliver Internet browsing, WAP, email and other such content. The user is ‘always connected’ and relatively high data rates can be achieved with most modern phones compared to a dial-up modem. Most phones default to using GPRS (if capable), and Incentivated is able to develop services that utilise this delivery mechanism. Graphic Banners A graphic mobile ad represented by a banner featuring an image. Similar to a web banner but with lower size constraints (See Banner Size). 40
  • 43. Jargon buster Definition Word Global Standard for Mobiles. The set of standards covering one particular type of mobile GSM phone system. Internet Advertising Bureau, the trade association for the internet advertising industry. IAB An image on a mobile internet site with an active link that can be clicked on by the subscriber. Image Ad Once clicked the user is redirected to a new page, another mobile internet site or other destination where an offer resides. A business metric for counting the number of times mobile subscribers have viewed a Impressions particular page, mobile advertisement on a mobile internet site of embedded within a text message or similar mobile medium. The page or view to which a user is directed when they click on an active link embedded Landing Page (Jump Page) in a banner, web page, email or other view. A click through lands the user on a jump page. Sometimes the Landing Page is one stage upstream from what would ordinarily be considered the Home Page. A range of services that are provided to mobile subscribers based on the geographical Location Based Services location of their handsets within their cellular network. Handsets do not have to be equipped (LBS) with a position-location technology such as GPS to enable the geographical-trigger of service(s) being provided since the location of the cell-site can be used as a proxy. Assisted GPS combines cell-site information with satellite positioning for a more accurate read. LBS include driving directions, information about certain resources or destinations within current vicinity, such as restaurants, ATMs, shopping, movie theatres etc. LBS may also be used to track the movements and locations of people, as is being done via parent/child monitoring services and mobile devices that target the family market. An advertisement or service through which an advertiser’s bricks and mortar location can Locator be identified based on proximity of the consumer or their preferred location) can be LBS or user defined postal code). A form of advertising that is communicated to the consumer/target via the handset. This Mobile Advertising type of advertising is most commonly seen as a Mobile Internet banner (top of page), Mobile Internet Poster (bottom of page banner) and full screen interstitial, which appears while a requested mobile internet page is “loading”. Other forms of this type of advertising are SMS and MMS ads, mobile gaming ads, and mobile ads (pre, mid and post roll). The Mobile Marketing Association (MMA) is the premier global non-profit association that MMA strives to stimulate the growth of mobile marketing and its associated technologies. The MMA is an action-oriented association designed to clear obstacles to market development, to establish standards and best practices for sustainable growth, and to evangelize the mobile channel for use by brands and third party content providers. The MMA has over 500 members representing forty-plus countries. IAB Mobile Advertising: the emerging UK market 41
  • 44. Jargon buster Word Definition Mobile Data Services Includes SMS, MMS, WAP, LBS and video. MSISDN Mobile Subscriber Integrated Services Digital Network. The mobile phone number of the participating customer. Notice An easy-to-understand written description of the information and data collection, storage, maintenance, access, security, disclosure and use policies and practices, as necessary and required of the entity collecting and using the information and data from the mobile subscriber. Off-Portal Point of sale/access on the mobile network, but outside of the operator’s “walled garden”/ portal/deck, where consumers can access/purchase information and mobile products/ content/utilities. On-Portal Point of sale/access within the operator’s “walled garden”/portal/deck, where consumers can access/purchase information and mobile products/content/utilities. Placement The area where an advertisement is displayed/placed within a publisher’s mobile content. Portal A browseable portal of links to content, pre-configured usually by the network operator, and set as the default home page to the phone’s browser. Post Roll The streaming of a mobile advertising clip after a mobile TV/video clip. The mobile advert is usually 10-15 seconds. Pre-roll The streaming of a mobile advertising clip prior to a mobile TV/video clip. The mobile advert is usually 10-15 seconds. PSMS Premium SMS. A text message that is charged at a premium over the standard rate. SIM Subscriber Identity Module. A removable part the mobile phone hardware that identifies the subscriber. SMPP Short Message Peer-to-peer Protocol - used for exchanging SMS messages. SMS Short Message Service. SMSC Short Message Service Centre. A network switch for routing SMS traffic. SS7 Signalling System 7. A worldwide standard for telecommunications hardware to talk to each other. Text Ad A static appended text attached to an advertisement. 42
  • 45. Jargon buster Definition Word Creative use for mobile advertisements – represented by highlighted and clickable text(s) Text Link with a link embedded within the highlighted text. Usually limited to 16-24 characters. Universal Mobile Telephony Service or ‘3G’ offers comprehensive voice and multimedia UMTS services to mobile customers by providing very high data rates and new functionality such as data streaming. 3G phones are backward compatible and can access all the services that 2 and 2.5G phones can, except that in this case, data can be transferred a lot quicker. This means that any service that Incentivated can currently provide, will work on the newer phones whose experience can be enhanced specifically based on handset type. Virtual Mobile Network Operator. A company that uses the infrastructure of an existing VMNO (licence-owning) telecoms network operator. Tesco and Virgin are two of the largest VMNOs in the UK. Wireless Application Protocol. Brings Internet content such as news, weather, travel, etc WAP to mobile phones and can also be used to deliver formatted content such as wallpapers, ringtones, video, games, portals and other useful links. Incentivated provide the mechanisms to write and deliver mobile Internet content to subscribers. Wireless Markup Language aka WAP 1.0. Where the mobile internet started many years WML ago. Hardly supported any more. Extensible Hypertag Markup Language aka WAP 2.0. The language used to create most XHTML mobile internet sites. Extensible Markup Language. Language used by many internet applications for exchanging XML information. IAB Mobile Advertising: the emerging UK market 43
  • 46. Other mobile organisations Alongside the IAB, there are many different organisations available to marketers wishing to use mobile as a marketing tool. Here is a selection: MobiAdNews.com – http://www.mobiadnews.com GSMA - http://www.gsmworld.com MDA (Mobile Data Association) - www.themda.org MMA (Mobile Marketing Association) - www.mmaglobal.com M:Metrics - http://www.mmetrics.com/ Acknowledgements Mobile Marketing Association (MMA) Key IAB contributors: Jack Wallington Laurence Bird Sorcha Proctor Amy Kean Guy Phillipson Ben Butler With special thanks to: Robert Thurner - Commercial Director, Incentivated and part of the MMA’s EMEA Mobile Advertising Committee Jonathan Bass - Managing Director, Incentivated and MMA’s UK Chairman. Jim Cook (MobiAdNews.com and chair of IAB’s Mobile Council). 44 Design and artwork by HBM Communications www.hbmcommunications.com
  • 47. mobile advertising: the emerging UK market
  • 48. Internet Advertising Bureau, Ingram House, 13-15 John Adam Street, London, WC2N 6LU, Tel. 020 7886 8282, email: info@iabuk.net w w w . i a b u k . n e t