McKinsey - Mobile advertising in an on-demand world

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It is not about mobile; it is about devices – and they will only proliferate. These devices are further empowering consumers, who now expect marketers to give them what they want when they want it …

It is not about mobile; it is about devices – and they will only proliferate. These devices are further empowering consumers, who now expect marketers to give them what they want when they want it “on-demand”. Customer demands across the decision journey vary, as should your goals. When it comes to mobile, companies are facing significant struggles with trying to make it a simple ad buy.

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  • 1. Mobile Advertising in anOn-Demand WorldIgnition, Business Insider ConferenceNovember 28, 2012CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited
  • 2. It is not about mobile, it is about devices – and they will only proliferate@davidedelman CMSOForum.mckinsey.com |1
  • 3. Empowered consumers expect marketers to support them “on-demand” I want it NOW LET ME break a compromise Make it just FOR ME It better be SIMPLE@davidedelman CMSOForum.mckinsey.com |
  • 4. Customer demands across the Decision Journeyvary, as should one’s goals Influencer of the influencers Discovery Personalized shopping facilitator assistant Breakthrough Sales closer engager Valued alterter Participation Personal enabler services provider@davidedelman CMSOForum.mckinsey.com |3
  • 5. Big struggles with trying to make mobile a simple ad buy 1 Astounding ▪ Not just size and placement, but also the complete nature of the experience complexity for small ▪ Limited process automation scale buys ▪ Whose data for ads and messaging? 2 Everybody is a media ▪ Retailers, malls ▪ Directories channel, potentially ▪ Third-party guides and coupon services selling access ▪ …and the brands want direct opt-in access, too 3 Data avalanche ▪ Location ▪ Device ▪ Context: web, app, listing…. ▪ …but still hard to prove impact w/o payment 4 Ad buys, but no ▪ Moving too fast ▪ No decision journey approach mobile media strategy ▪ Focus on apps, not media buys ▪ Unclear agency compensation@davidedelman | CMSOForum.mckinsey.com 4
  • 6. Questions to discuss 1. Isn’t “mobile” a harmful generalization? Won’t media companies need to create (and then somehow simplify) a more complex mix of offerings? 2. Will the complexity thwart scaled/automated buys and lead to narrow, very deep advertiser/media partnerships? 3. How will you price these? Does CPM still hold? 4. What breakthroughs are needed for marketers (and media companies) to truly harness the data avalanche – smart targeting, closed loop optimization? 5. How are you reshaping your organizations to manage the complexities of mobile?@davidedelman CMSOForum.mckinsey.com |5