Mobile device adoption is ushering in a new era of digital marketing, creating a powerful channel for companies to communicate with customers at critical points of the purchase decision cycle. Enterprises and agencies recognize the importance of mobile in raising brand awareness and engaging customers. In Yankee Group’s surveys, nearly 90 percent of all companies place a high priority on mobile channels for customer outreach. As Exhibit 1 shows, large players—which include the world’s biggest advertisers—are most strongly motivated to turn mobile to their advantage. But although mobile is top of mind for marketers, fragmented channels, confusion over targeting and measurement approaches and deficits in customer data have presented unique challenges to creating effective mobile campaigns. This paper presents Yankee Group’s latest research to illustrate how mobile advertising is under-performing mobile’s position as the linchpin channel for personalized marketing. Recycled ad formats and strategies from legacy channels are poorly suited to the way consumers use mobile devices. Although enterprises recognize the importance of mobile, the difficulties of demonstrating a return on investment (ROI) using these legacy approaches has led to hesitation in reallocating marketing budget to mobile advertising.

1. A Whitepaper
September 2013
Mobile Advertising:
Measurability Unlocks
Big Advertiser Spending
Inside you’ll discover:
• Why mobile is an untapped advertising vehicle
• The digital imbalance that exists today
• The most effective targeting approaches to
reach consumers
• How Big Data is intersecting with mobile advertising
• Where mobile fits along the consumer path to purchase
• What measurements should marketers focus on to drive
campaign success

2. September 2013
Mobile Advertising:
Measurability Unlocks Big
Advertiser Spending
This custom publication has been sponsored by 4INFO.
TABLE OF CONTENTS
Marketers Prioritize Mobile for
Customer Outreach 1
The Digital Advertising Imbalance 2
Mobile Advertising’s Data Deficit 3
Measurement Tips the Balance 3
Case Study: 4INFO Tackles Mobile
Advertising’s Data Challenge 4
Conclusions and Recommendations 5
Marketers Prioritize Mobile for Customer Outreach
Mobile device adoption is ushering in a new era of digital marketing, creating a
powerful channel for companies to communicate with customers at critical points
of the purchase decision cycle. Enterprises and agencies recognize the importance
of mobile in raising brand awareness and engaging customers. In Yankee Group’s
surveys, nearly 90 percent of all companies place a high priority on mobile channels
for customer outreach. As Exhibit 1 shows, large players—which include the world’s
biggest advertisers—are most strongly motivated to turn mobile to their advantage.
But although mobile is top of mind for marketers, fragmented channels, confusion over
targeting and measurement approaches and deficits in customer data have presented
unique challenges to creating effective mobile campaigns.
This paper presents Yankee Group’s latest research to illustrate how mobile advertising
is under-performing mobile’s position as the linchpin channel for personalized
marketing. Recycled ad formats and strategies from legacy channels are poorly
suited to the way consumers use mobile devices. Although enterprises recognize the
importance of mobile, the difficulties of demonstrating a return on investment (ROI)
using these legacy approaches has led to hesitation in reallocating marketing budget to
mobile advertising.
Exhibit 1: Mobile Outreach Is Top of Mind for Major Players
Source: Yankee Group’s 2012 US Enterprise Mobility: IT Decision-Maker Survey, December
High Priority of Mobile Web and Apps
100%
80%
60%
40%
20%
0%
%HighPriority
95% 91% 84%
Large
(2,500+)
Medium
(100-2,499)
Small
(under 100)

3. Mobile Advertising: Measurability Unlocks Big Advertiser Spending September 2013
Page 2© Copyright 1997-2013, Yankee 451 Group, LLC. All rights reserved.
The Digital Advertising Imbalance
Mobile is reshaping lifestyles. Handset owners spend nearly
40 minutes a day using mobile data (see Exhibit 2). Time
spent using apps and Web jumped by nearly 50 percent
in 2012 and is equivalent to 22 percent of the daily time
dedicated to using the Web on PCs.
Exhibit 2: Mobile Web and Applications Win Consumer Attention
Source: Yankee Group’s 2012 US Consumer Survey, December and 2011 US
Consumer Survey, December
Despite mobile’s central role in daily activities, a cross-
platform comparison of ad spend reveals a substantial
imbalance in digital marketing investment by brands. As
Exhibit 4 indicates, mobile advertising spend only amounts
to $8 per handset annually, compared to $221 per connected
PC. Deficits in customer data and the inability to quantify
mobile advertising ROI are causing marketers to view mobile
campaigns as less effective or experimental. The result is
an imbalance between PCs and handsets in time spent and
ad spending. Although minutes allocated to handsets are
equivalent to a third of those on PCs, ad spending per device
is more than 27 times lower.
Mobile is not a new channel for customer outreach, but it is
raising new questions for the world’s largest advertisers. For
more than a decade, marketers have invested in messaging
as a way of reaching consumers on the go. Now, marketers
must consider how to effectively integrate advertising into a
typical consumer’s daily mobile activities, which are divided
between Web, apps, messaging and voice—with a growing
percentage spent on apps and Web.
Exhibit 4: Time Spent on Mobile Equivalent to Third of PCs, But Only Four
Percent of Spend
Source: Yankee Group’s Mobile Marketing and Commerce Forecast, June
2013
Average Time Spent
(Minutes/Day)
25
38
2011 2012
Note: Survey data is time spent at work, school or home for all respondents owning devices
The increase in average time spent is paired with a jump
in the penetration of mobile smart devices (see Exhibit 3).
More than 58 percent of U.S. consumers report owning one
or more smartphones; penetration is increasing at a rate
of 10 percentage points annually. Tablet ownership more
than doubled in 2012 to reach 29 percent of respondents.
Device adoption has led to an explosion in mobile media
and services. Our surveys clearly demonstrate that mobile is
embedded into the media, working and shopping habits of
most consumers, and Yankee Group expects consumer usage
of mobile devices to continue increasing at rates surpassing
other platforms.
Exhibit 3: Mobile Smart Device Penetration Soars
Source: Yankee Group’s 2012 US Consumer Survey, December and 2011 US
Consumer Survey, December
Consumers Owning One or More Devices
58%
2012
29%
47%
201112%
Smartphones
Tablets
Annual Ad Revenue Per Connected Device
$221PCs
Handsets $8
Average Time Spent Online (Minutes/Day)
126
38
PCs
Handsets
Note: U.S. annual average spending per device. Average time spent in
PCs (Web) and handsets (apps and mobile Web).

4. Mobile Advertising: Measurability Unlocks Big Advertiser Spending September 2013
Page 3© Copyright 1997-2013, Yankee 451 Group, LLC. All rights reserved.
Mobile Advertising’s Data Deficit
The ability to measure ROI has established digital marketing as a central component of
brand outreach. Marketers expect digital channels to provide a connection between served
ads and resulting actions. In the case of mobile, two deficits in customer data complicate
the process of attributing actions to ads. First, tracking mobile usage is complicated by the
low efficacy of HTTP cookies/clients, which are ineffective in apps and receive inconsistent
support between mobile browsers. Second, user data gathered by mobile OS vendors,
operators and publishers is fragmented between these competing players.
The results of these two shortfalls include: poor mobile audience segmentation, low
targeting accuracy and oversampling, poor ad relevancy and reliance on an inadequate
set of campaign metrics (e.g., click-through rates and ad impressions). Advertisers find
that targeting and measurement methods adapted from the Web are not optimal in
mobile and fail to measure the return on mobile ad investment at the point of sale.
Measurement Tips the Balance
Measuring Mobile Advertising ROI
Mobile’s future position as the linchpin channel for personalized marketing relies on
combining data from multiple sources to target and measure advertising campaigns.
Data-driven enterprises will opt for mobile campaigns that use data resources to serve
targeted ads that provide a measurable ROI on advertising. Marketers should assess
mobile marketing solutions based on their ability to:
• Engage users by serving ads based on advanced segmentation and individual preferences.
• Leverage big data solutions to accurately target segments and profile mobile audiences
based on internal customer relationship management or third-party data sources.
• Measure the ROI for campaigns using solutions that close the loop between ads and
resulting sales.
• Plan for growing consumer concerns over privacy by opting for solutions that protect
personal information.
Mobile Marketing and the Customer
Mobile provides a unique channel for reaching customers at crucial points of the purchase
decision cycle. Mobile phones are the ubiquitous digital device on the move. In addition to
mobile media usage, Exhibit 5 on the next page shows that 40 percent of handset owners
use their devices in store as part of the shopping process. Advertisers that understand
how consumers are using devices throughout the path to purchase, whether in-store or in
any other location, are moving to solutions that provide highly relevant reach to specific
mobile users and effective measurement based on sales resulting from campaigns.

5. Mobile Advertising: Measurability Unlocks Big Advertiser Spending September 2013
Page 4© Copyright 1997-2013, Yankee 451 Group, LLC. All rights reserved.
Case Study: 4INFO Tackles Mobile Advertising’s Data Challenge
4INFO was founded in 2004 and started out by building a leading position in SMS
advertising. The company invested in solutions aimed at mobile display and app
advertising and introduced its AdHaven ad server platform in November 2010. The
building of an entirely new technology platform designed to precisely target mobile
advertising based on past purchase data and enable closed-loop measurement, along
with a series of strategic partnerships with leading data specialists, led to the launch of
AdHaven Bullseye in 2013.
AdHaven Bullseye
AdHaven Bullseye serves targeted mobile ad units through mobile Web and app.
The components of the platform are an ad server, an ad management platform and
analytics reporting for mobile campaigns. AdHaven Bullseye enables advertisers to
measure the impact of mobile advertising using actual in-store purchasing data. By
creating a closed loop between ads and sales, 4INFO and its partners are enabling
clients to measure the ROI from campaigns by actual sales lift—an approach that has
led to deployments with a variety of consumer brands in the U.S.
At the core of AdHaven Bullseye are data profiles linked to anonymous mobile devices.
4INFO has mapped more than 150 million consumers’ mobile devices to 101 million
households in the U.S. and supplemented this with demographic and sales data from
third parties. A direct association of the mobile device with a household address
enables advertisers to measure the impact of cross-channel campaigns by tracking
offline sales supplied by third-party partners or first-party CRM data. The app or
mobile Web site sends a request and makes a direct match between the 4INFO device
ID and a household. AdHaven pulls third-party data attached to the household and
applies the advertiser’s audience requirement before the ad is served. 4INFO then
combines the campaign and offline sales data from retailers to measure the impact of
the ads at the point of sale.
Use Handsets to Access Product Information in Stores
45%
40%
Q2 2013
Q4 2012
Exhibit 5: Mobile’s Influence in the Purchase Decision Cycle Increases
Source: Yankee Group’s 2012 US Consumer Survey, December and 2013 US Consumer Survey, June

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© Copyright 2013. Yankee 451 Group, LLC. Yankee Group published this content for the sole use of Yankee Group subscribers.
It may not be duplicated, reproduced or retransmitted in whole or in part without the express permission of Yankee Group,
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Floor, Boston, MA 02109. All rights reserved. All opinions and estimates herein constitute our judgment
as of this date and are subject to change without notice.
Partnering for Data
Partnerships are a defining element of 4INFO’s approach to building the data
resources provided to clients for ad targeting and measurement. AdHaven Bullseye
combines 4INFO’s own mobile device ID data with customer data and data from
Acxiom, Datalogix, Nielsen Catalina Solutions and Speedeon Data. AdHaven Bullseye
provides solutions for marketers in consumer packaged goods, automotive, financial
and retail. 4INFO plans to extend its partnership strategy with data providers to serve
other verticals in mobile advertising.
Conclusions and Recommendations
Mobile is embedded into media, working and shopping habits. Major advertisers
recognize mobile as a crucial platform for marketing, but concerns over the return
on mobile ad spend have curtailed investment. The future of mobile marketing lies in
personalized campaigns that demonstrate ROI through accurate measurement of ad
performance. Yankee Group makes the following recommendations to advertisers and
agencies:
• Incorporate metrics based on actual sales to measure the ROI produced by
mobile campaigns. Marketers and agencies should look beyond click-through rates
and ad impressions to solutions that measure the return on mobile ad spend by
increases in online and in-store sales resulting from campaigns.
• Prioritize mobile as a critical channel for customer outreach. In the past year, time
spent by consumers in mobile Web and apps has increased by 50 percent to 38
minutes a day. Invest in campaigns that reach your customers at critical points of
the purchase decision cycle. Major brands and services have the most at stake in
integrating mobile into marketing strategy.
• Personalize the mobile ad experience. Mobile screens are small and user sessions
are short. Advertisers should improve the ROI on mobile marketing by serving ads
only to relevant users and tailoring campaigns to their specific interests.
• Reach mobile users through multiple channels. Mobile media usage is divided
between Web and apps. Marketers should choose solutions that can extend across
mobile channels and provide consistent measurement across ad formats.
• Opt for ad solutions that incorporate multiple parameters to provide a complete
picture of the customer. Campaigns based on single data parameters lack precision
and lead to wasted ad dollars. Advertisers should seek out solutions that combine
profile, behavioral, purchase and contextual data for a complete picture on the user.