Mobile advertising on a tear
	 By Giselle Tsirulnik
5 	 What is the state of mobile advertising?
8	...
But what is the state of mobile advertising, even as more
marketers embrace the channel for branding and direct
Giselle Ts...
As of December 2010, 302.9 million Americans reported
that they own a mobile device, making the U.S. wireless
penetration ...
than 7 trillion SMS messages in 2011.
This massive number indicates that consumers are very
comfortable using SMS to commu...
local advertisers.
A click on a mobile banner ad on a mobile Web site or
within a mobile app can create various interactio...
are not looking to the smaller players such as Microsoft
and Yahoo because they do not have the required traffic
volume fo...
The rate of global mobile Web content growth over two
years has outpaced the growth of the desktop Internet
over that same...
creators designing browser-based ads an additional op-
portunity in the mobile ad space, allowing them to create
brings with it an exciting new set of features for devel-
opers to implement in their apps, which, in turn, adver-
tisers ...
What’s working and what’s not
Brands and marketers need to remember to take the con-
text in which the consumer is seeing ...
If all of the most rel-
evant information for
the mobile customer
is not placed front and
center on a mobile ad-
Devices and ad formats that generate the best responses
report by Yahoo Inc. found that tablets have
emerged as a potent...
The Campbell Soup Co. iAd
The Campbell Soup Co.’s iAd campaign received about 53
million impressions, with approximately 5...
5.1 million viewers tuned in to True Blood’s season three
season premiere. Agency of record PHD and Medialets
chose iPhone...
answers when they asked about drugs, medication, alco-
hol and related topics.
Through ChaCha’s mobile advertising platfor...
Fandango provided iVdopia with a Flash creative with a
countdown of days left until the movie’s premiere. IV-
dopia helped...
App-install tracking enables advertisers to measure not
only how many times their iPhone or Android app is
clicked on, but...
Making media buys for mobile advertising
Additionally, a campaign’s specific goals will dictate the
type of media to buy, ...
Integration with other channels and role as traffic driver
igital, out-of-home, TV, print and direct mail are
channels t...
Challenges with mobile advertising and fixes recommended
To wit: Screen size continues to be an issue, lack of educa-
Best-practice tips
1. Consider how consumers are now using their mo-
bile devices: as a shopping tool for price comparison...
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  1. 1. PAGE 3 INTRODUCTION Mobile advertising on a tear By Giselle Tsirulnik 5 What is the state of mobile advertising? 8 Primary drivers 11 What’s working and what’s not 13 Devices and ad formats that generate the best responses 14 Mobile creative messaging executions and campaigns that stand out 18 Measuring mobile advertising 19 Making media buys for mobile advertising 20 Integration with other channels and role as traffic driver CONTENTS Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer,, the Mobile Marketer Dai- ly newsletter,,,, the Mobile Commerce Daily site and newsletter,, Classic Guides, webinars, the Mobile Marketing Summit and the Mcommerce Summit and awards. ©2011 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission. 401 Broadway, Suite 1408 New York, NY 10013 Tel: 212-334-6305 Fax: 212-334-6339 Email: Website: For newsletter subscriptions: newsletter.php For advertising: general/1.html For reprints: Mickey Alam Khan Editor in Chief mickey@ Giselle Tsirulnik Senior Editor giselle@ Chantal Tode Associate Editor chantal Rimma Kats Staff Reporter rimma@ Jodie Solomon Director, Ad Sales ads@ PAGE 2 21 Challenges with mobile advertising and fixes recommended 22 Best-practice tips Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  2. 2. But what is the state of mobile advertising, even as more marketers embrace the channel for branding and direct Giselle Tsirulnik Senior Editor Mobile Marketer and Mobile Commerce Daily Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 3 Mobile advertising on a tear marketing purposes? This document discusses the primary drivers of mobile advertising, which types of ad formats are most popu- lar and resonate best and those that do not, the de- vices that see the most responses, creative executions that stand out, performance of ads on mobile Web sites and in applications, and how standards of measurement have evolved. Also discussed are which categories spend the most on mobile advertising, average spends and estimates for the category, tips on wise media buys, current and future challenges, and integration with other marketing channels. Select case-study snapshots, course correc- tions and best-practice tips will round out this effort to help inform and educate marketers on mobile advertising and how it is moving the needle for branding and direct marketing. Thank-you to Mobile Marketer editor in chief Mickey Alam Khan for conceiving the State of Mobile Advertising Classic Guide and for the outline. Many thanks also to staff reporter Rimma Kats for her excellent art direction. This work relies on the reporting, insights and analysis generated by Mobile Marketer as well as help from marketing executives quoted and mentioned in the State of Mobile Advertising 2011 – thank-you to all. We hope you have as much fun reading the work as it was writing it. As the evidence shows – and there is no other polite way of saying this – mobile advertising is in rude health. INTRODUCTION With budgets in the hundreds of thousands and now in the millions, mobile advertis- ing is proving to be the fastest-growing ad ve- hicle across all channels – that much is obvious in our first State of Mobile Advertising Classic Guide.
  3. 3. As of December 2010, 302.9 million Americans reported that they own a mobile device, making the U.S. wireless penetration 96 percent, according to CTIA – The Wireless Association. What is more is that 26.6 percent of U.S. households are mobile-only, meaning that they do not have a landline and instead depend on their mobile de- vices to make and receive all calls. Of these mobile sub- scribers, approximately 63.2 million own a smartphone, according to comScore. About 35 percent of smartphone users access the mobile Internet from their device, il- lustrating the reach that marketers can achieve with a targeted mobile advertising campaign. Google’s Android and Apple’s iPhone have the high- est smartphone market share in the United States and the users of these devices not only browse the mobile Web, but they are also avid application us- ers. With more than 350,000 mobile apps in the Apple App Store – and another 65,000 iPad apps – and up- wards of 150,000 in Android Market, the apps market is exploding. The market for mobile apps will continue to accelerate as the number of downloads is expected to increase from 10.9 billion worldwide in 2010 to 76.9 billion in 2014, ac- cording to an International Data Corp. forecast. World- wide mobile app revenues will experience similar growth, surpassing $35 billion in 2014. Application developers have churned out more than 500,000 mobile apps in just over three years, and the good news is that those apps are starting to generate more revenue. The consumer adoption of mobile apps and the increas- ing mobile Web traffic have given mobile advertising a seat at the table. Fortune 500 and other top brands are using mobile ads for branding and as a direct response medium, finally understanding that mobile needs to be in the plans for marketers to stay relevant. U.S. mobile advertising spend was estimated at $743.1 million in 2010, according to eMarketer. This number is expected to reach $2.5 billion by 2014, the New York- based digital intelligence firm predicts. Mobile advertising includes messaging, display, search and video ad formats. According to Microsoft Advertis- ing, these ad formats are being used to: • Build brand awareness • Increase sales both online and in-store • Extend special offers and coupons • Enhance multichannel campaign efforts • Increase customer acquisition, engagement and loyalty •Simulateword-of-mouthandsocialmediaengagements Messaging Messaging – SMS or MMS – will make up 24 percent of total U.S. ad spend in 2014, down from 44 percent in 2010, according to eMarketer. SMS advertising con- sists of placing a marketing message into a text message that consumers have opted in to receive. For example, consumers who have opted-in for SMS alerts from MTV could potentially receive an alert regarding news on the release of Katy Perry’s new album. A brand such as Target could sponsor this alert, with a marketing message at the bottom asking consum- ers to click on a link to be routed to the Target mobile commerce-enabled site where the new album could be purchased. Additionally, Target could also ask consumers to opt-in to its SMS database to receive deals and of- fers to their mobile device from the retailer. This, too, is SMS advertising. Given the level of engagement that SMS provides, its biggest mobile potential is to drive consumers to the mobile Web, in-store, online or to download a mobile app. Why SMS? The answer is simple. A study by ABI Research finds that consumers worldwide will send more What is the state of mobile advertising? T he proliferation of smartphone devices and tablets is shifting the way that marketers look at mobile advertising, making the channel more important to the multichannel strategy. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 4
  4. 4. than 7 trillion SMS messages in 2011. This massive number indicates that consumers are very comfortable using SMS to communicate with one an- other and it is a huge opportunity for marketers. The fact that consumers are increasingly comfortable communi- cating via SMS means that brands could potentially use the channel to speak with them. Brands are already building databases of mobile users and sending them news and information updates, as well as coupons. With the expected growth in SMS for 2011, more brands will likely jump on the SMS advertising bandwagon. Not everyone has a smartphone, and com- municating with those that do not via SMS is the best way to reach a wide audience. Display Display mobile advertising spend – rich media and static banners that run in mobile apps and on the mobile Web – will reach $334.5 million in total ad spend by the end of 2011, up from $202.5 million in 2010 and $91.4 million in 2009, according to eMarketer. By 2014, mobile display ad spend will reach $887.6 million, the firm predicts. The monthly metrics reports that Millennial Media pub- lishes indicate that iOS and Android devices are seeing the best results when it comes to mobile advertising re- sponse rates, with the majority of ad requests made on these two platforms. Research In Motion follows closely behind, per Millennial. When it comes to mobile Internet display ads, Google is tied at first place with Apple, with 19 percent market share, and independent ad network Millennial Media comes in second place with about 15 percent, according to IDC. Borrell Associates forecasts that spending for ads deliv- ered via mobile apps in the U.S. will explode from $305 million in 2010 to $685 million in 2011 and more than $8 billion by 2015, with $1.2 billion of that coming from Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 5
  5. 5. local advertisers. A click on a mobile banner ad on a mobile Web site or within a mobile app can create various interactions be- tween a brand and consumers. Some of the most com- mon types of interactions are: • Click-to-Web – This is when the user click on a ban- ner and is brought to a dedicated landing page that goes into more depth about the initial offer that the banner mentioned. • App-within-an-app – This is when the user clicks on a banner ad within an application and is brought to a Web-like experience, without actually having to leave the app. This is a great experience because the user sim- ply returns to the application after interaction with the ad unit is complete. • Click-to-call and click-to-text – The user clicks to initiate a call or text message to communicate with the brand. • Click-to-rich media – Most rich media ad units can be customized to the specific advertiser’s needs. But some of the most common executions are click-to-video, click- to-gallery and click-to-download. According to mobile rich media platform Medialets, ad- vertisers and agencies are mostly asking for full-screen interstitial ad units nowadays because they provide more room to do many of the interesting things that devices can run and, of course, because they perform really well. Medialets’ mobile rich media benchmarks report found that interstitials generated engagement rates, on av- erage, of 10 percent, with iPad interstitials performing abovethat.Thesearethekindofperformancemetricsthat are drawing advertisers and agencies to mobile display. Search Mobile search advertising is the paid listings that a con- sumer sees after entering a mobile search query. These paid listings show up because an advertis- er is paying money to be ranked that highly for those phrases. When a searcher clicks on one of those list- ings, the advertiser is charged the cost-per-click price for that ranking, so hopefully the searcher will convert into a sale for that advertiser, per TopRank Online Marketing. Mobile search works the same way. Google currently dominates mobile search advertising, with an ad revenue market share of 91.4 percent. Plenty of mobile Internet traffic comes from people looking for stuff on the go. IDC expects mobile search to grow. EMarketer forecasts confirm this growth. Mobile search advertising spend will reach $295.1 million in 2011, up from $185 million in 2010 and $83.2 million in 2009. EMarketer expects mobile advertising spend to increase to $201.3 million in 2014. Google is currently in the lead and that is why the majority of mobile search marketers Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 6
  6. 6. are not looking to the smaller players such as Microsoft and Yahoo because they do not have the required traffic volume for a successful search campaign, per IDC. A Bing executive at CTIA Wireless 2011 revealed that 50 percent of search queries on mobile have a local intent, with users searching for restaurants, movies and other forms of entertainment closest to them. When people are on their desktop, they are in research mode. But when they are on their mobile device, they just want to ask one thing and get an answer. They are not trying to decide which big-screen TV to get – they want to find a good restaurant nearby right now. Marketers are finally beginning to understand that they need to focus their mobile search efforts to take advan- tage of mobile-specific capabilities such as location- based services and voice and image-recognition tech- nology. Google’s approach in mobile is to innovate around spe- cial capabilities of mobile devices to make the search experience easy, fast and useful. The company focuses on location-based, voice and image recognition search. Over the past two years, Google’s mobile search traffic has grown fivefold. It offers companies the following mobile search tactics to gain a competitive edge: • A location-based search feature called “Near Me Now” for iPhone and Android platforms, which lets users browse through lists of nearby banks, restaurants and other business categories • Google Maps Navigator, which enhances the Google Maps functionality by providing turn-by-turn voice guid- ance and automatic rerouting • Google Voice search, enabled in seven languages in- cluding English, Mandarin and Spanish • Google Goggles, an image-recognition technology that lets users take pictures of objects with their mobile phones and generates information based on the photos Video Mobile video advertising spend– whether it be pre- or post-roll, in-stream or in-ad unit executions – will reach $50.8 million in 2011, up from $28.3 million in 2010 and $12.6 million in 2009. By 2014, spend on mobile video advertising is expected to reach $201.3 million, eMar- keter predicts. The launch of the iPad has really propelled the growth of mobile video advertising. Mobile video has higher viewer retention than online video, with 94 percent in the first 10 seconds compared to only 81 percent on the PC In- ternet, according to Rhythm NewMedia, a mobile video ad network. Completion rates for interactive pre-roll video ads re- main high at 87 percent, exceeding online video and television. Additionally, iPad CTRs for pre-roll video ads are higher versus iPhone, iPod touch and Android. CTRs are 79 percent higher on display ads that mention video as a call to action. Brands within the consumer packaged goods and enter- tainment categories are leading the way in mobile video advertising adoption, per Rhythm. The number of U.S. mobile users who watch videos on their devices has increased more than 40 percent year- over-year in both the third and fourth quarters of 2010, ending the year at a grand total of almost 25 million people, according to a mobile video report from Nielsen Co. These consumers watched an average of four hours and 20 minutes of mobile video per month in both the third and fourth quarter of 2010, which equals a 33 per- cent and 20 percent year-over-year bump in each quar- ter respectively, per Nielsen. Growth in mobile video consumption can be attributed to the ever-increasing adoption of media-friendly mobile devices such as tablets and smartphones. In the fourth quarter of 2009, a mere 23 percent of U.S. consumers had smartphones. In comparison, smartphone penetra- tion grew to 31 percent by the end of 2010. Additionally, it has become much easier to find, view and share mo- bile video with the proliferation of the mobile Web and app usage. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 7
  7. 7. The rate of global mobile Web content growth over two years has outpaced the growth of the desktop Internet over that same period, according to dotMobi’s Mobile Web Progress study. DotMobi’s 2008 study showed 150,000 mobile-ready Web sites, while the 2010 study showed approximately 3.01 million sites, representing an incredible two-year growth of more than 2,000 per- cent. And that growth level significantly outpaces early desktop growth. Web analyst firm Netcraft found that, between 1996 and 1998, the size of the desktop Web grew from 150,000 sites to 1 million sites, a growth rate of 1,333 percent, compared to the mobile Web’s 2,000 percent growth in the equivalent timeframe. With this explosive growth in mobile Web sites and the aforementioned explosion in mobile applications, it is no wonder that mobile ad- vertising was about 3 percent of marketers’ total online advertising budgets in 2010. IDC expects this number to grow to 5 percent in 2011. There is a lot of activity on the mobile Web, and adver- tisers finally understand that it is an effective market- ing channel. Additionally, the mobile phone is a personal device. It enables in-your-face advertising. The ads are more personal than on the PC. Another reason for the expected growth in mobile advertising budgets in 2011 is that, for marketers, it is about the results and the ef- fectiveness of a channel. Mobile is starting to make a name for itself with ads that see grand results. Ad units are getting more sophisticated and ROI is increasingly being proven in the channel. IDC expects there will be more mobile Internet traffic than the desktop, meaning mobile display and mobile search will outgrow their PC Internet counterparts. Consumer acceptance of mobile ads is also a driver, ac- cording to eMarketer. Consumers are actually becoming Primary drivers O verall, the advancement of network technologies, lower mobile data cost, adoption of smartphones and an increase in application and mobile Web usability are obvious drivers of mobile advertising. Mar- keters follow consumer eyeballs. comfortable viewing mobile ads on their devices, with 38 percent of almost 4,400 individuals that comScore and InMobi polled in August 2010 stating they felt mobile ads serve an important purpose. Another 25 percent said that they were getting used to seeing mobile ads. Only 10 percent said that they were uncomfortable seeing mo- bile ads and 12 percent said they were downright intru- sive. Males are more comfortable than females in being served and interacting with mobile ads. Users under the age of 25 were most likely to find value in mobile ads. “Few people are able to galvanize marketers and the pub- lic like Apple CEO Steve Jobs. The launch of the iPad, a new iPhone and the iAd advertising platform in the space of several months arguably has been the single most ef- fective catalyst to date for mobile advertising.” –Mobile Advertising and Marketing: Past the Tipping Point, eMar- keter, October 2010 Apple’s iAd mobile ad network became a standard for developing and delivering ads for the iPhone ecosystem. As a majority of mobile ads were static images on the iPhone, iAd interactivity ushered in a new age of mo- bile advertising opportunities. The platform gave content Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 8
  8. 8. creators designing browser-based ads an additional op- portunity in the mobile ad space, allowing them to create animated, interactive ads. IAd, when first launched was an ad experience that piqued users’ interest. As such, us- ers were more apt to click on an iAd just to check out Apple’s take on what a new generation ad should offer. This burst of interest alone has had a high impact on overall mobile advertising click-though rates. Just having someone such as Apple and Mr. Jobs as a creative force in the space is a huge advantage for driv- ing attention and pushing the boundaries of where it can go. He did a good job of turning five-figure budgets in average ad spend to six- and seven figures. He proved the validity of rich ad experiences. He really speaks to chief marketing officers to tap into those print and TV budgets. At the end of the day, the mobile advertising ecosystem is in a better place because of the support of Apple and Mr. Jobs. The iAd platform opened the industry’s eyes in terms of what is possible in mobile. It also served as a catalyst for more sophisticated, interactive and engaging mobile advertising experiences. Since its launch, there has been a fundamental shift in mobile advertising. Mobile com- panies, from mobile marketing specialists such as Hip- cricket to mobile ad networks such as Millennial Media, Jumptap and Greystripe, began to enhance their offerings in a bid to compete with giants Google and Apple. With Google’s acquisition of AdMob having been completed in 2010 and iAd’s launch that same year, independent play- ers both large and small began innovating and punching above their weight. Google’s acquisition of AdMob was validation that mo- bile advertising is real, that the results are measurable and have considerable value and that mobile should be a factor, if not a central pillar, in any brand marketing strategy going forward. With the newfound validation of the mobile indus- try, there was an influx of major brands to the mobile bandwagon. With the explosion of mobile activity, siloed campaigns are becoming a thing of the past. Consum- ers’ dependence on mobile has already changed them forever. They want to be spoken to via the channels in which they spend the most time. These channels – mo- bile, social media and online –are being thrown in to the marketing mix finally, and with respectable budgets. The acquisitions of both AdMob (Google) and Quattro Wireless (Apple) were proof that as mobile phone usage increases, growth in mobile advertising is only going to accelerate. The deals resulted in developers and publish- ers getting better advertising solutions, marketers find- ing new ways to reach consumers, and users getting bet- ter ads and more free content. The iPhone 4 and other 4G-capable phones are also driv- ers of mobile advertising serve as the ideal canvas for interactive experiences. Every new generation of mobile devices to come out of the smartphone manufacturers Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 9
  9. 9. brings with it an exciting new set of features for devel- opers to implement in their apps, which, in turn, adver- tisers could take advantage of within their ads. Google’s Android and Apple’s iPhone 4 have both stretched the limits of what the industry once thought was possible in mobile advertising. Rich media and innovative ad units have garnered the attention of consumers, making the probability for a click-through higher. In fact, research firm InsightExpress found that mobile advertising is four-to-five times more effective than online advertising, on average. That is due to various factors, including lack of clutter in mobile, typically one ad per page, and the mobile pages them- selves typically do not have a lot of stuff going on—they tend to be very clean. Also, the proportion of the ad on a mobile screen is greater, so it gets more share of eyeballs. The iPad and other tablet devices are also drivers of mo- bile advertising. On the heels of Mr. Jobs’ official intro- duction of Apple’s iPad, marketers and developers raced out the door with apps and advertising services for the new tablet. The iPad gave publishers and brands new and creative opportunities for creating meaningful and truly engaging experiences with the consumer. What makes the device most attractive to marketers is its form factor for content consumption. The form factor allows brands to maximize how they in- teract with users and provide an engaging brand expe- rience through mobile advertising. The opportunity lies in the fact that the iPad can support instant loading, HD-quality video and other interactive content such as high-definition display, pinch-to-zoom and 3D rotation. These features give brands the opportunity to showcase the finer details of their products from all angles and the highest resolutions, via an unprecedented mobile advertising experience. “It’s easy to point to iPad as the best performing device, but the reality is that we’re seeing double-digit perfor- mance on iPhone and Android as well.” – Elena Perez, director of marketing at Medialets, New York According to InsightExpress, smartphones are the new phone, with more than a third of mobile owners owning smartphones. Hence, conversations are shift- ing. While there are a lot of feature phones out there, a high percentage of people who are interacting with mobile marketing campaigns are smartphone users. Looking at consumers ages 25-34, about 50 percent of them have smartphones, so the reach is getting there. Text messaging still has the most reach, because both smartphones and feature phones are SMS-enabled. But when marketers look at the mobile Internet, apps, vid- eo and social networking, the large majority of traffic is coming from smartphone users, which is a different audience altogether. Consumer behavior on mobile is another driver of mobile advertising. For example, 82 percent of consumers have used their mobile phones in a store, 55 percent in a doc- tor’s office or hospital, 17 percent during a movie at the theater, 14 percent while flying on a plane and 7 percent during church service. Around 17 percent of mobile users have shown a clerk in a store a picture of a product on their mobile phone, saying in effect, “I want this please,” which is a new shopping behavior that is surprisingly be- ing driven by men. Forty-five percent of users check their mobile devices first thing in the morning, according to InsightExpress. Marketers recognize the opportunities with advertising to these mobile consumers. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 10
  10. 10. What’s working and what’s not Brands and marketers need to remember to take the con- text in which the consumer is seeing the ad. Therefore, repurposed static banners and videos that are placed next to unrelated mobile content will not work. These units fail from a creative and media planning perspective to pull the user into the ad experience. Another impor- tant step is to make sure that the creative considers the user experience of its call to action. Making consumers complete numerous steps for a conversion is not going to work, especially for those who are on the go. “Mobile advertising that works starts with emerging be- haviors rather than emerging technologies. There are a million different things that a marketer can do on mo- bile. Deciding what to do is often the hardest part of the process. But it is much easier when you approach it with sound business logic and ask the following questions. What consumer insight are you trying to address as a product and as a brand? What is the message that you are trying to communicate? What are your business ob- jectives? Mobile advertising has worked when the deci- sion of what to do is based on how well it aligns with the answers to those questions.” – Paul Gelb, vice president and mobile practice lead at Razorfish, New York. Failing to mobile-optimize the post-click experience is one of the most frustrating experiences for mobile us- ers. It is an ultimate failure on the part of the marketer. One would think that this is not a common dilemma. However, Google conducted a study looking into the post-click experience for some of its largest advertisers on mobile. The company used 200 diagnostic points to measure each advertiser’s mobile readiness, with criteria such as load time, device detection and mobile optimi- zation. Google found that only about 21 percent of its largest advertisers have a mobile-optimized Web pres- ence. That means that more than 79 percent are serving S uccess in mobile advertising depends entirely on the approach taken and whether it was right for that specific campaign’s goals. If execution is done strategically, then all the ad formats work, whether it be text, Web, video or app. substandard mobile experiences. Companies that are not prioritizing what is important for the mobile user specifically are missing the ball. This means thinking of all the possible ways of making life easier for consumers who are on the go – for example, helping them find directions to a business, finding the hours of operation and click-to-call to get in touch with a customer service representative. It is a shame that so many marketers are not taking advantage of mobile-spe- cific functionality. The mobile device’s screen is smaller than the PC’s and marketers need to keep that in mind. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 11
  11. 11. If all of the most rel- evant information for the mobile customer is not placed front and center on a mobile ad- vertising landing page, consider the campaign a failure. Harris Interactive con- ducted a survey on behalf of Pontiflex in December 2010. The study found that ROI and accountability are of utmost importance to brands and agencies, and while mobile advertising has proven its effectiveness when executed properly, click-through rate is a limited metric at best. This means that marketers need to take into account more than just the click. Forty-seven percent of mobile application users say they click or tap on mobile ads more often by mistake than they do on purpose. Given that mobile advertising mod- els typically charge advertisers for clicks, the survey find- ings indicate that a large portion of mobile ad dollars are wasted. Advertisers need to be measuring beyond the click: time spent engaging with an ad and what consum- ersaredoingonthelandingpage.Focusingsolelyonclicks is not working. When it comes to mobile search advertising, what works online, will not necessarily work on mobile. Therefore, treating a mobile campaign as part of a company’s on- line SEM efforts will not work. There are a few reasons why, the most important being that the mobile searcher’s intent is very different from that of the desktop searcher. Separating mobile campaigns from PC campaigns allows marketers to break out keyword performance, reporting, tracking and optimization so that it is unique for the mobile space. Most engines will also assign a historical weight to campaigns based on performance, so separat- ing mobile campaigns will ensure they do not affect the relevancy of their PC counterparts. According to 360i, mobile search is most useful for lo- cal queries, whether or not the keywords entered in- clude local modifiers such as a city, state or ZIP code. Therefore, a consumer who searches for “Target” on her mobile device is expecting to get results listing the Tar- get locations closest to her. The Kelsey Group reported in 2009 that about one in three mobile searches have local intent. Additionally, marketers that are not using mobile-specific actions within their mobile search cam- paigns are missing the ball. A click-to-call function is a no-brainer and click-to-map, click-to-directions and other useful actions for a mobile user should be incor- porated. The mobile search results must be different from the desktop results, tailored specifically for mobile searchers, otherwise marketers are not getting the most out of their campaigns. A spray-and-pray approach to SMS, display and video advertising is not going to work, either. Targeting is key. Gartner predicts mobile will be the No. 1 Internet access device by 2013. ABI Research believes that 8 percent of total ecommerce sales will come from mobile by 2014. Also, according to comScore, nearly one-third of all mo- bile users already actively engage with Web content on their mobile phones, and 53 percent of smartphone users routinely engage in mobile Web browsing activities. These consumers express intent and interest when they visit a mobile site and click to the microsites built into it. Media buyers need to consider factors such as age, sex, location and the type of content that is being engaged with on the site when deciding on where to advertise. Of course, ad networks simplify this process by serving ads based on their relevancy. For SMS, segmenting the mobile database into smaller lists is a good best practice. Run a mobile coupon pro- gram to all of the people in the database. All those who opt to redeem the deal can be segmented into a list called, “Those responsive to deals.” Consumers who ac- tively engage in free giveaways can be segmented in the “Freebie lovers” list, for example. This way, marketers can target the right promotion to the right list of consumers at the right time. Also, consumers who receive deals that they are more prone to participate in are less likely to get annoyed and opt-out in the future. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 12
  12. 12. Devices and ad formats that generate the best responses A report by Yahoo Inc. found that tablets have emerged as a potential contender for screen dominance. With approximately 10.3 million tablet users in 2010 and that number expected to reach 82.1 million by 2015, tablets such as the iPad have un- In 2012, tablet sales will grow to 36 percent of U.S. PC sales, according to Yahoo, and this number will likely outstrip notebooks/mini-PCs, which are expected to be 32 percent of overall PC sales. IPad users are open to advertising, especially if coupled with an interesting video (49 percent) or interactive features (46 percent), according to Yahoo. When it comes to smartphones, Android and iPhone are really leading the way. Users of these smartphone platforms are more receptive to mobile ads and are con- suming a great amount of mobile data both on the Web and via applications. According to a study by Nielsen, Android users are more likely to click on advertisements within apps. The reason for this may have to do with the fact that the Android platform has more free apps than Apple’s App Store does, making Android users more accustomed to the trade-off of viewing ads to receive free content, according to eMarketer. A Harris/Pontiflex survey found that 71 percent of mobile app users stated that they prefer ads that keep them within the app they are using, instead of ads that take them out of the app to a mobile Web browser. Research by Luth Research on behalf of the Mobile Marketing Association found that iPhone users are more likely to respond to a mobile Web ad than owners of other smartphones. The Luth-MMA study found that for smartphone users, seeing a mobile ad triggers a response, with 43 percent of consumers seeing an ad, and 37 percent of them re- sponding to and interacting with the ad. But different mobile advertising channels see different response rates. Ads within text alerts seem to be working the best in terms of response rates, the same study found. Thirty- six percent of respondents responded to ads within text alerts, while only 11 percent responded to display ads on mobile Web sites. doubtedly caused a disruption in the mobile space. What all of this data shows is that the rapid increase in iPhone and Android handsets will be the key factor in the growth of mobile advertising, as brands can deliver more engaging experiences on the mobile Web and in-apps via these devices. The ability to replicate online creative through better mobile browser experiences will simplify the creative and buying processes and facilitate the flow of dollars shifting to mobile campaigns from more tradi- tional channels. At the end of the day, what is most important is that the advertiser or agency understands its target customer and how they incorporate its mobile devices into their lives. The ad needs to be creative and resonate with the intended audience. They should also consider the variety of mobile ad units that can foster a sense of engagement with the audience. “The truth is that no one platform is winning—each is extremely important in the mobile ecosystem. De- vice manufacturers and wireless carriers have ag- gressively developed and marketed devices that reso- nate with different consumers for different reasons.” — Mack McKelvey, senior vice president of marketing at Millennial Media, Baltimore. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 13
  13. 13. The Campbell Soup Co. iAd The Campbell Soup Co.’s iAd campaign received about 53 million impressions, with approximately 530,000 of the users that saw the ad clicking through and engaging with it for nearly one minute. The Campbell’s iAd campaign ran within applications such as The New York Times’ iPhone app. It aimed to celebrate all the new products that the brand offers through an interactive experience. The ad focused on Camp- bell’s new contemporary label design, 21 addition- al soup varieties with re- duced sodium levels and new recipes made easily with the brand’s soups. Clickers could take a number of actions once engaged with the ad. The iAd aimed to increase awareness of what is new and relevant with Campbell’s condensed soups and drive trial with a downloadable coupon and recipes, also available through the iAd. The banner iAds, on average, achieved more than twice (35 percent) the brand recall of the average food and beverage Internet display ad (17 percent). Favorability (53 percent) and purchase intent (61 percent) increased significantly among consumers who were exposed to the Campbell’s iAd banners. Compared to what Campbell’s is achieving with its television and online campaigns, the expandediAdhasgeneratedsignificantlystrongerimpact. In terms of general recall, the iAd achieved 84 percent compared to an average 39 percent for the Campbell’s TV ad norm and a 32 percent online ad norm. Brand recall for the iAd was 79 percent compared to an average 20 percent for TV and 17 percent online. Message recall for the iAd was 38 percent compared to an average 14 per- cent for TV and 11 percent online. Ad favorability for iAd was 54 percent versus an average 12 percent for TV and 9 percent online. Westin Hotels & Resorts The recent Westin Hotels & Resorts ad that ran on The Weather Channel for iPhone app was another unique execution. The creative, which only dis- played when there was a chilly forecast, invited us- ers to wipe away virtual frost to reveal a stunning photo carousel featur- ing eight Westin Hotels & Resorts located in warm climates. The combination of native device capabilities, relevant targeting and a long, cold winter added up to an exceptionally powerful mobile rich media campaign. HBO’s True Blood HBO’s True Blood mobile ad campaign increased viewer- ship 38 percent. Medialets assisted HBO with the effort. HBO ran a rich media mobile ad campaign to promote the season three premiere of “True Blood” using a new ad unit that sent chills down consumers’ spines. The goals of the marketing campaign were to excite existing fans, intrigue the uninitiated and garner the attention of the industry to boost awareness and drive tune-in. The campaign, as a whole, was successful—more than Notable creative messaging executions and campaigns that stand out Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 14
  14. 14. 5.1 million viewers tuned in to True Blood’s season three season premiere. Agency of record PHD and Medialets chose iPhone applications from Variety, Flixster and vari- ous inventory across Jumptap’s mobile ad network. Imagine browsing through the Flixter application looking for a movie or browsing the Variety application, and the first touch of the screen turns into a bloody fingerprint. Tap it again and get another fingerprint, then the blood pours down and takes over the screen and the activa- tion pops up: a tap-to-watch-trailer call-to-action with a banner ad at the bottom. Intel Intel tapped mobile search to support its “Meet the Pro- cessors” brand campaign that drove consumers to the technology giant’s mobile Web site. Search agency Co- vario Inc. tapped Bing for mobile and developed a cam- paign that used a combination of exact and broad match keywords. The result was that mobile cost-per-click was 40 percent more cost-efficient than online search. One of Intel’s key challenges was to educate consum- ers about the key product differentiators of its micro- processor series. There were a number of factors that contributed to the 40 percent greater efficiency, including daily keyword bid updates and weekly ad copy optimizations. Route optimization also helped to drive higher CTRs and lower CPCs than competitive mobile search engines. These factors com- bined to make Bing for mobile very effective for Intel. Mobile display advertising also played a role in the In- tel campaign. The Hyperfactory was hired to devise a strategy for media, campaign, design and execution. Intel used display and rich-media ads, which users could expand, drag and interact with to find the right processor for them. It also used basic banner ads that ran on mobile Web sites and in apps. Ads ran on a number of mobile Web sites, including CNN and CBS. Additionally, The Hyperfactory leveraged its relationship with Pandora to create an Intel promotion within the Internet radio service. The campaign saw lower bounce rates on mobile than with traditional Web advertising, possibly be- cause mobile users are using their phones and search- ing for information with greater purpose than users on regular desktops. Apparently, search engine marketing saw 67 percent bounce rates versus 89 percent for display advertising, per Intel. And it saw the lowest bounce rates on iPhones (85 percent), Android (64 percent) and BlackBerry (71 percent) phones. Intel took these results as a sign that more effort should be made to target the Android and BlackBerry platforms. The Partnership at ran what it claims was one of the biggest public service campaigns in mo- bile history to help prevent teens and tweens from abusing medicines. The nonprofit organization tapped ChaCha to power the mobile advertising campaign that included both text messaging and mobile video advertising, as well as con- tent additions to ChaCha’s database that let users get Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 15
  15. 15. answers when they asked about drugs, medication, alco- hol and related topics. Through ChaCha’s mobile advertising platform, targeted messages were sent to teens and parents based on age and topic that helped educate them about the health risks posed by teen medicine abuse. SMS user response rates averaged 4 percent, while the best performing text ads achieved a 9.8 percent response rate. Calvin Klein Calvin Klein went beyond mere banners in June 2010, with its GQ application sponsorship. The brand integrat- ed its own content into GQ magazine’s Style Picks appli- cation via a sponsorship that hardly felt like advertising. CK bought this sponsorship directly from GQ to present its new product line to mobile shoppers. The ad unit was a sponsored guide within the app and was full of interac- tive content such as model shots, a product catalog and videos. The idea was to make the ad unit as close to the content as possible, so that it is useful to men looking for style advice. Within the app, con- sumers could click on a model with a new sum- mer look and get a list of all the products that model was wearing. For those users who liked what they saw, they could find the closest CK store to go try it out. Additionally, if consumers wanted to know more about what CK had going for with that look, they could watch the video where style experts from GQ and CK walked through the new items. CK was able to reach men in discovery mode looking for ideas who were near a point of purchase. Paramount “Shrek Forever After” A Paramount mobile rich-media campaign for Shrek re- sulted in a 6.2 percent click-through rate. The “Shrek Forever After” campaign targeted iPhone users on the Yahoo mobile homepage and the Yahoo Movies mobile portal. Yahoo’s mobile homepage gets about 50 million unique visitors a month, which comes to about 1.5 mil- lion unique visitors per day. Therefore, the 6.2 percent click-through rate is quite a large number of people that interacted with the ad. The Yahoo rich media ad unit featured animation. The ad ran on Yahoo’s mobile homepage, with the top of Shrek’s head along the bottom of the iPhone screen. If a consum- er tapped on his dome, Shrek popped up to fill the screen, with “Tickets” and “Show Times” icons on his forehead. Another tap directs the user to a microsite, where he could watch the trailer or buy a ticket for a local theater via Fandango. On the Yahoo Movies mobile page, tapping Shrek’s head also caused it to fill the screen, where the user could tap again to move to the microsite. Iron Man 2 The average click-through rate of movie-ticketing giant Fandango’s commerce-enabled Iron Man 2 mobile video ads surpassed 6 percent—more than eight times as effec- tive as the average PC Internet video ad. Fandango’s marketing goal was to drive movie ticket sales for the Iron Man 2 movie. The company wanted to target its main demographic of movie-goers and ac- tion lovers, so the company chose to place ads powered by iVdopia within movie, entertainment/gaming and sports apps. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 16
  16. 16. Fandango provided iVdopia with a Flash creative with a countdown of days left until the movie’s premiere. IV- dopia helped convert the Flash creative into a video ad- vertisement and executed the countdown with different video creative each day from April 29 to May 7, 2010. The mobile video ads appeared in a variety of applica- tions for the iPhone and iPod touch, in- cluding Skyworks’ Goaaal! Lite, Arcade Hoops Basketball Lite, Field Goal Frenzy Lite, Arcade Bowling Lite, 3 Point Hoops Bas- ketball Lite and World Cup Air Hockey Lite. The mobile video ad creative had a clear call-to-action asking consumers to buy tickets that resulted it in 6.17 percent of users clicking on the “Buy Tickets” icon. On average, more than 25 percent of users who clicked on an iVdopia mobile video ad also did a post-click ac- tion. Fandango received more than 50,000 actions on the custom Iron Man 2 Talk2Me page created by iVdopia. Around 25,000 users clicked on the “Buy Tickets” icon and more than 11,800 users viewed the trailer for the Iron Man 2 movie. More than 5,800 consumers clicked to download the Fandango application, while another 7,800 clicked to view Iron Man 2 show times. Forty-nine percent of users who clicked on the ad decided to buy tickets now, while 23 percent viewed the trailer, 16 percent searched show times and 12 percent downloaded the app. In total, the mobile video campaign generated 817,495 impressions and 50,410 clicks through iVdopia’s Talk2Me actions in nine days. Chase Sapphire JPMorgan Chase & Co.’s Chase Sapphire, a rewards card targeting affluent consumers, was the exclusive launch sponsor of The New York Times Editors’ Choice app for Apple’s iPad. The New York Times Editors’ Choice app offers a selection of the latest news, busi- ness and technology news, opinion and features chosen by Times editors that can be downloaded automatically to iPad, a publisher favorite. The Editors’ Choice app launched with a full-page verti- cal and horizontal interstitial ad that provided a large interactive canvas for Chase Sapphire. Ad agency T3 and Medialets collaborated on the design of the Chase Sapphire ad units. The card issuer’s goal was to drive users to a landing page to get more information about Chase Sapphire and apply for the card via a link on that page. The opening interstitial ad unit was optimized for the iPad’s function- ality. Depending on how a user tilted the iPad, a different reward showed up, spilling out of each side of the Chase Sapphire card. There were 12 different rewards that the ad promoted related to airlines, resorts, ski trips, even romantic dates. In addition to the interstitials, the campaign also includ- ed half-page ads and banners with both landscape and portrait versions. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 17
  17. 17. App-install tracking enables advertisers to measure not only how many times their iPhone or Android app is clicked on, but also the number of downloads and first opens that are generated post-click. This information provides visibility into exactly how much an advertiser is paying for each app download. Similarly, post-click conversion tracking for mobile sites allows advertisers to specify and track predefined actions – conversions – performed by a user once she has arrived at a mobile site. This enables the advertiser to assess performance from impression through to conversion and to establish their cost per conversion. Additionally, click-to-video cam- paigns that allow the advertiser to see how long a user spent viewing their video enables them to gauge the true value of the click. It is important that mobile networks provide advertisers with the right key performance indicators to facilitate the ability to work to cost per acquisition (CPA), cost per lead (CPL), cost per install (CPI) and cost per download (CPD) targets, and to see that these targets are being delivered through a cost-per-click (CPC) campaign. This level of transparency provides advertisers with the per- formance visibility that they need to see how well their ads are performing. The ability to do this in real time and optimize campaigns as they run in much the same way that advertisers are used to with online campaigns is key to maximizing the volumes of high performing clicks, hitting CPA targets and ultimately driving up ROI. Measuring mobile advertising A ccording to Paul Childs, chief operations offi- cer of Adfonic, London, there are several ways of measuring the success of a campaign post- click. Mobile ad networks offer full post-click measure- ment with the ability to track application installs and measure conversions post-click on mobile sites, along with the capability to measure the real success of click-to-video campaigns. Third-party ad serving technolo- gies such as Atlas and DoubleClick that track when a user clicks on a third-party ad tag are gaining trac- tion within mobile and will continue to instill greater confidence in mo- bile advertising measurement, Ad- fonic’s Mr. Child said. There will in- evitably be some clicks that are generated by acci- dent with all mobile display campaigns. But there are measures that adver- tisers can take to increase the proportion of high-value clicks versus accidental clicks. Relevancy is vital, and mobile advertising networks work closely with publishers to ensure that ad placements are relevant to the user. This is not only in terms of the chan- nel and context of the surrounding content, but also by employing sophisticated mechanisms such as geo-tar- geting to increase relevancy. Ensuring that ads are served to a highly targeted audi- ence with a high propensity to click on the ad in ques- tion reduces the percentage of overall clicks that are generated accidentally. It is this increasing ability to fine-tune targeting to drive high-value clicks, combined with improved transparency to measure mobile ad campaign performance from im- pression to conversion that is encouraging more brands to come on board and increase their mobile advertising budgets. Proof, if any more were needed, that mobile ad- vertising delivers relevant and valuable clicks. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 18
  18. 18. Making media buys for mobile advertising Additionally, a campaign’s specific goals will dictate the type of media to buy, since the target audience is differ- ent from campaign to campaign. There are so many different options when it comes to from which firm to buy mobile media. There are the ad networks – Millennial Media, Jumptap, Apple iAd, Google AdMob, Mojiva, InMobi, Greystripe, Air2Web and Micro- soft, to name a few. For brands and marketers who are working on a direct response campaign, the best bet is teaming up with a mobile ad network. But for a custom campaign, looking to do something out of the ordinary, sometimes it is worth working directly with the publisher and build something together with them. When choosing ad networks, a best practice is going with a few at a time. This not only increases reach, but midway through the campaign, brands can optimize out of underperforming placements or even networks. The networks differ by targeting capabilities, scale, the type of inventory, rich media and blind versus open. For exam- ple, iAd’s network is unique because it uses iTunes and App Store data to target. In most cases, mobile media is bought on a CPM basis. However, this can vary and many of the blind networks can be purchased on a cost-per- click basis. It is really important to monitor the campaign from start to finish. Brands can evaluate and optimize throughout to make sure that they are not only meeting campaign goals but also achieving good return on investment. “A lot more thought must go into the where – both loca- tion and content – and when decisions of the media plan. Those decisions are more dependent upon the ad’s copy, design and functionality. Media and creative have been separated for most other channels. Advertising that has coordination and integration amongst those components T he first step, as with any medium and not just mo- bile, is to know why you are buying mobile me- dia. It is important to outline your goals earlier on and then see if mobile is the best method of achieving these goals. are, without exception, most successful executions. Thus, the second difference is media and creative need to work closely from start to finish instead of in siloes.” – Paul Gelb, vice president and mobile practice lead at Razorfish, New York. To illustrate this point, Medialets and Razorfish worked on a campaign for Westin, which ran on The Weather Channel app. It targeted users in cities where the tem- perature was below 30 degrees. The creative was about the cold weather and the appeal of resorts in destina- tions where the weather is extremely warm. The media and creative were completely integrated. Creative needed to know from the beginning that this type of placement was possible. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 19
  19. 19. Integration with other channels and role as traffic driver D igital, out-of-home, TV, print and direct mail are channels that marketers can use as consum- er touch points. Mobile can be integrated into these channels, giving them legs to work harder and perform better. In the case of print, direct mail and out-of-home, mar- keters are using mobile make what has traditionally been one-dimensional very dynamic. Marketers can use mo- bile to make every other touch-point more effective by adding location context, social sharing capabilities and interactivity to analog. According to Razorfish, one of the world’s leading interactive agencies and one of the largest buyers of digital advertising space, consumers are bombarded with thousands of ad messages. The attention of consumers is scarce and incredibly hard to obtain. Enhancing other channels is essential to generating the necessary ROIs. As an always-on connected device, mobile is uniquely able to direct a consumer from one consumer touch- point to another. This is especially valuable as the path to purchase has become more complex. “Mobile is unique because it is both a channel and a con- nective tissue. The metaphor of a funnel has been re- placed by a non-linear, non-sequential path to purchase. Only mobile can shepherd consumers through this new labyrinth to conversion. - Paul Gelb, vice president and mobile practice lead at Razorfish, New York. Mobile initiatives are most successful as a leveraged aspect of multichannel campaigns. Mobile’s biggest advantage is that it gives legs to other channels such as catalog, retail store, direct response television and ecommerce. The simple addition of a common short code and keyword can transform a campaign, call-to-action, storefront or loyalty program. Add to that a mobile- friendly site and apps for devices such as the iPhone, BlackBerry, Nokia, Android, the Palm Pre and others. And to promote all of that, use mobile display and paid search initiatives. With this combination, retailers and market- ers can breathe new life into their customer acquisition and retention efforts. For example, fast food chain Arby’smasterfullydrivestri- al, sales and loyalty through cross-media integration. The Hipcricket-supported campaign to launch its Roastburger product kicked off with a Jimmy Kimmel Live segment, where view- ers were urged to text the word ROASTBURGER to 27297 to receive a free sandwich with the purchase of any drink. Arby’s created 172 local databases to enable a local mobile capability and to han- dle the SMS response traffic from its television, radio and in-store promotions. Of consumers who started a text interaction through in- store signage, more than 89 percent opted to join the Arby’s local database. In addition, more than 90 percent of TV respondents did so. Since the initial launch, Arby’s has integrated mobile into many of its TV and radio com- mercials, print ads, Sunday coupon circulars, live events and in-store signage. Mobile is not an island unto itself and inasmuch as its most ardent fans would like to believe, the medium’s best use is in giving legs to others. Mobile has the po- tential to drive traffic to retail stores, as has been amply proved with campaigns from restaurant chains such as Papa John’s, McDonald’s, Burger King, Starbucks, Jiffy Lube and countless others with a physical footprint. SMS advertising, specifically, could give the advertiser an idea of the consumer’s engagement with the brand’s TV advertising. Ditto with radio. And it has proved to have worked. Oil change giant Jiffy Lube has gone on the re- cord to acknowledge SMS’ role in driving traffic to its locations. In most cases, the SMS call to action was run first on radio spots targeted to drivers in certain areas. What about direct mail and inserts? How about placing targeted keywords and short code on mail and inserts sent to consumers’ homes and offices? Ask them to re- spond via text for prompt fulfillment of the desired call to action. The examples can go on and on. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 20
  20. 20. Challenges with mobile advertising and fixes recommended To wit: Screen size continues to be an issue, lack of educa- tion among marketers, brands and agencies are also chal- lenges. Mobile advertising is a complex ecosystem with so many different platforms – iPhone, iPad, Android, Win- dows and Research In Motion, to name a few. Marketers need to build ads for each platform for maximum reach. Mobile does present a number of clear differentiators and advantages as an advertising medium, although tra- ditional consumer usage patterns – on-the-go, quick and short-usage bursts – have thus far translated to less pa- tience with intrusive ads. The challenges of diverse mobile technology means that strong targeting in mobile will not be easy to achieve, but those that break through the barriers will be the winners in the market and drive the most value for the industry. The main challenges of mobile advertising are lack of experience for new entrants, the somewhat complex na- ture of how to execute campaigns and uncertainty about ROI. The industry must focus on making sure that brands and agencies understand mobile is a marketing medium and not a strategy. Paul Cushman, senior director of mobile sales strategy at Yahoo Inc., Sunnyvale, CA, said that brands and agen- cies need to look at the broader digital strategy, goals, metrics, assets and budget, and determine how to in- tegrate mobile. Still, continued fragmentation among operating systems, devices, application environments and carriers will continue to plague advertisers. With every new device that hits the market, marketers are challenged with figuring out what works best from a creative standpoint. Additionally, on Dec. 1, 2010, the Federal Trade Commis- sion released a preliminary staff report setting forth a framework on how commercial entities should protect T he complexity of the mobile ecosystem and the precedent developments required in devices, in- frastructure, consumer behavior and advertising technology have held this market back from full tilt. consumer information. The purpose of the framework is to assist policymakers, including Congress, in their devel- opment of potential laws governing privacy and to guide and motivate industry to develop best practice and self- regulatory guidelines. The FTC’s proposal for a Do Not Track mechanism to let consumers opt out of targeted online and mo- bile advertising could be a big challenge to the mobile advertising landscape. According to Linda Goldstein, partner and chair of the advertising, marketing and media division of Manatt, Phelps & Phillips LLP, a New York-based law firm, indus- try groups and press coverage have criticized the report for failing to fully appreciate the importance and value of tracking in delivering relevant and cost-effective ad- vertisements to consumers. Without these tools, some claim, costs will increase as advertisers will not have the ability to efficient- ly deliver their message to consumers that fit their target audience. Critics argue that tracking also allows advertisers and ad networks to not deliver certain ads to consumers whose surfing behavior suggests that the ad would be irrelevant to or unwanted by them. For example, ads for feminine hygiene products would not be served to a viewer whose online history comprises Web sites geared primarily to men. The FTC’s proposal has similar concerns for mobile advertisers. “We still need to focus on how to maximize the benefits of mobile. We have just scratched the surface of how effec- tiveandversatilemobilecanbe.Oncewehaveestablished full value of mobile it will be easier to operationalize and improve the efficiency of all of its components and uses. A focus on discovering and creating all of mobile’s ben- efits requires staffing with a unique set of capabilities. Organizations must acquire or transfer creative and en- trepreneurial generalists that are confortable working in an unstructured environment.” – Paul Gelb, vice president and mobile practice lead at Razorfish, New York. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 21
  21. 21. Best-practice tips 1. Consider how consumers are now using their mo- bile devices: as a shopping tool for price comparisons, to share purchases with others, as well as a way to con- sume media and entertainment. Use mobile advertising to influence consumers based on shopping behavior. 2. Avoid buying cheap impressions and not focusing on making an impression on the target audience. Ad- vertisers often get lured into the cheapest inventory. It is important to evaluate the quality of those impressions. As the saying goes, “You get what you paid for.” 3. Set clear metrics for success. Whether they are per- formance or brand focused, setting clear metrics for suc- cess are imperative in mobile advertising. Engage with a third-party research firm such as Dynamic Logic to un- derstand the brand implications of a campaign. 4. Leverage targeting parameters. Mobile advertising enables incredible targeting parameters. Beyond behav- ioral and contextual, ad networks offer targeting such as geo, demo and keyword-based. The ability to engage your target audience at scale is unparalleled in mobile. Think about who you need to reach, when you want to reach them, and what you want them to do for an ef- ficient and effective buy. Mobile advertising offers the unique ability to target your audience through a number of methods, including behavioral targeting, demographic targeting and location-based targeting by country, re- gion, DMA and ZIP code. 5. Focus on the post-click experience. Not providing a fluid mobile experience post-click is a big mistake. Ad- vertisers should do user scenarios for a post-click ex- perience that is customized for the mobile audience. You can make an engaging mobile experience for con- sumers with rich media creative and highly-engaging post-click actions, including the ability to view videos, drive to social media sites, download apps and directly purchase products. 6. Learn from past efforts and what was learned in mobile from previous campaigns to lock up mobile inventory. Where demand exceeded supply in previous quarters, savvy marketers are quickly realizing the ROI and investing heavily. 7. Cross-platform is the way to go. Creating ads for a single platform, carrier or mobile device does not make sense, since not all consumers are on smartphones or on a single carrier. Excluding the full, relevant audience from a mobile advertising campaign will limit its success. Do not forget about connected devices such as gaming devices and tablets, feature phones, and other cross- platform opportunities. Do not overlook consumers who use feature phones. 8. Drive your objectives. You can engage your target consumer at every level of the purchase funnel. Drive awareness, capture information for re-marketing, drive consumers to bricks-and-mortar locations or to mobile commerce sales directly through mobile. Identify your campaign goals, then customize your message and strat- egy to achieve those results. 9. Follow the Mobile Marketing Association set of guidelines to mobile advertising, which is currently the industry standard. 10. Test, test and optimize. Test what works and what does not and optimize on the fly to increase ROI. Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 23