But what is the state of mobile advertising, even as more
marketers embrace the channel for branding and direct
Mobile Marketer and Mobile Commerce Daily
Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 3
Mobile advertising on a tear
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
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.
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.
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
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
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
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?
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
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 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
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
• 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
• 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
Medialets’ mobile rich media benchmarks report found
that interstitials generated engagement rates, on av-
erage, of 10 percent, with iPad interstitials performing
are drawing advertisers and agencies to mobile display.
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
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
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
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-
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
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-
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
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
Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 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
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
Consumer acceptance of mobile ads is also a driver, ac-
cording to eMarketer. Consumers are actually becoming
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
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
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
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
“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
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
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
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
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
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-
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
Devices and ad formats that generate the best responses
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-
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
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
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
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 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
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
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
The Partnership at Drugfree.org ran what it claims was
one of the biggest public service campaigns in mo-
bile history to help prevent teens and tweens from
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
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 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
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
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
Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 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-
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
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
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
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
Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 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
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
gies such as Atlas
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-
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
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
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-
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
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
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,
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
Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011PAGE 19
Integration with other channels and role as traffic driver
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
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
al, sales and loyalty through
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
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
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
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
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-
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
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
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
“We still need to focus on how to maximize the benefits of
mobile. We have just scratched the surface of how effec-
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
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
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
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