Stateofmobileadvertsing2011 mobilemarketer-110613041440-phpapp02


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Stateofmobileadvertsing2011 mobilemarketer-110613041440-phpapp02

  1. 1. CONTENTS PAGE 21 INTRODUCTION Mobile advertising on a tear By Giselle Tsirulnik 5 Primary drivers 11 What’s working and what’s not 13 14 Devices and ad formats that generate the best responses 18 Measuring mobile advertising 19 Making media buys for mobile advertising 20 Best-practice tips What is the state of mobile advertising? 8 Challenges with mobile advertising and fixes recommended 22 3 Integration with other channels and role as traffic driver Mobile creative messaging executions and campaigns that stand out 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@ 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: Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer,, the Mobile Marketer Daily 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. PAGE 2 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  2. 2. INTRODUCTION Mobile advertising on a tear W ith budgets in the hundreds of thousands and now in the millions, mobile advertising is proving to be the fastest-growing ad vehicle across all channels – that much is obvious in our first State of Mobile Advertising Classic Guide. marketing purposes? This document discusses the primary drivers of mobile advertising, which types of ad formats are most popular and resonate best and those that do not, the devices that see the most responses, creative executions But what is the state of mobile advertising, even as more that stand out, performance of ads on mobile Web sites marketers embrace the channel for branding and direct 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 corrections 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. Giselle Tsirulnik Senior Editor Mobile Marketer and Mobile Commerce Daily PAGE 3 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  3. 3. What is the state of mobile advertising? T he proliferation of smartphone devices and tablets in the plans for marketers to stay relevant. is shifting the way that marketers look at mobile advertising, making the channel more important to U.S. mobile advertising spend was estimated at $743.1 the multichannel strategy. million in 2010, according to eMarketer. This number is expected to reach $2.5 billion by 2014, the New YorkAs of December 2010, 302.9 million Americans reported based digital intelligence firm predicts. that they own a mobile device, making the U.S. wireless penetration 96 percent, according to CTIA – The Wireless Mobile advertising includes messaging, display, search Association. What is more is that 26.6 percent of U.S. and video ad formats. According to Microsoft Advertishouseholds are mobile-only, meaning that they do not ing, these ad formats are being used to: have a landline and instead depend on their mobile devices to make and receive all calls. Of these mobile sub- • Build brand awareness scribers, approximately 63.2 million own a smartphone, • Increase sales both online and in-store according to comScore. About 35 percent of smartphone • Extend special offers and coupons users access the mobile Internet from their device, il- • Enhance multichannel campaign efforts lustrating the reach that marketers can achieve with a • Increase customer acquisition, engagement and loyalty targeted mobile advertising campaign. • Simulate word-of-mouth and social media engagements Google’s Android and Apple’s iPhone have the highest 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 users. With more than 350,000 mobile apps in the Apple App Store – and another 65,000 iPad apps – and upwards of 150,000 in Android Market, the apps market is exploding. 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 consists 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. 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, according to an International Data Corp. forecast. Worldwide 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. A brand such as Target could sponsor this alert, with a marketing message at the bottom asking consumers 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 offers to their mobile device from the retailer. This, too, is SMS advertising. The consumer adoption of mobile apps and the increasing 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 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 PAGE 4 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  4. 4. than 7 trillion SMS messages in 2011. This massive number indicates that consumers are very comfortable using SMS to communicate with one another and it is a huge opportunity for marketers. The fact that consumers are increasingly comfortable communicating via SMS means that brands could potentially use the channel to speak with them. 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 publishes indicate that iOS and Android devices are seeing the best results when it comes to mobile advertising response rates, with the majority of ad requests made on Brands are already building databases of mobile users these two platforms. Research In Motion follows closely and sending them news and information updates, as well behind, per Millennial. When it comes to mobile Internet as coupons. With the expected growth in SMS for 2011, display ads, Google is tied at first place with Apple, with more brands will likely jump on the SMS advertising 19 percent market share, and independent ad network bandwagon. Not everyone has a smartphone, and com- Millennial Media comes in second place with about 15 municating with those that do not via SMS is the best percent, according to IDC. way to reach a wide audience. Borrell Associates forecasts that spending for ads delivDisplay ered via mobile apps in the U.S. will explode from $305 Display mobile advertising spend – rich media and static million in 2010 to $685 million in 2011 and more than banners that run in mobile apps and on the mobile Web – $8 billion by 2015, with $1.2 billion of that coming from PAGE 5 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  5. 5. • Click-to-call and click-to-text – The user clicks to initiate a call or text message to communicate with A click on a mobile banner ad on a mobile Web site or the brand. within a mobile app can create various interactions between a brand and consumers. Some of the most com- • Click-to-rich media – Most rich media ad units can be customized to the specific advertiser’s needs. But some mon types of interactions are: of the most common executions are click-to-video, click• Click-to-Web – This is when the user click on a ban- to-gallery and click-to-download. ner and is brought to a dedicated landing page that goes into more depth about the initial offer that the According to mobile rich media platform Medialets, advertisers and agencies are mostly asking for full-screen banner mentioned. interstitial ad units nowadays because they provide • App-within-an-app – This is when the user clicks on more room to do many of the interesting things that a banner ad within an application and is brought to a devices can run and, of course, because they perform Web-like experience, without actually having to leave really well. the app. This is a great experience because the user simply returns to the application after interaction with the Medialets’ mobile rich media benchmarks report found that interstitials generated engagement rates, on avad unit is complete. erage, of 10 percent, with iPad interstitials performing above that. These are the kind of performance metrics that are drawing advertisers and agencies to mobile display. local advertisers. Search Mobile search advertising is the paid listings that a consumer sees after entering a mobile search query. These paid listings show up because an advertiser is paying money to be ranked that highly for those phrases. When a searcher clicks on one of those listings, 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 PAGE 6 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  6. 6. are not looking to the smaller players such as Microsoft Video and Yahoo because they do not have the required traffic Mobile video advertising spend– whether it be pre- or post-roll, in-stream or in-ad unit executions – will reach volume for a successful search campaign, per IDC. $50.8 million in 2011, up from $28.3 million in 2010 and A Bing executive at CTIA Wireless 2011 revealed $12.6 million in 2009. By 2014, spend on mobile video that 50 percent of search queries on mobile have advertising is expected to reach $201.3 million, eMara local intent, with users searching for restaurants, keter predicts. movies and other forms of entertainment closest The launch of the iPad has really propelled the growth of to them. mobile video advertising. Mobile video has higher viewer When people are on their desktop, they are in research retention than online video, with 94 percent in the first mode. But when they are on their mobile device, they 10 seconds compared to only 81 percent on the PC Injust want to ask one thing and get an answer. They are ternet, according to Rhythm NewMedia, a mobile video not trying to decide which big-screen TV to get – they ad network. want to find a good restaurant nearby right now. Completion rates for interactive pre-roll video ads reMarketers are finally beginning to understand that they main high at 87 percent, exceeding online video and need to focus their mobile search efforts to take advan- television. Additionally, iPad CTRs for pre-roll video ads tage of mobile-specific capabilities such as location- are higher versus iPhone, iPod touch and Android. CTRs based services and voice and image-recognition tech- are 79 percent higher on display ads that mention video as a call to action. nology. Google’s approach in mobile is to innovate around spe- Brands within the consumer packaged goods and entercial capabilities of mobile devices to make the search tainment categories are leading the way in mobile video experience easy, fast and useful. The company focuses on advertising adoption, per Rhythm. location-based, voice and image recognition search. The number of U.S. mobile users who watch videos on Over the past two years, Google’s mobile search traffic their devices has increased more than 40 percent yearhas grown fivefold. It offers companies the following over-year in both the third and fourth quarters of 2010, ending the year at a grand total of almost 25 million mobile search tactics to gain a competitive edge: people, according to a mobile video report from Nielsen • A location-based search feature called “Near Me Now” Co. These consumers watched an average of four hours for iPhone and Android platforms, which lets users and 20 minutes of mobile video per month in both the browse through lists of nearby banks, restaurants and third and fourth quarter of 2010, which equals a 33 percent and 20 percent year-over-year bump in each quarother business categories ter respectively, per Nielsen. • Google Maps Navigator, which enhances the Google Maps functionality by providing turn-by-turn voice guid- Growth in mobile video consumption can be attributed to the ever-increasing adoption of media-friendly mobile ance and automatic rerouting devices such as tablets and smartphones. In the fourth • Google Voice search, enabled in seven languages in- quarter of 2009, a mere 23 percent of U.S. consumers had smartphones. In comparison, smartphone penetracluding English, Mandarin and Spanish tion grew to 31 percent by the end of 2010. Additionally, • Google Goggles, an image-recognition technology it has become much easier to find, view and share mothat lets users take pictures of objects with their mobile bile video with the proliferation of the mobile Web and phones and generates information based on the photos app usage. PAGE 7 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  7. 7. 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. Marketers follow consumer eyeballs. 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 percent. 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 advertising 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 advertisers finally understand that it is an effective marketing 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 effectiveness 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, according to eMarketer. Consumers are actually becoming PAGE 8 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 mobile ads and 12 percent said they were downright intrusive. 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 public 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 effective catalyst to date for mobile advertising.” –Mobile Advertising and Marketing: Past the Tipping Point, eMarketer, 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 mobile advertising opportunities. The platform gave content Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  8. 8. creators designing browser-based ads an additional opportunity 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, users 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. which they spend the most time. These channels – mobile, 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 publishers getting better advertising solutions, marketers findJust having someone such as Apple and Mr. Jobs as a ing new ways to reach consumers, and users getting betcreative force in the space is a huge advantage for driv- ter ads and more free content. ing attention and pushing the boundaries of where it can go. He did a good job of turning five-figure budgets in The iPhone 4 and other 4G-capable phones are also drivaverage ad spend to six- and seven figures. He proved ers of mobile advertising serve as the ideal canvas for the validity of rich ad experiences. He really speaks to interactive experiences. Every new generation of mobile chief marketing officers to tap into those print and TV devices to come out of the smartphone manufacturers 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 companies, from mobile marketing specialists such as Hipcricket 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 players both large and small began innovating and punching above their weight. Google’s acquisition of AdMob was validation that mobile 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 industry, 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. Consumers’ dependence on mobile has already changed them forever. They want to be spoken to via the channels in PAGE 9 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  9. 9. brings with it an exciting new set of features for developers to implement in their apps, which, in turn, advertisers 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. owning smartphones. Hence, conversations are shifting. 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 Rich media and innovative ad units have garnered the smartphones and feature phones are SMS-enabled. But attention of consumers, making the probability for a when marketers look at the mobile Internet, apps, vidclick-through higher. In fact, research firm InsightExpress eo and social networking, the large majority of traffic found that mobile advertising is four-to-five times more is coming from smartphone users, which is a different effective than online advertising, on average. That is due audience altogether. to various factors, including lack of clutter in mobile, typically one ad per page, and the mobile pages them- Consumer behavior on mobile is another driver of mobile selves typically do not have a lot of stuff going on—they advertising. For example, 82 percent of consumers have tend to be very clean. Also, the proportion of the ad on a used their mobile phones in a store, 55 percent in a docmobile screen is greater, so it gets more share of eyeballs. tor’s office or hospital, 17 percent during a movie at the theater, 14 percent while flying on a plane and 7 percent The iPad and other tablet devices are also drivers of mo- during church service. Around 17 percent of mobile users bile advertising. On the heels of Mr. Jobs’ official intro- have shown a clerk in a store a picture of a product on duction of Apple’s iPad, marketers and developers raced their mobile phone, saying in effect, “I want this please,” out the door with apps and advertising services for the which is a new shopping behavior that is surprisingly benew tablet. The iPad gave publishers and brands new and ing driven by men. Forty-five percent of users check their creative opportunities for creating meaningful and truly mobile devices first thing in the morning, according to engaging experiences with the consumer. What makes InsightExpress. Marketers recognize the opportunities the device most attractive to marketers is its form factor with advertising to these mobile consumers. for content consumption. The form factor allows brands to maximize how they interact with users and provide an engaging brand experience 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 performance 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 PAGE 10 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  10. 10. What’s working and what’s not 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, Brands and marketers need to remember to take the con- helping them find directions to a business, finding the text in which the consumer is seeing the ad. Therefore, hours of operation and click-to-call to get in touch with repurposed static banners and videos that are placed a customer service representative. It is a shame that so next to unrelated mobile content will not work. These many marketers are not taking advantage of mobile-speunits fail from a creative and media planning perspective cific functionality. The mobile device’s screen is smaller to pull the user into the ad experience. Another impor- than the PC’s and marketers need to keep that in mind. 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 behaviors rather than emerging technologies. There are a million different things that a marketer can do on mobile. 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 objectives? Mobile advertising has worked when the decision 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 users. 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 optimization. Google found that only about 21 percent of its largest advertisers have a mobile-optimized Web presence. That means that more than 79 percent are serving PAGE 11 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  11. 11. If all of the most relevant information for the mobile customer is not placed front and center on a mobile advertising landing page, consider the campaign a failure. cal queries, whether or not the keywords entered include 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 Target 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 campaigns are missing the ball. A click-to-call function is Harris Interactive con- a no-brainer and click-to-map, click-to-directions and ducted a survey on other useful actions for a mobile user should be incorbehalf of Pontiflex in porated. The mobile search results must be different December 2010. The from the desktop results, tailored specifically for mobile study found that ROI and accountability are of utmost searchers, otherwise marketers are not getting the most importance to brands and agencies, and while mobile out of their campaigns. advertising has proven its effectiveness when executed properly, click-through rate is a limited metric at best. A spray-and-pray approach to SMS, display and video This means that marketers need to take into account advertising is not going to work, either. Targeting is key. more than just the click. Gartner predicts mobile will be the No. 1 Internet access device by 2013. ABI Research believes that 8 percent of Forty-seven percent of mobile application users say they total ecommerce sales will come from mobile by 2014. click or tap on mobile ads more often by mistake than Also, according to comScore, nearly one-third of all mothey do on purpose. Given that mobile advertising mod- bile users already actively engage with Web content on els typically charge advertisers for clicks, the survey find- their mobile phones, and 53 percent of smartphone users ings indicate that a large portion of mobile ad dollars routinely engage in mobile Web browsing activities. are wasted. Advertisers need to be measuring beyond the click: time spent engaging with an ad and what consum- These consumers express intent and interest when they ers are doing on the landing page. Focusing solely on clicks visit a mobile site and click to the microsites built into it. is not working. Media buyers need to consider factors such as age, sex, location and the type of content that is being engaged When it comes to mobile search advertising, what works with on the site when deciding on where to advertise. Of online, will not necessarily work on mobile. Therefore, course, ad networks simplify this process by serving ads treating a mobile campaign as part of a company’s on- based on their relevancy. line SEM efforts will not work. There are a few reasons why, the most important being that the mobile searcher’s For SMS, segmenting the mobile database into smaller intent is very different from that of the desktop searcher. lists is a good best practice. Run a mobile coupon proSeparating mobile campaigns from PC campaigns allows gram to all of the people in the database. All those who marketers to break out keyword performance, reporting, opt to redeem the deal can be segmented into a list tracking and optimization so that it is unique for the called, “Those responsive to deals.” Consumers who acmobile space. Most engines will also assign a historical tively engage in free giveaways can be segmented in the weight to campaigns based on performance, so separat- “Freebie lovers” list, for example. This way, marketers can ing mobile campaigns will ensure they do not affect the target the right promotion to the right list of consumers relevancy of their PC counterparts. at the right time. Also, consumers who receive deals that they are more prone to participate in are less likely to get According to 360i, mobile search is most useful for lo- annoyed and opt-out in the future. PAGE 12 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  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 undoubtedly caused a disruption in the mobile space. 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 consuming 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 responding 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. Thirtysix percent of respondents responded to ads within text alerts, while only 11 percent responded to display ads on mobile Web sites. PAGE 13 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 traditional 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. Device manufacturers and wireless carriers have aggressively developed and marketed devices that resonate 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 2011
  13. 13. Notable creative messaging executions and campaigns that stand out 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. Weather Channel for iPhone app was another unique execution. The creative, which only displayed when there was a chilly forecast, invited users to wipe away virtual frost to reveal a stunning photo carousel featurThe ad focused on Camping eight Westin Hotels bell’s new contemporary & Resorts located in warm label design, 21 addition- climates. The combination of native device capabilities, al soup varieties with re- relevant targeting and a long, cold winter added up to an duced sodium levels and exceptionally powerful mobile rich media campaign. new recipes made easily with the brand’s soups. HBO’s True Blood Clickers could take a HBO’s True Blood mobile ad campaign increased viewernumber of actions once ship 38 percent. Medialets assisted HBO with the effort. engaged with the ad. HBO ran a rich media mobile ad campaign to promote The iAd aimed to increase the season three premiere of “True Blood” using a new ad awareness of what is new and relevant with Campbell’s unit that sent chills down consumers’ spines. The goals condensed soups and drive trial with a downloadable of the marketing campaign were to excite existing fans, coupon and recipes, also available through the iAd. intrigue the uninitiated and garner the attention of the industry to boost awareness and drive tune-in. The banner iAds, on average, achieved more than twice (35 percent) the brand recall of the average food and The campaign, as a whole, was successful—more than 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 expanded iAd has generated significantly stronger impact. 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 percent 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 PAGE 14 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  14. 14. 5.1 million viewers tuned in to True Blood’s season three and CBS. Additionally, The Hyperfactory leveraged its season premiere. Agency of record PHD and Medialets relationship with Pandora to create an Intel promotion chose iPhone applications from Variety, Flixster and vari- within the Internet radio service. ous inventory across Jumptap’s mobile ad network. The campaign saw lower bounce rates on mobile Imagine browsing through the Flixter application looking than with traditional Web advertising, possibly befor a movie or browsing the Variety application, and the cause mobile users are using their phones and searchfirst touch of the screen turns into a bloody fingerprint. ing for information with greater purpose than users on Tap it again and get another fingerprint, then the blood regular desktops. pours down and takes over the screen and the activation pops up: a tap-to-watch-trailer call-to-action with Apparently, search engine marketing saw 67 percent a banner ad at the bottom. bounce rates versus 89 percent for display advertising, per Intel. And it saw the lowest bounce rates on iPhones Intel (85 percent), Android (64 percent) and BlackBerry (71 Intel tapped mobile search to support its “Meet the Pro- percent) phones. Intel took these results as a sign that cessors” brand campaign that drove consumers to the more effort should be made to target the Android and technology giant’s mobile Web site. Search agency Co- BlackBerry platforms. vario Inc. tapped Bing for mobile and developed a campaign that used a combination of exact and broad match keywords. The result was that mobile cost-per-click was The Partnership at ran what it claims was 40 percent more cost-efficient than online search. one of the biggest public service campaigns in mobile history to help prevent teens and tweens from One of Intel’s key challenges was to educate consum- abusing medicines. ers about the key product differentiators of its microprocessor series. There The nonprofit organization tapped ChaCha to power the were a number of factors mobile advertising campaign that included both text that contributed to the 40 messaging and mobile video advertising, as well as conpercent greater efficiency, tent additions to ChaCha’s database that let users get 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 combined to make Bing for mobile very effective for Intel. Mobile display advertising also played a role in the Intel 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 PAGE 15 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  15. 15. answers when they asked about drugs, medication, alcohol 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 integrated its own content into GQ magazine’s Style Picks application 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 interactive 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. portal. Yahoo’s mobile homepage gets about 50 million unique visitors a month, which comes to about 1.5 million 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 Within the app, con- ran on Yahoo’s mobile homepage, with the top of Shrek’s sumers could click on a head along the bottom of the iPhone screen. If a consummodel with a new sum- er tapped on his dome, Shrek popped up to fill the screen, mer look and get a list with “Tickets” and “Show Times” icons on his forehead. of all the products that Another tap directs the user to a microsite, where he model was wearing. For could watch the trailer or buy a ticket for a local theater those users who liked via Fandango. On the Yahoo Movies mobile page, tapping what they saw, they Shrek’s head also caused it to fill the screen, where the could find the closest user could tap again to move to the microsite. CK store to go try it out. Additionally, if consumers wanted to know more about Iron Man 2 what CK had going for with that look, they could watch The average click-through rate of movie-ticketing giant the video where style experts from GQ and CK walked Fandango’s commerce-enabled Iron Man 2 mobile video through the new items. CK was able to reach men in ads surpassed 6 percent—more than eight times as effecdiscovery mode looking for ideas who were near a point tive as the average PC Internet video ad. of purchase. Fandango’s marketing goal was to drive movie ticket sales for the Iron Man 2 movie. The company wanted Paramount “Shrek Forever After” A Paramount mobile rich-media campaign for Shrek re- to target its main demographic of movie-goers and acsulted in a 6.2 percent click-through rate. The “Shrek tion lovers, so the company chose to place ads powered Forever After” campaign targeted iPhone users on the by iVdopia within movie, entertainment/gaming and Yahoo mobile homepage and the Yahoo Movies mobile sports apps. PAGE 16 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  16. 16. Fandango provided iVdopia with a Flash creative with a countdown of days left until the movie’s premiere. IVdopia helped convert the Flash creative into a video advertisement and executed the countdown with different video creative each day from April 29 to May 7, 2010. app for Apple’s iPad. The New York Times Editors’ Choice app offers a selection of the latest news, business and technology news, opinion and features chosen by Times editors that can be downloaded automatically to iPad, a publisher favorite. The mobile video ads appeared in a variety of applications for the iPhone and iPod touch, including Skyworks’ Goaaal! Lite, Arcade Hoops Basketball Lite, Field Goal Frenzy Lite, Arcade Bowling Lite, 3 Point Hoops Basketball Lite and World Cup Air Hockey Lite. The Editors’ Choice app launched with a full-page vertical 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 functionality. Depending on how a user tilted the iPad, a different reward showed up, spilling out of each side of the Chase The mobile video ad Sapphire card. creative had a clear call-to-action asking There were 12 different rewards that the ad promoted consumers to buy tickets that resulted it in 6.17 percent related to airlines, resorts, ski trips, even romantic dates. In addition to the interstitials, the campaign also includof users clicking on the “Buy Tickets” icon. ed half-page ads and banners with both landscape and On average, more than 25 percent of users who clicked portrait versions. on an iVdopia mobile video ad also did a post-click action. 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 PAGE 17 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  17. 17. Measuring mobile advertising A ccording to Paul Childs, chief operations officer of Adfonic, London, there are several ways of measuring the success of a campaign postclick. Mobile ad networks offer full post-click measurement 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. 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. Third-party ad serving technologies such as Atlas and DoubleClick that track when a user clicks on a third-party ad tag are gaining traction within mobile and will continue to instill greater confidence in mobile advertising measurement, Adfonic’s Mr. Child said. There will inevitably be some clicks that are generated by accident with all mobile display campaigns. But there are measures that advertisers can take to increase the proportion of high-value clicks versus accidental clicks. This enables the advertiser to assess performance from impression through to conversion and to establish their cost per conversion. Additionally, click-to-video campaigns that allow the advertiser to see how long a user Relevancy is vital, and mobile advertising networks work spent viewing their video enables them to gauge the true closely with publishers to ensure that ad placements are value of the click. relevant to the user. This is not only in terms of the channel and context of the surrounding content, but also by It is important that mobile networks provide advertisers employing sophisticated mechanisms such as geo-tarwith the right key performance indicators to facilitate geting to increase relevancy. the ability to work to cost per acquisition (CPA), cost per lead (CPL), cost per install (CPI) and cost per download Ensuring that ads are served to a highly targeted audi(CPD) targets, and to see that these targets are being ence with a high propensity to click on the ad in quesdelivered through a cost-per-click (CPC) campaign. This tion reduces the percentage of overall clicks that are level of transparency provides advertisers with the per- generated accidentally. formance visibility that they need to see how well their ads are performing. It is this increasing ability to fine-tune targeting to drive high-value clicks, combined with improved transparency The ability to do this in real time and optimize campaigns to measure mobile ad campaign performance from imas they run in much the same way that advertisers are pression to conversion that is encouraging more brands used to with online campaigns is key to maximizing the to come on board and increase their mobile advertising volumes of high performing clicks, hitting CPA targets budgets. Proof, if any more were needed, that mobile adand ultimately driving up ROI. vertising delivers relevant and valuable clicks. PAGE 18 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  18. 18. Making media buys for mobile advertising T he first step, as with any medium and not just mobile, is to know why you are buying mobile media. 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. Additionally, a campaign’s specific goals will dictate the To illustrate this point, Medialets and Razorfish worked type of media to buy, since the target audience is differ- on a campaign for Westin, which ran on The Weather ent from campaign to campaign. Channel app. It targeted users in cities where the temperature was below 30 degrees. The creative was about There are so many different options when it comes to the cold weather and the appeal of resorts in destinafrom which firm to buy mobile media. There are the ad tions where the weather is extremely warm. The media networks – Millennial Media, Jumptap, Apple iAd, Google and creative were completely integrated. Creative needed AdMob, Mojiva, InMobi, Greystripe, Air2Web and Micro- to know from the beginning that this type of placement soft, to name a few. For brands and marketers who are was possible. 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 example, 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-perclick 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 location 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 PAGE 19 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  19. 19. Integration with other channels and role as traffic driver D For example, fast food chain Arby’s masterfully drives trial, sales and loyalty through cross-media integration. The Hipcricket-supported campaign to launch its In the case of print, direct mail and out-of-home, mar- Roastburger product kicked keters are using mobile make what has traditionally been off with a Jimmy Kimmel one-dimensional very dynamic. Marketers can use mo- Live segment, where viewbile to make every other touch-point more effective by ers were urged to text the adding location context, social sharing capabilities and word ROASTBURGER to 27297 to receive a free sandwich interactivity to analog. with the purchase of any drink. Arby’s created 172 local databases to enable a local mobile capability and to hanAccording to Razorfish, one of the world’s leading dle the SMS response traffic from its television, radio and interactive agencies and one of the largest buyers of in-store promotions. digital advertising space, consumers are bombarded with thousands of ad messages. The attention of consumers Of consumers who started a text interaction through inis scarce and incredibly hard to obtain. Enhancing other store signage, more than 89 percent opted to join the channels is essential to generating the necessary ROIs. Arby’s local database. In addition, more than 90 percent As an always-on connected device, mobile is uniquely of TV respondents did so. Since the initial launch, Arby’s able to direct a consumer from one consumer touch- has integrated mobile into many of its TV and radio compoint to another. This is especially valuable as the path to mercials, print ads, Sunday coupon circulars, live events purchase has become more complex. and in-store signage. igital, out-of-home, TV, print and direct mail are channels that marketers can use as consumer touch points. Mobile can be integrated into these channels, giving them legs to work harder and perform better. “Mobile is unique because it is both a channel and a connective tissue. The metaphor of a funnel has been replaced 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 mobilefriendly 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 marketers can breathe new life into their customer acquisition and retention efforts. PAGE 20 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 potential 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 record 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 respond 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 2011
  20. 20. Challenges with mobile advertising and fixes recommended T he complexity of the mobile ecosystem and the precedent developments required in devices, infrastructure, consumer behavior and advertising technology have held this market back from full tilt. To wit: Screen size continues to be an issue, lack of education among marketers, brands and agencies are also challenges. Mobile advertising is a complex ecosystem with so many different platforms – iPhone, iPad, Android, Windows and Research In Motion, to name a few. Marketers need to build ads for each platform for maximum reach. consumer information. The purpose of the framework is to assist policymakers, including Congress, in their development of potential laws governing privacy and to guide and motivate industry to develop best practice and selfregulatory guidelines. The FTC’s proposal for a Do Not Track mechanism to let consumers opt out of targeted online and mobile advertising could be a big challenge to the mobile advertising landscape. According to Linda Goldstein, partner and chair of the Mobile does present a number of clear differentiators advertising, marketing and media division of Manatt, and advantages as an advertising medium, although tra- Phelps & Phillips LLP, a New York-based law firm, indusditional consumer usage patterns – on-the-go, quick and try groups and press coverage have criticized the report short-usage bursts – have thus far translated to less pa- for failing to fully appreciate the importance and value of tracking in delivering relevant and cost-effective adtience with intrusive ads. vertisements to consumers. The challenges of diverse mobile technology means that strong targeting in mobile will not be easy to achieve, but Without these tools, some claim, costs will increase those that break through the barriers will be the winners as advertisers will not have the ability to efficientin the market and drive the most value for the industry. ly deliver their message to consumers that fit their target audience. The main challenges of mobile advertising are lack of experience for new entrants, the somewhat complex na- Critics argue that tracking also allows advertisers and ad ture of how to execute campaigns and uncertainty about networks to not deliver certain ads to consumers whose ROI. The industry must focus on making sure that brands surfing behavior suggests that the ad would be irrelevant and agencies understand mobile is a marketing medium to or unwanted by them. For example, ads for feminine hygiene products would not be served to a viewer whose and not a strategy. online history comprises Web sites geared primarily to Paul Cushman, senior director of mobile sales strategy men. The FTC’s proposal has similar concerns for mobile at Yahoo Inc., Sunnyvale, CA, said that brands and agen- advertisers. cies need to look at the broader digital strategy, goals, metrics, assets and budget, and determine how to in- “We still need to focus on how to maximize the benefits of tegrate mobile. Still, continued fragmentation among mobile. We have just scratched the surface of how effecoperating systems, devices, application environments tive and versatile mobile can be. Once we have established and carriers will continue to plague advertisers. With full value of mobile it will be easier to operationalize and every new device that hits the market, marketers are improve the efficiency of all of its components and uses. challenged with figuring out what works best from a A focus on discovering and creating all of mobile’s benefits requires staffing with a unique set of capabilities. creative standpoint. Organizations must acquire or transfer creative and enAdditionally, on Dec. 1, 2010, the Federal Trade Commis- trepreneurial generalists that are confortable working in sion released a preliminary staff report setting forth a an unstructured environment.” – Paul Gelb, vice president framework on how commercial entities should protect and mobile practice lead at Razorfish, New York. PAGE 21 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  21. 21. Best-practice tips 1. Consider how consumers are now using their mobile devices: as a shopping tool for price comparisons, to share purchases with others, as well as a way to consume media and entertainment. Use mobile advertising to influence consumers based on shopping behavior. 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 2. Avoid buying cheap impressions and not focusing on a single carrier. Excluding the full, relevant audience on making an impression on the target audience. Ad- from a mobile advertising campaign will limit its success. vertisers often get lured into the cheapest inventory. It is Do not forget about connected devices such as gaming important to evaluate the quality of those impressions. devices and tablets, feature phones, and other crossplatform opportunities. Do not overlook consumers who As the saying goes, “You get what you paid for.” use feature phones. 3. Set clear metrics for success. Whether they are performance or brand focused, setting clear metrics for suc- 8. Drive your objectives. You can engage your target cess are imperative in mobile advertising. Engage with a consumer at every level of the purchase funnel. Drive third-party research firm such as Dynamic Logic to un- awareness, capture information for re-marketing, drive consumers to bricks-and-mortar locations or to mobile derstand the brand implications of a campaign. commerce sales directly through mobile. Identify your 4. Leverage targeting parameters. Mobile advertising campaign goals, then customize your message and stratenables incredible targeting parameters. Beyond behav- egy to achieve those results. ioral and contextual, ad networks offer targeting such as geo, demo and keyword-based. The ability to engage 9. Follow the Mobile Marketing Association set of your target audience at scale is unparalleled in mobile. guidelines to mobile advertising, which is currently the Think about who you need to reach, when you want to industry standard. reach them, and what you want them to do for an efficient and effective buy. Mobile advertising offers the 10. Test, test and optimize. Test what works and what unique ability to target your audience through a number does not and optimize on the fly to increase ROI. of methods, including behavioral targeting, demographic targeting and location-based targeting by country, region, DMA and ZIP code. 5. Focus on the post-click experience. Not providing a fluid mobile experience post-click is a big mistake. Advertisers should do user scenarios for a post-click experience that is customized for the mobile audience. You can make an engaging mobile experience for consumers 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 PAGE 23 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011