eMarketer Webinar: Mobile Ad Effectiveness


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The amount spent on mobile display advertising is expected to increase dramatically in 2014 as companies like yours shift budgets from desktop to mobile. But as you spend more on mobile, are you confident the metrics you’re using to gauge the effectiveness of your ad spend are valid? Topics in this webinar include: How have performance metrics for mobile display ads changed during the past year? Where are prices headed, and how does mobile display compare with desktop? Which mobile display ad formats are most effective—banners, rich media, video, social, local, native? What needs to be improved to further increase the effectiveness of mobile display ads?

Published in: Mobile

eMarketer Webinar: Mobile Ad Effectiveness

  1. 1. © 2014 eMarketer Inc. made possible by Mobile Ad Effectiveness Cathy Boyle Senior Analyst, Mobile August 21, 2014
  2. 2. © 2014 eMarketer Inc. Agenda Mobile display ad performance and pricing trends Effectiveness scorecard: Where mobile display advertising excels and where it falls short What it will take to improve mobile ad effectiveness further Twitter –#eMwebinar
  3. 3. © 2014 eMarketer Inc. Performance and Pricing Trends
  4. 4. © 2014 eMarketer Inc. Clickthrough rate (CTR) and cost per impression (CPM) remain mobile’s key efficacy benchmarks 1.Most marketers agree neither metric is perfect nor is each applicable to every mobile ad campaign 2.Still, tracking CTR and CPM rates over time providesinsight into marketer confidence in a particular ad format Source: eMarketer, April 2014 Twitter –#eMwebinar
  5. 5. © 2014 eMarketer Inc. The relative strength of mobile ad formats have not changed significantly in terms of CTRs 0.05% 5.0% Mobile Banners Mobile Rich Media Mobile Video Spectrum of CTRs Mobile Social Ads
  6. 6. © 2014 eMarketer Inc. CTRs for static mobile banners have gone the way of their desktop counterparts: downward Desktop Banner CTR Average, 2013: 0.08% (Sizmek)
  7. 7. © 2014 eMarketer Inc. CTRs for mobile rich media units have generally been above desktop norms Expandable ad units and interstitials were top performers
  8. 8. © 2014 eMarketer Inc. CTRs for mobile social ads have been on par with mobile rich media ad units Facebook’s mobile ads produced a better return on investment, according to marketers polled in two surveys. (Cowen, December 2013; RBC Capital, September 2013) Twitter –#eMwebinar
  9. 9. © 2014 eMarketer Inc. In-streammobile video adsgenerated the highest response rates, with CTRs up to 4.90% CTRs of rich media ads with embedded video were five times those without video. (Pointroll, 2013) To measure the true impact of in-stream mobile video ads, marketers also measure start rate and completion rate
  10. 10. © 2014 eMarketer Inc. Mobile display eCPMs—another signal of campaign performance—have steadily increased Effective CPM (eCPM) is a performance metric used by publishers and advertisers to understand the revenue generated per 1,000 ad impressions
  11. 11. © 2014 eMarketer Inc. Mobile display eCPMs—another signal of campaign performance—have steadily increased Effective CPM (eCPM) is a performance metric used by publishers and advertisers to understand the revenue generated per 1,000 ad impressions
  12. 12. © 2014 eMarketer Inc. Mobile CPMs remain lower than desktop CPMs—a condition likely to persist for some time
  13. 13. © 2014 eMarketer Inc. An increase in mobile ad spending will not necessarily result in higher CPMs Supply will continue to outweigh demand because spendingon mobile advertising lags time spentwith mobile devices Twitter –#eMwebinar
  14. 14. © 2014 eMarketer Inc. Mobile Advertising Scorecard
  15. 15. © 2014 eMarketer Inc. In aggregate, marketers and digital ad experts gave mobile advertising a “B-” gradefor effectiveness Their effectiveness scores for TV and desktop advertising were just slightly better
  16. 16. © 2014 eMarketer Inc. Marketers graded 16 aspects of mobile advertising in terms of effectiveness. Location- based ads received the highest mark Most effective Least effective
  17. 17. © 2014 eMarketer Inc. Location-targeted mobile ads Effectiveness score: A- Key Insights: The combination of location and daypart targeting is proving to be particularly powerful Location targeting enables brands to satisfy consumers’ real-time needs Twitter –#eMwebinar
  18. 18. © 2014 eMarketer Inc. Location-based ads are most powerful when the phone’s ‘use case’ is taken into consideration “We see a lot of people that don’t actually think about a hotel or a car until they get to where they’re going. So in that sense location targeting is a massively good way for us to reduce friction and say, ‘You don’t have to search. We’ll find where you are, we’ll find a property that’s close to you.’” —Blake Clark, director of mobile for Travelocity
  19. 19. © 2014 eMarketer Inc. Mobile in-stream video ads Effectiveness score: B+ Key Insights: Effective but inventory is still scarce, which puts limitations on campaign scale Short supply also has an inflationary effect on pricing, so at this point mobile in-stream video advertising is the domain of bigger brands The length and style of mobile video ads are also evolvingtoward shorter and less polished ads Twitter –#eMwebinar
  20. 20. © 2014 eMarketer Inc. JetBlue used video assets and location/device targeting to engage consumers For the airline’s “Air on the Side of Humanity” campaign, smartphone ads aimed to raise brand awareness and were delivered inside a geofencearound public transit centers during commuting hours Tablet ads were designed for deeper engagement and included a rich media game and long-form video Source: Mobile Marketer, April 4, 2014
  21. 21. © 2014 eMarketer Inc. Mobile sponsorship ads: Effectiveness score: B+ Key Insights: The form of the sponsorship varies widely depending on the content environment and the advertiser’s objective Clear objectives and key performance indicators are needed Twitter –#eMwebinar
  22. 22. © 2014 eMarketer Inc. Brand building was the objective of MINI USA’s mobile sponsorship campaign with UrbanDaddy “The [sponsorship] experience was about brand building, and it proved very successful for us. We looked at interactions within the app, how many people signed up to be a participant in the ‘MINI Night Out’ program and how many provided [contact details] to get more information.” —Lee Nadler, marketing communications manager for MINI USA
  23. 23. © 2014 eMarketer Inc. Hershey sponsored the mobile data needed to deliver the brand’s mobile video ad in-app The Hershey’s Scharffen Berger brand ran mobile banner adsin the Pandora iPhone app with a 30-second video on the landing page Copy on the ad explains the video is sponsored and does not consume datafrom the user’s phone plan Source: Mobile Marketer, April 1, 2014
  24. 24. © 2014 eMarketer Inc. Facebook’s mobile ad formats Effectiveness score: B+ Key Insight: The social network’s ads are helping marketers achieve multiple goals, from generating sales to driving app downloads Twitter –#eMwebinar
  25. 25. © 2014 eMarketer Inc. Facebook’s mobile ads are closest to closing the loop for marketers “Facebook is certainly the platform that’s come the furthest in terms of helping us understand how our media is driving the business. We’re starting to be able to do some things with Facebook’s mobile ads to drive omnichannel sales, and we’re very excited about that.” —Jennifer Kasper, group vice president, digital/new media and multicultural marketing at Macy’s
  26. 26. © 2014 eMarketer Inc. Result reporting process Effectiveness score: C+ Key Insights: The manner in which campaign results are reported for mobile display ads varies greatly by publisher and ad partner The disparate nature of reports makes it difficult to aggregate and interpretcampaign results Twitter –#eMwebinar
  27. 27. © 2014 eMarketer Inc. Reporting is still in its infancy—a consolidated view of all results is needed “Reporting requires separate plug-ins and it’s a challenge for marketers to roll up and understand all of the results in a single view.” —Heidi Browning-Pearson, senior vice president of strategic systems at Pandora
  28. 28. © 2014 eMarketer Inc. Measurement and analytics Effectiveness score: C Key Insights: Low scores for measurement and analytics indicate marketers don’t have a clear vision of mobile’s true impact, especially on foot traffic and sales in brick-and-mortar locations Methods for understanding what consumers do immediately after engaging with a mobile ad need work Twitter –#eMwebinar
  29. 29. © 2014 eMarketer Inc. Need to measure more than ad engagement “The analytics are there for engagement and understanding impressions. But it’s hard to track [the ad] to a transaction, and that’s where it falls down.” —Laura Jakobsen, senior vice president, marketing and design at Pinkberry
  30. 30. © 2014 eMarketer Inc. Mobile creative capabilitiesEffectiveness score: C Key Insights: Creative teams have only scratched the surface when it comes to leveraging the native capabilities of smartphones and tablets Creative assets developed for the desktop are often repurposed for mobile despite widespread agreement that a tailored ad experience would be more effective Twitter –#eMwebinar
  31. 31. © 2014 eMarketer Inc. Brands are beginning to push creative boundaries and leverage device capabilities Nivea launched Bluetooth-enabled print ads in Brazil Sources: Ad Age, June 17, 2014, BEcause Blog May 22, 2014
  32. 32. © 2014 eMarketer Inc. What Will Improve Mobile Ad Effectiveness Further?
  33. 33. © 2014 eMarketer Inc. Answers to this question revolve around four key areas: 1.Improved creative: Interactive formats that make use of all device capabilities and are integrated with the content experience. 2.Data integration: The ability to tie mobile users back into other data sets that marketers already own needs improvement. 3.Standards: Guidelines for creative development, user tracking and results reporting across devices need to be more cohesive. 4.Measurement tools: Better analytics and measurement solutions are needed to gauge return on investment and lifetime value. Off-the-rack-type tools would be ideal.
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  39. 39. © 2014 eMarketer Inc. Learn more about digital marketing with an eMarketercorporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Q&A Session Made possible by You will receive an email tomorrow with a link to view the deck and webinar recording. To learn more: www.emarketer.com/products 800-405-0844 or webinars@emarketer.com Cathy Boyle Mobile Ad Effectiveness Mobile Advertising Scorecard: Marketers Give Mobile Display a B-Minus for Effectiveness Mobile Ad Targeting: After Years of ‘Spray and Pray,’ Signs of Sophistication Appear Worldwide Ad Spending: Midyear 2014 Complete Forecast US Ad Spending: Q2 2014 Forecast and Comparative Estimates