Improving the Economics of Mobile Marketing
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Improving the Economics of Mobile Marketing

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This whitepaper is intended to present a view of the current situation in mobile advertising and the trends that are shaping it today and will shape it in the future. While mobile devices are rapidly ...

This whitepaper is intended to present a view of the current situation in mobile advertising and the trends that are shaping it today and will shape it in the future. While mobile devices are rapidly outpacing traditional personal computers as the platform of choice for consumers, marketing and advertising are currently failing to keep up and capitalize on the opportunity. We divide this whitepa- per into three sections to review the issue. The first section outlines the current landscape and economic realities for digital advertising. The second section defines and describes the key challenges facing mobile marketers and contributing to the core problem of mone- tization (or lack thereof). The third and final section provides practical advice for improving the economics of mobile advertising for everyone – both advertisers and publishers alike.

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Improving the Economics of Mobile Marketing Improving the Economics of Mobile Marketing Document Transcript

  • Improving the Economics of Mobile Marketing September 2012
  • IntroductionIn 2011, more than 1.5 BILLION mobile phones were Mobile advertising, despite the growth and hype of recentshipped worldwide. 1.5 billion is an incredible number. Add years, is far from reaching its potential. The main measureto that the fact that nearly half a billion of those devices of economic health, Effective Cost per Thousand Impres-were smartphones and that 70 million tablets have been sions (eCPM), is currently only ~20 percent of desktop andsold and you have an unprecedented opportunity for is facing more downward pressure as inventory explodes,mobile connections, communication, media and globalization unfolds and operational and technicalcommerce. While there’s a surfeit of opportunity, there challenges around mobile technology grow instead ofare also seemingly overwhelming challenges that stand shrink. It will take a few visionary, strong companies to helpin the way of realizing the full potential of mobile as an forge a path forward, but make no mistake – there is a pathadvertising and marketing channel. forward and those following it today will be rewarded in the near future.This whitepaper is intended to present a view of thecurrent situation in mobile advertising and the trends that AdTruth benefits from the years of research our parentare shaping it today and will shape it in the future. While company – 41st Parameter – has conducted on themobile devices are rapidly outpacing traditional personal relationship between individuals and their devices. It is acomputers as the platform of choice for consumers, rich area of study and our device recognition andmarketing and advertising are currently failing to keep up intelligence background, combined with AdTruth’s deepand capitalize on the opportunity. We divide this whitepa- media experience and industry neutral position, allows us toper into three sections to review the issue. The first recognize trends and share insights with an industry strivingsection outlines the current landscape and economic to right itself.realities for digital advertising. The second sectiondefines and describes the key challenges facing mobilemarketers and contributing to the core problem of mone-tization (or lack thereof). The third and final sectionprovides practical advice for improving the economics ofmobile advertising for everyone – both advertisers andpublishers alike. To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
  • The Current Mobile Advertising LandscapeMobile Advertising TodayAccording to Informa WCIS, there are more than 1.1 billion mobile 3G Internet subscribers around the world. In the US alonethere are more than 200 million. This is a sign of things to come as mobile usage will only continue to expand and grow. eMarketer expects US mobile ad spending to reach $2.6 billion this year, up 80% from 2011. SOURCE: eMarketer Mobile Roundup (July 2012)With this amount of consumer adoption and expanding bandwidth at lower cost, it’s no surprise that eMarketer is predictingthis type of growth in mobile advertising spend. Further, this figure is US only; the global market should reach $5 to $6 billionin 2012.(Much) Too Soon To CelebrateWhile the figures above look impressive in isolation, other data certainly tempers our enthusiasm. The New York Timesrecently reported that mobile display advertising revenue was $1.6 billion in 2011. That’s a big number, but it’s a paltry 5percent of 2011’s total digital advertising revenue of $30 billion. By now, many readers will have seen the figures belowpresented by Mary Meeker, but they are worth revisiting. Ms. Meeker’s analysis suggests a $15 billion opportunity for mobileadvertising in the US alone if we can solve some of the core issues. Also evident in the analysis is the huge gap betweendesktop and mobile. Readers should keep in mind that many important and growing ad markets have little or no desktopenvironment, so this US-centric view hides the full global opportunity in front of us for mobile. | 2
  • Feeling the ImpactThe two most important data points for understanding the realities of mobile advertising monetization – the Facebook andMillennial IPOs – provide a grim view of the struggles we face as an industry.30-day tracking of Facebook and Millennial stock priceSolving the core issues holding us back in mobile is critical. Digital media is a bright spot around the world, but issues withmobile advertising and monetization potentially threaten the sector. Highly successful industry players with the economics toIPO are now forced to rethink timing. A July 26th, 2012 article from ExchangeWire highlights the issue with potential IPO analy-sis on the massively successful retargeter Criteo, claiming that “…the role mobile advertising plays within this is still some-what unknown (mobile display is stuck in a rut). Nevertheless, Criteo will need a bigger story in mobile come IPO time.”Key Industry ChallengesWhy is this happening? We believe there are seven key challenges facing the industry. As the best entrepreneurs andbusiness people understand, tough challenges present huge opportunities. We should focus on solving them rather thanavoiding or ignoring them, which is often the approach taken early in the cycle of new, disruptive technology.Challenge #1: Enormous, Fragmented Display Ad Impression SupplyThis first challenge feels like an oxymoron. Mobile display ad impression supply today is faced with two issues challenging theeconomics. First, there is an incredible glut of supply. On the InMobi mobile ad network alone, there were 287 billion impres-sions available in Q1 2012. There are billions of devices all producing more potential ad inventory than the industry couldpossibly sell, through social media, gaming, apps, the mobile Web – you name it. This means the value of that inventory–evenif it could be easily tracked and targeted–will face downward pressure. It’s a fundamental of economics we cannot avoid. To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
  • Challenge #2: The True Globalization of Digital MediaMobile, for the first time in media history, operates in a truly global environment. Games developed in Japan and Sweden areamong the largest mobile properties in America and Africa. Even more so than the traditional Web, mobile has cut acrossevery barrier imaginable. Impressions from familiar apps and publishers are available in every corner of the globe. Salesteams and agencies able to make the most of these impressions, however, are not. They remain concentrated in certain citiesaround the world, focused on individual geographies and on the legacy business of desktop.Instead of achieving new scale and coordination in global digital media, the industry is treating mobile like desktop when itcomes to creative, planning and buying. We need to take advantage of the global efficiency in mobile. This will bring biggerbuys and higher CPM into play. | 4
  • Challenge #3: Tracking is BrokenWhile this issue is third on our list of seven, it is the biggest issue of all. There is no consistent and universal way to identify,recognize, track and target mobile devices while respecting consumer choice. Despite the enormous potential of the mobileadvertising market, the types of tools marketers have come to expect and rely on in the desktop world just aren’t available. It’sa big problem and many in the industry are working to address it. What is your greatest concern when it comes to mobile advertising? 48% Tracking and measurement measurement 21% Cost and complexity of execution Cost and complexity of execution 15% Privacy 13% Ability to scale 3% Safety of my brand name brand nameBut simply transferring the old solutions to the mobile world isn’t going to work: cookies aren’t stored well; UDID and otherGUIDs are only present in applications and may or may not be available long term depending on the whims of operatingsystems and manufacturers who control them; and other approaches – such as invasive swishing techniques that drop anunsolicited identifier on a device – either don’t provide the necessary performance or raise valid privacy concerns.We need to embrace new approaches that free the industry from the current overlords of digital media – Google, Apple,Facebook, etc. If we collectively hand over control of tracking to them, our collective interests will not be served.Challenge #4: Privacy is ParamountNo matter how you look at it, privacy is a requirement that can’t be ignored. Whether this is the existential crisis some make itout to be or just a tempest in the digital teapot, it is high on the list for regulators and the public alike; and this means it needsto be on the minds of marketers as well. Failure to come up with a credible and effective means to protect consumers’ onlineprivacy – whether on mobile devices, traditional computer platforms or on emerging or yet unimagined devices – will result inthe failure of mobile advertising to reach its full potential. 94% of consumers consider Of Consumers Consider online privacy important Online Privacy Important For you, personally, how important is the issue of online privacy? 53% A really important issue really important issue that II think about often that think about often 41% A somewhat important issue somewhat important issue that I about sometimes that I think think about sometimes 6% Not much of an issue / /I I hardly much of an issue hardly everabout about it ever think think itConsumer concerns regarding privacy are real and increasing. A recent TRUSTe survey shows 94 percent of consumersthink privacy is important and 60 percent are more concerned about privacy now than they were a year ago. This increasingawareness is a proof point that companies must include privacy throughout the product design process. Privacy cannot be anafterthought. Period. To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
  • Challenge #5: Fraud is RampantFraud is endemic in the mobile marketplace. This issue is linked to globalization, but there is a much greater issue with fraudthan major industry players are willing to admit. Most executives know the problem accounts for between 20 to 40 percent ofall clicks – and that’s a big issue – even if they don’t talk about it. Why? Advertisers pay for it. “With the massive rise of mobile technology globally comes the inevita-ble appeal to crooks and criminals for fraud,” comments Ori Eisen, founder and CIO of 41st Parameter. “While it’s hard to quantify specifically in the earlydays, ultimately economics prevail and the impact to ROI in mobile advertisingdue to fraud will show up in the industry eCPMs. Dealing with this issue now will help improve the economics of the industry for the future.”Our opinions aside, a recent report from an advertiser on Facebook claimed that 80 percent of the clicks received on itsFacebook ads came from bots, while another report issued this year claimed that as many as 40 percent of clicks on mobileadvertisements are “worthless,” the result of either accidental or fraudulent clicks. Click fraud is rampant in the mobile spacebecause many advertisers lack the ability to accurately identify the devices that generate clicks.Challenge #6: The Download FixationWith all the issues it faces, the industry is expending an inordinate amount of its time and technical resources to find new andbetter ways to drive app downloads. This is because apps have been the only real bright spot in the industry. Unfortunately thisfixation is failing the broader advertiser community. It is motivating many players to act against consumers’ best interests withhigh frequency (i.e. Spam!) campaigns that are completely untargeted and use invasive tracking techniques such as swishingor permanent identifiers hidden from consumers.App download performance is important to be sure, but it is only one of many tracking use cases for the mobile industry. Basedon AdTruth research, the overall addressable market is nearly $40 billion, as shown in the chart below: Use Case Targeting $17.8 Reach & Frequency $5.7 Performance Tracking $5.1 Data Enrichment $2.5 Re-Targeting $2.5 Data & Analytics $2.5 Privacy Management $1.0 Fraud Prevention $1.0 Total Addressable MarketUntil solutions are put in place that look beyond download tracking and address the other–often far larger–use cases, theeconomics of the overall industry will not reach full potential. | 6
  • Challenge #7: Mobile Is Its Own PersonaOne final and critical challenge comes as a simple truism: change is hard. After struggling for 15 years to figure out digitaldesktop, the natural tendency is to treat mobile as an extension of desktop. Let’s look at the issue in a different yet familiarway. For decades, marketers have personified their brands and target audiences to help inform the strategy, creative andtactical marketing plans that would drive ROI. When we personify mobile and desktop, the vast differences between the twoplatforms become apparent: Challenge: Mobile Is Different Than Desktop Desktop Is... Mobile Is... Work & Task Oriented Highly Social & Entertaining More Static, Less Interactive More Dynamic, More Personal Cookie-based App-based Pages, Time, Engagement, Downloads, Click Measurement Sharing Measurement Stationary Mobile Mostly Solitary Often Shared Planned Activity Instantly GratifyingThere are huge differences between the channels and these require very different strategies, tactics, technologies, mediaplans and measurement. Certainly you can find common ground, but more frequently it’s uncommon ground and if we simplytreat mobile as an extension of desktop, mobile advertising ROI will suffer.Improving the Economics of Mobile AdvertisingSo how have the seven challenges described above manifested themselves? The impact has been wide and varied, but thebest generalization is mobile advertising that feels like spam to consumers with incredibly high frequency campaigns, unrec-ognized brands and invasive experiences that are both seen on our devices and read about in the news. The result is loweCPMs and a mobile advertising environment that remains fundamentally broken. It’s paramount that we as an industry build(or rebuild?) credibility with consumers and establish healthy mobile ad practices that focus on long term viability. If we blow itin the mobile ad space, we may not have much of a future with the brands that rely on us all to build their relationships withconsumers. Mobile is either the great promise or great failure of this generation of advertising professionals. To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
  • A Bear Market for Mobile Advertising eCPMAccording to the recent research from Mary Meeker of KPCB, mobile eCPM is only one fifth of that on the desktop ($0.75 vs.$3.50 in the US market.) As the volume of time spent on the mobile Web reaches parity (and eventually surpasses the desktopInternet, as is already the case in Japan and India) the gap between these figures needs to close. That won’t happen in thecurrent environment however, and the industry as a whole will continue to suffer as a result. India Internet Traffic by Type, Desktop vs. Mobile, 12/08 - 5/12 100% 80% % of Internet Traffic Desktop Internet 60% Mobile Internet 40% 20% 0% 12/08 4/09 8/09 12/09 4/10 8/10 12/10 4/11 8/11 12/11 4/12No More Doom and Gloom: Practical Advice to Solve the ProblemA true statement in business: the greatest challenges are also the greatest opportunities. So enough of the doom and gloom!There are practical and relatively quick ways to solve the problems we face. For an organization or team that wants to act,you can do so quickly. It’s largely a matter of summoning the will power to make these changes without fear of the hard workand potentially short-term costs that will intimidate many and leave the door wide open for a few.None of the challenges laid out are trivial, but a team focused on the mobile channel can consider all that’s been said hereand build four concepts into planning and strategy to begin to improve their position and that of the industry as a whole. Thesefour key elements include: 1. Embrace globalization and organize in mobile around the global opportunity; 2. Use and demand consumer friendly tracking technology now available in the market to open up more advanced digital media use cases in mobile; 3. Understand and act on the core differences between mobile and desktop advertising when it comes to strategy, technology and planning; 4. Build & measure mobile creative with the advantages (and differences) of the channel in mind. | 8
  • Solution #1: Embrace GlobalizationMobile is global, but only if you organize around it. Mobile specialist agencies focused on the nuances of the channel areorganized with the global nature of mobile in mind. “Forward thinking brands are already managing their mobile marketing strategywith globalization in mind,” comments Carl Uminski, COO of global mobile market- ing company Somo. “Our clients plan, buy and measure globally in the mobile channel. It’s truly a revolution in how they do business brought on by the unique global nature of mobile.” Are you setup to strategize and plan your mobile strategy on a global basis? 63% No 37% Yes YesThis change is the simplest to understand, yet potentially the hardest to implement. Only 37 percent of the 128 companieswho attended our recent MMA webinar are organized around the mobile opportunity globally, and these represent a biasedset of companies already predisposed to mobile. Imagine the numbers for a more representative set of marketers! Organiza-tional change is a hard shift that has to come from the top and must have buy-in across all levels and partners. For those thatmake the change, the efficiency in creative development, media planning and measurement is huge. Smaller teams accom-plish more in mobile as their work covers more countries with regional changes rather than entirely new plans and operations.Solution #2: Demand and Use Scalable, Consumer Friendly Tracking TechnologyThree of the biggest problems we face – globalization, the odd combination of massive inventory that is also highly fragment-ed, and privacy – relate to a lack of tracking in mobile. We desperately need a scalable and universal tracking technology todeal with these challenges, but the consumer experience must also be protected in the process. Because there are no effec-tive tools to identify audiences in the mobile channel, simple capabilities like frequency capping and targeting are unavail-able. This means people may be bombarded by irrelevant impressions, feeling spammed by advertisers that they might trustotherwise if they had better targeting and better capping on campaigns. “It’s critical, as an industry, that we fully capitalize on the mobile opportunitywithout impacting the consumer experience or risking their trust in us as an indus-try,” comments Paul Gelb, Vice President and Mobile Practice Lead at Razorfish. To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
  • Our privacy-by-design approach at AdTruth – based on device recognition and increasingly referred to as server-sidetracking – has demonstrated again and again its ability to accurately identify members of specific audiences for marketersin a consumer friendly way. With patented technology at its core, AdTruth has delivered documented lift of more than 200percent in the mobile ecosystem relative to cookies. This may sound too good to be true, but it is the kind of performanceimprovement that is needed to make mobile as effective a platform as possible. It’s also important to note that the trackingtechnology we have developed has applications beyond traditional desktop and emerging mobile environments. As newplatforms become available in the future, our device recognition approach to audience tracking will continue to be effective.User recognition and longer-lasting data are the keys to improving mobile advertising. Targeting to reach the right audiencesis the most critical element of digital advertising and a key tactic that will improve eCPM. The vast majority of online ad dollars(more than 50 percent) are spent against a data driven target with an appropriate cap on frequency to avoid spamming, butthis isn’t yet happening on mobile at scale. We need to get data into the mobile ecosystem in a privacy secure way, offertargeting at scale and cap our campaigns to protect our relationship with the consumer. We must commit to a great consumerexperience with applications, content and ads. Consumers are more educated in the post PC era, and we need to improve theexperience accordingly. [Details on the various audience recognition and tracking alternatives are described in our whitepaper “Solving the Audience Recognition Crisis.”] “We must put the user in the center of the mobile advertising universe, and build an amazing experience around them,” comments Anne Frisbie, Vice President and Managing Director of InMobi North America. “Data is the DNA that helps us achieve that goal.”User data and audience recognition go hand and hand, so we inevitably have to solve both to unlock the full economic poten-tial of the mobile advertising world. Cookies simply don’t work; UDID or Android ID are limited and put control of the future ofour industry into the hands of unwanted overlords Apple and Google, and other approaches like IP targeting just aren’t goodenough to get the job done. This is one area that will reward early adopters more than any other and the solution is starting tobe embraced widely in the industry.As a final critical aspect of this solution, we must promote and protect consumer privacy. Privacy is such an important issuethat it can’t be overstated. It’s not important simply because consumers and regulators are taking it seriously, but becausemajor brands don’t want to do anything that might compromise their reputation and relationship with customers. As an indus-try, we need to take a pro-privacy approach to individuals’ information. People need to understand what information is beingcollected, how it is being used and by whom; they also need to be given some control over that use. While many pay lip serviceto privacy, the issue deserves more than that.Privacy needs to be by design – not by accident and (hopefully) not by fiat. Our approach at AdTruth has been to tackle privacyhead on. From day one we have sought the advice of experts, the approval of regulators and the certification of third-partybodies. Protecting privacy cannot be an afterthought. | 10
  • Solution #3: Understand and Act on the Core Differences Between Mobile and DesktopIt would be easiest to simply reapply all the hard learning of desktop to mobile. That temptation, so far, has prevailed, in ourcollective approach to mobile advertising. The problem is that the differences between the two are vast, and our tactics andstrategies need to reflect that.Examining the platform personas defined earlier in this paper, some obvious conclusions can be drawn. Mobile is… 1. Highly social and entertaining. Our advertising should be the same way. No format since the advent of TV has provided so much creative opportunity. Using it for flat 320 x 48 banners exclusively misses the point entirely. 2. More dynamic, more personal. Mobile fills the gaps in our lives the way newspaper and radio used to, but is on demand and with us 24/7. The interplay among screens is an incredible opportunity to reinvigorate advertising. Creative and planning, divided between digital and “offline” TV/Print/Radio in the late ‘90s, needs to converge again. This is especially true with the pending transition to Smart TVs. 3. Application Based (Not Cookie Based.) The application is a great tool, but only when it truly adds value. If a brand cannot offer the content needed to provide a compelling app, sponsoring one that does can be an excellent tactic. Whatever your decision, mobile does not START with apps; it ENDS with apps. Start with the basics and if you can’t build it, sponsor it! It’s a tried and true approach. 4. Engagement, Downloads, Sharing. Impressions and clicks are functional and do not capture the full breadth of mobile. Social media and sharing, gaming, apps and content consumption all need to be measured. Small numbers can have a huge multiplying effect and we have the technology to report back. Basic tracking aspects of reach frequency and clicks still apply, but the incremental nature of mobile opens up new challenges (and measures). 5. Mobile. Obviously. Mobile is mobile, but we leave the incredible richness of the device unharnessed in most of what we do. Platforms – built around HTML5 technology – are evolving that will allow agencies to quickly build and re-purpose creative and easily tap into the features of the device for creative, calls to action and measurement – features built around its main purpose to communicate, connect and live with us wherever we go. It’s mobile. It’s a lean back device. It’s around when other devices are around. Let’s take advantage of that. 6. Often Shared. Unlike the desktop, mobile is about real-time, anytime sharing. A picture. A text. A tweet. The highly functional and work-oriented aspects of the desktop are almost perfectly juxtaposed (except for email) to the social, casual and local use of the mobile device. 7. Instantly Gratifying. Like offline media, mobile is a lean back experience that is highly conducive to good advertising. Impulsive entertainment, purchasing and sharing open up a huge opportunity for us as an industry. Running display ads repurposed from desktop will not impress consumers and may turn them against us.The challenge is to convince the brands so reliant on the industry to participate more fully. While we have a long list of AdAgeTop 100 brands in trial mode, we are not seeing familiar brands, or many brands that can really afford to capitalize on all thepotential outlined in this paper. Because the world of mobile advertising faces so many challenges, it has not yet become achannel for premium impressions. Instead, remnant inventory, unfamiliar brands and terabytes of relatively cheap digitalentertainment offers dominate the channel. Consumers need to see great ads from premium brands at scale. This legitimizeddesktop advertising, and it will legitimize mobile.We must convince the major brand advertisers to invest and experiment. Brands and agencies need to remember that theexciting capabilities available today are only the tip of the iceberg. The potential for marketing via the mobile channels is yet tobe fully understood, let alone tapped. That it remains a nascent market should not stop exploration and experimentation. Infact, it is only by exploring that the industry will be able to really alter the economic opportunities presented by mobile.Solution #4: Build and Measure Mobile Creative with the Advantages (and Differences)of the Channel in MindWe have to embrace the fact that mobile offers far more creative opportunities than desktop. Knowing that you are reachingyour intended audience in an effective and privacy-assured way is vitally important, but it isn’t the entire answer to unlocking thepotential of the mobile ecosystem. An equally important piece of the puzzle is for advertisers and marketers to come up withnew and more creative campaigns and approaches that take advantage of the unique characteristics of mobile.Mobile is a long list of verbs that are fun, viral and make for great creative. We can shake, swipe, point, play, message,Facebook, tweet, map, call, listen, click, photograph, share, email, search, view, check, read, calendar, video, buy, calculate,store, and much more.We can design campaigns that address all phases of the purchase funnel, leverage sponsorships and compliment otherchannels, especially TV. To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
  • These devices are deeply personal, always on, within an arm’s length at all times and have the power to do incredible things.It would be extremely unfortunate if their use was limited to display advertising. Looking at the ways people use their deviceslisted above that dont yet have a CPM attached to them, one can only begin to imagine some of the new approaches that willcreate a tighter and more engaging bond between a brand and its customers.Amazing examples from the creative geniuses at InMobi Studio appear below; or click to see them in action here:Mobile increasingly offers the practical functionality of traditional computing platforms conducive to direct response market-ing. Combine this with the more lean-back entertainment and social uses of mobile devices and you have an incredible oppor-tunity for both brand and direct response that could ultimately surpass desktop. For millions of people, their mobile device isthe center of their digital life. Marketers understand the potential of mobile but face obstacles on the path to success.While the goal is to bring up the price of CPMs on mobile, that is being thwarted in some situations by the ongoing explosion ininventory. This can be addressed through a better definition and understanding of the value of specific inventory types. Ifmobile continues to be driven by a remnant mentality and a dearth of premium brands, it will not reach its potential. Marketersalso should begin thinking more creatively about what could be considered “inventory” on mobile platforms. Certainly displayand in-app opportunities have been recognized, but now we are seeing “sponsored stories” on Facebook and targeted SMScampaigns. Taking advantage of these emerging channels–even though they may be viewed as yet another increase ininventory–can deliver greater value. | 12
  • Parting ThoughtsThe Facebook ExampleLest there be any question on the economic impact of the mobilemarket, one need look no further than one of the leaders of thedigital ecosystem. In the frenzied lead-up to Facebook’s IPOearlier this year, one of the most consistent and damagingconcerns centered on the company’s lack of a successful mobilemonetization strategy. In fact, the concerns were grave enough toprompt the SEC to compel Facebook to amend their S-1 filing toclarify the extent to which the growing shift of its users to mobiledevices could negatively impact their revenue. Here is thelanguage Facebook added to the “risk factors” section of thefiling:“We believe this increased usage usage of Facebook on devices “We believe this increased of Facebook on mobile mobilehas devices has contributed to the recent trend of our daily active contributed to the recent trend of our daily active users(DAUs) increasingincreasing more rapidly than the increase in the users (DAUs) more rapidly than the increase in the number ofads number ofIf ads delivered. If users increasingly access delivered. users increasingly access Facebook mobile Facebook mobile products as a substitute for access throughproducts as a substitute for access through personal computers,and personal computers, successfully implement monetization if we are unable to and if we are unable to successfullystrategies for our mobile users, or if we for our mobile users, or if implement monetization strategies incur excessive expenses we incur excessive expenses in this effort, our financialin this effort, our financial performance and ability to grow revenue performance and ability to grow revenue would be negativelywould be negatively affected.” affected.”ConclusionThe stakes have never been higher. When we read and hear thatmobile advertising is “stuck in a rut,” we should all be extremelyconcerned. Mobile is the near future of advertising and we mustget it right quickly to preserve a healthy economic future for theindustry. The continued abuse of the channel, the poor experi-ence defining mobile advertising and free-for-all approach todriving reaction and response from consumers will never get uswhere we need to be. All parts of the industry – publishers, adver-tisers, agencies and 3rd party technology players – have tocoalesce around these solutions. Some may be old news orobvious, while others open up new ideas and fresh thinking. Takentogether, we can solve the problem. Imagine a 3x to 5x increase inmobile eCPMs. Instead of a $5 to $6 billion opportunity today, wewould be talking about a $15 to $30 billion opportunity. It’s wellwithin our reach. And what happens when we succeed? Every-body wins – most importantly the digital consumer. If we losethem, we lose everything and we should not let that happen. To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
  • About the AuthorJames Lamberti, General Manager, AdTruthJames Lamberti brings more than 19 years of experience to AdTruth, 41st Parameter’s digitalmedia division. He is well versed in all aspects of marketing and has extensive executivemanagement experience gained at a number of successful ventures. Prior to AdTruth, Jamesserved as vice president of global marketing at InMobi – the largest and fastest growingindependent mobile ad network. This experience provided him with unique insights into theevolving mobile ecosystem. While at InMobi, James led demand generation efforts thatproduced measurable success. In addition, he was responsible for establishing the company asa global marketing presence in the mobile ad space. Prior to InMobi, James’ positions includesenior vice president at comScore – one of the global leaders in understanding web usage –where he focused on analytics, tracking and privacy. He also has strong experience in consumerpackaged goods due to his time as an executive with The Clorox Company. James graduatedwith Honors from Colby College with a BA in Economics. To learn more about AdTruth, visit www.AdTruth.com or contact us at info@adtruth.com AdTruth™ A Division of 41st Parameter, Inc.® 355 Santana Row, Suite 2000 San Jose, CA 95128 © AdTruth 2012. All Rights Reserved.