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Mobile Advertising Trends Report 2015

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Mobile Advertising Trends Report 2015

  1. 1. Mobile Advertising Trends Report 2015 By FunMobility Mobile Advertising. Simplified.
  2. 2. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 2 Summary The landscape is changing. A worldwide explosion of mobile ad budgets has sparked a dramatic evolution of technology, standards, and best practices. Now, even the fundamental goals that industries are hoping to achieve with mobile ads have changed. Amidst the excitement of this seismic shift, there is a lot of hype—and there are a lot of empty promises. This report will bring you up to speed, providing a no-nonsense examination of the principal forces reshaping the world of mobile advertising. We also examine how each of the major industries fit into the big picture, evaluating projected mobile ad spend for 2015, the different goals of their mobile campaigns, and—most importantly—how advertisers can use mobile to accomplish those goals. Analysis is derived from aggregate data sourced from FunMobility’s own clients, as well as industry reports and editorial content from major vendors and thought leaders in the mobile ecosystem.
  3. 3. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 3 Overview 1. Programmatic Buying & Real-Time Bidding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What is it?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Benefits for Mobile Advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Seeing Through the Hype—Limited Targeting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Seeing Through the Hype—Limited Ad Formats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rapid Adoption Driving Rapid Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Mobile Display Ad Formats: New & Improved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mobile Rich Media—Worth the Investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mobile Video Ads—Finally Where They Need to Be. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Native Ads—Redefining Your Social Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mobile Engagement Ad Units—Customized to Align with Any Goal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IAB Mobile Rising Stars—New Standards Leveraging Mobile Functionality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Who’s Buying? Breakdown by Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retail—Ground Zero of the Cash-plosion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Finance—CTR Soars on Mobile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Automotive—Driving Brand Value with Mobile Rich Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Telecom—Building 1 to 1 Consumer Relationships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consumer Packaged Goods—Brand Awareness Through Mobile Engagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . Travel—Ads Enable Frictionless Booking on Mobile Devices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Technology—Fierce Competition Amongst Manufacturers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Media & Entertainment—Leveraging Mobile Video Ads to Tell Their Story. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Health & Pharmaceuticals—Lagging Behind. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Where’s the Money? Mobile Display Ads vs. Total Digital Ad Spend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 6 7 8 9 10 11 12 13 15 16 17 19 20 21 22 23 24 25 26 27 28 30
  4. 4. 1 Programmatic Buying & Real-Time Bidding From a marketing standpoint, buzzwords don’t get much more buzz than “Programmatic Ad Buying”—a process which has already transformed the ecosystem of online ads, and now seems likely to do the same for mobile. But, while it’s certainly tempting to jump on the programmatic band wagon, it’s important to filter out the hype and enthusiasm to discern what is actually currently possible on mobile—as opposed to what may be possible, some day.
  5. 5. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 5 What Is It? Programmatic Buying & Real-Time Bidding Programmatic Buying Programmatic ad buying refers to automated purchasing of digital ad inventory, circumventing the human- managed process of buying ad space via contracts or insertion orders. But it’s a subset of programmatic buying—Real- Time Bidding (RTB for short)— that’s really making headlines in the mobile advertising world. RTB only accounts for $4 billion of the $7 billion annually spent on programmatic buying (Business Insider), but it has come to dominate the conversation so completely that the terms “programmatic” and “RTB” are now used more or less interchangeably. Real-Time Bidding The main analogy everybody seems to be latching onto is “day-trading stocks”—incorporating algorithms and automation software so that we can keep up with a massively complex, constantly evolving system. More specifically, real-time bidding is an automated process that happens within the fraction of a second between when a consumer clicks to open a site or app with available ad space, and when the site or app actually loads on the consumer’s mobile device. During this fraction of a second, real-time contextual information about the available ad space is sent from the supply side (publishers) to the demand side (brands, agencies, etc)—who then automatically do or do not place bids for the ad space.
  6. 6. funmobility.com(855) 849-4900 6Mobile Advertising Trends Report 2015 3 Benefits of Programmatic Buying for Advertisers Programmatic Buying & Real-Time Bidding Streamlining Mobile advertising involves a complicated workflow, with the hundreds of millions of unique eyeballs, viewing tens of millions of sites and apps, on hundreds of different devices, across multiple screens. The more an advertiser can reduce friction in this process, the better. On the Fly Optimization Real-time bidding parameters can be set to automatically adjust in real-time, so ad placements that underperform will be phased out to focus only on purchasing space that is generating good results. On the Fly Optimization Targeting RTB allows for a sizeable improvement in an advertiser’s all-important audience targeting capabilities, by including a number of additional contextual parameters into the buying process. The publisher is no longer just saying, “I have available ad space on my app, which attracts X demographic.” They are now also saying, “I have available space on my app, and it’s about to be viewed by a specific consumer, who meets a specific criteria, at a specific time of day, in a specific geographic area.” Streamlining Targeting
  7. 7. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 7 Seeing Through the Hype—Limited Targeting Programmatic Buying & Real-Time Bidding Now for a dose of reality: the most valuable aspect of Programmatic Buying and Real-Time Bidding—highly- informed audience targeting—doesn’t really exist yet for mobile devices. A consumer viewing ads on a desktop is generating a lot more personal data for the advertiser to work with (specifically browsing history). For example, RTB makes it possible for automotive advertisers to serve ads only to consumers who have been browsing automotive sites, and to serve different ads to different consumers based on what types of automotive sites they have been browsing (i.e. luxury, economy, etc). But this sort of behavioral tracking is still limited on mobile devices. And, while mobile consumers do deliver valuable contextual information (specifically their exact location) for advertisers, it’s not nearly as useful for real-time-bidding purposes as browsing history.
  8. 8. funmobility.com(855) 849-4900 8Mobile Advertising Trends Report 2015 Seeing Through the Hype—Limited Ad Formats Programmatic Buying & Real-Time Bidding Mobile programmatic buying is largely limited to static banner ad placements, and has not been able to keep pace with the constant evolution of ever- more engaging mobile ad units. Native ads, video ads, and all the other rich media mobile ads poised to take over the market are still only available via direct partnerships with publishers or managed ad buys. So, while programmatic buying and RTB streamlines the process in terms of scale, it has not yet replaced human management in terms of impact and engagement. “You can buy millions and millions of small ads across websites and apps in programmatic channels right now. The question is, do you have anything like the kind of impact you might have on TV, or on desktop PCs with rich media? Everybody talks about reach and targeting and audience. But if you don’t have impact, what good does it do?” - Eric Franchi, Co-Founder of Undertone
  9. 9. Rapid Adoption is Driving Rapid Improvements Programmatic Buying & Real-Time Bidding A recent survey from Millennial Media suggests that 57% of advertisers are already buying programmatically on mobile, with 77% reporting that they plan to do it before December of 2015. Businesses Insider projects even faster growth, as much as 56%, year-over year. “In 2015, programmatic buying of digital advertising inventory will expand beyond standard IAB ad units into premium placements and nontraditional display units, such as in-image, native, and content marketing.” - Ken Weiner, CTO of GumGum Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 9
  10. 10. Mobile Display Ad Formats: New & Improved 2Repeatedly, studies cite mobile banner ads as failing in two important ways: they’re too small, and they’re too boring. But the static mobile banners that have long dominated the industry are finally being replaced by a variety of innovative new ad units designed to leverage the qualities and features unique to mobile. The early results are promising, with these more engaging mobile ad units delivering several times the performance of static banner ads.
  11. 11. Mobile Rich Media—Worth the Investment Mobile Display Ad Formats: New & Improved The term “rich media” refers to any ad that delivers a deeper experience than is traditionally seen with mobile banner ads. According to the MMA (Mobile Marketing Association), rich media ad units are defined as offering streaming video content, animated GIFs within the ad, an audio layer, or any interactive feature set other than basic mobile click- through. Mobile rich media ads can take advantage of functionality unique to mobile devices, allowing for deeper consumer experiences and engagement. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 11 Consumers can be encouraged to tilt, tap, pinch, shake, or swipe to progress through ad content in a fluid and organic way. These additional layers of multimedia and interactivity are showing extraordinary results, with Opera Mediaworks reporting that mobile rich media campaigns outperform static media campaigns by nearly 400%. Millennial Media reported a similar boost to performance, with the rich media bump driving between 3-5x the CTR of static media ads, depending on the vertical.
  12. 12. Mobile Video Ads—Finally Where They Need to Be Mobile Display Ad Formats: New & Improved Video ads on mobile are really taking off, as consumers get more and more accustomed to watching television programs and movies on their mobile devices. YouTube reports that nearly 40% of all video watch time now happens on mobile. The Media & Entertainment industries are particularly big buyers of mobile video ads, with more than 50% of their mobile campaigns involving video. Video spots—which may be frustratingly disruptive to consumers in some contexts, are far less intrusive and far more effective when served as opt-in content within an app, allowing users to earn in-app rewards or currency in return for viewing the ad. A 2012 Nielsen study comparing the effectiveness of video ads across devices found that mobile devices performed substantially better than both desktop computers and televisions. eMarketer projects that video ad spending will grow by 50% in 2015, going from from $4 billion to $6 billion. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 12
  13. 13. Native Ads—Redefining Your Social Strategy Mobile Display Ad Formats: New & Improved Consumers, in general, don’t like advertising. Sure, they tolerate advertising. They appreciate how it helps them make informed purchases, and maybe they even appreciate how advertising funds their favorite websites and television shows. But they still fast forward through commercial breaks. That’s where native advertising comes in. Unlike typical mobile ads, which deliberately jump off the page to grab consumer attention, native ads are designed to seamlessly blend in-stream with a particular app or website, blurring the distinction between content and advertising. AdRoll reports that Facebook ads appearing in the News Feed—looking for all intents and purposes like ordinary Facebook posts—achieve an astonishing 49x higher click-through rate (and subsequently, a cost-per-click that is less than 20% that of traditional Facebook ad placements.) Business Insider projects that, due to the success of native ad placements on social sites, native spend will account for 42% of all social media advertising by 2017. Yahoo has already announced that it plans to eventually phase out all non-native display ads. “In the future, all advertising on social media will be native in-stream ads. The right rail and banners will disappear altogether.” — Jan Rezab, CEO of Socialbakers Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 13
  14. 14. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 14 Native Ads—Redefining Your Social Strategy Mobile Display Ad Formats: New & Improved Consumers don’t like being fooled. Advertisers need to tread carefully with native ads. Though the format lends itself to much higher CTR, the end result can be negative consumer experiences if people feel “misled” by clicking on the ad. There is a rising tide of consumers reporting frustration with native ads; they expect click-through to deliver an actual piece of content, not blunt advertising materials. The numbers reflect this frustration: while the CTR is undeniably higher with native ads, the actual click-to-conversion rate—a barometer for how well-received the ad is by consumers—is substantially lower (16% lower, in the case of Facebook). As consumers grow more savvy about native ads, performance may well decline unless advertisers make the effort to ensure these ads don’t pretend to be something they’re not.
  15. 15. Mobile Engagement Ad Units—Customize to Align with Any Goal Mobile Display Ad Formats: New & Improved Advertisers and marketers can be tasked with any number of different goals for a given mobile ad campaign: driving store traffic, building brand awareness, capturing consumer data, etc. Mobile Engagement Ad Units integrate a customizable post-click consumer experience, providing a single solution that’s capable of aligning with all of these diverse goals. The ad units initially load as mobile rich media animated banners, but on click-through they transform to responsively fill the screen with an interactive overlay tailored to meet the campaign’s specific need(s). The Most Popular Post-Click Experiences: Smart Form Capture registrations or consumer data with custom dynamic fields Tap-To-Call Instantly create 1-to-1 consumer relationships by integrating a button that triggers a phone call. Store Finder Drive foot traffic by providing map directions to participating locations Promotion Page Build awareness and prompt social sharing with multi- media engagement Instant Survey Reveal trends, product/service preferences, and consumer feedback by polling your target audience Mini-Game Build brand value and extend dwell time by making the experience fun and interactive. funmobility.com(855) 849-4900 15Mobile Advertising Trends Report 2015
  16. 16. funmobility.com(855) 849-4900 16Mobile Advertising Trends Report 2015 IAB Mobile Rising Stars—New Standards Leveraging Mobile Functionality Mobile Display Ad Formats: New & Improved The Interactive Advertising Bureau (IAB) announced 5 new mobile ad unit standards for its official portfolio, designed to leverage mobile functionality for better performance. A study by Vibrant Media, IAB, and comScore found that users were three times more likely to interact with Rising Stars Ads than standard mobile banners—8.5% vs. 2.8%. Video completion rates experienced a 19% lift. IAB Mobile Rising Stars Formats: Filmstrip Functions as a “window” that lets users swipe to scroll through a variety of content. Pull A standard top or bottom banner that the user drags vertically to reveal a fullscreen ad. Adhesion Banner A standard banner that “adheres” to the mobile screen—maintaining consistent position and size, regardless of how site content is manipulated (i.e. zoomed, rotated, etc). Slider A standard top or bottom banner ad that the user slides horizontally to reveal a fullscreen ad. Fullscreen Flex A fullscreen ad format involving responsive creative elements that automatically re-arrange to look great in both landscape and portrait orientations.
  17. 17. Who’s Buying? Breakdown by Industry 3 The mobile advertising industry has spent the past several years growing at an explosive rate (reaching triple digits, annually). eMarketer estimates that, in 2015, the United States alone will buy $17.73 billion worth of mobile ads. But where, exactly, is all this money coming from?
  18. 18. $4,090 Retail $370 Health & Pharmaceuticals $2,200 Finance $1,850 Automotive $1,540 Media & Entertainment $1,680 Telecom $1,140 Technology $1,260 CPG $1,250 Travel $770 Other 2014 Projected US Mobile Ad Spend ($ Millions) Total: $17.73 Billion
  19. 19. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 19 Projected Spend: Retail—Ground Zero of the Cash-plosion Who’s Buying? Breakdown by Industry Advertisers Should: Primary Goal: Accounting for more than a quarter of all mobile ad revenue, the retail industry has embraced mobile more than anyone else. Retail’s slice of the pie is so big, it’s necessary to break down the ad spend even further, by vertical. According to a study by xAd, three verticals account for 80% of all retail mobile ad spend. Big Box stores are the biggest spenders in town, claiming 33.3% of the pie. Clothing & Apparel and Home & Garden account for an additional 48.8%. The remaining 20% or so is divided up amongst a variety of smaller players. Driving traffic—both on the web and to brick and mortar locations. Take advantage of mobile’s hyper-local targeting capabilities and integrate a store-finder feature in all mobile campaigns. • 25.3% of 2015 U.S. mobile ad spend • $4,090 million$49 Million Clothing & Apparel Home & Garden Other Big Box Stores What Makes Up Retail? 33.3% 28.6% 20% 20.2%
  20. 20. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 20 Projected Spend: Advertisers Should: Primary Goal: Financial service institutions and banks might not be the first thing that jumps to mind when you think of mobile advertising, but the finance industry is the 2nd highest spender, behind retail. The reason? Finance sees a click-through rate for mobile ads nearly FOUR TIMES higher than for non-mobile digital ads (though mobile still accounts for just a third of all digital ad spend). Various performance-based activities (i.e. registrations). Provide clear and concise incentives for registration, and make the process as frictionless as possible for the consumer. Remember, typing is difficult on mobile devices, so minimize the amount of required text fields. Finance—CTR Soars on Mobile Who’s Buying? Breakdown by Industry • 12% of 2015 U.S. mobile ad spend • $2,200 million Average CTR, Finance Industry
  21. 21. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 21 Projected Spend: Automotive—Driving Brand Value with Mobile Rich Media Who’s Buying? Breakdown by Industry Advertisers Should: Primary Goal: While it is obviously unrealistic to expect consumers to buy a car based solely on a mobile ad, the improved awareness mobile allows for both brand value and specific local offers has become an important part of automotive marketing. One thing advertisers should watch out for: though much has been made of “geo-conquesting” (serving mobile ads in proximity to competing locations) as a tactic, the results for the automotive industry have thus far proven subpar. It is the basic commodities businesses—where the consumer’s decision-making process is more prone to change on a whim–that see success with geo-conquesting. Awareness Take full advantage of mobile’s extensive targeting capabilities to serve campaigns to the most relevant audience. And use the newer, more engaging mobile ad formats to showcase the product—automotive sees a bigger boost when using rich media ads than any other industry. • 11.5% of 2015 U.S. mobile ad spend • $1,850 million The automotive industry sees a bigger boost than any other industry when using rich media ads. Static AdsRich Media Ads 4.5x CTR
  22. 22. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 22 Projected Spend: Advertisers Should: Primary Goal: Telecom—Building 1 to 1 Consumer Relationships Who’s Buying? Breakdown by Industry Compared to other industries, a much larger portion of Telecom’s mobile ad spend is spent on search— meaning its role in the mobile display ad economy is significantly smaller. “We are going way out of our way to get people to opt-in and say, we’ll give you something of value, and we can now serve more targeted information to you. I think you will see a lot more of that in 2015.” - Evan Conway V.P. of Monetization and Strategy, Pinsight Media+ Data capture: direct response Nearly 20% of mobile ads in the Telecom industry employ a “place call” feature, according to Millennial Media. Though mobile consumers can place a call simply by clicking on a phone number in their browser, adding a clear “tap-to-call” button into the display greatly increases conversions. • 10.4% of 2015 U.S. mobile ad spend • $1,680 million
  23. 23. Mobile Advertising Trends Report 2015 Projected Spend: Advertisers Should: Primary Goal: Consumer Packaged Goods—Brand Awareness Through Mobile Engagement Who’s Buying? Breakdown by Industry Despite surface similarities to the retail industry, CPG brands allocate a much smaller budget to mobile ads, likely due to mobile’s reputation for being most effective at a local level. One often overlooked mobile strategy for CPG lies in how they utilize co-op advertising dollars. Though global co-op ad spend accounts for more than half a TRILLION dollars annually (source: IAB), very little of that is put towards mobile. With retailers already dedicating so many resources to mobile advertising, it makes sense for CPGs to piggyback off that investment by underwriting some of the cost for their products. Brand Awareness Leverage rich media, ads, social share, and Mobile Engagement Ad Units to provide a fun and interactive consumer experience with each campaign. Branded mini-games are proven to drive brand value and extend dwell time. • 7.8% of 2015 U.S. mobile ad spend • $126 million Chiquita Banana Berry Smoothie Invite a whole bunch of fresh berries to jump in the blender with a Chiquita Banana. Watch the magic happen. Easy to make and you can always vary the recipe ingredients a little to keep your Banana Berry Smoothie drinking experience innovation and fun. funmobility.com(855) 849-4900 23
  24. 24. Mobile Advertising Trends Report 2015 Projected Spend: Advertisers Should: Primary Goal: Travel—Ads Enable Frictionless Booking on Mobile Devices Who’s Buying? Breakdown by Industry With the increased popularity and availability of mobile booking, major Online Travel Agencies (OTAs) are investing more than ever in mobile ads. Mobile’s extensive audience targeting capabilities, coupled with programmatic ad buying, allows for matching the perfect travel package with each consumer. Geo- targeting is an especially crucial consideration for travel, for obvious reason. Bookings Create eye-catching mobile rich media display ads that offer clear, up-front incentives for booking— and then deep link directly into the booking process itself on a mobile-optimized website. Mobile ads promoting same-day and last-minute packages tend to perform best. • 7.7% of 2015 U.S. mobile ad spend • $1,250 million funmobility.com(855) 849-4900 24
  25. 25. Projected Spend: Mobile Advertising Trends Report 2015 Technology—Fierce Competition Amongst Manufacturers Who’s Buying? Breakdown by Industry Advertisers Should: Primary Goal: In the same way that other industries are using geo-conquesting to serve mobile ads in physical proximity to competitors’ locations, mobile device manufacturers can use “Techno Conquesting” to serve ads on competitors’ mobile devices. Android, for example, might serve ads on iOS devices near the end of their market lifespan—and in doing so motivate customers to switch brands. Awareness Target their mobile audience by type-of-device. This incredibly valuable targeting criteria is often overlooked by mobile advertisers in favor of more obvious criteria like location, but the amount of information you can infer from a consumer’s choice of mobile device is huge: income bracket, personal style, etc. • 7.1% of 2015 U.S. mobile ad spend • $1,140 million funmobility.com(855) 849-4900 25
  26. 26. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 26 Projected Spend: Primary Goal: Advertisers Should: Media & Entertainment—Leveraging Mobile Video Ads to Tell Their Story Who’s Buying? Breakdown by Industry Mobile ad spend from Media & Entertainment is projected to grow faster than any other industry, thanks primarily to advances in video and rich media ads. A tally of reports from different vendors indicates that more than half of all entertainment-related mobile ads include the option to watch a video. Game-to- game ads—gaming apps being advertised within other, popular gaming apps—are also common. Awareness: New Product Launch Focus on short spot video ads, which show excellent general recall even on smaller screens. TV-standard thirty second spots are also starting to gain popularity, in the right context. Just make sure to track how much of each video ad consumers are actually watching, to better refine your message. • 9.5% of 2015 U.S. mobile ad spend • $1,540 million More than half of all media and entertainment mobile ads include the option to watch a video.
  27. 27. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 27 Projected Spend: Advertisers Should: Primary Goal: Health & Pharmaceuticals—Lagging Behind Who’s Buying? Breakdown by Industry The health and pharmaceuticals industries are a bit late for the party, still hesitating to seriously invest in mobile ads. Pharmaceutical DTC advertising, in particular, is one of the only areas where investment in digital display ads is actually decreasing, down 22% since 2012, according to a report from Nielsen. Health and pharmaceutical projected spend for 2015 seriously lags other industries in both growth and volume, and the majority is spent on search advertising, not display. This provides a gap in marketplace saturation that savvy advertisers can capitalize on. Awareness: Product Information Preferentially target mobile ads to tablets, not smartphones. Tablet owners tend to have more disposable income, are 3x more likely to make a purchase based on a mobile ad, and use their devices primarily for web browsing—which is the behavior that health & pharmaceutical ads need to encourage, in order to educate users about their product. •2% of 2015 U.S. mobile ad spend •$370 million “We’re still misaligned with where people are needing our information… We’re drastically overspending on print and TV, and underutilizing the mediums where people are looking and paying attention.” - A.J. Triano inVentiv Health’s Palio+Ignite
  28. 28. Where’s the Money? Mobile Display Ads vs. Total Digital Ad Spend 4
  29. 29. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 29 2015 US Digital Ad Spend Mobile Display Ads vs. Total Digital Ad Spend funmobility.com(855) 849-4900 29Mobile Advertising Trends Report 2015 0 10 20 30 40 50 60 Total Digital Ad Spend Total Non-Mobile Digital Ad Spend Mobile Ad Spend Mobile Search Ads Mobile Display Ads Mobile Display Ads—Google Mobile Display Ads—Millennial Media Mobile Display Ads—Apple All Other Mobile Display Ads 2014 US Digital Ad Spend ($ Billions) Major Stakeholders: According to Business Insider the Mobile Display Ad market share was broken down as follows: • 30.5% Google • 28.9% Millennial Media • 12.7% Apple • 27.9% Other For advertisers other than Google, Apple, and Millennial Media, the projected US market for mobile display ads is $2.4 billion—less than 5% of US digital advertising dollars.
  30. 30. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 30 References AdRoll: “Facebook Exchange News Feed By The Numbers” http://support.adroll.com/wp-content/uploads/2013/06/FBX-by-the-Numbers-June-2013.pdf Business Insider: “The New Mobile Advertising Ecosystem: How Programmatic Is Reshaping the Industry” https://intelligence.businessinsider.com/the-new-mobile-advertising-ecosystem-2013-11?utm_ source=House&utm_medium=Edit&utm_term=MAEN1113&utm_ content=link&utm_campaign=BIIMobile Business Insider: “The Rise of Native: Why Social Media Advertising Is Going In-Stream” https://intelligence.businessinsider.com/the-rise-of-native-advertising-2013-10?utm_source=House&utm_medium=Edit&utm_term=SMN1113&utm_content=link&utm_ campaign=BIIMobile- eMarketer: “2015 Digital Ad Spending Benchmarks By Industry” https://www.emarketer.com/go/digitaladbyindustry eMarketer: “IAB Rising Stars Ads Outperform Standard Banners” http://www.emarketer.com/Article/IAB-Rising-Stars-Ads-Outperform-Standard-Banners/1010761 IAB: “Co-Op Advertising: Digital’s Lost Opportunity?” By Rebecca Lieb http://www.iab.net/media/file/CoopAdvertisingStudy.pdf IAB: “Mobile Rising Stars Ad Units” http://www.iab.net/risingstarsmobile#1 “Is Online Pharma DTC Spend Continuing Its Downward Slide?” http://pharmamkting.blogspot.com/2015/04/is-online-pharma-dtc-ad-spend.html Millennial Media: “Year In Review S.M.A.R.T. Report,” “Programmatically Mobile” http://www.millennialmedia.com/mobile-intelligence/smart-report/ http://www.millennialmedia.com/mobile-intelligence/infographics/programmatically-mobile/ Mobile Marketer: “Mobile Outlook 2015” http://www.shutterstock.com/multiple_users.mhtml Opera MediaWorks: “The State of Mobile Advertising Q2” http://www.operamediaworks.com/sma_q2_2013.html
  31. 31. Mobile Advertising Trends Report 2015 funmobility.com(855) 849-4900 31 References(Continued) Smaato: “Mobile RTB Insights Report” http://www.smaato.com/reports/ Study: Cross-Platform Video Ad Effectiveness by Nielsen & AdColony http://www.slideshare.net/AdColony/ad-colony-majorcpgbrandnielsenstudyfinal XaD: “Year In Review: Mobile’s Big Impact on Retail” http://info.xad.com/2013_year_in_review_bi Youtube Statistics: https://www.youtube.com/yt/press/statistics.html

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