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Iab mobile landscape


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Iab mobile landscape

  1. 1. Introduction & Brand Planning Online<br />Tim Elkington<br /> Director of Research and Strategy<br />
  2. 2. Upcoming IAB events and research<br />Events & Training<br />Mobile Planning Seminar – 18th January – 9am – FREE<br />Research Breakfast – 19th January – 9am – FREE<br />Research<br />Launching a brand online – Starbucks VIA – Q1 2010<br />Students Online – Q1 2010<br />The benefits of behavioural advertising – Q1 2010<br /><br />
  3. 3. Brand planning online<br />
  4. 4. Brands spending more online<br />
  5. 5. £1,968.6mmarket in H1 2010Anincreaseof£209m year-on-year10% increaseon a like-for-like basis<br />Source: PwC / Internet Advertising Bureau, The Advertising Association / WARC<br />
  6. 6. The digital media mix<br />% share of revenues for the H1 2010<br />H1 2010<br />total<br />£1,968.6<br />NB: Other includes Lead Generation and Solus E-mail<br />Source: PwC / Internet Advertising Bureau / WARC <br />
  7. 7. The display digital media mix<br />% share of display revenues for H1 2010<br />H1 2010<br />display total<br />£380.9m<br />Source: PwC / Internet Advertising Bureau / WARC<br />
  8. 8. Video shows market beating growth<br />Pre/mid/post roll grown <br />X 5 in 2 years<br />Source: PwC / Internet Advertising Bureau <br />
  9. 9. IAB estimates for industry sector shares are based on categorised net revenue from media owners provided by PwC. <br />Data excludes unclassified, multi-advertiser and misc figures and covers 72% of online display revenues in H1 2010. <br />Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC<br />Share of spend by Consumer Goods advertisers has grown<br />
  10. 10. Top 20 online display advertisers<br />Source: Nielsen Media Research Jan – Jun 2010<br />
  11. 11. Brand = 5% in 2008<br />
  12. 12. Brand = 12% in 2010<br />
  13. 13. Why? <br />1 - The rise of large brand friendly display formats<br />
  14. 14.
  15. 15.
  16. 16.
  17. 17. Why? <br />2 – Increased use of online video ads<br />
  18. 18. Online video audience<br />35.1 million unique viewers<br />6.65 billion videos viewed<br />561.7 million hours of video viewed<br />16 hours per person per month<br />Source: ComScore September 2010<br />
  19. 19. Mindset influences recall<br />State of mind: Expectant<br />Attention: Higher<br />Ad Recall: 44% Completion: 61%<br />State of mind: Reflective<br />Attention: Lower<br />Ad Recall: 37% Completion: 42%<br />Pre-Roll<br />Video Clip<br />Post-Roll<br />BASE: 4459. All exposed to advertising<br />
  20. 20. Significance of daypart and location<br />State of mind: Distracted<br />Behaviour: Exploratory<br />State of mind: Attentive<br />Behaviour: Restricted<br />Evening<br />Daytime<br />Willing to explore<br />Focused attention<br />RESPONSE<br />CAMPAIGN<br />BRANDING<br />CAMPAIGN<br />
  21. 21. Why? <br />3 – It’s easier to plan & buy online media<br />
  22. 22.
  23. 23. 31,000 People at home<br />
  24. 24. 4,000 People at work<br />
  25. 25. UKOM demographic information<br />Gender & age (2+)<br />Region<br />Household size & Income<br />Social grade & Acorn groups<br />Main shopper<br />Life plans – new car, home improvements<br />
  26. 26. November 2010 stats<br />Source: UKOM November 2010<br />Apr 2010:<br />Digital Universe 46.9m aged 2+<br />Active Universe 40.5m aged 2+<br />Average 2424 pages/user<br />
  27. 27. Top 10 sites for reach – no surprises<br />Source: UKOM November 2010<br />
  28. 28. Example UKOM data<br />AB Women aged 45+<br />Source: UKOM September 2010<br />
  29. 29. Example UKOM data<br />ABC1 Men earning over £50K that intend major home improvement in next 6 months<br />Source: UKOM September 2010<br />
  30. 30. Initiative Mobile Landscape Update<br />Jon Mew<br /> Director of Mobile and Operations<br />
  31. 31. In today’s presentation<br />A few stats<br />Advertising spend<br />Recent research<br />Advertising trends<br />Outlook<br />Summary<br />
  32. 32. 1. A FEW STATS<br />
  33. 33. Things are getting interesting<br />
  34. 34. Handsets get smart<br />Smartphones reach inflection point in UK<br />24% of the UK now have smartphones+70% YoY<br /><ul><li>Non-smartphones -10% YoY
  35. 35. UK has the fastest growth rate in Europe</li></li></ul><li>Content - Social networking is huge<br />Average minutes spent per user<br />Source: Comscore/GSMA MMM April 2010, UKOM July 2010<br />
  36. 36. Pricing - has got simpler<br />Unlimited data plans<br />quadruple<br />in last 2 years<br />Source: Comscore<br />Source: comScore GSMA MMM; comScore Media Metrix, December 2009<br />
  37. 37. Mobile internet usage is still growing<br />Source: Comscore 3 month rolling average<br />
  38. 38. 23% of online time is spent on mobile<br />Source: Comscore GSMA/MMM<br />
  39. 39. 2. Advertising spend<br />
  40. 40. 2009 total mobile ad spend breakdown<br />Total market £37.6m<br />+32.2% yr / yr<br />Source: IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates<br />
  41. 41. Based on 55% of total display ad spend<br />IAB estimates for industry sector shares are based on categorised net revenue from media owners provided by PwC. <br />Data excludes unclassified, multi-advertiser and misc figures and covers 55% of mobile display revenues in 2009. <br />Source: PricewaterhouseCoopers / Internet Advertising Bureau<br />Industry sector display market shares<br />
  42. 42. 3. RECENT RESEARCH<br />
  43. 43. Experience in mobile advertising grows<br />What experience do you have with mobile advertising? <br />Difficult to sell in to our clients<br />Less respondents have NO experience of mobile advertising in 2010<br />
  44. 44. Mobile specialist responsibility in planning campaign grows<br /> Who is responsible for the planning of mobile campaigns within your agency?<br />Specialist mobile team easily accessible to planners and our online specialists and known/used by them.<br />2 years on, the proportion of mobile specialists in 2010 responsible for planning mobile campaigns has practically doubled<br />
  45. 45. Mobile specialist responsibility also increases within media buying<br />Who is responsible for the buying of mobile campaigns within your agency?<br />We are aligned with a mobile specialist<br />
  46. 46. Mobile commerce research<br />Consumers moving faster than retailers – 4.2m visitors to retail sites every month<br />41% of UK retail brands expect to have transactional mobile presence in next year<br />59% expect mobile revenues to increase next year – 94% see it as an opportunity<br />74% want more training – only 1 in 10 retailers think they are experts in the area<br />Source: IAB / AIME / IMRG / Orange Mobile Commerce research<br />
  47. 47. Mobile commerce consumer wave <br />People do it – 51% of the UK engage in M-Commerce, spending up to £14.50 on an average transaction <br />People like it – 42% say they use their mobile because it is the easiest way to research/buy <br />M-Commerce will continue to grow- <br />49% of non M-Commerce users say they will purchase in the future<br />35% can’t on their current handset <br />Smartphone users are 63% more likely to engage in M-Commerce<br />only 9% mention security issues<br />Source: IAB Consumer M-Commerce Study October 2010<br />
  48. 48. Mobile messaging research<br /><ul><li>Getting customers to opt in is key
  49. 49. When consumers are opted in, they are over 200% more likely to agree that messaging is the best medium to grab attention and receive information
  50. 50. Messaging achieves huge stand out
  51. 51. Almost 100%of the M&S base remembered the SMS & MMS, the MMS in particular cuts through
  52. 52. 74% of non opted-in consumers would do so given the right incentive
  53. 53. Brands must overcome 5 key barriers awareness, perceived cost, relevance, control and privacy
  54. 54. When brands are communicating via messaging, be relevant with valuable content, a relevant time of day and fair level of frequency </li></ul>Source: IAB / DMA Messaging study September 2010<br />
  55. 55. 5. CURRENT TRENDS<br />
  56. 56. Current trends<br />Innovative <br />Useful<br />Personalised<br />
  57. 57. Current trends<br />Innovative <br />Useful<br />Personalised<br />
  58. 58. Personalised services<br />Hello, Jon<br />
  59. 59. Natwest and O2 More<br />zero wastage<br />26% click through<br />
  60. 60. Gifi<br />
  61. 61. Current trends<br />Innovative <br />Useful<br />Personalised<br />
  62. 62. Fanta Stealth Sound<br />
  63. 63. Museum of London<br />
  64. 64. Google Goggles<br />
  65. 65. O2 - Shopcasts<br />
  66. 66. Current trends<br />Innovative <br />Useful<br />Personalised<br />
  67. 67. USAA- Banking from your phone<br />
  68. 68. Tron<br />
  69. 69. Pinpoint<br />
  70. 70. Nigella<br />
  71. 71. 5. OUTLOOK<br />
  72. 72.
  73. 73.
  74. 74. 6. SUMMARY<br />
  75. 75. Summary<br /><ul><li>Key drivers shift – handsets, content, pricing
  76. 76. Total mobile ad market grows 32% despite worst year on record for advertising </li></ul>Key advertising trends are Personalised, Innovative and Useful<br /><ul><li>Mobile set to overtake fixed internet in 4 years, so start planning now</li></li></ul><li>CUSTOMER CONVERSION JOURNEYSECTOR: TRAVEL<br />
  77. 77. Contents<br />Background and methodology<br />What we measured – Brands and their activity<br />Results – Web site visitors and behaviour<br />Results – Affect on online activity<br />Results – Latency of display advertising<br />Summary<br />
  78. 78. Background and methodology<br />
  79. 79. Background<br />The IAB wanted to investigate<br />The role all forms of online media play in the customer conversion journey<br />How online media work most efficiently when integrated<br />The non-linear nature of the customer journey and the way that different formats interact with each other on the journey in the build up to conversion<br />The real impact of display advertising on site visits and user behaviour <br />
  80. 80. Methodology<br />Nielsen NetView panel monitors activity of 40,000 representative UK internet users at home and work<br />Software installed on panelists' PCs records their online activity – each URL visited and search made is recorded<br />The online activity of three brands – BMI, British Airways, Virgin Atlantic and is tagged to allow identification of those that have been exposed to the activity – for example online display advertising<br />The three brands are identified as Brands ‘A’, ‘B’ and ‘C’ in the research results – some details (e.g. sample size, visitor numbers) have been masked to preserve the anonymity of the brands<br />The URLs within the sites of the three brands are categorised into one of three areas – ‘general visit’, ‘obtaining a quote’ or ‘making a purchase’<br />This enables us to answer two key questions<br />Which users were exposed to which elements of the online campaigns?<br />What activities users conducted during visits to the brands’ websites?<br />
  81. 81. What we measured – brands and their activity<br />
  82. 82. What we measured – time periods, activity and sample size<br />Brand C<br />Brand A<br />Brand B<br />Two months<br />Period<br />One month<br />Two months<br />Activity<br />Display<br />Sponsored Search<br />Organic Search<br />Referrals incl. Affiliates<br />Email<br />Display<br />Sponsored Search<br />Organic Search<br />Referrals incl. Affiliates<br />Email<br />Display<br />Sponsored Search<br />Organic Search<br />Referrals incl. Affiliates<br />Sample <br />Size<br />500 – 1,000<br />500 – 1,000<br />1,000+<br />Source: Nielsen NetView<br />
  83. 83. What we measured – levels of activity online and offline<br />Medium<br />Medium<br />Small<br />Small<br />Paid Search<br />Click Thrus <br />Display/<br />Email<br />Offline<br />Activity<br />Large<br />Large<br />Medium<br />Brand A<br />Small<br />Brand B<br />Medium<br />Brand C<br />Source: Nielsen NetView & Nielsen NMR<br />
  84. 84. Results – web site visitors and their behaviour<br />
  85. 85. An average of one in four visitors at least obtained a quote<br />Brand A<br />Brand B<br />Visit - 72%<br />Brand C<br />Average of <br />Brands A, B & C<br />Quote - 25%<br />Purchase - 3%<br />Source: Nielsen NetView – Average of three brands<br />
  86. 86. Purchasers are more likely to have been exposed to activity<br />Brand A<br />Brand B<br />Brand C<br />Total Site<br />Visitors<br />Total Site<br />Visitors<br />Total Site<br />Visitors<br />86%<br />69%<br />69%<br />Exposed to activity<br />Exposed to activity<br />Exposed to activity<br />Quote/Purchase Pages<br />Visitors<br />Quote/Purchase Pages<br />Visitors<br />Quote/Purchase Pages<br />Visitors<br />94%<br />75%<br />78%<br />Exposed to activity<br />Exposed to activity<br />Exposed to activity<br />Source: Nielsen NetView<br />
  87. 87. Example user journey - one<br />Quote<br />Visit<br />Purchase<br />Brand related search x 2<br />SEARCH <br />TERMS<br />1<br />15<br />43<br />16<br />3<br />DAY<br />Direct<br />Sponsored Click<br />Display<br />Display<br />Display<br />EXPOSURE<br />Visit<br />Visit<br />Sponsored Click<br />Quote<br />Source: Nielsen NetView<br />
  88. 88. Example user journey - two<br />Quote<br />Visit<br />Purchase<br />Destination related search<br />Brand related search<br />SEARCH <br />TERMS<br />1<br />22<br />29<br />DAY<br />Display<br />Exp: x4<br />Sponsored Click<br />Organic Click<br />EXPOSURE<br />Visit<br />Visit<br />Direct<br />Purchase<br />Source: Nielsen NetView<br />
  89. 89. Display more likely to drive first steps<br />Three Most Likely First Touch Points<br />Three Most Likely Last Touch Points<br />WWWWWWWWWW<br />1st<br />1st<br />Organic Click <br />Organic Click <br />2nd<br />2nd<br />Sponsored Click <br />Sponsored Click<br />Brand A<br />3rd<br />3rd<br />Display<br />Referral<br />Brand B<br />Brand C<br />Source: Nielsen NetView – Average of three brands, excluding direct visits without any prior exposure to activity<br />
  90. 90. Average customer conversion journey across all three brands<br />3.1<br />0.2<br />0.7<br />1.0<br />Brand A, B <br />and C average<br />+<br />+<br />+<br />=<br />Organic<br />Click<br />Sponsored<br />Click<br />Display<br />Emails<br />Quote/Purchase<br />(over 7.8 days)<br />Brand A<br />Brand B<br />Brand C<br />Source: Nielsen NetView, period from first event to first Quote / Purchase<br />NB: excludes journey’s that began with an organic click through<br />
  91. 91. Results – the impact of online activity on users<br />
  92. 92. Exposure to different campaign elements – visitors<br />Source: Nielsen NetView<br />
  93. 93. Working together<br />Users are more likely to make a purchase if they use Display AND Paid for Search<br />
  94. 94. Purchasers use search in conjunction with display<br />Purchasers<br />Visitors<br />29% also used Sponsored Search<br />22% also used Sponsored Search<br />Brand A<br />Brand A<br />+ 7%<br />Display Only<br />Display Only<br />35% also used Sponsored Search<br />16% also used Sponsored Search<br />Brand B<br />Brand B<br />+ 19%<br />Display Only<br />Display Only<br />35% also used Sponsored Search<br />26% also used Sponsored Search<br />Brand C<br />Brand C<br />+ 9%<br />Display Only<br />Display Only<br />Purchasers<br />Visitors<br />Source: Nielsen NetView<br />
  95. 95. Relationship between display exposures and number of visits<br />Site Visits per Exposed Person<br />Brand A<br />Brand B<br />Brand C<br />Number of Site Visits<br />Number of Display Exposures<br />Source: Nielsen NetView<br />
  96. 96. Results – the latency of online display advertising<br />
  97. 97. Display advertising – how many people visit after exposure?<br />Brand C<br />Brand A<br />Brand B<br />6.7%<br />6.6%<br />3.4%<br />of those exposed to the display campaign went on to visit Brand A’s site post exposure<br />of those exposed to the display campaign went on to visit Brand B’s site post exposure<br />of those exposed to the display campaign went on to visit Brand C’s site post exposure<br />Source: Nielsen NetView, Average Display CTR = 0.18%, Source AdTech 2009<br />
  98. 98. Brand A<br />40% of the people who were exposed to the display campaign AND visited the site within a week of exposure did not see or do anything else online<br />
  99. 99. Display advertising – how long does it take exposed people to visit?<br />Brand A<br />Have not been exposed/ to conducted any other activity<br />40%<br />Brand C<br />46%<br />Have not been exposed/ to conducted any other activity<br />5 Seconds <br />Less than a week<br />Same session<br />Brand B<br />12%<br />Have not been exposed/ to conducted any other activity<br />5 Seconds <br />Less than a week<br />Same session<br />Source: Nielsen NetView<br />
  100. 100. summary<br />
  101. 101. Summary<br />£<br />Online activity is working - Individuals who make purchases on websites are more likely to have been exposed to online advertising<br />The customer conversion journey is not a simple linear path– users come into contact with multiple campaign elements on multiple occasions – up to 6 display ads, 1 organic click thru, 2 sponsored click thrus and 1 email over a period of up to 13 days to make their 1st purchase<br />Different online elements work together – they play different roles at different stages of the journey – it’s not only the last step or click in the journey that matters<br />Source: Nielsen NetView<br />
  102. 102. Summary<br />Click thru metrics may not be an adequate way of assessing the impact of display advertising– up to 6.7% of users exposed to display advertising will visit the advertisers website within one or two months – approximately 40 times the average click thru rate of 0.18%<br />Display advertising performs better than is widely perceived – display advertising has a positive latent effect – up to 46% of people that visit a web site a week after being exposed to a display advertisement have not been exposed to any other online elements<br />www<br />