Iab mobile landscape


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  • 28% growth in mobile internet users in 2008
  • 107 minutes are spent online (UKOM Feb)32 minutes on mobile (Comscore MMM) (Understimate as doesnt include mobile wifi usage)139 minutes spent on the internet per day – 23% are spent on a mobile Yet mobile spend is only 1% of online
  • The three brands were measured over slightly different time periods and used slightly different combinations of online activity
  • The weight of each brand’s online activity also varied. The research did not take any offline activity into account, however we were able to benchmark the different levels of offline activity that the brands were engaged in during the fieldwork period at a top line level through Nielsen’s NMR product.
  • The percentage of visitors that went on to obtain a quote on the three sites varied from 19% to 30%, with an average figure of 25%. An average of 3% of those visiting the three brands’ sites made a purchase. It's worth noting that some visitors would have gone on to make a purchase and become customers after the fieldwork period
  • Those visitors making purchases or obtaining quotes were more likely to have been exposed to online activity than those users who just visited the sites. In one case 69% of visitors to the site had been exposed while 78% of those making a purchase of obtaining a quote were exposed. This clearly demonstrates that exposure to online activity makes users more likely to engage meaningfully with the brand's website
  • The example user journeys illustrate the many different factors that influence a user's journey, search terms are masked to preserve anonymity of brands, search terms in bold are click thrus from sponsored searches, those in italics are from natural searches
  • This shows the top three most likely first and last steps on the customer conversion journey, display advertising is more likely to be a driver at the start of the journey – driving initial brand awareness – than at the end of the journey, where customers are more likely to visit via search (sponsored and organic).
  • Average user journeys show the average length of time it took for a user to make a purchase or obtain a quote from their first exposure and the average number of exposures to each element within that period. The highest number of display exposures was 8.6, emails 2.0, organic search click thrus 2.7 and sponsored searches 2.4. Journey times varied from 1.3 days to 2.4 days.
  • This shows the percentage of visitors to each brand’s site that has been exposed to different campaign elements. Brand B’s audience were most likely to have been exposed to display advertising or made an organic click thru. Roughly one in four visitors to each brands’ website clicked thru from a referring site (including affiliates).
  • This chart plots the relationship between the number of display exposures and visits to the site over the fieldwork period. This can be useful for frequency capping. Brand A and Brand B's visits peak once the users have been exposed to 10 or more display ads, while brand C's visits peak when users are exposed to 4 or 5 display ads.
  • The percentage of visitors to each of the three sites that were exposed to the display campaigns varied from 3.4% to 6.7%. This means that up to 6.7% of those that saw the online display campaign visited the site at some stage during the fieldwork period. According to AdTech 2009 the average display click thru rate is 0.18% - this research suggests that numbers visiting due to display exposure may be higher than the traditional click thru metric suggests.
  • This shows the positive latent affect of online display advertising and the time lag between people being exposed to display advertising and visiting the sites of the three brands. Of those visitors to Brand A's site who were exposed to display advertising 2% visited within 5 seconds of seeing the display ad (we equate this to a click thru), 24% visited during the same session and 80% visited within the first week of seeing the display ad (the remaining 20% of people visiting who had seen online display advertising visited at some stage after one week). Of the 80% that visited within a week of exposure 40% had not been exposed any other online campaign element - this suggests that online display advertising is driving more visits than the traditional click thru rate metrics suggests. These 'solus display exposure’ visitors may have seen offline marketing, but that was beyond the scope of this project, but we can definitely say that they saw a display ad, had no other online interaction and then visited a week later.
  • 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 />www.iabuk.net<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 />