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©2014 eMarketer Inc.
October 26, 2014
Mobile Bootcamp:
Implications for Marketers
David Hallerman
Principal Analyst

It’s not just mobile devices, it’s everything:
“The Fragmentation of Attention”

What is mobile, really?

Today’s overview – the basic story
þ Money
þ People

The US Mobile Ad Market

$58.78
19.0%
Total mobile
ad spending in
the US will
soar from
$19 billion this
year to nearly
$59 billion in
2018
US Mobile Ad Spending, 2013-2018
billions and % change
120.0%
$10.67
2013
78.0%
$18.99
2014
$28.48
50.0%
2015
$40.16
41.0%
2016
$49.40
23.0%
2017
2018
Mobile ad spending % change
Note: includes classified, display (banners and other, rich media and video),
email, lead generation, messaging-based and search advertising; ad
spending on tablets is included
Source: eMarketer, Sep 2014
179426 www.eMarketer.com

Reality Check #1:
Mobile’s share of total digital ad spending
Source: eMarketer, October 2014
2014
37%
2018
71%

Reality Check #2:
Mobile’s share of total media ad spending
2014
11%
2018
27%

Mobile search
will double
from 38% of
all digital
search ad
spending this
year to nearly
77% in 2018
US Mobile Search Ad Spending, 2013-2018
billions and % of digital search ad spending*
24.7%
$4.92
2013
38.1%
$8.72
2014
50.1%
$12.85
2015
$17.87
62.9%
2016
$21.73
70.5%
2017
$25.69
76.7%
2018
Mobile search ad spending % of digital search ad spending*
Note: includes advertising on search engines, search applications and
carrier portals; ad spending on tablets is included; *includes contextual
text links, paid inclusion, paid listings (paid search) and SEO

And mobile
display ad
spending will
triple from
less than $10
billion this
year to over
$30 billion in
2018
US Mobile Internet Display Ad Spending, 2013-2018
billions and % of digital display ad spending
30.0%
$5.31
2013
43.1%
$9.65
2014
54.2%
$14.67
2015
$20.80
64.2%
2016
$25.69
68.8%
2017
$30.51
71.5%
2018
Mobile internet display ad spending
% of digital display ad spending
Note: includes banners and ads such as Facebook's News Feed Ads and
Twitter's Promoted Tweets, rich media, sponsorships and video (including
video on WAP sites, mobile HTML sites and embedded
in-application/in-game advertising); excludes SMS, MMS and P2P
messaging-based advertising; ad spending on tablets is included

Reality Check #3:
Mobile video’s share of total digital video
2014
26%
2018
48%

Reality Check #4:
Mobile video’s share of total digital ad spending
2014
3%
2018
7%

Programmatic will become extremely essential
for mobile display advertising
Programmatic’s soaring
share of mobile display
means its spend will rise
from $1.33 billion in 2013
to $14.15 billion in 2016
§ 2013’s share: 25%
§ 2014’s share: 46%
§ 2015’s share: 57%
§ 2016’s share: 68%

Mobile Audiences:
Size, Activities & Attitudes

In 2014, share of total US population that uses
the main digital screens
Internet
79%
Smartphone
52%
Tablet
46%
Both Phone-Tablet
29%

By 2018, share of total US population that uses
the main digital screens
Internet
83%
Smartphone
67%
Tablet
53%
Both Phone-Tablet
43%

In the mobile space, what do people care about?
Actions speak, so most-used
apps in June 2014:
§ Facebook: 74%
§ Google Play: 52%
§ YouTube: 52%
§ Google Search: 48%
§ Pandora: 46%
§ Google Maps: 45%
§ Gmail: 41%
Source: comScore Mobile Metrix, August 2014

Mobile devices are major shopping accessories
for a large share of most demographics
US Mobile Device Users Who Use Their Device While
Shopping In-Store, by Demographic, June 2014
% of respondents in each group
18-34
57.3%
46.4%
35-54
50.5%
55.8%
55+
25.7%
44.2%
Male Female
Note: at least frequently
Source: Burst Media, "Online Insights: Mobile Devices and Marketing," Aug
14, 2014

For beacons
to take off,
they will need
to be relevant
and deliver
real value to
consumers
“There’s a very strong interest in
in-store awarenes—I can’t think
of a single client that isn’t very
interested in the potential
with beacons. Anything that
will make shopping easier and
more frictionless for people is
going to win.”
—Rachel Pasqua, mobile practice lead, MEC
Global

Despite their promise, challenges abound for
beacons, namely consumers must…
§ …tune in by making sure that they’ve
turned on Bluetooth
§ …sign in by downloading and then
using specific brand and retailer apps
§ …opt in by giving permission to receive
messages on their smartphones

57.0
27.0%
17.0%
More and
more
consumers
will adopt
some kind of
smartphone
wallet, rising
to 27% of
smartphone
users by 2018
US Proximity Mobile Payment Users, 2013-2018
millions, % change and % of smartphone users
59.0%
11.1
8.0%
2013
43.1%
15.9
10.0%
2014
41.7%
22.6
12.7%
2015
36.2
60.5%
19.0%
2016
48.7
34.5%
24.0%
2017
2018
Proximity mobile payment users
% change % of smartphone users
Note: ages 14+; includes point-of-sale transactions made by using mobile
devices as a payment method; excludes transactions made via tablet

Wearables
could be
NEXT BIG
THING, but
need to go
beyond niche
value
“There are wearables built
around security. There are
wearables built around
monitoring your baby. But until
we can find something that hits
mass-market appeal, it’s
going to be tough to get mass-market
adoption.”
—Jeanniey Mullen, founder, Wearable
Collective and YellowBean LLC

Many people
who bought a
fitness tracker
stopped using
the device
after 6 to 12
months
US Smart Watch/Fitness Tracker Owners Who Still
Use the Device, by Length of Ownership, Sep 2013 &
June 2014
% of respondents
Purchased within the past 3 months
83%
88%
Purchased within the past 3-6 months
69%
77%
Purchased within the past 6-12 months
56%
66%
Purchased more than 12 months ago
43%
65%
Still wearing (Sep 2013) Still wearing (June 2014)
Note: ages 18+
Source: Endeavour Partners, "Inside Wearables (Part 2)," July 2014

Mobile video
has huge
potential —
but audiences
dislike mobile
video ads and
yet also say
rewards are
acceptable…
hmmm?
Acceptability of Marketing Within Free Mobile Apps
According to US Smartphone App Users, by Marketing
Tactic, Jan 2014
% of respondents
Rewards
Small banner ad
2%
42% 42% 10% 5%
3%
27% 49% 12% 10%
Full-screen image ads
4% 14% 11% 34% 38%
Full-screen video ads
11% 10% 26% 50%
3%
Very acceptable
Somewhat acceptable
Neither acceptable nor unacceptable
Somewhat unacceptable
Very unacceptable
Note: n=1,283; numbers may not add up to 100% due to rounding
Source: IPG Media Lab and Kiip, "Moments That Matter," June 16, 2014

Smartphones
are very
personal,
which
highlights
how
marketers
need to offer
consumers
real value
“If the shopper has opted in for
an offer, they expect to receive
a super-targeted, relevant ad.
So the creative needs to be
timely, it needs to be relevant. It
needs to offer some
immediate value to the user
or enhance what they are doing
at that moment.”
—Bill Clifford, chief revenue officer, SessionM

Coupons, rewards, or some kind of real value is
still the best way to woo new customers
Likelihood of Trying a New Brand vs. Switching
Brands After Receiving In-Store Mobile Coupons*
According to US Digital Coupon Users, June 2014
% of respondents
New brand
47% 28% 25%
Switch brands
36% 37% 28%
Very/somewhat likely Maybe Probably not/not at all likely
Note: n=500 who used a digital coupon in the past 3 months; via
smartphone; numbers may not add up to 100% due to rounding; *includes
coupons, offers and online promotions
Source: Forrester Consulting, "The State of Digital Coupons: How Digital
Coupons Are Adapting to Mobile and Omnichannel" commissioned by
RetailMeNot.com,

Opening Thoughts

Experiments
are the way
to go – even
as mobile is
established,
the medium is
still very new
“It’s easy for people to look at
new platforms and say to
themselves, ‘I’m not sure I want
to participate.’ But there’s an
enormous amount of benefit to
get from experimentation.
There’s a lot to learn in the
early stages.”
—Kira Wampler, CMO, Trulia

How many
companies
still treat
mobile as a
separate
entity?
Why?
“Digital marketing is not a
department.”
“It has officially woven its way
into the fabric of all your
marketing.”
—Cory Treffiletti, vice president of strategy,
Oracle Marketing Cloud

We have
gathered here
today to join
together in
secular
matrimony…
“I have also seen a lot of what I
call ‘digital myopia’ out
there, the narrow viewpoint held
by some sectors of the ad tech
industry that digital is the center
of the universe.”
—David Cooperstein, CMO, Simulmedia

eMarketer publishes around 200 reports each
year. Here are eight recent ones of interest:
• 2014 Programmatic Advertising Forecast
• US Mobile Payments 2014
• Wearables: 10 Insights
• How Beacons Are Changing Mobile Marketing
• Tablet and Smartphone Video Viewing
• Maps and Map Marketing
• Mobile Commerce Deep Dive
• Brands Go Mobile in the Grocery Aisle
For more info, contact:
Lisa Harvey
lharvey@emarketer.com
(646) 863-8860

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