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Mobile Advertising 
Trends Report 2014 
By FunMobility 
Mobile Advertising. Simplified.
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 2014, 
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. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 2
Overview 
1. Programmatic Buying & Real-Time Bidding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
4 
5 
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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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
10 
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15 
16 
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
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Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 3
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.
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. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 5
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 
Streamlining Targeting 
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.” 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 6
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. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 7
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 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 8
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 2014. 
Businesses Insider projects even faster growth, as much as 56%, 
year-over year. 
“In 2014, 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 2014 (855) 849-4900 funmobility.com 9
2 Mobile Display Ad Formats: 
New & Improved Repeatedly, 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.
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. 
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. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 11
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 2014, 
going from from $4 billion to $6 
billion. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 12
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 2014 (855) 849-4900 funmobility.com 13
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. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 14
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. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 15
IAB Mobile Rising Stars—New Standards Leveraging Mobile Functionality 
Mobile Display Ad Formats: New & Improved 
In 2013, 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. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 16
Who’s Buying? 
3 Breakdown by Industry The mobile advertising industry has spent the past several 
years growing at an explosive rate (reaching triple digits, 
annually). eMarketer estimates that, in 2014, the United States 
alone will buy $17.73 billion worth of mobile ads. But where, 
exactly, is all this money coming from?
$4,090 Retail 
$370 Health & 
Pharmaceuticals 
$2,200 Finance 
$1,850 Automotive 
$1,540 Media & 
Entertainment 
$1,680 Telecom 
$1,140 Technology 
$1,250 Travel 
$1,260 CPG 
$770 Other 
2014 Projected US Mobile Ad Spend 
($ Millions) 
Total: $17.73 Billion
Retail—Ground Zero of the Cash-plosion 
Who’s Buying? Breakdown by Industry 
What Makes Up Retail? 
Projected Spend: 
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. 
Primary Goal: 
Driving traffic—both on the web and to brick and 
mortar locations. 
Advertisers Should: 
Take advantage of mobile’s hyper-local targeting 
capabilities and integrate a store-finder feature in all 
mobile campaigns. 
• 25.3% of 2014 U.S. mobile ad spend 
• $$44,909 M0 imlliilolionn 
Clothing & 
Apparel 
Home & 
Garden 
Other 
Big Box Stores 
33.3% 
28.6% 
20.2% 
20% 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 19
Projected Spend: 
Finance—CTR Soars on Mobile 
Who’s Buying? Breakdown by Industry 
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). 
Primary Goal: 
Various performance-based activities (i.e. 
registrations). 
Advertisers Should: 
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. 
• 12% of 2014 U.S. mobile ad spend 
• $2,200 million 
Average CTR, Finance Industry 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 20
Automotive—Driving Brand Value with Mobile Rich Media 
Who’s Buying? Breakdown by Industry 
Projected Spend: 
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. 
Primary Goal: 
Awareness 
Advertisers Should: 
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 2014 U.S. mobile ad spend 
• $1,850 million 
The automotive 
industry sees a bigger 
boost than any other 
industry when using 
rich media ads. 
4.5x 
CTR 
Rich Media Ads Static Ads 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 21
Telecom—Building 1 to 1 Consumer Relationships 
Who’s Buying? Breakdown by Industry 
Projected Spend: 
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 2014.” 
- Evan Conway, V.P. of Monetization and 
Strategy, Pinsight Media+ 
Primary Goal: 
Data capture: direct response 
Advertisers Should: 
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 2014 U.S. mobile ad spend 
• $1,680 million 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 22
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. 
Primary Goal: 
Brand Awareness 
Mobile Advertising Trends Report 2014 
Projected Spend: 
Advertisers Should: 
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 2014 U.S. mobile ad spend 
• $126 million 
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(855) 849-4900 funmobility.com 23
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. 
Primary Goal: 
Bookings 
Mobile Advertising Trends Report 2014 
Projected Spend: 
Advertisers Should: 
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 2014 U.S. mobile ad spend 
• $1,250 million 
(855) 849-4900 funmobility.com 24
Technology—Fierce Competition Amongst Manufacturers 
Who’s Buying? Breakdown by Industry 
Projected Spend: 
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. 
Primary Goal: 
Awareness 
Advertisers Should: 
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. 
Mobile Advertising Trends Report 2014 
• 7.1% of 2014 U.S. mobile ad spend 
• $1,140 million 
(855) 849-4900 funmobility.com 25
Media & Entertainment—Leveraging Mobile Video Ads to Tell Their Story 
Who’s Buying? Breakdown by Industry 
Projected Spend: 
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. 
Primary Goal: 
Awareness: New Product Launch 
Advertisers Should: 
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 2014 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. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 26
Health & Pharmaceuticals—Lagging Behind 
Who’s Buying? Breakdown by Industry 
Projected Spend: 
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 
2014 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. 
Primary Goal: 
Awareness: Product Information 
Advertisers Should: 
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 2014 U.S. mobile ad spend 
•$370 million 
“We’re still 
misaligned with 
where people 
are needing our 
information… 
We’re drastically 
overspending on 
print and TV, and 
underutilizing 
the mediums 
where people are 
looking and paying 
attention.” 
- A.J. Triano inVentiv 
Health’s Palio+Ignite 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 27
Where’s the Money? 
Mobile Display Ads vs. Total 
Digital Ad Spend 4
2014 US Digital Ad Spend 
Mobile Display Ads vs. Total Digital Ad Spend 
Total Non-Mobile Digital Ad Spend 
2014 US Digital Ad Spend 
0 10 20 30 40 50 60 
Total Digital Ad Spend 
Mobile Ad Spend 
Mobile Search Ads 
Mobile Display Ads 
Mobile Display Ads—Google 
Mobile Display Ads—Millennial Media 
Mobile Display Ads—Apple 
All Other Mobile Display Ads 
($ Billions) 
Major Stakeholders: 
According to Business 
Insider, in 2013 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 in 
2014 is $2.4 billion—less 
than 5% of US digital 
advertising dollars. 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 29
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: 
“2014 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/2014/04/is-online-pharma-dtc-ad-spend.html 
Millennial Media: “2013 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 2014” 
http://www.shutterstock.com/multiple_users.mhtml 
Opera MediaWorks: “The State of Mobile Advertising Q2 2013” 
http://www.operamediaworks.com/sma_q2_2013.html 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 30
References(Continued) 
Smaato: “Q1 2014 — 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: “2013 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 
Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 31

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Mobile Advertising Trends Report Fun Mobility 2014

  • 1. Mobile Advertising Trends Report 2014 By FunMobility Mobile Advertising. Simplified.
  • 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 2014, 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. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 2
  • 3. Overview 1. Programmatic Buying & Real-Time Bidding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 6 7 8 9 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 12 13 15 16 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 19 20 21 22 23 24 25 26 27 28 30 Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 3
  • 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. 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. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 5
  • 6. 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 Streamlining Targeting 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.” Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 6
  • 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. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 7
  • 8. 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 Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 8
  • 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 2014. Businesses Insider projects even faster growth, as much as 56%, year-over year. “In 2014, 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 2014 (855) 849-4900 funmobility.com 9
  • 10. 2 Mobile Display Ad Formats: New & Improved Repeatedly, 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. 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. 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. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 11
  • 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 2014, going from from $4 billion to $6 billion. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 12
  • 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 2014 (855) 849-4900 funmobility.com 13
  • 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. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 14
  • 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. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 15
  • 16. IAB Mobile Rising Stars—New Standards Leveraging Mobile Functionality Mobile Display Ad Formats: New & Improved In 2013, 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. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 16
  • 17. Who’s Buying? 3 Breakdown by Industry The mobile advertising industry has spent the past several years growing at an explosive rate (reaching triple digits, annually). eMarketer estimates that, in 2014, the United States alone will buy $17.73 billion worth of mobile ads. But where, exactly, is all this money coming from?
  • 18. $4,090 Retail $370 Health & Pharmaceuticals $2,200 Finance $1,850 Automotive $1,540 Media & Entertainment $1,680 Telecom $1,140 Technology $1,250 Travel $1,260 CPG $770 Other 2014 Projected US Mobile Ad Spend ($ Millions) Total: $17.73 Billion
  • 19. Retail—Ground Zero of the Cash-plosion Who’s Buying? Breakdown by Industry What Makes Up Retail? Projected Spend: 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. Primary Goal: Driving traffic—both on the web and to brick and mortar locations. Advertisers Should: Take advantage of mobile’s hyper-local targeting capabilities and integrate a store-finder feature in all mobile campaigns. • 25.3% of 2014 U.S. mobile ad spend • $$44,909 M0 imlliilolionn Clothing & Apparel Home & Garden Other Big Box Stores 33.3% 28.6% 20.2% 20% Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 19
  • 20. Projected Spend: Finance—CTR Soars on Mobile Who’s Buying? Breakdown by Industry 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). Primary Goal: Various performance-based activities (i.e. registrations). Advertisers Should: 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. • 12% of 2014 U.S. mobile ad spend • $2,200 million Average CTR, Finance Industry Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 20
  • 21. Automotive—Driving Brand Value with Mobile Rich Media Who’s Buying? Breakdown by Industry Projected Spend: 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. Primary Goal: Awareness Advertisers Should: 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 2014 U.S. mobile ad spend • $1,850 million The automotive industry sees a bigger boost than any other industry when using rich media ads. 4.5x CTR Rich Media Ads Static Ads Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 21
  • 22. Telecom—Building 1 to 1 Consumer Relationships Who’s Buying? Breakdown by Industry Projected Spend: 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 2014.” - Evan Conway, V.P. of Monetization and Strategy, Pinsight Media+ Primary Goal: Data capture: direct response Advertisers Should: 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 2014 U.S. mobile ad spend • $1,680 million Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 22
  • 23. 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. Primary Goal: Brand Awareness Mobile Advertising Trends Report 2014 Projected Spend: Advertisers Should: 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 2014 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. (855) 849-4900 funmobility.com 23
  • 24. 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. Primary Goal: Bookings Mobile Advertising Trends Report 2014 Projected Spend: Advertisers Should: 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 2014 U.S. mobile ad spend • $1,250 million (855) 849-4900 funmobility.com 24
  • 25. Technology—Fierce Competition Amongst Manufacturers Who’s Buying? Breakdown by Industry Projected Spend: 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. Primary Goal: Awareness Advertisers Should: 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. Mobile Advertising Trends Report 2014 • 7.1% of 2014 U.S. mobile ad spend • $1,140 million (855) 849-4900 funmobility.com 25
  • 26. Media & Entertainment—Leveraging Mobile Video Ads to Tell Their Story Who’s Buying? Breakdown by Industry Projected Spend: 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. Primary Goal: Awareness: New Product Launch Advertisers Should: 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 2014 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. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 26
  • 27. Health & Pharmaceuticals—Lagging Behind Who’s Buying? Breakdown by Industry Projected Spend: 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 2014 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. Primary Goal: Awareness: Product Information Advertisers Should: 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 2014 U.S. mobile ad spend •$370 million “We’re still misaligned with where people are needing our information… We’re drastically overspending on print and TV, and underutilizing the mediums where people are looking and paying attention.” - A.J. Triano inVentiv Health’s Palio+Ignite Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 27
  • 28. Where’s the Money? Mobile Display Ads vs. Total Digital Ad Spend 4
  • 29. 2014 US Digital Ad Spend Mobile Display Ads vs. Total Digital Ad Spend Total Non-Mobile Digital Ad Spend 2014 US Digital Ad Spend 0 10 20 30 40 50 60 Total Digital Ad Spend Mobile Ad Spend Mobile Search Ads Mobile Display Ads Mobile Display Ads—Google Mobile Display Ads—Millennial Media Mobile Display Ads—Apple All Other Mobile Display Ads ($ Billions) Major Stakeholders: According to Business Insider, in 2013 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 in 2014 is $2.4 billion—less than 5% of US digital advertising dollars. Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 29
  • 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: “2014 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/2014/04/is-online-pharma-dtc-ad-spend.html Millennial Media: “2013 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 2014” http://www.shutterstock.com/multiple_users.mhtml Opera MediaWorks: “The State of Mobile Advertising Q2 2013” http://www.operamediaworks.com/sma_q2_2013.html Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 30
  • 31. References(Continued) Smaato: “Q1 2014 — 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: “2013 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 Mobile Advertising Trends Report 2014 (855) 849-4900 funmobility.com 31