2011 State of Mobile Advertising


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Classic Guide, State of Mobile Advertising 2011

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2011 State of Mobile Advertising

  1. 1. CONTENTSPAGE3 INTRODUCTION 21 Challenges with mobile advertising and Mobile advertising on a tear fixes recommended By Giselle Tsirulnik 22 Best-practice tips5 What is the state of mobile advertising?8 Primary drivers11 What’s working and what’s not13 Devices and ad formats that generate the best responses14 Mobile creative messaging executions and campaigns that stand out18 Measuring mobile advertising19 Making media buys for mobile advertising20 Integration with other channels and role as traffic driver Mickey Alam Khan Chantal Tode 401 Broadway, Suite 1408 Jodie Solomon Editor in Chief New York, NY 10013 Associate Editor Director, Ad Sales mickey@ Tel: 212-334-6305 chantal ads@ Fax: 212-334-6339 napean.com mobilemarketer.com mobilemarketer.com Email: news@mobilemarketer.com Website: www.MobileMarketer.com For newsletter subscriptions: http://www.mobilemarketer.com/ Giselle Tsirulnik Rimma Kats newsletter.php Senior Editor Staff Reporter giselle@ rimma@ For advertising: mobilemarketer.com mobilemarketer.com http://www.mobilemarketer.com/cms/ general/1.html For reprints: reprints@mobilemarketer.comMobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer Dai-ly newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily site and newsletter, MobileNewsLeader.com, Classic Guides,webinars, the Mobile Marketing Summit and the Mcommerce Summit and awards. ©2011 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.PAGE 2 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  2. 2. INTRODUCTIONMobile advertising on a tearW ith budgets in the hundreds of thousands and now in the millions, mobile advertis-ing is proving to be the fastest-growing ad ve- marketing purposes? This document discusses the primary drivers of mobilehicle across all channels – that much is obvious in advertising, which types of ad formats are most popu-our first State of Mobile Advertising Classic Guide. lar and resonate best and those that do not, the de- vices that see the most responses, creative executionsBut what is the state of mobile advertising, even as more that stand out, performance of ads on mobile Web sitesmarketers embrace the channel for branding and direct and in applications, and how standards of measurement have evolved. Also discussed are which categories spend the most on mobile advertising, average spends and estimates for the category, tips on wise media buys, current and future challenges, and integration with other marketing channels. Select case-study snapshots, course correc- tions and best-practice tips will round out this effort to help inform and educate marketers on mobile advertising and how it is moving the needle for branding and direct marketing. Thank-you to Mobile Marketer editor in chief Mickey Alam Khan for conceiving the State of Mobile Advertising Classic Guide and for the outline. Many thanks also to staff reporter Rimma Kats for her excellent art direction. This work relies on the reporting, insights and analysis generated by Mobile Marketer as well as help from marketing executives quoted and mentioned in the State of Mobile Advertising 2011 – thank-you to all. We hope you have as much fun reading the work as it was writing it. As the evidence shows – and there is no other polite way of saying this – mobile advertising is in rude health. Giselle Tsirulnik Senior Editor Mobile Marketer and Mobile Commerce DailyPAGE 3 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  3. 3. What is the state of mobile advertising?T he proliferation of smartphone devices and tablets in the plans for marketers to stay relevant. is shifting the way that marketers look at mobile advertising, making the channel more important to U.S. mobile advertising spend was estimated at $743.1the multichannel strategy. million in 2010, according to eMarketer. This number is expected to reach $2.5 billion by 2014, the New York-As of December 2010, 302.9 million Americans reported based digital intelligence firm predicts.that they own a mobile device, making the U.S. wirelesspenetration 96 percent, according to CTIA – The Wireless Mobile advertising includes messaging, display, searchAssociation. What is more is that 26.6 percent of U.S. and video ad formats. According to Microsoft Advertis-households are mobile-only, meaning that they do not ing, these ad formats are being used to:have a landline and instead depend on their mobile de-vices to make and receive all calls. Of these mobile sub- • Build brand awarenessscribers, approximately 63.2 million own a smartphone, • Increase sales both online and in-storeaccording to comScore. About 35 percent of smartphone • Extend special offers and couponsusers access the mobile Internet from their device, il- • Enhance multichannel campaign effortslustrating the reach that marketers can achieve with a • Increase customer acquisition, engagement and loyaltytargeted mobile advertising campaign. • Simulate word-of-mouth and social media engagementsGoogle’s Android and Apple’s iPhone have the high- Messagingest smartphone market share in the United States Messaging – SMS or MMS – will make up 24 percentand the users of these devices not only browse the of total U.S. ad spend in 2014, down from 44 percentmobile Web, but they are also avid application us- in 2010, according to eMarketer. SMS advertising con-ers. With more than 350,000 mobile apps in the Apple sists of placing a marketing message into a text messageApp Store – and another 65,000 iPad apps – and up- that consumers have opted in to receive. For example,wards of 150,000 in Android Market, the apps market consumers who have opted-in for SMS alerts from MTVis exploding. could potentially receive an alert regarding news on the release of Katy Perry’s new album.The market for mobile apps will continue to accelerateas the number of downloads is expected to increase from A brand such as Target could sponsor this alert, with10.9 billion worldwide in 2010 to 76.9 billion in 2014, ac- a marketing message at the bottom asking consum-cording to an International Data Corp. forecast. World- ers to click on a link to be routed to the Target mobilewide mobile app revenues will experience similar growth, commerce-enabled site where the new album could besurpassing $35 billion in 2014. Application developers purchased. Additionally, Target could also ask consumershave churned out more than 500,000 mobile apps in just to opt-in to its SMS database to receive deals and of-over three years, and the good news is that those apps fers to their mobile device from the retailer. This, too, isare starting to generate more revenue. SMS advertising.The consumer adoption of mobile apps and the increas- Given the level of engagement that SMS provides, itsing mobile Web traffic have given mobile advertising a biggest mobile potential is to drive consumers to theseat at the table. Fortune 500 and other top brands are mobile Web, in-store, online or to download a mobileusing mobile ads for branding and as a direct response app. Why SMS? The answer is simple. A study by ABImedium, finally understanding that mobile needs to be Research finds that consumers worldwide will send morePAGE 4 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  4. 4. than 7 trillion SMS messages in 2011. will reach $334.5 million in total ad spend by the end of 2011, up from $202.5 million in 2010 and $91.4 millionThis massive number indicates that consumers are very in 2009, according to eMarketer. By 2014, mobile displaycomfortable using SMS to communicate with one an- ad spend will reach $887.6 million, the firm predicts.other and it is a huge opportunity for marketers. The factthat consumers are increasingly comfortable communi- The monthly metrics reports that Millennial Media pub-cating via SMS means that brands could potentially use lishes indicate that iOS and Android devices are seeingthe channel to speak with them. the best results when it comes to mobile advertising re- sponse rates, with the majority of ad requests made onBrands are already building databases of mobile users these two platforms. Research In Motion follows closelyand sending them news and information updates, as well behind, per Millennial. When it comes to mobile Internetas coupons. With the expected growth in SMS for 2011, display ads, Google is tied at first place with Apple, withmore brands will likely jump on the SMS advertising 19 percent market share, and independent ad networkbandwagon. Not everyone has a smartphone, and com- Millennial Media comes in second place with about 15municating with those that do not via SMS is the best percent, according to IDC.way to reach a wide audience. Borrell Associates forecasts that spending for ads deliv-Display ered via mobile apps in the U.S. will explode from $305Display mobile advertising spend – rich media and static million in 2010 to $685 million in 2011 and more thanbanners that run in mobile apps and on the mobile Web – $8 billion by 2015, with $1.2 billion of that coming fromPAGE 5 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  5. 5. local advertisers. • Click-to-call and click-to-text – The user clicks to initiate a call or text message to communicate withA click on a mobile banner ad on a mobile Web site or the brand.within a mobile app can create various interactions be-tween a brand and consumers. Some of the most com- • Click-to-rich media – Most rich media ad units can bemon types of interactions are: customized to the specific advertiser’s needs. But some of the most common executions are click-to-video, click-• Click-to-Web – This is when the user click on a ban- to-gallery and click-to-download.ner and is brought to a dedicated landing page thatgoes into more depth about the initial offer that the According to mobile rich media platform Medialets, ad-banner mentioned. vertisers and agencies are mostly asking for full-screen interstitial ad units nowadays because they provide• App-within-an-app – This is when the user clicks on more room to do many of the interesting things thata banner ad within an application and is brought to a devices can run and, of course, because they performWeb-like experience, without actually having to leave really well.the app. This is a great experience because the user sim-ply returns to the application after interaction with the Medialets’ mobile rich media benchmarks report foundad unit is complete. that interstitials generated engagement rates, on av- erage, of 10 percent, with iPad interstitials performing above that. These are the kind of performance metrics that are drawing advertisers and agencies to mobile display. Search Mobile search advertising is the paid listings that a con- sumer sees after entering a mobile search query. These paid listings show up because an advertis- er is paying money to be ranked that highly for those phrases. When a searcher clicks on one of those list- ings, the advertiser is charged the cost-per-click price for that ranking, so hopefully the searcher will convert into a sale for that advertiser, per TopRank Online Marketing. Mobile search works the same way. Google currently dominates mobile search advertising, with an ad revenue market share of 91.4 percent. Plenty of mobile Internet traffic comes from people looking for stuff on the go. IDC expects mobile search to grow. EMarketer forecasts confirm this growth. Mobile search advertising spend will reach $295.1 million in 2011, up from $185 million in 2010 and $83.2 million in 2009. EMarketer expects mobile advertising spend to increase to $201.3 million in 2014. Google is currently in the lead and that is why the majority of mobile search marketersPAGE 6 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  6. 6. are not looking to the smaller players such as Microsoft Videoand Yahoo because they do not have the required traffic Mobile video advertising spend– whether it be pre- orvolume for a successful search campaign, per IDC. post-roll, in-stream or in-ad unit executions – will reach $50.8 million in 2011, up from $28.3 million in 2010 andA Bing executive at CTIA Wireless 2011 revealed $12.6 million in 2009. By 2014, spend on mobile videothat 50 percent of search queries on mobile have advertising is expected to reach $201.3 million, eMar-a local intent, with users searching for restaurants, keter predicts.movies and other forms of entertainment closestto them. The launch of the iPad has really propelled the growth of mobile video advertising. Mobile video has higher viewerWhen people are on their desktop, they are in research retention than online video, with 94 percent in the firstmode. But when they are on their mobile device, they 10 seconds compared to only 81 percent on the PC In-just want to ask one thing and get an answer. They are ternet, according to Rhythm NewMedia, a mobile videonot trying to decide which big-screen TV to get – they ad network.want to find a good restaurant nearby right now. Completion rates for interactive pre-roll video ads re-Marketers are finally beginning to understand that they main high at 87 percent, exceeding online video andneed to focus their mobile search efforts to take advan- television. Additionally, iPad CTRs for pre-roll video adstage of mobile-specific capabilities such as location- are higher versus iPhone, iPod touch and Android. CTRsbased services and voice and image-recognition tech- are 79 percent higher on display ads that mention videonology. as a call to action.Google’s approach in mobile is to innovate around spe- Brands within the consumer packaged goods and enter-cial capabilities of mobile devices to make the search tainment categories are leading the way in mobile videoexperience easy, fast and useful. The company focuses on advertising adoption, per Rhythm.location-based, voice and image recognition search. The number of U.S. mobile users who watch videos onOver the past two years, Google’s mobile search traffic their devices has increased more than 40 percent year-has grown fivefold. It offers companies the following over-year in both the third and fourth quarters of 2010,mobile search tactics to gain a competitive edge: ending the year at a grand total of almost 25 million people, according to a mobile video report from Nielsen• A location-based search feature called “Near Me Now” Co. These consumers watched an average of four hoursfor iPhone and Android platforms, which lets users and 20 minutes of mobile video per month in both thebrowse through lists of nearby banks, restaurants and third and fourth quarter of 2010, which equals a 33 per-other business categories cent and 20 percent year-over-year bump in each quar- ter respectively, per Nielsen.• Google Maps Navigator, which enhances the GoogleMaps functionality by providing turn-by-turn voice guid- Growth in mobile video consumption can be attributedance and automatic rerouting to the ever-increasing adoption of media-friendly mobile devices such as tablets and smartphones. In the fourth• Google Voice search, enabled in seven languages in- quarter of 2009, a mere 23 percent of U.S. consumerscluding English, Mandarin and Spanish had smartphones. In comparison, smartphone penetra- tion grew to 31 percent by the end of 2010. Additionally,• Google Goggles, an image-recognition technology it has become much easier to find, view and share mo-that lets users take pictures of objects with their mobile bile video with the proliferation of the mobile Web andphones and generates information based on the photos app usage.PAGE 7 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  7. 7. Primary driversO verall, the advancement of network technologies, lower mobile data cost, adoption of smartphones and an increase in application and mobile Webusability are obvious drivers of mobile advertising. Mar-keters follow consumer eyeballs.The rate of global mobile Web content growth over twoyears has outpaced the growth of the desktop Internetover that same period, according to dotMobi’s MobileWeb Progress study. DotMobi’s 2008 study showed150,000 mobile-ready Web sites, while the 2010 studyshowed approximately 3.01 million sites, representingan incredible two-year growth of more than 2,000 per-cent. And that growth level significantly outpaces earlydesktop growth.Web analyst firm Netcraft found that, between 1996 and1998, the size of the desktop Web grew from 150,000sites to 1 million sites, a growth rate of 1,333 percent,compared to the mobile Web’s 2,000 percent growth inthe equivalent timeframe. With this explosive growth comfortable viewing mobile ads on their devices, with 38in mobile Web sites and the aforementioned explosion percent of almost 4,400 individuals that comScore andin mobile applications, it is no wonder that mobile ad- InMobi polled in August 2010 stating they felt mobilevertising was about 3 percent of marketers’ total online ads serve an important purpose. Another 25 percent saidadvertising budgets in 2010. IDC expects this number to that they were getting used to seeing mobile ads. Onlygrow to 5 percent in 2011. 10 percent said that they were uncomfortable seeing mo- bile ads and 12 percent said they were downright intru-There is a lot of activity on the mobile Web, and adver- sive. Males are more comfortable than females in beingtisers finally understand that it is an effective market- served and interacting with mobile ads. Users under theing channel. Additionally, the mobile phone is a personal age of 25 were most likely to find value in mobile ads.device. It enables in-your-face advertising. The ads aremore personal than on the PC. Another reason for the “Few people are able to galvanize marketers and the pub-expected growth in mobile advertising budgets in 2011 lic like Apple CEO Steve Jobs. The launch of the iPad, ais that, for marketers, it is about the results and the ef- new iPhone and the iAd advertising platform in the spacefectiveness of a channel. Mobile is starting to make a of several months arguably has been the single most ef-name for itself with ads that see grand results. Ad units fective catalyst to date for mobile advertising.” –Mobileare getting more sophisticated and ROI is increasingly Advertising and Marketing: Past the Tipping Point, eMar-being proven in the channel. IDC expects there will be keter, October 2010more mobile Internet traffic than the desktop, meaningmobile display and mobile search will outgrow their PC Apple’s iAd mobile ad network became a standard forInternet counterparts. developing and delivering ads for the iPhone ecosystem. As a majority of mobile ads were static images on theConsumer acceptance of mobile ads is also a driver, ac- iPhone, iAd interactivity ushered in a new age of mo-cording to eMarketer. Consumers are actually becoming bile advertising opportunities. The platform gave contentPAGE 8 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  8. 8. creators designing browser-based ads an additional op- which they spend the most time. These channels – mo-portunity in the mobile ad space, allowing them to create bile, social media and online –are being thrown in to theanimated, interactive ads. IAd, when first launched was marketing mix finally, and with respectable budgets.an ad experience that piqued users’ interest. As such, us-ers were more apt to click on an iAd just to check out The acquisitions of both AdMob (Google) and QuattroApple’s take on what a new generation ad should offer. Wireless (Apple) were proof that as mobile phone usageThis burst of interest alone has had a high impact on increases, growth in mobile advertising is only going tooverall mobile advertising click-though rates. accelerate. The deals resulted in developers and publish- ers getting better advertising solutions, marketers find-Just having someone such as Apple and Mr. Jobs as a ing new ways to reach consumers, and users getting bet-creative force in the space is a huge advantage for driv- ter ads and more free content.ing attention and pushing the boundaries of where it cango. He did a good job of turning five-figure budgets in The iPhone 4 and other 4G-capable phones are also driv-average ad spend to six- and seven figures. He proved ers of mobile advertising serve as the ideal canvas forthe validity of rich ad experiences. He really speaks to interactive experiences. Every new generation of mobilechief marketing officers to tap into those print and TV devices to come out of the smartphone manufacturersbudgets. At the end of the day, the mobile advertisingecosystem is in a better place because of the support ofApple and Mr. Jobs.The iAd platform opened the industry’s eyes in terms ofwhat is possible in mobile. It also served as a catalystfor more sophisticated, interactive and engaging mobileadvertising experiences. Since its launch, there has beena fundamental shift in mobile advertising. Mobile com-panies, from mobile marketing specialists such as Hip-cricket to mobile ad networks such as Millennial Media,Jumptap and Greystripe, began to enhance their offeringsin a bid to compete with giants Google and Apple. WithGoogle’s acquisition of AdMob having been completed in2010 and iAd’s launch that same year, independent play-ers both large and small began innovating and punchingabove their weight.Google’s acquisition of AdMob was validation that mo-bile advertising is real, that the results are measurableand have considerable value and that mobile should bea factor, if not a central pillar, in any brand marketingstrategy going forward.With the newfound validation of the mobile indus-try, there was an influx of major brands to the mobilebandwagon. With the explosion of mobile activity, siloedcampaigns are becoming a thing of the past. Consum-ers’ dependence on mobile has already changed themforever. They want to be spoken to via the channels inPAGE 9 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  9. 9. brings with it an exciting new set of features for devel- owning smartphones. Hence, conversations are shift-opers to implement in their apps, which, in turn, adver- ing. While there are a lot of feature phones out there,tisers could take advantage of within their ads. Google’s a high percentage of people who are interacting withAndroid and Apple’s iPhone 4 have both stretched the mobile marketing campaigns are smartphone users.limits of what the industry once thought was possible in Looking at consumers ages 25-34, about 50 percent ofmobile advertising. them have smartphones, so the reach is getting there. Text messaging still has the most reach, because bothRich media and innovative ad units have garnered the smartphones and feature phones are SMS-enabled. Butattention of consumers, making the probability for a when marketers look at the mobile Internet, apps, vid-click-through higher. In fact, research firm InsightExpress eo and social networking, the large majority of trafficfound that mobile advertising is four-to-five times more is coming from smartphone users, which is a differenteffective than online advertising, on average. That is due audience altogether.to various factors, including lack of clutter in mobile,typically one ad per page, and the mobile pages them- Consumer behavior on mobile is another driver of mobileselves typically do not have a lot of stuff going on—they advertising. For example, 82 percent of consumers havetend to be very clean. Also, the proportion of the ad on a used their mobile phones in a store, 55 percent in a doc-mobile screen is greater, so it gets more share of eyeballs. tor’s office or hospital, 17 percent during a movie at the theater, 14 percent while flying on a plane and 7 percentThe iPad and other tablet devices are also drivers of mo- during church service. Around 17 percent of mobile usersbile advertising. On the heels of Mr. Jobs’ official intro- have shown a clerk in a store a picture of a product onduction of Apple’s iPad, marketers and developers raced their mobile phone, saying in effect, “I want this please,”out the door with apps and advertising services for the which is a new shopping behavior that is surprisingly be-new tablet. The iPad gave publishers and brands new and ing driven by men. Forty-five percent of users check theircreative opportunities for creating meaningful and truly mobile devices first thing in the morning, according toengaging experiences with the consumer. What makes InsightExpress. Marketers recognize the opportunitiesthe device most attractive to marketers is its form factor with advertising to these mobile consumers.for content consumption.The form factor allows brands to maximize how they in-teract with users and provide an engaging brand expe-rience through mobile advertising. The opportunity liesin the fact that the iPad can support instant loading,HD-quality video and other interactive content such ashigh-definition display, pinch-to-zoom and 3D rotation.These features give brands the opportunity to showcasethe finer details of their products from all angles andthe highest resolutions, via an unprecedented mobileadvertising experience.“It’s easy to point to iPad as the best performing device,but the reality is that we’re seeing double-digit perfor-mance on iPhone and Android as well.” – Elena Perez,director of marketing at Medialets, New YorkAccording to InsightExpress, smartphones are thenew phone, with more than a third of mobile ownersPAGE 10 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  10. 10. What’s working and what’s notS uccess in mobile advertising depends entirely on substandard mobile experiences. the approach taken and whether it was right for Companies that are not prioritizing what is important that specific campaign’s goals. If execution is donestrategically, then all the ad formats work, whether it befor the mobile user specifically are missing the ball. Thistext, Web, video or app. means thinking of all the possible ways of making life easier for consumers who are on the go – for example,Brands and marketers need to remember to take the con- helping them find directions to a business, finding thetext in which the consumer is seeing the ad. Therefore, hours of operation and click-to-call to get in touch withrepurposed static banners and videos that are placed a customer service representative. It is a shame that sonext to unrelated mobile content will not work. These many marketers are not taking advantage of mobile-spe-units fail from a creative and media planning perspective cific functionality. The mobile device’s screen is smallerto pull the user into the ad experience. Another impor- than the PC’s and marketers need to keep that in mind.tant step is to make sure that the creative considers theuser experience of its call to action. Making consumerscomplete numerous steps for a conversion is not going towork, especially for those who are on the go.“Mobile advertising that works starts with emerging be-haviors rather than emerging technologies. There are amillion different things that a marketer can do on mo-bile. Deciding what to do is often the hardest part of theprocess. But it is much easier when you approach it withsound business logic and ask the following questions.What consumer insight are you trying to address as aproduct and as a brand? What is the message that youare trying to communicate? What are your business ob-jectives? Mobile advertising has worked when the deci-sion of what to do is based on how well it aligns with theanswers to those questions.” – Paul Gelb, vice presidentand mobile practice lead at Razorfish, New York.Failing to mobile-optimize the post-click experience isone of the most frustrating experiences for mobile us-ers. It is an ultimate failure on the part of the marketer.One would think that this is not a common dilemma.However, Google conducted a study looking into thepost-click experience for some of its largest advertiserson mobile. The company used 200 diagnostic points tomeasure each advertiser’s mobile readiness, with criteriasuch as load time, device detection and mobile optimi-zation. Google found that only about 21 percent of itslargest advertisers have a mobile-optimized Web pres-ence. That means that more than 79 percent are servingPAGE 11 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  11. 11. If all of the most rel- cal queries, whether or not the keywords entered in- evant information for clude local modifiers such as a city, state or ZIP code. the mobile customer Therefore, a consumer who searches for “Target” on her is not placed front and mobile device is expecting to get results listing the Tar- center on a mobile ad- get locations closest to her. The Kelsey Group reported vertising landing page, in 2009 that about one in three mobile searches have consider the campaign local intent. Additionally, marketers that are not using a failure. mobile-specific actions within their mobile search cam- paigns are missing the ball. A click-to-call function is Harris Interactive con- a no-brainer and click-to-map, click-to-directions and ducted a survey on other useful actions for a mobile user should be incor- behalf of Pontiflex in porated. The mobile search results must be different December 2010. The from the desktop results, tailored specifically for mobilestudy found that ROI and accountability are of utmost searchers, otherwise marketers are not getting the mostimportance to brands and agencies, and while mobile out of their campaigns.advertising has proven its effectiveness when executedproperly, click-through rate is a limited metric at best. A spray-and-pray approach to SMS, display and videoThis means that marketers need to take into account advertising is not going to work, either. Targeting is key.more than just the click. Gartner predicts mobile will be the No. 1 Internet access device by 2013. ABI Research believes that 8 percent ofForty-seven percent of mobile application users say they total ecommerce sales will come from mobile by 2014.click or tap on mobile ads more often by mistake than Also, according to comScore, nearly one-third of all mo-they do on purpose. Given that mobile advertising mod- bile users already actively engage with Web content onels typically charge advertisers for clicks, the survey find- their mobile phones, and 53 percent of smartphone usersings indicate that a large portion of mobile ad dollars routinely engage in mobile Web browsing activities.are wasted. Advertisers need to be measuring beyond theclick: time spent engaging with an ad and what consum- These consumers express intent and interest when theyers are doing on the landing page. Focusing solely on clicks visit a mobile site and click to the microsites built into it.is not working. Media buyers need to consider factors such as age, sex, location and the type of content that is being engagedWhen it comes to mobile search advertising, what works with on the site when deciding on where to advertise. Ofonline, will not necessarily work on mobile. Therefore, course, ad networks simplify this process by serving adstreating a mobile campaign as part of a company’s on- based on their relevancy.line SEM efforts will not work. There are a few reasonswhy, the most important being that the mobile searcher’s For SMS, segmenting the mobile database into smallerintent is very different from that of the desktop searcher. lists is a good best practice. Run a mobile coupon pro-Separating mobile campaigns from PC campaigns allows gram to all of the people in the database. All those whomarketers to break out keyword performance, reporting, opt to redeem the deal can be segmented into a listtracking and optimization so that it is unique for the called, “Those responsive to deals.” Consumers who ac-mobile space. Most engines will also assign a historical tively engage in free giveaways can be segmented in theweight to campaigns based on performance, so separat- “Freebie lovers” list, for example. This way, marketers caning mobile campaigns will ensure they do not affect the target the right promotion to the right list of consumersrelevancy of their PC counterparts. at the right time. Also, consumers who receive deals that they are more prone to participate in are less likely to getAccording to 360i, mobile search is most useful for lo- annoyed and opt-out in the future.PAGE 12 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  12. 12. Devices and ad formats that generate the best responsesA report by Yahoo Inc. found that tablets have emerged as a potential contender for screen dominance. With approximately 10.3 milliontablet users in 2010 and that number expected to reach82.1 million by 2015, tablets such as the iPad have un-doubtedly caused a disruption in the mobile space.In 2012, tablet sales will grow to 36 percent of U.S. PCsales, according to Yahoo, and this number will likelyoutstrip notebooks/mini-PCs, which are expected to be32 percent of overall PC sales. IPad users are open toadvertising, especially if coupled with an interestingvideo (49 percent) or interactive features (46 percent),according to Yahoo.When it comes to smartphones, Android and iPhoneare really leading the way. Users of these smartphoneplatforms are more receptive to mobile ads and are con-suming a great amount of mobile data both on the Weband via applications. According to a study by Nielsen, What all of this data shows is that the rapid increase inAndroid users are more likely to click on advertisements iPhone and Android handsets will be the key factor in thewithin apps. The reason for this may have to do with growth of mobile advertising, as brands can deliver morethe fact that the Android platform has more free apps engaging experiences on the mobile Web and in-appsthan Apple’s App Store does, making Android users more via these devices. The ability to replicate online creativeaccustomed to the trade-off of viewing ads to receive through better mobile browser experiences will simplifyfree content, according to eMarketer. A Harris/Pontiflex the creative and buying processes and facilitate the flowsurvey found that 71 percent of mobile app users stated of dollars shifting to mobile campaigns from more tradi-that they prefer ads that keep them within the app they tional channels.are using, instead of ads that take them out of the appto a mobile Web browser. Research by Luth Research on At the end of the day, what is most important is thatbehalf of the Mobile Marketing Association found that the advertiser or agency understands its target customeriPhone users are more likely to respond to a mobile Web and how they incorporate its mobile devices into theirad than owners of other smartphones. lives. The ad needs to be creative and resonate with the intended audience. They should also consider the varietyThe Luth-MMA study found that for smartphone users, of mobile ad units that can foster a sense of engagementseeing a mobile ad triggers a response, with 43 percent with the audience.of consumers seeing an ad, and 37 percent of them re-sponding to and interacting with the ad. But different “The truth is that no one platform is winning—eachmobile advertising channels see different response rates. is extremely important in the mobile ecosystem. De-Ads within text alerts seem to be working the best in vice manufacturers and wireless carriers have ag-terms of response rates, the same study found. Thirty- gressively developed and marketed devices that reso-six percent of respondents responded to ads within text nate with different consumers for different reasons.”alerts, while only 11 percent responded to display ads on — Mack McKelvey, senior vice president of marketing atmobile Web sites. Millennial Media, Baltimore.PAGE 13 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  13. 13. Notable creative messaging executions and campaigns that stand outThe Campbell Soup Co. iAd Weather Channel forThe Campbell Soup Co.’s iAd campaign received about 53 iPhone app was anothermillion impressions, with approximately 530,000 of the unique execution. Theusers that saw the ad clicking through and engaging with creative, which only dis-it for nearly one minute. The Campbell’s iAd campaign played when there was aran within applications such as The New York Times’ chilly forecast, invited us-iPhone app. It aimed to celebrate all the new products ers to wipe away virtualthat the brand offers through an interactive experience. frost to reveal a stunning photo carousel featur- The ad focused on Camp- ing eight Westin Hotels bell’s new contemporary & Resorts located in warm label design, 21 addition- climates. The combination of native device capabilities, al soup varieties with re- relevant targeting and a long, cold winter added up to an duced sodium levels and exceptionally powerful mobile rich media campaign. new recipes made easily with the brand’s soups. HBO’s True Blood Clickers could take a HBO’s True Blood mobile ad campaign increased viewer- number of actions once ship 38 percent. Medialets assisted HBO with the effort. engaged with the ad. HBO ran a rich media mobile ad campaign to promote The iAd aimed to increase the season three premiere of “True Blood” using a new adawareness of what is new and relevant with Campbell’s unit that sent chills down consumers’ spines. The goalscondensed soups and drive trial with a downloadable of the marketing campaign were to excite existing fans,coupon and recipes, also available through the iAd. intrigue the uninitiated and garner the attention of the industry to boost awareness and drive tune-in.The banner iAds, on average, achieved more than twice(35 percent) the brand recall of the average food and The campaign, as a whole, was successful—more thanbeverage Internet display ad (17 percent). Favorability(53 percent) and purchase intent (61 percent) increasedsignificantly among consumers who were exposed to theCampbell’s iAd banners. Compared to what Campbell’s isachieving with its television and online campaigns, theexpanded iAd has generated significantly stronger impact.In terms of general recall, the iAd achieved 84 percentcompared to an average 39 percent for the Campbell’s TVad norm and a 32 percent online ad norm. Brand recallfor the iAd was 79 percent compared to an average 20percent for TV and 17 percent online. Message recall forthe iAd was 38 percent compared to an average 14 per-cent for TV and 11 percent online. Ad favorability for iAdwas 54 percent versus an average 12 percent for TV and9 percent online.Westin Hotels & ResortsThe recent Westin Hotels & Resorts ad that ran on ThePAGE 14 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  14. 14. 5.1 million viewers tuned in to True Blood’s season three and CBS. Additionally, The Hyperfactory leveraged itsseason premiere. Agency of record PHD and Medialets relationship with Pandora to create an Intel promotionchose iPhone applications from Variety, Flixster and vari- within the Internet radio service.ous inventory across Jumptap’s mobile ad network. The campaign saw lower bounce rates on mobileImagine browsing through the Flixter application looking than with traditional Web advertising, possibly be-for a movie or browsing the Variety application, and the cause mobile users are using their phones and search-first touch of the screen turns into a bloody fingerprint. ing for information with greater purpose than users onTap it again and get another fingerprint, then the blood regular desktops.pours down and takes over the screen and the activa-tion pops up: a tap-to-watch-trailer call-to-action with Apparently, search engine marketing saw 67 percenta banner ad at the bottom. bounce rates versus 89 percent for display advertising, per Intel. And it saw the lowest bounce rates on iPhonesIntel (85 percent), Android (64 percent) and BlackBerry (71Intel tapped mobile search to support its “Meet the Pro- percent) phones. Intel took these results as a sign thatcessors” brand campaign that drove consumers to the more effort should be made to target the Android andtechnology giant’s mobile Web site. Search agency Co- BlackBerry platforms.vario Inc. tapped Bing for mobile and developed a cam-paign that used a combination of exact and broad match Drugfree.orgkeywords. The result was that mobile cost-per-click was The Partnership at Drugfree.org ran what it claims was40 percent more cost-efficient than online search. one of the biggest public service campaigns in mo- bile history to help prevent teens and tweens fromOne of Intel’s key challenges was to educate consum- abusing medicines.ers about the key product differentiators of its micro- processor series. There The nonprofit organization tapped ChaCha to power the were a number of factors mobile advertising campaign that included both text that contributed to the 40 messaging and mobile video advertising, as well as con- percent greater efficiency, tent additions to ChaCha’s database that let users get including daily keyword bid updates and weekly ad copy optimizations. Route optimization also helped to drive higher CTRs and lower CPCs thancompetitive mobile search engines. These factors com-bined to make Bing for mobile very effective for Intel.Mobile display advertising also played a role in the In-tel campaign. The Hyperfactory was hired to devise astrategy for media, campaign, design and execution.Intel used display and rich-media ads, which userscould expand, drag and interact with to find the rightprocessor for them. It also used basic banner ads that ranon mobile Web sites and in apps.Ads ran on a number of mobile Web sites, including CNNPAGE 15 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  15. 15. answers when they asked about drugs, medication, alco-hol and related topics.Through ChaCha’s mobile advertising platform, targetedmessages were sent to teens and parents based on ageand topic that helped educate them about the healthrisks posed by teen medicine abuse. SMS user responserates averaged 4 percent, while the best performing textads achieved a 9.8 percent response rate.Calvin KleinCalvin Klein went beyond mere banners in June 2010,with its GQ application sponsorship. The brand integrat-ed its own content into GQ magazine’s Style Picks appli-cation via a sponsorship that hardly felt like advertising.CK bought this sponsorship directly from GQ to presentits new product line to mobile shoppers. The ad unit was portal. Yahoo’s mobile homepage gets about 50 milliona sponsored guide within the app and was full of interac- unique visitors a month, which comes to about 1.5 mil-tive content such as model shots, a product catalog and lion unique visitors per day. Therefore, the 6.2 percentvideos. The idea was to make the ad unit as close to the click-through rate is quite a large number of people thatcontent as possible, so that it is useful to men looking for interacted with the ad. style advice. The Yahoo rich media ad unit featured animation. The ad Within the app, con- ran on Yahoo’s mobile homepage, with the top of Shrek’s sumers could click on a head along the bottom of the iPhone screen. If a consum- model with a new sum- er tapped on his dome, Shrek popped up to fill the screen, mer look and get a list with “Tickets” and “Show Times” icons on his forehead. of all the products that Another tap directs the user to a microsite, where he model was wearing. For could watch the trailer or buy a ticket for a local theater those users who liked via Fandango. On the Yahoo Movies mobile page, tapping what they saw, they Shrek’s head also caused it to fill the screen, where the could find the closest user could tap again to move to the microsite. CK store to go try it out.Additionally, if consumers wanted to know more about Iron Man 2what CK had going for with that look, they could watch The average click-through rate of movie-ticketing giantthe video where style experts from GQ and CK walked Fandango’s commerce-enabled Iron Man 2 mobile videothrough the new items. CK was able to reach men in ads surpassed 6 percent—more than eight times as effec-discovery mode looking for ideas who were near a point tive as the average PC Internet video ad.of purchase. Fandango’s marketing goal was to drive movie ticketParamount “Shrek Forever After” sales for the Iron Man 2 movie. The company wantedA Paramount mobile rich-media campaign for Shrek re- to target its main demographic of movie-goers and ac-sulted in a 6.2 percent click-through rate. The “Shrek tion lovers, so the company chose to place ads poweredForever After” campaign targeted iPhone users on the by iVdopia within movie, entertainment/gaming andYahoo mobile homepage and the Yahoo Movies mobile sports apps.PAGE 16 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  16. 16. Fandango provided iVdopia with a Flash creative with a app for Apple’s iPad. The New York Times Editors’countdown of days left until the movie’s premiere. IV- Choice app offers a selection of the latest news, busi-dopia helped convert the Flash creative into a video ad- ness and technology news, opinion and features chosenvertisement and executed the countdown with different by Times editors that can be downloaded automaticallyvideo creative each day from April 29 to May 7, 2010. to iPad, a publisher favorite.The mobile video ads appeared in a variety of applica- The Editors’ Choice app launched with a full-page verti- tions for the iPhone cal and horizontal interstitial ad that provided a large and iPod touch, in- interactive canvas for Chase Sapphire. Ad agency T3 cluding Skyworks’ and Medialets collaborated on the design of the Chase Goaaal! Lite, Arcade Sapphire ad units. Hoops Basketball Lite, Field Goal Frenzy Lite, The card issuer’s goal was to drive users to a landing Arcade Bowling Lite, page to get more information about Chase Sapphire and 3 Point Hoops Bas- apply for the card via a link on that page. The opening ketball Lite and World interstitial ad unit was optimized for the iPad’s function- Cup Air Hockey Lite. ality. Depending on how a user tilted the iPad, a different reward showed up, spilling out of each side of the Chase The mobile video ad Sapphire card. creative had a clear call-to-action asking There were 12 different rewards that the ad promotedconsumers to buy tickets that resulted it in 6.17 percent related to airlines, resorts, ski trips, even romantic dates.of users clicking on the “Buy Tickets” icon. In addition to the interstitials, the campaign also includ- ed half-page ads and banners with both landscape andOn average, more than 25 percent of users who clicked portrait versions.on an iVdopia mobile video ad also did a post-click ac-tion. Fandango received more than 50,000 actions on thecustom Iron Man 2 Talk2Me page created by iVdopia.Around 25,000 users clicked on the “Buy Tickets” iconand more than 11,800 users viewed the trailer for theIron Man 2 movie.More than 5,800 consumers clicked to download theFandango application, while another 7,800 clicked toview Iron Man 2 show times. Forty-nine percent of userswho clicked on the ad decided to buy tickets now, while23 percent viewed the trailer, 16 percent searched showtimes and 12 percent downloaded the app. In total, themobile video campaign generated 817,495 impressionsand 50,410 clicks through iVdopia’s Talk2Me actions innine days.Chase SapphireJPMorgan Chase & Co.’s Chase Sapphire, a rewardscard targeting affluent consumers, was the exclusivelaunch sponsor of The New York Times Editors’ ChoicePAGE 17 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  17. 17. Measuring mobile advertisingA ccording to Paul Childs, chief operations offi- Third-party ad cer of Adfonic, London, there are several ways serving technolo- of measuring the success of a campaign post- gies such as Atlasclick. Mobile ad networks offer full post-click measure- and DoubleClickment with the ability to track application installs and that track whenmeasure conversions post-click on mobile sites, along a user clicks on awith the capability to measure the real success of third-party ad tagclick-to-video campaigns. are gaining trac- tion within mobileApp-install tracking enables advertisers to measure not and will continueonly how many times their iPhone or Android app is to instill greaterclicked on, but also the number of downloads and first confidence in mo-opens that are generated post-click. This information bile advertisingprovides visibility into exactly how much an advertiser is measurement, Ad-paying for each app download. fonic’s Mr. Child said. There will in-Similarly, post-click conversion tracking for mobile sites evitably be someallows advertisers to specify and track predefined actions clicks that are– conversions – performed by a user once she has arrived generated by acci-at a mobile site. dent with all mobile display campaigns. But there are measures that adver-This enables the advertiser to assess performance from tisers can take to increase the proportion of high-valueimpression through to conversion and to establish their clicks versus accidental clicks.cost per conversion. Additionally, click-to-video cam-paigns that allow the advertiser to see how long a user Relevancy is vital, and mobile advertising networks workspent viewing their video enables them to gauge the true closely with publishers to ensure that ad placements arevalue of the click. relevant to the user. This is not only in terms of the chan- nel and context of the surrounding content, but also byIt is important that mobile networks provide advertisers employing sophisticated mechanisms such as geo-tar-with the right key performance indicators to facilitate geting to increase relevancy.the ability to work to cost per acquisition (CPA), cost perlead (CPL), cost per install (CPI) and cost per download Ensuring that ads are served to a highly targeted audi-(CPD) targets, and to see that these targets are being ence with a high propensity to click on the ad in ques-delivered through a cost-per-click (CPC) campaign. This tion reduces the percentage of overall clicks that arelevel of transparency provides advertisers with the per- generated accidentally.formance visibility that they need to see how well theirads are performing. It is this increasing ability to fine-tune targeting to drive high-value clicks, combined with improved transparencyThe ability to do this in real time and optimize campaigns to measure mobile ad campaign performance from im-as they run in much the same way that advertisers are pression to conversion that is encouraging more brandsused to with online campaigns is key to maximizing the to come on board and increase their mobile advertisingvolumes of high performing clicks, hitting CPA targets budgets. Proof, if any more were needed, that mobile ad-and ultimately driving up ROI. vertising delivers relevant and valuable clicks.PAGE 18 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  18. 18. Making media buys for mobile advertisingT he first step, as with any medium and not just mo- are, without exception, most successful executions. Thus, bile, is to know why you are buying mobile me- the second difference is media and creative need to work dia. It is important to outline your goals earlier on closely from start to finish instead of in siloes.” – Pauland then see if mobile is the best method of achieving Gelb, vice president and mobile practice lead at Razorfish,these goals. New York.Additionally, a campaign’s specific goals will dictate the To illustrate this point, Medialets and Razorfish workedtype of media to buy, since the target audience is differ- on a campaign for Westin, which ran on The Weatherent from campaign to campaign. Channel app. It targeted users in cities where the tem- perature was below 30 degrees. The creative was aboutThere are so many different options when it comes to the cold weather and the appeal of resorts in destina-from which firm to buy mobile media. There are the ad tions where the weather is extremely warm. The medianetworks – Millennial Media, Jumptap, Apple iAd, Google and creative were completely integrated. Creative neededAdMob, Mojiva, InMobi, Greystripe, Air2Web and Micro- to know from the beginning that this type of placementsoft, to name a few. For brands and marketers who are was possible.working on a direct response campaign, the best bet isteaming up with a mobile ad network. But for a customcampaign, looking to do something out of the ordinary,sometimes it is worth working directly with the publisherand build something together with them.When choosing ad networks, a best practice is goingwith a few at a time. This not only increases reach, butmidway through the campaign, brands can optimize outof underperforming placements or even networks. Thenetworks differ by targeting capabilities, scale, the typeof inventory, rich media and blind versus open. For exam-ple, iAd’s network is unique because it uses iTunes andApp Store data to target. In most cases, mobile media isbought on a CPM basis. However, this can vary and manyof the blind networks can be purchased on a cost-per-click basis.It is really important to monitor the campaign from startto finish. Brands can evaluate and optimize throughoutto make sure that they are not only meeting campaigngoals but also achieving good return on investment.“A lot more thought must go into the where – both loca-tion and content – and when decisions of the media plan.Those decisions are more dependent upon the ad’s copy,design and functionality. Media and creative have beenseparated for most other channels. Advertising that hascoordination and integration amongst those componentsPAGE 19 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  19. 19. Integration with other channels and role as traffic driverD igital, out-of-home, TV, print and direct mail are For example, fast food chain channels that marketers can use as consum- Arby’s masterfully drives tri- er touch points. Mobile can be integrated into al, sales and loyalty throughthese channels, giving them legs to work harder and cross-media integration.perform better. The Hipcricket-supported campaign to launch itsIn the case of print, direct mail and out-of-home, mar- Roastburger product kickedketers are using mobile make what has traditionally been off with a Jimmy Kimmelone-dimensional very dynamic. Marketers can use mo- Live segment, where view-bile to make every other touch-point more effective by ers were urged to text theadding location context, social sharing capabilities and word ROASTBURGER to 27297 to receive a free sandwichinteractivity to analog. with the purchase of any drink. Arby’s created 172 local databases to enable a local mobile capability and to han-According to Razorfish, one of the world’s leading dle the SMS response traffic from its television, radio andinteractive agencies and one of the largest buyers of in-store promotions.digital advertising space, consumers are bombarded withthousands of ad messages. The attention of consumers Of consumers who started a text interaction through in-is scarce and incredibly hard to obtain. Enhancing other store signage, more than 89 percent opted to join thechannels is essential to generating the necessary ROIs. Arby’s local database. In addition, more than 90 percentAs an always-on connected device, mobile is uniquely of TV respondents did so. Since the initial launch, Arby’sable to direct a consumer from one consumer touch- has integrated mobile into many of its TV and radio com-point to another. This is especially valuable as the path to mercials, print ads, Sunday coupon circulars, live eventspurchase has become more complex. and in-store signage.“Mobile is unique because it is both a channel and a con- Mobile is not an island unto itself and inasmuch as itsnective tissue. The metaphor of a funnel has been re- most ardent fans would like to believe, the medium’splaced by a non-linear, non-sequential path to purchase. best use is in giving legs to others. Mobile has the po-Only mobile can shepherd consumers through this new tential to drive traffic to retail stores, as has been amplylabyrinth to conversion. - Paul Gelb, vice president and proved with campaigns from restaurant chains such asmobile practice lead at Razorfish, New York. Papa John’s, McDonald’s, Burger King, Starbucks, Jiffy Lube and countless others with a physical footprint. SMSMobile initiatives are most successful as a leveraged advertising, specifically, could give the advertiser anaspect of multichannel campaigns. Mobile’s biggest idea of the consumer’s engagement with the brand’s TVadvantage is that it gives legs to other channels such advertising. Ditto with radio. And it has proved to haveas catalog, retail store, direct response television and worked. Oil change giant Jiffy Lube has gone on the re-ecommerce. The simple addition of a common short code cord to acknowledge SMS’ role in driving traffic to itsand keyword can transform a campaign, call-to-action, locations. In most cases, the SMS call to action was runstorefront or loyalty program. Add to that a mobile- first on radio spots targeted to drivers in certain areas.friendly site and apps for devices such as the iPhone,BlackBerry, Nokia, Android, the Palm Pre and others. And What about direct mail and inserts? How about placingto promote all of that, use mobile display and paid search targeted keywords and short code on mail and insertsinitiatives. With this combination, retailers and market- sent to consumers’ homes and offices? Ask them to re-ers can breathe new life into their customer acquisition spond via text for prompt fulfillment of the desired calland retention efforts. to action. The examples can go on and on.PAGE 20 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  20. 20. Challenges with mobile advertising and fixes recommendedT he complexity of the mobile ecosystem and the consumer information. The purpose of the framework is precedent developments required in devices, in- to assist policymakers, including Congress, in their devel- frastructure, consumer behavior and advertising opment of potential laws governing privacy and to guidetechnology have held this market back from full tilt. and motivate industry to develop best practice and self- regulatory guidelines.To wit: Screen size continues to be an issue, lack of educa-tion among marketers, brands and agencies are also chal- The FTC’s proposal for a Do Not Track mechanism tolenges. Mobile advertising is a complex ecosystem with let consumers opt out of targeted online and mo-so many different platforms – iPhone, iPad, Android, Win- bile advertising could be a big challenge to the mobiledows and Research In Motion, to name a few. Marketers advertising landscape.need to build ads for each platform for maximum reach. According to Linda Goldstein, partner and chair of theMobile does present a number of clear differentiators advertising, marketing and media division of Manatt,and advantages as an advertising medium, although tra- Phelps & Phillips LLP, a New York-based law firm, indus-ditional consumer usage patterns – on-the-go, quick and try groups and press coverage have criticized the reportshort-usage bursts – have thus far translated to less pa- for failing to fully appreciate the importance and valuetience with intrusive ads. of tracking in delivering relevant and cost-effective ad- vertisements to consumers.The challenges of diverse mobile technology means thatstrong targeting in mobile will not be easy to achieve, but Without these tools, some claim, costs will increasethose that break through the barriers will be the winners as advertisers will not have the ability to efficient-in the market and drive the most value for the industry. ly deliver their message to consumers that fit their target audience.The main challenges of mobile advertising are lack ofexperience for new entrants, the somewhat complex na- Critics argue that tracking also allows advertisers and adture of how to execute campaigns and uncertainty about networks to not deliver certain ads to consumers whoseROI. The industry must focus on making sure that brands surfing behavior suggests that the ad would be irrelevantand agencies understand mobile is a marketing medium to or unwanted by them. For example, ads for feminineand not a strategy. hygiene products would not be served to a viewer whose online history comprises Web sites geared primarily toPaul Cushman, senior director of mobile sales strategy men. The FTC’s proposal has similar concerns for mobileat Yahoo Inc., Sunnyvale, CA, said that brands and agen- advertisers.cies need to look at the broader digital strategy, goals,metrics, assets and budget, and determine how to in- “We still need to focus on how to maximize the benefits oftegrate mobile. Still, continued fragmentation among mobile. We have just scratched the surface of how effec-operating systems, devices, application environments tive and versatile mobile can be. Once we have establishedand carriers will continue to plague advertisers. With full value of mobile it will be easier to operationalize andevery new device that hits the market, marketers are improve the efficiency of all of its components and uses.challenged with figuring out what works best from a A focus on discovering and creating all of mobile’s ben-creative standpoint. efits requires staffing with a unique set of capabilities. Organizations must acquire or transfer creative and en-Additionally, on Dec. 1, 2010, the Federal Trade Commis- trepreneurial generalists that are confortable working insion released a preliminary staff report setting forth a an unstructured environment.” – Paul Gelb, vice presidentframework on how commercial entities should protect and mobile practice lead at Razorfish, New York.PAGE 21 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011
  21. 21. Best-practice tips1. Consider how consumers are now using their mo- quarters, savvy marketers are quickly realizing the ROIbile devices: as a shopping tool for price comparisons, and investing heavily.to share purchases with others, as well as a way to con-sume media and entertainment. Use mobile advertising 7. Cross-platform is the way to go. Creating ads for ato influence consumers based on shopping behavior. single platform, carrier or mobile device does not make sense, since not all consumers are on smartphones or2. Avoid buying cheap impressions and not focusing on a single carrier. Excluding the full, relevant audienceon making an impression on the target audience. Ad- from a mobile advertising campaign will limit its success.vertisers often get lured into the cheapest inventory. It is Do not forget about connected devices such as gamingimportant to evaluate the quality of those impressions. devices and tablets, feature phones, and other cross-As the saying goes, “You get what you paid for.” platform opportunities. Do not overlook consumers who use feature phones.3. Set clear metrics for success. Whether they are per-formance or brand focused, setting clear metrics for suc- 8. Drive your objectives. You can engage your targetcess are imperative in mobile advertising. Engage with a consumer at every level of the purchase funnel. Drivethird-party research firm such as Dynamic Logic to un- awareness, capture information for re-marketing, drivederstand the brand implications of a campaign. consumers to bricks-and-mortar locations or to mobile commerce sales directly through mobile. Identify your4. Leverage targeting parameters. Mobile advertising campaign goals, then customize your message and strat-enables incredible targeting parameters. Beyond behav- egy to achieve those results.ioral and contextual, ad networks offer targeting suchas geo, demo and keyword-based. The ability to engage 9. Follow the Mobile Marketing Association set ofyour target audience at scale is unparalleled in mobile. guidelines to mobile advertising, which is currently theThink about who you need to reach, when you want to industry standard.reach them, and what you want them to do for an ef-ficient and effective buy. Mobile advertising offers the 10. Test, test and optimize. Test what works and whatunique ability to target your audience through a number does not and optimize on the fly to increase ROI.of methods, including behavioral targeting, demographictargeting and location-based targeting by country, re-gion, DMA and ZIP code.5. Focus on the post-click experience. Not providing afluid mobile experience post-click is a big mistake. Ad-vertisers should do user scenarios for a post-click ex-perience that is customized for the mobile audience.You can make an engaging mobile experience for con-sumers with rich media creative and highly-engagingpost-click actions, including the ability to view videos,drive to social media sites, download apps and directlypurchase products.6. Learn from past efforts and what was learned inmobile from previous campaigns to lock up mobileinventory. Where demand exceeded supply in previousPAGE 23 Mobile Marketer CLASSIC GUIDE TO STATE OF MOBILE ADVERTISING 2011