eMarketer Webinar: Mobile Ad Effectiveness

39
© 2014 eMarketer Inc. made possible by Mobile Ad Effectiveness Cathy Boyle Senior Analyst, Mobile August 21, 2014

description

The amount spent on mobile display advertising is expected to increase dramatically in 2014 as companies like yours shift budgets from desktop to mobile. But as you spend more on mobile, are you confident the metrics you’re using to gauge the effectiveness of your ad spend are valid? Topics in this webinar include: How have performance metrics for mobile display ads changed during the past year? Where are prices headed, and how does mobile display compare with desktop? Which mobile display ad formats are most effective—banners, rich media, video, social, local, native? What needs to be improved to further increase the effectiveness of mobile display ads?

Transcript of eMarketer Webinar: Mobile Ad Effectiveness

Page 1: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

made possible by

Mobile Ad Effectiveness

Cathy Boyle

Senior Analyst, Mobile

August 21, 2014

Page 2: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Agenda

Mobile display ad performance and pricing trends

Effectiveness scorecard: Where mobile display

advertising excels and where it falls short

What it will take to improve mobile ad effectiveness

further

Twitter – #eMwebinar

Page 3: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Performance and Pricing

Trends

Page 4: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Clickthrough rate (CTR) and cost per impression

(CPM) remain mobile’s key efficacy benchmarks

1. Most marketers agree neither metric is perfect nor is

each applicable to every mobile ad campaign

2. Still, tracking CTR and CPM rates over time

provides insight into marketer confidence in a

particular ad format

Source: eMarketer, April 2014

Twitter – #eMwebinar

Page 5: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

The relative strength of mobile ad formats have

not changed significantly in terms of CTRs

0.05% 5.0%Mobile Banners Mobile Rich Media Mobile Video

Spectrum of CTRs

Mobile Social Ads

Page 6: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

CTRs for

static mobile

banners have

gone the way

of their

desktop

counterparts:

downward

Desktop Banner CTR Average, 2013: 0.08%

(Sizmek)

Page 7: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

CTRs for

mobile rich

media units

have

generally

been above

desktop

norms

Expandable ad units and interstitials were

top performers

Page 8: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

CTRs for

mobile

social ads

have been

on par with

mobile rich

media ad

units Facebook’s mobile ads produced a better return

on investment, according to marketers polled in

two surveys. (Cowen, December 2013; RBC Capital,

September 2013)

Twitter – #eMwebinar

Page 9: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

In-stream

mobile video

ads generated

the highest

response

rates, with

CTRs up to

4.90%

CTRs of rich media ads with embedded

video were five times those without video.

(Pointroll, 2013) To measure the true impact of

in-stream mobile video ads,

marketers also measure start

rate and completion rate

Page 10: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Mobile display eCPMs—another signal of

campaign performance—have steadily increased

Effective CPM

(eCPM) is a

performance

metric used by

publishers and

advertisers to

understand the

revenue

generated per

1,000 ad

impressions

Page 11: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Mobile display eCPMs—another signal of

campaign performance—have steadily increased

Effective CPM

(eCPM) is a

performance

metric used by

publishers and

advertisers to

understand the

revenue

generated per

1,000 ad

impressions

Page 12: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Mobile CPMs

remain lower

than desktop

CPMs—a

condition

likely to

persist for

some time

Page 13: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

An increase in mobile ad spending will not

necessarily result in higher CPMs

Supply will continue to

outweigh demand because

spending on mobile

advertising lags time spent

with mobile devices

Twitter – #eMwebinar

Page 14: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Mobile Advertising

Scorecard

Page 15: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

In aggregate,

marketers and

digital ad

experts gave

mobile

advertising a

“B-” grade for

effectiveness

Their effectiveness scores for

TV and desktop advertising

were just slightly better

Page 16: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Marketers

graded 16

aspects of

mobile

advertising

in terms of

effectiveness.

Location-

based ads

received the

highest mark

Most

effective

Least

effective

Page 17: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Location-targeted mobile ads

Effectiveness score: A-

Key Insights:

The combination of location and daypart targeting is proving to be

particularly powerful

Location targeting enables brands to satisfy consumers’ real-time

needs

Twitter – #eMwebinar

Page 18: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Location-based ads are most powerful when the

phone’s ‘use case’ is taken into consideration

“ We see a lot of people that don’t

actually think about a hotel or a car

until they get to where they’re going.

So in that sense location targeting is a

massively good way for us to

reduce friction and say, ‘You don’t

have to search. We’ll find where you

are, we’ll find a property that’s close

to you.’”

—Blake Clark, director of mobile for

Travelocity

Page 19: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Mobile in-stream video ads

Effectiveness score: B+

Key Insights:

Effective but inventory is still scarce, which puts limitations on

campaign scale

Short supply also has an inflationary effect on pricing, so at this point

mobile in-stream video advertising is the domain of bigger brands

The length and style of mobile video ads are also evolving toward

shorter and less polished ads

Twitter – #eMwebinar

Page 20: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

JetBlue used video assets and location/device

targeting to engage consumers

For the airline’s “Air on the Side

of Humanity” campaign,

smartphone ads aimed to raise

brand awareness and were

delivered inside a geofence

around public transit centers

during commuting hours

Tablet ads were designed for

deeper engagement and

included a rich media game

and long-form video Source: Mobile Marketer, April 4, 2014

Page 21: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Mobile sponsorship ads:

Effectiveness score: B+

Key Insights:

The form of the sponsorship varies widely depending on the content

environment and the advertiser’s objective

Clear objectives and key performance indicators are needed

Twitter – #eMwebinar

Page 22: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Brand building was the objective of MINI USA’s

mobile sponsorship campaign with UrbanDaddy

“ The [sponsorship] experience was

about brand building, and it

proved very successful for us.

We looked at interactions within the

app, how many people signed up to

be a participant in the ‘MINI Night Out’

program and how many provided

[contact details] to get more

information.”

—Lee Nadler, marketing communications

manager for MINI USA

Page 23: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Hershey sponsored the mobile data needed to

deliver the brand’s mobile video ad in-app

The Hershey’s Scharffen Berger

brand ran mobile banner ads in

the Pandora iPhone app with a

30-second video on the landing

page

Copy on the ad explains the

video is sponsored and does

not consume data from the

user’s phone plan

Source: Mobile Marketer, April 1, 2014

Page 24: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Facebook’s mobile ad formats

Effectiveness score: B+

Key Insight:

The social network’s ads are helping marketers achieve multiple goals, from generating sales to driving app downloads

Twitter – #eMwebinar

Page 25: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Facebook’s mobile ads are closest to closing the

loop for marketers

“ Facebook is certainly the platform

that’s come the furthest in terms of

helping us understand how our

media is driving the business.

We’re starting to be able to do some

things with Facebook’s mobile ads to

drive omnichannel sales, and

we’re very excited about that.”

—Jennifer Kasper, group vice president,

digital/new media and multicultural marketing

at Macy’s

Page 26: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Result reporting process

Effectiveness score: C+

Key Insights:

The manner in which campaign results are reported for mobile display

ads varies greatly by publisher and ad partner

The disparate nature of reports makes it difficult to aggregate and

interpret campaign results

Twitter – #eMwebinar

Page 27: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Reporting is still in its infancy—a consolidated

view of all results is needed

“ Reporting requires separate plug-ins

and it’s a challenge for

marketers to roll up and

understand all of the results in a

single view.”

—Heidi Browning-Pearson, senior vice

president of strategic systems at Pandora

Page 28: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Measurement and analytics

Effectiveness score: C

Key Insights:

Low scores for measurement and analytics indicate marketers

don’t have a clear vision of mobile’s true impact, especially on foot

traffic and sales in brick-and-mortar locations

Methods for understanding what consumers do immediately after

engaging with a mobile ad need work

Twitter – #eMwebinar

Page 29: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Need to measure more than ad engagement

“ The analytics are there for

engagement and understanding

impressions. But it’s hard to track

[the ad] to a transaction, and that’s

where it falls down.”

—Laura Jakobsen, senior vice president,

marketing and design at Pinkberry

Page 30: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Mobile creative capabilities

Effectiveness score: C

Key Insights:

Creative teams have only scratched the surface when it comes to

leveraging the native capabilities of smartphones and tablets

Creative assets developed for the desktop are often repurposed for

mobile despite widespread agreement that a tailored ad experience

would be more effective

Twitter – #eMwebinar

Page 31: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Brands are beginning to push creative

boundaries and leverage device capabilities

Nivea launched Bluetooth-enabled print ads in Brazil

Sources: Ad Age, June 17, 2014,

BEcause Blog May 22, 2014

Page 32: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

What Will Improve Mobile

Ad Effectiveness Further?

Page 33: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Answers to this question revolve around four key

areas:

1. Improved creative: Interactive formats that make use of all

device capabilities and are integrated with the content experience.

2. Data integration: The ability to tie mobile users back into other

data sets that marketers already own needs improvement.

3. Standards: Guidelines for creative development, user tracking and

results reporting across devices need to be more cohesive.

4. Measurement tools: Better analytics and measurement solutions

are needed to gauge return on investment and lifetime value.

Off-the-rack-type tools would be ideal.

Page 34: eMarketer Webinar: Mobile Ad Effectiveness

Cloud-based Software Platform

for Faster Translation of

Websites, Mobile Apps, and

Documents

Matt DeLocaSVP, Global Sales

Page 35: eMarketer Webinar: Mobile Ad Effectiveness

Content CreatorsWorry about how the content

they create is going to be

translated and delivered

DevelopersHave to continuously extract

source content and input

translated content

TranslatorsStruggle with complex file

formats and version control,

and often lack visual context

</>

Translation Is Complex

It Requires Manual Work & Coordination

Page 36: eMarketer Webinar: Mobile Ad Effectiveness

</>

Content CreatorsCan focus on creating high-

quality content without

worrying about translation

DevelopersTheir roadmap work is

no longer impeded by supporting

translation projects

TranslatorsAre able to devote all of

their energy to creating the

highest-quality translations

Smartling Makes It Easier

By Automating the Process

Page 37: eMarketer Webinar: Mobile Ad Effectiveness

SpeedIncreased by automating

otherwise manual tasks

like content collection

QualityImproved by providing

translators with visual context,

glossaries, and style guides

CostReduced through automation

and effective, proper reuse

of prior translations

Smartling Benefits

Faster, Higher Quality & Lower Cost

Page 38: eMarketer Webinar: Mobile Ad Effectiveness

[email protected]

@smartling

THANK YOU

Page 39: eMarketer Webinar: Mobile Ad Effectiveness

© 2014 eMarketer Inc.

Learn more about digital marketing with an

eMarketer corporate subscription

Around 200 eMarketer reports are published

each year. Here are some recent reports you

may be interested in:

Q&A Session

Made possible by

You will receive an email tomorrow with a link to view the

deck and webinar recording.

To learn more: www.emarketer.com/products

800-405-0844 or [email protected]

Cathy Boyle

Mobile Ad Effectiveness

Mobile Advertising Scorecard: Marketers Give Mobile Display a

B-Minus for Effectiveness

Mobile Ad Targeting: After Years of ‘Spray and Pray,’ Signs of

Sophistication Appear

Worldwide Ad Spending: Midyear 2014 Complete Forecast

US Ad Spending: Q2 2014 Forecast and Comparative

Estimates