eMarketer Webinar: Mobile Advertising—Five Things You Need to Know Now

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Mobile Advertising:

Five Things You Need to Know Now

Cathy Boyle

Senior Analyst, Mobile

February 4, 2016


Mobile AdvertisingThe definition of

‘mobile’ has

expanded


73.6% of US adults will use smartphones

How widely used will the various mobile device

types be in 2016?

53.6% will use tablets

25.5% will use

wearables


Five Things You Need to

Know Now


Digital advertising = mobile advertising

1


Mobile ad spending far exceeds desktop

Mobile 2X

Desktop

Mobile 2.3X

Desktop

US Mobile Ad

Spending (billions)

US Desktop Ad

Spending (billions)$25.08 $24.60

$26.49 $28.21

$42.01

$50.84

$57.95

$65.49

2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9

Source: eMarketer, Sept. 2015


The amount spent on mobile advertising will

approach television levels in the US in 2019

Television

Mobile

Print

Radio

Billions

In 2019, mobile ad spending

will trail TV spending in the

US by just 19%$72.70

$78.28

$42.01

$65.49

$28.19 $27.43

$15.18 $15.28

2016 2017 2018 2019



Yet few brands report spending a majority of

their digital budget on mobile

“No [media] planner is planning 60%

mobile today. I’ve seen estimates

as low as 7%, and the highest

I’ve seen is 12%. They’re planning

60% or 80% in desktop.”

—Richy Glassberg, CEO of mobile ad server

Medialets


‘Planned spend’ vs. ‘actual spend’ explains the

disconnect

Think cross-device and

platform-based buying

Search

Social

Programmatic


Spending patterns differ between mobile and

desktop advertising

Search

Search

Display Display

$14.72 $10.70 $11.42 $10.58

2014 2015 2016

US Desktop Ad Spending(billions)

$8.72

$18.54

$9.65

$21.58

2014 2015 2016

US Mobile Ad Spending(billions)



Embrace mobile identifiers

(Cut the cookie cord)

2


The alternative? Losing sight of your customers

and prospects

US adults spend the

bulk of their digital time

using mobile devices,

where cookie-based

tracking is limited


Mobile’s two

classes of

identifiers

need to be

stitched

together to

understand

consumer

behavior

In-App ID

Apple’s

Identifier for

Advertisers

(IDFA)

Android’s

Advertising ID

Web ID

Cookies (Android,

predominantly)

Device-recognition

methods


The vast majority of marketers still rely on

cookie-based tracking

91%

Cookies

Data used by US marketers to identify

users and build profiles

77%

Mobile/Device

IDs

vs.

Source: VB Insight, Sept. 2015


Digital advertising has reached the

location tipping point

3


A majority of US advertisers use mobile location

data to achieve success

56%

of Agencies

rated the use of mobile location data as

one of the most important digital

marketing tactics

53%

of Brands

Source: Hanapin Marketing, Aug. 2015


Location-based ad targeting (proximity targeting)

Geobehavioral ad targeting

Consumer insight and audience building

Online-to-offline measurement

Marketers use location data in multiple ways

(It’s not all about proximity targeting)


Proximity targeting is the most common use of

mobile location data

38% of US mobile

ad dollars will be

spent on

location-targeted

ads this year

That share will rise

steadily over the

next four years


Digital shoppers

in particular

appreciate

location-

targeted ads

68% of US digital

shoppers in Adadyn’s

poll thought

location-targeted ads

were useful


To increase

their ads’

relevance,

advertisers

overlay

geobehavioral

data with

contextual

data so as to

fine-tune their

targeting

55% of marketers

in the US and

Western Europe

used contextual

data-driven

marketing

frequently


Understanding

smartphone

users’

behaviors in

the physical

world is

fueling the

rise of

location-based

retargeting

86%

Home

47%

Work/School

57%

Shopping

47%

On-the-Go

Source: YP and IDC, Sept. 2015

Locations where US smartphone users

conduct web searches


Analyzing

visitation rates

to specific

locations

provides

valuable

insights for

retargeting and

building

audience

profiles

57%

Shopping

47%

On-the-Go

Playground

Bar

Gym

Home Depot

Sephora

Toys “R” Us


Still, a growing number of US smartphone users

shop on their phones from home

Online-to-offline

(O2O)

measurement is

critical

Location data is

playing a key role

in O2O

measurement


Mobile is measurable

(But you need to know what you’re measuring)

4


40% or more of

US marketers

said they were

‘somewhat to

very effective’ at

measuring mobile

ad effectiveness

(But it’s not easy)


To measure in-store sales, mobile coupons are

still the most effective method

But location data is

proving powerful for O2O

measurement

Attribution vendors use

location signals in

attribution models to

credit mobile ads with

in-store sales

In-store beacons hold

promise


Location

signals can

also be used

for measuring

gains in foot

traffic


Clickthrough

rate and

conversion

rate remain

the primary

measurement

metrics

Defining “conversion” can

be challenging, since

mobile ads influence

actions in other channels


Relying on additional performance metrics is a

best practice with mobile

Clickthrough rate (CTR)

Engagement rate

Engagement time

Viewability

Etc.

Multiple performance metrics are even more important in mobile than

desktop because mobile’s “on-the-go” usage leads to accidental clicks


When it comes to mobile viewability and

verification, advertisers have concerns

The Media Ratings

Council issued an

update on mobile

viewable

impression

measurement in

November 2015

Goal: Circulate

document for

industry feedback

in Q1 2016


As mobile ad

measurement

methods

improve,

marketers’

opinion of

mobile’s

return on

investment is

changing—for

the better


Creative is in crisis

(Thus the emergence of mobile ad blocking)

5


Attitudes

toward mobile

advertising

aren’t very

positive

among US

adults

Hispanic and non-Hispanic

millennials were slightly

more open-minded about

mobile advertising


Nearly 70%

of US mobile

internet users

encounter ads

in that realm

More than half

(51.8%) said

the ads were

not effective

69.1%

51.8%


One out of

three US

mobile users

employ some

form of ad

blocking


Ads are often intrusive and irrelevant

Read

this ad!

X

Look

here,

not

there! Tap here!

Response:

Advertisers are turning to dynamically created ads and native ad formats to

increase the relevancy of brand messages and better integrate ads with content

X

X


More than

one third US

of advertisers

are using

dynamic

creative ads;

nearly 30%

more plan to

use such ads

in the near

future


One in four

US marketers

plan to

increase

spending on

native

advertising,

and much of it

will be served

to mobile

devices


Resolving the creative crisis cannot be

accomplished via advertisers’ creativity alone

Publishers need to

get creative with

new ad units

Branded emojis

in messaging apps

Image source: Swyft Media

Snapchat’s sponsored

lenses

Image source: AdWeek


Recap: Five things you need to know now

Digital advertising = mobile advertising

Embrace mobile identifiers—cut the cookie cord.

Digital advertising has reached the location tipping point.

Mobile is measurable. But you need to know what you’re

measuring.

Creative is in crisis, thus the emergence of mobile ad

blocking.

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Dstillery demystifies your consumers' digital footprints

to reach new audiences across

mobile and desktop, at moments that matter.

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Qualitative Behavioral and Geo-Location Data

BROWSER

BEHAVIORS

PLACES OF

INTERESTDEVICE

LOCATIONS

APP

BEHAVIORS

Digesting 50 Billion Data Points Daily

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4:53P

OFFICE

LAPTOP

6:18P

HOME

TABLET

7:05P

STORE

CELL

Connecting Behavior: Hands and Feet

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LIFESTYLE

MarriedCollege Graduate

INTERESTS

SportsGourmet Food

Movies

DEVICE / PEAK DATA USAGE

Mobile Phone: Wed, 8pm

PASSIONS

Luxury CarsMusicCooking

LAST SITE VISITS

Motor TrendFood NetworkFandango

LOCATIONS VISITED

Whole FoodsAMC TheaterPorsche Dealership

Insights And Delivery Across

Devices, Formats and Channels

Mobile/ Tablet Display Desktop Display In App Video


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Cathy Boyle

Mobile Advertising: Five Things

You Need to Know Now

The Mobile Attribution Gap: Five Missing Links in Mobile

That Make Attribution Harder

US Ad Spending: eMarketer's Updated Estimates for 2015

Mobile Programmatic Advertising: Grabbing the Vast

Majority of US Display Ad Dollars by 2017

Mobile Messaging Apps: Global User Forecast,

Leaderboard and Outlook on Monetization

eMarketer Webinar: Mobile Advertising—Five Things You Need to Know Now

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Transcript of eMarketer Webinar: Mobile Advertising—Five Things You Need to Know Now