MOBILEADSERVINGDIRECTORY

CONTENTSIntroduction Agency Opinions on Mobile AdservingPublishers/Networks Position on Mobile AdservingAdservers' Position on Mobile Glossary

INTRODUCTIONIn late 2010, IAB members highlighted there was a lack of transparency around mobile adserving. This was seen as a barrier to brands engaging with mobile marketing - particularly amongst agencies. In response to this, the IAB conducted a survey of agencies, the results of which backed up this feeling up quantitatively. The full results are detailed in this document.

To address the issues raised by the research, IAB Mobile has worked closely with IAB member adservers, publishers and agencies to create an Adserving Directory that reveals the current status of third party mobile adserving in the UK. The industry has agreed to share their individual current stance on third party mobile adserving. This has been published on the IAB website.

In collating and publishing this information, the IAB hopes to reduce the perceived barriers around third party mobile adserving and help push the mobile advertising industry forward. In order to keep the information up to date, IAB Mobile will repeat the industry survey in six months’ time, whilst the Adserving Directory will be updated continuously as the proficiencies of publishers and adservers continue to evolve.

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AGENCY OPINIONS ON MOBILE ADSERVINGTo better understand the impact of mobile adserving on mobile marketing, at the end of 2010 the IAB surveyed 24 leading mobile experts from media and mobile specialist agencies. The data shows the impor-tance that agencies place on third party mobile adserving, and why they think it has been a barrier in the past.

Looking at Figure 1, we can see that the majority of agencies are not using third party adserving for their mobile internet campaigns - with the majority of agencies saying 5% or less of their mobile campaigns have been third party adserved.

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Mobile ad tracking however, is something that agencies appear to be finding easier to engage with. Some 42% of agencies say that 6% or more of their mobile campaigns are third party ad tracked (Figure 2).

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FIGURE 1: WHAT PERCENTAGE OF MOBILE BUDGET SPENT BY YOUR AGENCY IN THE LAST SIX MONTHS HAS

BEEN THIRD PARTY ADSERVED?

FIGURE 2: WHAT PERCENTAGE OF MOBILE BUDGET SPENT BY YOUR AGENCY IN THE LAST SIX MONTHS HAS

BEEN THIRD PARTY AD TRACKING?

When we asked agencies what overall percentage of digital budget has been spent on mobile campaigns in the last six months, there was a quite clear split between the mobile specialists and media agency response. For the majority of media agencies, the percentage of digital budget going to mobile tended to be 5% or less, whereas of course for the specialists it was nearer 100% (Figure 3)

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However, when the agencies were asked to estimate the same proportions for mobile in a world where mobile third party adserving was as readily available as online, the emphasis agencies put on mobile adserv-ing becomes clear. Looking at Figure 4, we can see that only 20% of agencies think that mobile would be less than 5% of digital spend with mobile adserving in place - compared to the 55% it is in Figure 1. In sum-mary, agencies are telling us that if they had as ready access to third party adserving in mobile as they do in online, they would spend more in mobile.

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FIGURE 3: WHAT PERCENTAGE OF DIGITAL BUDGETSPENT BY YOUR AGENCY IN THE LAST SIX MONTHS

HAS BEEN ON MOBLE CAMPAIGNS?

FIGURE 4: IF MOBILE THIRD PARTY ADSERVING WAS AS READILY AVAILABLE AS ONLINE, WHAT PERCENTAGE OF DIGITAL

BUDGET SPENT BY YOUR AGENCY WOULD YOU ESTIMATE MOBILE COULD HAVE BEEN IN THE LAST SIX MONTHS?

Third party mobile adserving is considered to be quite or very important amongst 95% agencies for both direct response campaigns and branding campaigns (Figure 5). Perhaps not surprisingly, it is for direct response campaigns that agencies feel it is especially important - 75% agreed third party mobile adserving is very important for direct response advertising.

Very important Quite important Unimportant

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Overall, there is a perception amongst agencies that mobile adserving is not as readily available on mobile as it is online - and 94% think that a lack of it is damaging to the mobile advertising industry (Figure 6). Importantly though, 88% of respondents have a good understanding of why there are issues such as larger discrepancies.

Lack of mobile 3rd party adserving is damaging the mobile advertising industry

I understand why discrepancies in mobile are so much larger than they are online

Mobile 3rd party ad tracking is more important than mobile 3rd party adserving

If mobile 3rd party adserving was readily available, I would invest more budget into mobile advertising

It is important that mobile 3rd party adserving is exactly like online 3rd party adserving

Mobile 3rd party adserving is a priority internally in my company

Clients are actively demanding mobile 3rd party adserving

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Strongly agree Agree

FIGURE 5: HOW IMPORTANT DO YOU THINK THIRD PARTY ADSERVING IS FOR THE TWO DIFFERENT TYPES OF

MOBILE CAMPAIGNS?

FIGURE 6:

When asked why they feel third party mobile adserving has been slow to move forward in the UK, the agen-cies opinion forms into three general areas - technical issues, a lack of demand for mobile advertising (up to now) and reluctance amongst media owners to invest in the technology (Figure 7).

“Unwillingness from the media owners to integrate”

“Media ownerhesitation.”“Big investment on

the media owner side in ad serving technology.”

“Lack of willpublishers.”

“Relatively low demand - now real incentive at this stage for 3rd party online ad-servers to expand into mobile.”

“Large brands and network agencies are starting to spend large budgets. This calls for more accountablity.”

“Mobile is still seen as a very new media and, whilst people expect a lot from it, they understand when it's not possible and so don't push to get it.”

LACK OF DEMAND“Latency issues with mobile operators...their demands are exact and difficult to meet.”

“Because it is a lot more difficult when compared to PC.”

TECHNICAL

MEDIA OWNERS

However, there is a split in agency opinion about the next steps for mobile adserving. From figure 8, we can see that some agency experts think mobile third party adserving is absolutely vital to mobile marketing’s growth. On the other hand, there are a number of experts who suggest that tracking is a good enough solution and that agencies are sometimes "hiding behind the adserving issue".

For me the whole 3rd party ad-serving issue us just an excuse for people to hide behind. There are already a range of products that exist in the market that work perfectly well for publishers, and could work perfectly for agencies. If this is a real problem, ad-tracking would be enough.

3rd party ad serving is seen as the solution here as that is how things are done online. there are other solutions for tracking a campaign and so we should explore all of the options.

Publishers need to address this ASAP. …It's not good enough at the moment and we need to promote the channel as transparent and progressive...

Absolutely critical if mobile is to grow considerably over the next 12 months

all campaigns should be tracked by 3rd party ad tracking

Third party mobile adserving is clearly an issue that agencies feel strongly about. Even though they are not always in agreement on every issue, it is clear it is universally seen as an important issue that the industry needs to be more transparent on.

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FIGURE 7:

FIGURE 8:

PUBLISHER/NETWORK POSITION ON MOBILE ADSERVING

Can you do mobile 3rd party adserved campaigns on your site/network in the UK?

Which mobile ad formats can currently be 3rd party adservedon your site/network in the UK?

Can you do mobile 3rd party adtracked campaigns on your site or network in the UK?

Which mobile ad formats can currently be 3rd party adtracked on your site/network in the UK?

Which mobile ad trackingcompanies have you worked with todeliver these campaigns in the UK?

All formats Doubleclick

But in the next 6-12 months Standard banners But in the next 6-12 months

No plans Standard banners Some formats Standard banners

Some formats

Some formats Standard banners

All formats

,rennab egami slexip 05x003216x36 pixels image banner, 168x28 pixels

image banner and 120x20 pixels image banner All formats Standard banners, expandable banners MADS

All formats All formats Standard banners and text links Eyeblaster, Doubleclick and Mediaplex

Some formats Standard banners But in the next 6-12 months

But in the next 0-3 months But in the next 0-3 months Standard banners and expandable banners Point Roll and Ringleader

All formats All formats All formats All formats Atlas and Doubleclick

Some formatsStandard banners,

location aware display banners Some formats Standard banners Dart and Snoobi

But in the next 6-12 months But in the next 6-12 months

But in the next 3-6 months But in the next 3-6 months

Some formats Pre-roll Some formats Doubleclick

All formats Standard banners Some formats Standard banners, expandable banners Doubleclick

All formats Standard and YOC Expandables All formats Standard

Some formats Standard banners

But in the next 6-12 months Via Yoc

Some formats Standard banners But in the next 0-3 months Standard banners

Some formats Standard bannersCertain publishers

(that don't block 1x1 pixels)

Some formatsStandard Banners, expandable banners,

click to call, banners features on homepage Some formatsStandard banners, expandable

banners and text links icons

Some formats All formats All formats All formats

All formatsStandard banners, expandable,

interactive expandable and interstitial All formatsStandard banners, expandable, interactive,

expandable and interstitial Doubleclick

Some formats

Some formats Standard and rich media banners Eyeblaster, Doubleclick and Mediamind

All formats Standard and expandable formats Some formats Standard and expandable formats DoubleClick, Flashtalking and Mediamind

IAB member publishers and networks have agreed to share their individual current stance on third party mobile adserving, which can be seen in the below table. This table is designed as a tool for media buyers to see quickly and easily the current capabilities of the participating publishers and networks with regards to third party adserving and tracking, and which adformats this applies to. Alongside this, we have also collected their opinions towards third party mobile adserving in the UK which is detailed as below.

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Mirroring the answers of the agencies, the majority (69%) of publishers have run less than 20 third party adserved campaigns in the UK (Figure 9).

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The range of discrepancies that publishers are seeing on the third party adserved campaigns that they are running in the UK is anything from 2.5% to 25% (Figure 10). However, the average discrepancy figure amongst the publishers and networks that submitted this information was 10.5%, which matches up well with the average discrepancy reported by the adservers of 11% (Figure 14).

10.5%

2.5% 25%

AVERAGE DISCREPANCY

RANGE OF DISCREPANCIES

Figure 10 shows the publisher and network views on the same attitudinal questions as the agencies (see Figure 6) and adservers (see figure 14). The publisher/network group are less likely to agree with all of the questions, and perceive third party adserving as much less of an important issue compared to both agencies and publisher. Only 37% agree that the lack of third party adserving is damaging to the mobile advertising industry, compared to 94% of agencies and 100% of adservers. However, this is something that the majority of publishers/networks are addressing, as 60% agree that third party adserving is a priority internally in their company.

NUMBER OF ADSERVED CAMPAIGNS - PUBLISHERS

TO

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FIGURE 9:

FIGURE 10:

It is important that mobile third party adserving is exactlylike online third party adserving

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Lack of mobile third party adserving is damagingthe mobile advertising industry

Mobile third party ad tracking is more importantthan mobile third party adserving

Clients are actively damaging mobilethird party adserving

I understand why discrepancies in mobileare so much larger than they are online

Mobile third party adserving is priority internallyin my company

Publishers

Feedback from publishers and networks as to why third party mobile adserving has been slow to move forward in the UK falls into three main areas. Firstly, publishers/networks claim that not enough has been done specifically on mobile and in the UK by the adservers, though as can be seen in figure 14 the adservers feel much the same way about the publishers and networks. Secondly, publishers argue that we are in a vicious cycle, with all the players involved waiting for the other to make the first move. Lastly, publishers are saying that there hasn’t been enough demand (to now) - but there is also a feeling this might be changing and that agencies need to shout louder for it.

“There must be demand from the agencies, and consistent standards…This presents a challenge for publishers in terms of choosing how to invest

The media buyers haven't been shouting loud enough for it

“Both sides of the equation are in a staring contest. Advertisers say they want it, but will not put significant budget behind making it viable for publishers to put resource against implementing it.”

VICIOUS CIRCLE

“It feels like the advertisers are trying to force on-line technology into mobile even though it’s not the best solution. Therefore, 3rd party ad serving is here already and as an industry we need to educate the advertisers that 3rd Party ad serving doesn’t just mean [the servers they use online].”

“Still US centric..... reaching out to EU ad network is not a priority”

ADSERVERS

“Mobile ad revenue may not have been sufficient to necessitate additional spend on a 3rd party mobile adserving solution.”

“Lack of customer demand and technical resource needed to test and bridge discrepancies”

LACK OF DEMAND

“Not enough resource allocated to this by the tech suppliers.”

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FIGURE 12:

FIGURE 11:

Please can you indicate your company's current status with each of the below mobile products. Which of the below data is included in mobile campaign reports produced by your company?

Number of 3rd party adserved run in the last 6 months

Number of 3rd party ad trackedcampaigns in the last 6 months

Publishers/networks integrated with

Maximum potential reach (UV’s)

3rd party mobile adserving

3rd party mobile ad tracking

3rd party mobile adserving for richmedia

Mobile demographic targeting

Mobile behavioural targeting

Mobile location based targeting

Mobile contextual targeting

Mobile frequency capping

Mobile time/date targeting

Mobile reporting that is integrated with online reporting

Combined targeting across mobile and online

Mobile HTML5 advertising

Impressions Ad duration Engagement Clicks Action % Ads not shown

+

20m 51-60 21-30

Emap SkyRBI

20m 100 100

20m 40 50

20m

Through technology partnership

Through technology partnership

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months

Through technology partnership

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Ringleader

14m 5 5

We are launchingin Q1 2011 and will be a multi advertiser network

20m

But offer abroad

100 100

Orange UK, Unanimis,Madvertise, Mob clix and all linked partners/networks. Apple iAds(Quattro), DoubleClick and Millenial

But in the next 6

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But in the next 6

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But in the next 6

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But in the next 6

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But in the next 6

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Through technology partnership

But in the next 6

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But in the next 6

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But in the next 6

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But in the next 6

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Admob, GoogleDisplay Network,Ad2one, BBC,The Telegraph,AccelerationMedia, NewsInternationaland FT.com

Admob, Adphonic,Amobee, Appealing,Buongiorno,Buzzcity, Citywire,Google DFP APP,Google DFP WAP,iAd, Inmobi, MADS,Millenial, Mojiva,MSN EMEA, Nexage,O2, Sky, Smaato, Smart Ad Server,Unanimous, V1 Velti, Yahoo UK and YOC

ADSERVERS' POSITION ON MOBILEIAB member adservers have agreed to share their individual current capabilities on mobile adserving in the UK, which can be seen in the below table. This table is designed as a tool for media buyers to see quickly and easily the current abilities of the participating adservers with regards to mobile adserving and tracking, reporting capabilities, and partners they are working with. Alongside this, we have also collected their opinions on third party mobile adserving in the UK which is detailed as below.

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The adserver opinions on mobile adserving (Figure 16) mirror comments made by both agencies and publishers/networks - that the industry is still relatively immature, causing barriers to the implementation.

“Many publisher, network and mobile adserving partners do not share a 360 degree vision to it's role in driving the industry forward through uptake by media agencies - Hence, mobile remains the preserve of the media owners on a one-on-one basis with each advertiser.”

“Due to the immaturity of mobile advertising in compari-son to digital.”

The three sides of the industry. Though in some areas they do have differing opinions - are united in saying that the lack of clarity and understanding of mobile third party adserving is holding the mobile advertising industry back. The aim of this report is to provide all parts of the chain - but in particular media buyers - with a resource to understand what they can expect from adserving on mobile and where they can do it. In collating and publishing this information, the IAB hopes to reduce the perceived barriers around third party mobile adserving and help push the mobile advertising industry forward. In order to keep the information up to date, IAB Mobile will repeat the industry survey in six months’ time, whilst the Adserving Directory will be updated continuously as the proficiencies of publishers and adservers continue to evolve.

In the meantime, any questions should be directed to alex@iabuk.net

100milliseconds

UNDER

AVERAGE DELIVERY TIME

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FIGURE 13:

FIGURE 14:

THIRD PARTY ADSERVINGThird party ad serving is the technology used to deliver creative assets from one adserver into another adserver, allow advertisers to track the performance of the campaigns and recording impressions and clicks amongst other campaign metrics.

AD TRACKINGIs the method for recording campaign delivery metrics between adservers. Third party adserv-ing tags or 1x1 tracking pixels (see below) are commonly used to facilitate the capturing of such data.

1x1 PIXELA small image tag (one pixel wide and one pixel high) which is deployed alongside an advertis-ing campaign to record the number of impressions served. Commonly used when third party adserving is not compatible.

CLICK TRACKING URLAlso known as click through URL or click command. This is used to record the number clicks delivered on an advertising banner. Commonly used when third party adserving is not compat-ible and run alongside the 1x1 tracking pixel.

DISCREPANCYThe difference in campaign reporting numbers for key measurements such as impressions and clicks between multiple adservers.

AD NETWORKA company that provides sales representation for multiple independent websites by aggregat-ing the ad inventory and selling ads across multiple sites.

LATENCY TIMEThe time delay it takes for the advertising to load on a page.

CLICK THROUGH RATE (CTR)Frequency of click-throughs as a percentage of impressions served. Used as a measure of advertising effectiveness.

AD IMPRESSIONAn advertisement impression transpires each time a consumer is exposed to an advertisement (either appended to an SMS or MMS message, on mobile web (WAP) page, within a video clip, or related media).

GLOSSARY

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+44 (0)20 7050 6969www.iabuk.net/mobile