the $1 million cpm: will apple’s iad change the mobile market forever?
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The $1 Million CPM:Will Apple’s iAd Change the Mobile Market Forever?
Noah ElkinSenior Analyst
eMarketer
iAdsAn agency perspective
Brett BarashVice President, Account Director
BBDO
eMarketer - A business information service unlike any other
• Founded in 1996, eMarketer provides unbiased research and trend analysis on digital marketing and media
• Approach & Expertise– We aggregate, filter, organize and analyze data from more
than 4,000 global sources– Analysts put the data into context covering all aspects of
the market, with overviews and insights that can’t be found anywhere else
2010 was a watershed year for mobile
Nov. 2009 Jan. 4, 2010
Jan. 5, 2010
Jan. 27, 2010 April 2010
Mobile ad spending is going UP!
What a difference a year makes
2009 2010 2011 2012 2013 2014$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000 Sept. 2009 Forecast Sept. 2010 Forecast
Source: eMarketer, 9/2010
Focus of mobile advertising is shifting
Source: eMarketer, 9/2010
Apple has played the role of catalyst for mobile advertising
• The “iAd effect” has produced the following key results:
– Benefited the entire mobile ad space by generating awareness and excitement about mobile advertising, particularly interactive rich media
– Reinforced the effectiveness of mobile as a branding medium
iAd is also having an impact on spending
Source: IDC, 9/2010
Success comes despite setbacks
Richer ads units are driving spending growth
CAGR, 2009-2014 (in %)
Video 74%
Total Display 60%
Search 59%
Banners and Rich Media
58%
Messaging 21%
TOTAL 44%
The iPhone audience: exclusivity vs. reach
• Small audience: ~16.5 million US iPhone users– Represents approx. 30% of US smartphone
population (Nielsen, Aug. 2010)• Active audience: iPhone users generate 50-
60% of all monthly smartphone ad impressions on networks such as Millennial Media and AdMob
• Wild card: Verizon iPhone
Has iAd changed the mobile market forever?
Yes.
Thank you
Noah ElkinSenior AnalystEmail: nelkin@emarketer.comTwitter: @noahelkinBlog: emarketer.com/blog/index.php/author/nelkinPhone: (212) 763-6055
iAdsAn agency perspective
Brett BarashVice President, Account Director
BBDO
Existing Live iAds
Why AT&T?
• First to market• Innovative, Rich Mobile Experiences• Partnership (AT&T and Apple)• Targeting Capabilities• Competitive Exclusivity
Challenges
• Reach – Limited to iPhone and iPod Touch• Creative control• Reporting and Benchmarks• Message Strategy
Add A Line / Smartphone Data
Introduction ofU-verse TV
Thank you
Brett BarashVice President, Account DirectorBBDOEmail: brett.barash@bbdo.comTwitter: @brettbarash
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