trends in mobile ad tech - yoni argaman, inneractive

Trends in Mobile Ad Tech

Yoni Argaman, VP Marketing and Business Strategy at Inneractive

Mobile Monetization Summit, December 2014

A Glimpse Into the Future

An App-centric Environment

Full Stack, Cross Screen Platforms

Enter Native and Video

The Data Evolution

E-Commerce and Deep Linking

More Sophisticated Pricing Models

An App-centric Environment

An App-centric Environment

Over 55% of all Internet usage in the US is now happening on mobile devices

2014

In-app Mobile Web

14%

86%

2013

In-app Mobile Web

33%

67%

An App-centric Environment

Time Spent on Mobile Breakdown

Mobile Monetization is BrokenBig web publishers have reached the ‘Tipping Point’ this year, but most of their mobile

inventory is mobile web and they are not as good at monetizing it

Mobile First, For RealGoogle, Facebook, Yahoo, Microsoft are re-inventing themselves in mobile with app constellations

An App-centric Environment

From 3 to

5 Screens

An App-centric Environment

Full-Stack, Cross-Screen Platforms

Full-Stack, Cross-Screen Platforms

Full-Stack, Cross-Screen Platforms

The Two Forms of Programmatic

ExchangesOpen Exchanges Private Exchanges/Marketplaces

Programmatic Direct (or Programmatic Guaranteed)

Mobile programmatic

grew by 300%in 2014

Full-Stack, Cross-Screen Platforms

90%

10%

2014

Open Ex Private Mkt

Exchange

TypeBreakdown

70%

30%

2016

Open Ex Private Mkt

Full-Stack, Cross-Screen Platforms

Exchanges vs. Programmatic Direct

58%

92%

42%

8%

20162014

Exchanges Prog Direct

Full-Stack, Cross-Screen Platforms

Enter Native and Video

Enter Native and Video

$6B

$660M

Enter Native and Video

2013 2018

Mobile Video Ad

Spend in the US

70% of agency buyers

and 43% of brands are

buying mobile video

inventory today

Enter Native and Video

Online Video Ad Prog Sales Channels

15%

15%

70%

Open Ex Private Mkt None

Enter Native and Video

2 Levels ofThe

Native

Enter Native and Video

Enter Native and Video

Mobile is now 85% and 66% of Twitter

and Facebook’s revenue, respectively

1.00%

0.15%

Enter Native and Video

Desktop Native vs. Mobile NativeCTRs

A Programmatic World The Two Forms of Programmatic• Exchanges where ads are bought and sold in real time like stocks, mostly via RTB

• Open Exchanges• Private Exchanges/Marketplaces - Exclusive marketplaces that give the publisher the ability, through an

SSP, to designate certain inventory to select buyers based on pre-negotiated terms. PMPs can be executed as RTB buys, or as non-RTB buys

• Programmatic Direct (or Programmatic Guaranteed) Where advertisers reserve premium (or ‘guaranteed’) inventory like the old days, only with better technology for targeted delivery and measurement

Where This Medium is Going • In 2014, mobile programmatic advertising will grow by 300%

• In 2013, approximately 68% of mobile ads were bought programmatically; this number is predicted to rise to 88% by 2017

• In 2014, RTB will account for 92.0% of programmatic ad dollars, or $9.25 billion. Programmatic direct will reach $8.57 billion in spending by 2016 to represent 42.0% of programmatic ad expenditure in the US

• 2014 private marketplaces $900 million (10% of RTB). By 2016, spending on private marketplaces will reach $3.31 billion (10%)

STILL

WITH

ME?

The Data Evolution

The Data Evolution

Ad Tech EconomicsThe Data Evolution

The Data Evolution

‘Premiumization’ Through Targeting

The addition of certain additional mobile parameters - like device ID or lat/long –can increase average eCPMs for mobile inventory anywhere from 2x to 6x

Interest and Intent-based granular audience segments are coming to mobile

The Holy Grail of Advertising – Closed Loop

Provide complete closed loop attribution from impression to online or brick and mortar purchase

Mobile tech ties households to specific devices, track offers and acknowledgements, and integrate

with POS systems and data

E-Commerce and Deep Linking

E-Commerce and Deep Linking

More Sophisticated Pricing Models

More Sophisticated Pricing Models

CPCVCPI

Thanks!