chad gallagher of advertising.com - mobile myth busters at sic2013

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MOBILE MYTHBUSTERS Chad Gallagher

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Mobile Myth Busters Mobile advertising is unique and introduces a number of new challenges for digital media professionals. One of the biggest challenges is wading through all the noise and data to separate fact from fiction. This session explores the myths vs. the realities of mobile media. It covers topics ranging from tracking to targeting, including the key players, products, and pricing models in the mobile media landscape.

TRANSCRIPT

Page 1: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

MOBILEMYTHBUSTERS

Chad Gallagher

Page 2: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

“34% OF IN-STORE CUSTOMERS COMPARE PRICES ON MOBILE DEVICES”

“LOCATION-BASED SERVICES CAN PUT BUSINESSES ON THE MAP”

“SHOPKICK BEAMS COUPONS TO YOUR PHONE AS YOU WALK THROUGH THE MALL”

“WHY EVERYONE SHOULD BE SHOPPING ONLINE – WHILE ACTUALLY IN STORES”

“WALMART WANTS COSTUMERS TO USE ITS APPS IN STORES”

“HOW BETTER LOCATION DATA COULD MEAN MORE TARGETED MOBILE ADS”

CONVENTIONAL WISDOM

Page 3: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

THE STATE OF MOBILE MEDIA

Page 4: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

WE ARE MOBILE.

Page 5: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

THE MOBILE ADVERTISING ECOSYSTEM

Advertisers

Publishers

A u di e n

c e

DSPs Ad Exchanges SSPs

HyperLocal

DMP’s and Data Aggregators

App AnalyticsAd Servers

Mobile Video Rich Media

Ad Networks

Mobile Data Providers

Page 6: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

THE YEAR OF MOBILE?

2 HOURS, 19 MINUTES 2 HOURS, 21 MINUTES

2013 Mobile Ad Spend = $8B(5% of total Ad Spend)

Source: eMarketer, July 2013

Page 7: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

MYTH VS. REALITY MOBILE USAGE

Page 8: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

MOBILE USAGE IS ON-THE-GOMyth: Consumers primarily use their mobile devices while commuting.Reality: Consumers are increasingly using their mobile devices at home, replacing desktop as the go-to device for everyday tasks.

25% of all digital time is spent at home & on mobile.

Source: AOL, Cross Platform Research

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12%

Smartphone

Desktop

Tablet

Hour (EST)

% O

f Im

pre

ssio

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Page 9: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

MOBILE AS A UTILITYMyth: Consumers primarily use their mobile devices as a utility.

Reality: Me Time accounts for 46% of all smartphone app and website moments, averaging 864 minutes per month per Arbitron.

MUSIC

SPORTSSOCIAL

GAMES TRAVELFOOD

WEATHER ENTERTAINMENTFINANCE

NEWSSHOPPING

Accomplish11%

Socialize18%

Prepare7%

Self-Express2%

Shop12%

Discover4%

Me TimeSeeking

relaxation, entertainment in order to indulge oneself or pass

the time

Source: AOL, Seven Shades of Mobile

Page 10: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

SMARTPHONE USERSMyth: Millennials spend the most time on smartphones.

Reality: Moms with kids ages 0-5 spend 22% more time on smartphones than Millennials.

AVERAGE TIME SPENT USING APPS/

MOBILE WEBSITES

1660 MINUTES

PER MONTH

Ad effectiveness

MOMSWITH KIDS 0-5

2260

MILLENNIALS18-32

1850

MOMSWITH KIDS 6-12

MOMSWITH

KIDS 13-17

WOMEN25-54

MEN 25-54

1530

1460

1770

1560

22% higher than Millennials

Source: AOL, “Mobile Moms, Mobile First,” Oct 2013

Page 11: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

MOBILE USED FOR RESEARCH

Myth: Consumers use mobile for an immediate response.

Reality: Mobile conversions have a longer lag between exposure and conversion, indicating that mobile users research for longer periods of time.

0%

2%

4%

6%

8%

10%

12%

14%

16%

LAG FOR AN AGGREGATION OF DESKTOP AND MOBILE CAMPAIGNS

Mobile

Desktop

Lag (Hours)

% o

f C

on

ve

rsio

ns

Page 12: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

MCOMMERCEMyth: Customers won’t buy on mobile.

Reality: People do buy on mobile; mobile advertising is going to be an integral part of the future of mCommerce.

RETAIL (ex: Buying a Shirt)

TELECOM (ex: Cell Phone Plan)

37% 35%

AUTOMOBILE (ex: Configure a Car)28%

TRAVEL(ex: Booking a Hotel)

22%

Page 13: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

COOKIESMyth: Conversion tracking is not reliable; cookies do not work in mobile. Reality:

Accepts 3rd Party Cookies

MobileWEB

MobileAPP

95%

5%

70%

30%

Page 14: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

MOBILE INVENTORYMyth: 100 million uniques is an accurate measure of mobile vendor performance.Reality: Most mobile networks only have access to unsold inventory on mobile exchanges.

15%

15%

60%

10%Most mobile networks only have

access to this inventory.

Direct Sales (Class 1)

Direct Sales Non-Reserve (Class 2)

Network/SSP Block Buys

Remnant Inventory

Page 15: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

SESSION DEPTHMyth: All impressions are created equal.

Res

po

nse

Rat

e

Session Depth (Impressions)

Typically Goes to Networks or RTB(Most of the Composition of RTB)

Typically Sold Class 2 or Networks/SSP Block(Sometimes Appears in RTB)

Typically Sold Class 1

(Rarely Appears in RTB)

10 11 12 13 14 15 16 17 18 19 20+4 5 6 7 8 91 2 3

Reality: Low session depth impressions have the highest conversion rates.

Page 16: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

COST PER INSTALL CAMPAIGNSMyth: Cost per Installation (CPI) cost basis is the only effective method to drive app downloads.

Reality: CPI is valuable, but may limit your audience; rely on CPM or CPC first.Be wary of incentivized app installs which display much lower lifetime value.

Page 17: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

CROSS SCREEN TARGETINGMyth: The same user can be reached easily across screens.

Reality: A unique identifier links across screens, and privacy compliant device identifiers are needed to consistently track a single user across channels.

PROBABILISTIC

Educated Guess

IP Address / Fingerprinting

Behavioral Patterns

Scalable

O&O User Logins

3rd Party Publishers

Limited Scale

DETERMINISTICONLINE

MOBILE

Page 18: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

HYPER-LOCAL TARGETINGMyth: Mobile networks can deliver geo-fencing campaigns at scale.

Reality: The value exchange of consumers sharing their location is important and thus limited. Use mobile geo targeting as a strategy, but identify tactics based on capabilities.

of mobile impressions occur on-the-go.25%of mobile impressions contain latitude & longitude for precise accuracy.

<8%

Page 19: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

MOBILE INTERSTITALSMyth: Interstitials are the new pop-up and brands should avoid them.

Reality: Users rarely complain so long as the unit functions properly, loads on time, can clearly be closed, and offers some level of utility.

Page 20: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

CREATIVE BEST PRACTICESMyth: Desktop creative will perform just as well on mobile.

Reality: Advertisers can increase consumer engagement by:• Using four words or fewer.• Using three colors or fewer.• Including a strong call to action and humans.

Tap to Expand CTA

Source: JumpTap Creative eBook 2013

Page 21: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

KEY TAKEAWAYS

The majority of mobile usage is at home during Me Time.

The relationship between a consumer and their device is important for creative execution; use social feeds, video, and images.

Low session depth and exclusive access to premium inventory is a strong indicator of network performance.

Scale, type of inventory, and precision are significant factors in successful execution.

Page 22: Chad Gallagher of Advertising.com - Mobile Myth Busters at SIC2013

Q&A