evolution in mobile advertising - targeting, creative & media buying
DESCRIPTION
Download the accompanying ebook here: http://info.nanigans.com/driving_forces_of_change_in_mobile_advertising In less than a year’s time, Facebook became the market leader in mobile display advertising, outpacing giants like Google and Apple to control approximately 25% of all mobile display ad revenues. What represented 0% of Facebook’s ad revenues a year ago is on track to be a billion dollar business this year in the United States alone. Why exactly have mobile ad dollars moved so quickly to Facebook? The answer is simple: Facebook and Preferred Marketing Developers like Nanigans are solving very real challenges on behalf of mobile marketers – challenges that center on the three core pillars of any successful advertising campaign: 1. Targeting 2. Creative 3. Media buying Combined, these driving forces of innovation have resulted in advertisers achieving 15-20 times higher clickthrough rates on Facebook mobile as compared to desktop and, most important, are revealing the true ROI of mobile ad investments. **This presentation was given at the Massachusetts Innovation Technology Exchange's Demystifying Mobile Marketing event held on May 2, 2013 at the Federal Reserve Bank of Boston.TRANSCRIPT
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Cheryl Morris | Director of Marketing | @cheryllmorris
Evolution in mobile advertising –
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#1 in less than a year –
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#1 in less than a year –
$1billion
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$200,000,000
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“The year of mobile” – a slow pace of innovation
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Facebook in mobile – not 5 years
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Facebook in mobile – moving fast
14% of FB’s ad
revenues
23% of FB’s ad
revenues
30% of FB’s ad revenues
2012 2013
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Facebook in mobile – solving real challenges
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Targeting and creative – success from desktop shifts to mobile
15-20X higher CTRs
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A second evolution – how we buy customers
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ROI – measuring and buying media based on it
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driving forces of change in mobile…
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1. TARGETING
2. CREATIVE
3. MEDIA BUYING
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1. TARGETING
2. CREATIVE
3. MEDIA BUYING
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750 million people
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750 million people – with identities
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Unprecedented targeting – Facebook
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Lack of identity – targeting attributes are non-personal or inferred
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“Spray and pray” – buy blindly and opportunistically
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Unprecedented targeting – the alternative
Device
• Type• OS version• Wi-fi connectivity
Behavior
• Actions taken with sites and apps
• Offline purchase behavior
CRM
• Customers from your CRM database matched to Facebook profiles
• Friends of your fans/users
Demographics
• Age• Gender• Location
Affinities
• Likes• Interests• Conversations
Social
• Relationship status• Education level,
college, major• Employer, position
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Unprecedented targeting – from affinities to your CRM
Device
• Type• OS version• Wi-fi connectivity
Behavior
• Actions taken with sites and apps
• Offline purchase behavior
CRM
• Customers from your CRM database matched to Facebook profiles
• Friends of your fans/users
Demographics
• Age• Gender• Language• Location
Affinities
• Likes• Interests• Conversations
Social
• Relationship status• Education level,
college, major• Employer, position
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Custom audiences – define customers to remarket and expand to look-alikes
Your CRM Remarket
MATCH
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1. TARGETING
2. CREATIVE
3. MEDIA BUYING
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Banner ads – tiny, ugly, intrusive
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Facebook mobile ads – huge ads
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Facebook mobile ads – huge ads, acts like content
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Facebook mobile ads – huge ads, acts like content, designed to drive behavior
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Page post ads – consistency across channels
20-50XhigherCTRs than RHS
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Mobile app install ads – fueling app discovery and distribution
1% CTR
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1. TARGETING
2. CREATIVE
3. MEDIA BUYING
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Cost Per Impression – CPM
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Cost Per Click – CPC
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Cost Per Action – CPA
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views mobile
ad
installs app /
registers
continues to purchase
over time
clicks mobile
ad
makes first
purchase
Downstream behavior – after the action
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views mobile
ad
installs app /
registers
continues to purchase
over time
clicks mobile
ad
makes first
purchase
Downstream behavior – after the action
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Understanding ROI – return on ad spend
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how much it costs to acquire a customer
how much you earn off that customer
how much greater your LTV is than your CPA
CPA
LTV
ROI
Understanding ROI – return on ad spend
LTV
ROI
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how much it costs to acquire a customer
how much you earn off that customer
how much greater your LTV is than your CPA
CPA
LTV
ROI
Understanding ROI – return on ad spend
ROI
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Understanding ROI – return on ad spend
how much it costs to acquire a customer
how much you earn off that customer
how much greater your LTV is than your CPA
CPA
LTV
ROI
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Pitfalls of CPA – an example
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Pitfalls of CPA – an example
$10 CPA
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Pitfalls of CPA – an example
$10
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Pitfalls of CPA – an example
$10
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$10 $9
$12
Pitfalls of CPA – an example
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CPA LTV ROI
$9 $10 11%
$12 $50 317%
33% 400% 28XIncrease
Pitfalls of CPA – an example
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CPA LTV ROI
$9 $10 11%
$12 $50 317%
33% 400% 28XIncrease
Pitfalls of CPA – an example
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CPA LTV ROI
$9 $10 11%
$12 $50 317%
33% 400% 28XIncrease
Pitfalls of CPA – an example
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and it gets worse…
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Audience CPA Network’s Margin
Steve $9 $1
Broke Brian $7 $3
Debtor Dan $5 $5
CPA – “Customer Permitted Arbitrage”
$10
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CPA – buying Likes
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DEADLY SINS OF CPA BASED BUYING7
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1. Results in opportunistic buying
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2. Encourages arbitrage models
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3. Discourages buying high value audiences...
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… and encourages buying low value audiences
3. Discourages buying high value audiences...
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4. Values all customers equal
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5. Limits campaign scale
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6. No price elasticity
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7. Overpay for cheap audiences
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How should we buy to avoid all these pitfalls?
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ROI MOBILE
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4.5M
Fast growing retailer on desktop – longitudinal impact
total member
base
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38%4.5M
Fast growing retailer on desktop – longitudinal impact
total member
base
acquired from
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38% 400%4.5M
Fast growing retailer on desktop – longitudinal impact
total member
base
more valuable customers acquired
with ROI
acquired from
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Top mobile app developer – results
Nanigans
Mobile ad _x000d_networks
74%
49%
Optimizing for ROI – 51% Higher ROI
(CPA)
(ROI)
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49% ROI
7 days after engaging with ads
Top mobile app developer – goal
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49% ROI
performance on other mobile ad networks
Top mobile app developer – goal
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20+
Top mobile app developer – strategy
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49% ROI
in half the time!
Top mobile app developer – results
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Top mobile app developer – results
92% ROI
breaking even on ad
spend
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CPA by definition means you’re not buying for ROI !
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1. TARGETING
2. CREATIVE
3. MEDIA BUYING
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Targeting –
no longer inferred or non-personal
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Targeting –
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Creative –
no longer tiny banner ads
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Creative –
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Media buying –
no longer based on proxy metrics
like CPA
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Media buying –
Nanigans_x000d_(ROI)
Mobile ad _x000d_networks_x000d_(CPA)
74%
49%
ROI Based Buying – 51% Higher ROI
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“Today, there’s no argument – Facebook is a mobile company.”