mobile marketers almanac 2015

7/26/2019 Mobile Marketers Almanac 2015

1/12

THE

ORIGINAL

CHAN

GO

ALMANAC,FOUNDED

IN

2015

ALSO

FEATURING

ASTRONOMICAL

MOBILE

TARGE

TING

FACTS

P H O N E S , P H A B L E T S , & T A B L E T S


2/12

IT'S THAT TIME OF YEAR AGAIN,

when industry outlooks plow into the news and marketers make

their plans for the year to come. As those plans are sure to include

mobile, and mobile is something we know well, we thought we'd

do our part to help marketers sow the seeds of their mobile media

strategies for 2015 and beyond.

We surveyed more than 500 brand and agency marketers to take

mobile marketing's temperature. In the spirit of the Old Farmer's

Almanac - the much-loved periodical that Franklin D. Roosevelt

once called "an invaluable friend" - we've compiled our results in a

Mobile Marketer's Almanac. Complete with predictions and

industry stats, the Mobile Marketer's Almanac is all the reference

guide you'll need to foretell the near future of mobile.

page 1


3/12

1 in 4 marketers believe that more than 50 percent oftheir site traffic will be driven by mobile in the next year.

Just as farmers of old abandoned clunky equipment for more

modern technology, consumers are now spending more time on their

mobile devices than on their desktops. Mobile screens are growing

larger, and the arrival of such devices as the iPhone 6 Plus, Samsung

Galaxy Note 3, and Nokia Lumia are creating even more

opportunities for mobile users to leave their desktops behind.

Most brands we surveyed report they're currently receiving 20 percent

more traffic from mobile devices than from desktops, with some

seeing up to 40 percent. Agencies expect that their clients' mobile

visits will increase to 40 or 50 percent of their overall traffic within the

next 18 months, while brands put that number at over 50 percent.

Overall, 1 in 4 marketers believe that more than 50 percent of their

site traffic will be driven by mobile in the year and a half to come.

THE MOBILE MARKETINGCLIMATE IN2015

page 2


4/12

FORECAST: Spending on mobile ad programmaticis expected to reach $10 billion by 2018.

Mobile ad revenue is also growing to new heights.

According to BI Intelligence, US mobile ad spending will

reach $42 billion in 2018. This will represent 43 percent ofUS mobile display ad revenue within the next four years,

compared with just 6 percent in 2013. In fact, you can

expect spending on mobile ad programmatic to reach $10

billion by 2018, nearly $7 billion of which is expected to

come from RTB.

LONG-RANGE FORECAST

page 3


5/12

SEASONS: Brands spend less on mobile than agenciesbut that's likely to change.

When we asked our agency and marketer survey respondents

what they're spending on mobile, however, we found that they

aren't going all-in just yet. Nearly 80 percent said they spent 30

percent of their marketing budget or less on mobile this year,

including smartphones, tablets, the mobile web, and apps.

One in 4 are currently spending between 30 and 40 percent,

while 1 in 7 is spending more than 40.

We also found that brands are prone to spending less on

mobile than their agencies, though that is likely to change. A

new season of mobile usage is upon us, and if marketers hope

to connect with consumers they'll have to fully embrace mobile

and modify their spending strategies accordingly.

A NEW SEASON OF SPENDING

page 4


6/12

CULTIVATE: 86 percent of brands and agencies alreadyhave a mobile-optimized site.

As you might expect, advertisers are shifting their marketing

tactics beyond just advertising to better align with how consumers

are spending their time. This year countless brands e-commerce

retailers in particular came around to the importance of mobile,

optimizing their sites and adding responsive design or mobile

apps. Of our respondents, 86 percent said they already have a

mobile-optimized site, and those who don't have begun to build

one. Seventy-six percent have a mobile app presence, while 60

percent plan to launch one in the future.

Interestingly, brands are more reluctant to welcome mobile apps,

with 28 percent admitting they don't have any plans at all to add

one to their content roster. Still, the next 18 months will see

brands continue to invest in a mobile-first marketing strategy.

EQUIP YOUR BRAND TOCULTIVATE NEW LAND

page 5


7/12

HARVEST: More than half of marketers and agenciesexpect an increase in mobile conversions over the

next 18 months.

Despite the shift from desktop to mobile, we have found that

conversion rates are still higher on desktops. The marketers

we surveyed foresee a sharp rise in mobile conversions overthe next 18 months, with 52 percent expecting a conversion

rates to be 10 percent or better, and 16 percent predicting

rates of more than 25 percent.

This means it's time for a truly omnichannel strategy. Based

on our research, we recommend tying mobile and desktop

ads and events to better track results.

HARVESTING MOBILECONVERSIONS THROUGH

CROSSDEVICE MEASUREMENT

page 6


8/12

WEATHER: Cross device attributionwill need to scale.

Marketers are still struggling with how to accurately measure

mobile campaigns. Given the fragmented media environment

and the lack of a universal approach to tracking ads, expect

marketers to demand a cross-device attribution models.

Agencies and brands can cope by building mobile ads with

easily-tracked engagements and location-based campaigns, but

measurement is still holding them back.

Attribution across cross-device campaigns needs some scale.

Companies like Facebook, Google, Twitter and Apple are

among a few that have a vast amount of cross-device data andthey have an opportunity to take on the challenge. Currently,

Facebook is leading the way with its new cross-device

measurement and reporting tool and push for a "true

multitouch attribution system. This means that a spur of

acquisitions looms on the horizon, as many startups in 2014

came out with piecemeal mobile attribution solutions and are

ripe for picking. The outlook for more accurate mobile ad

measurement looks sunny.

page 7

WEATHERING THE MOBILE AD

ATTRIBUTION STORM


9/12

WEATHER PATTERNS: Retailers need to optimize for both

mobile and tablet experiences.

Weather patterns can be unpredictable, as Old Farmer's Almanac

readers well know. It turns out the same can be said of device bias.

Among our survey respondents, agencies had a more positive

perception of tablets for their ability to drive sites visits and

conversions. Brands thought the opposite, crediting tablets with

generating higher conversion rates.

Forrester Research had this to say on the subject: "The vast majority

of retailers reported conversion rates on smartphones were around 1

percent, while conversion rates for tablets were 2.4 percent. Clearly,

smartphones are much lower in terms of conversion rates than

tablets." But Forrester added, "If you dont optimize for both the

mobile and tablet experience, you will face a challenge."

Source: Forrester Research page 8

LOOKING AHEAD:SMARTPHONE,TABLET,OR BOTH?


10/12

PROGNOSIS: More mobile cowbell.

Along with video, programmatic mobile ad spending will see

big gains moving forward, with more money allocated to

mobile and video through RTB than to desktop by 2017. Still,

The industry is constantly making improvements to targeting,

targeting, re-targeting, and cross-platform alignment in order to

meet such projections.

page 9

A MOBILE PROGRAMMATICPROGNOSIS


11/12

How will marketers measure their success in the 18

months that lie ahead? Most agencies told us that driving

mobile site visits is what matters most, followed by

branding, retargeting, and location-based targeting. Brands

see things a little differently, placing retargeting, branding,

driving mobile traffic, and cross-device targeting at the topof their list.

It's a multi-channel world out there, and while everyone is

looking to chart growth, there are always unknowns.

Here's hoping this guide will help to arm you as you head

out on uneven mobile terrain.

page 10

GOALS FOR GROWTH


12/12

From October 6th to October 13th 2014, we conducted a 35-question online survey. In

total more than 514 respondents from multiple industries in the US, Canada and UKcompleted the survey. Respondents included marketers from both agencies and brands.

LEARN MORE AT

CHANGO.COM/RESOURCES

OR CALL1-800-385-0607

Chango is a programmatic advertising company,purpose-built for the marketer. The company uses

exclusive intent data and technology to create

relevant, timely advertising campaigns, and produce

rich customer insights. The companys unique

live-profile technology makes intent data available

faster than anyone else to help clients efficiently

build brand awareness, acquire new customers and

retarget site visitors. Chango works with more than

60 of Fortune 500 marketers and companies such

as eBay, Sears, Clorox, Sprint and Toyota.

mobile marketers almanac 2015

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