MOBILEMYTHBUSTERS
Chad Gallagher
“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
THE STATE OF MOBILE MEDIA
WE ARE MOBILE.
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
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
MYTH VS. REALITY MOBILE USAGE
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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0%
2%
4%
6%
8%
10%
12%
Smartphone
Desktop
Tablet
Hour (EST)
% O
f Im
pre
ssio
ns
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
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
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
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%
COOKIESMyth: Conversion tracking is not reliable; cookies do not work in mobile. Reality:
Accepts 3rd Party Cookies
MobileWEB
MobileAPP
95%
5%
70%
30%
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
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.
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.
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
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%
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.
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
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.
Q&A
