mobile ad effectiveness
TRANSCRIPT
© 2014 eMarketer Inc.
made possible by
Mobile Ad Effectiveness
Cathy Boyle
Senior Analyst, Mobile
August 21, 2014
© 2014 eMarketer Inc.
Agenda
Mobile display ad performance and pricing trends
Effectiveness scorecard: Where mobile display
advertising excels and where it falls short
What it will take to improve mobile ad effectiveness
further
Twitter – #eMwebinar
© 2014 eMarketer Inc.
Performance and Pricing
Trends
© 2014 eMarketer Inc.
Clickthrough rate (CTR) and cost per impression
(CPM) remain mobile’s key efficacy benchmarks
1. Most marketers agree neither metric is perfect nor is
each applicable to every mobile ad campaign
2. Still, tracking CTR and CPM rates over time
provides insight into marketer confidence in a
particular ad format
Source: eMarketer, April 2014
Twitter – #eMwebinar
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The relative strength of mobile ad formats have
not changed significantly in terms of CTRs
0.05% 5.0%Mobile Banners Mobile Rich Media Mobile Video
Spectrum of CTRs
Mobile Social Ads
© 2014 eMarketer Inc.
CTRs for
static mobile
banners have
gone the way
of their
desktop
counterparts:
downward
Desktop Banner CTR Average, 2013: 0.08%
(Sizmek)
© 2014 eMarketer Inc.
CTRs for
mobile rich
media units
have
generally
been above
desktop
norms
Expandable ad units and interstitials were
top performers
© 2014 eMarketer Inc.
CTRs for
mobile
social ads
have been
on par with
mobile rich
media ad
units Facebook’s mobile ads produced a better return
on investment, according to marketers polled in
two surveys. (Cowen, December 2013; RBC Capital,
September 2013)
Twitter – #eMwebinar
© 2014 eMarketer Inc.
In-stream
mobile video
ads generated
the highest
response
rates, with
CTRs up to
4.90%
CTRs of rich media ads with embedded
video were five times those without video.
(Pointroll, 2013) To measure the true impact of
in-stream mobile video ads,
marketers also measure start
rate and completion rate
© 2014 eMarketer Inc.
Mobile display eCPMs—another signal of
campaign performance—have steadily increased
Effective CPM
(eCPM) is a
performance
metric used by
publishers and
advertisers to
understand the
revenue
generated per
1,000 ad
impressions
© 2014 eMarketer Inc.
Mobile display eCPMs—another signal of
campaign performance—have steadily increased
Effective CPM
(eCPM) is a
performance
metric used by
publishers and
advertisers to
understand the
revenue
generated per
1,000 ad
impressions
© 2014 eMarketer Inc.
Mobile CPMs
remain lower
than desktop
CPMs—a
condition
likely to
persist for
some time
© 2014 eMarketer Inc.
An increase in mobile ad spending will not
necessarily result in higher CPMs
Supply will continue to
outweigh demand because
spending on mobile
advertising lags time spent
with mobile devices
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© 2014 eMarketer Inc.
Mobile Advertising
Scorecard
© 2014 eMarketer Inc.
In aggregate,
marketers and
digital ad
experts gave
mobile
advertising a
“B-” grade for
effectiveness
Their effectiveness scores for
TV and desktop advertising
were just slightly better
© 2014 eMarketer Inc.
Marketers
graded 16
aspects of
mobile
advertising
in terms of
effectiveness.
Location-
based ads
received the
highest mark
Most
effective
Least
effective
© 2014 eMarketer Inc.
Location-targeted mobile ads
Effectiveness score: A-
Key Insights:
The combination of location and daypart targeting is proving to be
particularly powerful
Location targeting enables brands to satisfy consumers’ real-time
needs
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Location-based ads are most powerful when the
phone’s ‘use case’ is taken into consideration
“ We see a lot of people that don’t
actually think about a hotel or a car
until they get to where they’re going.
So in that sense location targeting is a
massively good way for us to
reduce friction and say, ‘You don’t
have to search. We’ll find where you
are, we’ll find a property that’s close
to you.’”
—Blake Clark, director of mobile for
Travelocity
© 2014 eMarketer Inc.
Mobile in-stream video ads
Effectiveness score: B+
Key Insights:
Effective but inventory is still scarce, which puts limitations on
campaign scale
Short supply also has an inflationary effect on pricing, so at this point
mobile in-stream video advertising is the domain of bigger brands
The length and style of mobile video ads are also evolving toward
shorter and less polished ads
Twitter – #eMwebinar
© 2014 eMarketer Inc.
JetBlue used video assets and location/device
targeting to engage consumers
For the airline’s “Air on the Side
of Humanity” campaign,
smartphone ads aimed to raise
brand awareness and were
delivered inside a geofence
around public transit centers
during commuting hours
Tablet ads were designed for
deeper engagement and
included a rich media game
and long-form video Source: Mobile Marketer, April 4, 2014
© 2014 eMarketer Inc.
Mobile sponsorship ads:
Effectiveness score: B+
Key Insights:
The form of the sponsorship varies widely depending on the content
environment and the advertiser’s objective
Clear objectives and key performance indicators are needed
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Brand building was the objective of MINI USA’s
mobile sponsorship campaign with UrbanDaddy
“ The [sponsorship] experience was
about brand building, and it
proved very successful for us.
We looked at interactions within the
app, how many people signed up to
be a participant in the ‘MINI Night Out’
program and how many provided
[contact details] to get more
information.”
—Lee Nadler, marketing communications
manager for MINI USA
© 2014 eMarketer Inc.
Hershey sponsored the mobile data needed to
deliver the brand’s mobile video ad in-app
The Hershey’s Scharffen Berger
brand ran mobile banner ads in
the Pandora iPhone app with a
30-second video on the landing
page
Copy on the ad explains the
video is sponsored and does
not consume data from the
user’s phone plan
Source: Mobile Marketer, April 1, 2014
© 2014 eMarketer Inc.
Facebook’s mobile ad formats
Effectiveness score: B+
Key Insight:
The social network’s ads are helping marketers achieve multiple goals, from generating sales to driving app downloads
Twitter – #eMwebinar
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Facebook’s mobile ads are closest to closing the
loop for marketers
“ Facebook is certainly the platform
that’s come the furthest in terms of
helping us understand how our
media is driving the business.
We’re starting to be able to do some
things with Facebook’s mobile ads to
drive omnichannel sales, and
we’re very excited about that.”
—Jennifer Kasper, group vice president,
digital/new media and multicultural marketing
at Macy’s
© 2014 eMarketer Inc.
Result reporting process
Effectiveness score: C+
Key Insights:
The manner in which campaign results are reported for mobile display
ads varies greatly by publisher and ad partner
The disparate nature of reports makes it difficult to aggregate and
interpret campaign results
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Reporting is still in its infancy—a consolidated
view of all results is needed
“ Reporting requires separate plug-ins
and it’s a challenge for
marketers to roll up and
understand all of the results in a
single view.”
—Heidi Browning-Pearson, senior vice
president of strategic systems at Pandora
© 2014 eMarketer Inc.
Measurement and analytics
Effectiveness score: C
Key Insights:
Low scores for measurement and analytics indicate marketers
don’t have a clear vision of mobile’s true impact, especially on foot
traffic and sales in brick-and-mortar locations
Methods for understanding what consumers do immediately after
engaging with a mobile ad need work
Twitter – #eMwebinar
© 2014 eMarketer Inc.
Need to measure more than ad engagement
“ The analytics are there for
engagement and understanding
impressions. But it’s hard to track
[the ad] to a transaction, and that’s
where it falls down.”
—Laura Jakobsen, senior vice president,
marketing and design at Pinkberry
© 2014 eMarketer Inc.
Mobile creative capabilities
Effectiveness score: C
Key Insights:
Creative teams have only scratched the surface when it comes to
leveraging the native capabilities of smartphones and tablets
Creative assets developed for the desktop are often repurposed for
mobile despite widespread agreement that a tailored ad experience
would be more effective
Twitter – #eMwebinar
© 2014 eMarketer Inc.
Brands are beginning to push creative
boundaries and leverage device capabilities
Nivea launched Bluetooth-enabled print ads in Brazil
Sources: Ad Age, June 17, 2014,
BEcause Blog May 22, 2014
© 2014 eMarketer Inc.
What Will Improve Mobile
Ad Effectiveness Further?
© 2014 eMarketer Inc.
Answers to this question revolve around four key
areas:
1. Improved creative: Interactive formats that make use of all
device capabilities and are integrated with the content experience.
2. Data integration: The ability to tie mobile users back into other
data sets that marketers already own needs improvement.
3. Standards: Guidelines for creative development, user tracking and
results reporting across devices need to be more cohesive.
4. Measurement tools: Better analytics and measurement solutions
are needed to gauge return on investment and lifetime value.
Off-the-rack-type tools would be ideal.
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© 2014 eMarketer Inc.
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Cathy Boyle
Mobile Ad Effectiveness
Mobile Advertising Scorecard: Marketers Give Mobile Display a
B-Minus for Effectiveness
Mobile Ad Targeting: After Years of ‘Spray and Pray,’ Signs of
Sophistication Appear
Worldwide Ad Spending: Midyear 2014 Complete Forecast
US Ad Spending: Q2 2014 Forecast and Comparative
Estimates