mobile advertising research trends and insights

7/31/2019 Mobile Advertising Research Trends and Insights

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Maximizing Mobile Advertising Performance

Tiny Screen

Huge Results

MOBILE RESEARCH
http://twitter.com/home/?status=RT:+@MediaMind+Great+read+by+@MediaMind%E2%80%93Mobile+Advertising,+%E2%80%9CTiny+Screen,+Huge+Results.%E2%80%9D+http://bit.ly/MM_Mobile_Advertising_2011_SocialNetworkhttp://twitter.com/home/?status=RT:+@MediaMind+Great+read+by+@MediaMind%E2%80%93Mobile+Advertising,+%E2%80%9CTiny+Screen,+Huge+Results.%E2%80%9D+http://bit.ly/MM_Mobile_Advertising_2011_SocialNetwork


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TINY SCREENHUGE RESULTSM A X I M I Z I N G M O B I L E A D V E R T I S I N G P E R F O R M A N C E

0.37%iOS

The big Apple

Apples iOS has

double the stand-

ard banner CTR

performance of

Android OS

Apple Android

0.14%Palm OS

0.09%BlackBerry OS

0.07%

Doubling inthree yearseMarketer expects mobile

ad spending to double

from 2011 to 2014

$7432010$416

2009

$15012012

$11022011

$20372013

$25502014

Mobile standard banner Standard banner

0.61%

More clicksthan your PCMobile standard

banners get nine

times the CTR of

browser banners

0.07%

and RetailEntertainment

standoutNearly all verti-

cals outperform

browser banners.

CTR

1.04%

ElectronicsEntertainment Retail

0.84%

Financial

0.73%

Travel

0.58 %

News/ Media

0.47% 0.19%

The busyBlackBerry

Business orientedBlackBerry users

are less likely to

click on ads

0.40%

0.20%

0.00%

CTR

Click through rate Served impressions

Apple HTCMotorola BlackBerryLG VerizonSamsung Other

0.37%

0:00 11:00pm8:00pm11:00am

1.15%

The best timefor mobileUsers are most likely

to click mobile ads in

the evening

1.4%

0.0%

0.8%

CTR

Mobile banners Standard banners

0.07%

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Key Mobile Trends

Reaching One o Every Three Consumers

HTML5 iPad Ads at Your Fingertips

Mobile Ads Outperorm Browser Based Standard Ads

You can beat the CTR, but can you beat the ROI?

Handset PerormanceiPhone Leads the Way

Retail and Entertainment with the Highest Perormance

The Evening Browse

Conclusion

Table of Contents

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Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance

Key Mobile Trends

1 Mobile ads deliver signifcantly higher Click Through Rate, as compared to browser banners.

2 7pm to midnight is the most eective time or mobile advertising, with the highest CTR.

3 The iPhone delivers the highest Click Through Rate, BlackBerry the lowest.

4 The CTR perormance o Apples iOS is nearly double that o Android based phones.

5 The Retail and Entertainment verticals achieve the highest CTR.


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Reaching One of Every Three Consumers

Mobile display advertising, which until recently was regarded as

experimental or only for advertisers on top of the innovation

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In the past year, MediaMind has seen more blue-chip advertisers

allocate a portion of their budget to mobile, complementing their

investment in the traditional display and search.

The increasing popularity of smartphones, including Apples iPhone,

has significantly increased the reach of online display advertising

among young and affluent consumers, one of advertisers most

prized audiences. Today, according to comScore, 34.4% of US

mobile phone owners and 28.8% of European mobile owners use

their phone for online browsing and view mobile ads. Furthermore,

the increasing market penetration of smartphones means that

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According to eMarketer, by 2015, 43% of US mobile phones will

be smartphones, up from 31% in 2011.

Now that many of the technological barriers on mobile browsing

have been lifted, industry analysts predict that spending on mobile

advertising is going to increase significantly. eMarketers analysts

project that mobile ad spending will double from 2011 to 2014,

amounting to more than $2.5 billion, or 7.5% of spending on

online advertising.

Note: Includes Display (Standard banner, Rich media and Video), Search and Messaging-based advertising.

Source: eMarketer, Sep. 2010.

Chart 1: US Mobile Ad Spending, 2009-2014


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Tablets are an opportunity to take engagement to a new level, by adding touch to the visual stimuli. In the case o the iPad,

advertisers need to leverage the power o HTML5 instead o Flash to create powerul visual ads. However, as shown by the

Avatar DVD Release campaign, HTML5 ads on the iPad can be as sophisticated as Flash ads.

In this innovative ad, Fox Home Entertainment allowed users to preview exclusive movie scenes and behind-the-scenes

ootage in a way that corresponds to the flms augmented-reality-based plot. Using fngertips, users can drag and resize clips

on top o the web pages content, taking advantage o the ull screen o the iPad to convey the advertising message. The

immersive trailer ads were produced in dual HTML5 ormats or the iPad and Flash ads were created or Flash-enabled sites.

To view the ull ad, click here: http://bit.ly/AvatarDemo

HTML5 iPad ads at your fngertips
http://bit.ly/AvatarDemohttp://bit.ly/AvatarDemo


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Chart 2: Cross Channel Campaign Performance by Ad Format

Mobile Ads Outperorm Browser Based Standard Ads

They may be tiny, they may be new, but mobile ads trump browser based standard banners. A review o more than 230 million mobile

impressions shows that users are more likely to click on mobile ads than on Standard Banners.

The analysis used a sample o cross channel campaigns. These

campaigns utilized both mobile and browser based banners, and

thereore it is possible to compare similar creatives across channels

to minimize skewing o results due to creative implementation. The

analysis evaluated Click Through Rate (CTR), the only comparable

metric between mobile and Standard ormats.

Overall, advertisers have achieved signifcantly higher response

rom mobile advertising as compared to more traditional display.

Results show that or the same campaigns, mobile ads outperormed

all other ormats with a Click Through Rate o 0.61%, while the

Standard Banners recorded a CTR o 0.07%.

Although mobile banners are relatively small and mobile browsing

on some phones is still somewhat cumbersome, the high Click

Through Rate (CTR) isnt the result o at fngers. It can be attributed

to the technology innovation curve. New types o online advertising

tend to receive higher CTR that declines over time, once advertising

technology becomes more widespread and mature.

This phenomenon was also evident in the early days o browse

based banners. Global perormance data or Standard Banners

show that CTR or Standard Banners declined rom 0.15% in 2006

to 0.09% in 2010 (and to 0.07% in the US). The main reason o

the decline is that the additional clicks that users were willing to

make did not catch-up with the huge increase in impression volume

during these years. Thereore, advertisers in 2006 enjoyed less

crowded online advertising space, and were thus more likely to ge

clicks rom userssimilar to the mobile display landscape today.

Mobile banners arent just on top o the innovation curve, but also

occupy a bigger portion o the screen relative to browser based

banners. In many cases, there is only one banner on the page

Furthermore, people tend to browse with their phone closer to

their eyes, unlike the screen o a laptop or a desktop.

Note: Includes campaigns with at least one active mobile ad.

Source: MediaMind Research, Q4 2010 - Q1 2011 North America.


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Chart 3: Mobiles Effect on Brand Metrics

Note: *Delta is defned as point dierence between the exposed and the control groups.Source: InsightExpress, May 4, 2010. Cited rom eMarketer.

A study by InsightExpress also confrms that mobile banners

outperorm browser based banners or branding. InsightExpress

compared the response o users who were exposed to browser

based ads and mobile ads, and compared them to a control group

o unexposed users to measure the brand impact o the ads.

Results show that mobile outperormed browser based banners across all brand metrics by a actor o three. Mobile can help advertisers

to drive consumers through the purchase unnel even more eectively than larger browser-based banners.


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While the evidence shown here clearly demonstrates the higher eectiveness o mobile in CTR and branding perormance,

mobile advertising still carries higher costs, specifcally when compared to Standard. Nevertheless, even when considering

the incremental cost, mobile still delivers a higher return on investment (ROI).

An analysis o a recent campaign served by MediaMind o a large global fnancial services frm that used a combination o

Standard Banners, Rich Media and Mobile Banners shows that Mobile Banners achieved the lowest cost per click. Mobile ads

commanded a higher CTR, as compared to their Rich Media and Standard counterparts, which was large enough to oset the

higher cost o mobile media. In this campaign, mobile proved to be the most fnancially rewarding ormat in the media mix.

You can beat the CTR, but can you beat the ROI?


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An analysis o CTR and the proportion o impressions served by device reveal high variability between manuacturers. Apples iPhone and

LG devices lead the pack in terms o CTR perormance, although a relatively low proportion o impressions were served to LG devices

RIMs BlackBerry, which comes in second in terms o the proportion o impressions served, also commands the lowest CTR.

Source: MediaMind Research, Q4 2010, North America.

Chart 4: Performance by Manufacturer

Handset Perormance iPhone Leads the Way

The iPhone leads the mobile advertising revolution. The touch screen and the enhanced browsing experience entice users to click more

on banners, as can be seen by the higher CTR.


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Similar analysis o perormance by operating system shows that the perormance o Apples iOS is nearly double that o Android based

phones.

Source: MediaMind ,Q4 2010 and Q2 2011, North America.

Chart 5: Performance by Operating System


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Source: MediaMind ,Q4 2010 - Q2 2011, North America.

Chart 6: Performance by Vertical

Retail and Entertainment with the Highest

PerormanceNearly all verticals achieved a relatively high CTR o between 0.3% to 1.2%, which is higher than the benchmark or browser Standard

Banners. Entertainment and Retail enjoy the highest mobile CTR, while Apparel and Government have the lowest CTR. Government has

lower CTR perormance also or browser based banners.


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Source: MediaMind ,Q4 2010-Q1 2011, EST, North America.

Chart 7: Mobile and Browser Ads Serving by Time of Day

The Evening Browse

Mobile browsing habits are a whole dierent ball game when compared to traditional browsing. A large proportion o the browser based

banners are viewed between 9am and 5pm, when people are at the ofce. An analysis o impressions served by hour shows that the

most popular hours or mobile browsing tend to be early evening, between 7pm to 9pm, with elevated activity throughout the evening.

Furthermore, an analysis o Click Through Rate by hour shows that perormance is also above average between 7pm and midnight. CTR

reaches its peak at 8pm. Serving ads in the evening can prove much more eective as compared to earlier in the day, and can reduce the

cost per click o mobile.


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Source: MediaMind ,Q4 2010-Q1 2011, EST, North America.

Chart 8 : CTR for Mobile and Browser Ads by Time of Day


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Mobile is moving rom the ringe to the mainstream, helped by the tailwind o higher perormance

and better ROI. Today, mobile ads reach one o every three consumers, and mobile spending is

expected to double by 2014.

As in the early days o browser based display, the innovation o mobile advertising elicits higher

response rom users. Mobile achieves the highest perormance out o display ad ormats or CTR,

leaving Standard Banners in the dust. Mobile also outperorms browser based banners in branding

perormance.

Evidence shows that browsing experience does aect users response to online mobile advertising.

Apples iPhone achieves the highest CTR perormance, while BlackBerry the lowest. The CTR

perormance o Apples iOS is nearly double that o Android based phones.

Evenings tend to be most active, when it comes to online browsing and ad exposures. This is also

the time when users tend to be most responsive to mobile display ads, commanding the highest CTR.

With ever-expanding reach, higher perormance, and evidence o better ROI than traditional display,

mobile advertising can complement any display campaign. Dont let the tiny size ool you; mobile

can yield huge results.

www.mediamind.com

Conclusion

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mobile advertising research trends and insights

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