IAB Tablet Buyers Guide

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1 IAB Mobile IAB Tablet Buyers Guide 14 Macklin Street London WC2B 5NF

2 Contents Introduction...2 Defining a tablet...2 The tablet you see...2 The tablet you monetise...2 Operating systems...3 Device diversity...4 User mindset: The Connected Consumer...4 Advertising on Tablets...6 A Key Growth Opportunity...6 Advertising opportunities...7 IAB Rising Stars Formats...8 Targeting considerations...9 Summary...9 Campaign planning: Key considerations Integrate your tablet strategy into the marketing mix...10 Screen size matters...10 Consider multiple use cases...10 Create ads specific to tablets and publishers...10 Take into account multiple screens...10 Design...10 Understand standard ad format sizes...10 Switching between portrait and landscape modes...11 Take into account the retina display...11 Understand the effectiveness of rich media...11 Design the add to fit with the app or web experience...11 Execution...11 Balance interactivity to attract and not deter users...11 Take advantage of rich media capabilities...11 Optimise landing pages for tablets...12 Consider the impact of offline vs. online usage of apps...12 Take into account ad trafficking standards...12 Measurement...12 Real time reporting of trafficking metrics...12 Post campaign engagement analytics...12 Understanding conversion tracking...12 AutoTrader example...13 Tablets - the engaging companion: How tablets are changing behaviour, their relationship with other media and what this means for advertising strategies...14 Tablet usage leads to more searches...15 People use smartphones and tablets while watching TV...16 Tablets are the new entertainment destination and increase online video views...17 Users expect advertisers to be on Tablet devices but Context is King...19 Implications for Media and Advertising Strategy...20 page 1

3 Introduction Paul Childs, Chief Marketing Officer and co-founder, Adfonic Tablets have been around since 2001, in the form of the Microsoft Tablet PC, but it was Apple s ipad launch in 2010 that kick-started the market worldwide. There has since been an explosion in tablet devices shipped with an increasing diversity of operating systems, brands, devices and form factors. To put this growth into perspective, Forrester Research predicts that, by 2016, around 375 million tablets will be sold globally each year and 760 million tablets will be in use, representing a 46% annual increase. NPD Display Search anticipates tablet PC shipments will climb to million units by 2017, from the 81.6 million units shipped in And in the UK, Ofcom s Communications Market Report for 2012 shows tablet ownership has jumped from 2% to 11% in 12 months. Inevitably, where consumers go advertising will follow, and in their millions they are heading towards tablets. Already a study by The Yankee Group predicts that tablets, thanks to their larger screens and more engaging media experience, will account for 53% of mobile advertising dollars in 2014, compared to 47% for mobile handsets. That number is expected to grow to 60% by This guide explains how to incorporate tablet advertising into your campaigns. It is for marketing and advertising agency staff, both creative and media planning, who want to understand more about the state of advertising on tablets today. Because tablets are still a new and evolving platform: many aspects of these devices, particularly with regard to metrics and buying media, are changing quickly. This is why the IAB expects to revisit this topic in future, updating and revising as the market matures. Defining a tablet There are hard attributes that characterise tablets, such as their size, features, portability and so on. But advertisers, publishers and developers need to look beyond this and consider their potential for monetisation. The tablet you see Simply type "tablet computer definition" into Google and you will see well over half a million results. The majority agree on the following: Size. Tablets are larger than smartphones, smaller than laptops. There are many form factors, from the largest 10.1 inch tablets down to seven-inch models. Input. One of the distinctive features of tablet devices is the touchscreen, which enables people to tap, drag or swipe icons on the screen. Portability. The lack of keyboards also makes tablet computers lighter, and easier to carry. The lightest tablet currently weighs a mere 1.33 pounds. Apps. You may have heard the expression There s an app for that. This is because apps are programs optimised for the reduced screen sizes and capabilities of mobile devices for very specific tasks, such as playing music or displaying maps. So tablets are a highly attractive proposition for developers, publishers and advertisers. While they are small and portable enough to travel to places other devices cannot, they have screen sizes and features that are immersive enough to engage consumers. The tablet you monetise Find a website that shows ads. Then look at it on your mobile devices such as your smartphone and, if you have one, a tablet. If you see a mobile site with properly positioned and rendered ads, that s because the developer has made this happen. But if all you see is a standard site with no optimisation, or a mobile site with no page 2

4 ads, then this development work has not been done. The online site is optimised and monetised but, when viewed through mobile, it lacks usability or monetisation. In such a case, the advertising potential has been lost. So when a tablet can display full websites as well as mobile-optimised sites, the question arises as to who owns monetisation on tablets? Is it online or mobile? Online and mobile are very different technologies. Online is relatively uniform with a small number of operating systems and devices: mobile is immensely diverse. Developers need to put considerable resources into maintaining both platforms. Advertisers need to ensure their campaigns have impact on both systems, and click through to sites that also render properly on any platform. The tablet format is the first to bring together the online and mobile worlds and raise this issue. Which will dominate remains to be seen. Operating systems There are five major mobile operating systems: Apple s ios, Google s Android, Microsoft s Windows, RIM, Nokia s Symbian and Java from Sun Microsystems. The most dominant of these within mature mobile markets are Android and ios. The graphic below shows the proportion of ad impressions shared between Android and ios across global regions. Proportion of ad impressions shared between Android and ios across global regions. Source: Adfonic Global AdMetrics Report, Q2, 2012 Android is open-source, which means anyone can license it and build devices to use it. As a consequence there are many Android devices of different sizes, shapes and capabilities. Samsung and Asus are currently very popular Android tablet manufacturers, but there are many minor brands. By contrast, ios is Apple s proprietary operating system. Only Apple devices run ios, so there are far fewer versions and devices and much less complexity overall. While this makes life easier for publishers, developers and advertisers, the increased premium for Apple devices can deter some consumers. Another survey by NPD in the US found that more than 40 percent of ipad owners had a household income of $100 thousand or more compared to 26 percent of non-ipad owners. This implies that Apple devices are the preserve of wealthier consumers. Android devices tend to sell at lower price points, making them more attractive to students, lower-income families and developing nations. This is reflected in reports coming from the global mobile advertising marketplace, which show ad requests from Android devices challenging or even overtaking ios, as more devices become more affordable to more people. page 3

5 Device diversity As competing operating systems emerge, so does a huge array of tablet devices. For consumers this means more choice. For advertisers, developers and publishers it represents an opportunity to follow the eyeballs, and a challenge to unify a fragmented ecosystem. Apple s tablet device portfolio could barely be simpler: it s the ipad, with variants including connectivity such as 3G and 4G, and newer versions coming online, with maybe (at the time of writing) an ipad mini device with a 7-inch screen. However, Android is very fragmented. Amazon UK currently stocks over 50 Android tablet brands, and over 400 separate Android-powered tablets. Recently this fragmentation has been less of an issue for advertising, as Apple s ios has been dominant. But Android is taking over as the platform of choice, with for example Adfonic s Global AdMetrics Report for Q showing that Android increased its share of mobile ad impressions from 38% in Q1 to 46% in Q2 while ios lost share to Android, declining from 45% in Q1 to 34% in Q2. So the opportunity is growing for Android developers, but they need to meet the challenge of device diversity. For example, developers need to make their sites or apps and associated ads display properly on different sized screens. And the ever-increasing capabilities of new devices means they must download the latest software development kits (SDKs) to benefit from the latest ad formats. Advertisers meanwhile need to develop creatives that work on tablets and smartphones as well as other visual media such as hoardings and TV placement. User mindset: The Connected Consumer Devices, brands, platforms, operating systems, formats the list could go on. But what advertising is really about, is people. People no longer have one device. They use different devices throughout the day. The illustration below shows the results from an IAB research project called Three Device Lives which looked at how desktops, smartphones and tablets are used by over 600 consumers in the UK. page 4

6 This research showed that consumers already use their suite of devices for different roles in their daily lives. Consumers who don t have tablets tend to use their laptops and PCs for admin and work, while mobiles dominate for news, social networking and information finding. But consumers who own tablets not only use laptops and PCs for different tasks: they also use their tablets for a whole new set of activities. Retail, video content and entertainment dominate tablet usage, making the tablet a place for laid-back entertainment that currently neither smartphones nor PCs completely fulfil. So, do tablets replace phones, or laptops? It s very like asking whether televisions replaced magazines or radios. Just like the introduction of TV to the media mix, tablets are carving out their own niche. The challenge and opportunity lies with the mobile advertisers to create compelling, cross-channel campaigns that recognise how, why and where tablet audiences use their devices within the threedevice ecosystem. page 5

7 Advertising on Tablets: A Key Growth Opportunity Gavin Stirrat, Managing Director, EMEA, Millennial Media There are now over 40 different major OEMs producing tablet devices, however the market currently remains dominated by the ipad, with a market share of over 75 percent. Apple is forecast to remain the market leader for the foreseeable future, however the launch of the Google Nexus 7 tablet will seed Android tablet growth. The graphic below provides a brief history of the most prominent releases in the UK, since the original ipad launched in April A Key Growth Opportunity ComScore forecast that in 2012, the number of tablet users worldwide will grow by 55 percent, to 105m. These consumers are very engaged, with 10.7m (21 percent) of adults within the UK using a page 6

8 tablet to go online, for 8.9 hours per week (Mediascope Europe). This online access skews to downtime, with 80 percent of tablet owners using their tablets in the evening, primarily during the peak TV hours. This is quite staggering access growth and not far behind the 10.6 hours per week currently spent online via smartphones. The use of tablets as a primary content device was evident most recently in the BBC coverage of the 2012 London Olympic Games. The BBC provided a rich array of digital content across PR, mobile tablet and connected TV and reported that they received over 2.3 million browsers via tablet devices to their mobile site and Olympics apps. Comparing how content is accessed across each of these devices, it was revealed that tablet usage peaks around 9pm with higher penetration than all other connected devices as consumers use their tablets for a second-screen experience, before continuing to watch via this device when they go to bed. Tablets are rapidly becoming the new home media centre. Where mobile devices are personal, tablets are social, with Forrester research finding that 50 percent of tablet owners share the device with their family, friends and co-workers. As a result of this social, housebound activity, tablet users are more likely to multitask compared to other Internet devices, with 52 percent of consumers watching TV whilst online on a tablet (Mediascope Europe). This presents engagement opportunities for all TV advertisers who need to adapt their strategies to capitalise on this trend. A call-to-action within the TV ad that inspires the tablet audience should deliver uplift in campaign results. Not only are tablet owners using their device more often to engage and consume online content, they are also making more and greater purchasing decisions. According to a Shop.org report in the US from May 2012, on average, consumers making purchases on tablets spend approximately 20 percent more than those who shop on smartphones. Advertising opportunities Whether conducting tablet advertising in-app, or via mobile web, there are five main types of advertising opportunity to consider: 1. Sponsorship Provides 100 percent Share-of-Voice within the publishing channel chosen and often includes the opportunity to integrate advertising with the content itself. Campaign scale is limited by the reach of the site or app chosen. 2. Full-Page Interstitial Often found in game apps between levels, or in magazine-style content, between pages. These can be static, or include video, social media integration or other rich-media functionality. 3. Rich Media A self-contained ad experience that can be tailored to accommodate complex client goals. The consumer is kept within their content experience and the advertising content is all served directly within the ad unit. Includes full-page expandable ad units, page 7

9 games, mobile video or other bespoke content. The wide range of post-click destinations and customisable features - including access to device functionality such as accelerometer, GPS, etc - provide advertisers with an opportunity to expand upon the initial consumer conversation. 4. Mobile Video Efficiently extend digital and TV creative onto the mobile platform. Give consumers a lean-forward experience that starts a dialogue and drives value for your audience. Opportunities include video interstitial, pre and post-roll, inline and click-to-video. 5. Standard Banners There are not currently any defined standard ad formats for tablets, as there are by the MMA for smartphones. However, the main banner formats in use today are as follows: 300x250 - MPU 468x60 - Banner 728x90 Leaderboard 1024x768 ipad Full Screen All of these can be static or animated banners One of the interesting results of these varied formats being available, is that it presents opportunities for different media buying teams to include tablets within their strategy: the digital teams buy because they are used to the same sizes online; the mobile teams can do so because it s a connected device; and the TV teams do so because it allows them to repurpose existing assets and extend the value of their TV campaign to a new, mass-market medium. Buying advertising campaigns on tablets follows the same buying opportunities as for mobile and digital, namely CPM (Cost-Per-Mille 1,000 impressions), CPC (Cost-Per-Click) and CPA (Cost-Per- Acquisition). By far the most prevalent buy metric is CPM. This is due to the premium nature of the environment, the highly desirable qualities of the audience, and the deep engagement possible by leveraging a tablet s large, rich, creative canvass. IAB Rising Stars Formats These were recently announced and are a suite of five Rich Media formats that have been designed to propel brand creativity on mobile devices at scale. The formats are as follows: IAB Mobile Adhesion Banner Dynamically locks to designated area of page IAB Mobile Filmstrip Multi-panel, scrollable vertical or horizontal ad page 8

10 IAB Mobile Full Page Flex Full screen experience that accommodates both portrait & landscape orientation IAB Mobile Push Pull down or pull up banner to reveal full-page ad IAB Mobile Slider Slide banner left to reveal full-screen ad; slide banner right to close The placement of these ads is publisher dependent, but as more publishers adopt these formats it should enable even greater creativity within brand campaigns. Further details can be found on the IAB website (http://www.iab.net/risingstarsmobile) Targeting considerations Tablets provide a rich creative canvass and, according to a report by the Online Publishers Association, skew to a more affluent, older demographic. The device category therefore lends itself to brand advertising campaigns. When carrying out brand campaigns across any device the audience targeted is an important consideration. The nature of a tablet device itself allows for certain assumptions to be made about the owner, as outlined above. By considering some of the following additional targeting variables, this insight can be further augmented: Tactical Targeting reach consumers based on the characteristics of their device and data connection; e.g. device, OS, network, Wi-Fi Content-Based Targeting reach consumers based on the types of content they are currently consuming; e.g. Automotive, Finance, Games, Music, News, Social, Sports, etc Contextual Targeting - reach consumers based on what is happening around them at that moment; e.g. Location, Day Parting, Competitive Conquesting, Situational - at an event; at an airport; in a hotel Retargeting reach consumers who have already expressed interest or exhibited favourable intent for your brand or products Advances in technology and the use of data are enabling the methodologies employed to target different audiences to evolve. The use of location can be particularly powerful, if it used beyond a point in space to target your message and towards the use of location as a data-reference point, to provide insight into the target consumer. Summary The IAB 2012 Tablet Study found that 45 percent of consumers expect their favourite brands to be advertising on tablets, with 55 percent agreeing that advertising on tablets can do things that advertising on other media cannot. Tablet users expect advertisers to make the most of the interactive opportunities on a tablet, with 54 percent stating that the interactivity drives a positive overall opinion of the advertising. Although consumers expect more from tablet ads, the old rules of advertising still apply; context and relevance is still of paramount importance. Tablets are a relatively new form-factor for mobile advertising, however their unique characteristics make them an ideal canvass for rich consumer engagement. As a result, there is a growing demand from marketers to use the device as a branding vehicle, rather than just a performance buy, due to the immersive experience possible, outlined in this chapter. This desire isn t and shouldn t be limited to the mobile teams. The size of the screen and ad units, the creativity possibilities and the ability to target your audience and advertising spend, all add up to a format that can-and-should be bought across digital, print, broadcast and mobile teams. Consumers are responding positively to creative excellence and brand marketers should be encouraged to consider how they can integrate tablets into their marketing plans and advertising page 9

11 campaigns. Hopefully this White Paper will enable you to speak to your mobile media partner with confidence and start to plan successful tablet campaigns for your brand. Campaign planning: Key considerations Jonathan Milne, General Manager Europe, Celtra Inc. Integrate your tablet strategy into the marketing mix Tablets are highly complementary with other media so tablet strategies shouldn t be developed in isolation but integrated with the rest of the media plan. For marketers this creates highly synergistic opportunities to program relevant or related messages on multiple platforms including tablets, print, online and TV. It s essential to include the tablet component as early as possible in the planning process and coordinate it with the rest of the campaign. Screen size matters When planning your campaign, consider the differences between smartphones and tablets. Smartphones have smaller screens and ad formats sizes are smaller so creative is more effective when it is fast loading, easy to read and includes location-based information with clear calls to action. For tablets, screen real estate and ad format sizes are larger than phones allowing for longer, more advanced creative executions. Consider multiple use cases Tablet usage patterns are important to consider when planning a tablet strategy. Tablets are typically used in the evenings at home with a Wi-Fi connection when users are more relaxed and have more time to concentrate. Users are willing to spend more time on ads and as a result have come to expect higher quality creative executions. Because tablets are more often used in the home, location based features are less relevant that smartphone ads which are optimised for users who are out and about. More artistic, leisure based advertising works best. Create ads specific to tablets and publishers Tablets have been a game changer for premium publishers allowing them to deliver truly engaging experiences that can be monetized in new ways. Tablet experiences combine the dynamic and interactive capabilities of the web with the style and sophistication of print. Rather than repurposing online or TV ads, advertisers should create ads specific to tablets and the apps/sites in which they reside. Take into account multiple screens Simultaneous use of tablets while watching TV is on the rise. Ads that achieve cross-screen viewership, meaning they were seen on televisions and tablets make a deeper impression with consumers and can be effective. Cross platform campaigns give consumers an immediate call to action that s not always available when advertising on TV alone. Design Understand standard ad format sizes One of the most important decisions is which tablet ad formats to use. Half, quarter and full-page ad formats are effective for driving brand awareness and fit well with magazine style apps or websites. If a media buy is across multiple publishers, using specific ad sizes that work across all of them can save development time and cost. Full page ads: Many Publishers are selling full-screen ads. Full page ads should include two formats, one for landscape and one for portrait viewing. Full page ad formats can vary, with some publishers reserving space at the top or bottom of the screen for navigation or other purposes. page 10

12 Standard ad units. 1024x50, 768x50, 728x90, 300x250 have become fairly common banner sizes for tablets. Recommended expanded ad unit sizes include 768x916, 1024x660, and 768x660 as they are geared to the tablet screen size and allow for a great user experience. Switching between portrait and landscape modes It is important to note that tablets screen orientations change and can be used in either portrait or landscape mode and users change from one to the other at will. Ads that work in both modes typically garner the better results as many publishers are locking orientations. Take into account the retina display The ipad 3 s retina display transforms the ipad experience. Optimizing specific features of an ad such as logos, icons, buttons, and text creates a premium look that is appealing to consumers. Be mindful that only a select set of features should be optimised for the retina display so that you can be sure to keep your ad weight optimised. Understand the effectiveness of rich media Many advertisers and publishers have moved beyond the traditional static banner ad offering rich capabilities such as video, photo galleries, gamification and social media to enable immersive and engaging experiences. As your tablet campaign gets underway, consider how the ad s features will influence the user s experience. For example, consider the touch driven environment and include features such as swiping, pinching, rotating and tilting to drive consumer interaction. Thinking about the user experience early in the process typically leads to creative with greater engagement and appeal. Design the add to fit with the app or web experience There are hundreds of thousands of tablet apps and the number of tablet-optimized web sites is growing fast. Whether a game, magazine, video, utility or social property, the app type will affect the types of ad units offered and the user s willingness to interact with those ads. It s important to consider the media plan when thinking about the creative and to consider the ad s features when developing the media plan. Execution Balance interactivity to attract and not deter users It s important to find the right balance between being intrusive and being noticeable. Animated ads catch tablet user s attention by making the ad more visible. Ads that have animation in the background are effective at catching the attention of a tablet user and are much more appealing to them than ads that blink. Take advantage of rich media capabilities Tablet users have come to expect rich media experience and proactively engage with them. The onus is on advertisers and their agencies to deliver meaningful rich experiences that are in context with the content around them. The ability to touch, shake and tilt device adds a new dimension of interaction that users love. Including photo galleries, video content and animation into creative executions, builds user awareness and engagement. Tablet videos can be longer and higher quality than those used for smartphones. Social media such as sharing on Facebook or Twitter extends the connection of the brand and the consumer beyond the life of the campaign. Tablet games can be more sophisticated as they encourage users to spend quality time with the brand; while playing users are focused and engaged. page 11

13 Integrating forms for data collection and click-to-call buttons directly in an ad unit drive users further down the purchase funnel Optimise landing pages for tablets Landing pages for tablet ads should be built in HTML and feature clear calls to action and eye-catching creative. Responsive design sites are growing in popularity. Rather than creating a separate site with different content, user interfaces and creative elements tailored for separate devices, a responsive website will adapt and scale the presentation layer to work best within the available screen real estate. Consider the impact of offline vs. online usage of apps For apps that require online connectivity to operate as well as tablet web ads, the full array of ad features, including dynamic content can be used. For ads that are served offline, cashing is recommended so your campaign can be delivered successfully and ensures capture of campaign analytics. Take into account ad trafficking standards The IAB s MRAID standard has allowed media buyers to more easily deliver their campaigns across multiple platforms and devices with its SDK agnostic approach. MRAID 2 promises to deliver more sophisticated size changes in ads, allowing ads to grow to partial screen, and change size multiple times as users interact with the creative. It also standardizes how the ad creative gets information about screen size, device capabilities, and other details relevant to desired ad behavior. In addition it will allow clarification of video handling in the context of mobile rich media banner and interstitial ads. Measurement Real time reporting of trafficking metrics Mobile advertisers have traditionally measured campaign success by the volume of impressions and click throughs. Similar to the online world, mobile marketers are increasingly interested in viewable impressions, or impressions that are actually visible to the human eye. Brands and agencies want to not only know where their impressions are served across sites, networks, and exchanges, but how many of these impressions are visible on the web page and for how long as they are delivered. Trafficking metrics can be sorted by device, platform and browser. Post campaign engagement analytics With rich media, advertisers and agencies can engage audiences through an interactive experience, supported by multimedia content such as videos and games, and integration with social networks such as Facebook and Twitter. This format enables advertisers to build a complete customer journey through the ad, without taking the user away from the mobile site or app, or disrupting the user experience. A common industry metric is the engagement rate or the percent of impressions resulting in the user interaction in the ads. Advertisers can also measure the customer interaction with the brand at a more meaningful level through metrics such as video play-time or social activity. Ad completion rates and time spent with the ads are typically higher with tablets than with smartphones. It s important to keep in mind that a longer time spent isn t necessarily better; it may indicate that the ad is confusing or difficult to navigate. Understanding conversion tracking Conversion tracking can help spot the best performing ads. It shows what happens after a customer clicks on the ad whether they purchased a product, signed up for a newsletter of filled out an information request form. page 12

14 AutoTrader example This is an example of an acquisition ad for AutoTrader. The ad begins with an animated banner with an effective call to action: We re great at finding cards. Are you? Take the Challenge. The user has 30 seconds to play a memory game and find the pairs of matching tiles. Following the game, the ad ends with acquisition; the user is invited to download the Auto Trader app. page 13

15 Tablets - the engaging companion: How tablets are changing behaviour, their relationship with other media and what this means for advertising strategies Mary Burris, Mobile and Product Solutions Strategist, Google; Matt Brocklehurst, Product Marketing, Google and Adam Sheridan, Research Director, Ipsos MediaCT In just two years, tablet ownership has moved from the preserve of more affluent early tech adopters toward more mainstream ownership, with penetration now at 10% of the UK population 1. Tablet online usage is also mobile; 34% connect out of home via Wifi/WLAN 2 and this suggests a more scalable in and out of home opportunity for advertisers to continuously connect with consumers in different ways, telling stories about their products in a highly engaging way. In some respects, the added functionality and interactivity offered by tablets could present the digital iteration of the evolution from radio to TV in the 1950s. During this time, marketers were unsure how to make best use of moving images in TV commercials, focusing on radio scripts with static images and only after this initial introduction did they learn how to best use the power of moving images to deliver messages. While few question the tablet opportunity, we are at a similar turning point where relatively little is known about how three-screen (PC, smartphone and tablet) ownership affects online and offline behaviour and what this means for how advertisers reach their consumers. Adding devices to users repertoire could be creating additive behaviour - giving advertisers more opportunities to connect - or simply substitute existing behaviour. Google partnered with Ipsos MediaCT to conduct a research study, Multi-Device Lives June 2012, to better understand the impact of multi-device ownership on online and offline media use and what this means for advertisers. The study used a mobile diary amongst a group of early adopter three-screen owners, asking them to record when and how they went online and when they used offline media, what prompted them, when and why they did it and where they were. Those who completed the diary were sent an online page 14

16 survey the next day to further understand the context of this use and if it replaced or created new online and offline behaviour. Ipsos MediaCT also ran a research study for the IAB to better understand the effect and perception of different tablet ad formats, testing 9 tablet ads across static, animated and interactive formats. The key insights from this research and thoughts on what this means for media and advertising strategy are: Tablets usage leads to more searches People use smartphones and tablets while watching TV Tablets are the new entertainment destination and increases online video views Users expect advertisers to be on Tablet devices but Context is King. Tablet usage leads to more searches By asking three-screen owners if they would only have searched on the device they used at that time, we are able to identify that tablets are increasing overall searches. Of all search behaviour recorded, we found they add an incremental 11% to searches that would not have happened if they didn t own the device: As well as being incremental, search tablet use is complementary to the personal desktop PC/laptop and smartphone, with 39% and 19% of respective behaviour that would not have happened if the latter devices were not owned. While each device plays its own role in search behaviour, they are used for very different reasons. Key to tablet search use is convenience, with users being able to pick the device up and find the information they want with little effort: page 15

17 The convenience of picking the tablet up as and when required could explain why 35% of searches that are done while consuming other media, such as TV, are done on a tablet: This considerable level of tablet use while consuming other media could have considerable implications for your search strategy. Since users are searching on tablets while using other media, such as watching TV, you should make sure you have an integrated cross-media campaign. Search campaigns should include keywords based on messages in offline media and linking the user to content that exploits the screen size and interactivity that tablets offer. People use smartphones and tablets while watching TV The convenience factor of tablets has wider implications than on search use alone. When completing their mobile diary, three-screen owners were asked to tell us about any focused activity they did and if they also did anything else in the background. By cross-referencing focused viewing of TV shows with background online use, we were able to understand the proportion of TV viewing sessions that had some form of online presence and where mobile based devices fit within this. page 16

18 At the total level, we found that a considerable half (52%) of all TV viewing sessions involved some kind of background online use, with smartphones and tablets forming the majority of this use (39%): That two in five of all TV sessions involve online use on mobile platforms suggests both a challenge and interesting opportunity for advertisers. One of the opportunities when viewing TV advertising is that the 30 spot is not the end of the conversation and if the message is engaging and directs to further online content, consumers have smartphones and tablets at hand to further engage with the brand and detail about the products. While the opportunity is there, substantial online use on mobile devices suggests a need to invest in mobile optimised platforms and content to deliver a consistent cross-platform message and give a satisfying extension to the consumer experience. Tablets are the new entertainment destination and increase online video views The screen real estate coupled with convenience factor also suggests that tablets are changing the online entertainment landscape for three-screen owners. When asked why they used a device, tablets dominated the proportion of all occasions used for entertainment reasons such as online browsing, social networking and online video: page 17

19 With rising tablet ownership, this finding suggests considerable implications for content providers. Tablet optimised sites or apps delivering content are more likely to engage users with their entertainment or information than content providers who don t optimise. Tablets being the online entertainment device of choice filters down to the total number of online video content views users make, adding 15% of incremental views: The additive screen time from tablets for online video adds to the case for advertisers to focus their attention on how best to deliver their messages alongside this content. The IAB and Ipsos MediaCT Tablet Ad Format study suggests tablet owners not only prefer an ad based model to fund online content they view (61%) but that these users actually expect their favourite brands to communicate with them on tablets: page 18

20 Users expect advertisers to be on Tablet devices but Context is King It is clear from the Google research study that tablets bring a range of opportunities for advertisers to reach consumers in different, multi-media engaged ways. The IAB and Ipsos MediaCT study does though suggest that the execution of advertising messages on tablets is critical to capitalise on these opportunities. With tablets being the entertainment device of choice, users expect this to extend to advertising, with over half (55%) agreeing that advertising they see on tablets can do things that ads on other media cannot: This study also confirms that the expectation needs to be met with a positive experience. Based on exposure to different types of tablet advertising when focusing on online articles, tablet owners are more likely to give a positive response to interactive ads than static executions: page 19

21 This more positive response reaffirms the need for investment in tablet optimised communication and delivery and to not simply transition executions intended for other online platforms. Advertisers should design for the medium and take advantage of rich media ads that increase engagement. Implications for Media and Advertising Strategy These research studies give clear insight into how tablets increase and complement existing online and offline media consumption which have notable implications for advertising investment. Their convenience adds to search, entertainment consumption and background online use during other media consumption such as TV. This is a great opportunity for advertisers developing integrated cross-channel campaigns. Furthermore, investment in tablet optimised delivery and in producing interactive rich media advertising can make the most of the story telling opportunity of the tablet. page 20

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