The State of the U.S. Mobile Advertising Industry and What Lies Ahead

Transcription

1 The State of the U.S. Mobile Advertising Industry and What Lies Ahead Hans Fredericks, VP, Marketing Solutions, comscore, Inc. Michael Becker, Managing Director, N.A., Mobile Marketing Association Scott Hendrickson, VP, Advertising Sales, Where, Inc. * Note: A copy of this presentation will be sent to all attendees within 48 hours of today s webinar

2 Our Presenters Hans Fredericks VP, Marketing Solutions comscore, Inc. Michael Becker Managing Director, North America Mobile Marketing Association Scott Hendrickson VP, Advertising Sales Where, Inc.

3 Agenda Current Understanding of Mobile Marketing Mobile media data and insights into the mobile advertising opportunity Big Brands in Action: Hyper Local Use Cases and Best Practices

4 About the Mobile Marketing Association Seven hundred (700) members strong, the MMA primary focus is to establish mobile as an indispensable part or the marketing mix. The MMA works to promote, educate, measure, guide and protect the mobile marketing industry worldwide. STIMULATE GROWTH REDUCE FRICTION PROMOTE EDUCATE MEASURE GUIDE PROTECT COLLABORATE

5 Unified Digital Measurement comscore Digital Business Analytics User Analytics Audience Measurement Site Analytics Vertical Market Solutions Social Analytics Advertising Analytics Copy Testing Campaign Verification Ad Effectiveness Cross Media Mobile Analytics Mobile Audience Measurement Network Analytics & Optimization Customer Experience & Retention Management V0910

6 WHERE Ads Reaches 51MM Consumers The Largest Hyper-local Mobile Ad Network Focused on pre-checkin and driving local commerce 100% of inventory is location targeted 3.5B impressions/mo. via 275+ publisher partners 120,000+ hyper-local ad campaigns daily Proprietary Relevancy Ad Serving Technology Recently acquired by ebay / PayPal Hyper-local Reach Publisher Portal

7 Mobile It s a Big Deal Really Big Deal!

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9 Grabbing Everyone s Attention Rich Media Advertising Whole World of Apps

10 Mobile Web & HTML 5 Tablets

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12 If your plans don t include mobile, then your plans are not finished. Wendy Clark, Senior Vice President, Integrated Marketing, Coca-Cola (IAB Annual Leadership Meeting 2011)

13 Mobile Marketing Defined Mobile Marketing is a set of practices that enable organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network. (Mobile Marketing Association, 2009)

14 MISR image of the Central Amazon

15 Convergence of Mobile Context in Marketing Digital marketing Traditional marketing Mobile is pulling these forces of marketing together

16 Available Mobile Paths Content Proximity

17 Feature Phones

18 Smartphones

19 Connected Devices

20 Two Inter-dependent approaches to Mobile Marketing Direct ( through ) Marketer Push Consumer Pull Through Mobile Media Outdoor Events SMS Indirect ( with ) Mobile Enabled Traditional Media Mobile Advertising On Package Print Prox. Cont ent Mobile Engagement App s MMS Inte r- net Online TV Radio Point of Sale

21 Mobile Tactics Used U.S. Source: MMA 2 nd ANNUAL VIEW FROM MADISON AVENUE (2010)

22 Mobile Advertising Delivery Mediums Mobile Web SMS/MMS Mobile Video Apps Different Ad Executions Static/Animated/Rich Media Banners Text Ads Expandable Ad Units for iphone and Android Interstitials for iphone and Android Text Ads in SMS or MMS Picture messaging in MMS Pre-roll video Post-roll video Banner (Idle Screen) Rich Media Ad Units (In App) Static/Animated Banners Text Interstitials Wallpapers Interactive Ad Units Other Ad channels: Voice, Bluetooth, Search

23 U.S vs. Worldwide Mobile Ad. Rev.

24 Global Ad Revenue Share By Type 10 vs. 15

25 mobile is about culture Is mobile all about Technology? It s also about Culture.

26 Consumer Behavior Depends on the Category Source: Bringing Life to the Mobile Segment. Carlson Marketing (2010) Source: North American Technographics Benchmark Survey, Q (US, Canada) Note: Examples of advanced activities include: downloading applications, checking news/weather/sports, using mobile banking, checking flight/train/bus status, researching or purchasing products, using navigation or GPS services, using coupons, etc.

27 comscore Mobile Measurement Methodologies Complexity and fragmentation of mobile market requires an array of data sources and methodologies for a 360 view MobiLens Market Tracking via Intelligent Online Survey Network Census Network Log Analysis Site & App Census Mobile Web, App & AdNet Tagging Mobile Metrix Smartphone Meter Panel GSMA MMM Behavioral media measurement Ad Metrix Mobile Mobile Ad Tracking Tools

28 Mobile Media Users are Nearing a Majority in the US Mobile Market Segments - March 2010 Mobile Market Segments - March 2011 Just Voice, 32.0% Mobile Media, 37.8% Just Voice, 27.1% Mobile Media, 45.7% 88.3 Million Million SMS (and not mobile media), 30.2% SMS (and not mobile media), 27.2% Mobile Media User = Used browser, application, native , stream or download music and broadcast or on demand video (does not include SMS) Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

29 % Female Mobile Users Differ Dramatically by Mobile Activity and Content Accessed 53% 52% Made Own Ringtone Demographics of Mobile Media Activities Social Networking Higher on chart = more female Further to right = older Size of bubbles = # of users 51% 50% 49% 48% 47% 46% Purchased Ringtone Ringback Unlimited Data Plan Mobile Media Played Games Used Browser Used App Listened to Music 45% Purchased Game 44% Median Age Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

30 % Market % YoY-Growth Browser and Application Usage Showing Continuous Growth Browser and Application Usage Growth 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 28.6% 30.6% 37.3% Used Application (except native games) 30.1% 28.4% 38.6% Used Browser Mar-2010 Mar-2011 Year-on-Year Growth 35.0% 33.0% 31.0% 29.0% 27.0% 25.0% 50% 40% 30% 20% 10% 0% Browser, App, SMS Usage App SMS* App OR Browser OR SMS* Browser App OR Browser 48% 45% 39% 37% 26% *Excludes Mobile to Mobile Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

31 % Group Facebook and Google Search Lead Market on Both Mobile and PC 80% 70% 73% 72% Brand Market Share - PC vs Mobile 60% 50% 40% 30% 20% 10% 0% 37% 52% 53% 15% 46% 11% 42% 28% 34% 29% 28% 24% 12% 12% 29% 25% 20% 20% 14% 16% 22% 18% 15% 8% 0.4% 10% PC Mobile Product: MobiLens / Media Metrix Data: March 2011 Country: US

32 Time Spent on Mobile Skews to Social Media Sites Average Minutes per Visitor Mobile vs. PC Internet (Top Mobile Properties) Mobile PC 652 Average Minutes per Visitor Mobile vs. PC Internet (Top Mobile Minutes per Visitor Properties) Mobile PC Product: Mobile Metrix / Media Metrix Data: March 2011 Country: US

33 Unique User (000) %YoY-Growth Double-Digit Growth in All Major Categories Led by Social Media Top 10 Mobile Categories - Year-on-Year Growth 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, % 40.2% 45.7% 32.1% 38.1% 43.3% 16.9% 24.8% 31.5% 33.4% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Mar-10 Mar-11 Year-on-Year Growth Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

34 Total Universe Audience (000) Incremental Reach Mobile Delivering Incremental Reach; Mobile Only is Over 40% of Pandora s Audience Incremental Reach from Leading U.S. News Brands' Mobile Websites Source: comscore Total Universe Report, U.S., April 2011 (beta data) Pandora Total Universe Audience (000) 35, % 30, % 7.0% 13,381 42% 25,000 20, % 5.5% 5.2% 6.0% 5.0% 7,135 23% 4.0% 15,000 10,000 5, % NY Times LA Times Wash Post WSJ Chicago Trib 3.0% 2.0% 1.0% 0.0% 11,126 Visitors 35% Home/Work PC Home/Work PC and Mobile Mobile Total Universe Audience Incremental Reach Product: comscore Total Universe Report. Data: April 2011 Country: US Beta Data

35 Mobile Social Media Booming in US Almost daily users of mobile social media +70% - growing faster than category 70,000 60,000 US Social Media Unique Mobile Users Conversational Media in Mobile Metrix (smartphone panel) has 71% reach 36% minutes, 44% PVs Nearly all is Facebook with 87% of category minutes and 83% of PVs 50,000 40,000 30,000 20,000 10,000 0 Almost every day At least once a week One to three times in the month Product: MobiLens, Mobile Metrix Data: Three month average ending March 2011 Country: US

36 Top Apps Largely Free Ads Key to Monetization Among top 50 apps with widest reach, Angry Birds is the only paid app During March 2011, 12.7% of downloaded apps were paid including five of the top 20 (Angry Birds, Cut the Rope, Fruit Ninja, islash, Angry Birds Seasons) and ten of the top 50 Rank Title Developer Genre Free / Paid % Reach of all Apps Downloaders 1 Facebook Facebook Social Networking Free 59.6% 2 Pandora Radio Pandora Media, Inc. Music Free 38.0% 3 Paper Toss Backflip Studios Games Free 28.6% 4 Google Search Google Reference Free 22.9% 5 Backgrounds Stylem Media Entertainment Free 22.7% 6 Google Earth Google Travel Free 22.2% 7 Touch Hockey: FS5 (FREE) FlipSide5, Inc. Games Free 21.7% 8 Skype Skype Software S.a.r.l Social Networking Free 21.4% 9 Myspace MySpace.com Social Networking Free 21.2% 10 Movies by Flixster, with Rotten Tomatoes - Free Top 10 itunes Apps Flixster Entertainment Free 20.8% Product: itunes App Tracker Data: Downloads Ever March 2011 Country: US

37 More Advertisers are Turning to Mobile With Growing Diversity of Categories and Advertisers Number of Display Advertisers March 2011 Advertised Categories 1% 5% Consumer Discretionary 26% Consumer Staples Financials Industrials 50% Information Technology Mobile Content and Publishing 7% 6% 2% Telecommunication Services Other 3% 0 Product: Ad Metrix Mobile Data: April April 2011 Country: US

38 Mobile subscribers receiving and responding to SMS ads 28% of mobile subscribers in the US received one or more SMS Ads in March 2011; of those, 17% responded to at least one SMS ad 60% 50% 40% 30% 20% 10% 0% SMS Ad Type Received vs. Responded 50% Received SMS Ad: 66.1 million Responded to SMS Ad: 11.3 million 36% 32% 30% 16% 18% 12% 8% SMS Ads Received Responded to SMS Ads Info about product/service/brand Coupon or discount Contest Donation to charity/non-profit Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

39 Smartphones Critical to Mobile Advertising Opportunity Service Penetration Used Browser 19% 82% Used App* Saw Ad on Web/In App 5% 16% 28% 85% Smartphone Feature Phone Responded to SMS ad 8% 4% 0% 20% 40% 60% 80% 100% *Except native games Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

40 Popularity of Smartphones is Increasing Bodes Well for Advertising 90% 80% 80.0% Penetration Embedded Base 80% 70% 70.7% New Devices Acquired 70% 60% 50% 40% 30% 20% 10% 20.0% 69.0% 31.0% 60% 50% 40% 30% 20% 10% 29.3% 52.3% 47.7% 0% Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar % Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar-2011 Smartphone Feature Phone Smartphone Feature Phone Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

41 Mobile Owners (000) % Year-on-Year Growth Google s Android Now In the Lead on Smartphones Smartphone OS Growth Smartphone OS Share 30, % 450% 400% Palm, 3% Symbian, 2% 25,000 20, % 300% 250% Microsoft, 7% Google, 35% 15, % 150% Apple, 25% 10,000 5,000 1% 56% 19% 100% 50% 0% RIM, 27% 0-20% -19% Google RIM Apple Microsoft Palm Symbian -50% Mar-2010 Mar-2011 YoY Growth Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

42 Ecosystem Competition Extends Beyond Smartphones Platform Installed Base (M), March 2011 Smartphone Other Device With ipad and ipod Touch, ios holds significant lead in addressable audience for developers Installed base of 44M devices (65% more than Android) ios Android Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

43 Tablets and other connected devices redefine mobile for advertisers Share of Page Views by Device Type and Platform All Connected Devices Excluding Smartphones 23% Smartphone -Android 7% 15% 25% 30% 20% 8% 2% Smartphone -Other Smartphone -Blackbberry Smartphone -ios ipad -ios ipod Touch -ios Connected Device -Other Product: Connected Device Reporting Data: March 2011 Country: US

44 % Market % YoY-Growth Growth in check-in and location-aware devices and services creating new opportunities Location Based Services 30.0% 25.0% 27.8% 40.2% 23.3% 43.3% 40.4% 50.0% 45.0% 40.0% 20.0% 15.0% 10.0% 32.1% 19.3% 27.5% 12.0% 11.0% 28.4% 29.2% 8.9% 35.0% 30.0% 25.0% 20.0% 15.0% 5.0% 5.0% 10.0% 5.0% 0.0% Weather Search Maps Movie Information Restaurant Information Traffic Reports Travel Service 0.0% Mar-10 Mar-11 Year-on-Year Growth Product: MobiLens Data: Three month average ending March 2011 Country: US, N= 30,817

45 To Sum The mobile audience is growing rapidly Multiple high reach advertising opportunities available web, app, SMS Major PC publishers building large mobile audiences, often incremental Engagement increasing as mobile media usage becomes daily activity Mobile social is the standout category Mobile advertising is broadening, and also key to app monetization Smartphones are key driver of audience, usage, advertising Tablets and other connected devices redefining mobile for advertisers Growth in check-in and location-aware devices and services creating more localized advertising opportunities

46 Hyper-Local Use Cases and Best Practices Scottie Pippen Michael Jordan Location Mobile Advertising Wile E. Coyote Road Runner

47 Hyper-Local Use Cases and Best Practices Hyper-Local Formula Reach + Relevancy Redemption/Engagement

48 Hyper-Local Use Cases and Best Practices What WHERE is Seeing Location Dynamic Ads are outperforming static creative by 30% Location Dynamic Ads are driving strong secondary engagement metrics: 40% of consumers are showing purchase intent 30% of consumers are clicking to social 20% of consumers are redeeming mobile offers Dynamic Targeting of ads is driving a 60% increase in performance

49 Hyper-Local Use Cases and Best Practices Hyper-Local Precision Targeting: Geo-Fencing Store fronts Competitor Locations POI (Airports, Schools, Theme Parks, etc.) CPG s: Targeting Key Shopper Marketing Partners.02 mi.

50 Hyper-Local Use Cases and Best Practices Hyper-Local Dynamic Targeting: Roaming Geo-Fences Weather Flu Index Store Performance Data Inventory Data

51 Hyper-Local Use Cases and Best Practices Event Based Marketing: Retail Events New Product Announcements Grand Openings Local Events and Sponsorship Activation

52 Hyper-Local Use Cases and Best Practices Hyper Local Content and Engagement: How can you align your brand with what is happening around the consumer? Weather Local Sports Scores Local News or Traffic Inventory (Popular local items, etc ) Local Places Aid in Local Discovery

53 Hyper-Local Use Cases and Best Practices What to expect in the future The evolution of hyper-local advertising into commerce Big Data and Relevancy will be king A Multitude of Location Dynamic Offers Inventory based offers Store Performance based offers Smarter Tools for Marketers to manage margins and drive sales via real-time offers

54 Remember Mobile isn t about mobile it is about engagement and the value consumers and you generate for each other Mobile is both a standalone media and a enabler for traditional media and will help you with: Branding, Awareness, Loyalty/Retention, Care and Social Media Enablement You can embrace mobile today, there are many resources.

55 Questions & Answers

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58 Thank you! Hans Fredericks Michael Becker Scott Hendrickson