This whitepaper is intended to present a view of the current situation in mobile advertising and the trends that are shaping it today and will shape it in the future. While mobile devices are rapidly outpacing traditional personal computers as the platform of choice for consumers, marketing and advertising are currently failing to keep up and capitalize on the opportunity. We divide this whitepa- per into three sections to review the issue. The first section outlines the current landscape and economic realities for digital advertising. The second section defines and describes the key challenges facing mobile marketers and contributing to the core problem of mone- tization (or lack thereof). The third and final section provides practical advice for improving the economics of mobile advertising for everyone – both advertisers and publishers alike.
2. Introduction
In 2011, more than 1.5 BILLION mobile phones were Mobile advertising, despite the growth and hype of recent
shipped worldwide. 1.5 billion is an incredible number. Add years, is far from reaching its potential. The main measure
to that the fact that nearly half a billion of those devices of economic health, Effective Cost per Thousand Impres-
were smartphones and that 70 million tablets have been sions (eCPM), is currently only ~20 percent of desktop and
sold and you have an unprecedented opportunity for is facing more downward pressure as inventory explodes,
mobile connections, communication, media and globalization unfolds and operational and technical
commerce. While there’s a surfeit of opportunity, there challenges around mobile technology grow instead of
are also seemingly overwhelming challenges that stand shrink. It will take a few visionary, strong companies to help
in the way of realizing the full potential of mobile as an forge a path forward, but make no mistake – there is a path
advertising and marketing channel. forward and those following it today will be rewarded in the
near future.
This whitepaper is intended to present a view of the
current situation in mobile advertising and the trends that AdTruth benefits from the years of research our parent
are shaping it today and will shape it in the future. While company – 41st Parameter – has conducted on the
mobile devices are rapidly outpacing traditional personal relationship between individuals and their devices. It is a
computers as the platform of choice for consumers, rich area of study and our device recognition and
marketing and advertising are currently failing to keep up intelligence background, combined with AdTruth’s deep
and capitalize on the opportunity. We divide this whitepa- media experience and industry neutral position, allows us to
per into three sections to review the issue. The first recognize trends and share insights with an industry striving
section outlines the current landscape and economic to right itself.
realities for digital advertising. The second section
defines and describes the key challenges facing mobile
marketers and contributing to the core problem of mone-
tization (or lack thereof). The third and final section
provides practical advice for improving the economics of
mobile advertising for everyone – both advertisers and
publishers alike.
To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
3. The Current Mobile Advertising Landscape
Mobile Advertising Today
According to Informa WCIS, there are more than 1.1 billion mobile 3G Internet subscribers around the world. In the US alone
there are more than 200 million. This is a sign of things to come as mobile usage will only continue to expand and grow.
eMarketer expects US mobile ad spending to reach
$2.6 billion this year, up 80% from 2011.
SOURCE: eMarketer Mobile Roundup (July 2012)
With this amount of consumer adoption and expanding bandwidth at lower cost, it’s no surprise that eMarketer is predicting
this type of growth in mobile advertising spend. Further, this figure is US only; the global market should reach $5 to $6 billion
in 2012.
(Much) Too Soon To Celebrate
While the figures above look impressive in isolation, other data certainly tempers our enthusiasm. The New York Times
recently reported that mobile display advertising revenue was $1.6 billion in 2011. That’s a big number, but it’s a paltry 5
percent of 2011’s total digital advertising revenue of $30 billion. By now, many readers will have seen the figures below
presented by Mary Meeker, but they are worth revisiting. Ms. Meeker’s analysis suggests a $15 billion opportunity for mobile
advertising in the US alone if we can solve some of the core issues. Also evident in the analysis is the huge gap between
desktop and mobile. Readers should keep in mind that many important and growing ad markets have little or no desktop
environment, so this US-centric view hides the full global opportunity in front of us for mobile.
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4. Feeling the Impact
The two most important data points for understanding the realities of mobile advertising monetization – the Facebook and
Millennial IPOs – provide a grim view of the struggles we face as an industry.
30-day tracking of Facebook and Millennial stock price
Solving the core issues holding us back in mobile is critical. Digital media is a bright spot around the world, but issues with
mobile advertising and monetization potentially threaten the sector. Highly successful industry players with the economics to
IPO are now forced to rethink timing. A July 26th, 2012 article from ExchangeWire highlights the issue with potential IPO analy-
sis on the massively successful retargeter Criteo, claiming that “…the role mobile advertising plays within this is still some-
what unknown (mobile display is stuck in a rut). Nevertheless, Criteo will need a bigger story in mobile come IPO time.”
Key Industry Challenges
Why is this happening? We believe there are seven key challenges facing the industry. As the best entrepreneurs and
business people understand, tough challenges present huge opportunities. We should focus on solving them rather than
avoiding or ignoring them, which is often the approach taken early in the cycle of new, disruptive technology.
Challenge #1: Enormous, Fragmented Display Ad Impression Supply
This first challenge feels like an oxymoron. Mobile display ad impression supply today is faced with two issues challenging the
economics. First, there is an incredible glut of supply. On the InMobi mobile ad network alone, there were 287 billion impres-
sions available in Q1 2012. There are billions of devices all producing more potential ad inventory than the industry could
possibly sell, through social media, gaming, apps, the mobile Web – you name it. This means the value of that inventory–even
if it could be easily tracked and targeted–will face downward pressure. It’s a fundamental of economics we cannot avoid.
To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
5. Challenge #2: The True Globalization of Digital Media
Mobile, for the first time in media history, operates in a truly global environment. Games developed in Japan and Sweden are
among the largest mobile properties in America and Africa. Even more so than the traditional Web, mobile has cut across
every barrier imaginable. Impressions from familiar apps and publishers are available in every corner of the globe. Sales
teams and agencies able to make the most of these impressions, however, are not. They remain concentrated in certain cities
around the world, focused on individual geographies and on the legacy business of desktop.
Instead of achieving new scale and coordination in global digital media, the industry is treating mobile like desktop when it
comes to creative, planning and buying. We need to take advantage of the global efficiency in mobile. This will bring bigger
buys and higher CPM into play.
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6. Challenge #3: Tracking is Broken
While this issue is third on our list of seven, it is the biggest issue of all. There is no consistent and universal way to identify,
recognize, track and target mobile devices while respecting consumer choice. Despite the enormous potential of the mobile
advertising market, the types of tools marketers have come to expect and rely on in the desktop world just aren’t available. It’s
a big problem and many in the industry are working to address it.
What is your greatest concern when
it comes to mobile advertising?
48% Tracking and measurement
measurement
21% Cost and complexity of execution
Cost and complexity
of execution
15% Privacy
13% Ability to scale
3% Safety of my brand name
brand name
But simply transferring the old solutions to the mobile world isn’t going to work: cookies aren’t stored well; UDID and other
GUIDs are only present in applications and may or may not be available long term depending on the whims of operating
systems and manufacturers who control them; and other approaches – such as invasive swishing techniques that drop an
unsolicited identifier on a device – either don’t provide the necessary performance or raise valid privacy concerns.
We need to embrace new approaches that free the industry from the current overlords of digital media – Google, Apple,
Facebook, etc. If we collectively hand over control of tracking to them, our collective interests will not be served.
Challenge #4: Privacy is Paramount
No matter how you look at it, privacy is a requirement that can’t be ignored. Whether this is the existential crisis some make it
out to be or just a tempest in the digital teapot, it is high on the list for regulators and the public alike; and this means it needs
to be on the minds of marketers as well. Failure to come up with a credible and effective means to protect consumers’ online
privacy – whether on mobile devices, traditional computer platforms or on emerging or yet unimagined devices – will result in
the failure of mobile advertising to reach its full potential.
94% of consumers consider
Of Consumers Consider
online privacy important
Online Privacy Important
For you, personally, how important is
the issue of online privacy?
53% A really important issue
really important issue
that II think about often
that think about often
41% A somewhat important issue
somewhat important
issue that I about sometimes
that I think think about
sometimes
6% Not much of an issue / /I I hardly
much of an issue
hardly everabout about it
ever think think it
Consumer concerns regarding privacy are real and increasing. A recent TRUSTe survey shows 94 percent of consumers
think privacy is important and 60 percent are more concerned about privacy now than they were a year ago. This increasing
awareness is a proof point that companies must include privacy throughout the product design process. Privacy cannot be an
afterthought. Period.
To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
7. Challenge #5: Fraud is Rampant
Fraud is endemic in the mobile marketplace. This issue is linked to globalization, but there is a much greater issue with fraud
than major industry players are willing to admit. Most executives know the problem accounts for between 20 to 40 percent of
all clicks – and that’s a big issue – even if they don’t talk about it. Why? Advertisers pay for it.
“With the massive rise of mobile technology globally comes the inevita-
ble appeal to crooks and criminals for fraud,” comments Ori Eisen, founder and
CIO of 41st Parameter. “While it’s hard to quantify specifically in the early
days, ultimately economics prevail and the impact to ROI in mobile advertising
due to fraud will show up in the industry eCPMs. Dealing with this issue now will
help improve the economics of the industry for the future.”
Our opinions aside, a recent report from an advertiser on Facebook claimed that 80 percent of the clicks received on its
Facebook ads came from bots, while another report issued this year claimed that as many as 40 percent of clicks on mobile
advertisements are “worthless,” the result of either accidental or fraudulent clicks. Click fraud is rampant in the mobile space
because many advertisers lack the ability to accurately identify the devices that generate clicks.
Challenge #6: The Download Fixation
With all the issues it faces, the industry is expending an inordinate amount of its time and technical resources to find new and
better ways to drive app downloads. This is because apps have been the only real bright spot in the industry. Unfortunately this
fixation is failing the broader advertiser community. It is motivating many players to act against consumers’ best interests with
high frequency (i.e. Spam!) campaigns that are completely untargeted and use invasive tracking techniques such as swishing
or permanent identifiers hidden from consumers.
App download performance is important to be sure, but it is only one of many tracking use cases for the mobile industry. Based
on AdTruth research, the overall addressable market is nearly $40 billion, as shown in the chart below:
Use Case
Targeting $17.8
Reach & Frequency $5.7
Performance Tracking $5.1
Data Enrichment $2.5
Re-Targeting $2.5
Data & Analytics $2.5
Privacy Management $1.0
Fraud Prevention $1.0
Total Addressable Market
Until solutions are put in place that look beyond download tracking and address the other–often far larger–use cases, the
economics of the overall industry will not reach full potential.
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8. Challenge #7: Mobile Is Its Own Persona
One final and critical challenge comes as a simple truism: change is hard. After struggling for 15 years to figure out digital
desktop, the natural tendency is to treat mobile as an extension of desktop. Let’s look at the issue in a different yet familiar
way. For decades, marketers have personified their brands and target audiences to help inform the strategy, creative and
tactical marketing plans that would drive ROI. When we personify mobile and desktop, the vast differences between the two
platforms become apparent:
Challenge: Mobile Is Different Than Desktop
Desktop Is... Mobile Is...
Work & Task Oriented Highly Social & Entertaining
More Static, Less Interactive More Dynamic, More Personal
Cookie-based App-based
Pages, Time, Engagement, Downloads,
Click Measurement Sharing Measurement
Stationary Mobile
Mostly Solitary Often Shared
Planned Activity Instantly Gratifying
There are huge differences between the channels and these require very different strategies, tactics, technologies, media
plans and measurement. Certainly you can find common ground, but more frequently it’s uncommon ground and if we simply
treat mobile as an extension of desktop, mobile advertising ROI will suffer.
Improving the Economics of Mobile Advertising
So how have the seven challenges described above manifested themselves? The impact has been wide and varied, but the
best generalization is mobile advertising that feels like spam to consumers with incredibly high frequency campaigns, unrec-
ognized brands and invasive experiences that are both seen on our devices and read about in the news. The result is low
eCPMs and a mobile advertising environment that remains fundamentally broken. It’s paramount that we as an industry build
(or rebuild?) credibility with consumers and establish healthy mobile ad practices that focus on long term viability. If we blow it
in the mobile ad space, we may not have much of a future with the brands that rely on us all to build their relationships with
consumers. Mobile is either the great promise or great failure of this generation of advertising professionals.
To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
9. A Bear Market for Mobile Advertising eCPM
According to the recent research from Mary Meeker of KPCB, mobile eCPM is only one fifth of that on the desktop ($0.75 vs.
$3.50 in the US market.) As the volume of time spent on the mobile Web reaches parity (and eventually surpasses the desktop
Internet, as is already the case in Japan and India) the gap between these figures needs to close. That won’t happen in the
current environment however, and the industry as a whole will continue to suffer as a result.
India Internet Traffic by Type, Desktop vs. Mobile, 12/08 - 5/12
100%
80%
% of Internet Traffic
Desktop Internet
60%
Mobile Internet
40%
20%
0%
12/08 4/09 8/09 12/09 4/10 8/10 12/10 4/11 8/11 12/11 4/12
No More Doom and Gloom: Practical Advice to Solve the Problem
A true statement in business: the greatest challenges are also the greatest opportunities. So enough of the doom and gloom!
There are practical and relatively quick ways to solve the problems we face. For an organization or team that wants to act,
you can do so quickly. It’s largely a matter of summoning the will power to make these changes without fear of the hard work
and potentially short-term costs that will intimidate many and leave the door wide open for a few.
None of the challenges laid out are trivial, but a team focused on the mobile channel can consider all that’s been said here
and build four concepts into planning and strategy to begin to improve their position and that of the industry as a whole. These
four key elements include:
1. Embrace globalization and organize in mobile around the global opportunity;
2. Use and demand consumer friendly tracking technology now available in the market to open up more advanced
digital media use cases in mobile;
3. Understand and act on the core differences between mobile and desktop advertising when it comes to strategy,
technology and planning;
4. Build & measure mobile creative with the advantages (and differences) of the channel in mind.
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10. Solution #1: Embrace Globalization
Mobile is global, but only if you organize around it. Mobile specialist agencies focused on the nuances of the channel are
organized with the global nature of mobile in mind.
“Forward thinking brands are already managing their mobile marketing strategy
with globalization in mind,” comments Carl Uminski, COO of global mobile market-
ing company Somo. “Our clients plan, buy and measure globally in the mobile
channel. It’s truly a revolution in how they do business brought on by the unique
global nature of mobile.”
Are you setup to strategize and plan
your mobile strategy on a global basis?
63% No
37% Yes
Yes
This change is the simplest to understand, yet potentially the hardest to implement. Only 37 percent of the 128 companies
who attended our recent MMA webinar are organized around the mobile opportunity globally, and these represent a biased
set of companies already predisposed to mobile. Imagine the numbers for a more representative set of marketers! Organiza-
tional change is a hard shift that has to come from the top and must have buy-in across all levels and partners. For those that
make the change, the efficiency in creative development, media planning and measurement is huge. Smaller teams accom-
plish more in mobile as their work covers more countries with regional changes rather than entirely new plans and operations.
Solution #2: Demand and Use Scalable, Consumer Friendly Tracking Technology
Three of the biggest problems we face – globalization, the odd combination of massive inventory that is also highly fragment-
ed, and privacy – relate to a lack of tracking in mobile. We desperately need a scalable and universal tracking technology to
deal with these challenges, but the consumer experience must also be protected in the process. Because there are no effec-
tive tools to identify audiences in the mobile channel, simple capabilities like frequency capping and targeting are unavail-
able. This means people may be bombarded by irrelevant impressions, feeling spammed by advertisers that they might trust
otherwise if they had better targeting and better capping on campaigns.
“It’s critical, as an industry, that we fully capitalize on the mobile opportunity
without impacting the consumer experience or risking their trust in us as an indus-
try,” comments Paul Gelb, Vice President and Mobile Practice Lead at Razorfish.
To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
11. Our privacy-by-design approach at AdTruth – based on device recognition and increasingly referred to as server-side
tracking – has demonstrated again and again its ability to accurately identify members of specific audiences for marketers
in a consumer friendly way. With patented technology at its core, AdTruth has delivered documented lift of more than 200
percent in the mobile ecosystem relative to cookies. This may sound too good to be true, but it is the kind of performance
improvement that is needed to make mobile as effective a platform as possible. It’s also important to note that the tracking
technology we have developed has applications beyond traditional desktop and emerging mobile environments. As new
platforms become available in the future, our device recognition approach to audience tracking will continue to be effective.
User recognition and longer-lasting data are the keys to improving mobile advertising. Targeting to reach the right audiences
is the most critical element of digital advertising and a key tactic that will improve eCPM. The vast majority of online ad dollars
(more than 50 percent) are spent against a data driven target with an appropriate cap on frequency to avoid spamming, but
this isn’t yet happening on mobile at scale. We need to get data into the mobile ecosystem in a privacy secure way, offer
targeting at scale and cap our campaigns to protect our relationship with the consumer. We must commit to a great consumer
experience with applications, content and ads. Consumers are more educated in the post PC era, and we need to improve the
experience accordingly. [Details on the various audience recognition and tracking alternatives are described in our white
paper “Solving the Audience Recognition Crisis.”]
“We must put the user in the center of the mobile advertising universe,
and build an amazing experience around them,” comments Anne Frisbie, Vice
President and Managing Director of InMobi North America. “Data is the DNA
that helps us achieve that goal.”
User data and audience recognition go hand and hand, so we inevitably have to solve both to unlock the full economic poten-
tial of the mobile advertising world. Cookies simply don’t work; UDID or Android ID are limited and put control of the future of
our industry into the hands of unwanted overlords Apple and Google, and other approaches like IP targeting just aren’t good
enough to get the job done. This is one area that will reward early adopters more than any other and the solution is starting to
be embraced widely in the industry.
As a final critical aspect of this solution, we must promote and protect consumer privacy. Privacy is such an important issue
that it can’t be overstated. It’s not important simply because consumers and regulators are taking it seriously, but because
major brands don’t want to do anything that might compromise their reputation and relationship with customers. As an indus-
try, we need to take a pro-privacy approach to individuals’ information. People need to understand what information is being
collected, how it is being used and by whom; they also need to be given some control over that use. While many pay lip service
to privacy, the issue deserves more than that.
Privacy needs to be by design – not by accident and (hopefully) not by fiat. Our approach at AdTruth has been to tackle privacy
head on. From day one we have sought the advice of experts, the approval of regulators and the certification of third-party
bodies. Protecting privacy cannot be an afterthought.
| 10
12. Solution #3: Understand and Act on the Core Differences Between Mobile and Desktop
It would be easiest to simply reapply all the hard learning of desktop to mobile. That temptation, so far, has prevailed, in our
collective approach to mobile advertising. The problem is that the differences between the two are vast, and our tactics and
strategies need to reflect that.
Examining the platform personas defined earlier in this paper, some obvious conclusions can be drawn. Mobile is…
1. Highly social and entertaining. Our advertising should be the same way. No format since the advent of TV has
provided so much creative opportunity. Using it for flat 320 x 48 banners exclusively misses the point entirely.
2. More dynamic, more personal. Mobile fills the gaps in our lives the way newspaper and radio used to, but is on
demand and with us 24/7. The interplay among screens is an incredible opportunity to reinvigorate advertising.
Creative and planning, divided between digital and “offline” TV/Print/Radio in the late ‘90s, needs to converge
again. This is especially true with the pending transition to Smart TVs.
3. Application Based (Not Cookie Based.) The application is a great tool, but only when it truly adds value. If a
brand cannot offer the content needed to provide a compelling app, sponsoring one that does can be an excellent
tactic. Whatever your decision, mobile does not START with apps; it ENDS with apps. Start with the basics and if
you can’t build it, sponsor it! It’s a tried and true approach.
4. Engagement, Downloads, Sharing. Impressions and clicks are functional and do not capture the full breadth of
mobile. Social media and sharing, gaming, apps and content consumption all need to be measured. Small numbers
can have a huge multiplying effect and we have the technology to report back. Basic tracking aspects of reach
frequency and clicks still apply, but the incremental nature of mobile opens up
new challenges (and measures).
5. Mobile. Obviously. Mobile is mobile, but we leave the incredible richness of the device unharnessed in most of what
we do. Platforms – built around HTML5 technology – are evolving that will allow agencies to quickly build and
re-purpose creative and easily tap into the features of the device for creative, calls to action and measurement –
features built around its main purpose to communicate, connect and live with us wherever we go. It’s mobile. It’s a
lean back device. It’s around when other devices are around. Let’s take advantage of that.
6. Often Shared. Unlike the desktop, mobile is about real-time, anytime sharing. A picture. A text. A tweet. The highly
functional and work-oriented aspects of the desktop are almost perfectly juxtaposed (except for email) to the
social, casual and local use of the mobile device.
7. Instantly Gratifying. Like offline media, mobile is a lean back experience that is highly conducive to good
advertising. Impulsive entertainment, purchasing and sharing open up a huge opportunity for us as an industry.
Running display ads repurposed from desktop will not impress consumers and may turn them against us.
The challenge is to convince the brands so reliant on the industry to participate more fully. While we have a long list of AdAge
Top 100 brands in trial mode, we are not seeing familiar brands, or many brands that can really afford to capitalize on all the
potential outlined in this paper. Because the world of mobile advertising faces so many challenges, it has not yet become a
channel for premium impressions. Instead, remnant inventory, unfamiliar brands and terabytes of relatively cheap digital
entertainment offers dominate the channel. Consumers need to see great ads from premium brands at scale. This legitimized
desktop advertising, and it will legitimize mobile.
We must convince the major brand advertisers to invest and experiment. Brands and agencies need to remember that the
exciting capabilities available today are only the tip of the iceberg. The potential for marketing via the mobile channels is yet to
be fully understood, let alone tapped. That it remains a nascent market should not stop exploration and experimentation. In
fact, it is only by exploring that the industry will be able to really alter the economic opportunities presented by mobile.
Solution #4: Build and Measure Mobile Creative with the Advantages (and Differences)
of the Channel in Mind
We have to embrace the fact that mobile offers far more creative opportunities than desktop. Knowing that you are reaching
your intended audience in an effective and privacy-assured way is vitally important, but it isn’t the entire answer to unlocking the
potential of the mobile ecosystem. An equally important piece of the puzzle is for advertisers and marketers to come up with
new and more creative campaigns and approaches that take advantage of the unique characteristics of mobile.
Mobile is a long list of verbs that are fun, viral and make for great creative. We can shake, swipe, point, play, message,
Facebook, tweet, map, call, listen, click, photograph, share, email, search, view, check, read, calendar, video, buy, calculate,
store, and much more.
We can design campaigns that address all phases of the purchase funnel, leverage sponsorships and compliment other
channels, especially TV.
To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com
13. These devices are deeply personal, always on, within an arm’s length at all times and have the power to do incredible things.
It would be extremely unfortunate if their use was limited to display advertising. Looking at the ways people use their devices
listed above that don't yet have a CPM attached to them, one can only begin to imagine some of the new approaches that will
create a tighter and more engaging bond between a brand and its customers.
Amazing examples from the creative geniuses at InMobi Studio appear below; or click to see them in action here:
Mobile increasingly offers the practical functionality of traditional computing platforms conducive to direct response market-
ing. Combine this with the more lean-back entertainment and social uses of mobile devices and you have an incredible oppor-
tunity for both brand and direct response that could ultimately surpass desktop. For millions of people, their mobile device is
the center of their digital life. Marketers understand the potential of mobile but face obstacles on the path to success.
While the goal is to bring up the price of CPMs on mobile, that is being thwarted in some situations by the ongoing explosion in
inventory. This can be addressed through a better definition and understanding of the value of specific inventory types. If
mobile continues to be driven by a remnant mentality and a dearth of premium brands, it will not reach its potential. Marketers
also should begin thinking more creatively about what could be considered “inventory” on mobile platforms. Certainly display
and in-app opportunities have been recognized, but now we are seeing “sponsored stories” on Facebook and targeted SMS
campaigns. Taking advantage of these emerging channels–even though they may be viewed as yet another increase in
inventory–can deliver greater value.
| 12
14. Parting Thoughts
The Facebook Example
Lest there be any question on the economic impact of the mobile
market, one need look no further than one of the leaders of the
digital ecosystem. In the frenzied lead-up to Facebook’s IPO
earlier this year, one of the most consistent and damaging
concerns centered on the company’s lack of a successful mobile
monetization strategy. In fact, the concerns were grave enough to
prompt the SEC to compel Facebook to amend their S-1 filing to
clarify the extent to which the growing shift of its users to mobile
devices could negatively impact their revenue. Here is the
language Facebook added to the “risk factors” section of the
filing:
“We believe this increased usage usage of Facebook on devices
“We believe this increased of Facebook on mobile mobile
has devices has contributed to the recent trend of our daily active
contributed to the recent trend of our daily active users
(DAUs) increasingincreasing more rapidly than the increase in the
users (DAUs) more rapidly than the increase in the number of
ads number ofIf ads delivered. If users increasingly access
delivered. users increasingly access Facebook mobile
Facebook mobile products as a substitute for access through
products as a substitute for access through personal computers,
and personal computers, successfully implement monetization
if we are unable to and if we are unable to successfully
strategies for our mobile users, or if we for our mobile users, or if
implement monetization strategies incur excessive expenses
we incur excessive expenses in this effort, our financial
in this effort, our financial performance and ability to grow revenue
performance and ability to grow revenue would be negatively
would be negatively affected.”
affected.”
Conclusion
The stakes have never been higher. When we read and hear that
mobile advertising is “stuck in a rut,” we should all be extremely
concerned. Mobile is the near future of advertising and we must
get it right quickly to preserve a healthy economic future for the
industry. The continued abuse of the channel, the poor experi-
ence defining mobile advertising and free-for-all approach to
driving reaction and response from consumers will never get us
where we need to be. All parts of the industry – publishers, adver-
tisers, agencies and 3rd party technology players – have to
coalesce around these solutions. Some may be old news or
obvious, while others open up new ideas and fresh thinking. Taken
together, we can solve the problem. Imagine a 3x to 5x increase in
mobile eCPMs. Instead of a $5 to $6 billion opportunity today, we
would be talking about a $15 to $30 billion opportunity. It’s well
within our reach. And what happens when we succeed? Every-
body wins – most importantly the digital consumer. If we lose
them, we lose everything and we should not let that happen.
To learn more about AdTruth, visit www.adtruth.com or contact us at info@adtruth.com