MediaMind_Mobile_Advertising_2011

1. MOBILE RESEARCH
Tiny Screen
Huge Results
Maximizing Mobile Advertising Performance
1.15
0.07 %
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2. TINY SCREEN
HUGE RESULTS
MAXIMIZING MOBILE ADVERTISING PERFORMANCE
1.15%
1.4%
The best time
CTR
for mobile
Users are most likely
0.8% to click mobile ads in
the evening
0.07%
0.0%
0:00 11:00am Mobile banners Standard banners 8:00pm 11:00pm
0.37%
iOS
The big Apple
Apple’s iOS has
double the stand-
ard banner CTR
performance of
Android OS
0.14% 0.09% 0.07%
Apple Android Palm OS BlackBerry OS
0.61%
More clicks 0.37%
than your PC 0.40%
Mobile standard The busy
banners get nine BlackBerry
CTR
times the CTR of Business oriented
browser banners BlackBerry users
0.20% are less likely to
click on ads
0.07%
Mobile standard banner Standard banner
0.00%
Apple LG Motorola Samsung HTC Verizon BlackBerry Other
Click through rate Served impressions
Entertainment
and Retail
standout
1.04% Nearly all verti-
CTR
cals outperform
browser banners.
0.84% 0.73 %
0.58 %
0.47%
0.19%
Entertainment Retail Financial Travel News/ Media Electronics
$2550
2014
Doubling in
three years $2037 retweet this
eMarketer expects mobile 2013
ad spending to double $ 1501
from 2011 to 2014 2012
$1102
2011
743
$
$ 416 2010
2009
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3. Table of Contents
4 Key Mobile Trends
5 Reaching One of Every Three Consumers
6 HTML5 iPad Ads at Your Fingertips
7 Mobile Ads Outperform Browser Based Standard Ads
9 You can beat the CTR, but can you beat the ROI?
10 Handset Performance—iPhone Leads the Way
12 Retail and Entertainment with the Highest Performance
13 The Evening Browse
15 Conclusion
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4. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
Key Mobile Trends
1 Mobile ads deliver significantly higher Click Through Rate, as compared to browser banners.
2 7pm to midnight is the most effective time for mobile advertising, with the highest CTR.
3 The iPhone delivers the highest Click Through Rate, BlackBerry the lowest.
4 The CTR performance of Apple’s iOS is nearly double that of Android based phones.
5 The Retail and Entertainment verticals achieve the highest CTR.
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5. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
Reaching One of Every Three Consumers
Mobile display advertising, which until recently was regarded as Now that many of the technological barriers on mobile browsing
‘experimental’ or only for advertisers on top of the innovation have been lifted, industry analysts predict that spending on mobile
curve, has been gaining firmer ground as a mainstream channel. advertising is going to increase significantly. eMarketer’s analysts
In the past year, MediaMind has seen more blue-chip advertisers project that mobile ad spending will double from 2011 to 2014,
allocate a portion of their budget to mobile, complementing their amounting to more than $2.5 billion, or 7.5% of spending on
investment in the traditional display and search. online advertising.
The increasing popularity of smartphones, including Apple’s iPhone, According to comScore, 34.4% of US mobile
has significantly increased the reach of online display advertising
among young and affluent consumers, one of advertisers’ most
phone owners and 28.8% of European mobile
prized audiences. Today, according to comScore, 34.4% of US owners use their phone for online browsing.
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
significantly more devices are able to display banners effectively.
According to eMarketer, by 2015, 43% of US mobile phones will
be smartphones, up from 31% in 2011.
Chart 1: US Mobile Ad Spending, 2009-2014
Note: Includes display (banner, rich media and video), search and messaging-based advertising.
Source: eMarketer, Sep. 2010.
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6. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
HTML5 iPad ads at your fingertips
Tablets are an opportunity to take engagement to a new level, by adding touch to the visual stimuli. In the case of the iPad,
advertisers need to leverage the power of HTML5 instead of Flash to create powerful 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
footage in a way that corresponds to the film’s augmented-reality-based plot. Using fingertips, users can drag and resize clips
on top of the web page’s content, taking advantage of the full screen of the iPad to convey the advertising message. The
“immersive trailer” ads were produced in dual HTML5 formats for the iPad and Flash ads were created for Flash-enabled sites.
To view the full ad, click here: http://bit.ly/AvatarDemo
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7. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
Mobile Ads Outperform Browser Based Standard Ads
They may be tiny, they may be new, but mobile ads trump browser based standard banners. A review of more than 230 million mobile
impressions shows that users are more likely to click on mobile ads than on Standard Banners.
Chart 2: Cross Channel Campaign Performance by Ad Format
Note: Includes campaigns with at least one active mobile ad.
Source: MediaMind Research, Q4 2010 - Q1 2011 North America.
The higher performance of mobile can be Although mobile banners are relatively small and mobile browsing
on some phones is still somewhat cumbersome, the high Click
attributed to the technology innovation
Through Rate (CTR) isn’t the result of fat fingers. It can be attributed
curve. New types of online advertising tend to the technology innovation curve. New types of online advertising
to achieve higher CTR that declines over tend to receive higher CTR that declines over time, once advertising
technology becomes more widespread and mature.
time, once the technology becomes more
This phenomenon was also evident in the early days of browser
widespread and mature. based banners. Global performance data for Standard Banners
show that CTR for Standard Banners declined from 0.15% in 2006
The analysis used a sample of cross channel campaigns. These to 0.09% in 2010 (and to 0.07% in the US). The main reason for
campaigns utilized both mobile and browser based banners, and the decline is that the additional clicks that users were willing to
therefore it is possible to compare similar creatives across channels make did not catch-up with the huge increase in impression volume
to minimize skewing of results due to creative implementation. The during these years. Therefore, advertisers in 2006 enjoyed less
analysis evaluated Click Through Rate (CTR), the only comparable crowded online advertising space, and were thus more likely to get
metric between mobile and Standard formats. clicks from users—similar to the mobile display landscape today.
Overall, advertisers have achieved significantly higher response Mobile banners aren’t just on top of the innovation curve, but also
from mobile advertising as compared to more traditional display. occupy a bigger portion of the screen relative to browser based
Results show that for the same campaigns, mobile ads outperformed banners. In many cases, there is only one banner on the page.
all other formats with a Click Through Rate of 0.61%, while the Furthermore, people tend to browse with their phone closer to
Standard Banners recorded a CTR of 0.07%. their eyes, unlike the screen of a laptop or a desktop.
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8. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
A study by InsightExpress also confirms that mobile banners Mobile banners occupy a bigger portion of the
outperform browser based banners for branding. InsightExpress
screen as compared to browser based banners.
compared the response of users who were exposed to browser
based ads and mobile ads, and compared them to a control group In many cases, there is only one banner on the
of unexposed users to measure the brand impact of the ads. page.
Chart 3: Mobile’s Effect on Brand Metrics
Note: *Delta is defined as point difference between the exposed and the control groups.
Source: InsightExpress, May 4, 2010. Cited from eMarketer.
Results show that mobile outperformed browser based banners across all brand metrics by a factor of three. Mobile can help advertisers
to drive consumers through the purchase funnel even more effectively than larger browser-based banners.
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9. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
You can beat the CTR, but can you beat the ROI?
While the evidence shown here clearly demonstrates the higher effectiveness of mobile in CTR and branding performance,
mobile advertising still carries higher costs, specifically when compared to Standard. Nevertheless, even when considering
the incremental cost, mobile still delivers a higher return on investment (ROI).
An analysis of a recent campaign served by MediaMind of a large global financial services firm that used a combination of
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 offset the
higher cost of mobile media. In this campaign, mobile proved to be the most financially rewarding format in the media mix.
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10. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
Handset Performance ‫ ־‬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.
Chart 4: Performance by Manufacturer
Source: MediaMind Research, Q4 2010, North America.
An analysis of CTR and the proportion of impressions served by device reveal high variability between manufacturers. Apple’s iPhone and
LG devices lead the pack in terms of CTR performance, although a relatively low proportion of impressions were served to LG devices.
RIM’s BlackBerry, which comes in second in terms of the proportion of impressions served, also commands the lowest CTR.
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11. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
Chart 5: Performance by Operating System
Source: MediaMind ,Q4 2010 and Q2 2011, North America.
Similar analysis of performance by operating system shows that the performance of Apple’s iOS is nearly double that of Android based
phones.
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12. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
Retail and Entertainment with the Highest
Performance
Nearly all verticals achieved a relatively high CTR of between 0.3% to 1.2%, which is higher than the benchmark for browser Standard
Banners. Entertainment and Retail enjoy the highest mobile CTR, while Apparel and Government have the lowest CTR. Government has
lower CTR performance also for browser based banners.
Chart 6: Performance by Vertical
Source: MediaMind ,Q4 2010 - Q2 2011, North America.
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13. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
The Evening Browse
Mobile browsing habits are a whole different ball game when compared to traditional browsing. A large proportion of the browser based
banners are viewed between 9am and 5pm, when people are at the office. An analysis of impressions served by hour shows that the
most popular hours for mobile browsing tend to be early evening, between 7pm to 9pm, with elevated activity throughout the evening.
Chart 7: Mobile and Browser Ads Serving by Time of Day
12am
1am
2am
3am
4am
5am
6am
7am
8am
9am
10am
11am
12pm
1pm
2pm
3pm
4pm
5pm
6pm
7pm
8pm
9pm
10pm
11pm
Source: MediaMind ,Q4 2010-Q1 2011, EST, North America.
Furthermore, an analysis of Click Through Rate by hour shows that performance is also above average between 7pm and midnight. CTR
reaches its peak at 8pm. Serving ads in the evening can prove much more effective as compared to earlier in the day, and can reduce the
cost per click of mobile.
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14. Tiny Screen, Huge Results. Maximizing Mobile Advertising Performance
Chart 8 : CTR for Mobile and Browser Ads by Time of Day
12am
1am
2am
3am
4am
5am
6am
7am
8am
9am
10am
11am
12pm
1pm
2pm
3pm
4pm
5pm
6pm
7pm
8pm
9pm
10pm
11pm
Source: MediaMind ,Q4 2010-Q1 2011, EST, North America.
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15. Conclusion
Mobile is moving from the fringe to the mainstream, helped by the tailwind of higher performance
and better ROI. Today, mobile ads reach one of every three consumers, and mobile spending is
expected to double by 2014.
As in the early days of browser based display, the innovation of mobile advertising elicits higher
response from users. Mobile achieves the highest performance out of display ad formats for CTR,
leaving Standard Banners in the dust. Mobile also outperforms browser based banners in branding
performance.
Evidence shows that browsing experience does affect users’ response to online mobile advertising.
Apple’s iPhone achieves the highest CTR performance, while BlackBerry the lowest. The CTR
performance of Apple’s iOS is nearly double that of 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 performance, and evidence of better ROI than traditional display,
mobile advertising can complement any display campaign. Don’t let the tiny size fool you; mobile
can yield huge results.
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