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© 2015 eMarketer Inc.
Key Trends in Mobile Advertising: Milestones,
Misconceptions and ‘The Message’
Cathy Boyle
Senior Analyst, Mobile
June 11, 2015
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© 2015 eMarketer Inc.
Agenda
 Two big shifts in ad spending
 Key differences between mobile and desktop advertising
 Four common misconceptions
 The state of mobile creative—getting the right ad to the
right person

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© 2015 eMarketer Inc.
Two Significant Shifts in
Ad Spending Will Occur

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1. Mobile
search ad
spending will
exceed
desktop
search ad
spending for
the first time
in 2015
Mobile
tipping point

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© 2015 eMarketer Inc.
Factors fueling mobile search ad spending
 Mobile’s increasing share of key search metrics
 Search engines have made mobile advertising easier
 Product listing ads (PLAs) are available and popular on
mobile
 Advertisers are getting better at setting objectives for
smartphone search campaigns
 Better attribution tools are coming to market

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© 2015 eMarketer Inc.
2. Display ad
spending will
also tip
toward mobile
this year
Mobile
tipping point

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Factors fueling mobile display ad spending
 Rapid growth of mobile-social ad spending
 Increased availability of mobile rich media and mobile
video inventory
 Increased interest in those more immersive ad formats
among brand advertisers

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© 2015 eMarketer Inc.
Key Differences
Between Mobile and Desktop
Ad Spending

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Mobile advertising includes two categories of
spending that do not exist on desktop
1. Spending by channel 2. App-install spending
VS.
app web

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© 2015 eMarketer Inc.
In total, US advertisers spend more on
advertising in apps than on mobile websites
 72% of mobile
ad dollars will
be spent to
advertise in
apps in 2015
 But spending in
both channels
will increase by
double-digit
percentages

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© 2015 eMarketer Inc.
Mobile app install ad spending is not as big a
share of mobile ad spending as many believe
 10.4% of total
mobile ad
spending in 2015
 Nearly 20% of
mobile display
ad spending
The share of spending is minor, but the
total amount spent on app installs is not

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© 2015 eMarketer Inc.
Common Misconceptions

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© 2015 eMarketer Inc.
Misconception #1: Immersive brand experiences
are limited to desktop
“Mobile is a creative
wasteland of tiny
banners”
Mobile rich media and mobile
video ads will generate nearly half
of US mobile ad revenue in 2015
Source: eMarketer, Sept 2015
Banners
52%
Rich
Media
30%
Video
18%

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© 2015 eMarketer Inc.
Mobile video
consumption
is on the rise,
and with it
comes more
immersive ad
opportunities “We are seeing great momentum in mobile
advertising on YouTube.
Mobile revenue on YouTube is up
more than 100% year-over-year.”
—Omid Kordestani, Google’s interim chief business
officer and special advisor to the CEO
(Source: Google’s Q4 2014 earnings call)
“Globally, over 65% of Facebook video
views occur on mobile. Marketers have
followed this trend and are using video to
help people discover and learn about their
brands.”
—Sheryl Sandberg, chief operating officer at
Facebook (Source: Facebook’s Q4 2014 earnings call)

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© 2015 eMarketer Inc.
“One big misconception is mobile search is just an
extension of what you’re doing on desktops and
laptops. In the era of automatic mobile opt-in, it’s
very easy to not pay attention to the
specific strategies you should be doing on
mobile. But that’s not going to drive success.”
—Jeremy Hull, director of bought media at iProspect
“Advertisers are still shrinking online ads and using
them in mobile vs. coming up with breakthrough
ways of engaging users on those devices. You
really have to understand what the user
experience is and engage with mobile
users in the right manner.”
—Maria Mandel Dunsche, vice president of marketing
and media innovation for AT&T AdWorks
Misconception #2:
What works on
desktop will work
on mobile

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© 2015 eMarketer Inc.
But treating mobile
the same as
desktop is a
mistake that keeps
getting repeated
62%
38% Did NOT design
mobile-specific
campaigns
Designed mobile-
specific campaigns
Despite having intentions to
create mobile-specific
campaigns in 2014, a majority of
marketers polled did not.
Campaign Tactics Used by
US Marketers in 2014
Source: offerpop, “The State of Digital
Marketing Trends, The 2015 Report”

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Misconception #3: It’s impossible to track
consumers outside of desktop
 Cookies work on most Android
devices for mobile web tracking
[And 52% of US smartphone
users have Android phones]
 Apple’s Identifier for Advertisers
(IDFA) and Google’s Advertising
ID make in-app tracking
possible
 Deterministic and Probabilistic
ID’s bridge channels and
devices
“Audience targeting isn’t
possible on mobile devices
without cookies”

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Misconception #4:
Measurement is
only reliable on
desktop
Mobile is
“The Wild West”
64%
73%
49%

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Multiple metrics
are used to
gauge the
effectiveness of
mobile
advertising

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The State of Mobile
Creative

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Getting the right message to the right person is
the key to success

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A lot of
attention is
being paid to
getting the
message to
the right
person
(audience)

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“Audience
targeting”
was the top
priority for
US and UK
marketers
polled by
Marin
Software in
Q4 2014

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1. Facebook shifting to people-based advertising
2. Social logins enhancing audience profiles
3. Understanding people through places they visit
Advancements in several areas have improved
advertisers’ audience-targeting capabilities

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© 2015 eMarketer Inc.
Through Facebook, advertisers can target ads to
specific audiences, both on and off its platform
 On Facebook:
 Custom Audience tool
 Off Facebook:
 Audience Network (mobile websites)
 Atlas (mobile websites)
 LiveRail (mobile apps)

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© 2015 eMarketer Inc.
Social logins enable publishers to append robust
consumer information to ad impressions
 Social logins are
increasingly
being used as a
means to
register with a
mobile app/site
 In turn, a wealth
of demographic
information is
being shared

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© 2015 eMarketer Inc.
Data collected via social login can be put in
marketing-automation tools or DMPs to improve
targeting
“The social login allows you to capture
over 200 points of data—all
rich, profiled data—like whether
or not a person is married, where they
got their degree, and what their likes
and interests are.”
—David Scott, chief marketing officer for
customer identity platform provider Gigya

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© 2015 eMarketer Inc.
Location-based tracking/data has become
another means of building audience profiles
 54% of the
US population
will use
location-based
services on a
mobile device
in 2015

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© 2015 eMarketer Inc.
In aggregate, the places a person visits over
time suggest a lot about who they are
“Because humans are creatures of habit,
looking at the snippets of location
information surfacing [from a mobile device]
over the course of several days, weeks or a
month reveals patterns that are strong
signals of the type of person using the
device.”
—Tyler Bell, vice president of product for Factual, a
location platform and data provider

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© 2015 eMarketer Inc.
Is the
development
of the brand
message (the
creative)
getting equal
attention?

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© 2015 eMarketer Inc.
Research
suggests it’s
not—at least
from an
investment
perspective
Only 19% of marketers polled
worldwide in November 2014
planned to increase their
investment in creative and design
over the next three to five years

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© 2015 eMarketer Inc.
Also, a
majority of
US creative
professionals
said they
were not
taking enough
creative risks
with their
projects

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© 2015 eMarketer Inc.
But consumers are willing to share personal data
for the creative teams to use
75% of US fitness
tracker users were
somewhat to
extremely
comfortable sharing
their personal data
for advertising
purposes

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© 2015 eMarketer Inc.
More than 40%
of US internet
users were
comfortable
with marketers
using multiple
types of
personal data
to increase
ad relevance

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© 2015 eMarketer Inc.
Unfortunately,
only 22% of
US digital
marketers
said they
regularly used
data signals
to adapt
brand
messages

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© 2015 eMarketer Inc.
To succeed, greater investment in the creative
message will be required

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© 2015 eMarketer Inc.
Conclusion: The mobile advertising puzzle is
quickly coming together
 Mobile exceeds
desktop for search and
display ad spending
 Ad format types are
improving
 Targeting and
measurement
capabilities are
growing more
sophisticated
 Attention now needs to
turn to “the message”

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Cathy Boyle
Key Trends in Mobile Advertising
 Mobile Audience Targeting: Have Industry Advances Raised
Advertisers' Confidence Levels?
 The State of US Digital Advertising 2015: Mobile Trumps
Desktop, People Trump Devices
 Mobile Apps vs. Mobile Browsers: How Usage, Ad Spending
and Mobile Commerce Sales Differ by Channel
 Mobile Display Ad CPMs: The Going Rates and the Inventory
Advertisers Value Most