Media brix report_20122

The MediaBrix Social and Mobile Gaming ReportSocial and Mobile Gaming Advertising Benchmarks for Brands

Social and mobile gaming advertising data from the second half of 2012

The MediaBrix Social and Mobile Gaming ReportFebruary 2013www.mediabrix.com

IntroductionIt’s no secret that social andmobile gaming advertising hasgained traction over the past fewyears, becoming popular at a timewhen the digital ad industry needsreinvention. Today, marketers arefaced with the challenges ofincreased scrutiny over viewability,calculating performance and afragmented landscape throughwhich they must reach theiraudiences. To address issues ofviewability, audience engagementand brand building, marketers areturning to cross-platform socialgaming advertising, wherein mediais purchased to help marketersachieve a variety of objectivesand campaigns are measured withupper-funnel metrics. As a result,social and mobile gamingcampaigns are able to provideengagement levels and benefitsthat far exceed what standard online advertising canoffer brands. Thus, social andmobile gaming ads continue togain traction amongst marketers.

This report provides a detailed overview andmeasurement of the social and mobile gamingadvertising market for brands, including:

1. Overview2. Benefits for Brands3. The MediaBrix Advertising Benchmarks4. Best Practices for Brands5. Lexus Case Study6. Methodology7. About MediaBrix

The MediaBrix Social and Mobile Gaming Report

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Social and Mobile Gaming OverviewSocial gaming is one of the mostengaging and popular activitiesacross all screens—the desktop,mobile devices and tablets.Currently, Facebook users spendmore than half of their time usingapps and playing social games;250 million users play social gameson Facebook; and half of the U.S.population between the ages of18 to 44 plays social games daily,not to mention older adults areembracing casual gaming.

Mobile and tablet users are alsorapidly taking up mobile gaming.According to eMarketer, the U.S.mobile gaming audience has beenincreasing by double digits since2011 and will continue to do sothrough 2015, when 158.9 millionpeople will actively play games onmobile devices. Users spendmore time with games thanwith any other type of app onmobile devices.

Mobile gamers are also affluent.Shullman Research Center reports that 59% of social gamers earn $75,000+ each year, making them an attractive audience for brands to reach. In cross-platform social gaming campaigns, marketers reach and engage consumers where they are most receptive to marketing messages. As a result, marketers from major industry segments have adopted social and mobile gaming. This includes brands such as Lexus, T-Mobile, Coca-Cola, Lysol, Old Navy, Fiat, Wendy’s andhundreds of others.

Mobile Applications Owned by US Mobile Device Owners, by Income, Nov. 2012 (% of respondents in each group.) Note: ages 18+; *nationally representative sampleSource: Shullman Research Center “Through the Looking Glass: The Luxury and Affluent Markets in 2013,” Nov. 26, 2012

According to eMarketer, the U.S. mobile gamingaudience will increase by double digits through 2015,when 158.9 million people will actively play games onmobile devices.

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Before getting a full understandingof social and mobile gamingbenchmarks and how theycompare to the digital advertisingindustry norms, it’s important formarketers to understand the truebenefits of in-game ads as part oftheir marketing. Below is a list ofbenefits for marketers:

The Benefits of Social and Mobile Gaming for Brands

ScalabilitySocial and mobile gaming isgrowing at a rapid pace. Currently,250 million users play social gameson Facebook and over 100 millionplay games on mobile devices andtablets. What’s more, eMarketerpredicts that by 2014, socialgamers will reach 50% of socialnetwork users, 34% of Internetusers and 141.2 million mobilegamers. These figures show thatsocial and mobile game usersprovide a scalable audience forevery brand.

100% Viewable AdsIn-game ads are gaining traction inthe market at a time whenmarketers are concerned aboutviewability. According to comScore, three out of every ten ads are never even seen, meaningon average only 69% of ads arein-view for the end user. However,viewability is not an issue ingaming. As on television, a brand’sad is always viewable in gamesbecause there aren’t any below- the-fold placements. Additionally,brand marketers will always knowwhere their ads are running andwill get 100% share of voice.

New Creative Ad UnitsSocial and mobile gaming offers anew creative palette. According toa 2012 Harris Interactive study, themajority of Facebook gamers andsmartphone owners preferimmersive, interactive ads tostandard banner ads. Similarly, themajority of Facebook gamers andsmartphone owners prefer user-initiated video ads or those shownduring natural breaks in games topre-roll video ads. In order to keepwith consumer preferences,marketers must reach and engagethem with new creative ad units,including user-initiated video ads,value exchange, social sharing andother interactive features.

Cross-platformPeople are now consuming mediacross-platform. This means theyare gaming cross-platform andacross devices too. According toeMarketer, mobile is offering moregrowth in social gaming than theweb and online, making mobilecrucial to reaching the gamingaudience. Since users areconsuming media and playinggames cross-platform, marketersmust reach their target audiencethis way too.

Upper Funnel MetricsSocial and mobile gaming adscreate an experience similar totelevision commercials. Since theentire advertising experiencehappens within games,marketers have the option torethink how they’re measuringads. They should consideroffering top-of-the funnel metrics.For example, video views, videocompletion rates, engagementrates, social views, social sharesand time spent offer new andexciting ways for brands tomeasure impact.

As on television, a brand’s ad is always viewable insocial and mobile games because there aren’t anybelow-the-fold placements.

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The MediaBrix Social and Mobile Gaming Ad BenchmarksMediaBrix is the leader in socialand mobile gaming advertising forbrand marketers. Over the past sixmonths, MediaBrix has compiledbenchmark data on social andmobile gaming campaigns. Thisreport provides information aboutthe benchmarks and comparesthem to leading digital advertisingformats, comparing performance(CTRs); engagement rates;completion rates; and brand lift metrics.

PerformanceAccording to MediaMind, standard banners ads generate a click-throughrate (CTR) of .10%, rich media banner ads generate a CTR of .12% andrich media expandable banner ads generate a CTR of .19%. Additionally,according to AdParlor, Facebook ads see CTRs ranging from .03% to .11%, respectively. On average, social and mobile gaming ads see an average CTR of 3% and social and mobile gaming value exchange ads—where the users receive a reward for viewing the full ad—see an average CTR of 11%, outperforming all other types of ads. Thus, it outperforms standard banner, rich media, expandable video and Facebook ads.

Engagement RatesAccording to Vitrue, Facebook brand pages have an averageengagement rate of .50% and according to VideoHub, pre-roll ads have engagement rates ranging from .7% to 3.64%. Average social and mobile gaming engagement rates are around 20%, the highest of the reported ad formats.

Mobile Banner

Ads

Social and

MobileGaming

Ads

3%

12%

10%

8%

6%

4%

2%

0%Standard Banner

Ads

Facebook Ads

Rich Media Banner

Ads

Rich Media

Expandable Banner

Ads

0.10% 0.11% 0.12% 0.19%

Socialand

MobileGamingValue

ExchangeAds

11%

Social andMobileGaming

Ads

FacebookBrandPages

0.50%

Pre-RollVideo Ads

3.64%

20%

0%

5%

10%

15%

20%

25%

0.86%

Mobile Banner

Ads

Social and

MobileGaming

Ads

3%

12%

10%

8%

6%

4%

2%

0%Standard Banner

Ads

Facebook Ads

Rich Media Banner

Ads

Rich Media

Expandable Banner

Ads

0.10% 0.11% 0.12% 0.19%

Socialand

MobileGamingValue

ExchangeAds

11%

Social andMobileGaming

Ads

FacebookBrandPages

0.50%

Pre-RollVideo Ads

3.64%

20%

0%

5%

10%

15%

20%

25%

0.86%

Average Engagement Rates

Average Ad CTRs

Average social & mobilegaming engagementrates are around 20%,the highest of otherreported ad formats.

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Source: MediaBrix, VideoHub and Vitrue, 2012 Source: MediaBrix, AdParlor and MediaMind, 2012


Video Completion RatesVideo ad completion rates for social and mobile gaming range higher than ad networks, lifestyle outlets, portals, news outlets and video portals, according to VINDICO data. Social and mobile gaming value exchange ads see completion rates of 91% on average, exceeding most other video ad completion rates in the industry, except for ads seen in full episodes such as those found on Hulu.

Additionally, AdoTube reports that pre-roll video ads have an average abandonment rate of 39% and a 59% view-through rate of a full video ad.

Brand Lift MetricsBrand marketers use panel-based ad effectiveness study metrics to evaluate the success of their online ad campaigns. According to Digiday, brand lift is the metric most often used by brand marketers in North American to measure campaign success.

According to InsightExpress, social and mobile gaming ads can see brand lift metrics as high as 9x the online indus-try normative average, brand favorabil-ity metrics 10x the normative average and purchase intent 10x the normative average. This shows the ads perform for brand marketers.

83%

Newssite

73%

LifestyleSite

74%

Portal

84%

VideoPortal

91%

Social and Mobile

Gaming ValueExchange Ads

93%

20%

30%

90%

80%

70%

60%

50%

40%

100%

68%

BrandLift

Sales InteractionRates

Click-through

Rates

Shares orReposts

DwellTime

29% 29%31%20%

0%

20%

40%

60%

80%

100%

57%

80%

AdNetwork

FullEpisodePlayer

Click-Through

Rate

View-Through

Rate (25%)

View-Through

Rate (100%)

CloseRate

AbandonmentRate

Average Video Ad Completion Rates

83%

Newssite

73%

LifestyleSite

74%

Portal

84%

VideoPortal

91%

Social and Mobile


93%

20%

30%

90%

80%

70%

60%

50%

40%

100%

68%

BrandLift


Click-through

Rates

Shares orReposts

DwellTime

29% 29%31%20%

0%

20%

40%

60%

80%

100%

57%

80%

AdNetwork

FullEpisodePlayer

Click-Through

Rate

View-Through

Rate (25%)

View-Through

Rate (100%)

CloseRate

AbandonmentRate

Performance Metrics for Pre-Roll Online Video Ads Served* to a US-based Audience, Q3 2011. Note: *over the AdoTube network; **gives the viewer the ability to view the ad anytime during the video or to opt out completely Source: AdoTube “Q3 2011 Format Index,” Dec 19, 2011

83%

Newssite

73%

LifestyleSite

74%

Portal

84%

VideoPortal

91%

Social and Mobile


93%

20%

30%

90%

80%

70%

60%

50%

40%

100%

68%

BrandLift


Click-through

Rates

Shares orReposts

DwellTime

29% 29%31%20%

0%

20%

40%

60%

80%

100%

57%

80%

AdNetwork

FullEpisodePlayer

Click-Through

Rate

View-Through

Rate (25%)

View-Through

Rate (100%)

CloseRate

AbandonmentRate

Metrics Used by Brand Marketers in North America to DetermineEffectiveness of Online Brand Ads, Dec. 2011 (% of respondents) Source:Digiday, “Online Brand Advertising” commissioned by Vizu Jan 6, 2012.

Social and mobile gaming adscan see brand lift metrics as high as 9x the normative average, brand favorability metrics 10x the normative average and purchase intent 10x the normative average.

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Source: MediaBrix and VINDICO, 2012


Social and mobile gaming is low-hanging fruit that performs forbrands looking to get greatervisibility and engagement fromtheir digital advertising campaigns.Below are some best practicesmarketers should consider whenrunning gaming ad campaigns:

InteractivityIn “Messaging, In-App and MobileInternet Strategies 2012-2017,”Juniper analyst Charlotte Millerstated, “Mobile advertising givesmarketers the chance to reachconsumers on a more personallevel than any other type of advertising. Creating immersive and entertaining experiences to attract the attention of the consumer is essential for marketers wanting to take advantage of the massive increase in app usage.” The same is true for social and mobile gaming, which allows brands to break the mold ofstandard display advertising andoffer truly interactive, immersivebrand experiences in games. Thisincludes value exchange, video, fullscreen takeovers, integrations andmuch more.

Video LengthAccording to industry research, video ads engagement rates are highest when the video ad is between 30 to 60 seconds long. Social and mobile gaming ads are on average 35 seconds in length. It’s no surprise that social gaming video ads see completion rates at 91%, higher than most video ads in

the online ad industry. Marketers can truly capitalize on its higher than average engagement rates and completion rates by running video ads in games.

Social SharingAdvertisers should facilitate socialsharing in their in-game ads, whichcan give them earned mediaexposure for their ad dollars.According to a Harris Interactivesurvey, 8% of Facebook users saythey have shared a video ad onFacebook, and 16% ofFacebook app users and socialgamers say they have shared avideo ad inside a social app orgame. Considering Facebook hasroughly one billion users, thismeans there is enormous potentialto facilitate social sharing and togenerate earned media.

Responsive DesignHTML5 and CSS3 with responsivedesign technology will allowbrands to run cross-platform socialgaming campaigns by offeringautomatic bespoke formattingwithout requiring marketers toprovide separate creative for eachplatform. This technology offersmultiple full-screen messages andorientation support within onecreative execution with minimalassets, along with support for allbrowsers. Because only one basicset of creative assets is needed foreach platform, these technologyenhancements have cut creativeapproval processes and costs by asmuch as 50% respectively.

Social and Mobile Gaming Best Practices for Brands

Social and mobilegaming video ads seecompletion rates at91%, higher than mostvideo ads in the onlinead industry.

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How Lexus Launched the 2013 ES Through Social MobileGaming AdvertisingSince its debut in 1989, Lexus hasearned a reputation for high-quality products and exemplarycustomer service from its 231dealers. Lexus is the luxury hybridleader, offering five hybrids thatprovide the best in innovativetechnology and first-class luxury.When it began, Lexus offered twomodels of vehicles. Now, morethan 20 years later, Lexus offersvariations of 10 vehicles, from thesporty CT 200h hybrid to the V10supercar, the LFA.

Last year, Lexus launched the2013 Lexus ES and first-ever EShybrid. Lexus partnered withMediaBrix to run an industry-firstimmersive social mobile campaignas a way to appeal to the Lexus EScore demographic: drivers with ayounger mindset aged 45and under.

Lexus was the first automotivecompany to partner withMediaBrix to fully integrateand run immersive, interactiveadvertising within DrawSomething, a popular mobilesocial game by Zynga. Lexus wasalso the first automotive companyto feature brand-specific colorschemes and elements in DrawSomething. As part of thecross-platform campaign, manyof the drawings created on themobile app were uploaded ontothe Draw Something Facebook

page where users had a chance tobe featured as the “Lexus Stunning Doodle of the Day.”

Social mobile gaming advertisingperformed for Lexus. According toproprietary data, nearly 58MMimpressions were delivered andthe campaign’s high-impact adsgarnered a 13.6% CTR, 150xhigher than the industry average.

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MethodologyThe MediaBrix Social and MobileGaming Report data was compiledfor the time period July 1, 2012 toDecember 31, 2012 across socialand mobile games. The MediaBrixbenchmarks were calculated byaveraging proprietary datacollected from 100 social andmobile gaming advertisingcampaigns and over one billionimpressions. The ad data was thencompared to industry benchmarkssupplied by eMarketer. Please notethat social and mobile gamingperformance rates and metricsmay be higher or lower than thedata included in the reportdepending on varying factorsincluding intent, creative, mediaand other unknown factors.

About MediaBrixMediaBrix (www.mediabrix.com)is the leading social and mobilegaming advertising solution forbrands. The company unlocksscarce impressions at passionatemoments within social and mobilegames, such as celebration, rescueand rewards. This immersiveapproach to brand advertisingdelivers great results becausethe user understands the originand intent of the message – andultimately appreciates the brand’sparticipation. As a result,MediaBrix’s advertising campaignsroutinely see average videocompletion rates 84x theindustry average, a 500% lift inbrand awareness compared toonline normative averages andengagement rates as much as2000% higher than other formsof digital advertising. Hundreds oftop brands, including Coca-Cola,MTV and T-Mobile, and the world’slargest game developers, such asKing.com and Zynga, leverage theMediaBrix platform to provideuser-friendly brand advertisingexperiences to more than 200million people each month.MediaBrix is based in New Yorkwith offices in Los Angeles, SanFrancisco and Chicago.

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