Monetising Mobile 5: Sprout

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1 The Largest Independent Mobile Ad Network The Past, Present and Future of Mobile Advertising and Innovation Ben Williams, Head of Business Development

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Sprout's Ben Williams outlines the history of advertising, concluding with an overview of the current rich media mobile era

Transcript of Monetising Mobile 5: Sprout

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The Largest Independent Mobile Ad Network

The Past, Present and Future of Mobile Advertising and Innovation

Ben Williams, Head of Business Development

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History of Advertising

Source: INFOLINKS History-of-Advertising

2000 BC - Egyptians invented outdoor advertising

750 BC – Greece’s “Ladies of the Night” create the 1st sonic logo

1472 – First Print Ad in England to announce a prayer book for sale

1661 – the first branding is developed for Dentifrice Tooth Gel

1776 – Political ads appear encouraging American Revolution Enlistment

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3 Source: INFOLINKS History-of-Advertising

1863 – Automobiles give riser to Billboard advertising

1873 – First product placement when transport/shipping companies appear in novels

1882 – First electric sign lit in Times Square

1892 – Start of direct marketing with a Sear’s postcard mail-out

1902 – First celebrity endorsement

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4 Source: INFOLINKS History-of-Advertising

1911 – “Sex Sells” first used at a marketing tactic

1950s – Contests and giveaways become popular

1955 – Psychologists start working to make advertising more effective

1957– Birth of the longest running TV ad Jingle

1963 – modern age of advertising ushered in as: “The consumer isn’t a moron; she is your wife”

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5 Source: INFOLINKS History-of-Advertising

1994 – First banner ads from AT&T, Sprint, MCI and Volvo

1994 – PPC keyword advertising debuts and is widely mocked

1997 – First mobile ad is launched. A Finnish News provider offers free news via SMS, sponsored by advertising

1995-2000 – Billions invested in online ads…

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Technology Penetration

Years to reach 50 million market Audience

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Where is Mobile Headed?

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Mobile and web are becoming more synonymous as internet access from mobile devices expands

Mobile and Internet

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Challenges to Mobile Marketing

0% 10% 20% 30% 40% 50% 60%

The vast number of mobile devices and operating systems

A coherent mobile marketing strategy

Questions about the tangible business contribution of mobile marketing

Challenges Impeding Mobile Marketing Effectiveness According to Marketers Worldwide, June 2011 (% of

respondents)

Source: Aberdeen Group, "Metric-Driven Mobile Marketing”, Aug 2011

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Cross-Media Ad Effectiveness

Source: InsightExpress, "Mobile Advertising Effectiveness Norms," Feb 2012

0

5

10

15

20

25

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Ad awareness Message association

Purchase intent Unaided awareness

Aided awareness

Brand favorability

Mobile and Online Advertising's Effect on Brand Metrics in the US, Nov 2007-Dec 2011

Mobile Norms Online Norms

178%

200% 267% 200% 100% 167%

When compared to TV alone, advertising on TV, iPad and iPhone increased brand recall by 617%, likelihood to recommend by 160% and purchase intent by 72%

In an April 2012 Nielsen study

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InMobi UK Media Consumption

The average UK mobile web user consumes 9 hours of media daily. Mobile devices represent 28% of this time. Mobile share has overtaken both TV and Online Media

Source: InMobi & On Device Research, Mobile Media Consumption Research Feb 2012

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71% of UK consumers multi-task while watching TV

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Globally, mobile web time is “me” time: it’s usually a personal rather than a shared media experience

39% While watching TV

67% Lying in bed

47% Waiting for something

25% Commuting

22% Spending time with

family

15% Shopping 19% In the

bathroom

15% social event

14% in a meeting or class

Sample size: n =11,040

Mobile is Part of Daily Life

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Device Day-Part

Source: /Mobext May 2012

Multi-Screen Time

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Tablets Top Media Access Devices

Source: /Mobext May 2012

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the Impact of Mobile

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High daily web access among smartphone users is helping push mobile shopping into the mainstream

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Online retail Auction sites

Shopping guides

Classifieds Automotive services

Travel service

Leading Mobile Website Categories Visited by UK Smartphone Users, Oct 2011 (% change vs. same period of

prior year)

Source: comScore Inc., Jan 17, 2012

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18 Source: /Mobext May 2012

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Shopping and Devices

Source: /Mobext May 2012

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Smartphone vs Tablet Purchases

0% 10% 20% 30% 40% 50% 60%

Food/beverage

Travel

Entertainment

Entertainment

Retail (nonelectronics)

Electronics

Products Purchased Frequently via Smartphone vs. Tablet According to US Mobile Wi-Fi Users, Q3 2011

Tablet Smartphone

Source: JiWire, "Mobile Audience Insights Report: Q3 2011,." Dec 6, 2011

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Levi’s - Interacting with the Brand

Consumers can interact with the products and brands and how they are relevant to them as well as be driven to a specific call to action – making a purchase

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Mobile Advertising has Evolved

Touchscreen & Sensors

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Multimedia 3Data 2

Voice 1

Text News

Rich media

Games & Movies

SMS ads

Banner ads

Rich media

Dynamic ads

Technology

Content Ads

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Personalized Targeting

Time of Day Industry Segment Geo-location Demographics

OS, Device, Carrier Interests User Journey Context

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AUDIENCE Centric advertising

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Personalized User Experience

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MEASURING BRAND ENGAGEMENT

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As the Mobile Market Matures, so does Consumer Usage and Preferences

0% 10% 20% 30% 40% 50%

Brokerage

Other

Affiliate

Freemium

Licensing

Merchandising/physical sales

On demand

Subscription

Ad supported

Current and Expected Prevalent Business Models According to Media and Entertainment

Executives Worldwide, 2011 (% of respondents)

Next two years Current

Source: Pontiflex survey conducted by Harris Interactive, Dec 13, 2011 Source: Accenture, "Media and Entertainment High Performance Study 2011July 12, 2011

Prefer free apps 72%

Prefer paid apps 12%

Don't download

apps 16%

Paid vs. Ad-Supported App Preferences of US Smartphone Owners, Nov 2011 (% of respondents)

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Expansion of Mobile Advertising

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Application or Site requests an Ad

Ad Server Pinged for ad, user information

received

Application of Site Serves the Ad

Information about the user pinged back to the

ad Server

Real Time Optimisation

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DRIVE TRAFFIC PASSIVE SHOPPERS

SOCIAL COMMUNICATION

Transactional Efficiency

Improve Discoverability

DYNAMIC ADS

BUY NOW ON WALMART

View Product Variants

View detailed Product Info

Drive commerce

Social Sharing

Infl

uenc

e co

mm

erce

Drive Com

merce

Real-time

REACH DATA & TECH CREATIVES CALL TO ACTIONS

Personalized Dynamic Ads In Ad Purchases

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Leverage Dual Screen Behavior

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8% Shopping

7% Local Search

12% E-mail

14% General Info (Search, Sports,

News etc.)

18% Play Games

19% Entertainment (music, videos etc.)

22% Social Media (e.g. Facebook, Twitter etc.)

Sample size: n =10,699

The Entertainment and, in particular, the Gaming markets contribute to a large proportion of daily mobile activities

Source: InMobi & On Device Research, Mobile Media Consumption Research Feb 2012

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Ford - Gamefication of Experiences

Gamefication of Experience: Creating a in-ad gaming experience to drive user engagement and brand awareness

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Taking Freemium to the next level

Samurai Blood – Full App Experience

Game preview in Ad

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Rapid Growth of Mobile Continued development of Usage Behaviours Shift from a Check-in to a Check-out mindset Customer focused usage of Data and Analytics Evolution of Mobile Advertising

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Thank you

Ben Williams, EMEA Head of Business Development