iab mobile marketing center of excellence the state of mobile: … · consumer adoption, revenue...

The State of Mobile:

Consumer Adoption, Revenue

Growth, Industry Challenges,

and Emerging Trends

Anna Bager

IAB Mobile Marketing Center of Excellence

Agenda

• A word about the IAB-US Mobile Center

• Consumers Embrace Mobile

• Mobile Ad Revenues: Growing but

Lagging Behind

• Addressing Industry Challenges

• Questions?

2 IAB | Mobile Marketing Center of Excellence

IAB’s Mobile Marketing Center of

Excellence

• Launched in December 2010

• Think of the Mobile Center as: “a committee

on steroids” or “a mini IAB within the IAB”

• Goal: drive growth of the mobile

advertising marketplace and of our

members’ share of mobile marketing spend

• Full-time staff of 4.5 people

• Separate Mobile Center Board of Directors,

which reports to overall IAB Board


IAB Mobile Marketing Center

of Excellence Leadership

Consumers Embrace Mobile

A Mobile Revolution is Underway

5

Mobile Traffic is 13% of the Internet, Globally

6

Source: “Internet Trends @ Stanford - Bases,” Presentation

by Mary Meeker, KPCB, 3 December 2012.

7

More Than Half of US Cellphone

Subscribers

Own Smartphones

Source: Nielsenwire, “Smartphones Account for Half of all Mobile Phones”, March 29, 2012

Link: http://blog.nielsen.com/nielsenwire/online_mobile/smartphones-account-for-half-of-all-mobile-phones-dominate-

new-phone-purchases-in-the-us

http://blog.nielsen.com/nielsenwire/online_mobile/smartphones-account-for-half-of-all-mobile-phones-dominate-new-phone-purchases-in-the-us





























Sweden Adopting Smartphones

Very Rapidly

49%

68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

January-11 January-12

8

Source: Telenor Sweden press release, Dec. 19, 2012, Cited by

eMarketer,

Swedish Smartphone Penetration (ages 18-65, phones for personal use)

November 2011 November 2012

Mobile value propositions vary by

device type:

9

Source: Mobile’s Role in a Consumer’s Media Day: Smartphones and Tablets Enable Seamless Digital Lives – ABI

Research & IAB Mobile Center

Link: http://www.iab.net/guidelines/508676/mobile_guidance/mobileusage

Smartphones are mission-

critical devices for “life,” with

nearly 70% of smartphone

users saying they “won’t leave

home without it.”

Tablets are a media consumption

hub, with nearly 70% of tablet

users reporting that their tablet is

an “entertainment device.”

Mobile is the Anywhere, Anytime

Medium

10 Source: InMobi and On Device Research, “Five Ways Mobile Devices Have Changed the Way Americans Consume

Media,” Mobile Media Consumption Research, Q2 2012 Sample size : 1,055.

‘Mobile’ does not mean ‘remote’

11

Source: Mobile’s Role in a Consumer’s Media Day: Smartphones and Tablets Enable Seamless Digital Lives – ABI

Research & IAB Mobile Center

Link: http://www.iab.net/guidelines/508676/mobile_guidance/mobileusage

Nearly all smartphone and tablet users (91% and 97%, respectively) report

using their device at home – the most widely used location for mobile activity

Smartphone and Tablet Use In Front of the TV

12 Source: ABI Research Survey, June 2012

Question: When, specifically, have you used your smartphone/tablet at home to access mobile data services in the last 3 months?

70%

81%

0% 20% 40% 60% 80% 100%

Smartphone

Tablet

Percentage of owners of each device who have used their device

while watching TV in the past 3 months

Significant Mobile Phone Video Usage Happens At Home

13

Q6 Diary: Where were you?

Country: US Date: November 2012

Base: Total interactions (987

In which room ?

Bedroom

43%

Front

room/ Lounge 35%

Kitchen 4%

Bathroom 4%

Dining room 2%

Garden/patio etc 2%

At

Home:

63%

Source: Mobile Phone Video Diaries: Understanding Mobile Video Usage, IAB Mobile

Center Study Prepared by OnDevice Research, Released November 2012

Apps v. Browser: Steady Relationship v. Casual Encounter

14

51%

50%

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

Used Apps

Used Mobile Web

Consumers use mobile web and apps in equal numbers…

81,5%

18,5%

0% 20% 40% 60% 80% 100%

Time using apps

Time using mobile web

Sources: Usage data: comScore, reported in TechCrunch, “comScore: In U.S. Mobile Market, Samsung, Android Top The

Charts; Apps Overtake Web Browsing,” July 2, 2012. Data 3 month avg ending May 2012. Time spent data: comScore

reported in betanews, “The mobile web is dead,” May, 2012. Data March 2012.

But apps vastly dominate the time spent equation.

Percentage of consumers using mobile capability

Percentage of total time spent online on smartphones

Mobile Internet Makes Everyday Activities Easier

15

Source: IAB and Viggle Mealtime Goes Mobile Survey, January 2013,

http://www.iab.net/mobilemeals

Mobile Use in Ordering Takeout and Delivery

Mobile Ad Revenue:

Growing But Could Be Faster

17

Where Consumers Go

Ad Revenue Follows

$0 $500 $1 000 $1 500 $2 000 $2 500

Middle East & Africa

Latin America

Europe

North America

Asia-Pacific

Display

Search

Messaging

18

Mobile Ad Revenue, Year-End 2011, in US$ Millions

Source: IAB-US Mobile Center, IAB Europe, IHS ScreenDigest, “Global Mobile

Advertising Market Valued at $5.3 Billion (€3.8 Billion) in 2011,” June 6, 2012

US$1.9B

US$1.7B

US$1.4B

US$0.19B

US$0.17B

US Mobile Ad Spending

Shows Strong Growth

19 Source: eMarketer Press Release Sept. 5, 2012, “eMarketer: Twitter Tops Facebook in US Mobile Ad Revenue”.

Link: http://www.emarketer.com/newsroom/index.php/emarketer-twitter-tops-facebook-mobile-advertising-revenue/

US Mobile Ad Revenue Not Keeping Pace With Other Media

20

Source: “The Future of Mobile Ads,” Presentation by Henry Blodget, Business Insider.

Data from: IAB, McCann-Erickson, BIA-Kelsey, BII Estimates. Note: Adjusted for

inflation

$0,36

$1,01

$2,16 $2,16

$3,70

$0,06 $0,27

$0,91

$1,92

$4,62

$0,08 $0,16 $0,39

$0,81

$1,17

$0,0

$0,5

$1,0

$1,5

$2,0

$2,5

$3,0

$3,5

$4,0

$4,5

$5,0

Year 1 Year 2 Year 3 Year 4 Year 5

Broadcast TV PC Internet Mobile

US

Dolla

rs,

Bill

ions PC Internet

Broadcast TV

Mobile

Mobile Revenue Much Less Than PC Revenue

21

Source: “Internet Trends,” Presentation by Mary Meeker, KPCB, at D10 Conference, 5/30/2012.

Note: Zynga mobile revenue estimated by KPCB. All data as of 5/12. Sources: Pandora, Tencent,

Zynga.

$6,62

$25,00

$58,95

$3,87 $5,00

$17,61

$0,00

$10,00

$20,00

$30,00

$40,00

$50,00

$60,00

$70,00

Pandora Zynga Tencent

PC Revenue Mobile Revenue

Online radio, ad

supported.

Social games,

ads plus

micropayments

Avera

ge R

evenue P

er

User

(US

$)

Chinese portal

site; revenue

per paying user

Industry Challenges

Barriers to Entry and Growth

22

Marketers See Significant Mobile

Advertising Challenges

23 Source: Marketer Perceptions of Mobile Advertising, IAB Study conducted by Ovum, July 2011,

n=300

To Realize Mobile’s Potential

We Need To:

• Make mobile content easier to create.

• Make mobile advertising more

engaging, fun, and interesting.

• Make mobile advertising easier to buy.

• Demonstrate mobile’s value in a cross-

screen, cross-media world.

24

Scaling Content is Difficult

BlackBerry Curve

9370 360x480

Motorola Droid RAZR

960x540

Samsung Galaxy Note

1280x800

Amazon Kindle Fire

1024x600

Apple iPad (new)

2048x1536

Apple iPhone 4S

960x640

Note: Devices chosen as examples to highlight range of screen sizes

(measured in pixels) in US market currently. Images not to scale. Sources:

manufacturer websites

Apple iPhone 5

1136x640

Key Decision Points Include:

• Content type: Apps versus Mobile Web

versus both.

• Operating system: Android? iOS?

Windows 8? BlackBerry?

• Device Type: Tablets? Smartphones?

Hybrids? Not-smart-phones?

• It’s hard to do all of these well

simultaneously.

Creating Mobile Content


New Technologies Will Help

• Responsive Design: A set of

technologies that enable web

servers to change content elements

and layout in response to the

screen size of the requesting

device.

• HTML5: The next-generation

standard for creating web content.

Enables very rich, “app-like”

experiences without needing to

design native apps for each and

every device/operating system.

Creating Mobile Content


28

Static Banners v. New, Rich

Units

Improving Mobile Ads

IAB Mobile Rising Stars 300x50 Static Banner

29

Ubisoft Branded App Sells Dance Game

Improving Mobile Ads: Case Study

IAB | Mobile Marketing Center of Excellence

30

Nokia Lumia Launch on Mobile

IAB | Mobile Marketing Center of Excellence

Improving Mobile Ads: Case Study

http://vimeo.com/41415985




Advertisers Needs

• Same in mobile as in any other medium.

• To reach a desired audience (people who

will be interested in their product/service)

• To reach them with a relevant message the

audience will like or respond to

• To reach everyone in that target audience

easily and efficiently

• To be able to measure the outcomes of that

advertising campaign. Did it work?

Make Buying Easier


Several Ways to Buy • Direct: agency buys directly

from a media company/publisher

ad sales force.

• Network: agency buys via an ad

network, which aggregates ad

inventory from a large number of

publishers

• Exchange/Real Time Bidding:

agency buys ad inventory as it

becomes available by bidding

using automated systems

Make Buying Easier


33

Mobile’s Complex Landscape Make Buying Easier

Source: http://www.lumapartners.com/lumascapes/mobile-lumascape/

We need a simpler story to tell about

the path connecting marketers and

consumers!

Multiple Devices Contribute to Purchases

Mobile & Cross-Media

34 Source: Google, The New Multi‐screen World: Understanding Cross-‐pla1orm

Consumer Behavior,” Released August 2012.

Ads Tap Into Co-Viewing

• TV ad campaigns use Shazam and other

technologies to encourage users to interact

via mobile.



Research and Education Needed

• We intuitively believe

that someone who

sees an ad campaign

on their TV, PC, and

smartphone will be

more likely to recall

that ad.

• IAB has launched a

major research effort

to prove and quantify

ad synergies.



Concluding Thoughts

• Mobile data is transforming the way

people live.

• Where the people are, advertisers will

go…eventually.

• But we have work to do to make mobile

more media and ad-friendly.

• The pace of innovation in mobile media

shows no signs of slowing: lots of new

exciting developments to come!

IAB Mobile Center


Thanks!


[email protected]

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