mobile ads trends in 2013-2014

CAMPAIGN HIGHLIGHT:INTREPID

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GOAL:Raise awareness and drive donations for the “Make It Visible” campaign which builds clinics for U.S. veterans suffering from PTSD and other effects of war.

STRATEGY:The Intrepid Fallen Heroes Fund and MEC partnered with Millennial Media to reach millions of mobile consumers to drive awareness and gain support for the initiative. Intrepid utilized a clear call-to-action asking consumers to “Donate Now” and contribute to the fund.

“The mobile space enabled us to take the “Make It Visible” campaign and connect with an always-on mobile audience that is constantly looking for ways to stay connected and in-the-know. Millennial allowed us take our campaign strategy to the next level by reaching a broad audience full of passionate consumers who like to take action and help a great cause!”~ David Winters, President, Intrepid Fallen Heroes Fund

Source: Millennial Media, 2012 & 2013.

Entertainment was the number one vertical on our platform in 2013, up from number two the previous year (Chart A). Entertainment advertisers, such as movie studios, television networks, and video games ran mobile campaigns throughout the year in order to drive tune-in and brand awareness of their shows and products.

Consumer Goods was the fifth largest vertical on our platform in 2013, growing spend 134% from the previous year (Charts A & B). Since Consumer Goods products are purchased in a third-party retail location, advertisers in this vertical most often run Brand Awareness campaigns in order to help increase in-store consumer recall of their products.

Pharmaceuticals moved up into the top ten verticals on our platform this year at the number nine position, after growing 139% year-over-year (Charts A & B). Due to the complexity and nature of their products, Pharmaceutical advertisers most often utilize site search actions in their campaigns that drive consumers to mobile web or landing pages where more information can be featured.

Six verticals experienced triple-digit growth in campaign spend on our platform this year (Chart B), four of which are not in the Top 10 Global Brand Verticals (Chart A). This set of emerging verticals has grown their investment in mobile advertising throughout the year by not only increasing the number of campaigns they run, but also by including more advanced features in them.

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MARCH 2014

VERTICALS GROWTH

Vertical ExplosionYear-Over-Year Spend – 2013 / 2012CHART B

SPORTS

EMPLOYMENT

ENERGY & POWER

NONPROFIT & CHARITIES

PHARMACEUTICALS

CONSUMER GOODS

489%

209%

196%

170%

139%

134%

Top 10 Global Brand VerticalsRanked by SpendCHART A

ENTERTAINMENTRETAILTELECOMMUNICATIONSFINANCECONSUMER GOODSAUTOMOTIVETRAVELTECHNOLOGYPHARMACEUTICALSEDUCATION

123456789

10

2013

21*346578

NR9

2012CATEGORIES

*Retail was previously reported as a combined vertical, Retail & Restaurants. Source: Millennial Media, 2012 & 2013.

Global Mobile Vertical Spending in 2013

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SITE SEARCH

Post-Click Campaign Action MixCHART C

ENROLL / JOIN /SUBSCRIBE

STORE LOCATOR /VIEW MAP

WATCH VIDEOAPPLICATIONDOWNLOAD

MCOMMERCEDYNAMICFUNCTIONS

0%

5%

10%

15%

20%

25%

30%

35%

40%

SOCIAL MEDIA


2013 2012

PLACE CALL RETAILPROMOTION

In 2013, 34% of all platform campaigns integrated an app download action (Chart C). This year advertisers really strengthened their mobile presence, which often included a branded application. Advertisers then utilized mobile advertising campaigns in order to drive consumer downloads and usage of these new or updated apps.

Watch Video actions were included in 18% of all platform campaigns in 2013, up two percentage points from 2012 (Chart C). Video actions were utilized across every vertical, such as trailers included in Entertainment campaigns or television commercials for Automotive brands repurposed to mobile.

Dynamic Functions, such as swipe, shake, tilt, and add to calendar were included in 7% of campaigns on our platform in 2013 (Chart C). These actions were not included in our research reports in 2012, but have grown in popularity as more advertisers integrate these advanced functions. Advertisers leveraged these features, which are often tied to native functions of the device, to drive increased consumer engagement.

A list of the verticals most frequently using a post-click action are shown in Chart D. Retail advertisers were the most frequent users of a number of post-click actions, including Retail promotion and Dynamic Functions. 29% of all Retail campaigns included the store locator / view map action in their campaigns, in order to help drive consumers into brick-and-mortar locations. More than half of all Entertainment campaigns included a watch video action, most likely previewing a movie or TV show premiere.

2013 Global Mobile Advertiser Trends:Campaign Engagement Methods


MARCH 2014

29%29%

37%

19%16%

21%16%

34%

8%13%

18%

8%12%

18%

9%

4%

9%10%

Verticals Most Frequently Using an ActionCHART D

Source: Millennial Media, 2013.

App Download

Dynamic Functions

Enroll/Join/Subscribe

m-Commerce

Place Call

Retail Promotion

Site Search

Social Media

Store Locator/ View Map

Watch Video

Entertainment

Retail

Finance

Retail

Telecommunications

Retail

Automotive

Consumer Goods

Retail

Entertainment

32%

14%

27%

45%

19%

24%

76%

19%

29%

53%

POSTCLICK ACTION VERTICAL FREQUENCY

NR

7%


CAMPAIGN HIGHLIGHT:UNIVERSAL PICTURES

GOAL:To promote the release of Endless Love on Valentine’s Day weekend targeted at a younger, female audience.

STRATEGY:Universal collaborated with Aviary, a leading photo-editing app, and Millennial Media to recreate the film’s fight-for-love message into an engaging in-app consumer experience. The “Photo Valentine” campaign provided a mobile canvas for creating and sharing custom photo valentine’s inspired by the film.

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Site/Mobile Traffic was the goal of 30% of the campaigns on the Millennial Media platform in 2013 (Chart E). These campaigns included brand campaigns that drove a user to a mobile web, app, or landing page where more actions could be taken.

In 2013, 22% of all campaigns on our platform had the goal of driving Brand Awareness for an advertiser, an increase of eight percentage points from the previous year (Chart E). Videos are frequently used to drive awareness and recall across all verticals. Advertisers in the Government Services vertical, such as military or local services, frequently leveraged video to share information with the public.

A list of the verticals most often using a campaign goal is listed in Chart F. The Finance vertical most frequently ran campaigns with a goal of consumer registrations (30% of Finance campaigns), such as getting an insurance quote or signing up for more info on a mortgage. 47% of Consumer Goods campaigns were Brand Awareness campaigns, which coincides with a high use of video.

The Retail vertical was the most frequent user of two campaign goals: Site/Mobile Traffic and Increased Foot Traffic. 35% of campaigns focused on Increased Foot Traffic goals by Retail advertisers were looking to drive consumers into store locations.


MARCH 2014

2013 Global Mobile Advertiser Trends:Campaign Engagement Methods

Sustained In-Market PresenceSite/Mobile TrafficBrand AwarenessIncreased Foot TrafficRegistrationsProduct Launch/Release

2013 2012

39%

14%14%

10%

12%

12%24%

30%22%

10%

9%

5%

Advertisers’ Campaign GoalsCHART E

Verticals’ Most Frequent Campaign GoalsCHART F


Sustained In-Market Presence

Site/Mobile Traffic

Brand Awareness

Increased Foot Traffic

Registrations

Product Launch/Release

Dating

Retail

Consumer Goods

Retail

Finance

Entertainment

33%

43%

47%

35%

30%

20%

GOAL VERTICAL FREQUENCY


Impact on Click-Through Rate When Using Rich Media & Video Ads, as compared to Standard BannersBy VerticalCHART G


+260%

+350%

+250%

+180%

+170%

+240%

+290%

+200%

+350%

+260%

AUTOMOTIVE

CPG

EDUCATION

ENTERTAINMENT

FINANCE

PHARMACEUTICALS

RETAIL

TECHNOLOGY

TELECOMMUNICATIONS

TRAVEL

CAMPAIGN HIGHLIGHT:OLYMPUS

GOAL:With the release of the Olympus Tough TG-2 iHS freeze proof, shock proof, and water proof camera, Olympus aimed to show the camera to active, adventurous men though a mobile experience.

STRATEGY:Together with Mediahub/Mullen and Millennial Media, Olympus leveraged interactive creative units and video solutions, with three types of audience targeting, to engage active men ages 35-44.

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Mobile ads have the ability to use interactive, animated, and native function features to create engaging experiences for the user. These include such features as gamification, swipe galleries, voice recognition, video, integrated location, and beautiful animations. While not all campaigns include these functions in their mobile campaigns, those that do see higher effectiveness metrics from their ads. Chart G shows the average increase in CTR of rich media and video ads as compared to standard image banners for each vertical.

Automotive rich media and video ads saw an average of 3.5 times the CTR of standard banners (Chart G). Automotive advertisers often use video in their campaigns to show the car in action, or dynamic ads that allow a consumer to swipe through different vehicle models.

Consumer Goods rich media and video ads saw an average of 2.6 times the CTR when compared to standard banner ads in the vertical (Chart G). These advertisers often use video and interactive games to drive brand awareness and recall.

Rich media and video ads run by Education advertisers saw 3.5 times greater CTR than standard banners (Chart G). Education brands used animation, short quizzes, and video to get consumers thinking about their learning needs and resulting careers.

MARCH 2014

2013 Global Mobile Advertiser Trends:Ad Formats


2013 Device IntroductionsCHART H

Microsoft Windows Surface Pro 2OCTOBER 2013

Kindle Fire HDXOCTOBER 2013

HTC One MaxOCTOBER 2013

Apple iPad AirNOVEMBER 2013

Samsung Galaxy S4APRIL 2013

HTC OneMARCH 2013

Nokia Lumia 1020JULY 2013

Samsung Galaxy Note 3SEPTEMBER 2013

Sony Xperia Z UltraJULY 2013

iPhone 5s & 5cSEPTEMBER 2013

LG Optimus G ProMAY 2013

Nokia Lumia 925JUNE 2013

Source: Public news outlets, 2013.

2013 Device & Developer Trends

Whether upgrades to a familiar model or totally new in concept, dozens of new devices entered the mobile market in 2013. Chart M highlights a few of the key new devices that were introduced to consumers. Apple introduced a number of new products in 2013, including two new versions of the iPhone (the 5s and 5c), the iPad air, and a new version of its operating software, iOS 7.

Games were the number one application category on our platform in 2013, maintaining the position from 2012 and 2011 (Chart I). Communication apps have grown in popularity in the last year, and moved up to the third largest category on our platform this year. Books & Reference applications were the other category that saw big growth in 2013, moving up three positions to the sixth largest app category on our platform.

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MARCH 2014

1

2

3

4

5

6

7

8

9

10

1

2

4

5

3

9

8

NR

10

7

CATEGORIES

Games

Music & Entertainment

Communications

Productivity & Tools

Mobile Social Media

Books & Reference

News

Dating

Weather

Sports

Top 10 Application CategoriesRanked by ImpressionsCHART I


2013 2012


2013 2012


2013 2012

AndroidiOSBlackBerry OSWindowsSymbian

SmartphonesNon-Phone Connected DevicesFeature Phones

OS MixRanked by ImpressionsCHART J

Device MixRanked by ImpressionsCHART K

This report takes a closer look at the app economy. Through a survey of app developers and publishers, this report features insights into monetization trends, as well as developers’ goals and priorities for last year and this coming year. The report also captures what developers are designing for and the platforms on which they see their impressions.

To download the report, visit: http://www.millennialmedia.com/mobile-intelligence/special-reports/

OUR 2014 STATE OF THE APPS REPORT IS NOW AVAILABLE

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2013 Device & Developer Trends


MARCH 2014

72%

24%

4%

75%

20%

5%

54%38%

7%

1% 1%3%

48%

16%

32%

In 2013, the mix of operating systems on our platform continued to shift towards Android and iOS devices. The Android operating system accounted for 54% of platform impressions in 2013, up from 28% in 2012 (Charts J & K). iOS was the second largest operating system on our platform, with 38% of the impression share in 2013, up from 32% in 2012.

Impressions from Non-Phone Connected Devices increased four percentage points to account for 24% of platform impressions in 2013 (Charts L & M). Tablets are the largest group of devices in this category, of which four were in the top twenty devices on our platform. Other connected devices such as smart televisions, gaming systems, embedded in-car systems, and wearables are poised for future growth.

*

Audience Targeting – A strategy used by advertisers to deliver relevant messaging to specific target audiences. Built upon massive volumes of diverse user, location, app, and 3rd party data, Millennial Media’s audience targeting uses a variety of targeting techniques to reach audiences, including behavioral, local, contextual, demographic, retargeting, tactical, and content-based solutions.

Cross-Platform – Pertaining to multiple devices (smartphones, tablets, feature phones, non-phone connected devices), carriers (AT&T, Verizon, Vodafone, etc.), or platforms (iOS, Android, BlackBerry, Windows Phone, Symbian, etc.). Millennial Media is cross-platform – or “platform agnostic” – because we do not focus on one single OS or device type. This enables advertisers to reach as many mobile users as possible, regardless of their mobile device or carrier of choice.

Developer – Provider/creator of mobile applications and sites. Developers range from large entities (brands, portals, news sites, etc.) to individuals who focus on just a handful of applications.

Feature Phone – Any web-enabled mobile phone that is not a smartphone.

Impression – A count of the number of times an ad unit appears on a mobile device.

Interactive Video – A high-impact video ad layered with interactive features that deliver a uniquely mobile, actionable experience to customers.

Inventory – The ad space available on mobile websites and applications.

Non-Phone Connected Device – A non-phone mobile device. This includes tablets, gaming devices, e-readers, MP3 players, etc.

Post-Click Campaign Action – The action a marketing campaign is driving the customer to take once an ad is viewed (i.e., Place Call, Download Application, View Map, etc.).

Rich Media – Advertising that deviates from standard display advertising in that it goes beyond an image file to include coded features, such as it is interactive, engaging, or it breaks free of basic, accepted IAB-determined online standards.

SDK – Software Development Kit. A tool that enables developers to seamlessly integrate mobile advertising into their applications, thus monetizing their apps. Developer partners on Millennial Media’s platform download and integrate our SDKs (available for a variety of operating systems – iOS, Android, Windows Phone, etc.) to gain access to the ads run by our advertising partners.

Smartphone – Any web-enabled and application-enabled mobile phone that runs on an operating system and offers the user more advanced capabilities beyond just voice and mobile web access.

Vertical – The classification of advertisers by industry.

S.M.A.R.T.™ Glossary of Terms


MARCH 2014

About Millennial Media’s S.M.A.R.T.™

The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ delivers regular insights on key trends in mobile advertising based on actual standalone campaign and platform data from Millennial Media.

Visit www.millennialmedia.com/mobile-intelligence to sign up to receive Millennial Media-related news including the Mobile Mix™ report, the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ report, and the Mobile Intel Series.

About Millennial Media

Millennial Media is the leading independent mobile advertising platform. The Company’s unique data asset and full technology stack enable its demand and supply-side clients to garner meaningful results to drive their business. Based on its mobile-first approach to data, technology, and audience targeting, Millennial Media is leading the market by connecting consumers with relevant messages across screens. For advertisers looking to reach and engage with consumers in powerful ways, Millennial Media offers a broad array of solutions, delivered through brand, performance, and programmatic approaches. For developers and publishers, the Company offers a comprehensive set of managed and automated services to maximize revenue.

For questions about the data in this report, or for recommendations for future reports, please contact us at [email protected].

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Summary & Reporting Methodology

©2014 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.


MARCH 2014

mobile ads trends in 2013-2014

Technology

mobile campaigns

retail campaigns

year advertisers

platform campaigns

entertainment campaigns

number of campaigns

year chart b

previous year chart