MOBILE BRAND ADVERTISING INDUSTRY UPDATE

SUSAN CHAIKA

SENIOR PRODUCT MARKETING MANAGER, NIELSEN

Digiday State of the Industry Survey commissioned by Nielsen

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NIELSEN: WORLD’S LARGEST MARKET RESEARCH COMPANYWorking with the majority of the world’s leading brand advertisers• Analyzing 55% of the world’s advertising•Measuring audiences and effectiveness in all 210 US TV markets and 29 countries• Connected to 10,000,000 consumers worldwide; scanning billions of transactions daily

Also working with the majority of the world’s leading media sellers & agencies• 75% of top media agencies and all major holding companies• 90% of the top 50 ad networks, 75% of the top 100 publishers

Nielsen helps brand advertisers and agencies intelligently leverage data to maximize return on advertising investment

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ADVERTISING EFFECTIVENESS SIMPLIFIEDEffectiveness principles are consistent across screens

Reach the right people

Reach

Influence their opinion

Resonance

Impact their behaviorReaction

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METHODOLOGY

• Digiday State of the Industry Survey, commissioned by Nielsen

• Surveyed brand advertisers, agencies and publishers

• Surveyed in Oct 2013

• N=500 responses

Advertiser; 16%

Agency or Trad-ing Desk; 36%

Mobile Pub-lisher or

Network; 34%

Other; 14%

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MOBILE IS USED FOR BRANDING PURPOSESBrands: What is the primary purpose of your mobile advertising campaigns?

Primarily direct-response

related

A mix - more than half DR

A mix, more than half branding

Primarily branding re-

lated

SOURCE: Digiday State of the Industry Q4 2013, commissioned by Nielsen

Branding related, e.g. raising awareness, influencing brand opinions

Direct-response related, e.g. driving product trials or sales

49% 51%

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SPENDING ON BRANDING WILL GROW FASTER THAN DIRECT RESPONSEBrands: Compared with 2013, how do you expect your 2014 mobile advertising spending in the following categories will change?

Direct Response

Branding

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

32%

23%

68%

77%

Decrease Stay the same Grow

SOURCE: Digiday State of the Industry Q4 2013, commissioned by Nielsen

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BIGGEST MOBILE PAIN POINTS ARE RELEVANT METRICS

Brands: What are your biggest pain points in mobile brand advertising?

Understanding who themobile advertising reached

Lack of mobile benchmarks

Relevant success metrics

Calculating mobile ROI

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

23%

31%

46%

56%

SOURCE: Digiday State of the Industry Q4 2013, commissioned by Nielsen

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BRANDS PREFER TO USE OFFLINE METRICSBrands: To what extent would you like to use the same metrics to evaluate your mobile brand advertising spend as you do for your offline brand advertising spend?

We would prefer to rely primarily on metrics specific to the mobile medium

We would prefer to use some of the same metrics from the offline medium, and some metrics specific to the mobile medium

We would prefer to use the exact same metrics, and additional metrics specific to the mobile medium

We would prefer to use the exact same metrics, and nothing else

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

23%

26%

39%

13%

SOURCE: Digiday State of the Industry Q4 2013, commissioned by Nielsen

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BIG DISCONNECT IN APPROPRIATE VS. AVAILABLE MOBILE METRICSBrands: Which metric(s) have you USED IN THE PAST/do you think are the MOST APPROPRIATE to measure who your mobile brand advertising reached?

Used in the Past(top 3 responses)

1. Ad server impressions

2. Page views

3. Gender

SOURCE: Digiday State of the Industry Q4 2013, commissioned by Nielsen

Most Appropriate(top 3 responses)

1. Gross ratings points (aka GRP, desired age and gender x frequency)

2. Mobile sessions

3. App downloads

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Brands: Which metric(s) have you USED IN THE PAST/do you think are the MOST APPROPRIATE to measure mobile brand advertising ROI (with ROI defined as metric achieved per dollar spent)?

Used in the Past(top 3 responses)

1. Clickthrough rates

2. Impressions served

3. App downloads

SOURCE: Digiday State of the Industry Q4 2013, commissioned by Nielsen

Most Appropriate(top 3 responses)

1. Brand lift

2. Clickthrough rates

3. Interaction rates

Most Appropriate(agency top 3 responses)

1. Brand lift

2. Interaction rates

3. App downloads

BIG DISCONNECT IN APPROPRIATE VS. AVAILABLE MOBILE METRICS

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THE INDUSTRY NEEDS TO GET ON THE SAME PAGEWhat Advertisers Say Is Important for a Successful Campaign vs.

What Publishers Say Actually Happens for Every Campaign

Calculate ROI at end of campaign

Monitor performance for in-flight improvements during campaign

Communicate audience and objective to all campaign members before campaign start

Establish metric that will be used to measure success before campaign start

Define campaign's target audience (e.g. age and gender) before campaign start

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

32%

41%

46%

38%

38%

96%

84%

91%

93%

90%

Advertisers Publisher

SOURCE: Digiday State of the Industry Q4 2013, commissioned by Nielsen

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App

Frequency

CreativeSegments Brand Lift

NIELSEN MOBILE BRAND EFFECT

Use relevant brand metrics to understand:Is my mobile brand advertising working?

Use real-time brand metrics to ensure it’s working. Determine:• Where to run your ads• Which ads to run

• How often to run them

Real-time Brand Measurement and Optimization Platform for In-App Mobile Campaigns

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NIELSEN MOBILE BRAND EFFECT

Use relevant brand metrics to understand:Is my mobile brand advertising working?

Use real-time brand metrics to ensure it’s working. Determine:• Where to run your ads• Which ads to run

• How often to run them

Media plan participants measure and optimize results on their own properties

Agencies measure and optimize across entire media plan

andCompete to produce the best possible results

Real-time Brand Measurement and Optimization Platform for In-App Mobile Campaigns

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NIELSEN IS ADDRESSING MOBILE MARKETERS’ MAIN CONCERNS: RELEVANT REACH AND RESONANCE METRICS

Brands: What would increase your use of mobile brand advertising?

Ability to verify that my mobile advertising was actually delivered to the target audience

Ability to verify that brand advertising created the desired result (e.g. increased brand awareness)

Improved clarity around actual return on brand advertising investment

Ability to measure audience reach and ROI at the same time

0% 10% 20% 30% 40% 50% 60% 70% 80%

60%

62%

70%

70%

SOURCE: Digiday State of the Industry Q4 2013, commissioned by Nielsen

Be notified when the full report comes out

Email Darren.Ellis@nielsen.com

Questions to the presenter?Email Susan.Chaika@nielsen.com