the $1 million cpm: will apple’s iad change the mobile market forever?

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The $1 Million CPM: ill Apple’s iAd Change the Mobile Marke Forever? Noah Elkin Senior Analyst eMarketer iAds An agency perspective Brett Barash Vice President, Account Director BBDO

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The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?. iAds An agency perspective. Noah Elkin Senior Analyst eMarketer. Brett Barash Vice President, Account Director BBDO. eMarketer - A business information service unlike any other. - PowerPoint PPT Presentation

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Page 1: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

The $1 Million CPM:Will Apple’s iAd Change the Mobile Market Forever?

Noah ElkinSenior Analyst

eMarketer

iAdsAn agency perspective

Brett BarashVice President, Account Director

BBDO

Page 2: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

eMarketer - A business information service unlike any other

• Founded in 1996, eMarketer provides unbiased research and trend analysis on digital marketing and media

• Approach & Expertise– We aggregate, filter, organize and analyze data from more

than 4,000 global sources– Analysts put the data into context covering all aspects of

the market, with overviews and insights that can’t be found anywhere else

Page 3: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

2010 was a watershed year for mobile

Nov. 2009 Jan. 4, 2010

Jan. 5, 2010

Jan. 27, 2010 April 2010

Page 4: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Mobile ad spending is going UP!

Page 5: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

What a difference a year makes

2009 2010 2011 2012 2013 2014$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000 Sept. 2009 Forecast Sept. 2010 Forecast

Source: eMarketer, 9/2010

Page 6: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Focus of mobile advertising is shifting

Source: eMarketer, 9/2010

Page 7: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Apple has played the role of catalyst for mobile advertising

• The “iAd effect” has produced the following key results:

– Benefited the entire mobile ad space by generating awareness and excitement about mobile advertising, particularly interactive rich media

– Reinforced the effectiveness of mobile as a branding medium

Page 8: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

iAd is also having an impact on spending

Source: IDC, 9/2010

Page 9: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Success comes despite setbacks

Page 10: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Richer ads units are driving spending growth

CAGR, 2009-2014 (in %)

Video 74%

Total Display 60%

Search 59%

Banners and Rich Media

58%

Messaging 21%

TOTAL 44%

Page 11: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

The iPhone audience: exclusivity vs. reach

• Small audience: ~16.5 million US iPhone users– Represents approx. 30% of US smartphone

population (Nielsen, Aug. 2010)• Active audience: iPhone users generate 50-

60% of all monthly smartphone ad impressions on networks such as Millennial Media and AdMob

• Wild card: Verizon iPhone

Page 12: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Has iAd changed the mobile market forever?

Yes.

Page 13: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Thank you

Noah ElkinSenior AnalystEmail: [email protected]: @noahelkinBlog: emarketer.com/blog/index.php/author/nelkinPhone: (212) 763-6055

Page 14: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

iAdsAn agency perspective

Brett BarashVice President, Account Director

BBDO

Page 15: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Existing Live iAds

Page 16: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Why AT&T?

• First to market• Innovative, Rich Mobile Experiences• Partnership (AT&T and Apple)• Targeting Capabilities• Competitive Exclusivity

Page 17: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Challenges

• Reach – Limited to iPhone and iPod Touch• Creative control• Reporting and Benchmarks• Message Strategy

Page 18: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Add A Line / Smartphone Data

Page 19: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Introduction ofU-verse TV

Page 20: The $1 Million CPM: Will Apple’s iAd Change the Mobile Market Forever?

Thank you

Brett BarashVice President, Account DirectorBBDOEmail: [email protected]: @brettbarash