evolution in mobile advertising - targeting, creative & media buying

Cheryl Morris | Director of Marketing | @cheryllmorris

Evolution in mobile advertising –

#1 in less than a year –

#1 in less than a year –

$1billion

$200,000,000

“The year of mobile” – a slow pace of innovation

Facebook in mobile – not 5 years

Facebook in mobile – moving fast

14% of FB’s ad

revenues

23% of FB’s ad

revenues

30% of FB’s ad revenues

2012 2013

Facebook in mobile – solving real challenges

Targeting and creative – success from desktop shifts to mobile

15-20X higher CTRs

A second evolution – how we buy customers

ROI – measuring and buying media based on it

driving forces of change in mobile…

1. TARGETING

2. CREATIVE

3. MEDIA BUYING

1. TARGETING

2. CREATIVE

3. MEDIA BUYING

750 million people

750 million people – with identities

Unprecedented targeting – Facebook

Lack of identity – targeting attributes are non-personal or inferred

“Spray and pray” – buy blindly and opportunistically

Unprecedented targeting – the alternative

Device

• Type• OS version• Wi-fi connectivity

Behavior

• Actions taken with sites and apps

• Offline purchase behavior

CRM

• Customers from your CRM database matched to Facebook profiles

• Friends of your fans/users

Demographics

• Age• Gender• Location

Affinities

• Likes• Interests• Conversations

Social

• Relationship status• Education level,

college, major• Employer, position

Unprecedented targeting – from affinities to your CRM

Device

• Type• OS version• Wi-fi connectivity

Behavior

• Actions taken with sites and apps

• Offline purchase behavior

CRM

• Customers from your CRM database matched to Facebook profiles

• Friends of your fans/users

Demographics

• Age• Gender• Language• Location

Affinities

• Likes• Interests• Conversations

Social

• Relationship status• Education level,

college, major• Employer, position

Custom audiences – define customers to remarket and expand to look-alikes

Your CRM Remarket

MATCH

1. TARGETING

2. CREATIVE

3. MEDIA BUYING

Banner ads – tiny, ugly, intrusive

Facebook mobile ads – huge ads

Facebook mobile ads – huge ads, acts like content

Facebook mobile ads – huge ads, acts like content, designed to drive behavior

Page post ads – consistency across channels

20-50XhigherCTRs than RHS

Mobile app install ads – fueling app discovery and distribution

1% CTR

1. TARGETING

2. CREATIVE

3. MEDIA BUYING

Cost Per Impression – CPM

Cost Per Click – CPC

Cost Per Action – CPA

views mobile

ad

installs app /

registers

continues to purchase

over time

clicks mobile

ad

makes first

purchase

Downstream behavior – after the action

views mobile

ad

installs app /

registers

continues to purchase

over time

clicks mobile

ad

makes first

purchase

Downstream behavior – after the action

Understanding ROI – return on ad spend

how much it costs to acquire a customer

how much you earn off that customer

how much greater your LTV is than your CPA

CPA

LTV

ROI

Understanding ROI – return on ad spend

LTV

ROI

how much it costs to acquire a customer

how much you earn off that customer

how much greater your LTV is than your CPA

CPA

LTV

ROI

Understanding ROI – return on ad spend

ROI

Understanding ROI – return on ad spend

how much it costs to acquire a customer

how much you earn off that customer

how much greater your LTV is than your CPA

CPA

LTV

ROI

Pitfalls of CPA – an example

Pitfalls of CPA – an example

$10 CPA

Pitfalls of CPA – an example

$10

Pitfalls of CPA – an example

$10

$10 $9

$12

Pitfalls of CPA – an example

CPA LTV ROI

$9 $10 11%

$12 $50 317%

33% 400% 28XIncrease

Pitfalls of CPA – an example

CPA LTV ROI

$9 $10 11%

$12 $50 317%

33% 400% 28XIncrease

Pitfalls of CPA – an example

CPA LTV ROI

$9 $10 11%

$12 $50 317%

33% 400% 28XIncrease

Pitfalls of CPA – an example

and it gets worse…

Audience CPA Network’s Margin

Steve $9 $1

Broke Brian $7 $3

Debtor Dan $5 $5

CPA – “Customer Permitted Arbitrage”

$10

CPA – buying Likes

DEADLY SINS OF CPA BASED BUYING7

1. Results in opportunistic buying

2. Encourages arbitrage models

3. Discourages buying high value audiences...

… and encourages buying low value audiences

3. Discourages buying high value audiences...

4. Values all customers equal

5. Limits campaign scale

6. No price elasticity

7. Overpay for cheap audiences

How should we buy to avoid all these pitfalls?

ROI MOBILE

4.5M

Fast growing retailer on desktop – longitudinal impact

total member

base

38%4.5M

Fast growing retailer on desktop – longitudinal impact

total member

base

acquired from

Facebook

38% 400%4.5M

Fast growing retailer on desktop – longitudinal impact

total member

base

more valuable customers acquired

with ROI

acquired from

Facebook

Top mobile app developer – results

Nanigans

Mobile ad _x000d_networks

74%

49%

Optimizing for ROI – 51% Higher ROI

(CPA)

(ROI)

49% ROI

7 days after engaging with ads

Top mobile app developer – goal

49% ROI

performance on other mobile ad networks

Top mobile app developer – goal

20+

Top mobile app developer – strategy

49% ROI

in half the time!

Top mobile app developer – results

Top mobile app developer – results

92% ROI

breaking even on ad

spend

CPA by definition means you’re not buying for ROI !

1. TARGETING

2. CREATIVE

3. MEDIA BUYING

Targeting –

no longer inferred or non-personal

Targeting –

Creative –

no longer tiny banner ads

Creative –

Media buying –

no longer based on proxy metrics

like CPA

Media buying –

Nanigans_x000d_(ROI)

Mobile ad _x000d_networks_x000d_(CPA)

74%

49%

ROI Based Buying – 51% Higher ROI

“Today, there’s no argument – Facebook is a mobile company.”

Thank you!cheryl@nanigans.com

Cheryl Morris | Director of Marketing | @cheryllmorris