What is Mobile?Media, Platform, Device, Network, or

Something Else Entirely

Joe Laszlo, Senior Director

IAB Mobile Marketing Center of Excellence

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 mini IAB within the IAB”

• Goal: drive growth of the mobile advertising marketplace and of our members’ share of mobile marketing spend

• Five Mobile Center staff, led by Anna Bager, IAB’s VP of Mobile

• Separate Mobile Center Board of Directors, which reports to overall IAB Board

3

IAB Mobile Marketing CenterBoard and Supporting Members

Current as of October 23, 2013

4

What is Mobile?IAB Mobile Center

Kleiner Perkins Forecasts Robust Global Mobile Growth

Source: Mary Meeker and Liang Wu ,Kleiner Perkins Caufield Byers, “Internet Trends,” Presented at D11 Conference, May 29, 2013. 5

US Mobile Usage Crossinga Tipping Point

Source: comScore Mobile Future in Focus 2013, released Feb. 2013, data from MediaMetrix Multi-Platform (Beta), U.S., Dec-2012

Share of Total Time Spent Online For Selected Categories

6

7

What is Mobile?• It’s a device• It’s a network• It’s an operating system• It’s a technology• It’s a business model• It’s a medium• It’s a platform• It’s a buzzwordIT’S HOW W

E LIVE OUR LIVES

8

Mobile Is Everywhereand Everything

9

Defining “Mobile First”

• Mobile First is often described in terms of business strategy—it’s how companies should think.

• But Mobile First is really about how consumers with smartphones and tablets are living their daily lives.

• It’s about a behavioral and social change

• These changes create challenges and opportunities for companies seeking a consumer audience

10

“Mobile” Can Be Any Screen

Source: http://www.timessquarenyc.org/index.aspx, http://mobilephones.umwblogs.org/imagery/

11

Or No Screen At All

Source (Google Glass): http://blogs.independent.co.uk/2013/02/20/a-detailed-look-at-the-google-glass-experience/

12

Information Gets More Subtleand Pervasive

13

And We Don’t Use Screens One at a Time

77% of the time when we’re using a TV, we’re using another device49% with a phone | 34% with a PC/laptop

57% of the time when we’re using a smartphone, we’re using another device

29% with a television | 28% with a PC/laptop

Source: http://services.google.com/fh/files/misc/multiscreenworld_final.pdf

14

Australian Defence Forces Use Multiple Screens to Recruit Medics

2013 IAB MIXX Award GOLD Winner for Branded Mobile App AND Mobile Ad Campaign

http://vimeo.com/52084256

15

Screens Can Bring Families Together

16

Or Keep Us Company When We’re Alone

17

SAS Mobile Campaign Unites Loved Ones

http://vimeo.com/34140861

18

Percentage of Use In Home

Source: Council for Research Excellence

Smartphone

Tablet

82%64%

19

Smartphones Enable Shared Personal Experiences

20

Gillette Nordic Campaign SharesRough Swedish Winters

http://www.youtube.com/watch?v=8HoA6IhBhyw

2013 IAB MIXX Award GOLD Winner for Location-Based Advertising

21

Mobile is Changing Etiquette

http://www.huffingtonpost.com/2013/04/09/yeah-yeah-yeahs-smartphone-ban_n_3044400.html

Sign at recent Yeah Yeah Yeahs Concert in NYC

22

And Changing How We Shop

Mobile Drives Store Traffic

http://www.youtube.com/watch?v=yH8Br_f3p9E

24

Tablets and Smartphones:The Two Sides of Mobile

IAB Mobile Center

25

Mobile Value Propositions Vary By Device Type

Source: Mobile’s Role in a Consumer’s Media Day: Smartphones and Tablets Enable Seamless Digital Lives – ABI Research & IAB Mobile CenterLink: 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.”

26

Usage Reflects Differing Views of Devices

Source: Mobile’s Role in a Consumer’s Media Day: Smartphones and Tablets Enable Seamless Digital Lives – ABI Research & IAB Mobile CenterLink: http://www.iab.net/guidelines/508676/mobile_guidance/mobileusage

Watch TV/ video

Read print

Shop on-line

Work

Social media -

post/ read

Email - check

Lookup info 'on the go'

0% 25% 50% 75% 100%68%

69%

63%

37%

34%

39%

22%

8%

9%

15%

16%

30%

34%

60%

SmartphoneTablet Percentage of Mobile Device Users

Device Preference for Activity

Question: Which device do you prefer to use to do [activity]?

Smartphone centric activities

Tablet centric activities

27

For Small Children, Magazines are Broken Tablets

28

Adobe Estimates Tablet Internet Usage Outpacing Smartphones

Source: Adobe, The State of Mobile Benchmark: Adobe Digital Index, Q2 2013http://success.adobe.com/assets/en/downloads/guides/13926_di_mobile_benchmark_final.pdf

29

Tablet Browsing Peaks in Morning and Especially

Evening

Source: comScore Device Essentials, U.S., Monday, Jan. 21, 2013

Share of Browser-Based Page Traffic by Hour for Computer, Smartphone and Tablet Platforms

30

Apps and Browsers:The OTHER Two Sides of

Mobile

IAB Mobile Center

31

Apps v. Browser: Steady Relationship v. Casual

Encounter

Used Apps

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

51%

50%

Consumers use mobile web and apps in equal numbers…

Time using apps

Time using mobile web81.5%

18.5%

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

32

App Categories and Browsers by Time Spent

33

Implications ofthe New Mobile World

IAB Mobile Center

2011 20120 €1 €2 €3 €4 €5 €6 €7 €8 €

€ 3.769

€ 6.889

+82.8%

Global Mobile Ad Revenue Nearly Doubled in 2012

Source: Global Mobile Advertising Revenue: Display, Search, Messaging 2011 & 2012 Across Regions, Report prepared by IHS Electronics & Media for IAB and IAB Europe

Eu

ros B

illion

sGlobal Mobile Ad Revenue (Euros-Billions)

34

Per-User North AmericanMobile Ad Revenue Leads World

$-

$2

$4

$6

$8

$10 $9.12

$2.83

$1.28 $0.26 $0.26 $0.13

Source: IAB, IAB Europe ,IHS Electronics & Media, Global Mobile Advertising Revenue: Display, Search, Messaging 2011 & 2012 Across Regions, July 2013, http://www.iab.net/globalmobile35

36

We won’t realize the full potential of mobile advertising until we begin to develop advertising applications around the full suite of emerging mobile behaviors.

37

Paranormal Activity IV Scares Via Core Phone Feature

http://www.youtube.com/watch?feature=player_embedded&v=nekNhjzFbjk#t=77

2013 IAB MIXX Award GOLD Winner for Custom Mobile Rich Media Display

38

Think More Precisely About Mobile Users

PassiveActive

Not moving Moving

In home Out of home

Calm Agitated

39

ConclusionsIAB Mobile Center

40

Understanding mobile behaviors means understanding the larger ecosystems in which mobile devices are used.

41

Let’s not treat mobile like the web, only smaller.

42

Mobile Does, and Does NOT, Change the Basics of

Marketing

Advertising

Success!

43

Small Devices Can Cause Big Changes

http://www.youtube.com/watch?v=B4eqE1GTTEs

44

Thank you!joe@iab.net

IAB Mobile Marketing Center of Excellence