programmatic buying in mobile advertising

MOBILE PROGRAMMATIC: A BUYER’S PERSPECTIVE, 2016

Table Of Contents

•  Introduction

•  Research Objectives

•  Research Methodology & Participants

•  Key Findings

•  Survey Results

ü  Current & Future state of mobile programmatic advertising

ü  Motivation/Barriers to adoption of mobile programmatic advertising

ü  Programmatic Buying Trends Across Different Formats

ü  Programmatic Monetization Model Preference

•  Conclusion

Mobile Programmatic – The Next Frontier

Mobile is the new frontier of programmatic buying - the technology is

poised to help marketers more effectively connect with consumers in

the moment, across screens. After all, mobile advertising is growing

faster by the year, and programmatic, which is expected to be a $20

billion industry by the end of 2016, is showing no signs of slowing down.

From a marketer’s point of view, it is a dream; mobile is becoming

increasingly important, not just because of consumer adoption, but also

because of programmatic technology. It is encouraging to know that

marketers are increasingly understanding the larger business benefits of

using programmatic marketing as an underpinning.

RESEARCH OBJECTIVES

At InMobi, we wanted to better understand how brand marketers view

the mobile programmatic space. This lead us to conducting our own

research program to track the usage and investment in mobile

programmatic advertising, along with the benefits, opportunities and

roadblocks in the current dynamic, data driven digital landscape

To help paint a detailed picture of this ever-evolving marketplace we

conducted an extensive online survey, undertaken by a diverse group

of over 180 digital marketers at brands and agencies during a five-

week period in June 2016.

Mobile Programmatic: A Buyer’s Perspective, 2016

RESEARCH METHODOLOGY

This study was developed by InMobi.

InMobi conducted an on device survey among list of brands, and agencies throughout the world. The survey invitation was sent multiple

times via email to InMobi’s contacts across a range of sectors, including FMCG, travel, retail, finance, insurance and arts and entertainment between June 2016 to July 2016. The recruitment process yielded a total of 181 completed surveys.


CURRENT & FUTURE ADOPTION OF MOBILE PROGRAMMATIC

Insights

1.  75% of marketers are currently using programmatic, almost a third of them have been doing so less than a year.

2.  Marketers are passionately embracing mobile programmatic and spending optimism runs high.

3.  Retargeting and acquisition goals are fundamental goals for mobile programmatic today.

75% Of Marketers Are Currently Using Mobile Programmatic, A Third Of Them Have Been Doing So Less Than A Year

Usage Period Of Mobile Programmatic Advertising Among Marketers

•  Programmatic has truly arrived. 75% of marketers surveyed use programmatic for buying smartphone inventory. The results show that programmatic has established itself as an effective way of buying mobile media.

•  24% said they had been incorporating programmatic advertising into their strategies for more than 24 months.;17% of them plan to do in 2016.

12%

16%

23%

24%

17%

8%

6 months or less

6 to 12 months

12 to 18 months

More than 24 months

Not using mobile programmatic advertising but have plans to do in 2016

Not using mobile programmatic advertising and have no plans to do so

Q. How long has your company been using mobile programmatic? Sample Size : Global n=181

•  Of those not using programmatic, the biggest barriers for adoption are complexity of the ecosystem (58%), skills shortage (42%) and lack of education (33%). The ecosystem needs to overcome these barriers in order to harness the true potential of programmatic.

•  Interestingly, the results show that programmatic has established itself as an effective way of buying mobile media, however there is a clear disconnect between this buying technique and knowledge levels. Therefore, strengthening this knowledge base across the industry should remain a top priority moving forward.

Navigating The Obstacles: Complexity of the Ecosystem & Lack of Knowledge are Driving Fears

Obstacles that Inhibit Adop2on of Mobile Programma2c

Q. What are the pain points that inhibits adoption of mobile programmatic? Please select all that apply Sample Size : Global n=30

58%

42% 33%

25% 17% 17%

8% 17%

Complexity of the ecosystem

Skills shortage Lack of education Lack of appropriate measurement

Lack of transparency Resistance from clients

Brand Safety Issues Others

•  74% of marketers are now using programmatic for retargeting users, 62% use it for performance marketing and 61% for branding. •  This represents a huge opportunity for the industry to build targeting and measurement solutions that deliver greater effectiveness and

efficiency for upper-funnel campaigns.

Retargeting/Acquisition Goals Are A Fundamental Goal For Mobile Programmatic Today

Primary Goals To Achieve Through Mobile Programmatic

Q.: What goals are you trying to achieve via mobile programmatic advertising today? Select all those that apply Sample Size : Global n=173

74%

62%

61%

37%

4%

Retargeting/Acquisition (Generating new sales from new customers)

Performance marketing (app downloads/ installs)

Branding (Increasing brand awareness and favorability)

Retention (Improving Customer satisfaction, wallet share, loyalty etc.)

Others

Ad Spend on Mobile Programmatic Paints a Bright Picture

Q.: Thinking ahead to the end of 2016, do you see your company’s % of budget allocated to mobile programmatic advertising? Sample Size : Global n=173

•  Marketers are passionately embracing mobile programmatic. 77% of them foresee their mobile programmatic spend increasing in 2016; 34% see its use increasing significantly

34%

43%

12%

1% 2% 8%

Increase significantly

Increasingly somewhat

Staying about the same

Decreasing somewhat

Decreasing significantly

Not Sure

Future Budget Allocation Towards Mobile Programmatic Advertising

23%

43%

20%

7%

6%

0%-10%

11%-30%

31%-50%

51%-70%

71%-100%

•  In the next twelve months, the majority of marketers (66%) plan on spending at least 50% of their digital media budget programmatically

•  In addition to the growing familiarity among buyers and sellers with programmatic technology, several other factors are contributing to rapid adoption across a variety of channels and ad formats. These include programmatic undeniable efficiency, its unparalleled ability to pair rich audience data with ad inventory and its improved audience-targeting capabilities which extend beyond cookie-based devices.

Buyers are Planning to Spend Their Digital Advertising Budget Towards Programmatic in the Next 12 Months

% Share of Digital Ad Spend Allocated to Mobile Programmatic Advertising in 2016

Q. : What % of your digital advertising budget do you expect to be traded programmatically on mobile in the next 12 months’ time? Sample Size : Global n=173

BENEFITS & CHALLENGES FOR MOBILE PROGRAMMATIC ADOPTION

Insights

1.  Advertisers and agencies have clear views on the perceived benefits of programmatic.

2.  Engagement via mobile video & cross device campaigns emerge as a key driver of programmatic trading adoption.

3.  Barriers advertisers face in rolling out mobile programmatic include - Fraud/ Viewability concern, Lack of transparent reporting & perceived ROI

Key Reasons for Growing Mobile Programmatic Investments

Engagement via Mobile Video & Cross Device Campaigns Emerge as Key Drivers of Programmatic Trading Adoption

Q. What do you feel are the key reasons for your company to consider investing in / increasing its programmatic trading investment? Please rank in order of most important to least Sample Size : Global n=173

Increased engagement via programmatic video

Ability to build effective cross- device campaigns

Gaining access to premium inventory and audiences at scale

Opportunity to leverage first & third party data for a better understanding of the user

Ability to optimize and target right audience in real time

Lower cost of media resulting in higher ROI

Increased targeting & trading efficiencies

1 2 3 4

5 6 7

Fraud/Viewabilty Concerns, Lack Of Transparent Reporting & ROI are the Key Factors Hindering Mobile Programmatic Adoption

Q. As a Buyer of Programmatic, Which of the following issues do you perceive as barriers to programmatic adoption by your advertisers? Please select all that apply Sample Size : Global n=173

48%

42%

41%

36%

35%

29%

28%

26%

25%

21%

15%

5%

Fraud/viewability concerns

Lack of transparent reporting

Lack of perceived or measurable ROI

Complexity of the marketplace

Lack of understanding of Programmatic amongst the campaign execution team

Cost of highly targeted third-party data

Attribution – digital to real world is difficult

Brand safety

High minimum campaign spends

Limited relevant data sets

Inconsistent privacy policies

Others, please specify

Key Factors Hindering Programmatic Adoption

PROGRAMMATIC ADVERTISING : CHANNEL, AD FORMAT, TARGETING & MONETIZATION MODEL PREFERENCE

Insights

1.  Mobile will see its fair share of spending increases; it ranked as the No. 1 area of opportunity for programmatic.

2.  Higher impact ad formats like Video & Native are the most desirable for mobile programmatic.

3.  Audience targeting is driving programmatic adoption.

4.  In terms of monetization model, marketers want it all i.e., Direct Deal, Private marketplace and Open exchange.

•  Mobile will see its fair share of those spending increases; it ranked as the No. 1 area of opportunity for programmatic, cited by 84% of marketers.

•  Video landed in second, called out by 73% of

respondents.

Mobile Ranks as the No. 1 Area of Opportunity for Programmatic, followed by Video

Q. Looking ahead to 2016 about programmatic advertising, which of the following advertising/marketing channels do you plan to invest the most? Please select all that apply Sample Size : Global n= 173

84%

73%

64%

53%

41%

19%

16%

9%

9%

8%

Mobile

Video

Display/Online

Social

Native Advertising

E-mail

TV

Out-of-Home

Radio

Print

•  In terms of ad format, 44% of marketers prefer video for mobile programmatic, followed by (native 23%) because they are highly effective at getting the consumer’s attention.

•  Clearly, the results shows that Programmatic video has arrived and is on an upward swing. As programmatic technology evolves, and consumers move to video, away from their TV screens, the shift in programmatic video technology is only waiting to happen.

•  For advertisers and publishers alike, programmatic video represents a huge opportunity to improve efficiency as well as profits.

Video & Native Ads are the Most Desirable Formats for Mobile Programmatic

Q. Which ad category do you expect to see the largest overall increase in programmatic mobile media spending this year? Sample Size : Global n= 173

Most Desirable Ad Format For Mobile Programmatic

VIDEO

44% NATIVE ADS

23% BANNER ADS

18%

RICH MEDIA

12% INTERSTITIALS

2% SEARCH

1%

•  When asked which targeting parameters were used for buying or selling inventory, advertisers cited audience (46%), followed by content (16%) and location (12%) .

Audience Targeting is Driving Programmatic Adoption

Q. What are the most popular targeting parameters for mobile ads you buy via programmatic channels? Sample Size : Global n= 173

Targeting Preference for Mobile Programmatic

46%

16%

12%

11%

7%

4%

4%

0%

By Audience

By Content (site or app)

By Location (GPS device lat/long)

By User (Device ID, Cookies, etc.)

User retargeting

By Device

By Device Features ( OS, OS version, device type etc.)

By Operating system

Marketers Prefer Direct Deal, PMP & Open Exchange Monetization Model

Q. Which programmatic monetization model do you plan to use in 2016? Sample Size : Global n= 173

Preferred Programmatic Monetization Model

6%

12%

20%

44%

18%

Direct Deal Private marketplace Open Exchange All of the above I don’t know

Leveraging First-look, Access to Premium Inventory & Exclusive Audience are Factors Most Vital for Buying via PMP

Q. What are the main reasons for buying via PMP? Please select all that apply Sample Size : Global n= 173

Main Reasons for Buying via PMP

46%

39%

39%

38%

37%

22%

3%

Allows advertisers to get a first-look and acquire premium inventory

Allows access to exclusive audiences

PMP allows for Precise audience targeting

Provides more data insights/signals/acess to first party data

PMP provides a Brand Safe environment

Can remove the need for a direct sales team


MOBILE PROGRAMMATIC - SELECTING THE RIGHT PARTNER & TECHNOLOGY

Insights

1.  Performance, Audience reach & Targeting are the key parameters in selecting mobile programmatic partner.

2.  Attribution, KPIs & Lower CPA are the key to further mobile programmatic investments.

3.  Marketers are interested in the potential of DSP and multi-channel attribution.

Performance, Reach & Targeting are the Key Factors in Deciding Mobile Programmatic Partner

Q. How important is each of the following when evaluating potential partners to buy impressions from programmatically? Please select all that apply Sample Size : Global n= 173

63%

59%

58%

57%

57%

52%

42%

36%

34%

9%

3%

Performance

Audience scale/reach

Data targeting/segmentation

Viewability Tracking

Anti- fraud

Cost (technical/human)

Unique/differentiated inventory

Creative ad units

Verification

Lack of comprehension


•  Asked to rate the importance of evaluating potential partners when buying impressions programmatically, 63% of respondents gave top marks to performance, well ahead of data targeting/segmentation and audience scale/reach.

•  Although viewability trailed behind performance and verification, both are nonetheless becoming important components of doing business with supply partners.

Key Factors in Evaluating Potential Partner for Programmatic Advertising

Attribution, KPIs & Lower CPA are the Key to Further Mobile Programmatic Investments

Q. I would recommend more mobile programmatic Buying if I had the following: Sample Size : Global n= 173

Marketers Recommend Mobile Programmatic if the Partners Can Provide

17% 17% 16% 14% 12% 8% 7% 6% 4%

A#ribu(on Ability to track to in store traffic or other KPIs

CPA lower Be#er targe(ng op(ons

Conversion tracking

More inventory

Video and rich media inventory

Consistent privacy policies

Crea(ve assistance

DSP and Multi-channel Attribution Will be the Hot Educational Topics

Q. How interested are you in learning about the following technologies in 2016? Sample Size : Global n= 173

DSP

1

Multi- Channel Attribution

2

Cross-Device Tracking & Delivery

3

Ad Viewability Measurement

4

DMP

5

Technologies That Interest Buyers

APPENDIX


SURVEY SAMPLE BY LOCATION

13%

50%

16%

3%

12%

7%

0%

North America APAC Europe LATAM Middle East Africa Antarctica


SURVEY SAMPLE BY RESPONDENT TYPE SURVEY SAMPLE BY VERTICALS

28%

50%

8%

14%

Brand Agency

Agency Trading Desk DSP/DMP

14%

11%

11%

11% 9%

8%

6%

5%

26%

Entertainment

Telecom

Technology

Consumer Goods

Retail

Travel

Finance

Automotive

Others

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