the state of the u.s. mobile advertising industry and what ... · the state of the u.s. mobile...
TRANSCRIPT
The State of the U.S. Mobile Advertising Industry
and What Lies Ahead
Hans Fredericks, VP, Marketing Solutions, comScore, Inc.
Michael Becker, Managing Director, N.A., Mobile Marketing Association
Scott Hendrickson, VP, Advertising Sales, Where, Inc.
* Note: A copy of this presentation will be sent to all attendees within 48 hours of today’s webinar
© comScore, Inc. Proprietary.
Our Presenters
Michael Becker Managing Director, North America
Mobile Marketing Association
Hans Fredericks VP, Marketing Solutions
comScore, Inc.
Scott Hendrickson VP, Advertising Sales
Where, Inc.
© comScore, Inc. Proprietary.
Agenda
Current Understanding of Mobile Marketing
Mobile media data and insights into the mobile advertising
opportunity
Big Brands in Action: Hyper Local Use Cases and Best Practices
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REDUCE FRICTION
PROTECT GUIDE MEASURE PROMOTE EDUCATE
COLLABORATE
www.mmaglobal.com
STIMULATE GROWTH
About the Mobile Marketing Association
Seven hundred (700) members strong, the MMA‟ primary focus is to establish
mobile as an indispensable part or the marketing mix.
The MMA works to promote, educate, measure, guide and protect the
mobile marketing industry worldwide.
© comScore, Inc. Proprietary.
comScore Digital Business Analytics
Audience Measurement
Site Analytics
Vertical Market Solutions
Social Analytics
Copy Testing
Campaign Verification
Ad Effectiveness
Cross Media
Mobile Audience Measurement
Network Analytics & Optimization
Customer Experience
& Retention Management
User Analytics
Advertising Analytics
Mobile Analytics
Un
ifie
d D
igita
l M
easu
rem
ent™
V0910
© comScore, Inc. Proprietary.
WHERE Ads™ Reaches 51MM Consumers
The Largest Hyper-local Mobile Ad Network
• Focused on “pre-checkin” and driving local commerce
• 100% of inventory is location targeted • 3.5B impressions/mo. via 275+ publisher
partners • 120,000+ hyper-local ad campaigns daily • Proprietary Relevancy Ad Serving Technology • Recently acquired by eBay / PayPal
Publisher Portal Hyper-local Reach
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Mobile
It‟s a Big Deal
Really Big Deal!
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Grabbing Everyone‟s Attention
Rich Media
Advertising
Whole World
of Apps
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Mobile Web & HTML 5
Tablets
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“If your plans don‟t include mobile,
then your plans are not finished.”
Wendy Clark, Senior Vice President, Integrated Marketing,
Coca-Cola (IAB Annual Leadership Meeting 2011)
© comScore, Inc. Proprietary.
Mobile Marketing Defined
“Mobile Marketing is a set of
practices that enable organizations
to communicate and engage with
their audience in an interactive and
relevant manner through any
mobile device or network.”
(Mobile Marketing
Association, 2009)
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MISR image of the Central Amazon
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Convergence of Mobile Context in Marketing
Mobile is pulling these forces of marketing together
Digital
marketing
Traditional
marketing
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Available Mobile Paths
Content Proximity
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Feature Phones
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Smartphones
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Connected Devices
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Mobile
Engagement
Outdoor
Events
TV
Online
Point of Sale
Radio
On
Package
Through Mobile Media
SMS
MMS
Inte
r-
net App
s
Cont
ent
Prox
.
Two Inter-dependent
approaches to Mobile Marketing
Direct (“through”)
– Marketer Push
– Consumer Pull
Indirect (“with”)
– “Mobile Enabled Traditional
Media”
– Mobile Advertising
© comScore, Inc. Proprietary.
Source: MMA 2nd ANNUAL VIEW FROM MADISON AVENUE (2010)
Mobile Tactics Used U.S.
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Mobile Advertising Delivery Mediums
Mobile Web SMS/MMS Mobile Video Apps
• Static/Animated/Rich
Media Banners
• Text Ads
• Expandable Ad Units
for iPhone and
Android
• Interstitials for
iPhone and Android
• Text Ads in SMS
or MMS
• Picture
messaging in
MMS
• Pre-roll video
• Post-roll video
• Banner (Idle Screen)
• Rich Media Ad Units
(In App)
• Static/Animated
Banners
• Text
• Interstitials
• Wallpapers
• Interactive Ad
Units
Different Ad Executions
Other Ad channels: Voice, Bluetooth, Search
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U.S vs. Worldwide Mobile Ad. Rev.
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Global Ad Revenue Share By Type „10 vs. „15
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mobile is about…culture
Is mobile all about Technology?
It’s also about Culture.
© comScore, Inc. Proprietary.
Consumer Behavior Depends on the Category
Source: Bringing Life to the Mobile Segment. Carlson Marketing (2010)
Source: North American Technographics Benchmark Survey,
Q2 2010 (US, Canada)
Note: Examples of advanced activities include: downloading applications, checking
news/weather/sports, using mobile banking, checking flight/train/bus status,
researching or purchasing products, using navigation or GPS services, using
coupons, etc.
© comScore, Inc. Proprietary.
GSMA MMM Behavioral media
measurement
Complexity and fragmentation of mobile market requires an array of data sources
and methodologies for a 360° view
Ad Metrix Mobile Mobile Ad Tracking
Tools
Mobile Metrix Smartphone Meter Panel
Network Census Network Log Analysis
MobiLens Market Tracking via
Intelligent Online Survey
Site & App Census Mobile Web, App &
AdNet Tagging
comScore Mobile Measurement Methodologies
© comScore, Inc. Proprietary.
Mobile Media Users are Nearing a Majority in the US
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
Mobile Media, 37.8%
SMS (and not mobile
media), 30.2%
Just Voice, 32.0%
Mobile Market Segments - March 2010
88.3 Million
Mobile Media, 45.7%
SMS (and not mobile
media), 27.2%
Just Voice, 27.1%
Mobile Market Segments - March 2011
106.8 Million
Mobile Media User = Used browser, application, native email, stream or download music
and broadcast or on demand video (does not include SMS)
© comScore, Inc. Proprietary.
Mobile Users Differ Dramatically by Mobile Activity and Content
Accessed
Unlimited Data Plan
Used Browser
Purchased Ringtone
Mobile Media
Listened to Music
Used App
Purchased Game
Made Own Ringtone Social Networking
Ringback
Played Games
44%
45%
46%
47%
48%
49%
50%
51%
52%
53%
25 27 29 31 33 35 37 39
% F
em
ale
Median Age
Demographics of Mobile Media Activities Higher on chart = more female Further to right = older Size of bubbles = # of users
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
© comScore, Inc. Proprietary.
Browser and Application Usage Showing Continuous Growth
*Excludes Mobile to Mobile
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
28.6% 30.1%
37.3% 38.6%
30.6%
28.4%
25.0%
27.0%
29.0%
31.0%
33.0%
35.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
Used Application (except native games)
Used Browser
% Y
oY
-Gro
wth
% M
ark
et
Browser and Application Usage Growth
Mar-2010 Mar-2011 Year-on-Year Growth
0%
10%
20%
30%
40%
50%
App Browser
SMS* App OR Browser
App OR Browser OR SMS*
48%
45%
39% 37%
26%
Browser, App, SMS Usage
© comScore, Inc. Proprietary.
Facebook and Google Search Lead Market on Both Mobile and PC
Product: MobiLens / Media Metrix
Data: March 2011
Country: US
73% 72%
53%
46% 42%
34% 29% 28%
25% 20% 20% 18%
8%
0.4%
37%
52%
15% 11%
28%
12% 12%
24%
29%
14% 16%
22%
15% 10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
% G
rou
p
Brand Market Share - PC vs Mobile
PC Mobile
© comScore, Inc. Proprietary.
Time Spent on Mobile Skews to Social Media Sites
Product: Mobile Metrix / Media Metrix
Data: March 2011
Country: US
269
82 59 56 52 42
22 21 11 6
347
215
79
144
203
22 32
130
17 13
Average Minutes per Visitor – Mobile vs. PC Internet (Top Mobile Properties)
Mobile
PC
652
315 269
154 82 80 74 64 61 59
107 97
347
95
215
3 2
155
30 79
Average Minutes per Visitor – Mobile vs. PC Internet (Top Mobile Minutes per Visitor Properties)
Mobile
PC
© comScore, Inc. Proprietary.
30.7%
40.2%
45.7%
32.1%
38.1%
43.3%
16.9%
24.8%
31.5% 33.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
%Y
oY
-Gro
wth
Un
iqu
e U
se
r (0
00
)
Top 10 Mobile Categories - Year-on-Year Growth
Mar-10 Mar-11 Year-on-Year Growth
Double-Digit Growth in All Major Categories – Led by Social Media
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
© comScore, Inc. Proprietary.
Mobile Delivering Incremental Reach; Mobile Only is Over 40% of
Pandora‟s Audience
Visitors
Home/Work PC
Home/Work PC and Mobile
Mobile
13,381
7,135
11,126
42%
23%
35%
Pandora – Total Universe
Audience (000)
Product: comScore Total Universe Report.
Data: April 2011
Country: US
Beta Data
2.3%
6.7%
4.9%
5.5% 5.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
NY Times LA Times Wash Post WSJ Chicago Trib
Inc
rem
en
tal R
ea
ch
To
tal U
niv
ers
e A
ud
ien
ce
(0
00
)
Total Universe Audience Incremental Reach
Incremental Reach from Leading U.S. News Brands' Mobile Websites
Source: comScore Total Universe Report, U.S., April 2011 (beta data)
© comScore, Inc. Proprietary.
Mobile Social Media Booming in US
Almost daily users of mobile
social media +70% - growing
faster than category
Conversational Media in Mobile
Metrix (smartphone panel) has
71% reach
– 36% minutes, 44% PVs
– Nearly all is Facebook with 87%
of category minutes and 83% of
PVs 0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Almost every day
At least once a week
One to three times in the month
US Social Media Unique Mobile Users
Product: MobiLens, Mobile Metrix
Data: Three month average ending March 2011
Country: US
© comScore, Inc. Proprietary.
Top Apps Largely Free – Ads Key to Monetization
Among top 50 apps with widest reach, „Angry Birds‟ is the only paid app
During March 2011, 12.7% of downloaded apps were paid – including five of the top 20 (Angry Birds, Cut
the Rope, Fruit Ninja, iSlash, Angry Birds Seasons) and ten of the top 50
Product: iTunes App Tracker
Data: Downloads Ever – March 2011
Country: US
Rank Title Developer Genre Free / Paid % Reach of all Apps
Downloaders
1 Facebook Facebook Social Networking Free 59.6%
2 Pandora Radio Pandora Media, Inc. Music Free 38.0%
3 Paper Toss Backflip Studios Games Free 28.6%
4 Google Search Google Reference Free 22.9%
5 Backgrounds Stylem Media Entertainment Free 22.7%
6 Google Earth Google Travel Free 22.2%
7 Touch Hockey: FS5 (FREE) FlipSide5, Inc. Games Free 21.7%
8 Skype Skype Software S.a.r.l Social Networking Free 21.4%
9 Myspace MySpace.com Social Networking Free 21.2%
10 Movies by Flixster, with Rotten
Tomatoes - Free Flixster Entertainment Free 20.8%
Top 10 iTunes Apps
© comScore, Inc. Proprietary.
More Advertisers are Turning to Mobile – With Growing Diversity of
Categories and Advertisers
Product: Ad Metrix Mobile
Data: April 2009 - April 2011
Country: US
26%
3%
6%
2% 7%
50%
5%
1%
March 2011 – Advertised Categories
Consumer Discretionary
Consumer Staples
Financials
Industrials
Information Technology
Mobile Content and Publishing
Telecommunication Services
Other
0
100
200
300
400
500
600
700
800
Number of Display Advertisers
© comScore, Inc. Proprietary.
50%
12%
36%
16%
32%
18%
8%
30%
0%
10%
20%
30%
40%
50%
60%
SMS Ads Received Responded to SMS Ads
SMS Ad Type – Received vs. Responded
Info about product/service/brand Coupon or discount Contest Donation to charity/non-profit
Mobile subscribers receiving – and responding to SMS ads
28% of mobile subscribers in the US received one or more SMS Ads in March 2011; of those, 17%
responded to at least one SMS ad
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
Received SMS Ad: 66.1 million
Responded to SMS Ad: 11.3 million
© comScore, Inc. Proprietary.
Smartphones Critical to Mobile Advertising Opportunity
4%
5%
16%
19%
8%
28%
85%
82%
0% 20% 40% 60% 80% 100%
Responded to SMS ad
Saw Ad on Web/In App
Used App*
Used Browser
Service Penetration
Smartphone
Feature Phone
*Except native games
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
© comScore, Inc. Proprietary.
Popularity of Smartphones is Increasing – Bodes Well for Advertising
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
20.0%
31.0%
80.0%
69.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar-2011
Penetration – Embedded Base
Smartphone Feature Phone
29.3%
47.7%
70.7%
52.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar-2011
New Devices Acquired
Smartphone Feature Phone
© comScore, Inc. Proprietary.
Google‟s Android Now In the Lead on Smartphones
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
422%
1%
56%
-20% -19%
19%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
0
5,000
10,000
15,000
20,000
25,000
30,000
Google RIM Apple Microsoft Palm Symbian
% Y
ea
r-o
n-Y
ea
r G
row
th
Mo
bile
Ow
ne
rs (
00
0)
Smartphone OS Growth
Mar-2010 Mar-2011 YoY Growth
Google, 35%
RIM, 27%
Apple, 25%
Microsoft, 7%
Palm , 3%
Symbian, 2%
Smartphone OS Share
© comScore, Inc. Proprietary.
Ecosystem Competition Extends Beyond Smartphones
With iPad and iPod Touch, iOS
holds significant lead in
addressable audience for
developers
– Installed base of 44M devices
(65% more than Android)
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
0
10
20
30
40
50
iOS Android
Platform – Installed Base (M), March 2011
Smartphone Other Device
© comScore, Inc. Proprietary.
Tablets and other connected devices redefine “mobile” for advertisers
25%
15%
7%
23%
20%
8%
2%
30%
Share of Page Views by Device Type and Platform
Smartphone -Android
Smartphone -Other
Smartphone -Blackbberry
Smartphone -iOS
iPad -iOS
iPod Touch -iOS
Connected Device -Other
All Connected Devices Excluding Smartphones
Product: Connected Device Reporting
Data: March 2011
Country: US
© comScore, Inc. Proprietary.
Growth in check-in and location-aware devices and services creating
new opportunities
Product: MobiLens
Data: Three month average ending March 2011
Country: US, N= 30,817
27.8%
23.3%
19.3%
12.0% 11.0%
8.9%
5.0%
40.2%
32.1%
43.3%
27.5%
40.4%
28.4% 29.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Weather Search Maps Movie Information
Restaurant Information
Traffic Reports Travel Service
% Y
oY
-Gro
wth
% M
ark
et
Location Based Services
Mar-10 Mar-11 Year-on-Year Growth
© comScore, Inc. Proprietary.
To Sum
The mobile audience is growing rapidly
Multiple high reach advertising opportunities available – web, app, SMS
Major PC publishers building large mobile audiences, often incremental
Engagement increasing as mobile media usage becomes daily activity
Mobile social is the standout category
Mobile advertising is broadening, and also key to app monetization
Smartphones are key driver of audience, usage, advertising
Tablets and other connected devices redefining “mobile” for advertisers
Growth in check-in and location-aware devices and services creating more
localized advertising opportunities
© comScore, Inc. Proprietary.
Hyper-Local Use Cases and Best Practices
Scottie Pippen Michael Jordan
Wile E. Coyote Road Runner
Location Mobile Advertising
© comScore, Inc. Proprietary.
Hyper-Local Use Cases and Best Practices
Hyper-Local Formula
Reach + Relevancy Redemption/Engagement
© comScore, Inc. Proprietary.
Hyper-Local Use Cases and Best Practices
What WHERE is Seeing…
Location Dynamic Ads are outperforming static creative by 30%
Location Dynamic Ads are driving strong secondary engagement metrics:
40% of consumers are showing purchase intent
30% of consumers are “clicking to social”
20% of consumers are redeeming mobile offers
Dynamic Targeting of ads is driving a 60% increase in performance
© comScore, Inc. Proprietary.
Hyper-Local Precision Targeting: Geo-Fencing
– Store fronts
– Competitor Locations
– POI (Airports, Schools, Theme Parks, etc.)
– CPG‟s: Targeting Key Shopper Marketing Partners
Hyper-Local Use Cases and Best Practices
.02 mi.
© comScore, Inc. Proprietary.
Hyper-Local Use Cases and Best Practices
Hyper-Local Dynamic Targeting: “Roaming Geo-Fences”
– Weather
– Flu Index
– Store Performance Data
– Inventory Data
© comScore, Inc. Proprietary.
Event Based Marketing:
– Retail Events
– New Product Announcements
– Grand Openings
– Local Events and Sponsorship Activation
Hyper-Local Use Cases and Best Practices
© comScore, Inc. Proprietary.
Hyper-Local Use Cases and Best Practices
Hyper Local Content and Engagement: How can you align your
brand with what is happening around the consumer?
Weather
Local Sports Scores
– Local News or Traffic
Inventory (Popular local items, etc…)
Local Places…Aid in Local Discovery
© comScore, Inc. Proprietary.
Hyper-Local Use Cases and Best Practices
What to expect in the future…
The evolution of hyper-local advertising into commerce
Big Data and Relevancy will be king
A Multitude of Location Dynamic Offers
Inventory based offers
Store Performance based offers
Smarter Tools for Marketers to manage margins and drive sales
via real-time offers
© comScore, Inc. Proprietary.
Remember
Mobile isn‟t about mobile…it is about engagement and the value
consumers and you generate for each other
Mobile is both a standalone media and a enabler for traditional media and
will help you with:
– Branding, Awareness, Loyalty/Retention, Care
and Social Media Enablement
You can embrace mobile today, there are many resources.
© comScore, Inc. Proprietary.
Questions & Answers
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Want More? Don‟t miss: MMA Forum New York
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comScore, Inc. to
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Register today:
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Thank you!
Hans Fredericks
Michael Becker
Scott Hendrickson