State of the Industry: Mobile Survey Presented April 22, 2010 eMarketer Conference

State of the Industry: Mobile SurveyPresented April 22, 2010eMarketer Conference

Purpose:Check current vital signs

Look inside the brains of the industry

Help the industry see what’s aheadSo they can plan accordingly

Nearly 1000 RespondentsTotal Respondents

Agencies/ MarketersPublishersTechnologistsAdvertisers/ Brands

341 Agencies, Marketers

115 Brands

194 Technologists

308 Publishers

MOBILE SPENDING TO CONTINUE AT A HEALTHY RATE

MOBI SURVEY3/8/10 N=140 Copyright © DM2PRO 2010

33% increase on average25% said greater than 50%10% said greater than 100%21% said 10%

Subtracting those who said 0-1%, only 6% of total respondents are decreasing their mobile budget.

Agencies: By What Percent Will Your Mobile Business Change in 2010?

94% of agency respondents say their mobile ad spend is increasing.

dave gwozdz

Mobile Will Continue to explode94% of mobile markets/agencies will increase their business (need to understand what “increase their business’ means”)

Agency Outlook on Mobile Spending

MOBI SURVEY3/8/10 N=90/118 Copyright © DM2PRO 2010

• Agencies reported a 2009 average of$143K.

• 2010 Spend jumped 80% to $260K.

dave gwozdz

i dont understand this

BRANDS SEE IT COMING

Brands: Mobile transactions are just beginning. Less than 10% now


But20% of respondents say more than half their customer interactions are mobile

Brands: Mobile interactions are just beginning. Less than 10% now


But20% of respondents say more than half their customer interactions are mobile

Why Will Brands Increase Spending?

• “We simply want to be where are customers are, and more and more are mobile in both the consumer space and the b-to-b space, so we’ll be building out that mobile presence—in 2010 the focus in on making a compelling mobile Web experience in almost 200 countries worldwide.”

- Jay Dark, worldwide manager of mobile marketing, Hewlett-Packard, Palo Alto, CA

Vast Majority of Brands Predict Rise in Mobile Customer Interactions


Higher by an average of 64%

Fewer by an average of 16%

BRANDS• Will Spend to capture potential mobile

customers

MOBI SURVEY3/8/10 Copyright © DM2PRO 2010

Look for 2010 Mobile Brand Budgets to Double in Aggregate

2009 ($)

2010 ($)

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

Q1 Brand Spending Est.

$268,999


$679,744

Where is the spending coming from?

• So…..


More than 20% will spend more than 10% on Mobile this year!

MOBI SURVEY3/8/10 Non-Mobile Marketers N=69 Copyright © DM2PRO 2010

Non-Mobile Content

Mostly Incremental Spending, But Online Will Decrease for 26%


But online is most likely to give ground to fund mobile marketing.

Newbies

What about applications?


More Than Half Developed Apps for Clients


Engagement, Branding Lead as APP Deliverables


Key Questions Going Forward

• What are my marketing goals and how can mobile help?

• How much do I need to spend to accomplish those goals?

• How do I tie mobile into a 360 marketing plan?

PUBLISHERS:HOW DO WE MONETIZE ALL OF THIS GREAT NEW MOBILE CONTENT?


Publishers: Mobile Platforms Used


Most Mobile Revenue is Ad Supported


dave gwozdz

the next few slides need to prove thatmost content is ad supported.. and most of the inventory is unsold.heavey reliance on ad nets, yet ad netsarent fulfilling the promise yet.. or publisher may not know how to use multiple ad nets effeciently or effectively. better tools are needed

Mobile Most Often Sold Separately


But almost as often it’s bundled or a “value add”

CPM Most Frequent Charging Scheme


Pricing Varies Widely


• CPC $.05-$.50• CPA $5-$50• CPM $3-$30• Sponsorship $6-100k/month

Publishers: Seek More Revenue


Only 25% of MOBILE Publishers sell out more than half their inventory

MOBILE PUBLISHERS ASKING:

WHAT DO YOU WANT FROM ME?


…demographics received the most “most important” votes.

Suggested: Precision, Measurability, and Timeliness

For Agencies, Context/Content Leads Choice of Most Important Factors in Mobile Media Buy

But How is Success Measured? CPA, CTR Received Most Top Rankings From Agencies;

Engagement Higher on Average

MOBI SURVEY3/8/10 N=143 Agencies Copyright © DM2PRO 2010

Agencies: Most Conversions Tracked In-House


Others: Unique coupon codes, SMS, Comscore

CPA/CPL Leads in Buying Preference

MOBI SURVEY3/8/10 Agencies N=135 Copyright © DM2PRO 2010

CPC Heavily favored write-in

MOBI SURVEY3/8/10 Brands N=33 Copyright © DM2PRO 2010

Content Leads as “Most Important” with Reach Ahead in the #2 Ranking

Brands: What’s MOSTImportant in Your Mobile Media Buy?

For Brands: Content Quality is the Differentiator


Though measuring conversions is buyers’ major pain point, reporting metrics doesn’t factor in selecting a mobile campaign facilitator

dave gwozdz

Brands say the same thing as agencies ( slides 18-24)want top content...yet want to paay CPA and track via CTR!

But Brands Also Track Conversions Via CTR


THE ROLE OF MOBILE AD NETWORKS

Participate in a Mobile Ad Network

Agencies

Brands

Publishers

0 10 20 30 40 50 60 70 80

% Yes

% Yes

58.1%

71%

47.9%

MOBI SURVEY3/8/10 N=117, 31, 144 Copyright © DM2PRO 2010

If You Use a Mobile Network, How Many?

Agencies

Publishers

Brands

0 5 10 15 20 25 30 35 40

>ThreeThreeTwoOne

MOBI SURVEY3/8/10 N=26, 71, 82 Copyright © DM2PRO 2010

Ad Nets Account for Nearly 60% of Publisher’s Mobile Ad Sales


But would prefer to sell more through internal sales team….


71.3% Say ROI is higher from internal sales

18.1% say comparable

10.6% say network ROI is higher

PAIN POINTS

Agencies: Metrics Represents Biggest Pain Point, Handset Jungle Not Far Behind


dave gwozdz

Agencies struggle and are conflicted:Say thay want context..great publisher content and demograpics...yetstruggle with ROI conversion tracking and prefert o buy on a CPL CPA

Brands Agree: Mobile MetricsA Leading “Pain Point”


Wanted by Agencies: Better Metrics


Brands’ Wish List: Metrics and Penetration


Conclusions• Mobile advertising will see healthy spending

increases• Publisher traffic will still continue to out pace

spend• Rich Media and App Sponsorships will help

publishers engage their internal sales• Ad networks will remain critical in food chain

with continued increases in traffic• Better reporting tools, ad units and targeting will

help fuel brands/agencies adoption

What’s next…..• Online brands, networks and players entering the

space quickly• Continued and significant smart phone growth

– Especially Android…..• Uniformed metrics and buy side tools• Better reporting tools, ad units and targeting will

help fuel brands/agencies adoption• Mobile commerce, ticketing and couponing

Thanks!

Documents

State of the Industry: Mobile Survey Presented April 22, 2010 eMarketer Conference