Closing the Gap Between Mobile Consumption & Ad Spend

1. Closing the Gap Between Mobile Consumption & Ad Spend
2. Proprietary & ConfidentialQuaero 2 US digital ad spend will overtake TV in 2016 and hit $103 billion in 2019 to represent 36% of all ad spending.
3. In 2014 3 saw TRIPLE digit revenue growth years in a ROW
4. By 2018, it’s predicted revenue will grow
5. Proprietary & ConfidentialQuaero 5 But…
6. of total ad delivery distribution LESS than 20%
7. Proprietary & ConfidentialQuaero 7 and yet!
8. 85% of audiences will consume MEDIA via their smartphones & tablets, in addition to their televisions
9. 3X TV only 4X desktop only 25X mobile only
10. #1 – Who is spending time on mobile? And what are they doing?
11. What are they doing? 147 minutes (TV) 103 minutes (Laptop) 151 minutes (Smartphone) 43 minutes (Tablet) Source: AdReaction 2014, “Marketing in a multiscreen world”, Millward Brown
12. TV Audiences 59% of use is one device at a time 41% of use is simultaneous Source: AdReaction 2014, “Marketing in a multiscreen world”, Millward Brown
13. 70% of simultaneous use is looking at unrelated content (stacking) 30% of simultaneous use is looking at related content (meshing) Source: AdReaction 2014, “Marketing in a multiscreen world”, Millward Brown
14. #2 – Who is spending money on mobile and why?
15. Source: eMarketer, March 2014 Google, 49.30% Facebook, 17.50% Mobile Internet Ad Revenue 2014 Google Facebook Twitter Pandora YP Millenial Media Other
16. These behaviors are crucial to capitalizing on “mobile moments” to Target & Transact
17. 21% 13% 12% 9% 8% 7% 6% 5% 5% 4% 0% 5% 10% 15% 20% 25% Retail Financial Services Auto Telecom Leisure Travel Consumer Packaged Goods Computing Products Pharma & Healthcare Media Entertainment 2013 2012 Retail drives advertising, as dollars shift to digital Source: IAB internet advertising revenue report, April 2014
18. Proprietary & ConfidentialQuaero 18 So…
19. 44% of online shoppers begin by using a Search Engine Go! Source: Social Times, Social Mobile, Search – Amazing E-Commerce Stats, Facts & Figures [Infographic]
20. Half of social media- driven purchasing happens within one week of sharing, tweeting, liking, or favoriting a product Source: Social Times, Social Mobile, Search – Amazing E- Commerce Stats, Facts & Figures [Infographic]
21. Closing the Gap
22. Solutions are Coming…  Pervasive Ad IDs  Ubiquitous Log-In  Proprietary cross-device tracking
23. Serving Audiences Across Devices  Parallel and linear usage  Optimizing search  Rich 2nd Screen Experiences
24. 3 Things You Can Do Tomorrow 1. Encourage logged in experience across devices 2. Experiment with cross-device solutions 3. Cater to mobile context

Notes de l'éditeur

http://adage.com/article/media/digital-overtake-tv-ad-spending-years-forrester/295694/
Categorically, digital ad spend overtook broadcast in 2014. Digital will overtake TV – broadcast and cable combined next year – and three years later represent 36% of all ad spend.
Bolder predictions put digital @ 35% of overall spend next year. Regardless of the numbers you quote, which are as dynamic as the industry, the opportunity is undeniable.
This massive growth was driven in large part by mobile.
And it is not slowing down any time soon.
Clearly, the shift in content consumption is driving a shift in budgets. But there is still a huge gap, even with the forecasted trajectory on spend.
However, on average for digital publishing customers, it is still less than 20% of the total ad delivery distribution.
So let’s put that in context... Nearly 85% of audiences consume media on their tablets and smartphones, in addition to their television.

Just last night I read an Ad Week article literally entitled “Publishers Stare Down an 'Oh Sh*t' Mobile Moment” talking about the monetization gap. Michael Sebastian talked about how the mobile explosion is goosing traffic on media sites. But they're failing to monetize it quickly enough, resulting in a widening gap between mobile readers and revenue. At The New York Times, for instance, more than half its digital audience comes from mobile, but just 10% of its digital-ad revenue is attributed to these devices.
And these are “highly valuable” audiences. Clearly multi-platform mobile users are spending more time, consuming more content, and therefore driving more revenue. But let’s put a number on their relative value. As part of the value modeling Quaero does, looking across our stable of media customers, and using only the tangible revenue drivers such as paid impressions and content, we know that multi-platform users are 3x more valuable than TV only, 4x more valuable than desktop only, and 25x more valuable than mobile only.

Consumers using 3+ devices, across industries, just surpassed the 50% mark in the U.S. This represents an emerging, multi-generational category with high buying power and a willingness to participate in the data value exchange.

We’ve established the audience is growing and the ad revenue is lagging.

There is an opportunity to close that gap.
To do that, we have to understand two basic things:
Who is spending time on mobile and what are they doing? Where do mobile devices fit into current multi-platform behavior?
Combined smartphone and tablet screen time exceeds TV by nearly an hour per day. But how do these screens interact?
http://www.millwardbrown.com/AdReaction/2014/#/main-content
59% of consumption happens one device at a time. But 41% is simultaneous (tablet, smartphone).
http://www.millwardbrown.com/AdReaction/2014/#/main-content
For that multi-screening audience, 30% are exploring related content or taking some action tied to the content or advertising on TV (“meshing”).

But 70% are looking at “unrelated content” (called “stacking” in the report).

The other http://www.millwardbrown.com/AdReaction/2014/#/main-content
Now let’s look at it from the other angle. What advertisers are spending money on mobile and why?
So much money funneling into mobile that publisher’s aren’t seeing. Why? The bulk of that money is going to digital giants like Facebook. In fact, FB and Google captured about 70% of the mobile ad revenue growth last year.

http://www.emarketer.com/Article/Driven-by-Facebook-Google-Mobile-Ad-Market-Soars-10537-2013/1010690
Often people are searching for program or product-related information – they are not social sharing.
Understanding these behaviors is critical to capitalizing on “mobile moments” to target and possibly transact
Which explains why Retail advertisers continue to represent the largest category of online ad spending, the bulk of which is in mobile. They also have the opportunity to drive local and with new technologies like iBeacon, reach customers in-store.
http://www.iab.net/media/file/IAB_Internet_Advertising_Revenue_Report_HY_2014_PDF.pdf
Retail advertisers continue to represent the largest category of internet ad spending, accounting for 21% of total
revenues in FY 2013, up from the 20% reported in FY 2012.
And Google already partnered with Barnes & Noble to deliver a one-click commerce solution to rival Amazon.

http://www.adweek.com/socialtimes/ecommerce-stats/499256
Search may be facilittaing more immediate purchase, but social driven purchasing usually happens within a week of exposure. And, FB and Twitter are developing their own one-click purchase solutions in the context of their social environments. So “search and social” are no longer passive media activities, they will be driving real ecommerce for CPG companies on mobile and possibly later through addressable TV.

http://www.adweek.com/socialtimes/ecommerce-stats/499256
Solutions are coming for publishers too.
Google and Apple are experimenting with pervasive ad IDs. Google and FB are experimenting with ubiquitous log-in. And cross-device tracking algorithms with reliably high match rates like TapAd are available.

In addition, the IAB is working on mobile ad-measurement guidelines with more explicit viewability requirements and developing an industry standard.
Beyond technology, more can be done to deliver better mobile content. Understanding parallel and linear usage for your audience so that content is complimentary. Optimizing search to take advantage of those “mobile moments” and, finally, ensuring a rich 2nd screen experience.

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Closing the Gap Between Mobile Consumption & Ad Spend

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