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madreport Q3 2014 seamless edition

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Q3.2014 1
Q3.2014
True automation; is
it finally coming?
PROGRAMMATIC
How to engage the
mobile user
NATIVE
The smart mobil...
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20 22 24
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Index
			 Q3.2014
18
seamless
TargetSense™
capabilities on
mobile video ads
seamless –
Succe...
Q3.2014 3
From the founders
Just like every year, we’re back with
another madreport after a beautiful
summer. This edition...
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madreport Q3 2014 seamless edition

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This issue is about the new seamless platform, native ads, targeting and the programmatic environment.

Bu sayımız yeni seamless platformu, native reklamlar, hedeflemeler ve programmatic ekosistem hakkındadır.

This issue is about the new seamless platform, native ads, targeting and the programmatic environment.

Bu sayımız yeni seamless platformu, native reklamlar, hedeflemeler ve programmatic ekosistem hakkındadır.

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madreport Q3 2014 seamless edition

  1. 1. Q3.2014 1 Q3.2014 True automation; is it finally coming? PROGRAMMATIC How to engage the mobile user NATIVE The smart mobile advertising platform is there SEAMLESS The ultimate challenge of the industry BUILDING TECH
  2. 2. 2 4 12 20 22 24 28 29 16 8 10 Index Q3.2014 18 seamless TargetSense™ capabilities on mobile video ads seamless – Success Stories High performance ads for premium publishers seamless – the never ending struggle to learn how to build technology for advertising WTF is programmatic? The rise of native advertising Data on mobile consumption Deep dive into ad-tech Programmatic ecosystem That mysterious thing called “right place” The power of sensor driven targeting
  3. 3. Q3.2014 3 From the founders Just like every year, we’re back with another madreport after a beautiful summer. This edition is all about our new group company, which is also the new platform we’ve developed, called seamless. With seamless, advertisers get unique targeting capabilities, which allow them to hone in exactly on their target audience. On the other hand, the seamless platform allows publishers to monetize their app inventory without disrupting the user experience through cream of the crop ad formats and placements. Programmatic buying has been a growing trend in the West for years, and with the launch of seamless, we plan to disrupt the mobile advertising plane in our region. Hence, this special edition madreport is primarily focused on native advertising, programmatic and sensor driven targeting. In this edition… In this quarter’s issue, we started off by highlighting the various trends and news we’re seeing in today’s age and time. Later on, we moved on to explaining native advertising and expanding on the notion of the programmatic ecosystem. You can also find a product overview Contact with us of seamless outlining the various formats and placements we’ve developed, and what this means for publishers. Then we wrote in depth about TargetSense™, the proprietary targeting technology we’ve developed and the benefits this has for advertisers. Lastly, find out about the behind the scenes of developing seamless and what kind of a test this was for mobilike. Another feature of this edition is that it comes with a beautiful poster, which outlines the programmatic ecosystem. We hope that this poster will help you have a better understanding of some of the terms in our industry, while reminding you of us. We wish you a pleasant read and successful fourth quarter. Volkan Biçer Şekip Can Gökalp
  4. 4. 4 iPhone Users Earn Higher, Engage More on Apps than Android Users The competition between Apple and Android is well known. As the market leaders in the smartphone industry both have their fans. But what differentiates their users from each other? A study has now found that the average Apple user earns 40% more than the average Android user. We can also notice a variance in the usage behavior. With extra 9 hours a month the Apple user is more engaged than the Android user when it comes to apps. The Tablet Four-Year Report An Identity Crisis and an Amazing Opportunity The iPad was first introduced in 2010. The idea behind was to have a ‘‘living room device’’ rooted in gaming, media and entertainment with a potential to replace the physical magazine rack, the set-top box and eventually the television set. Accordingly, the age of the tablet was described as the ‘post-PC’ era. Within no time the tablet became an all day media consumption device for all generations. They are no longer a living room only device, but a highly portable and always-on ‘’gadget’’. Analyzing Teens and Colleague Students, and Working Adults we can see that both are behaving very similar when it comes to Gaming, Media, and Entertainment Usage. We see a peak during prime time, however, this only accounts for 33% of usage compared to traditional TV (65-70%). Top 25 Mobile Apps Dominated By The Largest Digital Media Brands The ranking of top apps is dominated by app constellations of some of the largest digital media brands; specifically, Facebook, Google, Apple, Yahoo, Amazon and eBay. These six brands account for 9 of the top 10 most used apps, 16 of the top 25, and 24 of the top 50. Source: comScore DATA ON MOBILE CONSUMPTION Source: comScore 4 Facebook: 115,370 Google Search: 70,163 YouTube: 83,392 Google Play: 72,245 Pandora Radio: 69,000 Google Maps: 64,485 Gmail: 60,320 Instagram: 46,637 Yahoo Stocks: 42,070 iTunes / iCloud: 42,069 Facebook Messenger: 40,544 Yahoo Weather: 39,210 Twitter: 36,071 The Weather Channel: 34,702 Google +: 29,993 Netflix: 28,821 Snapchat: 27,615 Amazon Mobile: 26,469 Pinterest: 26,454 eBay: 24,586 Skype: 22,194 Shazam: 18,849 Yahoo Mail: 18,372 Kik Messenger: 17,599
  5. 5. Q3.2014 5 On the other hand, when we look at Productivity and Utility App Usage we will see a completely different picture. The first thing we notice is a big gap between the two generations. During the day the teens and colleague students are more active on their tablets and have 4 peak usage times: In the morning as they wake up, at mid-afternoon, mid-evening, and late night. Working adults, however, use their tablet very rarely as a PC replacement during working hours, even if it’s with them (as the chart above suggests), but get engaged with productivity apps shortly after prime time. There are some reasons that could explain this result (e.g. technology), but still the gap is surprisingly profound. There are several ways to describe the results above. During the 4 years of its existence, the tablet in general, and the iPad in particular, went through different phases and reached an identity crisis. It has become so many things to so many people, and there’s no real common case. But we can also explain the trend from a different perspective. Seeing teens and college students using their tablet frequently during the day presents a great opportunity to replacing the personal computer for now and forever. The rise of productivity app usage over the past year and the introduction of Microsoft Office for iPad supports the second interpretation. Apple’s CEO Tim Cook already calls the iPad ‘‘the fastest growing product in Apple’s history’’ and predicts that “the tablet market will surpass the PC market”. Source: Flurry The Rise of the Mobile Addict According to the Internet Trends Report by Mary Meeker, KPCB’s Partner and world-renowned analyst, in May 2013, ‘’the average mobile consumer checks their device 150 times a day’’. This is a lot. And reason enough to run the rule over some numbers. The chart below shows the year-over-year growth in usage, across all segments of mobile app users. All segments show a steady increase in user numbers, but the Mobile Addict segment outdoes the rest. With an astonishing growth of 123% in 1 year it is obvious that mobile is becoming indispensable for a significant part of our population. Source: Flurry Source: Flurry
  6. 6. 6 WhatsApp Has 600m Users Now We all know WhatsApp, and most of us use this popular application every day. It is therefore no surprise that the user numbers are sky rocking. With 600,000,000 active users in August, noted and published by Jan Koum, founder of the mobile messenger, WhatsApp has doubled its user base over the past year, and gained an additional 100 million users in the past 4 months. Despite some concerns about the future of the trendy app after the buyout by Facebook earlier this year, WhatsApp stands strong and keeps its position in the market. It seems all its competitors are unable to hold a candle to the world’s #1 messenger application. The chart on the right side shows the number of monthly active WhatsApp users worldwide. The rise of mobile apps and the decline of the open web — a threat or an over-reaction? It’s the age of mobile, and consequently the age of mobile apps. Some are worrying now that this could mean the end of the open web and thereby a significant threat for innovation. But is this fear justified? Indeed, we can note an astonishing ratio from 14% Browser to 86% Apps, seen in the chart below. But Ben Thompson, tech analyst, gives us hope. He states that we should not fear the ‘’death of the web’’, since most apps, including Facebook, are nothing else than web content in a different wrapper. Additionally, success stories such as Instagram could never have happened with just the web. Source: statista How Smartphone Prices Differ Across Platforms Apple counts as the high-end smartphone provider, compared to its competitors such as the most popular smartphone platform by far, Android, which can be often found on entry-level devices. A report from IDC breaks it down to numbers. 58.7% of the 255 million Android devices shipped in Q2 2014 cost less than $200 off contract, a price category that Apple doesn’t serve at all. Another 21.5% of Android phones cost between $200 and $400. Only 1/5 of Android phones fit in the high-end category at a price above $400. Apple on the other hand sells an overwhelming 85% of its phones in that high-end category. The 15% mid-range sales of Apple phones shown in the cart below are consequently international sales. We could assume now that Apple dominates the luxury segment of the smartphone market. But way off the mark! 50.6 million high-end Android devices were shipped in Q2, but only 29.8 million top-tier iPhones. Another interesting observation is the almost identical pricing structure to Android’s. Source: Flurry
  7. 7. Q3.2014 77Q3.2014 Source: 1-BTK 2014 Q2 Report 2-Btnet.com 3-We are social 4-Pew Research 5-Milliyet.com.tr 6-IAB TR
  8. 8. 8 Programmatic advertising refers to the purchasing and selling of digital inventory through the use of software, as opposed to the traditional process, which involves human negotiations and manual insertion orders. Programmatic leverages real time bidding (RTB), the process of which buyers bid in real time for ad inventory. RTB’s key benefit is providing buyers with access to real-time inventory at scale; at a price those buyers want to buy. Yet changes in media consumption left buyers wanting to target across devices, gain more flexibility, and transact directly with premium publishers. At this point, programmatic emerged as a broader concept that embodies RTB and more. Programmatic media buying helps all stakeholders of the ecosystem to scale by enabling data driven decisions, audience management, yield optimization at real time. Why Does Programmatic Matter? Programmatic matters for a variety of reasons, but most of all it provides efficiency. Before programmatic, ads were bought and sold by humans, which is expensive and unreliable. Through automation, we have more consistent processes with less room for human error; all in all, increasing efficiency and making the process cheaper. The Emergence of Programmatic Advertising Technology The evolution of the consumer commercial web has been for about 20 years. Programmatic has been around for about 10, but still drastically early on in the development phase. The programmatic drive began as a US led innovation and is now spreading worldwide. In some cases, adoption has sped up, particularly in smaller markets where added human costs on media transactions show up more notably on account of smaller order size. A worldwide report on the state of programmatic released by Magna Global suggests that this is still a massive underserved opportunity. The report forecasts that the programmatic ad market will grow from $12 billion in 2013 to more than $32 billion by 2017. At this point, most of programmatic spend is over banners, social, and steadily migrating to other ad formats. Some pillars regarding the growth of programmatic are a bit under stress; specifically areas regarding the trading of banner display ads, tracking, and 3rd party cookies. 8 WTF IS PROGRAMMATIC?
  9. 9. Q3.2014 9 Interestingly enough, the major social networks; Facebook, Twitter, Linkedin, Pinterest have all started to adopt native ads and sell through programmatic means. As mobile and social are undergoing massive adoption, along with the emergence of native ad formats, the combination of these is forcing us to rethink what programmatic means. What’s next? Marrying programmatic with native ad formats is likely one of the forthcoming trends which will pave the way for advertisers to rethink their creatives; the idea of tying ad format with content, utilizing data to better target audiences, and create a different model for ad deployment which is native to users experience and that can be bought in an automatic fashion at scale. Ecosystem Players Ad-Exchange An ad-exchange is a marketplace where media is bought and sold, with complete transparency and fluidity, modeled after the same principles as the stock exchange. The Ad Exchange created an opportunity for buyers/sellers to trade audiences rather than inventory in the thousands. Sellers (publishers) would make their audiences available on the platform. Buyers (advertisers) could then pick their audience and bid on them. The winner of the bid could now have their ad in front of the right audience at the right time. 9Q3.2014 Agency Trading Desk (ATD) Agency trading desks are the audience buying divisions of agencies. They promise to match the right audience with the right ad impression efficiently at scale. Some agencies created their own proprietary agency trading desk, which gave them the ability to trade on the Ad Exchanges efficiently and in real-time using data to influence their decision making. Data Management Platform (DMP) Data management platforms help parties involved with the buying and selling of ad inventory to manage their data, facilitate the usage of third-party data, enhance understanding or port custom audience data to a platform for even better targeting. Demand Side Platform (DSP) Demand side platform refers to the purchaser of the media - advertisers/agencies. Demand side platforms (DSPs) are systems that serve ads on behalf of the advertiser in real time based on specified rules. Those rules are based on the data provided by advertisers and by inventory sources (exchanges and SSPs) when an impression is offered for auction or sale. Supply Side Platform (SSP) Supply side platform refers to the seller of media -which is generally the publisher/developer. Supply side platforms (SSPs) are vehicles for publishers to make their inventory available for programmatic buying via an ad exchange marketplace.
  10. 10. 10 In times that we are covered with advertising online and offline, companies must come up with something to secure users’ attention. One of the hot topics in today’s media is ‘’Native Advertising’’. But what exactly is this new ad format? And what is actually really new about it? By all means native advertising is not like all those traditional ad formats such as banners or pop-ups. Because the conventional digital ad formats are now nearly completely ignored by the users, and even worse, perceived to be intrusive. Native advertising is different. As a natural element it is integrated into the content, becomes one with its surrounding, and creates a reading flow that’s simply natural. And guess what? You won’t even realize it’s an ad! Learn more about this trend and follow us into a new world of advertising. 3 elements that matter: 1. Content driven: Promoted, fully branded custom content. 2. Seamlessly embedded into overall design and layout: The ad doesn’t sit in a banner placement; it is part of the application’s editorial. 3. User-initiated: The user has the right to decide whether to engage with the ad or not. It’s not forced on them. “Marketers are now voting with their wallets, investing more in content creation and seeking longer tail and more complex distribution of that content - the massive proliferation of digital THE RISE OF NATIVE ADVERTISING media means technology has to follow suit and now this has a name...NATIVE.” - Damian Ryan / Understanding Digital Marketing Why it works The growth of brand content: Publishing branded content is now very important for major brands. They are publishing and creating interesting content, and native ads allow them to do it while monitoring and analyzing the results. Banner blindness: As we know, traditional online advertising formats such as banners is not as effective as before. There are two kinds of users: The ones who ignore the banners, and others who find them interruptive, which causes a negative reaction towards the brand. Marketers are looking for different ways to reach their customers; native advertising allows this in a format and style that consumers find acceptable. Mobile: Native advertising is one of the best ad types for mobile. Because of the small screen size, users don’t like banners on the screen of their device. With native advertising, content related ads are suitable for the application. They can be deployed across any technological platform – desktop, tablet, mobile - with no need to change creative or platform specific issues. Creativity: Native means that brands are free. They are no longer constrained by the small text requirements and limited graphics of banner ads or restricted to create a 20 second video ad. Brands cannot ignore native • Strong Performance: While the format is still new and data is limited, early tests have shown strong performance and significant return on investments. Facebook has been able to scale its native ad business to over $1 billion in revenue. 10
  11. 11. Q3.2014 1111Q3.2014 • No Creative Development: Most mobile native ad products don’t require a huge budget for creative development. This is great for marketers who have limited budget and resources. Creative development for digital advertising is a barrier for many marketers. • Targeting Options: Most native ad products have rich first-party data targeting options that can be difficult to access through another method. For example, accurate male-female targeting is possible, as is relationship status targeting. This popular 1956 quote from David Ogilvy perhaps sums up why native works: “It has been found that the less an advertisement looks like an advertisement, and the more it looks like an editorial, the more readers stop, look and read. Therefore, study the graphics used by editors and imitate them. Study the graphics used in advertisements, and avoid them.” Native ad in Facebook Sources: como.com, localmedia.org Native ad in Twitter Native ad in Milliyet
  12. 12. Having spent the past five years as the go-to mobile ad network in Turkey, mobilike pushes to new frontiers with the launch of a new group company, seamless. seamless’ proprietary technology allows publishers to monetize their inventory without disrupting the user experience, while allowing advertisers to reach their target audience through sensor driven targeting. seamless is already implemented by many publishers in Greece, Romania and Turkey, with a regional expansion underway. Deep dive into ad-tech: First proprietary native programmatic platform in the region, PLACEMENTS seamless offers two different types of ad placements. We can either merge ads with your content to provide an in-feed experience, or provide floating ads, which hover over the screen, and can be static or animated. In-feed In-feed ads are the byproduct of native advertising; customized to match the look and feel of your app while keeping users engaged with the content. They’re less disruptive than banner ads and perform better. In-stream In-stream ads are another form of native advertising; ads are integrated into the content stream of the app, blending into the context and proving a more organic feel. Floating Floating ads are a type of advertising that appears in an app or mobile web page. This format offers static placing of an ad that will hover over the page. Although decreasing in importance, floating ads are still an important part of mobile advertising as they are easily implemented on any type of app. Full-screen Full-screen rich media ads deliver higher performance over standard expandable banners, which deliver improved CPMs for publishers. SEAMLESS LAUNCHES 12
  13. 13. Q3.2014 13 In-feed Native App Gallery Floating MMA Standard
  14. 14. 14 FORMATS seamless offers the largest variety of formats in the industry. Customizing seamless to meet the needs of your ads has never been easier. With carefully thought-out design, our ads look great on any device. Display - MMA This is a 320x50 standard banner ad. - Rich Media We provide a broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio and animation. - MRE Medium rectangles are 300x250 standard banner ads. - Custom Banner Custom banners are any size outside of the standard banner sizes. - Leaderboard Leaderboard banners are used in tablets and are 728x90. Video seamless provides an array of video formats: preroll, midroll, postroll, interactive overlay and banner overlay. seamless video ads are personalized to enhance brand recall and improve brand favorability. - Preroll Ads that appear before a video starts. - Midroll Ads that appear mid-way through a video. - Postroll Ads that appear after the video has ended. - Interactive Overlay seamless can bring up an interactive html5 page over a video. - Banner Overlay Banner Ads that appear before, during or after a video; these can be static or animated. - Native Native ads are customized to take the look and feel of the app, providing a less intrusive and more engaging experience for users. - Native App Install Ad Mobile App Install Ad cards are customized to adopt the in-feed feel and trigger users to download “suggested” apps. - Native App Gallery App galleries carry multiple app cards; several app install ads are placed in the content stream and customized to take the look and feel of the app. TargetSense™ How can you leverage seamless TargetSense™ to optimize ad engagement? seamless SDK helps advertisers pinpoint their customers through location intelligence, ensuring only to show relevant ads to users. TargetSense™ features may be utilized individually or grouped together depending on campaign goals. App targeting App targeting filters smartphones that have or have not installed a specific app and only shows ads to the specified audience. Battery targeting Battery targeting involves showing ads to smartphone users that have over or under a specific battery percentage. Storage targeting Storage targeting involves measuring the amount of memory storage on smartphones and showing ads to users within a specified memory range. This targeting feature has been particularly successful with cloud storage companies.
  15. 15. Q3.2014 15 Connection Type targeting Connection type targeting is aimed at segmenting users who are connected to Wi-Fi and users who are using mobile internet. Device Manufacturer targeting Device manufacturer targeting allows us to hone in on specific smartphone hardware manufactures. Device Model targeting Device model targeting segments specific device model(s) of users. Location targeting Location targeting allows advertisers to show specific ads depending on a user’s GPS location. Operating System targeting Operating system targeting segments and reaches smartphone users who have a specific operating system (Android, iOS, etc.) or/ and running a software version release. Operator targeting Operator targeting segments users of a specific GSM operator. Signal strength (optional) targeting Signal strength targeting segments users with specific signal strength. Programmatic Still a massive underserved opportunity. With seamless, the buying and selling of inventory are done mechanically for the most part. Any advertiser or agency can connect to and buy from publishers on the seamless platform with the given features by using their existing DSP. seamless is integrated with the biggest mobile ad exchanges in the world and supports 100+ DSP’s. By removing manual effort from the process wherever possible, seamless makes the ad buying system more efficient, and therefore cheaper.
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  18. 18. 18 TargetSense™: THE POWER OF SENSOR DRIVEN TARGETING AT SCALE 18 Smartphones. Smart phones. A combination of hardware and software embedded in it. A killer combination of hardware, software and a good Internet connection makes it even smarter. The truth is, your smartphone knows you better than you know yourself. It’s packed with many powerful sensors that enables it to collect data about you, more than you could ever imagine. Listen to this: Android phones and iPhones include an audio sensor (microphone), image sensor (camera), touch sensor (screen), acceleration sensor (tri-axial accelerometer), light sensor, proximity sensor, and several sensors (including the Global Positioning System) for establishing location. Impressive, right? But what does that mean for advertising? The belief you cannot intelligently advertise on mobile is simply not true, now less than ever. Smartphone sensor technologies, especially when combined with data mining, offer tremendous opportunities for new and innovative ads and apps. Reach the right audience, with the right message, in the right context With seamless technology there are no limits to your creativity, which makes it so exciting, and opens a whole new world of mobile advertising. So what’s the deal with seamless TargetSense™ now? Let us give you some examples: Have you ever wondered why you suddenly see the incredible lunch deals of the cute café next door while scrolling through the newsfeed of your favorite online newspaper? Or did you consider it a coincidence that the size and frequency of ads dropped during your forest camping, but increased again when you were back in town? Well, this doesn’t happen by chance; it’s the newest technology. You have to admit that this is pretty cool.
  19. 19. Q3.2014 19 However, essential for reaching the right audience for your campaign is the determination of the best-suited targeting option. seamless TargetSense™ provides you a wide range; you only have to pick the right fit for you. Take advantage of the power and richness of seamless TargetSense™. Because this is the future. And this is great. The more effective you are in targeting the right customers, the greater your return on investment. Don’t waste any time anymore, just do it right, do it now. Battery Targeting Device Targeting App TargetingStorage Targeting Location Targeting Carrier Targeting Contextual Targeting Cellular Data / WLAN Targeting Operation System Targeting Sources: MediaPost, inside science, Business Insider, LinkedIn
  20. 20. 20 That mysterious thing called “right place” 20 Since the beginning of the smartphone boom, publishers and advertisers have been trying to find a way to increase the sophistication of mobile ad formats. The ever-aging banner ad has long been the bane of the industry, generating unreliable clicks and merging apps with ugly, detached design. Fortunately for us, the social revolution has sparked a change in mobile monetization, breaking ground with the growth of in-feed placements. Initially, the transformation happened with floating ads, a similar, yet more engaging alternative to banner ads. Floating or overlay ads, are rich media types that enable advertisers to serve ads that appear uninitiated, superimposed over a user-requested page, and then disappear or become unobtrusive after a specific time period (typically 5-30 seconds). Floating ads are still widely used in the industry, but have slowly started to leave their standing to the their successor “in-feed” ads. In-feed ads were first adopted by leading social media companies, with promoted tweets and app install ads, and now it looks like the wave has started to shape the whole industry. In-feed placements are organic and contextual ad units that blend into seamless brings the best of both worlds; a combination of floating and in-feed ads to optimize user engagement across all connected mobile devices.
  21. 21. Q3.2014 21 any app with smooth integration via our seamless SDK. These advanced ad types allow publishers to integrate advertising that shares the look, feel and content of their app inventory. This means that users are not bombarded by intrusive ads and the monetization strategy does not obstruct the experience. seamless’s in-feed ads help publishers earn more revenue with engaging, relevant, and exciting content that improves the user experience. This new ad format, previously not possible in this ease and scale, promises to dramatically improve earnings as seamless campaigns receive the mobile industry’s highest fill rates. A shining example: Milliyet increases conversion through in-feed ads Milliyet is the first publisher, which has integrated the seamless platform. With the seamless integration, the interface of the Milliyet app has changed remarkably. The newsfeed of the app was married with native mobile install ads, which are one of seamless’ pioneering in-feed ad units. The goal behind the implementation was to increase user friendliness and mobile revenue. After the integration of seamless in-feed ads on to the Milliyet app, time spent per user doubled in less than 4 months time and click-to-download rate jumped to a whopping 17%, which is 8 to 12 times higher than the industry standard of 1,5%-2%. As can be seen in the striking figures, the seamless platform was a significant assistive touch for the Milliyet app in the sense that it helped them sell more inventory, and thereby gain more yield.
  22. 22. seamless TargetSense™ CAPABILITIES ON MOBILE VIDEO ADS Mobile video viewership has experienced a steady rise, and content providers can be credited with two important accomplishments: rolling out a rapidly expanding library of shows available across devices, and adapting these shows so that it’s more enjoyable on mobile. “I’m going home, and when I want to go home, I’m going mobile.” - Pete Townshend, The Who Change is constant and good. The more things change, the more things remain the same. Nowhere is that more evident than in the world of online video. The latest numbers show that the torrid love affair consumers have with online video hasn’t lost any heat. In fact, the ardor is ongoing, and growing in intensity. In Q1 2012, for example, mobile phones and tablet video combined for a 3.4% share of all video plays. By Q1 2013, that number had grown to 9.2%. But the first quarter of 2014 showed growth that simply outpaced previous years. A whopping 21.5% of all video plays were on mobile devices and tablets — an increase of 133% year-over-year and 532% since 2012. For example YouTube: Some 40% of YouTube’s traffic now comes from mobile. Compare that to just 25% last year and a paltry 6% only two years ago. We’ve become a mobile society, one that is accustomed to watching video on any device, anywhere and anytime. As wireless broadband penetration continues to improve globally, more and more consumers are joining the “mobile video club.” In fact, data from eMarketer shows that there were 1 billion smartphones worldwide in 2012. That number stands at 1.75 billion today and is expected to reach 2.5 billion by 2017, or more than one phone for every three persons on the planet. 22 Source: Ooyala
  23. 23. Q3.2014 23 If we talk about mobile video ads, the majority of mobile video ad impressions occur on phones, and a huge share of mobile video ads are served to iOS devices. seamless platform for mobile video advertising Video ads are rising stars in the world of advertising. Combining technology, user requests and creativity is the key to make a difference. Find out more about our seamless video ad formats: Pre-Roll 5- to 30-second online video commercial that appears prior to premium video content Mid-Roll 5- to 30-second online video commercial that appears during premium video content Post-Roll 5- to 30-second online video commercial that appears at the end of premium video content Interactive Overlay 10-second HTML online video commercial that appears after 30 seconds at the top of the video player while main premium video content plays Banner Overlay 10-second static online video commercial that appears after 30 seconds at the top of the video player while main premium video content plays Ok, we all agree that videos are fun. But what does seamless TargetSense™ has to do with it? There are plenty of options in mobile advertising to pinpoint the target audience. Where Location Targeting, Device Targeting or Carrier Targeting are standard today, seamless takes it to the next level by implementing features such as Storage Targeting or Battery Targeting. And the best is: All these options are applicable for video ads. And how does it work? Imagine you are a battery manufacturer. You decided to go with the time and created a short and catchy video to promote your new product that extends the battery life of mobile devices. Wouldn’t it be cool if you were able to show this video only to people who are suffering from a dying battery, just in that moment? With seamless TargetSense™ your video ad only appears to mobile users whose battery level is low. As easy as that. Similarly when the aim is to target insufficient storage. The video ad is shown only to the users who have already used more than 80% of their storage space. You can envisage that only the sky is the limit when it comes to your creativity. And this is just the beginning. Now it’s time to benefit from the unique seamless technology to maximize reach, optimize performance and increase the effectiveness of your campaign. seamless TargetSense™ makes it so easy to reach the right audience with the right video. Always and everywhere. Don’t waste your time and money anymore on unsuitable ad campaigns. Be one step ahead. Sources: Ad Age, TubeMogul Source: Ooyala Interactive Overlay
  24. 24. seamless TargetSense™ SUCCESS STORIES Duracell is right there when you need them Duracell leveraged seamless TargetSense™ to target users with a low battery phone Targeting: Battery Level Format: Full Page Overlay Action: Interactive Map Campaign background: One of the biggest problems of smartphone users is the phone’s short battery life. As a result, many users, especially those who spend a lot of time outside the house, run out of battery frequently. In order to solve this problem, Duracell introduced a new innovative product, the Duracell portable USB charger. Campaign mechanism and strategy: Duracell has decided to use mobile advertising as the main marketing strategy in order to introduce their new product. The first step was the implementation of seamless’ unique targeting technology TargetSense™. With its SDK code integration, seamless was the first platform that was able to target battery levels as a part of an ad. And this is how it works: In case the battery level goes below 20%, a banner appears and the user gets informed about Duracell’s new innovative portable USB charger. Result: At the end of the campaign this unique targeting technology achieved 73% better CTR compared to average. To measure the campaign’s effectiveness a survey was conducted. More than 38.000 exposed and non-exposed participants filled responded to the survey and an impressive 70% of the exposed group recalled the ads. Furthermore, the product awareness was 134% higher among the exposed than the non-exposed. Lastly, the purchase intent of the exposed group appeared to be 112% higher than the non-exposed. 24
  25. 25. Q3.2014 25 Don’t have the Garanti app? No worries. App targeting implemented to track users who DON’T have the Garanti app Targeting: Appdetect Format: Floating Notifiers Action: Appstore Campaign background: Garanti Bank, one of the most reputable banks in Turkey, decided to introduce its own mobile banking application. The reasons behind were various. Given the fact that we live in the era of mobile technology, Garanti Bank’s intention was both catching up with new developments in the field of mobile, and enabling its clients to commit their daily transactions in an easier and faster manner. Moreover, the bank wanted to increase brand awareness along with customer engagement and loyalty. The app represented a turning point for the bank’s history; a development that changed the way people perceived banking in general. Campaign mechanism and strategy: Billions of mobile ad impressions go to waste every year, simply because they are not targeted enough. To avoid this, Garanti Bank created a media first. Together with the unique seamless TargetSense™ technology the company was able to reach only the target market and not users that were irrelevant for this message. And this is how it worked: Only the smartphone users who didn’t already have the application on their phone were targeted. With the implementation of seamless platform, Turkey’s most used news applications were found to search for the Garanti app. If the Garanti app was not installed on the user’s smartphone, a banner appeared to direct him to the download. Result: The banner achieved a download conversion that was ten times the average of mobile app promotion campaigns. This led to 500 new downloads every day and cut the cost per download by half.
  26. 26. 26 Now there’s enough place for all your memories Turkcell revealed one of smartphone users’ biggest problems, and solved it for everyone Targeting: Storage space Format: Full Page Overlay Action: Appstore Campaign background: Does your smartphone show notifications such as “Memory Full” or “Low on space”? To overcome the problem of insufficient storage, Turkcell developed a free cloud storage application, called Akıllı Depo. The goal of this campaign was mainly to drive downloads for this app and increasing Turkcell’s brand awareness as a technology company by only targeting users who run out of storage space. Campaign mechanism and strategy: seamless TargetSense™ allowed Turkcell to target users with low storage and a call to action to redirect them to the appstore to download the Akıllı Depo app which allowed users to store their pictures and other files on the cloud. Result: At the end of the campaign 31.000 users interacted with it and were directed to the download. Furthermore, the campaign achieved a CTR of 1.09%. While Turkcell was able to reach its target audience, users received the desired service right when they needed it.
  27. 27. A feast for all your senses, delivered by seamless Ford takes you on a ride by using native hardware features Engagement: Vibration, flashlight Format: Full Page Overlay Action: URL Campaign background: Refined, comfortable, versatile. That’s the Ford Tourneo Courier. To appropriately promote its brand-new innovative product, Ford wanted to combine style, comfort, technology, fuel economy and luxury in its’ new smart commercial, and did a very good job. Campaign mechanism and strategy: Thanks to advanced seamless technology, it was possible to reach mobile devices’ native features and bring them to action. Three progressive features ensured a unique user experience. The vibration feature of the device was activated through the seamless SDK, to demonstrate the reduced in-vehicle vibration of the new Ford Tourneo Courier. Secondly, the flashlight of the device was activated to give a good experience of the Tourneo Courier’s headlamps, which lighten through darkness automatically. Lastly, the devices’ screens darkened to give the users the feeling of Tourneo Courier’s automatically darkening rear-view mirrors for better view. For the first time in Turkey, a campaign was delivered through seamless platform utilizing the native hardware features of the smartphone. Result: At the end of the campaign over 2 million impressions were attained. Furthermore, a button that lead to the company website for more information has been touched approximately 50.000 times. With a 2.07% CTR Ford gained the desired success through a combination of brand awareness, user experience and the advanced mobile technology. 27Q3.2014 seamless engagement
  28. 28. High Performance Ads For Premium Publishers Grow your user base and engage your audience seamless has one mission: to help publishers manage their ad inventory and optimiz revenue. Below is the checklist we have compiled outlining seamless’s most important features. 1. Maximize Revenues By integrating seamless SDK, you open your traffic to hundreds of demand partners. Through a combination of geographical reach, technology, aggregated audiences and packaged inventory; seamless’ programmatic capabilities optimize the probability of maximizing revenue. 2. Simple Integration Our single, unified SDK ensures that you don’t have to go about integrating with multiple ad networks. If you’re migrating from other monetization networks, this is essential so you don’t go through the hassle of integrating, testing and servicing multiple SDKs for each revenue source. 3. Flexibility With Ad Formats We offer limitless flexibility and enormous revenue upside. Through the use of personalized creatives, we boost brand awareness for display and video; we have built a full stack solution to support native and conventional ads. We strive to create ads that are harmonious with the context of your app, which support user acquisition and retention. 4. Placements We provide both floating and in-feed ad placements. Having alternative placements in your app allows advertisers to utilize your inventory for different campaign goals. 5. Inventory Performance and Transparency Our publisher relations team along with seamless’ programmatic capabilities ensures the maintenance and optimization of your inventory; you can opt in to receive monthly reports on your inventory performance. 6. Yield Optimization Our platform was built to provide both a robust marketplace and strong mediation platform through a range of monetization products. We provide yield optimization from various mediated ad networks, DSPs, direct sales and ad exchanges. Contact us at info@goseamless.com 28
  29. 29. Innovation in advertising When we first started this journey back in 2009, we learned that the media industry was on the verge of serious disruption through the emergence of closed, tightly knit, technological ecosystems. At first glance, we were confident that we had the right tools to penetrate the market, for little that we knew, which I’ll get to in a bit. The notion of software eating the world has been around for some 30 years in the West, including the past 5 in which mobilike was born where we felt the biggest impact of that in Turkey and similar fast growth markets. If we were to shed light on our journey, which started with converting basic HTML scripts from the 90’s to rich media ads that were solely initiated by the perseverance of Volkan and I in our belief of a future in engagement driven touch screen advertising, we took the road less travelled. In this path, we’ve undergone the complexities of bringing to life an innovative product, a process that has taught us the difficulties of scaling a company to 60 employees, a tech team to 20, while commencing with a world-renowned organization methodology. It all started with ideas that turned into simple prototypes, which we later tested in the market to weigh the pros and cons and see what works. After testing our MVP and getting feedback from our clients, we sat down to revise the architecture of our platform, prioritize our feature list, and finally build our first “product” at scale. Of course, it’s easy to write about it after all is said and done, but the countless pitfalls, which we have faced over the last 5 years, are a topic for another time. On the baseline, there is but one enduring truth, which is that innovation, has become an underlying necessity for the growth and convergence of the media and advertisement establishments. Specifically speaking, the development of mobile devices, operating systems and similar components in parallel to the ever- growing media industry, has made the tech-heavy evolution of advertising on mobile connected devices inevitable. seamless – the never ending struggle to learn how to build technology for advertising A short history of the founding of a 20-person technology team, a plunge into the world of ad-tech and the evolution we have undergone in the past 9 months. 29Q3.2014
  30. 30. Quick wins versus long-lasting value Through both conscious decision-making and gradual maturation at mobilike, we have undergone a change in focus from short-term wins to long-term value creation. When we were still small, instead of making long-term goals, we were eager to please clients and differentiate our product offering through small investments in short-lived innovations. Rather than investing thoroughly in developing a lasting technology, we were focused on delivering creative campaigns, which were simple to customize, but not scalable. In the early days, we had limited resources and a small tech team, which amplified our thirst to execute efficiently, while satisfying market demand. As time went on and the market grew, we started reusing more and more of our ideas to benefit publishers and advertisers we worked with. As the volume of traffic grew across our network, we started to realize a contraction on our platform and compromise in the quality of our ads. In the meantime, we had grown to a publisher network of 400 apps and sites. Trying to utilize this broad network in complex campaigns was not fun at all, which led us to take a leap of faith and kick off the development of seamless. The transition from taking shortcuts through bundling fragmented elements to investing the resources to build out our own, unified platform has been an enlightening point in time since the start of our odyssey back in 2009. It’s been just over 9 months since the inception of seamless, the first piece of mobile ad-tech to be utilized at this scale in the region and built by an extensive group of young and dynamic engineers. With seamless and mobilike group’s scale, we ultimately create huge leverage, empowering publishers with quality, frictionless ad-units and the industry’s highest fill- rates, while serving advertisers with advanced tools for enhanced engagement with their target market. 30
  31. 31. The inception of seamless was followed by the recruitment of durable, committed team players. Since the very beginning, technology has been intertwined with our business, but finding a leader and courageous engineers that wouldn’t succumb when faced with adversity or keywords such as RTB and advertising SDK, was the real challenge. This was a whole new category of business for us. Having employed nearly 20 new members in half a dozen months, our human relations department was bombarded with applications; we went through literally thousands of applications and interviewed close to 200 people. It’s not only about hiring great people. Enabling this group to work in harmony together, while maximizing output is an art of its own. Especially with engineers, who generally have a higher IQ than your average Joe, it’s more about a mystical combination of trust, motivation and shared purpose. After all, these guys type into a keyboard and cars drive themselves. With that said, it wasn’t a surprise for one of our magicians to lead us through this mist. Our technology director, Berk, who joined us early on in the development of the platform, came up with the suggestion to adopt agile and apply scrum methodologies. Thanks to scrum, I’m confident to say that we have a group of engineers that amalgamated like Voltron, culminating into a tightly knit force to be reckoned with. To be more specific; at the start of last spring, we transitioned to utilizing Scrum to organize our growing team. Scrum is less about traditional management and more about empowering individuals to take responsibility. The long-lasting notion of dictatorial management left our office for the soft-felt ideology of Scrum, where parts (team members) of a whole come together to accomplish the larger goal. Instead of the Waterfall type approach that we’re so used to where duties are assigned by managers, Scrum embodies an understanding of the bigger picture, while encouraging teammates to self-organize, yet maximize output. Scrum and agile are broad topics, and since we’re relatively new to the area, I’m not going to ponder into it, but all I know is that if you’re developing technology it’s definitely worth investing your time into researching. At this point of time, we’ve compiled a long list of ideas that might take years to execute, cooked collectively by all our teams and the mobile advertising market at large, and a tech team hungry as ever to push forward. Getting to where we are today, all the teams in our company had to work relentlessly, pursuing dreams and honing on prioritized tasks. In addition to our employees and stakeholders in the market, founders and shareholders converged together to make this dream a reality. With patience, common purpose and diligence, we’re ecstatic to share what we’ve built. We know we’re still at the beginning of a long journey, presumably with plenty of obstacles ahead, but we’re driven to do whatever is necessary to get the job done and go beyond expectations. Concurrently, we’d like to thank all the publishers, advertisers and agencies that have supported our endeavor and the whole team for their implacable effort for making this all possible. LEARNING MAGIC 31Q3.2014
  32. 32. 1-2 October 2014 Webit Congress Istanbul/Türkiye 20-22 October 2014 Mobile Games Forum 2014 Seattle, USA 9 October 2014 Digiday Mobi Awards New York, USA 4-8 November 2014 Brand Week Istanbul Istanbul, Turkey 16-17 October 2014 WIRED 2014 London, England 4-6 November 2014 ad:tech New York, USA 10 November 2014 MMA Forum London, England 5-6 November 2014 The Web Summit Dublin, Ireland 12-13 November 2014 Apps World Europe London, England 9-11 December 2014 LeWeb’14 Paris, France 2-5 March 2015 Mobile World Congress Barcelona, Spain 10 December 2014 The Next Web New York, USA Conferences&Events

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