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April 2016
EMARKETER ROUNDUP:
OPTIMIZING MOBILE ADVERTISING
This year, in the US, advertisers will spend $28.72 billion to reach their targets
on mobile devices, eMarketer estimates. But—as is common with so many
digital advertising channels that offer the promise of measurability and ever-
increasing efficacy—performance measurement is still a challenge. eMarketer
has curated a Roundup of articles, trends and insights to help marketers
understand the current state of mobile advertising.
presented byEMARKETER ROUNDUP: OPTIMIZING MOBILE ADVERTISING
Overview
In 2015, in the US, advertisers will have spent Metrics Used to Measure Mobile App Success
$31.59 billion to reach their targets on mobile According to Client-Side Marketers Worldwide,
March 2015
devices, eMarketer estimates, an increase of % of respondents
65.0% over 2014 spending levels. This year, Number of downloads
in the US, advertisers will spend $28.72 billion to 76%
Recurrent usage
reach their targets on mobile devices, eMarketer 48%
estimates, an increase of 50.0% over 2014 Time spent
spending levels. But—as is common with so 41%
Revenues/leads generated
many digital advertising channels that offer the 40%
promise of measurability and ever-increasing Conversion rate
efficacy—performance measurement is still 38%
Custom metrics (e.g., social shares)
a challenge.
22%
External metrics (e.g., reduced cost in customer service due to
An April 2015 Millward Brown Digital survey asked US fewer phone calls)
16%
marketers about which media channels they would
None of the above
increase spending in if they could track return on 7%
investment (ROI) better. Nearly eight in 10 said mobile, more
Note: n=526
than any other choice, including traditional media, typically Source: Econsultancy, "Quarterly Digital Intelligence Briefing: The Quest for
considered less measurable than digital. Mobile Excellence" in association with Adobe, April 29, 2015
190574 www.eMarketer.com
Respondents to a March 2015 Signal survey were
significantly less likely to say they could collect and Metrics Used to Measure the Effectiveness of Mobile
Native Advertising According to Marketers
integrate data from mobile with other digital channels. Worldwide, 2015
Worldwide, 66% of marketers said they could do this with % of respondents
mobile web data—far below the 88% who said the same of Clickthrough rate (CTR) 56%
web data or the 76% who said the same of email—and an Engagement rate 51%
even smaller 37% agreed when it came to mobile app data.
Conversion rate 45%
Cost per conversion 40%
Of course, that doesn’t mean marketers aren’t measuring
on mobile—or trying to calculate ROI. Among agencies Number of interactions 33%
surveyed worldwide by Econsultancy in February 2015, Brand lift 26%
38% said mobile marketing had excellent or good ROI; Number of shares 25%
35% of client-side marketers said the same. In January, Brand recall 22%
US marketers polled by the Direct Marketing Association Dwell time 19%
and Demand Metric reported a median 12% to 14% ROI
18% Message association
for mobile.
Note: n=209 who understand mobile native and use in campaigns or know
how to but have yet to do so
Mobile marketers report using a variety of metrics to track Source: InMobi, "Marketer and Publisher Perceptions: Native Advertising on
Mobile," April 6, 2015
their efforts. Client-side marketers worldwide surveyed by 187885 www.eMarketer.com
Econsultancy in March about mobile app success most
commonly reported using number of downloads (76%),
followed by recurrent usage (48%), time spent (41%) and
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 2revenues or leads generated (40%). 2015 research by Completion Rate for US Digital Pre-Roll and Mid-Roll
InMobi about how marketers measured mobile native Video Ads, by Device, Q1 2015
ad effectiveness found an emphasis on clickthrough among ads served by FreeWheel
rates (56% of respondents worldwide), engagement rate Tablet
79%
(51%), conversion rate (45%) and cost per conversion
94%
(40%). Among business-to-business marketers surveyed
Smartphone
worldwide by Regalix in May, 79% tracked web traffic, 71% 77%
social media sharing, and 64% clickthrough rates on their 93%
mobile marketing efforts. And according to comScore, last Desktop
year brand lift metrics for mobile ads ranged from a low 72%
94%
of 2.5% lift in aided awareness to a high of 4.3% lift in both
likelihood to recommend and purchase intent. Pre-roll Mid-roll
Note: represents activity on FreeWheel's platform, broader industry
metrics may vary
Despite all this, and despite the fact that most client- Source: FreeWheel, "Video Monetization Report: Q1 2015," May 20, 2015
side marketers surveyed by Econsultancy in March said 190342 www.eMarketer.com
they knew what share of their traffic was coming from
mobile, and what types of devices their customers were
using, being able to track customers across devices and
understanding the differences between smartphone and
tablet behaviors were lacking.
Many metrics across a range of mobile marketing types
suggest that the ROI is there. Adobe Digital Index reported
that in Q1 2015, there were more digital video ad starts per
video start worldwide on tablets (2.8) and smartphones
(2.4) than on the desktop (2.0). Similarly, FreeWheel
reported that pre-roll video ads in the US were more likely
to be viewed to completion on tablets and smartphones
than on the desktop (though mid-roll ads performed slightly
worse on smartphones).
Viewability measurement on mobile has some issues, but
according to Sizmek, again for Q1 2015, while Flash display
ads worldwide were more viewable on the desktop, HTML5
display ads were more viewable on mobile.
When it comes to email, despite consumers’ high
propensity to check their email on mobile devices,
clicking—and converting—is another question. While
Yesmail reported Q1 2015 click-to-open rates in the US
were higher on mobile than the desktop for the insurance,
consumer services and technology industries, for example,
all other verticals had the opposite experience.
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 3Marketers Face Mobile Advertising Challenges
Smartphones are hard to monetize
Mobile accounted for more than half of digital ad Biggest Challenges of Mobile Advertising According
spending in 2015, and marketers continue to see to US Marketers, Q3 2015
% of respondents
increased value in mobile advertising. While there
Lack of attribution transparency
are benefits, there are challenges too, according 41%
to Q3 2015 research. Users/consumers don't convert on mobile
37%
Lack of analytics tools
According to AdRoll, 41% of US marketers said the lack of
24%
attribution transparency was one of the biggest challenges
Inability to connect mobile and desktop users
of mobile advertising. Additionally, more than a third of 15%
respondents said that users or consumers not converting Inability to integrate mobile into other digital campaigns
on mobile is another challenge. 9%
Other
Lack of analytics tools and the inability to connect 1%
mobile and desktop users were also some of the biggest Source: AdRoll, "State of the Industry: A Close Look at Retargeting,
Programmatic Advertising, and Performance Marketing: United States
challenges of mobile advertising, according to marketers. 2016" conducted by Qualtrics, Jan 21, 2016
203635 www.eMarketer.com
Mobile devices—smartphones in particular—are not the
easiest screens to monetize. In fact, the smallest screen Type of Screen that Causes the Most Monetization
is the one that cause the most trouble, according to Trouble According to US Publishing Professionals*,
Sep 2015
September 2015 research from AdMonsters.
% of respondents
Two-thirds of US publishing professionals said that
Desktop
smartphones caused the most monetization trouble. OTT/TV 5.8%
13.0%
Tablets and over-the-top (OTT) and TV screens also caused
issues for a fair number of respondents, but were not as Tablet Smartphone
much of an inconvenience as smartphones were. 14.5% 66.7%
Note: n=138; *focused on publisher ad operations on a daily basis
Source: AdMonsters, "State of Ad Ops 2015" sponsored by Sizmek, Nov 16,
2015
201264 www.eMarketer.com
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 4Native Mobile Video Lifts Upper- and Lower-Funnel Metrics
In-feed mobile video ads lift recall, purchase intent
Mobile video is a fast-growing ad format, and Performance Metrics for Mobile Native Video Ads
many brands are rushing specifically to create Among US Mobile Users, June 2015
% of respondents
video ads for native mobile environments like
Ad uniqueness
Facebook or Instagram feeds. Research suggests 61%
that viewing such ads improves a variety of 52%
metrics, from recall to purchase internet. Aided awareness
52%
52%
In a study conducted by Opera Mediaworks and comScore, Favorability
a group of US mobile users was shown a mobile native 47%
video ad—the kind of ad created specifically for a mobile 43%
Likelihood to recommend
feed environment.
43%
38%
Advertisers hope to develop creative that’s a “thumb-
Purchase intent
stopper,” convincing people to stop scrolling long enough 30%
to let the sound and motion begin. After viewing such 25%
an ad, the mobile users took a survey about the relevant Mobile ad recall
brand or product. 30%
24%
When compared to a control group that hadn’t seen the Test (viewed ad) Control (did not view ad)
ad, the mobile users who watched a mobile native video Source: Opera Mediaworks and comScore Inc., "The Impact of Native
Mobile Video Advertising on Brand Metrics," Sep 10, 2015
ad were 5 percentage points more likely to want to buy the
196749 www.eMarketer.com
product. The ads produced a 4-point boost in favorability, a
7-point increase in likelihood to recommend, and a 6-point
increase in mobile ad recall.
Video ads on Facebook have proved popular with
marketers, and not only on mobile.
eMarketer estimates that US advertisers will spend $2.78
billion this year on mobile video ads on all platforms. US
spending on mobile video ads will more than double
by 2019.
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 5Mobile Coupons Effective Way to Link Mobile Ad to In-Store Purchase
In-store beacons also help
While mobile advertising can be an effective way Most Effective Methods for Attributing In-Store
for companies to reach consumers, being able to Purchases to Mobile Ads According to US Marketers,
Oct 2015
actually link a mobile ad to an in-store purchase % of respondents
is important. An October 2015 survey found that Mobile coupons
mobile coupons can help. 62.9%
Using mobile phone as in-store point of purchase
36.1%
According to research by Marchex and Digiday, almost SMS text offers
two-thirds of US marketers said mobile coupons were the 26.8%
most effective method for attributing in-store purchases to Attribution vendor
mobile ads. 25.8%
In-store beacons
Indeed, mobile coupons are valuable. In 2015, 40.5% of 22.7%
US companies with more than a hundred employees will Promotions in shopping apps
use mobile coupons for marketing purposes, eMarketer 22.7%
Other
estimates. By 2017, that number will grow by 7.5
3.1%
percentage points.
Source: Marchex and Digiday, "State of the Industry: How Mobile Is
Changing Marketing," Oct 27, 2015
Furthermore, eight in 10 US adult mobile coupon users will
199617 www.eMarketer.com
redeem a coupon or code via their mobile device for online
or offline shopping in 2015. And, in 2017, more than nine in
10 adults will do so.
Like mobile coupons, in-store beacons—which retailers are
beginning to use more of—are another effective method for
attributing in-store purchases to mobile ads, Marchex and
Digiday found. In fact, 22.7% of US marketers indicated so,
even though beacons are still in relatively limited use at retail.
Beacons also help influence in-store sales. A February
2015 forecast by BI Intelligence estimated that this year,
$4.1 billion in in-store retail sales among the top 100 US
retail locations would be influenced by beacon-triggered
messages. By 2016, that value will grow to $44.4 billion.
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 6Mobile Video Ads Drive Brand Awareness, Engagement
Digital video ad spending is growing
Mobile video advertising brings a lot of value to Additionally, nearly one-third of respondents
marketers, primarily increasing brand awareness. said that mobile video ads were suited to mobile
consumption behaviors.
It also helps with lead generation and better
engagement, according to a December That mobile video ads get higher clickthrough than
2015 survey. desktop-based ads and are less intrusive also appealed to
media decision-makers, but lower on the list.
Leading Benefits of Mobile Video Ads According to US
Media Decision-Makers, Dec 2015 Mobile video ad spending is growing faster than any
% of respondents other digital advertising format in the US, according to
Increases brand awareness eMarketer estimates.
47%
Better engagement/interaction Spending on mobile video advertising will grow more than
34% 70% to reach $2.62 billion in 2015—over one-third of the
Suited to mobile consumption behaviors estimated $7.77 billion to be spent on digital video ads. By
31%
2019, eMarketer estimates, mobile’s share of total digital
Better user experience
29%
video ad dollars will reach 47.7%.
More authentic brand voice
23%
US Digital Video Ad Spending, by Device, 2013-2019
Better quality of those who engage/click through
billions and % change
21%
$14.38
Lead generation
20% $12.82
Higher clickthrough than desktop $11.25
$6.86
20% $9.59 $5.96
Less intrusive
$7.77 $5.09
15% $3.94
None of the above $5.81 $2.62
6% $1.54
$3.82
$0.72 $7.52
Note: respondents chose their top 3; whether or not they currently use $6.16 $6.86
$5.15 $5.65
mobile video ads
Source: Trusted Media Brands (TMB), "Can Video & Native Formats Rule $3.10 $4.27
Mobile Advertising?" conducted by Advertiser Perceptions, Jan 6, 2016
202974 www.eMarketer.com 2013 2014 2015 2016 2017 2018 2019
Desktop*
18.3% 37.8% 20.6% 9.8% 9.0% 11.3% 9.6%
Trusted Media Brands (TMB) and Advertiser Perceptions
Mobile**
asked US media decision-makers to choose their top
166.5% 113.0% 70.4% 50.2% 29.3% 17.1% 15.1%
three benefits of mobile video ads—whether or not they
Total
currently use them. 32.2% 52.0% 33.8% 23.4% 17.3% 13.9% 12.1%
Note: includes in-banner, in-stream and in-text; *includes advertising that
Almost half of respondents (47%) said that increasing appears on desktop and laptop computers; **includes mobile phones and
tablets
brand awareness was one of their primary benefits and Source: eMarketer, March 2015
186665 www.eMarketer.com
a little over a third said that better engagement and
interaction was.
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 7Mobile Programmatic Display Ad Spend to Eclipse Desktop as
Automation Grows
Moving past the experimental stage
Programmatic advertising, the use of technology publishers increasingly look to redesign their sites in the
to automate the buying, selling or fulfillment of style of Facebook’s popular in-feed units.
ads, is becoming the standard for marketers
Another key aspect to mobile programmatic’s
looking to simplify the media buying process. advancement is video, which will exhibit swift growth over
the next 24 months, albeit starting from a small base of
The new eMarketer report, “Mobile Programmatic just $1.14 billion, or 12.2% of total US mobile programmatic
Advertising: Grabbing the Vast Majority of US Display Ad display ad spending. By 2017, that number will reach $3.79
Dollars by 2017,” explores that while programmatic was billion, but its share will still remain small, at 18.5%.
originally used to effectively buy desktop banners, the
process has naturally expanded to mobile. Moreover, Though these numbers may seem extremely conservative
eMarketer forecasts US mobile programmatic ad spending to the many who are bullish on mobile video growth, it’s
will reach $9.33 billion this year and account for 60.5% of important to note that eMarketer’s definition of digital video
total US programmatic display ad spending. only includes in-stream video ads (pre-, mid- or post-roll)
and does not include many of the fast-growing a types
Mobile might be newer to the programmatic game, but often lumped into the digital video ad category, such as
marketers have high expectations for it. A February 2015 native video or in-feed video.
survey conducted by RBC Capital Markets and Advertising
Age found that the biggest portion of US marketers cited
mobile as the channel or format expected to have the most US Programmatic Digital Display Ad Spending,
by Device, 2014-2017
opportunity for programmatic buying. And with many of billions, % change and % of total programmatic digital display
the other cited areas—such as social, video and native— ad spending
increasingly intertwined with mobile, such an opportunity is 2014 2015 2016 2017
only growing. Mobile* $4.44 $9.33 $14.89 $20.45
—% change 234.3% 110.2% 59.6% 37.3%
—% of total programmatic 43.0% 60.5% 69.1% 76.3%
“A year ago, clients were only doing science experiments in digital display ad spending
mobile programmatic,” said Craig Palli, chief strategy officer Desktop/laptop $5.89 $6.10 $6.66 $6.34
at mobile marketing firm Fiksu. “They were checking ‘test —% change 73.3% 3.7% 9.2% -4.9%
mobile’ off of their to-do list. This year, we’re seeing the —% of total programmatic 57.0% 39.5% 30.9% 23.7%
digital display ad spending
larger brands come in with millions of dollars, because they Note: digital display ads transacted via an API, including everything from
publisher-erected APIs to more standardized RTB technology; includes
now realize that if they’re not reaching their consumers on native ads and ads on social networks like Facebook and Twitter; *ad
mobile, they’re ripe for disruption for competitors.” spending on tablets is included
Source: eMarketer, Oct 2015
197076 www.eMarketer.com
Facebook is playing a substantial role in mobile’s
programmatic growth. With Facebook considered a
largely programmatic platform and its US mobile revenues
expected to total $5.89 billion this year and reach $10.32
billion by 2017, its direct contribution to total US mobile
programmatic digital display ad spending will be significant.
However, eMarketer also anticipates that Facebook will
play a secondary role in fueling the growth of mobile
programmatic ad spending as both mobile web and app
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 8UK Marketers Switch on to Mobile Programmatic
Over half of mobile marketers already get programmatic
A recent study from the Internet Advertising Level of Knowledge About Programmatic Advertising
Bureau UK (IAB UK) indicated that 50% of on Smartphones According to UK Mobile Marketers,
Dec 2015
UK marketers use programmatic for buying % of respondents
smartphone inventory. However, the research,
No
which was conducted in December 2015 by knowledge Expert
12% 12%
Circle Research, also found that among those
that advertise on mobile, 44% didn’t have good
Little knowledge
knowledge of the practice. 32% Good knowledge
44%
Another way of looking at those figures, though, would
be to concede that 66% of UK mobile marketers
Note: n=301 who advertise on smartphones
professed to having either good or expert knowledge Source: Internet Advertising Bureau UK (IAB UK), "Mobile Advertiser
about programmatic advertising on smartphones. If the Snapshot Study 2015" conducted by Circle Research as cited in Marketing
Week, Jan 13, 2016
wider programmatic market is anything to go by, these 203337 www.eMarketer.com
proportions are likely to be even more heavily weighted
toward those that are “clued in” to the programmatic UK Programmatic Digital Display Ad Spending,
proposition in the coming years. by Device, 2013-2016
millions of £, % change and % of total programmatic digital
display ad spending
In eMarketer’s September 2015 report “UK Programmatic
2013 2014 2015 2016
Advertising Forecast: Automated Trading on Track to
Mobile* £157.0 £538.0 £1,008.8 £1,445.6
Dominate Digital Display Ad Spending,” Steve Chester,
—% change 328.9% 242.7% 87.5% 43.3%
director of data industry programs at the IAB UK indicated —% of total programmatic 35.1% 49.7% 56.1% 58.7%
that the education phase for programmatic trading at large digital display ad spending
had largely passed. “There’s a lot more confidence in the Desktop/laptop £289.9 £544.2 £790.2 £1,018.3
—% change 155.8% 87.7% 45.2% 28.9%
market than there was say two or three years ago when
—% of total programmatic 64.9% 50.3% 43.9% 41.3%
programmatic was really starting to take off in the UK,” digital display ad spending
he said. Note: digital display ads transacted via an API, including everything from
publisher-erected APIs to more standardized RTB technology; *ad spending
on tablets is included
Mobile marketers were slightly later to the programmatic Source: eMarketer, Sep 2015
194833 www.eMarketer.com
party, but with mobile taking an ever-larger chunk of
programmatic ad spend, the education phase is likely
to accelerate quickly. eMarketer estimated that mobile
accounted for just 35.1% of programmatic digital display
ad spending in the UK in 2013. However, by 2016, that
proportion is forecast to reach 58.7%. Although UK mobile
marketers are relatively well-versed in trading smartphone
inventory programmatically, it’s apparent that more need to
get up to speed.
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 9New Data Will Help Advertisers Get More from Mobile Programmatic
Beth Gilmore eMarketer: How will ad targeting improve this year?
Head of Global Demand
Gilmore: Data is going to be huge this year. Publishers are
MoPub
getting smarter about what they want to do with their data
and how they want to transact their data to advertisers,
especially in a programmatic setting. New data is going to
New and improved data that’s becoming be available. It’s up to the exchanges and platforms that are
available this year will allow advertisers to better supplying this data to make sense of it so that it transacts
target their most desirable audiences via mobile across channels.
programmatic, according to Beth Gilmore, head
eMarketer: What’s the level of interest in
of global demand for Twitter-owned mobile
location targeting?
ad server and exchange MoPub. eMarketer’s
Tricia Carr spoke with Gilmore, whose focus is Gilmore: Location has become the most desirable first-
the mobile in-app inventories within MoPub’s party data that an advertiser can get from mobile. That’s
programmatic exchange, about what mobile what makes mobile unique—you can find your user
advertisers should focus on in 2016. wherever they are. Brands should know that they’ll have
to pay a premium for it as it becomes more desirable and
differentiates mobile against desktop, TV and all of the
eMarketer: What opportunities in mobile in-app
other platforms.
advertising are important to marketers’ overall digital
advertising strategy? “Location has become the most desirable
first-party data that an advertiser can get
Beth Gilmore: One is desired audiences and users
from mobile.”
that are available in mobile. There is a misconception
that desirable users and inventories are only in labeled
This year is also going to be all about verification with third-
premium content—for example, “I can only find Joe
party data providers—making sure that location is accurate
Wall Street Banker on The Wall Street Journal.” But Joe
and standardizing what location looks like in mobile. It can
who reads The Wall Street Journal also plays games and
come through many different data points, like IP address
uses utility and entertainment apps. You can find your
or DMA [designated market area], so marketers have to
desirable audience and users across all different types of
standardize what it is that they’re looking for.
app verticals.
eMarketer: Is the added expense of buying ad
“You can find your desirable audience
placements with location data worth it?
and users across all different types of
app verticals.” Gilmore: The expense is worth it if you’re a brand
advertiser that’s looking to focus on that user at that
In mobile, data has been fragmented. Most brands just location at that moment. Publishers are getting smarter
know the cookie, and all of the buyers that they’ve worked about the data that they’re dipping and what they want for
with give them user profiles or audiences based on the a premium.
cookie. But data is going to be the new term for mobile
programmatic this year. It’s going to be easier for brands to Advertisers might not understand how cheap mobile is
target their desirable audiences on mobile because of the right now—it’s much cheaper than desktop and there’s
advancement of data. still more supply than demand at this point. This is their
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 10opportunity to get in and take advantage of location, Now we’re seeing a switch. Performance marketers think
and mobile advertising in general, before it becomes of themselves more as brands. They have TV commercials,
more expensive. they want to make sure that their ads are high-quality
and the view is just as important as the install. Brands are
eMarketer: What metrics are most important when trying to drive performance metrics like clicks, installs and
measuring mobile programmatic? lifetime value.
Gilmore: Over the past few years, we’ve seen brand It’s been interesting to see that transition, but you need all
advertisers in mobile not knowing what convergence they of the above. You can’t just run campaigns that are going
wanted. All they focused on was pushing impressions. to drive installs or views. Campaigns should have clear
Performance marketers were the complete opposite—they metrics and run the gamut.
just tried to drive that app install. They just tried to find the
lifetime value of the user and only target users that they
knew would spend money within the app.
How Personal Capital Optimizes User Acquisition, Conversion
Across Channels
Mark Goines event. We have a dozen conversion events that we
CMO monitor. We look to optimize against those conversion
Personal Capital events, and they’re different based on channel.
For example, an application install is a different conversion
event than a registration from that install that occurs on the
Mobile is vital for user acquisition and customer device. There’s also a different event that occurs when that
engagement at Personal Capital, the creator person downloads our app and then registers it, not on the
of digital wealth management tools where phone but on the web.
users can aggregate their financial accounts,
We have to be multichannel-capable in our tracking and
determine their net worth and engage with
therefore align our tag management system in a way that
financial advisors. CMO Mark Goines spoke with allows us to track that user through their journey—not
eMarketer’s Bryan Yeager about how the firm necessarily the journey that one specific vendor has in
uses marketing technology to optimize cross- mind for an install that becomes a registered item on the
channel acquisition and conversion and how it’s phone. We use multiple technologies. We then integrate all
finding scale beyond digital channels. that data into a single view of the user’s journey and try to
do attribution from that.
eMarketer: How do you track the path from user
We also use the multistage influence model. In other
acquisition through customer conversion across various
words, we might talk to somebody seven or eight times
channels and touchpoints?
before they register. We want to track their journey to
those different touches through various integration to tag
Mark Goines: We have a robust implementation of
management systems so that we can then say, “This is the
tracking against lead source. We originally used and still
ninth time, and finally they registered with us. How did we
largely rely on a last-click attribution model to a conversion
get them there?”
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 11“We want to track their journey to those Goines: One of the challenging things about the direct
different touches through various digital channel—particularly when we narrow our audience
integration to tag management systems targeting to identify highly qualified users—is that we
so that we can then say, ‘This is the ninth hit scale and there’s not much more capacity. We began
time, and finally they registered with us. aggressive testing of direct mail and television. These are
How did we get them there?’” scalable mediums if you can solve for the same audience-
targeting puzzle.
eMarketer: What influence do the likes of Facebook,
Google and Twitter have on how your company approaches You have to be a certain scale of company to use those
marketing technology? efficiently, because you have to spend a lot of money doing
creative packages, buying lists, building the television
Goines: At the top of the funnel, they’re very influential commercials—those are not low-cost endeavors. We’ve
and frankly, they give us heartburn about being able reached a scale now where those are in the realm of
to do multichannel tracking. There are certain rules. possibility for us.
Facebook won’t let you put customized tags in URL listings.
Apple requires a generic landing page. They all have eMarketer: How successful have these efforts been?
their particular rulesets that ostensibly are focused on
protecting personally identifiable information. For us, that’s Since we began experimenting, we’ve seen positive results
a barrier to efficient multichannel marketing that we have directly from them. They’ve also had a positive effect on
to solve for. our other channels—this cross-channel impact that occurs
when you start building brands, if you will.
eMarketer: How do you overcome those challenges?
Even though we focus on a direct-response model, we ask
Goines: We continue to find new technologies, new people to come and visit our site and register. We measure
platforms and new permissions with those partners the effectiveness of each of those programs by the amount
that allow us to execute our multichannel marketing of direct response they create, but it seems that those
strategy efficiently. mass media are helping to lift all boats for us.
Facebook and Twitter are helpful in terms of where we can
do better audience targeting. Facebook, for example, gives
more insights into the profiles of users in a way that allows
us to create lookalike modeling based upon successes
we’ve had. That allows us to refine our targeting into their
customer base. Of course, they charge more for that. It’s
gotten more expensive to market on their platforms with
that improved targeting.
As a marketer, you look for the opportunities, the crevices,
the creases—the things somebody else hasn’t found.
Facebook and Google have bidding systems. You’re
competing with everybody else for the same insights
that you might get, so they tend to be fleeting. Improved
targeting turns into higher pricing. That’s fair, that’s their
business. We have to be smart about how we use it.
eMarketer: Is there a place for TV and other traditional
advertising methods in your media mix?
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 12Private Marketplace Investment Rises as Brands Buy in on
Mobile Programmatic
Mark Connon Brand spend is going to come in through the more
Executive Vice President, Platform sophisticated agency trading desks transitioning from
Millennial Media the display world, or in some cases, the mobile pure-
plays developing solutions for these types of brand
buyers. Brands want to come into an environment they’re
comfortable and familiar with. They want transparency,
As the executive vice president of platform at brand safety and audience guarantees, as well as a direct
mobile ad network and exchange Millennial relationship with a publisher. The wide-scale availability
Media, Mark Connon is responsible for managing of that from a technology or capability standpoint is
all demand-side partnerships with the company’s here. Brands that are shifting some of their spend toward
mobile ad exchange. Connon recently spoke with programmatic are making those asks.
eMarketer’s Lauren Fisher about some of the
eMarketer: What type of inventory are brand
biggest programmatic trends Millennial Media advertisers looking to acquire through these more private
is seeing, including the rapid adoption of private transaction methods?
marketplaces and the importance of cross-
device advertising. Connon: It runs the gamut. Sometimes they are custom
ad units, other times [the inventory] is driven by data and
key attributes like location, audience segment or device ID
eMarketer: What are some programmatic trends you’re
where the buy side is using their own data management
seeing play out in the mobile space?
platform [DMP] to target their particular audience.
Mark Connon: One is the rapid move toward Deal ID and
programmatic direct. That has a lot to do with the evolution
“Brand spend is going to come in through
of the OpenRTB standard to include Deal ID. We now have
the more sophisticated agency trading
the bulk of our programmatic buyers using the current
desks transitioning from the display world,
RTB standard, which enables Deal ID, and that’s been a
or in some cases, the mobile pure-plays
rapid evolution over the last six to nine months. It allows
developing solutions for these types of
most of the players in our world to transact via these
brand buyers.”
private marketplaces. It’s the next phase of evolution for
In terms of formats, video is growing rapidly. It’s an effective
programmatic capabilities.
format for mobile. If done well, it can be incredibly engaging
eMarketer: What’s driving this mass adoption of more and drive interactions in a way that drives significantly
private-type programmatic setups? higher prices. Advertisers are more than happy to pay
those costs because they are engaging with their audience
Connon: The foundation of mobile advertising has been in a unique way.
the app download space, more pure direct response and
cost-per-install or cost-per-action dollars, which is still the eMarketer: With something like native programmatic,
vast majority of spend in display. But the shift that we have one has to imagine that programmatic creative would
seen and will continue to see is driven by consumers—the be a necessity to execute these placements with the
amount of time and usage of smartphone and tablets. greatest relevancy.
That’s always been an indicator of where brand spend
will be.
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 13Connon: The native spec included in the OpenRTB 2.3
standard is essentially a form of dynamic creative, but it’s
not necessarily based on consumer targeting as much as it
is on with assimilating the ad unit with the look and feel of
the site.
Coming at it from the targeting lens, on the desktop,
you have the third-party cookie, which is a deterministic
solution on which to match a browser to a user. But with
cross-screen, it’s not that deterministic yet. You do see
some focusing on cross-screen to be able to capture that
data and target a user based on what they’ve seen and
what they’ve done. The next logical solution or step from
that is to dynamically do the creative as well. But that’s not
something that’s prevalent through our exchange yet. It’s
not yet a part of everyday conversation.
eMarketer Roundup: Optimizing Mobile Advertising Copyright ©2016 eMarketer, Inc. All rights reserved. 14Performance
Matters
Light Reaction is a programmatic performance media company.
We use proprietary technologies and premium supply to deliver premium outcomes
across any device or platform. We price all of our programs on a performance basis and
guarantee our outcomes.
Visit us at LightReaction.com for more informationThe leading research firm for marketing in a digital world.
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