January 05, 2015 Addictive Mobility Year End Report

ADDICTIVE MOBILITY 2014 YEAR END REPORT
FOREWORD
Mobile has become the
connective tissue.
2014 witnessed a clear demarcation between Global brands and Agencies
who have fully embraced mobile advertising compared to those who
remain under the notion that digital advertising continues to be
synonymous only with online advertising.
With the release of our 2nd our annual report on mobile advertising, we
attempt to highlight how much advertising on mobile has evolved in the
last 12 months. We believe this report will showcase the various elements
that need to be considered in trying to successfully navigate the rapidly
changing mobile advertising landscape.!
- Naveed Ahmad – CEO, Addictive Mobility
2
2014 At A Glance : Mobile Grows Up
2013
2014
For Addictive Mobility
For Addictive Mobility
Clicks
!
+ 81%
CTR
+ 25%
Engagement
Rate
+ 14%
Clicks
CTR
Impressions Served
Engagement
Rate
Impressions Served
100% Video
Completion Rate
!
+133%
100% Video
Completion Rate
!
+18%
3
North America Spend grew across most industry verticals due to
innovation and a shift towards the importance of mobile
Publisher regulations for Alcohol & Gambling advertisers relaxed in 2014, leading to 314% growth in media spend!
Health & Pharmaceutical advertisers pulled back from mobile spending as they concluded that their target audience was too segmented
to take an efficient programmatic approach and legal restrictions limited inventory.!
Electronics & Tech faced stiff competition from Amazon and e-bay, leading to refocusing strategy in other vehicles.
-2.34%
+314%
+59%
+ 434%
+85%
+123%
-62%
+2%
Telecom
Alcohol &!
Gambling
Banking &!
Finance
Food &!
Beverage
CPG
Automotive
Theatrical
-30%
Electronics &!
Technology
Health &!
Pharmaceutical
4
iOS devices make up 46% of the unique visitors, but
69% of the clicks
Ad Blocking apps on Android were downloaded 17% more in 2014 than in 2013, indicating that
despite new user IDs in the system, the ability to remarket to them has been diminishing.
CTR for native advertising units on iOS was 125% higher than on Android. Native worked best on iOS for
shopping and movie advertisers, with an average engagement rate of 21.5%, compared to 14.2% on Android.
Operating System Breakout
2014
31
46
%
Unique Visitors
54
%
54
46
%
%
Impressions
Clicks
69
iOS
%
%
Android
6
As creatives become more immersive, CTR growth for
traditional ad formats has plateaued, while Video and 3D
Interactive has flourished
Banner ads in 2014 saw a decrease of 36% in CTR, as this ad format has been eclipsed by rich media units and video
inventory increasing in the marketplace.
!
More advertisers employed interstitials this year, bringing media spend more in line with banner performance. Additional ad real
estate in the unit, coupled with multiple call-to-actions, drove the CTR up 124% over 2013 levels
!
Video inventory was rolled out in March 2014, and showed a strong average CTR at 11.33%. The majority of videos were
thirty second spots with an opt-out at the 25% mark, indicating that compelling video must capture and engage users in 7.5
seconds after auto-play.
Banner
Interstitial
Video
3D Interactive
7
Leveraging Geo Data allowed advertisers to improve the
efficiency of their media dollars
Canada
Approx.
179 Million
3/4 Million
Location Enabled !
Daily Unique Users
Location Enabled
Daily Bid Requests
Low Density
High Density
Monthly Bid Requests
In 2013, approximately 13% of requested campaigns included some sort of geo based targeting. !
In 2014, 1 out 4 campaigns requested some sort of geo based targeting.
Source: Addic,ve Mobility EngageFront/Metamarket
8
According to one of the largest mobile SSP 45% of all
global in-app GPS data is accurate
TOP APP CATEGORIES THAT PROVIDE GPS LOCATION DATA
Monthly bids
Gaming
News & Information
18.6M
Entertainment & Music
158
M
8.01M
Social
Lifestyle & Fitness
110
M
89.8
M
10
App inventory changed dramatically in 2014, with behavioural
targeting showing advertisers their audiences may not be where
they think they are
Music
+150%
Productivity
+22%
Entertainment
+6%
Lifestyle/!
Fashion/ !
Beauty
•Music apps saw an increase in CTR (150% YoY), despite -3%
Sports
growing paid subscriber numbers (+112% increase over 2013) that allowed users to listen commercial-­‐free -5%
Social &
Communication
+ 334%
Health &
Fitness
- 19%
!
•The addi,on of Skout, AskFM and Pinger in the Google Play App store led to over a 1000% increase in served impressions to social apps !
Books
- 39%
Medical
•Finance app inventory decreased significantly as publishers removed their placements from the open market. - 24%
Travel &
Hotels
Behavioural targeDng focusing on look-­‐alike modelling was employed to minimize CTR drop off.
- 66%
News
- 32%
Finance,/
Business
- 49%
Food & Drink
-14%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
11
Engagement Rates saw a 47% increase for interstitial ads
that included additional action elements
Social Media
Adding the TwiOer “Follow” buOon to inters,,al ads increased the engagement rate by 11%. !
Facebook “Like” buOons increased engagement rates 36%. Digital Coupons
Mobile coupons work best in the CPG and QSR industry ver,cals, though engagement rates vary based on the adver,ser’s offer. !
Offers with a percent off savings performed bePer than ones with a free service or product.
Store Locators
Adver,sers who included a link to find a physical store saw an engagement rate of 1.51% on that event. !
Drive-­‐to-­‐store strategy was 73% more effecDve when coupled with geo-­‐
fencing.
Immersive Experience
Dynamic crea,ves that allow users to “play” with the ads increase viewable Dme by 467% compared to sta,c banners and engagement rates averaged 19%.
12
2015 MOVING
FORWARD
As the digital and physical worlds merge, Addictive Mobility’s
innovation in the mobile advertising is taking marketing to
new heights
Geographic retargeting
3D Interactive Video
Behavioural targeting
Self-serve programmatic buying tool
Ads are served only where they are
relevant
Take creative in a whole new direction
with rich animation
Find the right customer based on their
mobile app usage
Take control of mobile strategy by utilizing
Addictive’s proprietary tool
Native Advertising
Private marketplace deals
In-App Retargeting
!
Programmatic buying No more spray-and-pray. Buy media at
its market value
!
Units designed to shape content around
marketing messages
!
The most efficient path to premium
properties
!
Re-engage your audience
13
2015 The Year Ahead
Evolution of Data to Storytelling: Brands will be demanding a better
understand of their digital spend with clear measurement tools. We will
move from reporting on CTR numbers to analysis of post campaign data.
Immersive Mobile First Messaging: There will be a more integrated
marketing approach to mobile advertising. Advertisers will leverage `sight,
sound and motion’ utilizing all mobile ad formats: Video, Rich Media and
Native Ads. Additionally, there will be an increase in creative AB testing
and creative analytics.
Greater Data Points: There will be a greater demand on publishers to
provide more robust user information via impression data passed to either
DSPs or DMPs. More publishers will begin to pass better Geo data,
demographic data to improve audience targeting.
From many to a selected few: Both Agencies and Brands have
significantly increased their knowledge in regards to the offering provided
by Ad Tech platforms. They will now begin to choose partners offering clear
differentiators. Additionally, there will be an continuation of vendor
consolidation via M&A activity.
TORONTO!
VANCOUVER!
UK!
DUBAI!
2 Pardee Ave Unit #101!
Toronto, ON, M6K 3H5!
T(+1) 416 535 0706!
F(+1) 416 535 0709
1199 West Hastings Street,
Suite 800!
Vancouver, BC, V6E 3T5!
T(+1) 604 629 8987
48 Charlotte Street,!
London W1T 2NS UK!
T +(0)20 3701 0370!
M +(0)20 3701 0372
1406, JBC3, Cluster Y!
Jumeriah Lake Towers,
Dubai, UAE!
T +(971) 4 454 2608
Contact us: info@addictivemobility.com
Website: http://addictivemobility.com/
@addictivelabs