iMedia October Breakthrough Summit: Insight Address: "The $1 million CPM: Will Apple’s iAd...

The $1 Million CPM:Will Apple’s iAd Change the Mobile Market Forever?

Noah ElkinSenior Analyst

eMarketer

iAdsAn agency perspective

Brett BarashVice President, Account Director

BBDO

eMarketer - A business information service unlike any other

• Founded in 1996, eMarketer provides unbiased research and trend analysis on digital marketing and media

• Approach & Expertise– We aggregate, filter, organize and analyze data from more

than 4,000 global sources– Analysts put the data into context covering all aspects of

the market, with overviews and insights that can’t be found anywhere else

2010 was a watershed year for mobile

Nov. 2009 Jan. 4, 2010

Jan. 5, 2010

Jan. 27, 2010 April 2010

Mobile ad spending is going UP!

What a difference a year makes

2009 2010 2011 2012 2013 2014$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000 Sept. 2009 Forecast Sept. 2010 Forecast

Source: eMarketer, 9/2010

Focus of mobile advertising is shifting

Source: eMarketer, 9/2010

Apple has played the role of catalyst for mobile advertising

• The “iAd effect” has produced the following key results:

– Benefited the entire mobile ad space by generating awareness and excitement about mobile advertising, particularly interactive rich media

– Reinforced the effectiveness of mobile as a branding medium

iAd is also having an impact on spending

Source: IDC, 9/2010

Success comes despite setbacks

Richer ads units are driving spending growth

CAGR, 2009-2014 (in %)

Video 74%

Total Display 60%

Search 59%

Banners and Rich Media

58%

Messaging 21%

TOTAL 44%

The iPhone audience: exclusivity vs. reach

• Small audience: ~16.5 million US iPhone users– Represents approx. 30% of US smartphone

population (Nielsen, Aug. 2010)• Active audience: iPhone users generate 50-

60% of all monthly smartphone ad impressions on networks such as Millennial Media and AdMob

• Wild card: Verizon iPhone

Has iAd changed the mobile market forever?

Yes.

Thank you

Noah ElkinSenior AnalystEmail: nelkin@emarketer.comTwitter: @noahelkinBlog: emarketer.com/blog/index.php/author/nelkinPhone: (212) 763-6055

iAdsAn agency perspective

Brett BarashVice President, Account Director

BBDO

Existing Live iAds

Why AT&T?

• First to market• Innovative, Rich Mobile Experiences• Partnership (AT&T and Apple)• Targeting Capabilities• Competitive Exclusivity

Challenges

• Reach – Limited to iPhone and iPod Touch• Creative control• Reporting and Benchmarks• Message Strategy

Add A Line / Smartphone Data

Introduction ofU-verse TV

Thank you

Brett BarashVice President, Account DirectorBBDOEmail: brett.barash@bbdo.comTwitter: @brettbarash