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CHARTBOOST POWER-UP REPORT DECEMBER 20171
HOW TO CONFIDENTLY ENGAGE MOBILE CONSUMERS AT SCALEThe Brand Advertiser’s Guide to Mobile Programmatic
CHARTBOOST POWER-UP REPORT DECEMBER 20172
CONTENTS
What is Programmatic Advertising?
Introduction
Mobile is King
Deliver Compelling In-App Creatives
ConclusionChartboost Exchange
Making Sense of the Programmatic Ecosystem
In-App SDKs Collect the Data You Need
Video Ads
Types of Programmatic Media Buying
Resolving Common Programmatic Misconceptions: Desktop vs. Mobile
Resolving Common Programmatic Misconceptions: Mobile Web vs. In-App
The In-App Programmatic Advantage
What does Opt-in really mean?
Full-ScreenBanners
Reach the Most Engaged Mobile Audience at Scale
Interactive/Playable Ads
Static Ads
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CHARTBOOST POWER-UP REPORT DECEMBER 20173
INTRODUCTION
Programmatic is a hot buzzword in today’s mobile advertising industry. While most marketers hear
about programmatic advertising, many of them are still confused about it and how it fits into the mobile ecosystem. Its no secret we’re spending more and more time on our phones. In fact, digital media us-age time is driven by mobile apps, with smartphone apps accounting for 69% of all time spent -- com-pared to 34% on desktop and 7% smartphone mobile web. Turning to mobile programmatic, is essential for marketers who want to keep up with the way people interact with technology.
Brands that have had success with programmatic marketing on desktop simply can’t afford to ignore mobile if they want to reach their ideal customers. With mobile programmatic, brands can combine so-phisticated targeting with rich mobile device data.
The digital advertising space has evolved at a rapid pace, much of that can be attributed to two main factors: mobile dominated digital media consumption in apps and major technology advances in automated media buying.
Programmatic, the automation of buying and sell-ing of digital inventory, offers a huge opportunity for brands and performance marketers to reach a spe-cific audience with tailored messaging as they en-gage with their favorite apps at scale.
This power-up report aims to provide a comprehen-sive guide to understanding what programmatic is and how brand advertisers can use it to drive long-term ROI. We’ll then dive into the various ways to buy mobile media programmatically and different creative types to optimize performance.
CHARTBOOST POWER-UP REPORT DECEMBER 20174
WHAT IS PROGRAMMATIC ADVERTISING?
Programmatic uses software to automate the buying and selling of ad inventory leveraging computers and algorithms, as op-
posed the traditional human led insertion order process that re-quires tedious heavy lifting. Before the age of programmatic, a typ-ical digital advertising process involved drafting several request for proposals (RFPs), one-on-one negotiations, and manual inser-tions of orders (IOs), making this way of media buying particular-ly inefficient and slow -- especially when processing hundreds to thousands of orders at a time.
Programmatic is important for both buyers and sellers because it automates traditional workflows and allows for quicker, cheaper and better targeting than traditional digital ad buying techniques. Equally as important, programmatic enables marketers to target success metrics more closely, and continuously optimize perfor-mance towards campaign KPIs, therefore increasing overall ROI. It also allows a marketer to gain more customer insights, as the technology continually gathers “smart” data, based upon the type of individual that engages with the brand. A marketer can then take these learnings and apply them across all marketing efforts to increase overall campaign performance, which creates a more streamlined, holistic approach to marketing.
CHARTBOOST POWER-UP REPORT DECEMBER 20175
MAKING SENSE OF THE PROGRAMMATIC ECOSYSTEM
Agency trading desk (atd)
An ATD is a massive media buyer and re-sell-er, which functions as an independent work-ing unit within a large media buying concern. This technology helps to manage program-matic media acquired through a bidding sys-tem, which intends to seek a certain audience. Marketing specialists make use of program-matic advertising obtained through ATDs and optimize results using DSPs, especially when there is the need for re-targeting when an ad campaign is underperforming.
DEMAND-SIDE PLATFORM (DSP)
A DSP is a platform that allows buyers to pur-chase ad inventory across multiple ad ex-changes from a single source. Advertisers leverage the DSP’s interface to manage bids, set targeting & retargeting criteria, aggregate disparate data, and optimize campaigns in re-al-time auctions.
ad exchange
An ad exchange is a digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through re-al-time auctions. They’re most often used to sell display, video and mobile ad inventory. Advertisers and agencies typically use DSPs to then pick which impressions they wish
to purchase using technologies like de-mand-side platforms. Those decisions are often made in real time based on informa-tion like the user’s historical behavior an ad is being served to, time of day, device type, ad position and more.
Before we jump into the specifics of mobile programmatic, let’s first review who the biggest players in the programmatic advertising ecosystem.
DMP
supply-SIDE PLATFORM (sSP)
An SSP gives publishers a platform to “sell” their digital (app or website) inventory to advertisers placing bids through multiple ad exchanges, ad networks, and DSPs at once. Through the SSP interface publishers manage impression inven-tory and can choose to exclude/include adver-tisers based on ad quality, experience, and rev-enue generated.
data managment platform (DmP)
A DMP collects and aggregates first-party data (data from your own digital properties) plus third-party demographic and behavioral data to give you a 360° view of your users. By bringing this disparate user data into a single view, the DMP provides key insights into online and offline activity to help you define narrowly targeted au-diences. Based on specific behavior, interests, demographics, purchase history, buying stage, etc. you can formalize each segment’s criteria. Armed with a wealth of insights you can then send highly targeted messages that not only resonates with your core audience, but inspires them to take action.
CHARTBOOST POWER-UP REPORT DECEMBER 20176
TYPES OF PROGRAMMATIC MEDIA BUYING
Real Time Bidding (RTB)
One of the biggest misconceptions about programmatic is Programmatic and RTB are interchangeable naming conventions. RTB is the process of buying each advertis-ing impression in a unique auction, based on the criteria of the individual whom will see the ad. For example, when a user engages and app and views an ad place-ment, a live auction occurs where the ad-vertisers bid on the ad view based upon the user’s habits and interests. Multiple ad formats and quality in-app placements are now available through programmatic buying, including Rewarded Video, Inter-stitial Video and Static, and Playables.
Private Marketplaces
An invitation-only RTB auction where one publisher or a select number of publish-ers invite a select number of buyers to bid on its inventory. Inventory purchased is transparent – the buyer knows exactly which app or site the ad will run on. With Private Marketplaces, the general prem-ise is to skip the exchanges altogether.
With Private Marketplaces your buying platform (DSP) plugs directly into the pre-mium publisher’s inventory source. The transaction is within an auction environ-ment but the terms of the deal are pre-ne-gotiated between the buyer and seller and the advertiser must be approved – so it is more manual than open exchanges.
Programmatic Direct
Programmatic software allows advertis-ers to buy guaranteed ad impressions in advance from specific publisher sites, also referred to as Programmatic Direct. Programmatic Direct is direct sold, guar-anteed inventory, that doesn’t require hu-man intervention to run (non-RTB). Under programmatic direct deals, a pub-lisher’s sales rep may negotiate an ar-rangement with an advertiser that includes top-tier inventory like home-page- take-over ads at a fixed price for a guaranteed number of impressions.
CHARTBOOST POWER-UP REPORT DECEMBER 20178
Programmatic has been adopted across most formats and platforms but with mobile
specifically, we’re seeing dynamic growth. Mobile is where users are engaged and where they are most likely to convert. As we see in the chart, mobile video and mobile display combined represents over 50% of programmatic spent in 2017. According to eMarketer, 75% of all video dollars in the US will transact programmatically by 2018.
35B
30B
25B
20B
15B
10B
5B
0
2015 2016 2017
Desktop Display
Source: IDC, December 2016
Programmatic Ad Market
Mobile Display
Mobile Video
Desktop Video
Programmatic TV
Audio
CHARTBOOST POWER-UP REPORT DECEMBER 20179
RESOLVING COMMON PROGRAMMATIC MISCONCEPTIONS: DESKTOP VS. MOBILE
Buying inventory programmatically on mobile and desktop, at a basic level, are pretty much the
same. Advertisers choose their audiences and de-fine how much they will pay to reach that audience. Media agencies then create the plan to target those audiences across desktop and mobile.
In both the mobile web and desktop scenarios, the DSP bids on a per-impression basis on behalf of the advertisers and an SSP - whether it’s mobile, desk-top, or cross-platform, offers up their inventory and awards the impression to the highest bidder.
The process of buying media programmatically changes when it comes to buying in-app inventory vs. mobile or desktop web inventory.
To clarify, the common programmatic misconception isn’t buying desktop vs. mobile inventory; it’s actual-ly buying mobile web vs. in-app inventory. This dis-tinction is important to understand because much of the growth happening in programmatic mobile is largely attributed to mobile apps.
2012
1:40
2:282:51 3:05 3:15 3:23 3:25
0:50
0:500:50
0:50
0:51
0:51
0:38
In-app
Average time spend per day with mobile internetamong us mobile users, in-app vs. mobile web 2012-2018
Mobile web
2013 2014 2015 2016 2017 2018
Source: eMarketer, April 2016
4:31
2:15
1:30
0:35 0:32 0:30 0:28 0:27 0:26
1:28 1:27 1:27 1:26 1:25
2:16
2:14 2:12 2:11 2:10 2:08
2:372:53
3:063:15 3:23
4:224:11 4:05 4:00 3:55
Average time spend per day with select media by US Adults,2013-2018
2013
TV* Mobile (nonvoice) Desktop/laptop** Radio* Print*
2014 2015 2016 2017 2018
Source: eMarketer, April 2016
“The common programmatic misconception isn’t buying desktop vs. mobile inventory; it’s actually buying mobile web vs. in-app inventory.”
CHARTBOOST POWER-UP REPORT DECEMBER 201710
RESOLVING COMMON PROGRAMMATIC MISCONCEPTIONS: MOBILE WEB VS. IN-APP
When we review the ways we can connect with mobile audiences, there are 2 distinct approaches: mobile web and mobile app.
The true difference between these two channels all comes down to viewability and data.
While mobile web still represents large volumes of traffic, the viewabil-ity of the ads is limited by the fact that the placements are hidden on the website content. Industry benchmarks say that overall viewability in the mobile web is 57%. Mobile apps represent fully immersive contexts (users have close to full attention on the mobile content) and in the case of placing full-screen ads, the viewability levels are over 95%.
The nature of the 2 approaches drives very different behaviors.
Mobile web captures user activity on browsers, searching for informa-tion or navigating websites, and it relies on expiring cookies to deliver this data. Cookies allow advertisers to identify that a unique visitor to their website is interesting, and then retarget them with relevant con-tent as they browse their way through the mobile web.
CHARTBOOST POWER-UP REPORT DECEMBER 201711
THE IN-APPPROGRAMMATIC ADVANTAGE
1 - Increase Efficiency in Media buying process
Cut-out room for human error. Scale media buys with ac-cess to multiple inventory sources, without compromis-ing on target relevance or quality.
2 - Optimize Premium Media Inventory
Reach your ideal customer while they’re on-the-go with personalized ad creatives. Plus, get increased viewabili-ty and fraud detection for more cost-effective campaigns across top in-app real estate.
3 - Eliminate Waste with Real-Time Buys
Deliver hyper-relevant ads based on what’s happening around any particular customer with real-time bids. Com-bine this geofencing or geolocation targeting to invite shoppers into your storefront with limited offers and cou-pons.
4 - Target Audiences More Effectively Across Devices
Mobile offers brand advertisers a new channel to target audiences previously identified in other channels (CRM, offline purchases, desktop, etc.) and combine 1st and 3rd party data to build richer audience segmentations.
• Impressions by app level data
• Impressions by device level data
• Global mobile SDK penetration
• Mobile-first ad formats: rewarded, playable, video, rich media
• Real-time optimizations
• Real-time campaign reporting
• Blacklist / Whitelist mobile app publishers
• 3rd party analytics integration
KEY IN-APP PROGRAMMATIC VENDOR FEATURES:
CHARTBOOST POWER-UP REPORT DECEMBER 201712
Mobile apps collect persistent device IDs, not cookies. These identi-fiers, IDFAs (iOS) and Google Ad IDs (Android), are the basis for user targeting and tracking of conversions and post-install events. On top of that, mobile apps can collect the location, device type, operating sys-tem, connectivity, post-install actions, and number of times an ad has been shown. Apple IDFA and Google Ad IDs work across all apps and browsers on the device, while mobile and desktop web are limited to the information available during that user’s session on individual websites.
All this information is collected at the device level through an SDK, making the data easily accessible for advertisers or DSPs using device identifiers, which remain persistent throughout the entire sales funnel, to track con-versions with precision.
IN-APP SDKs COLLECT THE DATA YOU NEED
CHARTBOOST POWER-UP REPORT DECEMBER 201713
Sources: Search Engine Land, Fortune Lords, Social Media Hat, Applause.
MOBILE GAMES
2.6 B 1.8 B 1.3 B 1.1 B
FACEBOOK YOUTUBE GOOGLE
REACH THE MOST ENGAGED MOBILE AUDIENCE AT SCALE
Mobile gaming is no longer a niche industry, it’s truly mainstream entertainment. In the U.S. alone, over half the population is now gaming on-the-go with no signs of slowing. What’s a
little less known is this audience is broad and highly engaged with significant disposable income (for more information, read the gaming audience report).
Here are some fun facts about the gaming app store category today:
• About 800,000 mobile games are offered on app stores• 75% of revenue generated from the iOS Apple App Store comes from mobile gaming• 62% Of smartphone owners install a game within a week of getting their phones• Users spend 43% of their mobile app time on games
All the above makes mobile gaming a huge distribution platform for marketers who want to es-tablish their brand.
CHARTBOOST POWER-UP REPORT DECEMBER 201714
DELIVER COMPELLING IN-APP CREATIVES
CHARTBOOST POWER-UP REPORT DECEMBER 201715
Share of Voice
Video Full-screen static Interactive
Conversions
View Completion
CPM
Share of Voice
Video Full-screen static Interactive
Conversions
View Completion
CPM
Share of Voice
Video Full-screen static Interactive
Conversions
View Completion
CPM
Share of Voice
Video Full-screen static Interactive
Conversions
View Completion
CPM
North America: Canada and US
Western Europe: UK, France & Germany
China
Latam: Colombia, Brazil, Mexico
As we’ve seen gaming is a highly engaging context that absorbs a big part of everyone’s time on their smartphones. That level of engagement, focus and
interactivity requires marketers to think differently about the advertising formats they should use to connect with the in-game audience.
34%
39%
42%
43%
3.25
2.65
3.34
2.91
1.34
1.04
0.97
1.39
2.85
2.61
3.80
3.13
80%
82%
85%
85%
15
10
7.5
2
4
2.5
2.7
1
10
6
1.5
1.5
42%
45%
47%
41%
24%
16%
11%
16%
* *
**
* Video contains a blend of rewarded and interstitial formats. Share of Voice: Impression ratio out of the total number of impressions.Conversion: Number of installs per 1000 impressions.View Completion: Ratio of users who get to 95% of the video.CPM: Advertising spend per 1000 impressions.
CHARTBOOST POWER-UP REPORT DECEMBER 201716
Pros:
Among all ad formats, video is clearly the consolidated star. There’s an expla-nation to that: 15 or 30 seconds is the perfect amount of time for marketers to encapsulate their value proposition, resulting in deep understanding of the advertised product.
Video has gone through some transformations since it became a de facto format for in-app. One of the most noticeable ones is that while it was born on landscape (with big detractors for its vertical form), the fact that users spend more than 90% of their time on their phones vertically, has driven the growth of vertical video. On Chartboost we’ve seen vertical videos convert over 20% better than landscape videos when the user is interacting with the app on portrait. Video can be found on interstitial placements (the ad pops up when the user gets to that placement) or opt-in (also called rewarded video)
• Highly immersive format• Good conversion rates • Opt-in video drives higher return
• Requires good user connectivity• Highly competitive/expensive• CPCV can make it difficult to stay
within CPI target
Cons:
WHAT DOES OPT-IN REALLY MEAN?
There’s a general misunderstanding about what opt-in (or rewarded) means. Some marketers are concerned to include rewarded video in their me-dia plans because they associated with buying incentivized traffic.
Here are few things that mobile advertisers should know:
• The ads are always triggered by the user.
• The user gets a reward for watching the video.
• Very high levels of engagement: on Chartboost, completion rates for opt-in video are over 90%.
• This form of video presents the opportunity for brands to make the ad more memorable and drive positive brand association.
VIDEO ADS
CHARTBOOST POWER-UP REPORT DECEMBER 201717
Interactive ads on mobile is in their early stages but are showing the signs of a rising star. While all the other ad units require a passive user behavior, this ad format leverages all the capabilities of smartphones and their touch screen, making the ad experience more dynamic and enjoyable. Interactive ads are built using html5 and are displayed in a webview frame
that is completely integrated in the app context. Gaming advertisers have naturally pioneered this ad unit (also called playable ads). At Chartboost, we are taking that creative knowledge from gaming to other verticals of the mo-bile landscape. Based on our experience, these are the most effective inter-active ad experiences:
• Highest engagement with brand content
• Product features can be demoed in real
• Suitable for any brand / product
• Higher production time & costs• Technical complexity• Specific format
1 - Mini Games who use gamification to transfer product features or brand-ed content into something playable. Depending on the app, several game mechanics can be used. Most common game mechanics are:
a. Puzzle / Match 3b. Hidden Objectsc. Slots / Wheel of Fortuned. Comparisons
2 - Animated Showcases, where the product is presented in a way that the user can interact with. That can be a 360 degree view of the product or a 3D model of the product who can be explored. Mostly used for physical products to see it from all sides.
3 - Interactive videos, with pre-recorded content and UI overlay. The user can interact with the video and see different chapter and have certain choices how the video is played out and ending.
INTERACTIVE/PLAYABLE ADS
Pros: Cons:
Chartboost Creative StudioTIPS FROM:
CHARTBOOST POWER-UP REPORT DECEMBER 201718
Full-screen
Full-screen static (or Static Interstitial) are visu-als that cover the entire screen. They appear at key moments during the user journey (level achieved, main menu, …) and require a user ac-tion: click button to close the ad or click on the call to action to go to the desired content.
Banners
While banners are the least favorite ad format by players and game developers, they can still serve a purpose. Banners drive big volumes, generally covering 1/5th of the screen and be-ing displayed at the top or bottom. They also include a “call to action” button to convert clicks into actions (download, subscription, purchase, etc.). Click through rate (CTR) is generally be-tween 0.8% to 1.5%.
• Large volumes, global footprint• Easy to produce• Good performance (CTR are
higher than 8%)
• Large volumes, global footprint• Available on all screens • Cheapest format
• It can be an intrusive format if used improperly
• It is competitive in certain verti-cals
• Small real estate to convey a value proposition
• “Banner blindness” syndrome
STATIC ADS
Pros:
Pros:
Cons:
Cons:
CHARTBOOST POWER-UP REPORT DECEMBER 201719
Smart TV Connected Cars
Augmented Reality
VirtualReality
Internet of ThingsSmart Phone
LaptopSmart Watch
PRESENT FUTURE
Programmatic is here to stay, but that doesn’t mean advertisers are facing a doomsday scenario where robots are taking over the world. To dominate programmatic, and more specifically mobile programmatic, there needs to be a balance between human creativity and efficient reach at an affordable price.
Mobile programmatic already represents over 50% of the total programmatic spend in 2017, and it’s only expected to grow. Smartphone have taken a central role in the lives of people, becoming a key support to work, communicate, shop, learn, inform ourselves and have fun. However, the user behavior is very different when they are on the mobile browsers versus in-app contexts. Marketers today, need to know the nuances between these behaviors so that they can establish their value proposition in an efficient way.
In-game context, specifically, has been the big unknown for brands, but as the face of gaming changes (becoming more ubiquitous, diverse and high quality), marketers are starting to grasp the value of its audience, developing high quality ad creatives that attract the gamer interest.
Creatives are becoming more immersive, with video and interactive ads being at the top and we believe that these ad units that today dominate the gaming appsphere will conquer the other verticals in the future. Advertisers across industries realize that these formats are more effective when it comes to conveying their product or services and mobile publishers are realizing that there’s no reason why in-app advertising should go against user experience.
Where is programmatic headed? Programmatic, in its broader sense, enables automation among many different platforms. While today, most of the inventory is on mobile, TV and desktop, as users embrace new mobile platforms (like connected cars, Virtual Reality, Augmented Reality and Internet Of Things) we are expecting the ad automation to follow these new platforms.
CONCLUSION
CHARTBOOST POWER-UP REPORT DECEMBER 201720
www.chartboost.com/ad-exchange
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