January 13, 2011 How To Get Started With Mobile Displayhosteddocs.ittoolbox.com/how-to-get_started_with... · Making Leaders Successful Every Day January 13, 2011 How To Get Started

Making Leaders Successful Every Day

January 13, 2011

How To Get Started With Mobile Displayby Melissa Parrishfor Interactive Marketing Professionals

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For Interactive Marketing Professionals

ExEcuTIvE SuMMaryDisplay marketers are eager to launch mobile campaigns. But they face challenges such as audience fragmentation, a chaotic vendor landscape, and myriad new technologies and devices. In order to navigate these challenges, we recommend that marketers focus on creating convenient mobile experiences by building mobile display campaigns that are simple, immediate, and contextually relevant to the section of their audience most likely to use them.

TablE oF conTEnTSMobile Display Marketers Are Burdened With Implementation Challenges

Immediacy, Simplicity, And Context Should Guide Mobile Marketers

Selecting The Right Vendors

rEcoMMEnDaTIonS

How To Make The Most Of Mobile Display Advertising

Supplemental Material

noTES & rESourcESForrester interviewed 16 vendors and user companies and used data from the north american Technographics® online benchmark Survey, Q2 2010 (uS) and the May 2010 uS Interactive Marketing online Survey.

Related Research Documents“Making The Most of Mobile Search Marketing”november 5, 2010

“uS Mobile Search and Display Forecast, 2010 To 2015”october 27, 2010

“The PoST Method: a Systematic approach To Mobile Strategy”april 9, 2009

January 13, 2011

How To Get Started With Mobile Displayby Melissa Parrishwith Sarah Glass and Jennifer Wise

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http://www.forrester.com/go?docid=57644&src=58256pdf





© 2011, Forrester research, Inc. reproduction ProhibitedJanuary 13, 2011

How To Get Started With Mobile Display For Interactive Marketing Professionals

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MOBILE DISPLAY MARkETERS ARE BURDENED WITH IMPLEMENTATION CHALLENGES

Just more than one-third — 35% — of interactive marketers say they have implemented or plan to implement mobile display advertising to connect with the 32% of US online adults who are already browsing and using apps on their mobile phones (see Figure 1).1 We studied the current state of mobile display and found that most interactive marketers are befuddled with numerous options, technicalities, and obstacles involved with mobile display marketing. These include:

· Multiple interface options. The existence of three interfaces — Web, apps, and text messages — not only fragments audiences, but it also presents marketers with executional complexity. Mobile display comes in familiar formats like video and graphical banners for mobile Web pages, but when these traditional formats are delivered via mobile Web or mobile apps, they require new delivery systems. Display is also showing up in permission-based SMS and MMS as text taglines that link to more content. In the app sphere, marketers can implement standard display options, sponsor apps like games, or even create their own branded apps (see Figure 2).2

· Limited tracking capabilities. Smartphones may seem like mini computers, but they don’t track data like computers. Because of fragmentation — cookie support varies widely by device and third-party cookie support — a virtually universal way to track consumer online is limited . Many operators also use transcoding — a conversion process — to translate non-mobile-optimized sites to mobile screens.3 While these tools are great for changing headers and removing large content for better viewing, they also remove tracking codes. These and other technical difficulties make gaining accurate mobile analytics extremely difficult.

Figure 1 Interactive Marketers catch up To Mobile Technology adoption

Source: Forrester Research, Inc.58256

Mobile advertising(display)

Mobile search

SMS/MMS

Mobile Web site(WAP/.Mobi/etc.)

Mobile video

Mobile coupons

Mobile gaming

14%

14%

12%

12%

9%

8%

21%

24%

21%

23%

17%

15%

9%

65%

62%

67%

65%

74%

77%

87%4%

Base: US interactive marketers

“Of the following emerging marketing channels and tactics, please indicate whichyou are currently using, piloting, or expect to pilot in the next 12 months”

Source: May 2010 US Interactive Marketing Online Survey

Currently implementing or piloting Plan to pilot in the next 12 months No plans to use

© 2011, Forrester research, Inc. reproduction Prohibited January 13, 2011


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Figure 2 Mobile Display advertising Has Multiple Interfaces and Formats


Image source: InMobi, Microsoft, Google Mobile blog, Crisp Media, and SinglePoint

Traditional banner ads appearin apps and mobile Web sites.

Video display can auto-playbefore loading content.

Self-contained rich media experiences are availablein apps as well as in mobile websites. Some featuressuch as camera and address book access are onlyavailable in-app.

SMS text ads can be targeted tosubscribers. In this example, CNBCoffered free ringtones to their SMSsubscriber list.



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· Device fragmentation. There are thousands of different devices in use today, and they all have slightly different screen sizes, tracking capabilities, and app stores. To accommodate the size and resolution requirements of various devices, marketers must produce dozens of versions of ads. Once the campaign has run, analytical comparisons are difficult because data is often missing or simply impossible to compare.

· A cornucopia of vendors. Multiple mobile display interface options result in a plethora of mobile vendors and agencies that provide tools and services that overlap with one another. With the rapid pace of startups opening or closing their doors and traditional online players jumping into the fray, figuring out who’s who is difficult. Forrester plans to help marketers make these decisions with our upcoming vendor landscape. Until then, we’ve listed the categories of vendors in the space today and some example companies in the figure below.

IMMEDIACY, SIMPLICITY, AND CONTExT SHOULD GUIDE MOBILE MARkETERS

We recently published a framework for mobile search advertising that asks marketers to implement campaigns that incorporate immediacy, simplicity, and context.4 These rules also apply to mobile display (see Figure 3). For display marketers this means focusing on:

· Simple design standards. Mobile screens are much smaller than PC screens, which causes marketers and agencies to rethink their display creative. Mobile banners that are laden with 6-point text and busy graphics are unsuccessful because they just aren’t legible. For the A1 launch, Audi and GoldSpot Media created an immersive ad unit using simple animation, unobtrusive logos, and minimal text for their calls to action.5

· Timely, relevant messages. Mobile users are looking for contextual information that’s relevant to what’s going on in the world around them. A new ilk of mobile marketing vendors provide permission-based and contextual marketing through opt-in services. For example, Playboy, in partnership with opt-in vendor Xtify, designed an app to deliver nightlife-oriented offers to mobile users’ handsets when they are in proximity of clubs, bars, or restaurants recommended by Playboy’s editors (see Figure 4).

· Targeting niche audiences. Mobile’s targeting capabilities make it an ideal tool for reaching niche audiences. For example, carriers partner with some app developers and ad networks to deliver on-deck advertising that is targeted by basic demographics with accuracy.6 Additionally, mobile offers location-based technologies that allow location targeting with greater precision and utility than PCs. WHERE, a mobile ad network with a miles-to-meters targeting approach, targeted ads for Dunkin’ Donuts with text making mobile users aware of the nearest location (see Figure 5).



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Figure 3 Mobile Display advertisements Should Incorporate Immediacy, Simplicity, and context


Immediacy

Framework

Does the brand give aconsumer what she needs —right now?

Simplicity comes in two forms:1) Is the layout easy to digest

on a small screen?2) Is the process to complete a

task easy to understand andquick?

Is content relevant to thelocation (physical or virtual),search history, mobile Internetbehavior, or demographics?

Simplicity

Context

Clear calls to actioninclude finding a dealer, seeingmore details about the car, andwatching a video.

The ad includesminimal text and clear calls toaction. Intuitive slide showfeature makes it easy to flipthrough more pictures.

Context was provided byfocusing delivery on peoplewho were interested inpurchasing a car. In the futureForrester expects that contextwill be delivered on mobiledevices with elements likelocation and search history.

Definition Example

Image source: GoldSpot Media



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Figure 4 location-relevant Display Provides Timely Messaging and unique Targeting


Image source: WHERE, Xtify

In-app and mobile Web banner ads can showthe address and distance of the nearest retaillocation like this Dunkin’ Donuts ad.They can also provide contextual content likePlayboy’s Scout app, which pushes notificationsto users’ handset when they are within range ofevents, clubs, and bars that are recommendedby Playboy editors.

Location-based display ad



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Figure 5 a Snapshot of vendors In The Mobile Display Marketing Space

SELECTING THE RIGHT VENDORS

With so many vendors to pick from, it’s a task to find and select the right one. But there are ways to weed out the good from the bad apples. Remember that:

· Experience counts. A vendor that offers a product is not the same as one that has experience delivering that product. For example, two popular mobile ad networks, Greystripe and InMobi, have vastly different areas of expertise; Greystripe focuses on branding rich media campaigns while InMobi delivers performance-based text and banner ads on a global scale. Select vendors that are familiar with your industry or have worked with brands requiring similar advertising goals. If your current online display vendor understands your company’s needs and makes a move into the mobile space, give it the opportunity to expand with your brand with a rigorously monitored one-off test budget.

· Results matter. The promise of mobile has created an abundance of mobile enthusiasts, but the fact is that mobile marketing is still in its infancy. Mature marketers must test small and only reinvest in vendors when pre-established goals, like increased brand lift or conversions, actually occur. Steve Madden’s President of Ecommerce and Customer Experience Andrew Koven is notable for focusing on metrics and sharing them with the industry. In six months Steve Madden has grown its mobile commerce sales to half a million dollars through SMS


Category

Mobile ad exchanges MobClix, Opera A technology platform for buying andselling online ad impressions

Mobile ad networks Jumptap, BuzzCity, WHERE, InMobi,Greystripe, Millennial Media, Apple iAd,iVdopia, Microsoft AdCenter, ADTECHMobile (AOL), Yahoo! AdvertisingSolutions, Google AdSense

Currently the largest category of vendorsin the mobile advertising space, adnetworks connect advertisers to mobileWeb sites and/or mobile apps that hostadvertisements. Many target specific andniche audiences.

Mobile ad servers Ringleader Digital Spark Server, CrispMedia, GoldSpot Media, Google AdMob,Tremor Media, Brightroll, OpenX,DoubleClick Mobile

Many online ad servers already serve adsto mobile Web sites. Most ad servers focuson standard banner formats, video, or richmedia. All provide technology that allowsmarketers and publishers to serve and buyads. They also monitor the progress servedads.

Mobile advertisinganalytics

Media Armor, Bango, Omniture, AtlasAnalytics, Google Analytics, CoremetricsExplore

App and mobile Web analytics companiesprovide insight into campaigns acrossplacements.

Ad networkaggregators

Smaato, TapJoy, Burstly, Ringleader DigitalNetwork Manager

Ad network aggregators manage multiplead networks.

Example providers Capabilities



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and MMS efforts.7 When asked why it hasn’t started into mobile display, Koven gave the right answer, “This was the right strategy for us to engage with our customers, and in order to track the success of our efforts, we made the strategic decision to focus on one method at a time.”

To help you understand the mobile display marketing vendor space, we’ve created a graphic that outlines the big categories of today’s vendors. The vendors included are examples only and have not undergone thorough vetting for particular capabilities or market share.

r E c o M M E n D a T I o n S

HOW TO MAkE THE MOST OF MOBILE DISPLAY ADVERTISING

Similar to mobile search, we think mobile display will be an important tool for marketers. So how can display marketers translate their display strategies to mobile? We recommend proceeding with the following steps:

· Provide value-added advertising. Mobile display advertising can provide much more value than pretty pictures. Display ads with information like directions or phone numbers frequently show higher click-through rates than ads without these value-added components.8 consumers will soon expect contextually relevant advertising so display marketers must be prepared to go beyond beautifully branded landing pages.

· Anticipate and take advantage of new mobile ad formats. consumers are highly responsive to mobile ads, more responsive than to online ads.9 Some of this increased engagement is due to the pure novelty of mobile ads. Marketers who take advantage of new rich media mobile ad formats will see benefits in the form of increased brand awareness and click-thru rates.10 but don’t expect this automatic lift to last for long as consumers become used to mobile advertising.

· Rethink mobile analytics. using traditional metrics to measure mobile is ineffective due to the combination of device fragmentation, lack of definitions, and differing consumer interactions. For example, the metric “Hover over” doesn’t exist because mobile phones don’t have a mouse with which to hover. Mobile startups like Media armor are providing thought leadership in the space, creating new methodologies that focus on incrementality rather than accounting-based methodologies inherent in current attribution techniques. but today’s analytics startups will battle with traditional analytics providers that marketers are comfortable with and that tout a cross-channel view. The landscape will see continual turnover, a la Google’s adMob and apple’s Quattro Wireless, until the technology allows for multichannel deployment and analytics that make sense for both online and mobile.



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SUPPLEMENTAL MATERIAL

Methodology

Forrester conducted an online survey fielded in April 2010 of 26,913 US online users ages 18 to 88. For results based on a randomly chosen sample of this size (N = 26,913), there is 95% confidence that the results have a statistical precision of plus or minus 1.4% of what they would be if the entire population of US online individuals ages 18 and older had been surveyed. Forrester weighted the data by age, gender, income, broadband adoption, and region to demographically represent the adult US online population. The survey sample size, when weighted, was 26,749. (Note: Weighted sample sizes can be different from the actual number of respondents to account for individuals generally underrepresented in online panels.) Please note that this was an online survey. Respondents who participate in online surveys have in general more experience with the Internet and feel more comfortable transacting online. The data is weighted to be representative for the total online population on the weighting targets mentioned, but this sample bias may produce results that differ from Forrester’s offline benchmark survey. The sample was drawn from members of MarketTools’ online panel, and respondents were motivated by receiving points that could be redeemed for a reward. The sample provided by MarketTools is not a random sample. While individuals have been randomly sampled from MarketTools’ panel for this particular survey, they have previously chosen to take part in the MarketTools online panel.

Companies Interviewed For This Document

2adpro

ADTECH (AOL)

Crisp Media

GoldSpot Media

Google

Greystripe

Hyperlocal Media

iCrossing

InMobi

Jumptap

Media Armor

Microsoft

Mobile Marketing Association

Mogreet

SinglePoint

Steve Madden

WHERE

Xtify



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ENDNOTES1 For data on consumer usage of the mobile Internet and mobile apps, see the November 5, 2010, “Making

The Most of Mobile Search Marketing” report, and pay particular attention to Figure 1.

2 In his article, “Mobile Display Advertising: Not Just Tiny Banners” Michael Nevins, senior partner at Breakpoint Digital, outlines multiple formats of mobile display advertising to date. Source: Michael Nevins,

“Mobile Display Advertising: Not Just Tiny Banners,” AdExchanger.com, October 20, 2010, http://www.adexchanger.com/now-serving-mobile/mobile-display-advertising/.

3 If you’re unfamiliar with the term transcoding, it is the conversion of “a Web page for display on any size screen. Transcoding services rearrange and reformat the elements for smaller screens such as on PDAs and cell phones.” Source: PCMag.com (http://www.pcmag.com/encyclopedia_term/0,2542,t=transcode&i=53082,00.asp).

4 Forrester has identified three criteria that predict whether users will migrate away from the PC and toward cell phones for mobile services. See the November 5, 2010, “Making The Most of Mobile Search Marketing” report.

5 To learn more about specific aspect ratios and technicalities of mobile display design standards, check the Mobile Marketing Association’s “Mobile Advertising Guidelines,” September 2009 (http://www.mmaglobal.com/mobileadvertising.pdf).

6 Sprint is an example of a carrier that has shared demographic and analytics data with startups, in this case, mobile analytics company Bango. Source: Tony Dennis, “Sprint Shares Demographic Data With Developers,” GoMo News, October 27, 2010 (http://www.gomonews.com/sprint-shares-demographic-data-with-developers/).

7 To see how Steve Madden invested early in mobile, see the June 22, 2010, “Case Study: Steve Madden Invests In Mobile Fundamentals” report. An update on the progress of its campaign is available on Mobile Marketer. Source: Dan Butcher, “Steve Madden posts half-million dollars in mcommerce sales in 6 months,” Mobile Marketer, October 27, 2010 (http://www.mobilemarketer.com/cms/news/commerce/7902.html).

8 Consumer click-through ads with click-to-call or click for directions perform between 6% and 8% better than search ads without these features. Source: Vadim Lavrusik, “Google: Mobile Search and Ads Growing Rapidly in 2010,” Mashable, July 20, 2010 (http://mashable.com/2010/07/20/google-mobile-search-and-ads-growing-rapidly-in-2010/).

9 Slide 27 of the referenced report shows that mobile is more effective than online across multiple metrics including unaided awareness and purchase intent. Source: Joy Liuzzo, “InsightExpress’ Mobile Consumer Research,” April 2010 (http://www.insightexpress.com/PDFs/InsightExpress_Mobile%20Consumer%20Research_April2010.pdf).

10 Mobile ad formats that are big and flashy seem to attract higher click-thru rates than standard ads. Source: Cian, “Big flashy mobile ads get more clicks than plain banners,” GoMo News, September 30, 2010 (http://www.gomonews.com/big-flashy-mobile-ads-get-better-ctr-than-static-banners). It is assumed that consumers will eventually tune out or respond negatively to these ads. Source: Niraj Sheth, “Newest Cellphone Ads Crave Entire Screen,” The Wall Street Journal, August 6, 2010 (http://online.wsj.com/article/SB10001424052748704657504575411644004713662.html?mod=WSJ_hpp_RIGHTTopCarousel_4).






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