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Fresh Digital Group
                                 Why Mobile Advertising
                                 Matters




We Strategize. We Execute. We Deliver. On All Screens.
It’s the 90’s All Over Again
We are in the same place with
mobile today as we were with the
internet in the late 1990s –
consumer adoption is widespread,
the space has yet to hit its peak,
and some brands are still trailing
behind.
Some brands offer an amazing
mobile experience, and others
haven’t gotten on board yet.




      We Strategize. We Execute. We Deliver. On All Screens.
                                                               2
Mobile Strategy
If your brand doesn’t yet have a mobile
strategy, there’s good news and bad
news.
The bad news- you need to catch up to
your customers and show them that
you can meet them where they are,
while being relevant to their needs.
The good news- odds are that your
competitors aren’t on mobile yet, either.
But the gap is closing.




      We Strategize. We Execute. We Deliver. On All Screens.
                                                               3
eBusiness and Mobile Strategy
Forrester Research
interviewed 65 eBusiness
professionals and found
that:
• 11% have no mobile
  strategy                                                      No mobile strategy

• 11% have had a defined                                        Defined mobile strategy,
  mobile strategy for under                                     less than one year
                                                                Defined mobile strategy,
  a year                                                        more than one year
• 38% have had a defined                                        Beginning to conceive a
                                                                mobile strategy
  mobile strategy for over a
  year
• 40% are in the beginning
  stages of their mobile
  strategies




       We Strategize. We Execute. We Deliver. On All Screens.
                                                                                     4
The Benefits of Mobile
The mobile channel offers advertisers
significant benefits. First of all, the
mobile phone is one of the most
personal devices that many consumers
own, and exclusively use.
Browsing, texting and calling are
usually only done by the phone's user,
so advertisers can be confident that all
clickthroughs from that handset have
come from a specific individual; unlike
clickthroughs from a desktop PC or
laptop.




               We Strategize. We Execute. We Deliver. On All Screens.
                                                                        5
Smartphone Penetration Rates




Mobile also offers advertisers unprecedented reach – penetration rates in
almost all developed countries have surpassed 100%. Smartphone
penetration is also high – 58% of North American mobile phones were
smartphones by the end of 2011. Advertisers also see higher response
rates on mobile than on desktop campaigns.



               We Strategize. We Execute. We Deliver. On All Screens.
                                                                            6
Focused Messages
The mobile device offers advertisers:
• the ability to focus on consumers
    in their target demographic, and
    who are close to a location where
    they can purchase the item.
• the opportunity to deliver richer
    ads to consumers.
Rich media ads are more engaging
than banner ads and drive higher
clickthrough rates. Rich media ads
also allow developers to take
advantage of device functions such
as its GPS or accelerometer. HTML5
enables advertisers to deliver an app-
like experience without forcing the
user to leave the app.


               We Strategize. We Execute. We Deliver. On All Screens.
                                                                        7
Apps and Advertising
Apps themselves can even be used for
advertising. Some brands have
promoted specific products with
games; and others have created
mobile social networks on paid apps.
Branded apps can also be highly
successful when they provide
customers with value. The Nike+ social
network has over 6 million subscribers,
who are shown Nike advertising
whenever they use the app to log
training sessions or set personal goals.




               We Strategize. We Execute. We Deliver. On All Screens.
                                                                        8
In-App Ads
In-app ads are a powerful and
increasingly essential way of reaching
consumers, given the growing demand
for free and low-priced apps. Creating
immersive and entertaining brand
experiences for the consumer is still
critical for marketers wanting to
capitalize on the growth in app usage.
The advertiser must create an
experience that will offer the consumer
something of equal or greater value
than that offered by the app.




               We Strategize. We Execute. We Deliver. On All Screens.
                                                                        9
Mobile Ad Spend Keeps Growing
Brands have dramatically
increased their mobile
advertising spends over the past
few years as brands have
realized the effectiveness of
mobile ads. Consumers are also
purchasing an ever increasing
amount of goods via mobile. In
2011, 7% of eBay's total gross
merchandise volume was on
mobile, and its apps had been
downloaded 70 million times.




              We Strategize. We Execute. We Deliver. On All Screens.
                                                                       1
                                                                       0
The Future of Mobile Ad Spend
Mobile ad spend is projected
to triple by 2017, driven by
continuing growth in in-app
advertising spend. Spend on
in-app advertising itself is
expected to increase from
$2.4 billion in 2012 to over $7
billion in 2015.




               We Strategize. We Execute. We Deliver. On All Screens.
                                                                        1
                                                                        1
World’s Most Integrated Medium
• Mobile is designed to be the world's most integrated marketing medium.
  Mobile devices are always on and accessed everywhere; and the
  medium's portability makes it unlike any other form of media.
• Mobile marketing has limitless potential to contribute to and build on
  other marketing initiatives.
• Mobile is great for branding, thanks to deep engagement, minimal ad
  clutter, and new and constantly evolving advertising experiences.
• However, far more brands have yet to embrace mobile. Even some
  brands with a mobile marketing strategy may not have a mobile-
  optimized website.
• Why advertise on mobile if consumers can't purchase the product on the
  same device where they saw the ad?




               We Strategize. We Execute. We Deliver. On All Screens.
                                                                           1
                                                                           2
Effective Mobile Marketing Strategies
The time is now for marketers to
incorporate mobile into their
advertising campaigns.
Some marketers are having much
success engaging mobile users, and
driving interest and sales, with their
brands; and with the right strategies,
you can be one of them.
• Social Calls to Action
• Full-page ads
• Contextual ads




               We Strategize. We Execute. We Deliver. On All Screens.
                                                                        1
                                                                        3
Effective Mobile Marketing Strategies
Social calls to action
Mobile ads that incorporate social
connectivity options perform better
than other ads.
Including a social call to action with full
page ads boosts consumer interactivity
with that ad by 57 percent. One
marketer saw a 75 percent increase in
banner engagement for banner ads by
adding a social media component.
Mobile users are generally much more
social than other consumers, A recent
survey found that 67.7 percent of
mobile users use Facebook at least
once daily compared with 54 percent of
Facebook’s overall user base that uses
it daily.



                 We Strategize. We Execute. We Deliver. On All Screens.
                                                                          1
                                                                          4
Effective Mobile Marketing Strategies
Full-page ads
Sometimes bigger is better when
monetizing mobile applications.
Mobile ad network Greystripe found
that its full-screen mobile ads earn
developers and publishers five times
more than banner ads.
They found that full-screen ads,
delivered as interstitials, are a positive
experience for users because opting
in is easy, and the ads are delivered at
a transition point that prevents them
from disrupting play.




                We Strategize. We Execute. We Deliver. On All Screens.
                                                                         1
                                                                         5
Effective Mobile Marketing Strategies
Contextual ads
Some marketers are focusing on aligning
ads so that they are relevant to the
editorial content a user is viewing.
Contextual placement has been shown to
drive an increase in click-through rates
for online display ads. However, the
increase is even greater when ads are
delivered contextually in mobile,.
On average, mobile ads deployed
contextually enjoyed a five times higher
click-through rate than the average click-
through rate for mobile display ads.




                We Strategize. We Execute. We Deliver. On All Screens.
                                                                         1
                                                                         6
3 Key Delivery Methods
Forrester found that eBusiness professionals offer services through three
key delivery methods:
  Mobile Websites.             SMS Marketing.                  Mobile Apps.
  More than half of            SMS text                        43% of eBusiness
  eBusiness                    messaging is still              professionals offer
  professionals have           the most commonly               an iPhone app, with
  a mobile-optimized           used mobile data                another 50%
  website. The                 service. In the US,             planning to offer
  percentage of US             the proportion of               one.
  adults who access            online adults with              Only 24% have
  the mobile Web               mobile phones who               apps for other
  daily rose from 4%           use SMS at least                platforms, but 60%
  in 2007 to 13% in            weekly jumped                   plan to introduce
  2010.                        from 30% in 2007                them.
                               to 56% in 2010.




      We Strategize. We Execute. We Deliver. On All Screens.
                                                                                     1
                                                                                     7
Where to Begin?
Designing and implementing a mobile strategy can be distilled to four steps:


                             Planning your Strategy


                       Creating an Engaging Experience


                             Marketing your Strategy


                            Analyzing the Campaign




       We Strategize. We Execute. We Deliver. On All Screens.
                                                                        1
                                                                        8
Planning Your Strategy
Good questions to ask when planning
your mobile strategy include:
- Who is the intended audience?                                 Audience
- In what context will consumers look
for you?
- What kind of technology will be
needed (mobile creative, optimized             Measurement
                                                                            Context
landing pages, tracking code)?
- What marketing assets are
appropriate for the audience/initiative
(rich media, local search listing, click-to-
call, iAd)?
- How will performance be measured,                   Assets          Technology
and with what Key Performance
Indicators (KPIs)?




       We Strategize. We Execute. We Deliver. On All Screens.
                                                                                   1
                                                                                   9
Creating an Engaging Experience
Once the mobile strategy has been planned, brands should create a rich and engaging
experience. Mobile rich media units offer shopping capabilities, in-ad videos, games and
more.




At a minimum, mobile content should be accessible, load quickly, and context-appropriate –
balancing functionality with design can be very powerful for brands launching mobile
projects to help drive conversions or engagement.




       We Strategize. We Execute. We Deliver. On All Screens.
                                                                                       2
                                                                                       0
More than a Single Channel
Coupons can be
delivered via text
messages or QR
codes. Mobile display
ads can promote, and
link to applications.
Mobile social
marketing programs
can include video and
mobile search; and run
in conjunction with
other promotions.




               We Strategize. We Execute. We Deliver. On All Screens.
                                                                        2
                                                                        1
Any Vertical, Any Goal
Mobile marketing is important in
any vertical, with any goal.
Packaged goods makers can use
mobile display and video ads for
branding, deliver coupons via
SMS, and offer consumers more
information via applications.
Retailers can also use mobile in
various ways, whether they're
launching a new product line or
trying to increase in-store
business.




              We Strategize. We Execute. We Deliver. On All Screens.
                                                                       2
                                                                       2
Marketing the Strategy
After designing and creating
your app or mobile website,
the next step is to drive user
awareness and interaction.
Mobile ad units enable
brands to reach consumers
throughout the day with a
compelling experience
capable of encouraging them
to interact further.




       We Strategize. We Execute. We Deliver. On All Screens.
                                                                2
                                                                3
Marketing the Strategy
The right types of ads
and calls-to-action
should be considered
during the planning
process, but
incremental budgets
are recommended for
mobile marketing in
order to create rich
features tailored for
mobile users. These
mobile ads can be
analyzed
independently for a
clearer understanding
of their performance.




       We Strategize. We Execute. We Deliver. On All Screens.
                                                                2
                                                                4
Analyzing the Campaign
Analyzing campaign performance is
very important.
After carefully planning, creating
and marketing mobile initiatives,
understanding performance metrics
will empower brands with the
information needed to build
successful future campaigns.




       We Strategize. We Execute. We Deliver. On All Screens.
                                                                2
                                                                5
Analyzing the Campaign
Collecting analytics information from
apps, ads, and other assets can be
difficult, but having this information
available for analysis is critical for future
mobile campaigns.
A number of different analytics suites
are available to help obtain this traffic
data, such as Google Analytics,
depending on the type of information
needed.




        We Strategize. We Execute. We Deliver. On All Screens.
                                                                 2
                                                                 6
Summary
•   Half of brands either have no mobile strategy, or have a mobile strategy in
    the planning stages.
•   54% of mobile phones in North America are smartphones.
•   Mobile ad spend is expected to reach $7 billion in 2015
•   Marketers are successfully reaching mobile consumers with social calls to
    action, full-page ads and contextual ads.
•   There are four steps to designing and implementing a mobile strategy.
•   Analyzing mobile advertising campaigns is supremely important, and can
    be done with a variety of analytics tools.




                We Strategize. We Execute. We Deliver. On All Screens.
                                                                            2
                                                                            7
Fresh Digital Group
                             111 John St, 2nd Fl.
                            New York, NY 10038
                        www.freshdigitalgroup.com




Fresh Digital Group

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Why Mobile Advertising Matters

  • 1. Fresh Digital Group Why Mobile Advertising Matters We Strategize. We Execute. We Deliver. On All Screens.
  • 2. It’s the 90’s All Over Again We are in the same place with mobile today as we were with the internet in the late 1990s – consumer adoption is widespread, the space has yet to hit its peak, and some brands are still trailing behind. Some brands offer an amazing mobile experience, and others haven’t gotten on board yet. We Strategize. We Execute. We Deliver. On All Screens. 2
  • 3. Mobile Strategy If your brand doesn’t yet have a mobile strategy, there’s good news and bad news. The bad news- you need to catch up to your customers and show them that you can meet them where they are, while being relevant to their needs. The good news- odds are that your competitors aren’t on mobile yet, either. But the gap is closing. We Strategize. We Execute. We Deliver. On All Screens. 3
  • 4. eBusiness and Mobile Strategy Forrester Research interviewed 65 eBusiness professionals and found that: • 11% have no mobile strategy No mobile strategy • 11% have had a defined Defined mobile strategy, mobile strategy for under less than one year Defined mobile strategy, a year more than one year • 38% have had a defined Beginning to conceive a mobile strategy mobile strategy for over a year • 40% are in the beginning stages of their mobile strategies We Strategize. We Execute. We Deliver. On All Screens. 4
  • 5. The Benefits of Mobile The mobile channel offers advertisers significant benefits. First of all, the mobile phone is one of the most personal devices that many consumers own, and exclusively use. Browsing, texting and calling are usually only done by the phone's user, so advertisers can be confident that all clickthroughs from that handset have come from a specific individual; unlike clickthroughs from a desktop PC or laptop. We Strategize. We Execute. We Deliver. On All Screens. 5
  • 6. Smartphone Penetration Rates Mobile also offers advertisers unprecedented reach – penetration rates in almost all developed countries have surpassed 100%. Smartphone penetration is also high – 58% of North American mobile phones were smartphones by the end of 2011. Advertisers also see higher response rates on mobile than on desktop campaigns. We Strategize. We Execute. We Deliver. On All Screens. 6
  • 7. Focused Messages The mobile device offers advertisers: • the ability to focus on consumers in their target demographic, and who are close to a location where they can purchase the item. • the opportunity to deliver richer ads to consumers. Rich media ads are more engaging than banner ads and drive higher clickthrough rates. Rich media ads also allow developers to take advantage of device functions such as its GPS or accelerometer. HTML5 enables advertisers to deliver an app- like experience without forcing the user to leave the app. We Strategize. We Execute. We Deliver. On All Screens. 7
  • 8. Apps and Advertising Apps themselves can even be used for advertising. Some brands have promoted specific products with games; and others have created mobile social networks on paid apps. Branded apps can also be highly successful when they provide customers with value. The Nike+ social network has over 6 million subscribers, who are shown Nike advertising whenever they use the app to log training sessions or set personal goals. We Strategize. We Execute. We Deliver. On All Screens. 8
  • 9. In-App Ads In-app ads are a powerful and increasingly essential way of reaching consumers, given the growing demand for free and low-priced apps. Creating immersive and entertaining brand experiences for the consumer is still critical for marketers wanting to capitalize on the growth in app usage. The advertiser must create an experience that will offer the consumer something of equal or greater value than that offered by the app. We Strategize. We Execute. We Deliver. On All Screens. 9
  • 10. Mobile Ad Spend Keeps Growing Brands have dramatically increased their mobile advertising spends over the past few years as brands have realized the effectiveness of mobile ads. Consumers are also purchasing an ever increasing amount of goods via mobile. In 2011, 7% of eBay's total gross merchandise volume was on mobile, and its apps had been downloaded 70 million times. We Strategize. We Execute. We Deliver. On All Screens. 1 0
  • 11. The Future of Mobile Ad Spend Mobile ad spend is projected to triple by 2017, driven by continuing growth in in-app advertising spend. Spend on in-app advertising itself is expected to increase from $2.4 billion in 2012 to over $7 billion in 2015. We Strategize. We Execute. We Deliver. On All Screens. 1 1
  • 12. World’s Most Integrated Medium • Mobile is designed to be the world's most integrated marketing medium. Mobile devices are always on and accessed everywhere; and the medium's portability makes it unlike any other form of media. • Mobile marketing has limitless potential to contribute to and build on other marketing initiatives. • Mobile is great for branding, thanks to deep engagement, minimal ad clutter, and new and constantly evolving advertising experiences. • However, far more brands have yet to embrace mobile. Even some brands with a mobile marketing strategy may not have a mobile- optimized website. • Why advertise on mobile if consumers can't purchase the product on the same device where they saw the ad? We Strategize. We Execute. We Deliver. On All Screens. 1 2
  • 13. Effective Mobile Marketing Strategies The time is now for marketers to incorporate mobile into their advertising campaigns. Some marketers are having much success engaging mobile users, and driving interest and sales, with their brands; and with the right strategies, you can be one of them. • Social Calls to Action • Full-page ads • Contextual ads We Strategize. We Execute. We Deliver. On All Screens. 1 3
  • 14. Effective Mobile Marketing Strategies Social calls to action Mobile ads that incorporate social connectivity options perform better than other ads. Including a social call to action with full page ads boosts consumer interactivity with that ad by 57 percent. One marketer saw a 75 percent increase in banner engagement for banner ads by adding a social media component. Mobile users are generally much more social than other consumers, A recent survey found that 67.7 percent of mobile users use Facebook at least once daily compared with 54 percent of Facebook’s overall user base that uses it daily. We Strategize. We Execute. We Deliver. On All Screens. 1 4
  • 15. Effective Mobile Marketing Strategies Full-page ads Sometimes bigger is better when monetizing mobile applications. Mobile ad network Greystripe found that its full-screen mobile ads earn developers and publishers five times more than banner ads. They found that full-screen ads, delivered as interstitials, are a positive experience for users because opting in is easy, and the ads are delivered at a transition point that prevents them from disrupting play. We Strategize. We Execute. We Deliver. On All Screens. 1 5
  • 16. Effective Mobile Marketing Strategies Contextual ads Some marketers are focusing on aligning ads so that they are relevant to the editorial content a user is viewing. Contextual placement has been shown to drive an increase in click-through rates for online display ads. However, the increase is even greater when ads are delivered contextually in mobile,. On average, mobile ads deployed contextually enjoyed a five times higher click-through rate than the average click- through rate for mobile display ads. We Strategize. We Execute. We Deliver. On All Screens. 1 6
  • 17. 3 Key Delivery Methods Forrester found that eBusiness professionals offer services through three key delivery methods: Mobile Websites. SMS Marketing. Mobile Apps. More than half of SMS text 43% of eBusiness eBusiness messaging is still professionals offer professionals have the most commonly an iPhone app, with a mobile-optimized used mobile data another 50% website. The service. In the US, planning to offer percentage of US the proportion of one. adults who access online adults with Only 24% have the mobile Web mobile phones who apps for other daily rose from 4% use SMS at least platforms, but 60% in 2007 to 13% in weekly jumped plan to introduce 2010. from 30% in 2007 them. to 56% in 2010. We Strategize. We Execute. We Deliver. On All Screens. 1 7
  • 18. Where to Begin? Designing and implementing a mobile strategy can be distilled to four steps: Planning your Strategy Creating an Engaging Experience Marketing your Strategy Analyzing the Campaign We Strategize. We Execute. We Deliver. On All Screens. 1 8
  • 19. Planning Your Strategy Good questions to ask when planning your mobile strategy include: - Who is the intended audience? Audience - In what context will consumers look for you? - What kind of technology will be needed (mobile creative, optimized Measurement Context landing pages, tracking code)? - What marketing assets are appropriate for the audience/initiative (rich media, local search listing, click-to- call, iAd)? - How will performance be measured, Assets Technology and with what Key Performance Indicators (KPIs)? We Strategize. We Execute. We Deliver. On All Screens. 1 9
  • 20. Creating an Engaging Experience Once the mobile strategy has been planned, brands should create a rich and engaging experience. Mobile rich media units offer shopping capabilities, in-ad videos, games and more. At a minimum, mobile content should be accessible, load quickly, and context-appropriate – balancing functionality with design can be very powerful for brands launching mobile projects to help drive conversions or engagement. We Strategize. We Execute. We Deliver. On All Screens. 2 0
  • 21. More than a Single Channel Coupons can be delivered via text messages or QR codes. Mobile display ads can promote, and link to applications. Mobile social marketing programs can include video and mobile search; and run in conjunction with other promotions. We Strategize. We Execute. We Deliver. On All Screens. 2 1
  • 22. Any Vertical, Any Goal Mobile marketing is important in any vertical, with any goal. Packaged goods makers can use mobile display and video ads for branding, deliver coupons via SMS, and offer consumers more information via applications. Retailers can also use mobile in various ways, whether they're launching a new product line or trying to increase in-store business. We Strategize. We Execute. We Deliver. On All Screens. 2 2
  • 23. Marketing the Strategy After designing and creating your app or mobile website, the next step is to drive user awareness and interaction. Mobile ad units enable brands to reach consumers throughout the day with a compelling experience capable of encouraging them to interact further. We Strategize. We Execute. We Deliver. On All Screens. 2 3
  • 24. Marketing the Strategy The right types of ads and calls-to-action should be considered during the planning process, but incremental budgets are recommended for mobile marketing in order to create rich features tailored for mobile users. These mobile ads can be analyzed independently for a clearer understanding of their performance. We Strategize. We Execute. We Deliver. On All Screens. 2 4
  • 25. Analyzing the Campaign Analyzing campaign performance is very important. After carefully planning, creating and marketing mobile initiatives, understanding performance metrics will empower brands with the information needed to build successful future campaigns. We Strategize. We Execute. We Deliver. On All Screens. 2 5
  • 26. Analyzing the Campaign Collecting analytics information from apps, ads, and other assets can be difficult, but having this information available for analysis is critical for future mobile campaigns. A number of different analytics suites are available to help obtain this traffic data, such as Google Analytics, depending on the type of information needed. We Strategize. We Execute. We Deliver. On All Screens. 2 6
  • 27. Summary • Half of brands either have no mobile strategy, or have a mobile strategy in the planning stages. • 54% of mobile phones in North America are smartphones. • Mobile ad spend is expected to reach $7 billion in 2015 • Marketers are successfully reaching mobile consumers with social calls to action, full-page ads and contextual ads. • There are four steps to designing and implementing a mobile strategy. • Analyzing mobile advertising campaigns is supremely important, and can be done with a variety of analytics tools. We Strategize. We Execute. We Deliver. On All Screens. 2 7
  • 28. Fresh Digital Group 111 John St, 2nd Fl. New York, NY 10038 www.freshdigitalgroup.com Fresh Digital Group