The leadership in this sphere passed from the companies dealing only with mobile technologies to Facebook and Google. The launch and the incredible success of mobile advertisement in Facebook were unprecedented. This was the most significant event in mobile advertisement in 2013 which redid the entire mobile world.
To predict the future in the constantly changing world is difficult. Nevertheless, TapSense gave the accent to the most important trends and innovations which marketers will face next year. This should help in the planning of mobile campaigns.
Mobile RTB will rank 45% of all the purchases of mobile advertisement
Mobile Real Time Bidding in 2013 became a mainstream due to the fact that Twitter bought MoPub which is the leader in the sphere of mobile RTB technologies. In AdExchanger survey, the percentage of mobile RTB will be 30% at the end of the year. We expect that this trend will continue to develop and the percentage of all the mobile purchases will rank 45%.
RTB didn’t become popular at once. At first this trend appeared in the sphere of advertisement for personal computers and supposed to be a good variant for buyers and much higher CPM for producers. However, buyers of the advertisement for desktops were adapting slowly to the novelty that why the results became mixed. This tendency in the mobile sphere was developing quickly because buyers considered this model to be a success.
Today, the supplies of advertisement for personal computers and notebooks are decreasing to 14% per year and the users enter into mobile advertisement faster than before and due to this fact, marketers should adapt their digital strategies.
Consolidation in the frames of advertising network
In 2013 Millennial Media bought Jumptap and this event became a defining moment for advertising networks. The explosion of the popularity of mobile applications after Google had bought Admob in 2009 for 750 million dollars came to the end.
The spreading of different options available for buyers denounces great consolidation. Small niche players continue to build their business independently.
E-mail will become a paramount advertising channel in mobile sphere
More than a half of all the letters today are looked through via mobile devices. We think that they will become the main advertising channel in mobile sphere and they won’t be so popular for personal computers. The amount of letters that are looked through via phones and tablets is continuing to increase but the decrease in sales for desktops will only intensify this tendency.
Some marketers make experiments with adaptive design for small screens of mobile devices. There is going to be a big shift in the email marketing and the optimization of mobile advertisement will become of a top-priority. Due to the high ranks of mobile email it is assumed that the reading of email using PCs will fade into insignificance.
New formats of mobile advertisement will arise, including 5 seconds videos
Facebook stream advertisement is one of the examples of new formats of mobile advertisement which arise in the developing industry. Another example is promotwits in Twitter. Pinterest is considered to have its own format which will be cheerfully accepted by marketers.
As far as banner display advertisement is concerned the growth of multimedia won’t be prominent. The expenditures are high but the effectiveness is questionable. Such advertisement can hardly attract marketers who are in the small niche of specialized brands.
However, the formats of mobile video are ready for innovations. The days when we could make little changes to a standard 30 seconds video to increase sales a bit have passed. And the popularity of 5 and 10 seconds videos will increase.
The price of making advertising videos is decreasing due to the development of technologies. The instruments for creating a high quality video present today in every notebook, and the majority of smartphones have the ability of playing HD videos which makes even small marketing unit a big TV studio. And the widespread Wi-Fi access in offices means that the advertisers have the opportunity to provide the users with their mobile advertising video.
Twitter advertisement will spread on exterior users of social media
According to comScore in August 2013 90% of the time spent in Twitter people used mobile devices. Nowadays only a few clients of social media support Twitter advertisement formats such as promoaccounts, promotwits and promotrends (hashtags).
Among the applications of Twitter clients the advertisement is supported by Echofone, Hootsuite, Twitterrific, Plume and Twitter official client. Some of these applications have paid versions allowing users not to see advertisement. However the following Twitter clients do not contain advertisement at all: Twitterific (version for desktops), Hootie, Tweet Lines, Twidere and Tweetbot.
After SEC documents confirmed that the company hadn’t generated profit the social media concentrated on benefit. The decision to widen the advertisement platform was taken. We have already seen how Twitter bought Tweet Deck and shifted all the users to the official application. But the social media can’t buy all the existing clients. The company will cooperate with the clients on increasing the coverage by the advertising platform.
The advertisement in Twitter clients is very important for the success of the company. Its approach leans on natural integration of the advertisement into the content. This experience is quite positive for users and such approach will let the company to develop its advertisement partnership with other clients.
FBX from Facebook will enter the mobile sphere and become dominative there
Talking about Facebook profit in July of 2013 according to Facebook Exchange (FBX) Sheryl Sandberg said: FBX is only a small part of our business. However it is changing very fast. Analytics from J.P. Morgan claim that the benefit from the advertisement will rank 60% of all the Facebook benefit. It will happen only if Facebook will integrate FBX in its mobile application.
Facebook content for mobile devices and personal computers let to display different advertisement for users. The settings of Facebook Ads for mobile devices and more targeted advertisement FBX for desktops can be simply changed. Facebook Ads shows advertisement based on likes from friends and other possibilities of targeting; so the advertisement for desktops is more relevant and includes retargeting advertisement from the companies which the user had already interacted.
We know that user will interact with the content which resonates with him and taking into account the fact that we know about the development and growth of mobile applications popularity and spends on mobile advertisement we can forecast that FBX will enter the mobile sphere. And as the users will prefer mobile devices we believe that the profit from FBX will increase.
According to prognoses in 2014 all the marketers will invest to mobile advertisement and there will be those people who haven’t accepted mobile marketing still ( for example small companies and B2B marketers).
Marketing technologies at last correspond with the popularity of mobile devices and in 2014 marketers will get prominent ROI from mobile marketing.
How to maximize the effect of mobile advertisement?
In spite of the fact that mobile advertisement is pretty effective, this tendency is decreasing because of disappearance such factor as novelty. Moreover, mobile advertisement can bother people more than any other advertisement.
In order to realize the advantages which mobile segment has advertisers have to concentrate on the audience engagement and the relevance of advertisement with the respect to private space and the ability to give to people such award which they consider valuable and essential.
Mobile advertisement still is a new phenomenon, but as smartphones became very popular advertisers pay attention to the potential of such segment. A lot of people check their profiles in social media everyday (or even more frequently) and smartphones can make this process more personal. All this appears to be a great opportunity for mobile advertisers, but there are pitfalls which should be avoided.
How much is mobile advertisement effective?
The analysis of more than 450 mobile advertisements including banners, video and applications from Market Norms base, held by Millward Brown company shows that mobile advertisement is effective. As a rule it gives much higher data by such criteria as brand awareness, advertisement awareness, message association, attractiveness and purchase intent, than online advertisement.
The source: Market Norms for online, last 3 years from 4th quarter of 2012, AdIndex Norms for Mobile from 4th quarter of 2012
Online (2.012 campaigns, 2.324.781 respondents)
Mobile: Mobile – only (320 campaigns, 221.548 respondents)
Discrepancy: those who watched – the control group
Such result is connected with several factors: the novelty of mobile advertisement, the fact that mobile advertisement takes bigger segment than online advertisement, and also the fact of much concentrated attention because of the screen size limitation and technology.
Nevertheless, the achievements of mobile advertisement are decreasing. As in the case of other digital technologies, the novelty passes and the effectiveness of the advertisement decreases.
The factor of novelty passes:
The figures of mobile advertisement show the decreasing tendency
The source:Millward Brown, Adindex Norms data base for mobile advertisement from 4th quarter of 2012
Base: 2008 (22 campaigns), 2009 (39 campaigns), 2010 (65 campaigns), 2011 (68), 2012 (117)
Discrepancy: those who watched – the control group
As the gap between mobile and internet advertisement decreases the advancement of mobile creativeness becomes more and more important. The materials from the Millward Brown data base show that the best cases of mobile advertisement can increase brand awareness up to 17%, brand attractiveness up to 14% and purchase intent up to 18%. And on the contrary the most ineffective advertisement cases can influence the brand negatively.
The source:Millward Brown, Adindex Norms data base for mobile advertisement from 4th quarter of 2012
Base: Mobile – (117 campaigns), (64.722 respondents)
Discrepancy: those who watched – the control group
What does make mobile advertisement attractive for customers?
The relation to mobile advertisement is much less positive than to other media; the study AdReaction 2012 held by Millward Brown which covers 18 countries shows that relation to mobile advertisement would be hardly ever more positive then to the advertisement via email (e.g. spam). The situation can improve according to the development of mobile advertisement awareness. But as a lot of people are not familiar with mobile advertisement, and because such platform offers its unique range of opportunities, advertisers and agencies should stop and think before launching its online campaigns in mobile segment.
The relation to mobile advertisement is much less positive than to other channels
How would you characterize your relation to advertisement?
The source: Millward Brown
Nevertheless, despite the fact that the relation to the most formats of advertisement is on the whole negative, messages in the newsfeeds of social media are understood more positively in the comparison with others.
Apart from messages in newsfeeds in the perception of other formats there is no difference.
Smartphone and tablets users
The source: Millward Brown
It can be seen from the table that the data is different. On the whole, people are interested in receiving mobile advertisement which concerns services and offers provided by online shops, papers, magazines and local restaurants, more than advertisement of drinks producers or auto companies. Nevertheless, this problem can be solved with relevant targeting.
Mobile users want to receive the content of many categories
Which advertisement would you like to see on the screens of your mobile devices?
Factors, conducing successful mobile campaign
With the help of data base analysis and the results of surveys, Millward Brown has defined the factors conducing the success of mobile advertisement. Nevertheless, these elements can’t guarantee the success and they can be changed if there are serious creative arguments. Moreover, there should be more factors to succeed.
The necessity of engagement in communication is one of the key factors, which comes from the estimates of the most successful cases of mobile advertisement. If users like the advertisement and are engaged in it through humor or if they have an opportunity to define the further development, then such advertisement has more chances to succeed.
One of the key factors of mobile advertisement is the opportunity to adapt the message to the concrete time and place where the contact with the customer happens. The advertisers can use this opportunity in several ways according to their product category and circumstances. Time and place often has the crucial importance in the situations when people search for restaurants. If you represent the company which offers credit cards then knowing that your clients are in the shopping mall or car center you can adapt your message in a right way.
One more way of relevance guarantee is context targeting. One of the demonstrative examples is a mobile site of a fashionable magazine, where the readers can see the advertisement on the double page spread.
It is very important to show your respect according with such relation to mobile advertisement. Do not interrupt people. Wait for a natural pause before offering your message. People are ready to distract their attention from something only for a while so the 30 sec advertisement won’t be considered positively. Think over the relations that you are going to build. Avoid different tricks which can make the audience discontent. Avoid complicated processes which can take a lot of time or discharge the accumulator. Finally, show how the user can close the advertisement.
As a rule, the results of the advertisement are better when there are coupons, games or other premium content in it. 5 advertisement campaigns which Millward Brown analyzed for loyalty network of mobile advertisement Session M turned out to be more effective than other mobile advertisement.
In the AdReaction 2012 survey people told that they like mobile advertisement where they are offered coupons, instruments and interesting information, such as receipts and the results of the sport competitions. The access to exclusive content or free games caused little interest. It can be seen that mobile audience expects to get something really valuable in exchange for its attention and engagement.
Millward Brown analysis of mobile advertisement shows that several creative factors should be taken into account:
Branded applications as a means of marketing
Mobile applications give the opportunity to embrace the audience, offering to people the things they want. Good applications are those which are free and fast working and easy to download. They are operating correctly on all the versions of software, they have understandable description and people enjoy them more than websites.
Moreover, they have to suggest something valuable. However, they are a lot of options that are included in such term. One branded application of drinks offered the reward for a winning in a racing game. People liked this application because it was a nice way to fill in time. One more example: toilet paper brand launched an application named “Where is a toilet?” which was considered as fun and useful.
It is also makes sense to use the applications that already exist: today several advertising messages encourage people to use the popular application Shazam which not only define the music but also load the page of the advertiser.
While the advertisement on the mobile devices stays a new phenomenon for advertisers and users, it is clear that it gives a range of unique advantages and can be a part of important marketing program.
Master Card and Prime Research announced the results of second annual global research MasterCard Mobile Payments Study. As part of study more than 13 million commentaries on social media sites on the topic of mobile payments were analyzed. Twitter and Facebook were used among the analyzed resources.
The results of the study show the improvement of relation to mobile payments, fast growth of its usage and the widening the amount of companies which accept such kind of payment. 88% of the commentaries on the topic of mobile payments are positive, moreover the ability to pay via internet is usually considered as an advantage. As customers use mobile payments more and more often those companies which don’t accept them can appear to be in disadvantaged position.
According to the research the year 2013 became one when the developing of mobile payments slipped from the theory into the practice. In 2013 81% of talks triggered users who had used such technology. This result differs from the exponents of 2012 when only 32% who participated in discussions used mobile payments. Although there are apprehensions about the security of mobile payments the research showed that customers and companies slipped from the question “Why to use mobile payments?” to the question “What way of mobile payments is better to use?” Moreover, it can be expected that in 2014 there will be loyal relation to mobile brands and the companies in this sphere so the companies that have such kind of payment will turn out to be in favourites.
More and more customers use mobile payments:
From doubts to use: The doubts that were the main topic of the discussions gave place to the discussions about the quality and feasibility of different products. The study showed that instead of the question about using mobile payments (this topic ranked 3th in the discussions of 2012) customers began to discuss which way of mobile payments they should use (this topic ranked 4th in 2013).
Who takes part in the discussions: The users of mobile payments now trigger the biggest part of the discussions. A year ago 68% of the discussions’ participants hadn’t use such technology. This shows that the customers slipped from the discussions to practice of using mobile payments.
More positive feedback: The relation to mobile payments has improved (74% of positive feedback in 2013 in comparison with 58% in 2012). The authors of the messages who didn’t use this way of payment also consider this way convenient (79% of positive feedback in 2013 in comparison with 76% in 2012). This shows that users’ experience becomes better, technical quality improves and the network of accepting mobile payments enlarges.
Users’ experience is becoming better, but extra efforts are required:
The users’ relation to the mobile payment becomes better (63% of positive feedback in 2013 in comparison with 34% in 2012). Nevertheless users’ experience is still far from the ideal and can be the reason of disappointment in a lot of cases.
The importance of mobile payments accepting: The topic about the opportunity of mobile payments accepting became the most debated topic of 2013 – the percentage of the commentaries on this topic is 15% on the whole and 48% of the messages from companies. The survey shows that both users and companies like mobile payments (86% of the commentaries are positive) which probably lead to the widening of the mobile payments network in 2014. The interesting fact is that there were only several companies who accept such kind of payment in 2012 and this was considered as a barrier for entering the market of mobile payments and in 2013 the possibility of mobile payments became the most debated topic with positive feedback.
Attendance of companies in social networks: The accounts of companies in social networks created 22% of messages on the topic of mobile payments and 88% of these commentaries were positive. The survey showed that 90% of such discussions are led by retail and service outlets which have already introduced the system of mobile payments. The companies which didn’t introduce the system of mobile payments usually use social network to search the information about mobile payments from those who has already had them.
It’s all about convenience: The companies who use mobile payments tell that the reason which made this system so popular is its convenience of using. The survey also showed that the companies discuss the advantages of such kind of payment for themselves and for customers which is also an advantage for the company.
It is necessary to spread the information about security:
Users are in a mess: The initiatives on the users’ education will become the important moment of mobile payments development. The messages concerning to the security of such kind of payment were negative in 66% of commentaries.
The space for education: Although the security of mobile payments is high, users do not always know how the refund in the case of unsanctioned mobile transactions.
Marketing Week site made a list of 5 key tendencies of the year in the sphere of mobile advertisement according to the Mobile World Congress 2014.
Marketing experts develop mobile technologies for themselves
A big number of marketing experts who took part in Mobile World Congress 2014 and worked out of mobile sphere emphasized the increasing impact of mobile technologies on their activity. Coca-cola brought 15 of its marketing specialists in Barcelona, Unilever also has its powerful marketing team. Moreover Unilever held special event where the representatives of Twitter, BBC и Walmart made a speech.
The announcements that were made by the brands like these showed that there was a change in such sphere and mobile technologies take an important place in media plan.
Unilever made a progress in its initiative of digital marketing incubator Go Global and chose 7 start-ups, connected with marketing technologies in order to invest in them. As a result, instead of rely on agencies the company is going to create “new marketing platforms”.
Telephone producers choose the golden mean
Smartphone producers who took part in the exibition showed that generally they lost the battle with Apple (which doesn’t participate in MWC) and Samsung (which announced about launching Samsung Galaxy S5 in the course of the conference) and focused on the “golden meal”.
In the course of the exhibition Motorola didn’t present any new device, but held the evening event where it told about its strategic direction after the buying of Chinese company Lenovo (the price of the bargain is $2.9 billion), which create phones with “perfect correlation of price and quality”. Rick Osterloh from Motorola added that he is sure that the days of smartphones which cost 650$ per device are numbered.
Nokia also started working with Android having launched the line of inexpensive telephones Nokia X, targeted at developing markets and capable of liquidation of the decline in output. HTC also launched 2 inexpensive smartphones - Desire 816 and Desire 610 and claimed that it “sees a number of possibilities” in a mainstream diapason. Sony and LG also showed their inexpensive smartphones within the framework of the exhibition.
A shift to the sphere of native advertisement
The participants of Mobile Media Summit (one more event within the framework of the exhibition) told that their strategies in the sphere of mobile advertisement displace from pop-up windows and banners to more native forms of marketing.
According to the experts’ opinion this is happening because the cintent of the native advertisement for mobile devices is “better”, than small banners.
According to Mollie Spillman from Yahoo native advertisement is suffering from “misunderstanding in mobile sphere”. Spillman suggest marketing experts who are doing native advertisement for mobile devices pay to the context the same attention as to the content.
“Heads of marketing departments still think that screens of mobile devices are too small for serious creative while TVs are becoming bigger and bigger and it is easier to watch advertisements on big TV screens. This philosophy should be changed because marketing experts have had experience in mobile sphere and they know that what can be done in such sphere”, - she said.
Facebook gives the agenda to social networks, but the operators will hardly like this
The founder and CEO of Facebook Mark Zuckerberg told about his strategy at MWC. His time on the stage he used for telling about the initiative of Internet.org the aim of which is to offer an interntet access to every person in the world by the means of decreasing the cost of it, escaping from disadvantages in the networks or by means of free access to mobile internet in the developing countries.
Zuckerberg said that he would like to create a service which allows the inhabitants of the developing countries to get free access to basic information – the cost of foodstuffs, social networks, messages, weather forecasts and Wikipedia – for one click. He compared this service with 911 department in the USA and he thinks that Internet.org should become “a phone number of the internet”.
At MWC Zuckerberg came to provide himself support from operators’ side who can put this service into action and claimed that Internet.org needs “3-5 partners” to start the work in the nearest year. It is also probable that Facebook will try to thrust the operators free access to the mobile data of WhatsApp which company bought for $19 billion.
Carry technologies will be everywhere in 2014
Galaxy Gear Fit by Samsung stressed an increasing appetite to carry technologies and was awarded as “The best mobile device” on MWC.
Almost every brand producing mobile technologies presented some kinds of carry devices on the exhibition in the way they exist and also as a concept. Sony showed its SmartBand, Huawei launched TalkBandB1, Motorola and HTC promised to launch such kinds of devices next year.
Telefonica announced that it signed an agreement with Samsung, Sony and LG about the integration of its applications (smth like TuGo) in carry devices and claimed about its readiness to complete agreements with other companies, content providers and fashionable brands in order to prove that carry devices have commercial profit.
Mobile advertisement network Millennial Media forecasts that the amount of advertisements on carry devices will increase to 947% in 2017. Nevetheless, this sector hasn’t become a mainstream yet, but if big brands support carry technologies, then the popularity of them will grow in 2014. iWatch by Apple can only support this growth.
1. Quantified Self era is coming
Quantified Self is a constant information collection about a person’s own life.
The customers’ interest is captured by the technologies of “personal analytics”. These are “clever” watches, glasses, bracelets and other carry devices with the help of which you can monitor and analyze your own physical capacities and the health condition, your movement, calories consuming, sleep phases, degree of oxygen in blood or everyday expenses. Sometimes you can measure even mood or snap.
Customers will more often consider their mobile phone as a device of life quality improvement.
With the help of mobile services users will develop memory and intellect, do brain fitness, stimulate the career growth, struggle with stress and improve your psychological condition, take care of their health, analyze products’ and environment quality, provide self-safety, and the safety of their property etc.
For example, Jawbone UP allows gathering statistics of three main aspects of your life: what you’re doing, how you sleep and how much you eat.
It works via UP2 which is always connected to a user’s smartphone via Bluetooth® Smart and helps to achieve goals with real-time updates on the progress and notifications when a user needs them.
Goods and services will be created and offered for sale quickly and on the basis of systematized data about customers.
Companies are going to analyze the information about users’ behavior taken from mobile devices online immediately giving them a targeted product.
For example, CheckinDJ application adapt music which is playing in a public place to people’s tastes. Using special applications customers note which music genres they like and the system select music which most of presented people like.
Marketing and advertisement tendencies
3. Struggle with SMS-spam
Since 2014 growth rates of SMS distribution market slack due to introducing blocking A2P SMS distribution from short numbers. As the survey shows these innovations became useful because the number of such distribution decreased.
4. Mobile marketing is coming on top
In the rating of the most prioritized instruments of internet-promotion mobile marketing ranks the third, left behind only web-analytics and automatization and this isn’t a limit, because it will take the first place soon.
5. Mobile RTB in 2014 will be 45% of all the procurements of mobile advertisement
Mobile Real Time Bidding became mainstream in 2013 due to the fact that Twitter bought MoPub which was the leader in mobile RTB technologies sphere.
This trend will continue to develop and to the end of 2014 will be 45% of all the procurements of mobile advertisement.
6. Consolidation in advertisement network will continue
In 2013 Millennial Media bought Jumptap and this event became watershed for advertisement networks. The explosion of mobile advertisement networks popularity which followed by Google’s purchase of Admob in 2009 for $750 mn came to the end.
7. New format of mobile advertisement
Dataflow and video advertisement on Facebook is one of the examples of mobile advertisement which appear in the developing industry.
Personal advertising format appeared in such social networks as Pinterest and Instagram and these formats will be available for Russian advertisers.
8. FBX from Facebook will come in mobile sphere and become dominative there
Talking about Facebook income in July of 2013 and making a reference to Facebook Exchange Sheryl Sanberg Facebook COO said: “FBX is only a small part of our business”. However, the situation changes very fast.
Facebook has published the accountancy for a 4th district of 2013 and for a whole 2013 year recently. The most interesting numbers were the percentage of mobile advertisement in the company’s revenue: 53% according to the results for the 4th district and 40% according to the year results. For comparison: in the 4th district of 2012 the percentage of mobile advertisement was only 23%.
Main Facebook numbers in 2013
Year revenue – $7.87 billions, the growth in comparison with the previous year corresponds to 55%
Net profit – $1.5 billions
Free cash flow – $2.85 billions
DAU – 757 million, the growth in comparison with December 2012 corresponds to 22%
DAU in mobile sphere – 945 millions at December, 31, the growth up to 39% in comparison with the last year
Analytics from J.P. Morgan tells that they are sure that income from mobile advertisements will run at 60% of all Facebook income.
9. E-mail mailouts became adaptive and more effective
E-mail marketing became an indispensable instrument in numerous advertising campaigns. However flying growth of mobile changed the way in such direction.
Mobile devices became the reason for an appearance of a new mailout format – mobile letters. The design of them is adapted for screens of mobile devices, which increases the feedback of the recipients.
Statistics collected from all over the world shows the increase of volume of the read letters using mobile devices.
10. The development of free cross- promotion networks
For example StartAD.mobi is a system created for independent developers with limited advertisement budget works like a banner exchange network.
After the integration with the system the advertisement of your application is shown in all the apps which are integrated with StartAD.mobi and your app starts to show the advertisements of the applications which are connected to the network.
As a result the developers get thousands of additional installations and help each other to rise in the ratings absolutely free.
11. The appearance of advertising platforms by kind of SecondScreenNetworks
SecondScreen technology doesn’t require any actions from users or a device, the advertisement on the devices is synchronized automatically and is shown in the context of TV-advertisement, operating like a TV-tagging.
This platform on the one hand allows making TV advertisement more interactive and propel brands’ communication to the next level, and on the other hand it offers a good way of additional earnings for tv-channels and content editors.