THE ORIGINAL CHANGO ALMANAC, FOUNDED IN 2015

MOB I LE

R K ET E R S
A
M

A LM

ANAC

PHONES, PHABLETS, & TABLETS

ALSO FEATURING ASTRONOMICAL MOBILE TARGETING FACTS

THE

IT'S THAT TIME OF YEAR AGAIN,

when industry outlooks plow into the news and marketers make
their plans for the year to come. As those plans are sure to include
mobile, and mobile is something we know well, we thought we'd
do our part to help marketers sow the seeds of their mobile media
strategies for 2015 and beyond.
We surveyed more than 500 brand and agency marketers to take
mobile marketing's temperature. In the spirit of the Old Farmer's
Almanac - the much-loved periodical that Franklin D. Roosevelt
once called "an invaluable friend" - we've compiled our results in a
Mobile Marketer's Almanac. Complete with predictions and
industry stats, the Mobile Marketer's Almanac is all the reference
guide you'll need to foretell the near future of mobile.

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THE MOBILE MARKETING

CLIMATE IN 2015
1 in 4 marketers believe that more than 50 percent of
their site traffic will be driven by mobile in the next year.
Just as farmers of old abandoned clunky equipment for more
modern technology, consumers are now spending more time on their
mobile devices than on their desktops. Mobile screens are growing
larger, and the arrival of such devices as the iPhone 6 Plus, Samsung
Galaxy Note 3, and Nokia Lumia are creating even more
opportunities for mobile users to leave their desktops behind.
Most brands we surveyed report they're currently receiving 20 percent
more traffic from mobile devices than from desktops, with some
seeing up to 40 percent. Agencies expect that their clients' mobile
visits will increase to 40 or 50 percent of their overall traffic within the
next 18 months, while brands put that number at over 50 percent.
Overall, 1 in 4 marketers believe that more than 50 percent of their
site traffic will be driven by mobile in the year and a half to come.

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LONG-RANGE FORECAST
FORECAST:

Spending on mobile ad programmatic

is expected to reach $10 billion by 2018.

Mobile ad revenue is also growing to new heights.

According to BI Intelligence, US mobile ad spending will
reach $42 billion in 2018. This will represent 43 percent of
US mobile display ad revenue within the next four years,
compared with just 6 percent in 2013. In fact, you can
expect spending on mobile ad programmatic to reach $10
billion by 2018, nearly $7 billion of which is expected to
come from RTB.

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A NEW SEASON OF SPENDING

SEASONS:

Brands spend less on mobile than agencies

but that's likely to change.

When we asked our agency and marketer survey respondents

what they're spending on mobile, however, we found that they
aren't going all-in just yet. Nearly 80 percent said they spent 30
percent of their marketing budget or less on mobile this year,
including smartphones, tablets, the mobile web, and apps.
One in 4 are currently spending between 30 and 40 percent,
while 1 in 7 is spending more than 40.
We also found that brands are prone to spending less on
mobile than their agencies, though that is likely to change. A
new season of mobile usage is upon us, and if marketers hope
to connect with consumers they'll have to fully embrace mobile
and modify their spending strategies accordingly.

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EQUIP YOUR BRAND TO

CULTIVATE NEW LAND
CULTIVATE:

86 percent of brands and agencies already

have a mobile-optimized site.

As you might expect, advertisers are shifting their marketing

tactics beyond just advertising to better align with how consumers
are spending their time. This year countless brands e-commerce
retailers in particular came around to the importance of mobile,
optimizing their sites and adding responsive design or mobile
apps. Of our respondents, 86 percent said they already have a
mobile-optimized site, and those who don't have begun to build
one. Seventy-six percent have a mobile app presence, while 60
percent plan to launch one in the future.
Interestingly, brands are more reluctant to welcome mobile apps,
with 28 percent admitting they don't have any plans at all to add
one to their content roster. Still, the next 18 months will see
brands continue to invest in a mobile-first marketing strategy.

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HARVESTING MOBILE
CONVERSIONS THROUGH
CROSS-DEVICE MEASUREMENT
HARVEST:

More than half of marketers and agencies

expect an increase in mobile conversions over the
next 18 months.

Despite the shift from desktop to mobile, we have found that

conversion rates are still higher on desktops. The marketers
we surveyed foresee a sharp rise in mobile conversions over
the next 18 months, with 52 percent expecting a conversion
rates to be 10 percent or better, and 16 percent predicting
rates of more than 25 percent.
This means it's time for a truly omnichannel strategy. Based
on our research, we recommend tying mobile and desktop
ads and events to better track results.

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WEATHERING THE MOBILE AD

ATTRIBUTION STORM
WEATHER:

Cross device attribution

will need to scale.

Marketers are still struggling with how to accurately measure

mobile campaigns. Given the fragmented media environment
and the lack of a universal approach to tracking ads, expect
marketers to demand a cross-device attribution models.
Agencies and brands can cope by building mobile ads with
easily-tracked engagements and location-based campaigns, but
measurement is still holding them back.
Attribution across cross-device campaigns needs some scale.
Companies like Facebook, Google, Twitter and Apple are
among a few that have a vast amount of cross-device data and
they have an opportunity to take on the challenge. Currently,
Facebook is leading the way with its new cross-device
measurement and reporting tool and push for a "true
multitouch attribution system. This means that a spur of
acquisitions looms on the horizon, as many startups in 2014
came out with piecemeal mobile attribution solutions and are
ripe for picking. The outlook for more accurate mobile ad
measurement looks sunny.

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LOOKING AHEAD:
SMARTPHONE, TABLET,
OR BOTH?
WEATHER PATTERNS:

Retailers need to optimize for both

mobile and tablet experiences.

Weather patterns can be unpredictable, as Old Farmer's Almanac

readers well know. It turns out the same can be said of device bias.
Among our survey respondents, agencies had a more positive
perception of tablets for their ability to drive sites visits and
conversions. Brands thought the opposite, crediting tablets with
generating higher conversion rates.
Forrester Research had this to say on the subject: "The vast majority
of retailers reported conversion rates on smartphones were around 1
percent, while conversion rates for tablets were 2.4 percent. Clearly,
smartphones are much lower in terms of conversion rates than
tablets." But Forrester added, "If you dont optimize for both the
mobile and tablet experience, you will face a challenge."

Source: Forrester Research

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A MOBILE PROGRAMMATIC
PROGNOSIS
PROGNOSIS:

More mobile cowbell.

Along with video, programmatic mobile ad spending will see

big gains moving forward, with more money allocated to
mobile and video through RTB than to desktop by 2017. Still,
The industry is constantly making improvements to targeting,
targeting, re-targeting, and cross-platform alignment in order to
meet such projections.

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GOALS FOR GROWTH

How will marketers measure their success in the 18
months that lie ahead? Most agencies told us that driving
mobile site visits is what matters most, followed by
branding, retargeting, and location-based targeting. Brands
see things a little differently, placing retargeting, branding,
driving mobile traffic, and cross-device targeting at the top
of their list.
It's a multi-channel world out there, and while everyone is
looking to chart growth, there are always unknowns.
Here's hoping this guide will help to arm you as you head
out on uneven mobile terrain.

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Chango is a programmatic advertising company,

purpose-built for the marketer. The company uses
exclusive intent data and technology to create
relevant, timely advertising campaigns, and produce
rich customer insights. The companys unique
live-profile technology makes intent data available
faster than anyone else to help clients efficiently
build brand awareness, acquire new customers and
retarget site visitors. Chango works with more than
60 of Fortune 500 marketers and companies such
as eBay, Sears, Clorox, Sprint and Toyota.

LEARN MORE AT

CHANGO.COM/RESOURCES
OR CALL

1-800-385-0607

From October 6th to October 13th 2014, we conducted a 35-question online survey. In
total more than 514 respondents from multiple industries in the US, Canada and UK
completed the survey. Respondents included marketers from both agencies and brands.