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Tiny Screen
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Maximizing Mobile Advertising Performance
1.15
0.07 %
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TINY SCREEN
MAXIMIZING MOBILE ADVERTISING PERFORMANCE
1.15%
1.4% CTR
HUGE RESULTS
The best time for mobile
Users are most likely to click mobile ads in the evening
0.8%
0.07%
0.0%
0:00
11:00am
Mobile banners
Standard banners
8:00pm
11:00pm
iOS
0.37%
Apple
Android
0.14%
Palm OS
0.09%
BlackBerry OS
0.07%
0.61%
0.37%
0.40% CTR
0.20%
0.07%
Mobile standard banner Standard banner
0.00%
Apple
LG
Motorola
Samsung
HTC
Verizon
BlackBerry
Other
Served impressions
1.04%
CTR
0.84%
0.73 %
0.58 %
0.47%
News/ Media
0.19%
Electronics
Entertainment
Retail
Financial
Travel
$ 2014
2550
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$ 2013 $ 2012
2037
1501
$ 2009
416
$ 2010
743
$ 2011
1102
Table of Contents
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Key Mobile Trends Reaching One of Every Three Consumers HTML5 iPad Ads at Your Fingertips Mobile Ads Outperform Browser Based Standard Ads You can beat the CTR, but can you beat the ROI? Handset PerformanceiPhone Leads the Way Retail and Entertainment with the Highest Performance The Evening Browse Conclusion
7pm to midnight is the most effective time for mobile advertising, with the highest CTR.
The iPhone delivers the highest Click Through Rate, BlackBerry the lowest.
The CTR performance of Apples iOS is nearly double that of Android based phones.
Note: Includes Display (Standard banner, Rich media and Video), Search and Messaging-based advertising. Source: eMarketer, Sep. 2010.
Note: Includes campaigns with at least one active mobile ad. Source: MediaMind Research, Q4 2010 - Q1 2011 North America.
The higher performance of mobile can be attributed to the technology innovation curve. New types of online advertising tend to achieve higher CTR that declines over time, once the technology becomes more widespread and mature.
The analysis used a sample of cross channel campaigns. These campaigns utilized both mobile and browser based banners, and therefore it is possible to compare similar creatives across channels to minimize skewing of results due to creative implementation. The analysis evaluated Click Through Rate (CTR), the only comparable metric between mobile and Standard formats. Overall, advertisers have achieved significantly higher response from mobile advertising as compared to more traditional display. Results show that for the same campaigns, mobile ads outperformed all other formats with a Click Through Rate of 0.61%, while the Standard Banners recorded a CTR of 0.07%.
Although mobile banners are relatively small and mobile browsing on some phones is still somewhat cumbersome, the high Click Through Rate (CTR) isnt the result of fat fingers. It can be attributed to the technology innovation curve. New types of online advertising tend to receive higher CTR that declines over time, once advertising technology becomes more widespread and mature. This phenomenon was also evident in the early days of browser based banners. Global performance data for Standard Banners show that CTR for Standard Banners declined from 0.15% in 2006 to 0.09% in 2010 (and to 0.07% in the US). The main reason for the decline is that the additional clicks that users were willing to make did not catch-up with the huge increase in impression volume during these years. Therefore, advertisers in 2006 enjoyed less crowded online advertising space, and were thus more likely to get clicks from userssimilar to the mobile display landscape today. Mobile banners arent just on top of the innovation curve, but also occupy a bigger portion of the screen relative to browser based banners. In many cases, there is only one banner on the page. Furthermore, people tend to browse with their phone closer to their eyes, unlike the screen of a laptop or a desktop. 7
A study by InsightExpress also confirms that mobile banners outperform browser based banners for branding. InsightExpress compared the response of users who were exposed to browser based ads and mobile ads, and compared them to a control group of unexposed users to measure the brand impact of the ads.
Mobile banners occupy a bigger portion of the screen as compared to browser based banners. In many cases, there is only one banner on the page.
Note: *Delta is defined as point difference between the exposed and the control groups. Source: InsightExpress, May 4, 2010. Cited from eMarketer.
Results show that mobile outperformed browser based banners across all brand metrics by a factor of three. Mobile can help advertisers to drive consumers through the purchase funnel even more effectively than larger browser-based banners.
You can beat the CTR, but can you beat the ROI?
While the evidence shown here clearly demonstrates the higher effectiveness of mobile in CTR and branding performance, mobile advertising still carries higher costs, specifically when compared to Standard. Nevertheless, even when considering the incremental cost, mobile still delivers a higher return on investment (ROI). An analysis of a recent campaign served by MediaMind of a large global financial services firm that used a combination of Standard Banners, Rich Media and Mobile Banners shows that Mobile Banners achieved the lowest cost per click. Mobile ads commanded a higher CTR, as compared to their Rich Media and Standard counterparts, which was large enough to offset the higher cost of mobile media. In this campaign, mobile proved to be the most financially rewarding format in the media mix.
An analysis of CTR and the proportion of impressions served by device reveal high variability between manufacturers. Apples iPhone and LG devices lead the pack in terms of CTR performance, although a relatively low proportion of impressions were served to LG devices. RIMs BlackBerry, which comes in second in terms of the proportion of impressions served, also commands the lowest CTR.
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Similar analysis of performance by operating system shows that the performance of Apples iOS is nearly double that of Android based phones.
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10pm
Furthermore, an analysis of Click Through Rate by hour shows that performance is also above average between 7pm and midnight. CTR reaches its peak at 8pm. Serving ads in the evening can prove much more effective as compared to earlier in the day, and can reduce the cost per click of mobile.
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12am 1am 2am 3am 4am 5am 6am 7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm
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Conclusion
Mobile is moving from the fringe to the mainstream, helped by the tailwind of higher performance and better ROI. Today, mobile ads reach one of every three consumers, and mobile spending is expected to double by 2014. As in the early days of browser based display, the innovation of mobile advertising elicits higher response from users. Mobile achieves the highest performance out of display ad formats for CTR, leaving Standard Banners in the dust. Mobile also outperforms browser based banners in branding performance. Evidence shows that browsing experience does affect users response to online mobile advertising. Apples iPhone achieves the highest CTR performance, while BlackBerry the lowest. The CTR performance of Apples iOS is nearly double that of Android based phones. Evenings tend to be most active, when it comes to online browsing and ad exposures. This is also the time when users tend to be most responsive to mobile display ads, commanding the highest CTR. With ever-expanding reach, higher performance, and evidence of better ROI than traditional display, mobile advertising can complement any display campaign. Dont let the tiny size fool you; mobile can yield huge results.
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