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The Insider's Guide to Social Mobile Advertising

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The Insider's Guide to Social Mobile Advertising THE INSIDER’S GUIDE TO SOCIAL MOBILE ADVERTISING CONTENTS 03 Introduction EXPERT CONTRIBUTIONS BY David Berkowitz 04 Executive Summary Brian Carter 05 Part 1: Joel Comm The Growth of Mobile Advertising David J. Deal 07 Part 2: Jason Falls The Role Social Media Plays Bryan Kramer 09 Part 3: Jason Miller Tips for Winning at Social Mobile Christopher Penn 13 Conclusion Ted Rubin Dennis Yu 14 Part 4: Insights From 10 Industry Experts EDITORIAL Simon Mansell, Simon Wardropper Douglas Hwa, Uyen Nguyen DESIGN Sarah Kang sprinklr.com [email protected] tel: (917) 933-7800 © Sprinklr 2015. All rights reserved. THE INSIDER’S GUIDE TO SOCIAL MOBILE ADVERTISING INTRODUCTION “It’s the year of mobile.” Are you tired of that phrase yet? We’ve been hearing that it’s the “year of mobile” every year since 2008. But here’s the truth: while the world was arguing over if, when, and how the year of mobile would come, the Age of Mobile happened. Mobile is already taking over the advertising world – your company may just not have noticed yet. If you’re reading this and you haven’t mastered mobile ads, you’re way behind. And that’s understandable. As an advertising platform, mobile can be complicated and difficult to navigate. There are countless rules and variables to keep in mind. But there is one fundamental aspect of mobile that any brand can master to catch up and win at mobile advertising. The secret ingredient is social media. In this whitepaper, we’ll explain why and teach you how to use social media to win at mobile advertising. sprinklr.com [email protected] (917) 933-7800 3 © Sprinklr 2015. All rights reserved. EXECUTIVE SUMMARY DON’T HAVE ENOUGH Insights from top experts: TIME TO READ? HERE ARE Jason Falls Elasticity, @JasonFalls THE HIGHLIGHTS The key to better conversions is relevancy— targeting more effectively. So get as granular The mobile advertising industry is growing. as you can. • There are 300,000,000 more mobile connections Dennis Yu than human beings. BlitzMetrics, @dennisyu • Mobile beats desktop for total searches in numerous Your first foray into mobile ads should be on markets, including the U.S. and Japan. Facebook, in the same way that your first foray into search should be with Google. • U.S. mobile ad spend will be $28.5 billion by the end of 2015; the global market will be $70 billion. David Berkowitz • By the end of 2016, global mobile ad spend will reach MRY, @dberkowitz $100 billion; it’ll be more than half of total digital spend. Don’t treat mobile advertising like advertising. Mobile gets extremely personal for consumers. Consumers now prefer mobile over traditional platforms. Jason Miller • Americans spend more time using mobile than watching TV LinkedIn, @JasonMillerCA (2 hours, 57 minutes vs. 2 hours, 48 minutes). 75% of engagement with Sponsored Updates • Americans spend more time browsing on mobile than they on LinkedIn happens on mobile. do on desktop (60% vs. 40%). Christopher Penn Social networks drive the growth of mobile advertising. Shift Communications, @cspenn Remember 3 key things: What’s your audience? • Two out of the three biggest players in mobile advertising What are your goals? What are your gross and in the U.S. are social networks. net margins? • Facebook alone controls 10% of all digital ad spend. and many more! (skip to page 14 for tips) sprinklr.com [email protected] (917) 933-7800 4 © Sprinklr 2015. All rights reserved. THE INSIDER’S GUIDE TO SOCIAL MOBILE ADVERTISING 01 THE GROWTH OF MOBILE 2014 MOBILE TO DESKTOP USAGE RATIO To understand the importance of Source: Millenial Media mobile advertising, let’s first take a look at why mobile is so dominant today. 60% 40% mobile usage desktop usage MOBILE CONNECTIONS OUTNUMBER PEOPLE At this very moment, there are 7.5 billion mobile connections. The world population sits at 7.2 billion – meaning there are 300,000,000 more mobile connections than people. PEOPLE PREFER MOBILE OVER OTHER CHANNELS People are choosing mobile over traditionally dominant MOBILE CONNECTIONS TO platforms. They spend more time browsing on mobile than WORLD POPULATION they do on desktop. They even spend more time with their phones than they do watching television (2 hours, 57 minutes Source: US Census Bureau, GSMA Intelligence vs. 2 hours, 48 minutes). Think of your own habits: you check your phone first thing in the morning, as you walk to the train, while you wait in traffic, 300,000,000 during your lunch break, etc. It’s always within arm’s reach. more mobile connections than human beings sprinklr.com [email protected] (917) 933-7800 5 © Sprinklr 2015. All rights reserved. THE INSIDER’S GUIDE TO SOCIAL MOBILE ADVERTISING 2016 MOBILE AD SPEND PREDICTIONS Source: eMarketer GOOGLE IS MOBILE-IZING It’s not just people making the great shift to mobile. Global mobile ad spend will reach The world of business has also gone in a mobile-friendly direction. Google gave a huge bump to mobile in April 2015, $100 billion by the end of 2016 – when it updated its algorithm to give higher rankings to “mobile-friendly” sites on mobile search results. Google also led by the US, China, and the UK. announced that mobile is actually beating desktop for total searches in numerous markets, including the U.S. and Japan. COMPANIES ARE POURING $$$ INTO MOBILE In 2011, a ComScore study forecasted that mobile ad spend $40 billion would reach $2.5 billion in the U.S. by 2014. Well, 2014 came and went. How did mobile ad actuals compare to their US expectations? By beating the original prediction by nearly 800%, coming in at $19 billion. $100 billion The mobile advertising expansion shows no signs of slowing down. By the end of this year, mobile spending is expected to reach $28.5 billion in the U.S. and nearly $70 billion worldwide. And by the end of 2016, the global mobile ad market will surpass $100 billion and will be more than 50% $7 billion of total digital ad spend. UK $22 billion China sprinklr.com [email protected] (917) 933-7800 6 © Sprinklr 2015. All rights reserved. THE INSIDER’S GUIDE TO SOCIAL MOBILE ADVERTISING 02 THE ROLE OF SOCIAL MEDIA The mobile landscape can be As mobile advertising grows, the influence of social media on it grows in tandem. Two out of the three biggest players in mobile ridiculously complex: there are advertising in the U.S. are social networks. Facebook alone numerous networks, devices, controls 10% of all US digital ad spending. agencies, DSPs (demand side Just as social networks drive mobile advertising’s growth, mobile drives advertising on social networks. Facebook, platforms), and other factors to take which controls 71% of all social ad spend, made $3.32 billion into consideration. But if there is in Q1 2015. Almost three-quarters of that revenue came from mobile advertising. one fundamental thing you should know about the mobile advertising landscape, it’s this: social media is 2015 US MOBILE AD REVENUE SHARE the key to success. Source: eMarketer 35.2% Google 16.7% Facebook 3.7% Twitter sprinklr.com [email protected] (917) 933-7800 7 © Sprinklr 2015. All rights reserved. THE INSIDER’S GUIDE TO SOCIAL MOBILE ADVERTISING Twitter, the third largest player in mobile advertising, announced Brands also benefit from the tracking available via social media a Q1 2015 ad revenue of $388 million – a 72% jump from last networks, where users’ activities can be measured and targeted year. Even more noteworthy: mobile ads accounted for 89% of once they “log in.” total ad revenue. The non-disruptive nature of social media ads is an important This symbiotic relationship between social and mobile creates benefit for brands, as well. Social networks have taken great unique opportunities for brands, as they benefit from the strides to make sure ads are seamlessly integrated into the behaviors of mobile users: overall experience. And nowhere is this seamless relevance more important than on mobile, where the intimacy of the 1. Users are more social on mobile: 71% of time spent on interaction amplifies the reaction, for better or worse. social networks happens on mobile devices. 2. They consume more content on mobile: 75% of consumers +111.3% use a smartphone to watch online videos. LinkedIn 3. They engage more on mobile: online video viewers are almost 3X more likely to click through to a brand’s +87.7% website from their smartphone or tablet than from a Yelp laptop or desktop. +76.4% Yahoo* +55.4% Twitter +43% Facebook 2015 US MOBILE AD REVENUE GROWTH RATE Source: eMarketer *acquired Tumblr in 2013 sprinklr.com [email protected] (917) 933-7800 8 © Sprinklr 2015. All rights reserved. THE INSIDER’S GUIDE TO SOCIAL MOBILE ADVERTISING 03 HOW TO WIN AT SOCIAL MOBILE ADVERTISING Figuring out what works best for TIPS FOR BRANDING-FOCUSED ADVERTISERS: your company on mobile will require Are you trying to establish a brand identity, attract new customers, or generate interest for a new product? becoming more familiar with the Go to page 10 to learn tips for branding-focused objectives. space (and a fair amount of trial and error). With that said, there are TIPS FOR DIRECT-RESPONSE ADVERTISERS: some general practices your brand Are you trying to get someone to download an app or purchase a product? Check out the tips specific to your goals on page 12. can follow. TIPS FOR MOBILE AD CREATIVE: Hop to page 14 to learn general best practices for creating the right messages and visuals for your social mobile ads.
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