IAB Mobile Marketing Center of Excellence Selling Mobile Ads: Trends in Display and Video Ad Sales and Models

Released 15 May 2014 Key Findings: Mobile Display

• CPM, cost-per-click/tap, and cost-per-install are the most requested mobile display pricing models. • 23% of respondents report being asked to sell mobile display on a cost-per-viewable-impression basis. • 49% of respondents can currently sell mobile display inventory on a guaranteed audience/GRP basis. Another 14% plan to be able to in the next six months. • 46% of respondents are selling mobile display inventory via some type of private exchange; 35% are doing so via an open exchange/RTB system. • 35% of respondents report using multiple ad networks to sell mobile display inventory.

1 Key Findings: Mobile Video

• CPM, cost-per-completed-view, and cost-per-viewable impression are the most requested pricing models reported by mobile video ad sellers • 52% of respondents selling mobile video inventory report being asked for cost-per-completed-view pricing. 26% report being asked for guaranteed-audience (for a specific demographic/segment) pricing. • 44% of respondents can currently sell mobile video inventory on a guaranteed audience/GRP basis. Another 19% plan to be able to in the next six months. • 15% of respondents selling mobile video inventory do so via some type of private exchange; 15% do so via an open exchange/RTB system.

2 Source: IAB Mobile Ad Seller Survey, April 2014 Mobile Display Dominated By CPM, CPC, CPI

Cost per impression (CPM) 100%

Cost per click/tap 54%

Cost per install/download 39%

Cost per other action or interaction 26%

Cost per viewable impression 23%

Guaranteed audience (specific segment) / GRP 21%

Guaranteed audience (total reach) / GRP 10%

Don’t know 3%

Don’t have mobile display ad inventory 0%

Other 15%

0% 20% 40% 60% 80% 100%

Question: Which of the following models have buyers requested in the past six months for mobile DISPLAY ad inventory? (check all that apply)

3 Source: IAB Mobile Ad Seller Survey, April 2014, n=39 Half of Respondents Can Sell Mobile Display on an Audience Basis

Don’t know, 3%

No, and no plans in the Yes, 49% next 6 months, 35%

No, but plan to in the next 6 months, 14%

Question: Can your company currently sell mobile DISPLAY ad inventory on a guaranteed audience basis?

4 Source: IAB Mobile Ad Seller Survey, April 2014, n=37 More Respondents Using Exchanges than Networks for Mobile Display

Direct, via our own sales force 100%

Automated via private exchange 46%

Automated via open auction/open 35% exchange/RTB

Multiple ad networks 35%

One exclusive ad network 5%

Other 3%

Don't know 0%

0% 20% 40% 60% 80% 100%

Question: Which of the following sales channels does your company currently use to sell its mobile DISPLAY inventory? Please check all that apply.

5 Source: IAB Mobile Ad Seller Survey, April 2014, n=37 CPM, Completed View, Viewable Impressions Requested for Mobile Video Ads

Cost per impression (CPM) 96%

Cost per completed view 52%

Cost per viewable impression 33%

Guaranteed audience (specific segment) / GRP 26%

Cost per install/download 26%

Cost per click/tap 26%

Cost per other action or interaction 19%

Guaranteed audience (total reach) / GRP 11%

Cost per partially completed view 11%

Don’t know 0%

Other 4%

0% 20% 40% 60% 80% 100%

Question: Which of the following models have buyers requested in the past six months for mobile VIDEO ad inventory? (check all that apply)

6 Source: IAB Mobile Ad Seller Survey, April 2014, n=27 Almost Half of Respondents Can Sell Mobile Video on an Audience Basis

Don’t know, 4%

No, and no plans in the next 6 Yes, 44% months, 33%

No, but plan to in the next 6 months, 19%

Question: Can your company currently sell mobile VIDEO ad inventory on a guaranteed audience basis?

7 Source: IAB Mobile Ad Seller Survey, April 2014, n=27 Respondents Report Exchanges Lag Ad Networks for Mobile Video

Direct, via our own sales force 100%

Multiple ad networks 37%

Automated via open auction/open 15% exchange/RTB Automated via private exchange (e.g., 15% unreserved fixed rate, automated…

One exclusive ad network 7%

Other 4%

Don't know 0%

0% 20% 40% 60% 80% 100%

Question: Which of the following sales channels does your company currently use to sell its mobile VIDEO inventory? Please check all that apply.

8 Source: IAB Mobile Ad Seller Survey, April 2014, n=27 Methodology

• The IAB invited ad-seller members of the Committee to participate in this survey. • Not all respondents opted to supply their company name. However, where available that was used to de-duplicate responses, on the basis that the first response received from a company would be kept in the sample. • A total of 47 members from unduplicated companies completed the questionnaire, though sample sizes for specific questions vary. • Responses were received from a wide variety of companies, including branded publishers and ad networks, mobile-native companies and digital and traditional media. • Responses have not been weighted and therefore are directional, not necessarily representative.

9 Source: IAB Mobile Ad Seller Survey, April 2014 About the IAB

The Bureau (IAB) is comprised of more than 600 leading media and technology companies that are responsible for selling 86% of in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit iab.net.

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