News Ltd to bring mobile ad creation in-house

by Marketing ON 12 March 2013

News Limited is setting up an in-house mobile ad production team to offer clients a one-stop shop for mobile campaigns.

From 1 July, the publisher’s national sales team will manage the end-to-end sales and creative ad production for its mobile sites.

News Limited’s group director of sales Fiorella Di Santo says bringing the service in-house will provide dedicated service to advertisers.

“The potential for mobile is huge and growing exponentially,” Di Santo says. “According to the ‘IAB PWC Online Advertising Expenditure’ report for December 2012, mobile ad spend hit $86.2 million in the 2012 calendar year, up 220% from 2011.

News claims to command 16% market share for mobile advertising – more than any other news publisher – with a total unique audience of 7.2 million per week.

One of the options available to advertisers is the publisher’s ‘News Alive’ which lets readers scan ads in newspapers to bring up supporting multimedia content on their phones.

The sales team will push integrated ad options across the publisher’s newspaper and digital properties. For advertisers, to deal with one team for all these platforms will ensure the highest impact for their campaigns. “News Limited has the largest network of national and metropolitan news sites in Australia,” Di Santo adds.

“When you combine this audience with our network of newspaper and digital brands, we are able to offer our customers easier access to a truly national, multi-platform network.”

A reader survey found 86% of News’ mobile site readers use smartphones to research products, 51% purchase products via the device and 45% click on mobile ads.

Big Mobile will cease representation and creative production of News’ mobile sites from 1 July, 2013.

Context, value and competence crucial for mobile campaigns: study

by Marketing ON 19 February 2013

To play in the mobile space, brands must be competent, use location and offer an exchange of tangible value, according to Millward Brown.

The researcher conducted a global ‘AdReaction 2012’ study finding brands are welcome on smartphones and tablets when they align to broader mobile benefits, and generally have more impact on all brand metrics than online ads.

Awareness of ads in particular was found the be much higher on mobile than desktop at 17.3% compared to 4.0%, while message association was 7.8% higher and purchase intent 3.1% higher.

Acceptance of mobile advertising among consumers has been a point of discussion in the industry as it grows, with some consumers are happy to tolerate them while other find them annoying. Millward Brown found most mobile users will tolerate mobile ads, particularly on tablets where they are less of a disruption to experience, while some more actively embrace them.

Around two in five are happy to see ads on mobile websites or apps as long as access remains free. One in three are happy to share their location to get more relevant services and offers.

When asked acceptance of different ad units, variation between different formats is minimal, apart from news feed posts, for which 35% felt ‘very favourable’ or ‘favourable’. Mobile search ads, augmented reality, and mobile display ads, while they are less favourable towards SMS, video ads, in-app ads and music player ads all ranged from between 20% to 25% for acceptance levels.

In terms of response to mobile ads, website visitation was the most common action sparked by viewing an ad, conducted by 33% of viewers. In addition, 31% searched for a brand, while 19% looked for a brand in store and 14% claim they went on to purchase the brand as a result of the ad.

However, above all, respect for the mobile audience and platform will ensure a constructive future for mobile marketers, the study concludes. Relevance, engagement, surprise, delight, exchange and context are crucial elements for successful mobile campaigns.

1 in 2 accepting of mobile ads, rapid ad upgrades end 2012

by Marketing ON 18 December 2012

Mobile advertising has experienced rapid change in the past six months as publishers respond to the burgeoning use of devices among most smartphone adopters, half of which claim they’re comfortable with mobile ads.

Mobile ad network InMobi’s mobile media consumption study found 54% of mobile users are as comfortable with mobile advertising as they are with TV or online advertising, while only 22% find them intrusive.

The high level of acceptance on what is a highly-personal device comes as good news for the industry and is evidence that improvements made to ad units over the past six months are keeping annoyance at commercial interruptions at bay, according to InMobi’s head of marketing, Marc Fine.

“Mobile ad units are evolving quite rapidly,” Fine says. “The competitive nature of the environment means there isn’t a publisher that isn’t putting user experience upfront.”

The majority of InMobi’s inventory is now between screen ads or ‘interstitials’, such as a unit shown between pages or between levels in a game, whereas at the start of the year more bottom of the page and interruptive ad units existed.

“We’ve definitely seen a shift in the past six months to ad units that don’t take away from the navigating experience or the user experience,” Fine believes, pointing to healthier click-through and engagement rates as a result.

The improvements to ad units comes as smartphone use continues to reach even deeper into the downtime of even late adopters of the technology, allowing publishers to capitalise on the use of the device as a companion to a range of experiences.

Of the 7.5 hours of media time each day, mobile accounts for 100 minutes, more than the 93 minutes spent online via desktop. Since the study was last conducted in February 2012, 50% more of the Australian population is using a mobile to alleviate boredom during downtimes or as a companion.

Most commonly, the smartphone is being used while ‘waiting for something’, a behaviour used by 86% of owners, up from 43% since February. Three in four now use their devices in bed, up from 30%, 66% while watching TV, up from just 36%, 64% while commuting and 48% while shopping.

User are becoming so addicted to the always-on appeal that many are also using in the bathroom, while spending time with family and in a meeting or class.

inmobi cons 12 1

Nine in ten claim to have noticed ads while partaking in these activities, with in-app ads the most recalled, among 63% of the sample, followed by search ads and ads on retailers websites, recalled by 41% and 29% respectively.

The impact of mobile ads on purchase decision is also growing, according to InMobi. As offline media consumption, particularly print media, decline, the perceived influence of advertising in the digital environment is up.

Respondents to the research are growing increasingly likely to rate mobile as an influence on their purchasing decision, with 27% of this opinion, compared to 24% in February. The perceived influence of radio and outdoor was also up, while the impact of print and TV is believed to have dropped.

inmobi cons 12 2

For Fine, this self-reported data tells of an increase in the efficacy of mobile advertising, but also highlights the importance of an omni-channel marketing approach. “Where mobile works the best is when it runs in conjunction with tv or radio, or outdoor… It’s that amplification of channels and the integration of messaging across multiple channels as to where you see the best results.

“That’s a trend that we’re going to see next year: it’s not about running campaigns in silos, it’s about cross-media amplification and how mobile can mobile can support and complement traditional channels like outdoor, TV and radio.”

Fairfax outstreams News Ltd by 3 to 1, ninemsn leads news video market

by Marketing ON 3 December 2012

Fairfax Media is streaming more than three times the amount of videos as its rival News Limited is through its Australian sites, but Microsoft-owned ninemsn leads the market as the most prolific video site.

Led by smh.com.au, theage.com.au and brisbanetimes.com.au, Fairfax sites streamed 7.8 million videos in October on a unique audience (UA) of 1.8 million video streamers, outnumbering News’ combined 2.1 million on a UA of 0.6 million, according to Nielsen’s new VideoCensus tool.

Ninemsn’s various news websites claimed top spot in the news category, however, with a staggering 17.2 million streams and a unique audience of 1.7 million for the month. smh.com.au claimed second spot with 4.1 million streams and an audience of 1.1 million, while theage.com.au attracted 2.8 million streams and 0.6 million streamers, and brisbanetimes.com.au enticed 0.5 million streams and a 0.3 million audience.

News Ltd’s only site in the top 10 video streaming sites for the news category – news.com.au – ranked seventh with 0.9 million streams and an audience of 0.3 million.

The data marks the first public release of the research firm’s audience measurement figures for video content. Three in four online Australians now stream video online, contributing to almost 2 billion streams in October – an average of 165 videos per person.

Entertainment focussed sites dominated the landscape, reaching 92% of video streamers, to the benefit of Google and VEVO which came in as the top parent companies for number of streams. YouTube accounted for the bulk of activity throughout the month, with over 10.9 million Australians viewing more than 1.4 billion streams.

By comparison, sites in the news and information category reached 47% of all Australians viewing online video content, reaching an audience of 11.9 million and serving almost 2 billion steams.

In the overall rankings for individual sites, VEVO placed second to YouTube, Mi9 (ninemsn) placed third, Facebook placed fifth, ABC’s network ranked sixth and Yahoo!7 came in seventh.

CEO of Australia’s Interactive Advertising Bureau, Paul Fisher, says video advertising represents 10% of the Australian online display market and is growing at a rapid rate. “The IAB supports the introduction of online video specific audience data to help furnish the industry with audience consumption trends and information that agencies and clients can use to optimise their digital media spend.”

Apple follows market pressures for first time: analyst

by Marketing ON 24 October 2012

Yesterday’s launch of the iPad mini marks the first time in Apple’s history that the technology giant is playing catch up to its competitors, according to an analyst.

The smaller, cheaper iPad marks a significant shift in Apple’s strategy, principal analyst at technology consultancy Ovum, Adam Leach, says. “For the first time in its recent history it is responding to market pressures from its competitors, namely Google and Amazon in bringing a smaller tablet to market.”

In the past, Apple has defined new products with new form factors and waited for the market to follow, Leach notes, whereas in this instance it’s following the market trend towards smaller cheaper tablet form-factors. “This reflects a fundamental change in the way Apple operates. Apple is assuming that a lower cost iPad will allow them to sell sufficiently more units to offset the dilution in active server pages (ASP) that a cheaper device is likely to cause,” Leach adds.

James Hilton, Global CEO M&C Saatchi Mobile, which launched locally this morning, says brands are merely scratching the surface of the enormous potential smartphones and tablets offer in terms of consumer engagement.

“Tablet usage in Australia is growing at an explosive rate with penetration set to be 39% by the end of the year, more than double what it was at the end of 2011,” Hilton says.

The recent introduction of 4G in Australia and the ongoing roll out of the National Broadband Network will take the user experience on mobile and tablet devices to new heights, Hilton predicts.

Globally, shipments of tablets is expected to exceed 130 million units in calendar year 2012, rising to 349 million units in calendar year 2017, according to Ovum’s figures. The iPad is expected to comprise 54% of the market by the end of 2012, compared to 35% for Android-based tablets.

“We can make money on mobile” says Zuckerberg as Facebook earnings beat forecasts

by Marketing ON 24 October 2012

Facebook’s share price has rallied on the back of third quarter revenue reports that came in ahead of forecasts, despite reporting a net loss of US$59 million for the quarter.

The earnings report, delivered overnight, showed revenue up by 32%, to $1.26 billion, slightly surpassing analysts’ forecasts of a 29% rise, according to the New York Times. Coupled with evidence of the beginnings of success on mobile, the figures were enough to boost the share price by more than 8% almost immediately in after-hours trading.

During the earnings call, the company’s chief executive Mark Zuckerberg moved to quash fears that the shift to mobile computing would pose challenges for the company, according to the Times. In the call Zuckerberg said mobile will be “fundamentally good” for Facebook, adding “I want to dispel this myth that Facebook can’t make money on mobile.”

14% of advertising revenue came from mobile in the third quarter, the first quarter in which mobile figures had been broken out from overall advertising revenue. The company continues to push ahead with mobile and is currently testing a mobile advertising network that allows targeted ads to be shown to users on other mobile applications.

The number of ads served on Facebook’s network as a whole increased in the third quarter, and advertising prices increased by 7%, executives said during the earnings call.

The company reported income from operations of $377 million, compared with $414 million for the third quarter of 2011. The net loss of $59 million for the quarter is a drastic reversal of fortunes on the same time last year though, when it reported a net income of $227 million.

Since making its public debut on May 18 with a valuation of over $100 billion, the company has shed more than 40% of its value, with its shares hovering around $20 for the past few weeks.

It is launching a number of initiatives to boost earnings, including the mobile advertising network, a social gifting tool that allows people to buy gifts for friends via their walls and a new product called ‘Collections’, which will add a ‘want’ button and buying functionality to retailer’s photos.

Smart mobile ads ‘turn to the sun’ by tracking conversions

by Marketing ON 23 October 2012

Mobile phone ads are becoming as smart as the devices they’re served on, by tracking not just click through but also recording follow-on responses, such as app downloads, and channelling themselves to the most fruitful sites.

By installing code that tracks response to ads on smartphones, ad network InMobi claims it can now track app downloads, click to call and other direct response to the ad following click through. Its ‘Ad Tracker’ solution also optimises to the source of the most conversions, enabling the ads to ‘turn to the sun’ in real time to get the most from each campaign.

Real-time automated trading technologies first emerged on the desktop web with the ability for ‘machine learning’ to take place, whereby the tools used by advertisers (such as demand-side platforms) can automatically optimise campaigns on the fly.

Inmobi AdTracker

Head of marketing at InMobi, Marc Fine, says the technology could see the industry move from rates based on click through to a model based on conversions: “Tracking conversions on mobile allows us to know exactly where users are coming from, understand what inventory segments are the most valuable and optimise advertising budgets to the most valuable segments,” Fine says.

“Advertisers will start to benchmark the cost per conversion that executions should be hitting.”

The system will also enable advertisers to work out cost per download on their campaigns and how much they need to spend to get into the top downloads list in app stores, the point at which they start to grow organically.

The tracking technologies, that include cookies, Android IDs, ODIN 1 and UDIDs, work across all mobile ad networks and operating systems and can attribute conversions, time of day, browser used and specific locations to impressions or clicks associated with a mobile campaign.

Mobile ad growth to eclipse online video, reach $177m by 2017

by Marketing ON 10 October 2012

Advertising on mobile devices is forecast to grow by 46% year on year over the next five years, eclipsing online video advertising to become the fastest growing form of digital ad spend.

The five year outlook, from Frost & Sullivan’s ‘Australian Online General and Mobile Advertising Market 2012’ report predicts the mobile advertising market will reach $177 million by 2017 with a compound annual growth rate (CAGR) of 46%.

While online video advertising will increase its share of the general online advertising market to 30% in 2017 – more than display advertising or any other form of online ad unit – its CAGR will be lower than mobile at 39%.

The boom in mobile will be driven by rising penetration of smartphones, growth in mobile content, growing acceptance of the medium among agencies and brands, and recognition of its role in an integrated approach, the report says.

A number of players, including carriers, online publishers and specialist ad networks, are jostling for control of the growing mobile ad ecosystem. Senior research manager for Frost & Sullivan’s ICT practice, Phil Harpur, believes online publishers and ad networks are better placed to cash in on the growth, predicting carriers will fail to turn the opportunity into a viable revenue stream.

“The mobile content market is becoming much more fragmented,” Harpur explains. “With the addition of apps in the ecosystem there is a broader array of content options available, especially in the social media and gaming space.

“Global ad networks such as InMobi and AdMob are playing an increasingly important role in the local ecosystem, catering for Australians viewing more content on overseas sites,” he elaborated.

“Local mobile advertising ad network specialists such as Big Mobile also continue to grow very strongly,” he adds.

Overall, the online general advertising market in Australia grew 21% from June 2011 to June 2012 to reach $768 million, and is expected to grow at a CAGR of 14% til 2017, the report forecasts.

The Interactive Advertising Bureau Australia (IAB) reported similar figures in August, supporting Frost & Sullivan’s findings. IAB’s reporting of the overall online ad market, which includes classifieds, general display, and search and directories, also reported growth of 21% year on year to June. It valued the general online advertising (display) market at $853 million, a segment which grew by 15% to June.

Mobile advertising was the fastest growing sub-segment of online ad spend over the past year, growing by 95% in the twelve months til June. By comparion online video grew 58% during that period.

Frost & Sullivan’s report also interviewed a sample of online advertisers in Australia, finding half increased their online general advertising budget in 2012, with 39% indicating an increase of more than 25%.

Harpur says the increased expenditure is coming as advertisers divert funds from traditional media at a high rate. “The migration from offline to online channels is a significant factor in the growth of the online advertising market. 59% of organisations indicated they had achieved measurable ROI from their online general advertising in 2012.”

Harpur says social media is also quickly becoming a popular advertising medium. “Facebook has seen strong growth in advertising revenues and the proportion of Australian companies choosing to advertise on Facebook is growing strongly.

“Without incorporating social media into their marketing strategies, organisations acknowledge they risk failing to connect with a significant online audience. 43% of organisations use social media to monitor feedback on company performance or provide customer service and resolve customer issues.”

The report also found that the entry of ad exchanges into the Australian market is already leading to structural changes to the local online advertising eco-system. Over last 12 months, agencies have bought a growing proportion of their ads spots directly on ad exchanges directly via Demand Side Platforms (DSPs) rather than via an ad network. This is particularly impacting ad networks who deal with second and third tier sites.

Mobile advertising draws more eyeballs but engagement remains stagnant

by Marketing ON 4 October 2012

Mobile advertising is becoming more pervasive in the minds of phone owners, with around one in two now claiming to have noticed it, but the proportion who have engaged with mobile advertising has not increased in the last year, according to a study.

The eighth ‘Australian Mobile Phone Lifestyle Index’, conducted by researcher Complete the Picture Consulting and industry body AIMIA, found that while the noticeability of mobile advertising had increased, only 54% of mobile phone owners had engaged with, or opened the link of, an ad.

The study, which polled a sample of 1784 people ‘broadly in line’ with the 18–75 year old national population, looked at awareness and engagement with a number of advertising and message formats delivered via mobile.

Director of Complete the Picture Consulting, Dr Marisa Maio Mackay, wasn’t surprised that engagement levels were roughly the same as last year. “We’re seeing the market consolidate this year,” Maio Mackay says. “New people are being exposed to the advertising but they’re still trialling it, so that dilutes some of the figures.”

“Next year we should see it increase again, as another wave users come through and people become more comfortable with it.”

The number of mobile users who had seen or engaged with mobile advertising was strikingly similar across the different type of ad units. Each type has been encountered by around one in two of the sample, with search and banner ads the most commonly stumbled upon and vouchers or coupons the least widely noticed. Search ads were the most likely to be engaged with upon being seen and vouchers or coupons the least likely.

Maio Mackay adds that trust will be the crucial element in enticing more users to engage with mobile advertising. “When there’s a trusted brand behind it that facilitates trust and will increase engagement… but the brand will have to do some hand holding and walk with the consumers to develop that trust.”

The study also found that smartphone penetration could be higher than widely believed, at 76% – even higher than the lofty figure of 68% reported recently by Frost & Sullivan. While Maio Mackay admits the sample may skew towards residents of metropolitan areas and is reliant of self-reported phone ownership, the profile of participants is broadly in line with the ABS’ socio-demographic profile and RDA Research’s geoTribes, making the findings representative of mobile phone owners aged 18 to 75 years.

Tablet penetration was also found to be higher than all previous reports at 38% of the mobile phone owning population aged 18 to 75 years. Maio Mackay says tablets ownership is growing rapidly, far quicker than smartphone penetration did, and forecasts that 50% will own one by December 2012 and 71% by mid-2013, based on stated purchase intent.

Couch potato tablet users lap up video ads

by Marketing ON 28 August 2012

The effectiveness of video pre-roll ads on tablets is far superior to its performance on PCs, a study from InMobi and MobExt has found.

With tablet penetration forecast to reach 40% by the end of the year and tablet web usage growing at an unprecedented rate, the study highlights the lean-back nature of users and popular after work consumption occasion as factors delivering a more engaged audience to video ads.

Head of marketing at mobile ad network InMobi, Marc Fine, says advertisers are finding pre-roll video ads on tablets “incredibly effective”, particularly when hyperlinks are embedded into the video for consumers to act on calls to action. “Consumers are much more open and receptive to pre-roll ads on tablets because it is a lean-back experience,” he says. Pre-roll ads on PCs (desktops and laptops), on the other hand, fall prey to lean-forward behaviour which often sees the consumer skip the ad or open another tab while the ad plays.

The key on tablets, Fine says, is to match the ad format to the content type, for example running short rather than long spots preceding short video clips, and getting the context right.

Tablets are most commonly used in the home after 6pm at night, and second screen behaviour among Australians is common with 59% supplementing TV with tablet use. The device is used in equal measure for entertainment and life administration, the study found.

Its strength for delivering rich media content sees 80% of users accessing video content and 78% playing games. News and social media apps are also highly popular among users, opening up opportunities for in-app advertising, which Fine says is also proving highly effective.

With web tablet inventory also starting to flow, predominantly from overseas currently but increasingly from local sources, Fine advises media planners to treat the device as a separate medium rather than lumping it in with digital offers.

“Tablets should be considered as a new device to reach consumers during the evening period when they’re in their lean back mode and more receptive to watching advertising,” Fine adds.

Erfan Djazmi, director at media planner MediaCom, seconds Fine’s sentiments, adding the use of the same creative elements across multiple screens can deliver a strong ‘media multiplier effect’ for brands. “Mobile and tablet are key components to a multi-screen approach particularly as they are commonly consumed in parallel to traditional media channels such as TV,” Djazmi says. Tablets can drive dwindling engagement with traditional TV advertising back up when used as a multi-screen approach, Djazmi adds.

The study also found that the ease of content access on tablets is impacting on the use of offline avenues among its fanbois, with one in three reading hard copy books less, around one in four consumer offline newspaper, magazine or TV content less, and 16% of shopping less in physical stores since buying a tablet.

Around three in five users have made a purchase on their tablet from home with the device at its most powerful during the awareness and buying stages of the purchase cycle, while smartphones are referred to more for research and engaging with user-generated content.

InMobi’s and MobExt’s study into how consumers are using their tablets was conducted between January and April with a sample of over 600 Australians.

Google integrates AdMob as mobile takes centre stage

by Marketing ON 13 June 2012

Mobile advertising is beginning to take centre stage, a fact Google has recognised and is moving to capitalise on.

The search giant has integrated its AdWords for mobile – ‘AdMob’ – into the AdWords interface so that marketers can plan their search campaigns across the two platforms from the one place.

AdMob hosts ads on more than 2 million websites, in Google’s mobile search results and across 300,000 mobile applications. Many of Google’s 1 million plus AdWords advertisers also run campaigns through AdMob, which to this point had been housed on a different system.

In a blog post, Google’s director of product management, mobile, Jonathan Alferness, writes, “Mobile advertising has become a core part of marketers’ and publishers’ digital strategies, helping to fuel business growth and great content.”

“Bringing together the best of AdWords with the best of AdMob is an important step in building integrated solutions that help all businesses get the most out of digital marketing.”

The move will also helps AdMob developers and publishers increase their revenue by giving them access to a large number of new advertisers, according to Google.

With the integrated system, AdWords advertisers will be able to manage, measure and adjust search, display and video ads, reaching people on more than 2 million websites and hundreds of thousands of apps, across all screens.