BII MOBILE INSIGHTS: More Ad Money Is Going Mobile

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Worldwide, More Money Goes Mobile (eMarketer)
Mobile ad spending around the world more than doubled last year, eMarketer estimates, and though growth will moderate this year, double-digit increases in mobile ad spending will continue in coming years as outlays approach $37 billion by 2016. In 2012, mobile spending was at $8.41 billion. Estimates of worldwide mobile ad spending include dollars going toward display and search advertising only, and exclude spending on messaging-based formats. Spending on tablets is also included.

mobile ad spend worldwide

The fastest growth in 2012 came from North America, especially the U.S., where mobile search and display ad spending was up 220 percent. In terms of absolute dollars, North America already has an edge on other world regions, and will widen that gap considerably by 2016.

mobile ad spend by region

North America is the world leader in mobile ad dollars spent per mobile Internet user, at $30 in 2012 and a forecast of $46 for 2013.

How Automated Buying Could Save Mobile Advertising (BI Intelligence)
Programmatic buying is to digital advertising what high-frequency trading is to Wall Street. It involves computerized, algorithm-driven trading that allows for quick buying of ad impressions according to pre-set parameters.

On the desktop, programmatic or automated buying of display ads has already made huge inroads. Its advocates say that it has led to a more transparent and efficient digital ad market. But it is in mobile where programmatic buying may make the most difference. In a new report from BI Intelligence on programmatic bidding and real time bidding (RTB), we analyze the following issues:

It could help solve the CPM problem
Leveraging location data via real-time bidding
Helping to reach the holy grail of mobile advertising - controls and efficiencies
Publishers already achieve higher CPMs with RTB than they do with traditional ad networks

Click here to access the full report.

Record Retail Sales On Smartphones (eMarketer)
Last year, eMarketer estimates, U.S. retail m-commerce sales shot up 81 percent to nearly $25 billion. This year, a further increase of 55.7 percent in sales is expected, and mobile sales will account for 15 percent of all retail e-commerce.

u.s. mcommerce sales

This year, U.S. consumers will spend $24 billion shopping on their tablets, and that figure will nearly double by 2015. M-commerce sales on smartphones are lower and will grow more slowly, reaching $13.44 billion this year and $24.32 billion by 2016.

u.s. mcommerce sales by device

The rapid rise in m-commerce sales on tablets means that such purchases will account for 9.4 percent of all retail e-commerce sales this year, and 16.9 percent of the total by 2016.

Too Soon For Gloom On Mobile Advertising (USA Today)
There has been much doom and gloom written about the prospects for mobile advertising revenue. For many months the consensus on Wall Street was that the "mobilization" of Facebook was a disaster for the company's potential advertising revenue. Mobile now accounts for 20 percent of the company's revenue. Each platform – PC/laptop, tablet, smartphone, connected TV, etc. – has different types of ads. So mobile ads will be different. Geo-location ad targeting may well turn out to be a profitable marketplace for advertisers on mobile, particularly those offering coupons and deals. In this current year, U.S. consumers are using about 10 percent of their media consumption time on mobile devices, yet advertisers are spending only 1 percent of their ad spend on mobile. That's not unlike the Internet a decade ago. That gap will close.

Warner Bros. Taps Mobile Ads To Boost Movie Tickets (Mobile Commerce Daily)
Mobile has played a critical role for the studio and mobile advertising has very much become the go-to channel for the company. There is no doubt that mobile is becoming Hollywood’s rising star. Warner Bros is running full-page interstitial ads within Fandango’s iPhone application, where consumers can get tickets for the film, watch the trailer or simply skip the ad. If consumers choose to tap on the mobile ad, they are redirected to Fandango’s Gangster Squad page where they can browse showtimes, get cast information, see what critics and fans have to say about the film and check out any reviews. While the campaign is effective for what Warner Bros. is looking to achieve, the company could have added more elements to make the initiative more interactive.

Coors Light Propels Foot Traffic Via Location-Based Mobile Ads (Mobile Marketer)
MillerCoors-owned Coors Light is honing in on location with a mobile advertising campaign that drives consumers to local bars and restaurants to watch their favorite sports games. The ads are running inside iPhone applications and mobile Web sites including The New York Post and CBS News. The campaign is aimed at connecting with sports fans during playoff season. By placing location at the campaign’s core, Coors Light is able to target consumers at a local level to drive foot traffic while also keeping the brand top-of-mind.

The Apple Economy Dominates CES 2013 (The Verge)
Apple hasn’t made an appearance at CES since 1992, but its products are everywhere. This year is no exception. iPhones and iPads adorn the sides of booths for everything from Bluetooth speaker manufacturers to car audio companies. At CES an economy of Apple has developed. But as the convention floor gets more and more crowded with phone and tablet accessory companies, it’s even harder to stand out. Samsung, the largest seller of Android phones, is moving towards more consistent product cycles and phone designs, which will likely win it a greater variety of accessories from companies. That said, for Samsung, it’s tough to compete with the fact that 75 percent of people buying an iPhone also walk out of the store with a case. A genuine love for Apple products seem to guarantee accessory sales. With Samsung, it's a tougher audience.

Marketers Search For Mobile Clarity At CES (ClickZ)
To integrate or not to integrate. That is the question that marketers, brands and agencies are still debating at CES 2013. While online publishers are increasingly pushing for multi-platform buys across mobile, tablet and desktop, there continues to be a wide gap between the mobile-first, or mobile-only, crowd and those who put their efforts into fully integrated marketing campaigns that reach across platform and device. The answer for most is somewhere in the middle, but that certainly doesn't help brands get the most effective return on their ad spend. The meandering quest for the right mix of marketing and advertising to tablets, smartphones and desktops is nothing new, but the potential audiences available in each channel has shifted dramatically. Most agencies are still focused on desktop advertising, but that potential pool of online users doesn't always represent the largest potential audience for brands.

How Long Does It Take To Build A Mobile App? (Kinvey)
In collaboration with research firm AYTM, app infrastructure firm Kinvey surveyed 100 iOS, Android and HTML5 developers. They revealed that it takes about 18 weeks to build an app from start to finish. That's the same amount of time that it takes to build 1.3 Boeing 777 airplanes and to drill three 3,000 foot oil wells.

how long to build an app

Of course, there’s a subtext to this graphic. Specifically, it doesn’t have to take 18 weeks to build version one of your app. It can take a lot less time.

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