Mobile State of the Industry Survey Digiday & Jumptap

09.12.2011

Copyright 2011Jumptap

Mobile State of the Industry Survey

Goal:
Jumptap & Digiday conduct an annual survey to create a snapshot of trends in the adoption and uses of mobile advertising.

Methodology:
Online survey across advertisers, agencies, publishers, and mobile industry players.

Respondents:
-Advertisers & Agencies: -Publishers: -Mobile Industry Players:

611
243 (43 advertisers, 200 agency respondents) 232 136

The Leader in Targeted Mobile Advertising

Advertisers & Agencies

The Leader in Targeted Mobile Advertising

79% of advertisers & agencies are engaging in mobile advertising

No 21%
Do you engage in mobile advertising?

Yes 79%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

Most are just a few years into mobile advertising

Just Started Less than a year 1-2 years 2-5 years Longer than 5 Years

11% 14%

How long have you included mobile in your marketing mix?

41% 26% 8%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

Most (69%) are Spending Less than 5% of their Marketing Budget on Mobile Advertising
70%-100% 0% What percentage of the following 50-60% 3% spending categories does mobile represent? (Total marketing spending) 40-50% 1% 30-40% 0% 20-30% 6% 10-20% 8% 5-10% 14% 1-5% 36% Too small to 33%
On Average, Mobile = 6% of Total Marketing Budget
Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

Advertisers will increase mobile marketing spend by an average of 35%

32% 21% 10% 5% 1%
By what percent will your mobile marketing spending change in 2011 (vs. 2010)?

9%

7% 3% 1% 0% 1% 3%

5%

1% 2%

Average increase: 35%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

Advertisers are spending more per campaign

Compared with six month's ago, was the average price per individual mobile marketing campaign:

Higher Same Lower Don't Know

0% 5% 10%

37% 36% 14% 13%

15% 20% 25% 30% 35% 40%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

Targeting is the No. 1 Attribute Advertisers are Looking For

Please rank the following attributes for their importance to you in selecting a mobile marketing partner:

Targeting Reach Price ROI Creative Reputation Tools Customer Service Sales Rep
6% 7% 1% 6% 2% 3% 9% 8% 10% 15% 25% 21%

47% 47% 31% 33% 49% 43% 54% 27% 18% 25%

39% 24% 52% 30%

10%

3% 0%

5% 2% 8% 19% 16% 3% 4% 10% 4% 6%

25%

15% 35% 56% 46%

0%
Very Important

20%

40%
Neutral

60%
Somewhat unimportant

80%

100%

Somewhat Important

Not at all important

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

Geographic and contextual are the most-used targeting tactics

How do you target your mobile marketing? (Pick as many as apply.)

Geographically (by region, DMA or ZIP) By keyword/content/contextual By behavioral targeting By age By gender By type of handset / device By retargeting By current location By time of day We don't target

65% 64% 54% 47% 41% 35% 25% 24% 20% 3%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

10

Biggest pain points are cross-platform reach and targeting

What is your biggest pain point in mobile advertising? (Try to pick no more than your top two.)

Planning/executing creative across multiple devices Effectively targeting audiences Measuring success (conversions) Negotiating price Campaign management Inventory (estimating/obtaining available inventory on desired sites) Assembling inventory on ad networks Other

31% 28% 23% 11% 8% 8% 5% 7%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

11

Advertisers looked to networks first, then publishers

Other 12%
What percentage of your mobile advertising is purchased via the following means?

Exchange 12%

Ad Network 46%

Publisher Direct 30%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

12

Number of ad networks per typical campaign

In a typical mobile ad campaign, how many ad networks do you use?

None One Two Three Four 5 or More Don't Know 1% 5% 3% 13%

18% 25% 35%

Average: 1.7 ad networks per campaign

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

13

Advertisers are split on CPM vs. CPC vs. CPA

What's your preferred buying method for mobile advertising? (You may select more than one answer if applicable.)

36%

36% 28%

34%

3% CPM CPC CPA Hybrid Other

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

14

Engagement & CPA are most important measures

What are your most important metrics in helping to EVALUATE your mobile campaigns?

Engagement Cost per user acquisition Reach / total number of impressions Total opt-ins Downloads CTR Foot traffic to brick-and-mortar store M-Commerce sales revenue Utility (anticipated "lifetime" of app)
28% 33% 24% 20% 23% 24% 13%

55% 56% 44% 35% 49% 51% 35% 32% 30%

33% 28%

6% 6% 11% 5% 26% 23% 18% 24% 2% 9% 9% 5%

15% 19% 37%

27% 25% 21%

0%
Most Important

20%

40%

60%

80%

100%

Moderately Important

Less Important

Not Important

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

15

Advertisers use a mix of tactics to track conversions

How do you track conversions? (Select all that apply)

Third-party tool Click-to-call (dedicated number) Lead tagging Mobile network Audit M-Commerce (direct sales) User surveys We don't track them In-house method (i.e. CTR to landing pg.) 7% 12% 25% 22% 20% 18% 17% 29%

36%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

16

Better ROI and Targeting Could Help Boost Investment in Mobile Advertising
More specific ROI metrics More targeted ad serving / placement services Better tools (make it easier to use) Handset platform standardization More comprehensive ad serving / placement Better penetration Greater control over the user's experience Consistent/reasonable pricing Better bandwidth (coverage or 3G for video) More emotive ad units Availability of an internal mobile specialist
What improvement to mobile marketing would MOST positively impact your investment in the medium? (Pick your top 3)

55% 47% 44%

33% 28% 24% 19% 17% 14% 13% 6%

Jumptap/Digiday Mobile State of the Industry Survey, 9/11 (Advertisers/Agencies N=243)

The Leader in Targeted Mobile Advertising

17

Thank You.

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