Archive | May 2013

Mondez International goes Mobile!

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In a bid which generated some excitement in the mobile marketing world, the $35Bn American food and beverage company Mondez International (formerly known as Kraft Foods Inc.), late last year revealed a plan to spend 10% of their global marketing budget on mobile.

American consumers spend more than 23% of their daily media consumption on a mobile device. Yet most marketers dedicate less than 1% of their media spend to mobile. Bonin Bough, vice president of global media and consumer engagement at Mondez International said.

“We believe that we can create the future in 90 days and if there’s one thing that we learned, is that pace is important. We do not have the ability to sit around and wait.” Bough said in reference to the company’s “Mobile Futures” contest which selected 9 technology startups out of 126 applications tasked with generating the most innovative mobile marketing applications for promotion of Mondez.

In a continuation of this new push for mobile, and as a clear demonstration of Mondez’ commitment to the new strategy, AdvertisingAge today reported that the company has concluded a significant new mobile media deal with Google covering 16 countries over a one-year period.

“We’ve been urging mobile readiness at Google for three-plus plus years, and this year has been the year where it seems like the light has gone off over most marketers’ heads,” Eileen Naughton, VP of global sales at Google, said in an interview.

It is estimated that 67% of the global population will have a mobile phone and nearly half of the population will have smartphones by 2016, and more traditional consumer goods companies are now starting to realize the immense marketing potential this transformation is creating.

“ThumbAd utilizes cutting-edge contextual targeting to provide our customers with truly personalized location-based advertising. We see an enormous increase in the awareness and interest in mobile advertising, and the developments on the international stage such as the new Mondez strategy will surely be replicated in the Scandinavian markets” said Carl Åhslund, co-founder of ThumbAd.

Brands Buy Real-Time Mobile Ads Based on the Weather

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Location based mobile advertising is proving to be increasingly popular with advertisers as they discover the additional value it brings to both themselves and customers.

In a recent interview with AdWeek, Ace Harware’s marketing director, Jeff Gooding, explained how location based mobile ads have become a success with his company. Recently they tested the performance by pitching products like shovels after snowstorms, based on location data, and now plan to mimic this with garden products once spring time comes.

“We want to reach folks in real time and help them deal with the weather as it’s coming,” said Mr. Gooding. “The idea of helping has traditionally been part of our brand, and it’s becoming a part of our mobile strategy.”

In a similar attempt to reach customer at the right time and in the right place, Taco Bell ran a mobile ad campaign on the TWC app (Twitter and The Weather Channel) only when local temperatures exceeded 48 degrees, as they only wanted to purchase inventory when their customers were likely to be outside looking for a bite to eat.

“This is a new tactic for us. For the right products, like food, it makes a ton of sense.” said Eric Perko, associate media director at Digitas, Taco Bell’s digital agency.

Indeed, for the restaurants niche in particular, mobile may finally be fulfilling its long-held promise of digitizing old advertising staples like roadside marquees and sidewalk chalkboards. In an extreme weather-related example, Andrew Rosenberg, marketing director for New York eatery The Meatball Shop, nimbly authored a post on his brand’s Foursquare account five months ago to let customers know when his Hurricane Sandy-rattled business would reopen.

“A lot of them without power couldn’t get on their computers but still had juice in their phones,” said Rosenberg. “The minute we opened our doors again, people started coming in.”

Contextual ads based on location, weather, and behavior, are clearly on the rise due to their proven effectiveness, so expect to see increased innovation and development in this area.

Are Mobile Ad Networks Under Threat?

Mobile Ad Networks aggregate advertising inventory and match it with advertisers, much as online ad networks do. Billions of consumers is carrying around Internet-connected mobile devices for up to 16 hours a day whereof the Mobile audience has exploded. Now it´s all about targeting the audience – and give them what they deserve!

“Ad networks play an important role in mobile [because the] audience is fragmented across a large number of devices and publishers,” says Michael Collins, CEO of mobile ad agency Joule. “The role of the network is that they are able to aggregate audience at scale. There are many [networks] all at different stages of their evolution, some stronger and more robust, but still a good amount of innovation is going on in the market.”

images-8Mobile ad networks face pressure from demand-side platforms (DSPs). These function similarly to ad networks, in the sense that they help match advertisers with inventory. Core RTB tasks is to selects the ad network that can best monetize ad space and impression to optimize eCPM between Publisher and Advertiser. The itchy part for DSP´s, is their lack of capability to laser-focus on utilizing customer data as the key ingredient of each customer-facing activity!

This is the bottom line conclusion from a very interesting BI Intelligence report;

  • Only the largest publishers have the size and scale to go it alone in mobile advertising.
  • Mobile ad networks are being squeezed by ad exchanges and DSPs (demand-side platforms), but can maintain their central position if they keep an edge in audience targeting and measurement. 
  • Many brands lack the mobile destinations necessary for an effective mobile ad campaign.
  • Mobile marketing can produce as much or more revenue for agencies as mobile advertising alone.
  • Mobile native ad formats are finding success with TV-style content break ads, and opt-in reward schemes.

I could not agree more on the conclusions in this report. Mobile Ad Networks can perfectly well live side by side with DSP´s and Ad Exchanges assumed a unique positioning within a crowded ecosystem. We believe in keeping everything simple and pure by matching audience and brand seamlessly, says Tor Olav Haugen, co-founder in ThumbAd.com. Combining Mobile Ad Networks with RTB will actually benefit both Publisher [improved eCPM] and Advertiser [right audience]!

According to Mr. Haugen ThumbAd is offering three Ad products to Advertisers and Agencies adding value to both Publisher and Advertiser;

  1. Broad reach across multiple Publishers delivering Mobile Display Ads
  2. Advanced targeted advertising based on relevance, real-­time targeting and contextual behaviour
  3. Local advertising based on the end user’s physical location

About

ThumbAd.com is the owner of a successful and innovative Mobile Advertising Platform. The company monetizes, add value and deliver additional advertising revenue to Publishers, and offer a unique expertise for Advertisers. The Company delivers Better Mobile Click Through Rates by Contextual Relevancy and Real Time Targeting.

Extraordinary Mobile Insight & Real Time Bidding Next Up!

Real-time bidding, or RTB, is a style of programmatic buying in which digital advertising opportunities are auctioned off in real-time. The auctions take place in milliseconds as advertisers bid on the right to show you an ad immediately after you open an app or click to a new web page.

On the desktop it’s a powerful technique to deliver the right ad to the right consumer at the right time and place. On mobile, it could be more powerful since consumers take their devices everywhere.Mobile Real-Time Bidding (RTB) Ad Ecosystem

RTB combined with “big data” real time analytic´s gives an extraordinary insight, creating a win-win scenario for Advertisers and Publishers, according to Tor Olav Haugen, co-founder in ThumbAd.com. In order to perform in the Mobile Advertising space of today, longterm focus is required in order to deliver higher retention rates, customer lifetime value growth, and revenue growth to our customers.

Leveraging on customer data;

  • Individual level tracking of each customer and visitor, rather than the “impression” or the “traffic data”.
  • Tie numbers to actual customers rather than looking at them as “uniques”;
  • track customers across multiple devices Track a single customer everywhere, across all their devices, no matter how many there are
  • Be laser-focused on utilizing customer data as the key ingredient of each customer-facing activity

However fast growing Mobile is, the user numbers are still not yet big enough for publishers to dedicate direct-sales resources to the channel, and given the legwork and tech complications that still surround it, there’s just no simple way to combine the desktop-plus-mobile buy.
premium publishers realizing they could cut out the legwork and overheads of direct deals, but apply exactly the same stringent rules around transparency, pricing and exclusivity, while fully leveraging their data assets. And though mobile real-time bidding is embryonic, as are private marketplaces in mobile, there’s no reason why exactly the same improvements in efficiency couldn’t be applied to this channel, too.

In conclusion, if mobile advertising were a simple bolt-on to programmatically traded display, complete with quality mobile sites and apps, and similar controls to the ones publishers are used to when they sell direct, the sky becomes the limit – according to Jay Stevens is senior vice-president and general manager, international, at the Rubicon Project

About

ThumbAd.com is the owner of a successful and innovative Mobile Advertising Platform. The company monetizes, add value and deliver additional advertising revenue to Publishers, and offer a unique expertise for Advertisers. The Company delivers Better Mobile Click Through Rates by Contextual Relevancy and Real Time Targeting.
The company’s web site contains additional information. ThumbAd has office in Oslo, Stockholm, Turku, Moscow and Irvine. For more information please JoinUs@ThumbAd.com.

Mobile Search & Ads Goes Hand in Hand

Marketers spent $2.8 billion in 2012 on mobile search ads, compared with $1.6 billion in 2011 and $0.7 billion in 2010. Growth rates have slowed significantly, down from 195% in 2010 to 127% in 2011 to 68% in 2012. Google still dominates the market with gross revenue of $2,166 million, and a gross market share of 79%.

IDC’s U.S. recently published a mobile advertising report with some interesting findings;

  • Strong growth in mobile advertising spending in the United States continues, even if annual growth rates continue to decline: the market grew by 88% in 2012 (down from 125% in 2011) to a total of $4.5 billion (up from $2.4 billion in 2011). Mobile market share within all digital advertising reached 11% in 2012, up from 7% in 2011. For 2013, IDC expects a growth rate of 55–65%, with spending coming in around $7 billion, for the United States.
  • Mobile display advertising has increased its market share of total mobile spending by no less than 8 percentage points to 39%, versus 61% for search ads, in 2012. Mobile display ads attracted $1.7 billion in 2012 compared with $0.7 billion in 2011. Growth rates have picked up again in 2012 after a dip in 2011. They were at 134% in 2010, 118% in 2011, and 132% in 2012.

Source: Google/Nielsen Life360 Mobile Search Moments

  • Among mobile publishers selling display advertising, Facebook was the number 1 company in 2012 ($234 million gross revenue), followed by Pandora ($229 million) with Twitter coming in third ($117 million). In the ad network segment, not much has changed. Google still holds the top spot ($243 million). One change is that Millennial Media ($151 million) has taken over Apple ($125 million) to claim the number 2 spot. Jumptap remains number 4 ($90 million).

Karsten Weide, Vice President of Media & Entertainment at IDC.

Networks, especially independent ones, are entering a difficult phase, in which, with an ever smaller share of revenue, they’ll have to compete with publishers, which will only grow in strength.

Tor Olav Haugen, CEO in ThumbAd.com;

Networks must rethink their approach vs Publishers and Advertisers. Without delivering added value at eCPM, Ad Inventory or CTR I´m afraid many Ad Networks will loose market-shares. ThumbAd has a proven model to meet the supply and demand in the market adding substantial value to both Publisher and Advertiser.

About

ThumbAd.com is the owner of a successful and innovative Mobile Advertising Platform. The company monetizes, add value and deliver additional advertising revenue to Publishers, and offer a unique expertise for Advertisers. The Company delivers Better Mobile Click Through Rates by Contextual Relevancy and Real Time Targeting.
The company’s web site contains additional information. ThumbAd has office in Oslo, Stockholm, Turku, Moscow and Irvine. For more information please JoinUs@ThumbAd.com.