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Tablets Pass Smartphones In Global Website Traffic, Will Marketers Respond?

According to Adobe's marketing group tablet growth is outpacing that of smartphones. This trend also showed up in several Q4 reports from other online marketing firms such as Marin Software. 

Adobe says that on a global basis, mobile devices (smartphones + tablets) generated 15% of all internet traffic. Of that 15%, tablets edged smartphones with 8% of traffic. The company also says that tablet users spend much more time and are much more engaged than smartphone users: "on aver­age inter­net users view 70% more pages per visit when brows­ing with a tablet com­pared to a smartphone." 

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Among the countries measured, the UK is seeing the highest share of internet traffic from tablets followed by the US and Canada. 

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ComScore previously reported that about 36% of total US internet time is being spent on mobile devices, even though they're generating less than that in terms of overall traffic. Part of the reason for such a discrepancy may be apps, which are often not measured but where "9 out of 10" mobile minutes are spent. 

While 6 and 7-inch tablets exist somewhere between a smartphone and a full-sized tablet (i.e., iPad Classic), tablets are increasingly replacement devices for PCs. PCs still have the largest installed base and a home in the enterprise, among business users and for more selected purposes in the home. But the centrality of the PC as the gateway to the internet is over.

Using Gartner data, USAToday chronicled the decline of PC sales (which aren't coming back): 

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The "problem" with tablets is that many marketers treat them like PCs (including Google AdWords) and don't give them special attention. A study released in Q4 last year found, for example, that only 7% of retailers' websites were tablet friendly.

Yet tablet-app mobile ad creative can be very effective. In general tablet ads (in apps) are much more engaging than smartphone ads right now.

As tablets continue to gain momentum as PC replacements we may see a very odd situation develop. That is: smartphones might be given perfunctory treatment as an ad platform or otherwise neglected in favor of tablets with their larger "canvas." However, as suggested, the bulk of marketers may treat tablets like PCs and not address them with specialized ad units.

Accordingly, as mobile devices take more and more consumer time and engagement "online advertising" could become considerably weaker than it is today. 

Report: National Advertisers Getting More Sophisticated about Local-Mobile Targeting

This morning mobile ad network xAd released its year in review report. The document contains a range of information and data about the company's offerings, including the performance of ad campaigns on its network. The focus of the report is on national advertisers (rather than SMBs). And it presents a picture of marketers getting a great deal more sophisticated about local ad targeting on mobile devices.

As laid out in the report, xAd is now offering a range of local targeting flavors on mobile: behavioral, place-based, POI and event targeting.

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In the graphic above you can see that from Q1 to Q4 the number of national advertisers using more sophisticated forms of geotargeting increased dramatically from 27% to 81%. In other words only 13% of xAd's national advertiser campaigns in Q4 were using "standard geo," (zip, city, DMA). The remaining 81% were using one of the other more complex targeting methods (all involving location) such as behavioral.

Of the 81% using a more precise form of location targeting, here's the breakdown:

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In the report xAd offers performance metrics for these approaches compared to industry averages. The company says that its targeting methods provide a substantial performance improvement over traditional (non-location targeted) mobile search and display advertising.

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In particular on the display side xAd breaks down how each of its more elaborate forms of location targeting perform. Behaviorial does the best, followed by place-based targeting.

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Finally the following are the top consumer search categories for all of 2012 and the top advertiser categories on the xAd network. The latter are national advertisers and don't include small businesses. There's a general alignment across both columns but it's obviously not 1:1. 

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The company's advertisers tend to be more sophisticated about location and more inclined to experiment with it. It would be great if these advertisers were representative of the entire industry. However they're not. A recent CMO Council survey showed how many agencies and national advertisers still don't "get" location.

The CMO Council survey explored national advertiser "localization" tactics. The overwhelming majority of survey respondents (over 80%) didn’t make the connection between mobile and local:

nationals:  mobile local

Source: CMO Council/Balihoo (n=296 national marketers/agencies)

Perhaps once more national advertisers become aware of the performance lift and case studies associated with location targeting they'll wake up to its potential. In the interim those national advertisers using more sophisticated local-mobile targeting are "conquesting" their competition.

Jumptap: Samsung Will Control 60% of US Android Market This Year

New US smartphone figures came out today from comScore for January. According to the comSumer survey Android had 52.3% of the market, while Apple was at 37.8%. Those numbers represent a jump for Apple and a dip for Google since October, the comparison period. 

Apple is the top smartphone OEM in the US followed by Samsung. Their relative shares are 37.8% to 21.4%. However Samsung is the dominant Android handset OEM by far, though LG did experience an uptick because of the extremely popular Nexus 4 (the best Android handset currently on the market). 

comScore mobile subscriber data Jan

Today also mobile ad network Jumptap released its latest MobileSTAT report for February. In that report Jumptap says that from 2011 to 2012 Samsung's share of Android handsets on its network grew from 42% to 56%. Jumptap is predicting that Samsung's share will continue to grow, perhaps beyond 60% of the US Android handset market this year. 

Weaker or fading rivals HTC, LG and Motorola will have a much smaller share: no greater than 11% in any individual case according to the Jumptap prediction. The chart below illustrates the degree of Samsung's dominance in the US smartphone market. The comScore numbers above are not quite as severe.  

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Operating system share will remain relatively stable in 2013 according to Jumptap. Accordingly, Windows Phones and BlackBerry are stuck in the basement with a combined 4% share. Indeed, 2013 will be the year that Nokia needs to make a decision about whether it wants to "diversify" with Android. If these numbers hold it will be all but compelled to do so. 

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Tablets will take mobile browsing share from smartphones according to another Jumptap prediction. The firm believes that tablets will grow to capture 29% of mobile traffic while smartphones will generate 70% of mobile traffic. The tablet impact on PCs is not discussed.  

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According to an earlier report from comScore mobile now represents 36% of internet time vs. 67% on the PC. I believe tablets will continue to take meaningful share from PC usage even has they cannibalize some share from smartphones (chiefly in the home).  

Yelp Moves into Mobile Display Advertising

It has only been a few months since Yelp introduced ads at the top of search results in mobile. Now, according to AdAge, the company is adding mobile display ads to its mobile apps (and probably later its mobile website).

The first advertisers will be InterContinental Hotels (IHG) and Taco Bell. They will apparently have exclusive visibility in their respective categories throughout March. I was unable to find a live screenshot for either advertiser. However the left image below (via AdAge) shows a Taco Bell ad on the business profile page. On the right I've also captured a "search ad" and its presentation in Yelp's iPhone app. 

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What's not clear is whether Yelp advertisers will be exempt from having these new displays ads on their profiles (they are exempt from competing ads online). It will also be interesting to see how these ads perform. Will they be more brand oriented or more direct response (including special offers)? 

While Yelp users in the restaurants category, I'm guessing, are less likely to change their plans and go to Taco Bell hotel category users could well respond to an offer or incentive from IHG as they plan a hotel stay.   

It will also be interesting to see whether Yelp will sell its own ad inventory exclusively or whether the company will take third party mobile display ads. My guess is that Yelp probably would be concerned about the quality and relevance of third party mobile display ads and will be unlikely to take them for at least the near-term (if ever). 

Survey Shocker: Mobile Media Beats TV Around the Globe

Move over TV, your time at the top of the media hierarchy is coming to and end -- at least outside the US. Last week ad network InMobi released its Q4 "insights" report. The document is based on survey data drawn from more than 14,000 respondents in multiple countries around the world. However many questions don't include answers from US and UK mobile users.

The "big finding" is that around the world (US, UK excluded) time with mobile has surpassed TV. In fact time with mobile beats all other media channels. The chart below reflects aggregate findings from 12 countries, though not the US and UK. 

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The survey also discovered that 62% of respondents "engage in mobile activity" during TV watching. Accordingly TV ads in general see diminished attention because of mobile (beyond ad skipping). However this also represents an opportunity for marketers to use mobile devices to measure their TV ads' effectiveness or to generate concrete actions in response to TV ads. 

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Another "big" finding is that internet users are now going online through mobile devices in numbers equal to the PC internet or primarily use mobile to go online. This phenomenon is most pronounced in developing markets, as one might imagine. But it's also true in the US according to the InMobi data. 

According to the survey 38% of US respondents "mostly" use mobile to go online. This finding (and others) may well be biased because the survey respondents were found through the InMobi ad network: "Recruited via InMobi global mobile ad network between August and November 2012." This is therefore going to tend to be a more mobile-centric audience than the US internet population as a whole. 

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Another interesting result, this respondent pool says that it rarely clicks ads unintentionally. In contrast to some of the estimates and data floating around in the market (e.g., 40% of mobile ad clicks are "inadvertent") only a small minority said that mobile ad clicks were mistaken more than 10% of the time.

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Though these findings may not be entirely representative of internet users or perhaps even US mobile users as a whole they're still striking in multiple ways.

Back to the TV vs. mobile time spent: most marketers' ad spending and behavior fails to recognize the profound shifts in the market captured by and reflected in these data. The idea that mobile now dominates TV in terms of time spent or that mobile captures attention from TV even during TV time will be unsettling -- if not shocking -- to most brand marketers.

And most right now will have no idea what to do about it. 

By Ignoring Standards Will Rovio Save Mobile Advertising?

Rovio (formerly known as Relude) was founded by three students in Finland in 2003. In 2009, as Rovio, the company released Angry Birds for the iPhone. To call it phenomenolly successful would be an understatement. 

Most people are aware the Angry Birds games have been downloaded more than a billion times. However many in North America may not recognize that the Espoo-Finland based company is now a global entertainment brand, with "activity parks" in Europe, an Angry Birds cartoon series and a feature film coming in 2016.

The company has expanded into publishing and character licensing. It claims more than 260 million monthly active users. Rovio's YouTube channel has more than a billion views. It also says that its retail products "are now generating a major part" of its revenue. 

Against that backdrop, last month the company annouced a new "Brand Advertising Partnership Team." Rovio hired a number of advertising industry and digital media veterans including Michele Tobin, Betsy Flounders Novak, Matt Pfeffer, Todd Tran and Raphaelle Tripet. Tobin is quoted in press materials saying, “Our new Brand Advertising Partnership Team in the US will enable us to now partner directly with other lifestyle brands." Tobin is the Head of North American Brand Advertising Partnerships. 

Just as Rovio is making a big push into advertising the IAB and MMA are seeking to lock down standardized mobile ad units in the hope that standards will drive more adoption and investment in mobile advertising. That assumption may or may not be correct but the consquences of standardization at this still-early stage may be to "institutionalize" lackluster ad creative.  

On the PC, display ad unit standards were partly responsible for the development of "banner blindness," which in turn led the Online Publishers Association years later to break away and create new, bigger ad units that were more like TV and encouraged deeper audience engagement. 

Rather than standardization what mobile advertising needs is radically improved ad creative. While there are some great case studies and pockets of progressive thinking about mobile, most mobile display is unispired and even perfunctory.

Rovio is taking a very expansive view of digital advertising and may be able to do some highly customized promotions and ad campaigns that are more analogous to TV than to conventional digital display. This was the original imperative behind Apple's iAd efforts.

Rovio plans to work closely with brand advertisers both in creating novel campaigns that it hosts and in lending its characters to third party advertising. The skill and vision of its new brand team should give us hope that the digital and mobile campaigns Rovio creates will operate as models or best practices examples for the broader industry.   

Sorry PC: Tablet Buyers Want Yet More Tablets

Beyond the pure sales numbers -- tablets up, PCs flat or down -- there's a fair amount of anecdotal evidence that people are substituting tablet purchases for PCs. Adding to that, mobile ad network JiWire put out a Q4 report in which it surveyed more than 5,000 mobile consumers in the US and UK on a range of topics.

Among the findings in the report was the intention of existing tablet owners to by a second or additional tablets. The survey found that almost three-fourths of the respondents (existing tablet owners) intended to purchase another tablet.

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It should be pointed out that the JiWire audience is not necessarily representative of the general mobile user population. It tends to be a slightly more "early adopter" profile. However I would imagine this finding is a kind of leading indicator of broader consumer sentiment.

HP's announcement of a $169 7-inch Android tablet earlier this week (putting more price pressure on the entire segment) argues that tablets will become an affordable and mainstream PC alternative for a broad consumer population, not just "affluents." Indeed, this result above suggest that many households will have two, three and even more tablets: one for each family member. 

As I've argued before these devices (and smartphones) will be "primary," while the PC will be used for selected tasks and perhaps become a "secondary" Internet device in the home for large numbers of people. Developing markets may see even more dramatic patterns along these lines, with low-cost tablets simply taking the place of PCs in many instances. 

An interesting, related finding in the JiWire report is the hierarchy of tablet preferences. The findings below reflect the international nature of JiWire's results. The Galaxy tablets have not done as well in the US but have done relatively well in Europe. In the US or North America, Kindle Fire has been the most successful Android device, followed by the Nexus 7.

What's particularly interesting is the position of Windows Surface machines in the third slot, above Kindle Fire. This indicates there's healthy awareness and interest in the device. However, we'll have to see in several months whether this translates into actual sales.

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Samsung Introduces 8-inch Phone, HP Debuts $170 Android Tablet

Two more developments from Mobile World Congress yesterday that are noteworthy: HP's new 7-inch Android tablet and Samsung's Galaxy Note 8.0 tablet, which also makes calls. Yes, it's a giant 8-inch phone. 

The new HP Slate-7 Android tablet looks and acts very much like Google's (ASUS-made) Nexus 7. The device itself is unremarkable. What's significant is that HP has created a new low price point for 7-inch Android tablets.

The Kindle Fire and Nexus 7 retail for $199. The new HP tablet will cost $169.

While there have been lower-priced Android tablets in the past they've all come from "no name" device makers and had little success with the North American public. The HP brand and low price of the Slate 7 should make it a big hit and put pressure on both Google and Amazon to further lower prices to match it.

Apple opted-out of price competition for the iPad Mini when it priced the device at $329. That decision, which was heavily criticized, now looks smart as Android OEMs crank out devices whose margins will be essentially non-existent. We'll probably see ZTE and Huawei make even cheaper Android tablets in the near future. 

Samsung also released a new tablet yesterday except, as mentioned, that it's also a phone. The Galaxy Note 8.0 joins a growing range of tablets and giant phones being put out by Samsung under the Galaxy brand. Pricing hasn't been released but it probably will not be much higher than the iPad Mini. If that's correct it could potentially successfully compete with the iPad Mini, with the phone part as the differentiator ("best of both"). 

Many people are mocking the device for being a phone (and thus ridiculous held up to your ear). However there is a segment of the population that wants the combination -- and would probably use a headset to talk on the phone.

Could Firefox OS Become the "Third Mobile Ecosystem"?

Microsoft has talked a great deal about Windows Mobile being the "third ecosystem" in the smartphone universe. Of course BlackBerry would also like that distinction. And while some argue it's too little too late, it's also possible that Mozilla's HTML5-based Firefox OS will have a meaningful seat at the mobile platform table -- at least in selected markets.

Yesterday at Mobile World Congress, the company announced a wide range of mobile operators that had made a "commitment" to Firefox OS. Those carriers include: América Móvil, China Unicom, Deutsche Telekom, Etisalat, Hutchison Three Group, KDDI, KT, MegaFon, Qtel, SingTel, Smart, Sprint, Telecom Italia Group, Telefónica, Telenor, TMN and VimpelCom.

Mozilla announced that the first group of FOS handsets will go on sale in Brazil, Colombia, Hungary, Mexico, Montenegro, Poland, Serbia, Spain and Venezuela. Hardware makers Huawei, LG, ZTE and Sony have all embraced the platform -- though Samsung has publicly said it isn't interested. 

While it's unlikely to appeal to existing high-end smartphone users, it's quite possible that FOS could displace Android at the smartphone entry level in developing markets. Many carriers and OEMs are hungry for Android alternatives, which partly explains the long list of operators on board. 

Related: Twitter said that it will support FOS with an HTML5 app.

Waze Picks xAd to Deliver Location-Based Ads to Navigation App

Social navigation app Waze and xAd announced a partnership at Mobile World Congress in Barcelona today. Waze intends to deliver ads to users "along [the] designated navigation path." The company is not the first to try and do this; Mapquest initiated something similar with national advertisers a couple of years ago but in an incomplete way. 

Waze has a very engaged audience and has benefitted from the initial stumbles and challenges of Apple Maps. It was one of the alternative mapping and navigation apps recommended by Apple. Telenav also mixes location-based ads and navigation in an app. 

According to the press release this morning:  

Through the use of xAd’s proprietary technology, ads can be further targeted based on context factors such as past anonymous search behaviors while leveraging the unique functionality of Waze to serve ads at the most relevant time along their route – when the consumer is likely to see and engage with the offer…. at zero speed. 

In addition to its own social data, Waze integrates social and location-specific content from Yelp, Foursquare, Facebook and YP into its app. Users can choose results from any of these sources when they conduct a local search via Waze.

According to the press statement xAd will be the exclusive provider of both search and display ads in Waze. I was unable to find any example ads this morning in the app. I'm sure the integration will be thoughtful however. Waze recognizes the need to preserve the integrity of the user experience. Too many or irrelevant ads would risk alienating its audience.   

Report: Mobile Now More than One Third of Digital Media Time

Metrics firm comScore is out with a couple of "Digital Future in Focus" reports. They collect the company's data from 2012 into a narrative about marketplace trends. In terms of mobile much of what's in there is familiar: smartphone penetration crossing 50%, tablet ownership growth, Android growth, the rise of apps and so on.

One stat, however, that caught my eye is in the graphic to the right: 37% of digital media time is now spent on smartphones and tablets. By contrast 63% is on the PC. This one data point shows how dramatic the shift to mobile/personal devices has been, in a relatively brief time frame. Most marketers have not fully caught up however.

Top 25 sites

Another interesting chart (above), previously released, is comScore's Top 25 digital properties. It shows PC vs. mobile usage (uniques) for the top sites, as well as the incremental lift provided by the mobile audience. The table also reflects substantial overlapping usage. However in selected cases (i.e., Pandora, Weather.com) there's a major boost in audience via mobile. 

In the report comScore also documents the erosion of PC usage in select "mobile centric" categories. In other words, there's a shift to mobile usage for some part of the audience: 

We have begun to see a marked shift in usage patterns on the traditional desktop-based web. While most mobile content usage remains incremental to existing web behavior, certain content categories particularly well-oriented to mobile usage have witnessed material softness in top-line usage from desktop computers. Over the past two years, categories such as Newspapers (down 5 percent), Maps (down 2 percent), Weather (down 12 percent), Directories (down 23 percent), Comparison Shopping (down 4 percent) and Instant Messengers (down 52 percent) have seen declines despite a 5-percent increase in the total U.S. internet population over that time.

Again the categories that have seen some or substantial migration to mobile: 

  • Instant messengers (PC traffic is down 52% YoY)
  • Directories (23%) -- this category isn't fully defined in the document
  • Weather (12%)
  • Newspapers (5%)
  • Maps (2%)
  • Comparison Shopping (4%)

Opera Buys Skyfire for $155 Million But Is It Already 'Game Over'?

Browser-maker Opera announced that it's buying much smaller rival Skyfire for approximately $155 million in cash and stock. Skyfire's chief claim to fame is video optimization. Opera also said this week that it was approaching 300 million monthly users across all its platforms (computers, mobile phones, TVs and other connected devices).

The 300 million monthly uniques figure is very impressive; however it masks a downward trend in Opera's usage in mobile. As Android and iPhones push out feature phones (except in developing markets) and BlackBerry devices, Opera is seeing its global browsing share decline.

According to current StatCounter data the company's position is deteriorating.

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In the course of a single year Opera has gone from being the leading mobile browser around the world, with a 23% share, to number three and a 15% share. This rapid deterioration probably explains the company's recent decision to switch the core of its browser to WebKit as well as the Skyfire acquisition. 

WebKit is behind both Safari and Chrome, though not IE. Opera's adoption of WebKit will enable its browser to remain relevant in a smartphone world dominated by iOS and Android.

Opera's business, since its 2010 acquisition of AdMarvel, also includes mobile advertising. And in its recent Q4 State of the Mobile Web report, intended to showcase the company's global scale and advertising chops, we discover that 64% of global ad impressions are still coming mostly from the US, though international is growing.

Revenue Graphic

In the US Opera holds a less than 1% mobile browser market share according to StatCounter. In Europe it's roughly 7%. In Asia it's 24% but Opera was just passed by the Android browser. Africa is the only region where Opera continues to lead.

However Android's global growth is a direct threat to the company given that most users will rely on the device's own browser or Chrome. By the same token most users on the iPhone rely on Safari. Currently Opera has little to offer that will clearly differentiate it from either the Android or iPhone browsers. That's partly what the Skyfire bet is about -- mobile video optimization.

However by itself that's not going to be enough to keep Opera from continuing to lose usage.

Survey: Users Look to Mobile Websites for in-Store Customer Service

Earlier this week ForeSee Results, which measures online consumer satisfaction, released a new "Mobile Satisfaction Index." Based on a survey of 6,000 US adults in Q4 2012 the company sought to rank retail mobile sites and apps. Amazon was the winner, followed by Apple.  

Below is ForeSee's list of top 25 ranked retailers and e-tailers according to consumer mobile satisfaction: 

ForeSee Results mobile satisfaction

There's nothing surprising on the list above. Amazon has a great brand and has made huge investments in mobile. What's perhaps surprising is the absence of eBay from the top 25. 

ForeSee also found that 70% of survey respondents were using their mobile phones in stores during shopping. Other surveys have shown higher numbers. In addition, if smartphone users are isolated the numbers are certainly higher (above 80% or 90%). 

Regardless perhaps the most interesting survey finding is that a majority of mobile users said they accessed the retailer's website (though mostly not their apps) while in the store. 

How did you use your mobile phone while in retail stores this holiday season?

  • 62% accessed the store's website on their phone (satisfaction for this group is 79)
  • 37% accessed a competitor's website on their phone (77)
  • 21% accessed a shopping comparison website on their phone (77)
  • 20% accessed the store's mobile shopping app on their phone (79)
  • 11% accessed a competitor's mobile shopping app on their phone (77)

Again: 62% accessed the store's website on their phone. People have always assumed that in-store mobile usage is about buying on Amazon or getting competitive price information. It turns out, not exactly. 

Many of these users are looking to a retailer's mobile website to perform traditional in-store sales or customer service functions. People want more information about products (e.g., reviews) and they're looking for it via the mobile web rather than trying to find a sales person or service rep in the store.

It means that retailers need to develop their mobile sites and apps with the idea that users are often in their own stores and these sites/apps are more likely to be in-store shopping aids than e-commerce sites. They need to think of the in-store experience now as multi-channel. Retailers should also aggressively be using their mobile sites to drive downloads of their apps which should offer an even better experience.

The app then becomes a mobile marketing and loyalty tool for the retailer. 

This may not sound like anything other than self-evident information or advice. But the heavy in-store context of mobile app/site usage requires a shift in retailer thinking. Rather than a parallel or independent channel retailers must consider mobile as a kind of sales assistant that can and should augment the in-store experience as much as anything else. 

The Miserable State of (Local) Mobile Ad Creative

Location-based ad network Verve Mobile announced a Series C investment this morning of $15 million led by Nokia Growth Partners. This brings to more than $21 million the funding raised to date by Verve.

The company is one of several location-based mobile ad networks. An incomplete list of others includes xAd, YP, LSN Mobile, Telenav/ThinkNear, Marchex. In addition, all the major mobile ad networks offer varying flavors of geotargeting.

While local-mobile advertising holds enormous promise, most mobile display revenue forecasts associated with the segment are overblown for many reasons. They often contain overly simplistic assumptions or fail to recognize the complexity of the space and challenges that must be first overcome to realize its potential. 

In addition to local "infrastructure" challenges and the difficulty of proving ROI from mostly offline conversions, a major challenge facing local-mobile advertising is poor or sloppy mobile ad creative. Weak mobile creative is a problem with mobile advertising in general but it's especially true in the local space. The following are a few examples of the "current state of the art." 

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Beyond the fact that there's no call to action on the Tiffany's banner above, the landing page showcases various types of jewelry for e-commerce sales. However it's highly unlikely that a consumer would click on the ad and then buy a necklace or other jewelry item within the ad. People might go to the Tiffany's site later and buy there. 

However, what's much more likely is that someone would peruse the jewelry online but buy later in a local store. Unfortunately the store locator is yet another page down and generally buried. It should be much more prominently displayed on the landing page and connected to maps and directions. 

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The ad above was presented on the AP news app. One problem is that the ad copy is small and challenging to read. However, what's more problematic is the way that the ad dumps users into an HTML5 version of Google Maps without any context, branding or additional information. 

It's a map to lead you to a dealer (one infers) but you don't actually know what you're looking at or how it connects to the ad clicked on.  

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Immediately above is a Radio Shack ad that appeared in a local newspaper app. Like the Tiffany's ad it's really promoting e-commerce. Radio Shack has hundreds of local stores but nowhere -- not anywhere -- in the ad is there an obvious store locator. Again, the majority of users are unlikely to buy directly through the ad. The lack of a store finder is a missed opportunity. 

These are just three recent examples among many others of the many problems with mobile display and local-mobile display advertising in particular. 

Google Introduces Enhanced AdWords Campaigns to Boost Mobile Ads (and Revenues)

Google today introduced some major changes to AdWords to both make it easier to manage campaigns across multiple screens and to enabled more "nuanced" bidding and targeting. There's a very complete discussion at Search Engine Land.

A cynic or skeptic would argue the changes are directed primarily at bringing more advertisers into mobile and bringing mobile revenues up for Google (although advertisers can effectively still opt out of mobile). 

One of the major changes is that advertisers can now make mutiple bids ("bid adjustments") for a single ad based on variables such as device, location and time of day. Mobile bids will be set at desktop/PC levels -- mobile CPCs are lower than desktop CPCs -- and advertisers will have to actively reduce them if they want to bid less for mobile clicks. 

Some may see this as "strong arm tactics" by Google to raise mobile search revenues. However the company believes it's simply adapting AdWords capabilities for a new multi-screen environment.  

Below are some of the main bullets (slightly edited) from the Google Inside AdWords blog explaining the new features: 

Bid adjustments: With bid adjustments, you can manage bids for your ads across devices, locations, time of day and more — all from a single campaign.

Example: A breakfast cafe wants to reach people nearby searching for "coffee" or "breakfast" on a smartphone. Using bid adjustments, with three simple entries, they can bid 25% higher for people searching a half-mile away, 20% lower for searches after 11am, and 50% higher for searches on smartphones. These bid adjustments can apply to all ads and all keywords in one single campaign.

Dynamic creative: People on the go or near your store may be looking for different things than someone sitting at their desk. With enhanced campaigns, you’ll show ads across devices with the right ad text, sitelink, app or extension, without having to edit each campaign for every possible combination of devices, location and time of day.

Example: A national retailer with both physical locations and a website can show ads with click-to-call and location extensions for people searching on their smartphones, while showing an ad for their e-commerce website to people searching on a PC — all within a single campaign.

New conversion metrics: Potential customers may see your ad and download your app, or they may call you. It’s been hard for marketers to easily measure and compare these interactions. To help you measure the full value of your campaigns, enhanced campaigns enables you to easily count calls and app downloads as conversions in your AdWords reports.

Example: You can count phone calls of 60 seconds or longer that result from a click-to-call ad as a conversion in your AdWords reports, and compare them to other conversions like leads, sales and downloads.

All of these enhancements are designed to make search advertising both easier and more effective for marketers in a larger, more fragmented device universe. By the same token Google is trying to generate more money from its mobile advertisers and clicks, something it has struggled somewhat to do. 

In its last quarterly earnings Google reported that average CPCs decreased 6 percent vs. Q4 2011 (attributable almost exclusively to mobile). 

With Its $12 Billion Marketing Budget, Samsung Now 'Owns' Android

I've written here and elsewhere about the fact that Samsung is increasingly the dominant global Android OEM. Samsung has ridden the Android wave to huge profits and near-global domination of the smartphone market. However the company is ambivalent about Android.

As Benedict Evans points out Samsung isn't promoting the Android brand and doesn't really mention Android in its multi-billion dollar "Next Big Thing" marketing campaign. Accordingly Evans contends that Samsung's Galaxy brand has greater recognition than Android itself. This conclusion is based on Google Trends search data, which may or may not be accurate as a reflection of actual brand recognition or demand.

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There's plenty of other evidence in the market to support Evans' argument, however, including the above Android OEM comparison chart from ad network Millennial Media. Another data set from AppBrian also supports the same conclusion: 

With the possible exception of Huawei all the other Android OEMs are in decline (re market share) including and especially HTC, which is shifting its strategy to focus on emerging markets because it can no longer compete effectively in North America and Europe. 

What happens when Samsung so totally dominates the Android landscape that it can start using that leverage against Google or creating its own "forked" version of Android independent of Google (as Amazon has done with Kindle Fire)? That's presumably why Google is working on the "X-phone" through Motorola -- to try and create a viable rival to the Galaxy. But will Google be willing to go toe-to-toe with "partner" Samsung in terms of marketing dollars? 

No is the short answer. Samsung reportedly spends roughly $12 billion annually on marketing its mobile devices. That fact alone makes it hard for any other Android OEM, even Google-Motorola, to compete. Only Apple is really in a position to compete with Samsung. 

Study: Low Awareness of Digital Wallets Other than PayPal

Online measurement firm comScore released data from a new survey about digital wallet awareness and acceptance among US consumers. The survey was conducted in November 2012. It underscores familiar themes in the existing coversation about digital wallets: most consumers are largely unaware of the offerings, but those that are have security concerns.

In the context of this research "digital wallet" means online and mobile. To that end, the survey data showed that PayPal and Google Wallet were the only two payments products that enjoyed meaningful consumer awareness. In terms of usage, only PayPal has seen any real adoption -- largely because of its long established online history. 

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Echoing many other surveys the comScore data found that security was a concern for many users. Like almost every one before it, the study concludes that consumers need to be educated about the overall benefits of digital wallets and the features that make them more secure than conventional credit card payments.

In a Q3 2012 survey we found very limited interest in mobile payments. 

How interested are you in using your mobile phone to pay for things, and replace cash or your credit cards?

Survey: mobile payments

Source: Opus Research (August, 2012; n=1,501 US adults)

From a demographic standpoint, people under 45 were considerably more interested in mobile payments than people who were older. Similarly, a recent survey (n=1,155 US adults) by the Raddon Financial Group found that that younger adults (Gen Y) are most likely to be interested and most likely to see value in mobile wallets.

Mobile wallet interest

Source: Raddon Financial Group (2012)

A recent survey from Harris Interactive is more bullish on the outlook for mobile payments than was ours:

“How interested are you in being able to use your smartphone to process in-person payments via tapping a special receiver, rather than using cash or payment cards? 

  • Very interested in using my smartphone instead of cash or cards: 8%
  • Somewhat interested in using my smartphone instead of cash or cards: 19%
  • Not very interested in using my smartphone instead of cash or cards: 12%
  • Not at all interested in using my smartphone instead of cash or cards: 43% 

This was the full mobile-user population. The following were the smartphone-only responses: 

  • Very interested in using my smartphone instead of cash or cards: 16%
  • Somewhat interested in using my smartphone instead of cash or cards: 28%
  • Not very interested in using my smartphone instead of cash or cards: 16%
  • Not at all interested in using my smartphone instead of cash or cards: 30% 

While the benefits of "horizontal" wallets and mobile payments solutions (e.g., Google Wallet) are often unknown or ambiguous to consumers, what will drive (and is now driving) mobile payments adoption are "point solutions" that are highly specific. In these scenarios the benefits are concrete and self evident: 

Apple the OEM Now Driving Most Mobile Internet Traffic Globally and in US

Amid all the hand wringing over Apple's "impending decline," it's interesting to note new traffic metrics from StatCounter that show Apple driving more mobile Internet traffic than any of its rivals. This is partly a product of the iPhone 5's success during the holiday quarter. 

The StatCounter data reflect mobile OEM market share based on actual Internet traffic. This stands in marked contrast to most smartphone and tablet market share estimates (from IDC, Gartner, comScore and others) that are based on shipments or consumer surveys. There are a few actual traffic measurements out there (e.g., Chitika) but not many.

That's why StatCounter's data (as a reflection of actual user behavior) are so interesting. Shipments is an inherently flawed metric that may or may not correspond to actual sales to end users. 

The "headline" being used along with this new StatCounter OEM data is that Apple has overtaken Nokia as the company driving the most Web traffic on a global basis. Samsung is third. In the US Apple is much farther ahead of rivals, including Samsung. Nokia by comparison drives just over 3% of mobile Web traffic in the US market.

Top 10 Mobile Vendors (Global)

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Top 10 Mobile Vendors (US)

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It's interesting to compare the above numbers to "mobile OS" and mobile browser figures from StatCounter. The vendor and OS numbers are essentially identical in Apple's case, as they should be. The browser numbers are not. They suggest that roughly 10% of iOS users in the US market are using browsers other than Safari. 

Top 10 Mobile Operating Systems (US)

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Top 10 Mobile Browsers (US)

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On a global basis the Android OS has a greater share of traffic in the aggregate than iOS: 37% to Apple's 26%. 

Top 10 Mobile Operating Systems (Global)

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It's not clear to me whether StatCounter captures and includes apps in its traffic estimates -- I believe it's just conventional Web traffic. Regardless, traffic is a much better metric to discuss than handset or device shipments in terms of the influence and importance of the competing mobile platforms.

Super Bowl Advertisers' Missed Mobile Opportunity

While a few ads shown during yesterday's Super Bowl were noteworthy most were a bust -- and largely a waste of the nearly $4 million it reportedly cost to buy airtime during the game. Matt McGee at Marketing Land did a nice job of tracking and reporting on social media mentions or "calls to action" on most of the ads (Twitter and hashtags were most common).

Oreo is emerging as one of the big winners, with its fast reaction to the game's 30+ minute power outage.

Yet for all the energy put into associating ads with hashtags and social media, there was an almost total absence of explicit mentions or references to mobile. The only mobile app mention that I was aware of came on a quickly shown credits screen during an ad for the forthcoming Star Trek sequel (upper right image). Exact Target confirmed my own informal sense of that yesterday. 

A large percentage of people watching the game in the US were smartphone owners. As you already know, and as Nielsen and others have confirmed, there's a very high level of "second screen" behavior among smartphone owners. These Super Bowl ads were a huge opportunity to drive app downloads for brands. And other than the Star Trek mention, which raced by in less than a second, nobody talked about apps at all. 

One might have expected real estate company Century 21 to mention its mobile site or app in its several mediocre commercials given that so many people use mobile during their house hunting. But they did not. I could go on with numerous other examples. 

Perhaps the assumption among the agencies that produced these commercials was that people would be using Twitter or Facebook on their smartphones or tablets and the mobile call to action was thus implied. Yet it's more likely that marketers didn't really know what to do with mobile specifically and so were simply silent on the subject. 

How Damaging Would 'Do Not Track' Be to Mobile Advertising?

The digital advertising industry opposes "Do Not Track" (DNT). No surprise there. Indeed, the industry went "ape shit" (to use the vernacular) when Microsoft declared that IE 10 in Windows 8 would be set to DNT by default. Yahoo and the The Digital Advertising Alliance, a trade group comprised of the American Association of Advertising Agencies, the IAB, the DMA, the Association of National Advertisers and the American Advertising Federation, said they would simply "ignore" IE 10's DNT default settings. 

The rationale ostensibly was: "Microsoft is making a decision for the consumer; this isn't the consumer's decision." However another reason was that DNT fundamentally threatens behavioral targeting, profiling and retargeting.

A widely held view in the online advertising industry is that consumers, if they fully understood the benefits of targeting, would willingly accept it in exchange for more relevant ads. There's mixed evidence on this point.

In a Q1 2012 survey of roughly 2,000 US adults the Pew Internet & American Life Project found that 68% of respondents didn't want to be tracked and targeted while 28% were comfortable with it "because it means I see ads and get information about things I'm really interested in." Thus two-thirds of these people were explicitly rejecting the notion of trading privacy for more relevant ads. 

 Online targeted advertising

This morning the US Federal Trade Commission released a report on mobile privacy. It makes a boatload of recommendations to developers, OEMs/platform providers and ad networks. Without listing them out in detail, they mostly focus on education and disclosures. However the FTC also recommends that platforms (iOS, Android, Windows, etc.) adopt a global DNT capability that would block third parties from collecting information about them (including location).

Here's what the FTC says about DNT in the report:

Some consumers may not want companies to track their behavior across apps. Indeed, one survey found that 85% of consumers want to have choices about targeted mobile ads. A DNT mechanism for mobile devices could address this concern.

Accordingly, Commission staff continues to call on stakeholders to develop a DNT mechanism that would prevent an entity from developing profiles about mobile users. A DNT setting placed at the platform level could give consumers who are concerned about this practice a way to control the transmission of information to third parties as consumers are using apps on their mobile devices.

The platforms are in a position to better control the distribution of user data for users who have elected not to be tracked by third parties. Offering this setting or control through the platform will allow consumers to make a one-time selection rather than having to make decisions on an app-by-app basis. Apps that wish to offer services to consumers that are supported by behavioral advertising would remain free to engage potential customers in a dialogue to explain the value of behavioral tracking and obtain consent to engage in such tracking.

Apple has already begun to innovate with a DNT setting on its platform. Apple’s iOS6 allows consumers to exercise some control over advertisers’ tracking activities via the “Limit Ad Tracking” setting. Although the setting could be more prominent, this is a promising development, and we encourage Apple and other platforms to continue moving towards an effective DNT setting on mobile devices that meets the criteria we have previously articulated for an effective DNT system: that it be (1) universal, (2) easy to find and use, (3) persistent, (4) effective and enforceable, and (5) limit collection of data, not just its use to serve advertisements. We will continue to have discussions with stakeholders in the mobile marketplace on this important issue.

If such a platform-level DNT capability was available -- and obvious -- to smartphone and tablet users, I suspect that a majority of them would adopt it, as the Pew data above suggest. Perhaps a meaningful minority percentage of users would accept tracking/profiling as the price of more relevant advertising. But I still believe it would be less than 50%.

Of course one of the things that users don't understand is that they'll get ads regardless -- just lower-quality ads.