The State of the Mobile Ad Industry

Bob Hammond
10.27.2012

Copyright 2012 Jumptap

Mobile Usage Exploding

2011 was first year more smartphones shipped than PCs globally Roughly 96% of U.S. population has a cell phone over 50% have a smartphone Mobile now accounts for 12% of global internet traffic, up from 1% at the beginning of 2009

Global Smartphone And PC Shipments

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Mobile Ad Spend Lags Usage

Consumers spend 23% of their time with mobile, but marketers are only spending 1% of their budget Compare this to 6% of consumer time with print pubs that are getting 29% of marketing dollars

U.S. Advertising Revenue

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Mobile Ad Spend is Predicted to Grow Rapidly

US Mobile Ad Spending 2009-2016 (millions)

$11,029

$8,710 $6,376 $4,143 $2,402

$416 2009
Source: eMarketer

$743 2010

$1,228

2011

2012

2013

2014

2015

2016

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Advertisers Tend to Look to Ad Networks and Publishers Directly

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

Exchange 12% Publisher Direct 30%

Ad Network 46%

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

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Advertisers are Most Interested in How They Can Target to Drive Results

Source: Advertiser Perceptions, Spring 2012

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Mobile Ad Targeting is More Complex than Online

Multiple Device Types, Operating Systems, & Carriers in Mobile

vs.

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Content Targeting
Running ads on a mobile site that focuses on a specific topic like Sports, Finance, or Entertainment OR Running ads with an ad network in a channel made up of multiple sites/apps on a content topic

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Location Targeting Zip Code

Targeting by zip code can be done on about 2/3 of the mobile audience who: a) Have provided their zip code to a site/app b) Are accessing mobile content through a wifi connection. Zip code is picked up from IP address.

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Romney Used Zip Targeting

The Romney campaign ran zip-code targeted ads in Iowa to drive voters to the primary polls Most impressions were delivered the day of the caucus and focused from 4:00 to 10:00 pm Could this have helped drive the 8 voters that gave Romney the win?

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Location Targeting Hyper-Local

For anything tighter than zip-level, we need longitude/latitude Only get this for about of the audience those who give a site/app permission to use their location Privacy friendly companies dont store exact location

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Consumer-Level Targeting with 3rd-Party Data

50 Million Consumer Level Profiles & Growing
Twenty 3rd Party Data Partners & Growing

Online Behavior Real World Behavior

Mobile Behavior

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How consumer-level works

Step 1 Person visits mobile site, enters email and other information Step 2 Site passes hashed email, other info (non-PII) , and anonymous ID to Jumptap and profile is created
Profile Management 3rd Party Data

Step 3 Jumptap deepens profile with info from data partners based on matched hashed email

3rd Party Data

1st Party Data

Step 4 When Jumptap sees anonymous ID again, we can target consumer using 1st and 3rd party data

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