This panel will focus on how advertising is shifting to mobile and the effect on marketers, ad networks, publishers and users. How does mobile affect advertising strategies and associated ROIs for marketers? What is happening in performance based marketing?
Michael Wolf, Activate
Kiwi Inc., Google, Jumptap, Mr. Youth
Summary: Q&A style between moderator and panelists.
Q. Introductory question
- Trend in social is that the story is becoming the ad unit. People want increased relevancy in what the content is.
- Advertising is playing a clear role in fueling what services people are consuming now. When you look at metrics like click through rates, brand impact studies, and so on and so forth, mobile is 2-6X more effective than PC and online equivalents. The lack of pixels is more advantageous because you have more share of voice - on a PC, you can have a lot of different ads and browsers. On mobile, you really can only have one ad at a time.
- It's crazy to think that mobile is the most personal device we have, but we have the worst ad experience on it.
- When I talk to my team, I ask them where are people are. Where are the gamers? Where are the consumers we want? We don't want to invade every mobile phone, just the ones that we want.
- Text formats are the easiest to execute. All advertising at the end of the day is information.
- From Google's perspective, we want to be sensitive to privacy. We treat privacy very seriously.
- In the long-term, it's the point that your phone is the single-point of access for a single user. For PC and tablets, you could be sharing this. But people in the household have their own phones, and so there's less noise, better data, and better targeting.
- What's the KPI that brands are looking at? For social, it's always been about engagement. And for engagement, it's been the amount of positive feeling. However, it's not immediate. People can love a brand, but that doesn't mean they are going to go out and buy it right away. Being a traffic driver doesn't incite an action that's going to tie back to a KPI.
- Ad buying can take place from CMS software that manages community conversations across Facebook, Twitter, etc.
- If you spent 2% on social and 1% on mobile, an ad agency isn't going to tell you how to optimize those channels. They're worried about the other 97% of spend that is above the line.
- A lot of gamers on facebook create fake accounts so the don't spam their friends with FarmVille requests. So we have to almost create our own gaming environment because of this dynamic.
- With social, ads become an experience. The more packaging you do, the more incentive users have to share it. Why not have an ad go viral?"
- Windows 8 is probably the new direction. Maybe they are too early, but I think that's where the industry is going to go.
- The ecosystem is changing so fast. Every year, there is a new phone. The industry is continuously changing.
- A problem with HTML 5 is adoption rates. Luckily with Android there is a fast release cycle.
- You have advertisers who may get bidded out of fixed inventory.
Q. When you talk about data and cookies, you've been talking about front-end. In my experience, it's been connecting the front-end to the back-end. Is that an issue? If so, what do you think is the solution?
- You're right - the issue is in the availability of inventory. On Apple's platform, for example, it accepts first-party cookies before third-party cookies.
- People are moving onto IFDA which is an identifier for ads. Users will be able to turn off of tracking for specific identifiers.
- Cloud is changing this like iCloud which recognizes that you have multiples devices.
- Infrastructure is being built around this to fix it.
- Anonymous ID will happen at some point, and float through the ecosystem. I think this issue will get solved pretty soon.
- From an analytics perspective, we are changing the way tracking is done and working with clients to get digital CRM and conversation tracking. This starts with device level or channel level. It's starting.
- It's getting cheaper and cheaper because there are so many other options. A big player like Weather.com will be able to sell 10% of their inventory, but then they have to get other things done.
- DataLogics and Targus provides closed-loop analytics...those kinds of analytics is coming to mobile.
- There is much more supply than demand for mobile ads. Where you may be able to see a premium is in silos of inventory like rich media and attaching third party data.