From a business perspective, Big Data seems like the ultimate way to target your customers. And yes, to some extent, it is pretty remarkable.

Management Consultant and Theorist, Geoffrey Moore, said it best: “Without Big Data, you are blind and deaf in the middle of the web freeway.” But before you spend your entire marketing budget on data research, outlined below are three pros and cons of using Big Data in digital advertising.


  1. Strategic Insights

Big Data is changing the game from one of guessing to one of certainty. Behavior-driven data enables companies to give customers exactly what they want; which may even include products or services they didn’t even know they wanted before they were brought to their attention. By leveraging insights gained by Big Data, you can now carefully tailor your offer to the right people.

In other words, Big Data is about understanding consumer needs and satisfying them with your product or service.

Furthermore, incorporating Big Data into your creative framework indicates to your clients that your company maintains the balance of insight-driven ideas with sound execution, sending them a clear message saying: we know and care about you.

Which brings us to the next benefit-

  1. Personalization

Advanced analytics have created the ability for personalized, targeted marketing campaigns, where companies are directing specific messages to specific segments of their target audience at exactly the right times.

A McKinsey study found that businesses who utilized data-driven personalization delivered five to eight times the ROI on their marketing spend, and according to Zest Digital, 78% of customers believe that custom content shows the company is committed to building a relationship with them. Using Big Data renders the purchase decision-making process an easy one; for who doesn’t want to invest in a company that invests in them first.

  1. Marketing Attribution

Through various technologies, data not only provides information on the customer, but how he or she interacts with your brand digitally. By tracking these interactions, you get the opportunity to attribute leads and conversion to specific advertising platforms and channels, optimize your campaigns and increase ROI. Data provides sound facts on what works and what doesn’t, what your potential clientele responds to and what they ignore- confirming your money is being well spent.

However, before you sign the check and commit your marketing dollars to Big Data, take the following into account.


  1. No Insight into the WHY

Though data analytics certainly shows customer patterns and usage, it gives no insight or explanation as to the why. Without understanding WHY your customers interact with you, you’ll find it hard to maintain your competitive advantage. Relying too heavily on the associations found through Big Data means you’re at risk for discovering false truths or even creating the truths that you wish to see. Don’t get caught up merely in the numbers. Your customers should be first, understand why they take certain actions, not just their end results.

  1. It Cannot Predict the Future

Think of Big Data more as a history measure. You need to be forward-thinking to keep ahead of the market curve, and that cannot be accomplished by relying solely on Big Data.

Use other forms of market research such as benchmarking, interviewing industry leaders and researching marketing trends to fully understand your customers.

  1. Data Can Be Deceiving

Not all data is created equal: good data has to be specific to your needs.

With so much information out there, one can easily find any set of data to support any argument. The tools are available to help you segment the data, but it is your responsibility to make sure you are asking the right questions. Consider where the data is coming from, and how it is collected- before changing your marketing strategy to comply with its findings.

In conclusion, there is no doubt that incorporating Big Data in your arsenal of tools will have a positive effect on your business. However, keep in mind that it is only one means to an end.

How to Market and Advertise Mobile Games

The global mobile-games market, according to Newzoo, is projected to grow 27% annually and double to $23.9 billion in 2016 as the number of players – as well as their average monthly spending on them – continues to increase each year.

Here are a few more figures that should interest mobile marketers and advertisers:

  • 78% percent (or 966 million) of the world’s 1.2 billion gamers play games on mobile devices. 368 million each spend a monthly average of $2.78 on them. The average global monthly spend will increase to $3.07 per month in 2016
  • The Asia-Pacific region currently has the largest market share (48% of mobile revenue). Europe will see the fastest compounded annual growth rate (33%) while the growth in Asia-Pacific will remain comparatively high as well
  • Specifically, the games market on tablet devices alone will reach $10 billion worldwide
  • The average monthly spend is highest in Western Europe ($4.40 per person). North America is lower at $3.87 but has the highest share of payers amongst players worldwide (45%).
  • The acquisition cost per loyal mobile gamer ranges from $1.11 and $0.74 on iOS and Android respectively in smaller Latin American countries to $3.70 and $1.71 in mature APAC markets such as Japan, South Korea, and Australia.
  • Overall, Western Europe, North America and Asia Pacific will remain the most appealing markets for mobile game publishers.

The market for mobile games continues to grow, but the competition is also increasing. Here are some of the best ways to market and advertising mobile games. Not every single one will be effective for every single gaming company and game – but many of them are used often.

Promoting Mobile Games

1. App-Store Optimization (ASO). It’s impossible to make money off of a mobile game if no one can find it. Moz has two articles on general app-store optimization and the ASO keyword-selection process that we recommend to mobile publishers. Once your game is found in app stores, its description page must entice potential users to download it. Have a creative and catchy name along with descriptive text that tells the visitors that they need to play the game helps a lot.

2. Build a Website and Use Social Media. The greater the number of places where a mobile game can be found, the greater the number of users will be. Mobile gaming companies should create a website along with related accounts on Facebook, YouTube, and more.

  • SEO – Optimize your website so that it will get found in Google search results and then push the incoming visitors to download the game, sign-up for future notifications, or anything else
  • Facebook – Create a page with a tab that people can click to go to the app store or install the game directly. Build a following through the posting of enticing photos and videos that relate to your game and will encourage people to “like” and share the posts
  • YouTube – Publish videos that preview the game and tell people where to go to download it
  • Twitter – Communicate with important mobile-game reviews via the PR methods described in the next point
  • Pinterest – If your game’s users tend to be women, create a Pinterest account and post photos and screenshots

Use the website to encourage people to follow the social-media profiles as well.

3. Public Relations. Reach out to the journalists and bloggers who cover gaming in general as well as those who write about the specific genre of your game (whether it is sports, fantasy, or anything else). Ask them if they would like to receive a complimentary copy of your game – with no strings attached. Research and find the online communities where people play and discuss games like yours, and do the same thing. If you have the funding, hire a professional PR agency to do all of this for you.

4. E-mail Marketing. You can start to market the game long before it is published. On your website and social-media channels, be sure to include a form that people can fill out to be notified when the game is released. Once you get their attention, do not let them forget about you!

5. Internet Advertising. These methods can be used in a number of ways based on the context:

  • CPM (cost per impression) banner ads can be used to build a brand and generate awareness before a game’s launch
  • CPC (cost per click) or CPA (cost per action) ads can direct people to click to go to the app store, to a download page directly, or to a website form that they can fill out to receive future notifications
  • Cross-promotion advertising can be used with other non-competing companies and games – ads within their games can promote yours, and ads inside your game can send traffic to them

Online ads can also be used in conjunction with social media. Facebook, for example, has greatly improved its mobile-ad platform – mobile gaming companies can use ads to get direct installations, page “likes,” and clicks to the apps store.

In such an advertising context, the key to successful mobile-game marketing is to deliver “the right ad to the right user at the right time.” In other words, market to the people who are most likely to be interested in your game at the time when they are most likely to install the game.

Here at MassiveImpact, we use targeted advertising to ensure that mobile games are advertised to the people who would be most likely to want to play them. In addition, we use a CPA platform so that mobile gaming companies get the highest ROI by paying only per installation and not per impression or click. If you would like to learn more, just fill out the contact form and we’ll be in touch!

Effective mobile-game marketing, however, is just the first half of the process. Companies, of course, typically create mobile games so that they can monetize them. So, for the other piece of the mobile puzzle, check out our mobile-monetization solutions as well.

Real-Time Bidding’s Rise in Mobile Advertising


eMarketer is predicting that real-time bidding (RTB) will grow from a spend of $3.34 billion in 2013 to $8.69 billion by 2017 in the United States alone. RTB’s percentage of the total ad spend is projected to rise from 19% to 29% over the same period of time.

Are you adapting your mobile-advertising methods accordingly?

RTB is the process by which ad inventory is sold on a per-impression basis in an automatic, instantaneous auction. The winning advertiser’s ad is then instantly displayed on the publisher’s site within milliseconds. Mobile advertisers can manage and optimize ads from many different advertising networks to help them to create and implement ad campaigns, prioritize networks, and allocate backfill percentages.

The new type of mobile-ad platform is ending the monopoly of performance-based mobile advertising. As Paypaya Mobile and AppFlood noted in a Venture Beat article:

With bigger tech companies turning their attention to where the bulk of the ad spend is — the brands — and acquisitions taking more performance-based ad networks out of the picture, mobile ad networks once catering to performance will pick up RTB to jockey for a piece of the brand ad spend.

Last year, the supply of mobile ads outweighed the demand by $16 billion, according to a Kleiner Perkins Caufield Byers Internet Trend report. An Accordant Media study also found that RTB had driven down average CPM costs by 21 percent in Q1 2013 as a result. The fact that mobile traffic has become cheaper (perhaps temporarily) will likely encourage mobile advertisers to spend more of their advertising budget on RTB instead of performance-based advertising (also called cost-per-action or CPA). In a different way, RTB can also help mobile publishers to generate more revenue since RTB can match buyers and sellers more effectively and thereby boost CPMs.

Marcelo Ballve writes at Business Insider that RTB is becoming the optimal way to target relevant mobile-device users via an individual’s time-based and location-based data. Ratko Vidakovic adds at Marketing Land that RTB is increasingly important in mobile and video contexts specifically:

Mobile is pretty much the only hardware platform at the moment which allows precise location-based targeting, made available by location-aware apps. In the near future, that will expand to wearable computing and modern transportation.

With RTB, advertisers have the ability to bid on ad impressions in real time, which becomes crucial when you are trying to target an audience only at the exact moments when they are in a specific location or area.

This form of hyper-local targeting will naturally usher in a new dimension of location reporting: by area or zone (as defined by GPS coordinates and specific radius). Reporting by zone will be an important factor for optimization, allowing advertisers to fine-tune campaigns beyond just the city level, but down to specific neighborhoods, districts, even intersections.

Years ago, Internet advertising began with a CPM model – websites would place banner ads and charge businesses an agreed-upon rate for every 1,000 impressions. Soon, CPM gave way the CPC (cost-per-click) model, which delivered results that were easier to quantify. Later, more and more companies moved towards CPA (cost-per-action) to determine the exact ROI per sale.

While  RTB (real-time bidding) provides better visibility to Advertisers and Publishers alike, it still poses a problem for most advertisers looking for a performance- driven marketing model, as RTB stipulates automatic bidding on specific ad spaces (impressions), this is still about 4steps removed (impression, click, download, installation… )from an actual monetization event, that precise point where the advertisers sees any return for his Marketing dollar.

A relatively new solution called Real Time Performance (RTP) comes to solve just that. By targeting specific users with relevant ads, based on their purchase history and past mobile behavior, it increases the value of publishers’ ad space (relevancy) and advertisers’ sales volumes, hence goes directly for that conversion event. No further calculations or optimization needed on either side.

For more information on how mobile advertisers and app developers can use RTB , RTP and other methods to market or monetize their products, we invite you to visit our pages with solutions for Advertisers and Publishers. Fill out the form to request more information, and we’ll be in contact shortly!

Mobile Marketing Strategies for Hotels

According to Insight Express, mobile ad campaigns have historically been five times more effective than online ones because of high levels of engagement and less clutter – after all, only one ad is often shown on a mobile device at one time.

Such results are also seen in hotel and travel mobile websites and applications. As Eye for Travel observes:

A big plus for travel is the increased ease of researching and booking on the go, which is needed given how often travel plans change on the fly. In this respect, hotel companies can learn from how some of the successful travel intermediaries are performing.

In just one example of the benefits, the site notes that Kayak’s Q3 revenue per 1,000 mobile queries was $62, an amount that has increased by 63% since the prior year’s third quarter. Hotels can communicate such specials, promotions, and last-minute discounts via mobile-app marketing methods that can include:

  • Text message (SMS) ads
  • Banner ads
  • Application branding

The specific tactics that hotel chains use will still need to depend on their specific goals and strategies. In general, hotels that want to use mobile apps will need to choose between three options:

  • Build their own
  • Connect through one of the general travel mobile apps
  • Partner with an app that fits your unique niche and has relevant users


Whichever option a hotel brand uses, the same marketing principle will apply: make the app as user-focused as possible. As Hospitality Upgrade notes in one example, Travelclick developed the app StayHIP, which allows people to find and book the hotel that best suits their needs in terms of rates, room types, and availability. The key in any context is to make the app experience useful, informative, and fun.


Mobile-device users find trip such apps useful when they notify them of schedule and rate changes and combined itineraries as well as help them to manage loyalty programs. Hotel apps can use location-based services to see where guests are located and then give information such as city guides, local events, and weather along with airport and traffic alerts. Added features can include coupons, contests, and the ability to post details on the major social-media networks.


In another example, Janice Chan, senior director of digital marketing and distribution for Starwood Hotels and Resorts talks about when a hotel company should have native apps and what to include in them.

Chan states that the key is to discover what your customers need. Brands should not market on mobile just to follow a trend – to earn loyalty, they must deliver value beyond just using an app as only another way to book rooms. Customers want to interact in a fast, personalized experience.

And what do Starwood guests want? Some of Chan’s observations:

  • The number of guest points gained
  • Details about their next stay (the Starwood app is updated forty-eight hours before the next check-in)
  • Information about their destination – taxi information, directions, and more

If a hotel chain does not want to offer such extras in an app, then it is better for the brand to have only an HTML5 or responsive website for people who are visiting the company on their smartphones or other mobile devices.

One other interesting note from Chan: Their Android app specifically has been very successful in the Chinese market – there are more downloads there in a month there have been English-language downloads elsewhere combined. Hotels in Asia: keep this in mind!

Still, it is important to consider pricing strategy in a mobile app.

Many travel and hotel sites view the mobile channel as a way to sell unsold inventory at lower prices – especially to capture customers when attentions spans on mobile devices are often low. According to Hotel News Now, Hotel Tonight’s app focuses on “last-minute hotel deals” with discounts of up to 70% on rooms. Travelocity’s booking app,, advertises the same with up to 55% off standard prices.

However, the practice has its skeptics.

Robert McDowell, senior VP of global distribution and loyalty at Choice Hotels International, says in the HNN article that a lot of the mobile business is not actually this type of “incremental demand” but demand that has just shifted to another platform.

“Business shifting from the desktop area to the tablet or mobile device is not incremental demand,” he said. “If you just discount it, you’re training consumers to wait until the last minute to book, which flies in the face of any revenue management strategy.”

Regardless of the specific pricing strategy and marketing tactics, it is clear that a mobile presence is no longer a luxury for hotels – it is mandatory. Hotels need to be where their customers are to maximize revenue and total marketing ROI.

Every business needs to change when the needs of its consumers change. Today, hotel brands need to change by moving into the mobile sphere as quickly as possible.

To learn more about how hotels and other companies can advertise on mobile or monetize their apps, we invite you to explore our Advertisers and Publishers platforms. Just fill out the inquiry form to learn more, and we’ll be in touch!

Mobile App-Monetization Strategies for Developers

There are almost as many ways to monetize apps as there are apps in the first place. Choosing the right monetization method can be confusing, so we have published a brief guide below that outlines many of the options that mobile publishers can consider.

Free or Paid Downloads?

This is the first question to answer because the response will inform the rest of your monetization strategy. As TechCrunch notes when reporting on a recent study by Flurry, the market trend is moving increasingly towards free apps:

People are hesitant to purchase apps for a variety of reasons:

  • Unknown quality – besides reviews (which may be non-existent or biased), there is little way to know whether an app performs as well as stated and is free of bugs
  • No refunds
  • Increasing sentiment (rightly or wrongly) that everything on the Internet should be “free”

However, there is at least one time when using paid downloads is worthwhile: when the app serves a valuable, specific niche and is not a game or other app for a general audience. Here are a few examples from The Telegraph:

  • Consumer perks for wealthy people
  • An on-the-go study guide for the bar exam for law students
  • A business app for agronomists
  • An industrial app that creates, edits, and runs measurement plans and automates inspection processes in factories
  • Watch and control security cameras on mobile phones
  • Access and control desktop and laptop computers remotely

Most likely, you will want to offer your app for free and then use one or more of the following monetization strategies.

How to Monetize Mobile Apps

In-App Purchases

This is commonly used by addictive games wherein players must purchase upgrades to play new levels, obtain new functionalities, buy new characters, or gain virtual goods.


Once an app has gained a high number of relevant users, then major brands may be interested in sponsorship or advertising deals.


In the same way, popular apps can associate themselves with other brands. Angry Birds, for example, created a Star Wars version. Brands can also use sponsored content such as limited-time-only characters in games.


Subscription-based monetization strategies can often yield better results that one-time paid downloads because a lower price tag (albeit on an ongoing basis) can seem more attractive than a very high one. So, business apps (like those mentioned above), content sites, news publications, and others may want to consider this option.


Many apps use what is called the “freemium” model – the download is free, but users need to upgrade to be able to use advanced features. An accounting app, for example, may allow people to track their expenses on the go, but only an upgrade would allow them to send the data to the accounting software on their main computers. Note: This monetization method can be risky because it can appear deceptive – people who think that they are getting an app for free may become angry later when they need to pay money to use certain functionalities.

E-Commerce and Affiliate Sales

According to Venture Beat, more and more developers are using e-commerce either to sell products directly or as an affiliate. For the users of nearly any app, there are products that would interest them.


Apps that service some sort of social purpose that benefit the world – and exist not only to make money – can often have a “donate” feature inside the app alongside useful content, games, or news. Non-profit organizations can certainly use this model.

Selling the API & White Labeling

App companies may want to look into selling the app’s API or code to developers (while keeping the private, intellectual property).

Selling User Data

Online social networks sell user information to advertisers, and apps can do the same. However, the public is becoming increasingly aware of this practice – so mobile apps who sell personal data do so at the risk of receiving bad PR if the practice is discovered.


Mobile advertising is one of the most-common ways to monetize. Here are a few ways:

  • Interstitial ads appear at desired times – such as when someone closes an app, loses at a game, or achieves a new level
  • Banner ads are easy to implement and are, therefore, very popular
  • App walls are used to advertise other apps in blocks
  • Rich-media ads use video, audio, and more and can also gather user data
  • Geo-targeted ads deliver advertisements based on the location of the mobile-device user

For mobile publishers who are looking into advertising and related monetization methods, MassiveImpact invites you to look into our Freemium Exchange, which has a 100% revenue share on CPC and eCPM offers and streams offers to publishers from multiple sources – ad networks (CPC), RTBs (CPM), ad -mediation platforms, and our own direct offers.

We also have a hybrid solution, which is a cross-CPA/CPC model that enables publishers to reach demand partners to which they have no access through other sources and work with some of the world’s leading app and mobile-content developers.

Learn more about!

Global Mobile Ad-Growth Predictions for 2014

Wherever you are in the world, mobile advertising will increase its presence. Companies and brands will need to adjust their digital-marketing strategies accordingly.

According to a recent report by Gartner, global mobile-advertising spending will jump from $13.1 billion in 2013 to $18.0 billion in 2014. Most of the spending will be on display advertising, but the greatest growth will be on video:

“Over the next few years, growth in mobile advertising spending will slow due to ad space inventory supply growing faster than demand, as the number of mobile websites and applications increases faster than brands request ad space on mobile device screens,” said Stephanie Baghdassarian, research director at Gartner. “However, from 2015 to 2017, growth will be fueled by improved market conditions, such as provider consolidation, measurement standardization and new targeting technologies, along with a sustained interest in the mobile medium from advertisers.”

The full study is here (registration required).

North America

Gartner predicts that North America will see the most growth in mobile advertising:

“North America is the region with the strongest general advertising focus and investment. It is also the region where online advertising is most mature,” said Mike McGuire, research vice president at Gartner. “Overall advertising budgets are the highest, so when a portion shifts to mobile, in a multiplatform approach, it immediately impacts the market’s scale.”

In another report, eMarketer predicts that mobile advertising will outpace expectations and continue its growth over desktop advertising in the United States specifically:

  • Desktop advertising will increase by just 0.41% while mobile ad spending will grow 56%

eMarketer also predicts that the use of mobile advertising will increase in all regions of the world:


According to Gartner, mobile will become more and more integrated into 360-degree advertising campaigns and take from the budgets historically allocated to print and radio advertising.

Another eMarketer study forecasts an increasing in European mobile ad spending from $2.85 billion in 2013 to $4.46 billion in 2014.


Asia/Pacific is the most-mature region for mobile advertising, so growth will be less. Gartner expects that China and India will contribute to mobile-advertising growth as their expanding middle classes present attractive markets for both global and local brands.

eMarkter also predicts a mobile-advertising increase from $3.41 billion in 2013 to $4.31 billion in 2014.

Latin America

In the emerging markets of Latin America (as well as Eastern Europe, the Middle East and Africa), mobile advertising growth will be driven by large markets such as Russia, Brazil, and Mexico. In 2015 and beyond, growth rates in these regions will exceed the global average.

eMarkter foresees a rise in mobile advertising from $140 million in 2013 to $259 million in 2014.

Getting Future Results

Wherever in the world you want to advertise to mobile users, we invite you to learn more about MassiveImpact’s mobile-advertising solution that delivers the “right ad at the right user at the right time” to ensure that you are advertised to the people who would be most likely to download your game, purchase your product, or perform any other desired action on a cost-per-action (CPA) basis.

We invite you to learn more and submit our contact form to obtain more information.

What We Can Learn from Japanese Mobile Marketers

Where did Steve Jobs get the inspiration for the iOS? Japan.

Apple’s mobile operating system was based partly on the i-mode mobile-Internet service that was launched in the “land of the rising sun” in February 1999 – almost a decade before the release of the iOS. From there, the mobile revolution soon took off. According to Wikipedia:

Seeing the tremendous success of i-mode in Japan, many operators in Europe, Asia and Australia sought to license the service through a partnership with DoCoMo. Takeshi Natsuno was behind the expansion of i-mode to 17 countries worldwide. Kamel Maamria who was a partner with the Boston Consulting Group and who was supporting Mr. Natsuno is also thought to have had a major role in the expansion of the first Japanese service ever outside of Japan.

i-mode showed very fast take-up in the various countries where it was launched which lead to more operators seeking to launch i-mode in their markets with the footprint reaching a total of 17 markets worldwide.

After the destruction of World War II, why did Japan eventually become such an economic powerhouse in mobile and more in the 1980s, 1990s, and beyond? The answer is complicated, but here are a few of the reasons:

  • Japan’s military-industrial complex was rapidly converted to civilian, commercial use
  • The United States gave the country a significant amount of aid to its former enemy in part to build a relationship with a new ally in East Asia to counter the Soviet Union during the burgeoning Cold War
  • Most of Japan’s factories were destroyed – forcing the government to build new, state-of-the-art facilities from scratch

As a result of these factors, Japan was able to build an advanced economy that made it an economic and technological leader by the 1980s. Today, mobile web penetration there is 98% (compared to 50% in the United States). The Japanese were shopping, banking, and gaming on mobile devices long before anyone else in the world. Here are just two examples of the effect of Japan’s forward-thinking:

  • American Apparel chose Japan for its first m-commerce site since Japanese teenagers are more comfortable shopping on mobile phones than teenagers in other parts of the world
  • The QR code was invented by Japanese company Denso Wave (a subsidiary of Toyota) to track cars during the manufacturing process

Japan is a country with a (relatively) small population – but the people are early adopters of mobile and other technologies. For this reason, many companies test new high-tech products in Japan before releasing them into larger markets in the United States, Europe, and elsewhere. Companies also look to Japan to see where the market is headed – including in mobile advertising, which major U.S. conglomerates including Yahoo! and Facebook are still struggling to monetize.

In the Japanese mobile-advertising market, companies are moving towards results-oriented practices that focus on sales and conversions rather than on mere clicks or impressions. What the Japanese already understand – and too many others do not – is that performance mobile advertising delivers a guaranteed return on investment and takes any monetary risk out of the picture. In the United States, most companies use mobile advertising in the context of the standard model of cost-per-click (CPC) or cost-per-impression (CPM). The industry, however, is shifting towards the Japanese model, which targets the best individual users for an advertised product at the best time.

One such effective model is the Real Time Performance, which focuses on actual conversions and sales rather than banner click-rate optimization. For its part, Yahoo! recently announced that the company is moving in this direction by grouping people by interest and then targeting mobile advertising to match the interest of the group. Another effective method includes the targeting of mobile ad campaigns towards specific users based on their historical behavior and past purchases.

The United States is still mastering the art of mobile advertising while Japan has led the way in the sector. It is imperative to learn yet another lesson from Japan and adapt mobile-advertising campaigns to focus on results and performance. Apple learned this lesson years ago, and it is only a matter of time before everyone else – from mobile advertisers to mobile publishers – follows suit.

Why You Should Target Holiday Shoppers with Mobile Advertising

When the holiday shopping season approaches, the stakes are always high for retail businesses. With tight margins and heavy competition, finding a market advantage is increasingly difficult — but necessary to drive revenues in this critical sales period. One of the largest opportunities for finding this competitive advantage is in mobile.

How important is mobile to this year’s holiday shopping season? As eMarketer estimates, mobile spending on tablets and smartphones together will account for 16% of 2013’s total U.S. retail e-commerce spend, representing a $41.7 billion segment by itself. Equally impressive is that 59% of the time spent on e-commerce activities this year will occur on such devices  as they play an increasingly-large role in the research and purchase phases of online shopping.

Outside of the United States, we see similar trends. In Europe, Christmas shopping on mobile devices will grow 68% from last year, reaching 12.4% of all European online sales. Additionally, Sociomantic reports the Asia-Pacific region will constitute 25% of the growing mCommerce market.

From a device perspective, tablets are quickly becoming the go-to device for online shoppers. Tablets will account for 62.5% of U.S. retail mCommerce sales overall, compared to the 35% for smartphones. John Seebeck, vice president of e-commerce at Crate & Barrel, provides insight into why this is happening:

Lots of our tablet customers are looking at products such as sofas and bedroom pieces; tablets offer a great way to show a significant other what you’re thinking of.

However, smartphones will still have a place in the mobile commerce industry. While tablets seem to be used exclusively at home, recent Nielsen data says that smartphones are truly “mobile,” with consumers using their phones to find local stores, check prices, and conduct product research. Here’s a more detailed breakdown of how consumers use these two devices for shopping:


What do these overall trends mean for retailers? It’s important to understand that the mobile commerce activity is not going away anytime soon. eMarketer projections put U.S. mobile ecommerce at a steady growth rate of around 15%, leading to a $113.6 billion market in 2017. Thus, retailers must address the mobile exigency as soon as possible not only for the immediate reason of boosting holiday sales but also as a core sales channel throughout the year.

Simply having a mobile-optimized website or mobile-shopping app is a great start, but the next challenge is to get consumers to hear about it and then (most importantly) use it for purchases. Here’s where mobile marketing comes in. A targeted mobile-marketing campaign will drive awareness, usership, and purchases – but only if the campaign is designed properly.

Designing a successful mobile-marketing campaign starts with setting the right goals and establishing the correct metrics to measure whether those goals are achieved. If a primary objective is to drive sales, it only makes sense to target sales as the campaign goal. Since metrics such as ad impressions, ad clicks, and even app installs are only indirectly related to in-app purchases, targeting them as a “goal” for a retail campaign would be “stopping short of the endzone” (in American football terms). Instead, a cost-per-action (CPA) model that measures success directly through the amount of sales is more relevant and useful as a metric. To explain this concept more clearly, we’ve created this infographic:

The Retail Mobile App Challenge (72 PPI) (2)

If you’re interested in learning more about our CPA advertising model, please visit our Advertisers page and submit an inquiry. We’ll be in touch!

Performance Mobile Advertising Gains on CPM

Why would you ever want to have a mobile advertisement that did not perform?

In any marketing or advertising context, the only metric that matters is that which aligns to your business goals. So, companies that measure their mobile-advertising results by only the number of clicks (PPC) or impressions (CPM) – or the average cost of a click or impression – are not monitoring their results effectively and efficiently. For example, say that a company is using mobile advertising to increase B2C product purchases or B2B business leads. The end goal that matters the most is the number of sales or leads (respectively).

More and more companies are realizing this fact. Just take the result of a recent survey by the Internet Advertising Bureau in the United Kingdom:

The share of Internet-advertisement revenue from performance-based advertising increased from 41% in 2005 to 65% in the first half of 2013 while the share of CPM-based advertising fell from 46% to 33% in the same time-frame. (Data specific to PPC was not included.)

The reason is not hard to understand.

As an article in the New York Times notes, companies are facing higher PPC costs as competition generally increases. In one example, Cedar Creek Cabin Rentals, a vacation rental-management company, and had been paying Google $0.60 per click for many leads and sales.

But the company’s results changed dramatically:

By 2010, Mr. Telford had started a new management company, Cedar Creek Cabin Rentals, and was spending $140,000 a year on pay-per-click advertising to promote the 45 cabins in his charge. The programs had become increasingly popular and competitive, which meant that in order to retain his ranking in search results, he had to pay about $1.25 a click, double what he had paid initially. “The cost per keyword climbed dramatically over the years,” he said. “And it’s still going.”

And that is a problem. While Mr. Telford agreed to pay more for his keywords, he said he did not see a commensurate increase in sales. “For a while, I was spending more than I was getting,” he said. “It finally hit me to ask, ‘Can I sustain this?’”

Performance-based advertising, as Social Compare states, offers the following advantages that could have been used by Cedar Creek Cabin Rentals:

  • The advertiser pays only for results
  • Gets brand exposure even without clicks
  • Low vulnerability to click-fraud
  • High correlation between ads and sales or leads

While a specific conversion in the context of performance-based advertising can cost more than a specific CPC or CPM unit, campaigns as a whole can often be cheaper.

Take a hypothetical user with a CPC cost of $1 and a resulting cost per conversion of $18 (one click out of eighteen leads to a conversion). As long as the performance-advertising cost would be less than $18 per conversion, the CPA alternative will save the company money. Often times, this method leads to lower overall costs in the context of an entire campaign and more importantly- the results are easier to measure and relate directly to specific Marketing activities.

CPM advertising generates too many wasted impressions that more often than not- bring no sales or leads. CPC advertising generates too many wasted clicks that do not guarantee sales or leads. Performance mobile advertising is what leads to companies achieving their direct sales and marketing goals. In addition, the intention to achieve direct sales calls for Performance- based ad companies to push for more sophisticated analytics tools, which in turn contributes to full transparency to advertisers, an element marketers often fail to receive, while working with most blind ad networks out there.

For more information on how your company can use performance-based mobile advertising effectively, we invite you to visit our page with details, case studies, and more!

Enhanced Publisher SDK and What’s In It for You

We are pleased to announce the release of our latest Publisher Monetization SDK, with easier integration, deeper customization and improved transparency. You asked for it and we listened.

MassiveImpact’s Freemium Exchange Model has already benefited mobile publishers including ViMap, Interchan, and others by waving the ad serving fees, increasing fill-rates and using MassiveImpact’s unique CPC – CPA hybrid technology, resulting in a dramatic increase in publishers’ bottom-line.

What you should know about the newly enhanced SDK:

  • No ad-serving fees. Publishers receive a 100% revenue share on CPC and CPM offers, guaranteeing a substantial increase in their bottom lines.
  • Easy integration. The new SDK code is easy to implement and as light as possible on your mobile application. The integration is a one-time-process, and any future versions, updates, and new developer tools will be automatically handled by us.
  • Built-in plug-ins for all major ad networks. Our single-point integration into third-party advertising networks including Google AdMob and others saves you time and ensures the optimization of your monetization effort’s bottom line.
  • Full transparency. MassiveImpact offers a comprehensive set of real-time reports, giving publishers full visibility into the status of their running campaigns anywhere and at anytime.
  • Customization. We let you decide how ads should be presented in your apps – when, for how long, and more – to create an excellent user experience while still increasing your earnings.

For more information on how our new SDK can help you improve your mobile-monetization efforts, we invite you to visit our Publishers page and fill out the inquiry form today. We’ll be in touch right away!

The MoPub SDK is open sourced under the New BSD license: Copyright (c) 2013 MoPub Inc. All rights reserved.