Payback Advertising Industry Research

ADVERTISING: THE CHANGING INDUSTRY

Online Advertising the fastest growing advertising medium and will account for the largest spending growth among advertising mediums (according to Neilson & ZenithOptimedia)[1]

MOBILE ADVERTISING
Mobile advertising is growing by leaps and bounds, with spending up by 111% year-over-year in 2 12!"# $otal spending on %obile advertising will soar &ro% roughly '()* billion this year +2 1,- to %ore than ',1)1 billion in 2 1., according to several industry &orecasts !2# Recent survey by /vu% and the IA0 show * % o& 020 respondents said they were 1co%pletely satis&ied2 or 1satis&ied2 with the results o& their %obile advertising e&&orts, with 023 respondents +. %- happier with their results) 4howing the continued reason why %obile advertising continues to grow)!,#

 5" o& the top 1 6)4) advertisers have now %obili7ed their %arketing e&&orts by i%ple%enting so%e &or% o& %obile %arketing in the past year)!21# 8"% o& the top 1, brands have now used %obile to advertise over the past year +2 1,-)!21# $op categories o& advertisers using %obile advertising include retail, entertain%ent 9 %edia, technology, travel 9 touris% and auto%otive advertisers!21# 3P:s are adopting %obile &aster than the other leading categories) 3onsu%er goods ranked in ;o) 8 a%ong industry verticals last year, according to Millennial Media, with spending up 2,*%)!2"#

VIDEO ADVERTISING: MOBILE TRENDS

$he average click-through rate +3$R- &or video ca%paigns in 2 1, <, was al%ost three ti%es higher on s%artphones and tablets +1,)8"%- than on desktops +*)"*%-, reveals 6nruly in new research using data &ro% %ore than ,, branded ca%paigns on its social video plat&or%) !*# $he IA0 recently reported that %obile and video are two o& the &astest-growing online advertising &or%ats, with spending up 1"*% and 2"% year-over-year respectively during the &irst hal& o& the year)!*# eMarketer pro=ects 6)4) %obile video advertising this year +2 1,- will be %ore than double to '*.8 %illion co%pared to '2"" %illion last year)!2,#

 Research also shows that video clicks and users co%pletion rates are high a%ong the 1(-2" years but surprisingly this is also the case &or older consu%ers) +,*-8* year olds- #8#

MOBILE APPSGAMES AND NON-GAME APPS:

9 in 1 American adults own a cell phone and out of those cell phone owners !9" sa# the# download A$$%& which is up from ''" in ' 9([)] $he nu%ber o& apps is e>ploding, driven by a huge uptick in the nu%ber o& %obile devices) Apps are now on billions o& devices and people are using those apps all day long) !(# App usage is driven by all kinds o& apps across the board? productivity apps, ga%es, li&estyle apps, social networking, and %ore)!(#

MOBILE APPS: SPECIFICALLY GAMES

The new face of mobile gamers are Moms. Mo%s with Android phones spend *, percent o& their app-usage ti%e playing ga%es) /n iPads, that@s "( percent o& their app ti%e, and on iPhones, ,1 percent)!2 #!21#

 . percent o& casual ga%ers are now wo%en ages 2*-*") 4pending on average * hours a week playing ga%es) $he ga%es they play are 1brain or pu77le2 ga%es not necessarily the shoot and kill stereotypical ga%es we think o& when we think o& 1ga%ers2)!5# Research shows that si>ty percent o& %ales age 1*-2" play online ga%es, co%pared to about * % o& wo%en age 1*-2") In the 2*-," de%ographic, about * % o& both genders play online ga%es, with %en having a slight edge) In the ,*-"" bracket, slightly %ore than * % o& wo%en play online ga%es, putting the% ahead o& %en) A slight dip in use a%ong both genders occurs in the "*-*" age group, with wo%en %aintaining a lead) In the **-plus age group, about * % o& wo%en and " % o& %en play online ga%es)!1 #

MOBILE IN-APP ADVERTISING:

 *ecent stud# shows +n,App advertising out performing we- -anner ads and e.pected to widen the margin([11] A-out !/" of Apps users sa# current +n,app advertising is disruptive and doesn0t wor1& #et onl# '1" are willing to pa# for a 2paid version3 of A$$ without advertising([1'][1/] Aith the enor%ous growth in APP usage, producers have to &ind ways to %oneti7e their products) Advertising and I;-app purchases are the %ost success&ul revenue generators) And while consu%ers %ay not like in-app advertising, their behavior %akes it clear that they are willing to accept it in e>change &or &ree content, =ust as we have in radio, $B and online &or decades)!1"#

$op Industry leader, Clurry says 1we believe it@s ti%e to shi&t the conversation away &ro% whether there should be ads in apps at all, and instead deter%ine how to %ake ads in apps as interesting and relevant as possible &or consu%ers, and as e&&icient and e&&ective as possible &or advertisers and developers)2!1"# 0elow is an e>a%ple o& a success&ul I;-App advertise%ent !1(#

MOBILE IN-APP PURCHASES

(these are add ons to the game or app you are using which expands your APP experience) Payback Advertising is looking to merge advertising and the In-app purchase

According to a Danuary 2 12 IE4 report, revenue &ro% in-app purchases will increase to '*)8 billion in 2 1*, up &ro% '5. %illion in 2 11) In-app purchases will account &or 8"% o& total %arket revenue in 2 1*, up &ro% ,5% in 2 11)!1.# Apps that have in,app purchases (+A$) -ecome the highest grossing([14][15] In a recent Corbes Maga7ine article they stated that In-App Purchases +IAP- has beco%e the greatest revenue driver &or Apps) It has reached .8% o& all revenue in the Apple App 4tore and is above 5 % &or %any Asian countries)!15#

*eferences6

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*esearched and $repared -# %hari Eingston Adams