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U.S. Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.™)


June 2010 S.M.A.R.T.™ Highlights (Data compiled from 6/1/10 to 6/30/10)

JUNE 2010

Millennial Media’s U.S. Mobile Landscape The U.S. Mobile Web increased by approximately 3%, from 75.3M to 77.4M users. Millennial Media’s U.S. unique audience reach increased by 2% in May, from 61.5M to 62.9M unique users month-over-month to a continued industry-leading 81% reach of the Mobile Web (according to Nielsen). Hispanic and Black multi-cultural audiences continue to lead in mobile data usage according to a recent study by the Pew Internet & American Life Foundation. Our June rankings of the Top U.S. Mobile DMA’s echo those findings as many of the top DMA’s represent locations comprised of high multi-cultural populations. Brands interested in reaching multi-cultural audiences should make mobile an integral part of their marketing plans. Source: e-Marketer, Blacks, Hispanics Continue to Lead in Mobile Data Usage, Pew Internet & American Life Foundation, July 12, 2010

Spotlight on the Entertainment Ad Vertical Our special section this month looks at the Entertainment vertical in greater detail. Advertisers in this space are highly innovative and consistently lead the way in driving new mobile advertising ideas. A 300% increase in DVD release campaigns since Q2 2009 signaled recognition by movie studios that mobile advertising can be used to effectively drive results across all product release windows, i.e., Motion Picture Release, DVD Release, VOD, etc. Movie studios use the highly-effective Audience Takeover targeting strategy to achieve 100% share of voice with audiences to drive ticket sales on premiere weekends. Automotive and Telecom verticals should leverage this technique to promote new car and product launches.

Q2 Vertical Snapshot Portals & Directories ranked number one for the third consecutive quarter. We anticipate continued heavy investment in this vertical as top brands compete to become the “go-to” portal with mobile consumers.

Telecom moved into the number two position this quarter. See the special feature in our May 2010 S.M.A.R.T.™ report for more on how Telecom advertisers used sophisticated, consumer-focused targeting strategies in their mobile campaigns. Retail & Restaurants climbed three places to the number seven position in Q2. Growth in this vertical was driven by retailers building databases for re-targeting, featuring location-based couponing for summer sales, and ramping up spending for early back-to-school campaigns. Automotive advertisers spent aggressively on mobile campaigns in Q2, jumping back into the top 10 this quarter, displacing the Pharmaceuticals vertical.

Engagement & Targeting Expand Rich Media increased 3% to represent 6% of the Campaign Destination Mix in June. Automotive brands, like Entertainment advertisers, are designing rich media elements in their campaigns that are unique to mobile – not just re-purposed creative from the Wired Web. Submit Form and Retail Promotion were among the top-performing post-click actions in the MYDAS™ Portfolio Mix in June. Tourism, airline and hotel advertisers within the Travel vertical actively engaged consumers with free trip promotions and special offers that captured the attention of summer vacationers making their travel plans. As an ever-increasing trend, advertisers are leveraging Audience-Targeted campaigns on Millennial Media’s network. The unique attributes of Mobile allow for this refined Audience Targeting. In June, 41% of campaigns leveraged this method. GEO targeting accounted for 56% of the Targeted Audience Mix in June. This targeted reach method continues to resonate strongly with advertisers in the Travel vertical, particularly Hotels and Resorts, who are able to reach visitors new to the area with relevant messages.

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Millennial Media’s U.S. Mobile Landscape JUNE 2010

U.S. MOBILE INTERNET REACH (Reflects Nielsen data from May 2010)

U.S. MOBILE WEB

77,493,000*

MILLENNIAL MEDIA

62,955,000*

Millennial Media’s Reach is 81% of U.S. Mobile Internet Users

BY AD REQUEST – JUNE 2010

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

MARKET

LOS ANGELES, CA DALLAS, TX HOUSTON, TX PHOENIX, AZ SACRAMENTO, CA SAN FRANCISCO, CA CHICAGO, IL FRESNO, CA SAN ANTONIO, TX HARLINGEN, TX NEW YORK, NY TAMPA, FL ATLANTA, GA LAS VEGAS, NV ALBUQUERQUE, NM

Millennial Media’s U.S. reach has grown at the same rate as, or better than the U.S. Mobile Web

77.5 62.9

U.S. MOBILE WEB REACH

74% OF TOTAL U.S. MOBILE WEB

59.8

REACH

81% OF TOTAL U.S. MOBILE WEB

44.2 MILLIONS

RANK

U.S. REACH GROWTH

MAY 2009

MILLIONS

TOP U.S. MOBILE DMA’S**

MILLENNIAL MEDIA

MAY 2010

DID YOU KNOW? Millennial Media launched the Mobile Mix™ Report which covers the latest trends with top mobile manufactures, devices, operating systems, etc.? Click here to sign up today!

*The Mobile Web number was extracted from the Nielsen Mobile Report: Standard Metrics (Internet Applications included), May 2010, All Carriers. The Millennial Media number is a Nielsen Custom User-Defined Report. See Nielsen methodology and disclaimer information on page 8. **Designated Market Area (DMA) is a geographic area defined by Nielsen Media Research Company as “a group of counties that make up a particular market. For the most part the metropolitan areas correspond to the standard metropolitan statistical areas (see metro area) defined by the Federal Government Office of Management and Budget. The areas do not overlap and every county in the United States belongs to only one DMA. DMA’s are used in the evaluation of audience data as well as in the planning and buying of media.”

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Spotlight on the Entertainment Ad Vertical JUNE 2010

Entertainment Vertical Campaign Targeting

Entertainment Ad Vertical Break-out – Q2 2010

CHART A

CHART B

10% 3%

39% 35 30 25 20 15 10 5

11%

5% GEO

13%

25%

21%

BEHAVIORAL AUDIENCE

CUSTOM SUBNET

META

AUDIENCE TAKEOVER

7%

31%

43%

Studio Motion Picture Release TV (Cable & Network Program) Music Games DVD Release

R.O.N.

Source: Millennial Media, 6/10.

Entertainment Insight: Entertainment has placed in the Top 3 Mobile Advertising Verticals on Millennial Media’s network consecutively for the last 12 months. There has been tremendous growth and diversification in this ad vertical as brands have embraced mobile to successfully promote a variety of entertainment products including CDs, Theatrical Movie Releases, DVDs, Television and Cable Programs and Games. Movie studios use the highly-effective Audience Takeover targeting strategy to achieve 100% share of voice with audiences to drive ticket sales on premiere weekends. Automotive and Telecom verticals should leverage this technique to promote new car and product launches (Chart A). Advertisers within Entertainment are savvy mobile marketers – especially when it comes to the use of consumer-focused targeting strategies. Brands often utilize Millennial Media’s unique ability to develop custom audiences (e.g., horror movie enthusiasts, romantic comedy fans). Additionally, they re-target based on previous campaign results, to achieve higher consumer engagement rates (Chart A).

Source: Millennial Media, 6/10.

Entertainment Campaign Growth Q2 2009/Q2 2010 CHART C

TV (Cable & Network) programs campaigns grew 311% year-over-year DVD Release campaigns grew 300% year-over-year Studio Motion Picture Release campaigns grew 89% year-over-year Source: Millennial Media, 6/10.

Entertainment brands (particularly Movie Studios and Music Labels) work collaboratively with Millennial Media’s in-house creative team to develop best-in-class creative with rich media, innovative apps, games, videos and music streaming components. Health & Fitness, Automotive, Travel, Telecom, CPG and a number of other verticals should use this innovative approach to enhance their current campaigns.

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Q2 Vertical Snapshot JUNE 2010

Top 10 Mobile Advertising Verticals Ranked by Spend – Q2 2010 CHART A

RANK Q2 RANK Q1

1 2 3 4 5 6 7 8 9 10

1 3 2 7 4 8 10 6 – 5

VERTICALS

PORTALS & DIRECTORIES TELECOMMUNICATIONS ENTERTAINMENT DATING TRAVEL CPG RETAIL & RESTAURANTS EDUCATION AUTOMOTIVE FINANCE

Source: Millennial Media, 6/10.

Q2 Insight: Portals & Directories ranked number one for the third consecutive quarter. We anticipate continued heavy investment in this vertical as top brands compete to become the “go-to” portal with mobile consumers. Telecom moved into the number two position this quarter. See the special feature in our May 2010 S.M.A.R.T.™ Report for more on how Telecom advertisers used sophisticated, consumer-focused targeting strategies in their mobile campaigns.

Retail & Restaurants climbed three places to the number seven position in Q2. Growth in this vertical was driven by retailers building databases for re-targeting, featuring location-based couponing for summer sales and ramping up spending for early back-to-school campaigns. For more information, see the Special Section in Millennial Media’s April 2010 S.M.A.R.T.™ Report. Automotive advertisers spent aggressively on mobile campaigns in Q2, jumping back into the top 10 this quarter, displacing the Pharmaceuticals vertical.

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U.S. Mobile Advertising Engagement Data JUNE 2010

Campaign Destination Mix* – June 2010

MYDAS™ Portfolio Mix* – June 2010

CHART A

CHART B 40

16%

6%

31%

35%

35

48%

Traffic to Site Custom Landing Page Application Download Expand Rich Media

29%

30

26%

25 20

20%

19%

15 10

7%

MOBILE ONLY

5 0

Source: Millennial Media, 6/10. Campaign destinations represent the immediate click-through from creative to site, landing page, or rich media.

9%

Site Search

Social Media

19%

MOBILE ONLY

MOBILE ONLY

19%

MOBILE ONLY

MOBILE ONLY

5%

Store m-Commerce Watch Locator Video View map

Retail Submit Promotion Form

Application Join/ Download Subscribe

Place Call

Source: Millennial Media, 6/10. MYDAS™ Portfolio represents the multiple calls to action for any given campaign.

June Insight: Mobile Web destinations (Traffic to Site and Custom Landing Page) represented nearly 80% of the Campaign Destination Mix. Top mobile advertisers – including a number within the Top 10 Advertising Verticals on our platform (see page 5) – have developed persistent mobile sites and/or mobile applications to direct their consumers to take action (Chart A).

Submit Form and Retail Promotion were among the top-performing post-click actions in the MYDAS™ Portfolio Mix™ in June. Tourism, airline and hotel advertisers within the Travel vertical actively engaged consumers with free trip promotions and special offers that captured the attention of summer vacationers making their travel plans (Chart B).

Expand Rich Media increased 3% to represent 6% of the Campaign Destination Mix in June (Chart A). Automotive brands, like Entertainment advertisers, are designing rich media elements in their campaigns that are unique to mobile – not just re-purposed creative from the Wired Web.

Application Download increased for the third consecutive month and accounted for 26% of MYDAS™ Portfolio’s Campaign Actions in June (Chart B). The Entertainment vertical launched several interactive apps related to summer theatrical releases. CPG vertical advertisers were also active in the App Download space in June. Innovative beverage brands, for example, developed promotional apps to drive consumer purchases.

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U.S. Mobile Campaign Targeting Methods JUNE 2010

Campaign Targeting Mix – June 2010 Average

Targeted Audience Mix – June 2010 Average

CHART A

CHART B

12%

5%

BROAD REACH

59%

41% TARGETED AUDIENCE REACH

Source: Millennial Media, 6/10.

27%

56%

GEO Demographic Behavioral Audience Audience Takeover

Source: Millennial Media, 6/10. GEO is defined as a campaign targeting method which includes geographic location, DMA, state, international country, etc.

June Insight: As an ever-increasing trend, advertisers are leveraging Audience-Targeted campaigns on Millennial Media’s network. The unique attributes of Mobile allow for this refined Audience Targeting. In June, 41% of campaigns leveraged this method (Chart A). In June, 59 percent of campaigns on Millennial Media’s network used Broad Reach targeting methods (Chart A). To achieve higher engagement rates, advertisers utilizing Broad Reach could emulate the Entertainment and Telecom verticals and develop more sophisticated Audience Targeting methods (i.e., GEO, Demographic, Behavioral Audience and Audience Takeover).

GEO targeting accounted for 56% of the Targeted Audience Mix in June (Chart B). This targeted reach method continues to resonate strongly with advertisers in the Travel vertical, particularly Hotels and Resorts, who are able to reach visitors new to the area with relevant messages. Sports advertisers and Portal & Directory brands leveraged Audience Targeting methods to promote FIFA World Cup™ coverage, scores and products to soccer enthusiasts.

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Summary & Reporting Methodology JUNE 2010

About Millennial Media Millennial Media is the proven leader in mobile advertising. With the largest mobile media audience in the U.S., Millennial Media uniquely offers brand advertisers the only set of specific, scalable audiences. Our ability to reach, target and engage consumers is unparalleled. As an innovative technology leader, our mobile decisioning, serving and mediation platforms are powering some of the largest companies in the media business today. The company is committed to growing the mobile advertising marketplace by becoming the preferred partner to all advertisers seeking to reach mobile consumers, all publishers and developers seeking to maximize ad revenue and all mobile operators seeking to further monetize their networks. For more information, please visit http://www.millennialmedia.com or follow us on Twitter @millennialmedia. Millennial Media was named the 2010 OnMedia Top Private Company in Digital Media and was awarded a 2010 Stevie Award (American Business Awards) for Most Innovative Company of the Year. About S.M.A.R.T.™ The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.™) delivers monthly insights on key trends in mobile advertising based on actual campaign and network data from Millennial Media, Inc. Millennial Media partners with major carriers, media networks and top-tier publishers to deliver the largest data set of any third-party U.S. mobile advertising network. As such, we are uniquely capable of reporting and analyzing the richest sets of carrier, device and campaign data collected over billions of monthly ad requests. Elevating and driving the whole mobile ecosystem forward is central to our company mission. Visit www.millennialmedia.com/research to sign up to receive Millennial Media-related news, including Millennial Media’s Mobile Mix™ and the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ report. S.M.A.R.T.™ was designed to speak to brand advertisers; however, for information on our performance product, Decktrade™, please contact us directly or visit our website. Nielsen Reach Methodology & Disclaimer: Nielsen Mobile, a service of The Nielsen Company, is the world’s largest independent provider of syndicated consumer research to the telecom and mobile media markets. Nielsen Mobile focuses exclusively on tracking the behavior, attitudes and experiences of mobile consumers. Their reports also provide up to seven years of data on internet, video, gaming, audio and advertising trends for mobile phone users. Mobile user behavior information is derived from general U.S. population samples under established and accepted rules. For more information, please visit www.nielsenmobile.com. Disclaimer for ‘Custom Roll-up”: This report is produced for the convenience of Nielsen clients requiring alternative aggregations of audience traffic. These custom roll-ups are user-defined and subject to redefinition and renaming upon client request and may be changed or restated at any point in time. Clients may use the data contained within these custom roll-ups to illustrate their unique business models or partnering relationships for internal analysis. Public use of this data must clearly state that this is nonstandard aggregation (”Source: Nielsen, Custom User-Defined Report, <Date>”) and cannot be compared to other custom reports or the syndicated reports on a rankings basis, including category level rankings. Nielsen does not allow for the double counting of traffic. Nielsen makes no claim as to the correctness of the custom aggregations but does certify the measurement traffic data as accurate. Millennial Media Methodology: Network reach is calculated from the count of unique users across our entire network. Millennial Media uses proprietary techniques to uniquely identify at least 75% of our user base persistently across our network and tracks the unique reach over the course of the month-long period. For the remainder, the unique user data is used to calculate the average frequency of views that a user consumes in a month. We apply that average frequency to the remaining impressions to determine our network-wide reach. Data provided is derived from Millennial Media server log activity for the time period indicated. Cost Per Engaged User (CPEU™) averages overall campaign spend against the number of unique users who engaged with the campaign creative. CPEU is derived by applying the overall media spend to the total number of users that engaged in any one of the actions which campaigns provided, such as expanding a rich media creative, visiting a landing page, watching a video, etc.

For questions about the data in this report, or for recommendations for future reports, please contact us at research@millennialmedia.com. ©2010 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

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