Ampush CMO Offers 2014 Mobile Ad Insight on Raymond James Call
May 6, 2014
This week, financial services firm Raymond James hosted Ampush co-founder and CMO, Chris Amos, for a discussion of social advertising trends in the first quarter and his outlook for 2014. The conversation touched on everything from pricing variations and ROI, to Facebook’s mobile strategy and growth on Twitter.
The big takeaways for advertisers? Look no further than our comprehensive analysis of the major topics discussed on the call below.
Mobile, Social, & Native Remain in the Lime Light
When it comes to digital, mobile remains the only channel that continues to grow year over year, and in that same vein, social, which accounts for 20% of all time spent on mobile, continues to demand consumer attention and therefore advertiser money. In-app advertisements that appear in the news feed and camouflage with native content prove the best way to monetize both mobile and social trends, and advertising through platforms that leverage authentic identity to increase ad targeting, like Facebook and Twitter, are taking advertising effectiveness to the next level.
Ad Spend and Pricing Continue to Trend Up in Q1, Especially in Mobile
Ampush saw ad spend grow 15% sequentially from Q4 to Q1 – a surprising stat as ad spend usually peaks in Q4 due to end of year and holiday promotions and dip in Q1 as advertisers gear up for the coming year. This implies that more advertisers are making the move to mobile and increasing spend as native platforms improve their targeting, measurement, and overall effectiveness.
We have also seen an upward trend in pricing across the board driven by increased advertising demand, especially in mobile where CPMs are now two to three times higher than desktop. As expected, quarter over quarter pricing fell a bit due to holiday competition; however savvy advertisers are quickly noticing and jumping on this trend to test out campaign tactics for the coming year at a lower price than average.
ROI Now In Sight Thanks to Measurement Partners & Improved Targeting
Facebook is now beating out search and email when it comes to driving ROI in the gaming vertical due to its mobile centricity and ability to drive frictionless installs in a matter of a few clicks. Targeting enhancements, such as the addition of lookalike audiences from mobile apps and mobile retargeting, and improved mobile measurement and attribution models from both Facebook and third parties are only driving ROI higher.
Companies are showing greater sophistication overall when it comes to implementing strategies that drive ROI and knowing how to properly measure these efforts.
Mobile App Install & Engagements Ads – The Best Keep Getting Better
Mobile app install and engagement ads continue to demonstrate their value beyond solely the gaming vertical as more mobile-focused companies emerge in travel, e-commerce, and other verticals. We’re seeing more and more mobile-first companies find success acquiring customers and driving in-app purchases with Facebook thanks to mobile app ads and the continued expansion of Custom Audiences. We expect to see mobile app engagement ads scale up over time as more companies develop best practices and perfect their strategies for re-engagement.
Facebook is Rightly Placing Big Bets on Custom Audiences
Demand for retargeting remains high and Facebook’s Custom Audiences targeting solution has evolved to deliver on this need. In Q1, we saw the data-focused targeting tool expand its sources beyond CRM data to include data from company websites and mobile apps to enable retargeting across mobile devices and desktop. In addition to providing clear value beyond that offered by traditional cookie-based retargeting tools – which have lower match rates and can’t retarget cross-platform – we’ve seen Custom Audiences retargeting deliver triple to quadruple ROAS. We expect to see more advertisers allocating their spend on Custom Audiences versus FBX due to these added benefits.
Keep an Eye on Twitter, Pinterest
Facebook is still the leader when it comes to returns and remains our chief focus here at Ampush, but Twitter and emerging native ad platforms continue to update their ad offerings and capture our attention. Traditionally focused on branding and TV, Twitter has made a big push in the past few weeks to expand it’s direct response offerings with the launch of mobile app install ads and mobile ad network MoPub – both of which should be on mobile advertisers’ radars over the next few months as Twitter tests and hones these products. As for other players, we see the most promise in Pinterest due to the inherent intent-to-buy built in to pinning, and will keeping a close watch on Instagram, LinkedIn, Yahoo, and Tumblr!