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Does mobile advertising work? The fate of an industry that currently generates billions of dollars in revenue depends on the answer to that question. This report provides some answers, and continues Stratecast’s analysis of an expanding area of the Big Data and analytics market: mobile, retail, and location analytics.

Executive Summary

Does mobile advertising work? The fate of an industry that currently generates billions of dollars in revenue depends on the answer to that question.
This report provides some answers, and continues Stratecast’s analysis of an expanding area of the Big Data and analytics market: mobile, retail, and location analytics.1
The report’s main conclusions and key takeaways are as follows:

1. Brands are finding it difficult to sell to, or even to effectively communicate with, consumers who are more mobile and less loyal than ever before. Consumers, to make things even more challenging, are accessing Big Data on their smartphones, tablets, and computers to make informed decisions; execute split-second transactions; and tell the world all about it on social networks.
2. One of the things brands are trying, in order to resolve this, is mobile advertising. The global mobile advertising market, now heavily concentrated in the U.S., generates billions of dollars in revenue annually—and mobile is now the fastest-growing form of advertising. Brands are spending about $ per smartphone user per year to advertise to U.S. mobile users.
3. Reaching buyers on the go is a common thread across verticals, but different verticals are turning to mobile advertising for varying reasons: bricks-and-mortar retailers need to engage shoppers long before they enter a store, and mobile advertising helps them do so. Banks have allowed a tightened regulatory environment, and their lingering “come into our bricks-and-mortar branches and we’ll be happy to help you” mindset, to distance them from their customers. Mobile advertising represents an opportunity for banks to reconnect with customers. Local shopkeepers may be outgunned by the Big Data prowess (and budgets) of national and global brands, but mobile advertising offers a way to turn the tables on the behemoths by looking every bit as slick and professional on the screen of a smartphone.
4. The main enablers and beneficiaries of the growth of the mobile advertising market arecontent publishers such as Facebook and Google, ad network providers such as Millennial Media, handset manufacturers such as Apple, and communications service providers such as Vodafone and AT&T. Underscoring the importance that brands and financial markets place on mobile advertising: the underwhelming stock price performance of Facebook until it proved it was able to monetize mobile users through mobile advertising.
5. There is no such thing as one type of mobile advertisement, à la, “I’d like one mobile ad, please.” Stratecast has identified forms of mobile advertising, several of which are brokenout into sub-types; and all are hard at work reaching mobile users in different ways and venues, and at varying time periods.
6. The most important question in mobile advertising is: does it work? Are mobile ads driving consumers to the cash register? Big Data is now providing answers to the revenue performance of advertising, not only on smartphones but also on computers and tablets. Identifying path-to-purchase, and which channels are driving sales, is vital to this determination; and Big Data is now making that possible.

This report is designed to speak to the needs of these roles and teams:

Enterprises
- Big Data, IT and Data Science teams
- Product and Sales & Marketing teams, including the CMO
- Brands and their digital marketing agencies
- C-Suite
- All other line of business (LOB) stakeholders

Communications service providers (CSPs)
- Product and Sales & Marketing teams
- Customer Experience Management (CEM)
- Revenue and Relationships

Table Of Contents

Brands are Spending More on Mobile Advertising, but is it Working? Prove it--with Big Data
Table of Contents
Executive Summary .. 3
Introduction ... 4
Why Brands Are Turning to Mobile Advertising . 6
Mobile Is the Fastest-Growing Type of Advertising 7
Mobile Advertising: Form and Function .. 8
Mobile Advertising is Growing…but Are Mobile Ads Driving Sales Growth? . 10
Mapping Path-to-Purchase is Crucial, but Elusive . 10
Cookies Crumble on Mobile Devices 11
Social Analytics Quantifies Likes and Shares, not Sales .. 11
Does Mobile Advertising Work? Answering that Question with Big Data ... 12
AdHaven Bullseye Platform Targets Mobile Ads to More than 152 Million Mobile Devices . 12
AdHaven Bullseye HyperLocal Adds Geo-fencing for Near-Store Analytic Granularity 12
The Proof is in the Delta 13
Screen Attribution with AdHaven Bullseye Multiscreen 13
Using Big Data to Deliver Big Results for Brands . 13
Privacy is Paramount in Mobile Advertising ... 14
Does Mobile Advertising Work? Big Data Answers the Question 14
The Last Word . 15


List of Figures

Figure 1: Major Providers (Revenue Leaders) in the Mobile Advertising Market ... 7
Figure 2: Facebook's Stock Price Reaches Its Highest Point Yet (23 May 2014) 8
Figure 3: Mobile Advertising: Form and Function ... 9
Figure 4: The Four Screens Brands Must Reach (and Measure) with Ad Campaigns .. 11

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