EXECUTIVE SUMMARY

With this Year-in-Review S.M.A.R.T. report, we celebrate our 100th

piece of published research at Millennial Media.
Such a milestone reminds us to reflect on what weve accomplished and, more importantly, why we do what we do. In doing so, all
signs point in one direction: to make mobile simple for our partners.
At Millennial Media, we live and breathe mobile advertising. But for those just entering the market or even for the experts in this space,
theres a lot of information, a boatload of hype and, arguably, an overwhelming amount of data to digest. As the trusted independent
leader in mobile advertising, it is our responsibility to help you make sense of it all. To increase your mobile IQ. To guide you in
understanding how these trends impact your business.
We believe its more than just presenting you with raw data. Its about providing insights related to a collection of data connecting
the data dots, if you will. Thats our goal for all of our reports.

Shifting our attention to this S.M.A.R.T., there is one key trend that deserves the spotlight: mobile video.
+ In 2014, advertisers increasingly took advantage of mobile video advertising with the primary goal of driving brand awareness and
engagement. Twenty-two percent of campaigns on our platform included Watch Video actions.
+ Video realized an average of five times the engagement when compared to standard banners with some verticals experiencing
over 800% greater engagement.
+ Advertisers further honed their targeting strategies, capitalizing on tablets bigger screens and wifi connections in concert with
mobile video advertising.
Mobile video continues to deliver value the ecosystemfrom ensuring a rich user experience for consumers to providing greater
engagement to advertisers and driving revenue gains for publishers and developers.
Dig in. Let us know if you have any questions. Wed be happy to discuss how these trends impact you and how to take advantage of
this data to move your business forward.
Heres to 100 more reports!

GLOBAL MOBILE ADVERTISING TRENDS

Top 10 Global Brand Verticals

Vertical

Retail was the largest vertical on our platform in 2014,

followed by Telecommunications and Entertainment.
These top ten verticals by spend tend to remain
generally the same each quarter. The Government &
Military vertical entered the top ten this year, as more
state and local governments ran advocacy campaigns.

Retail
Telecommunications
Entertainment
Finance
Automotive
Consumer Goods
Pharmaceuticals
Travel & Tourism
Technology & Business Services
Government & Military

2014

2013

1
2
3
4
5
6
7
8
9
10

2
3
1
4
6
5
9
7
8
NR

Ranked by Spend.

Vertical Year-Over-Year Growth

The Consumer Electronics vertical showed the largest year-over-year growth on our platform in 2014, followed by Government &
Military and Pharmaceuticals. Growth in many of these verticals is coming from advertisers investing in richer functions, such as
video campaigns and rich media features.
Consumer Electronics
Government & Military

161%
Pharmaceuticals

110%
Portals & Directories

41%

Retail

49%

Year-Over-Year Spend 2014 / 2013

Source: Millennial Media, 2013 & 2014.

Based on analysis of a representative sample of campaigns.

189%

MOBILE VIDEO & ADVERTISER TRENDS

How Video Ads Impact Engagement
Due to its richer user experience, video ads see an average of five times the engagement when compared to standard banners. For
some verticals, video ads drive exceptionally strong value, such as Technology & Business Services, which saw an 822% increase in
engagement in video ads above standard banners.

Technology & Business Services

822%

Retail

628%

Finance

602%

Consumer Goods

561%

Government & Military

446%

Telecommunications

617%

Travel & Tourism

483%

Pharmaceuticals
Automotive

296%

Entertainment

366%

258%

Increase in Engagement Video ads compared to Standard Banners

27%

of Entertainment
campaigns use
video

Source: Millennial Media, 2014.

Based on analysis of a representative sample of campaigns.

22%

of Consumer
Goods campaigns
use video

10%

of Automotive
campaigns use
video

MOBILE VIDEO & ADVERTISING TRENDS

Ad Types by Device Type
On average, all campaigns on our platform are run on a broad mix of devices. However, video ads are more heavily targeted towards,
and run on, tablets at twice the rate of all ad units. This smart targeting takes advantage of tablets bigger screens to run seamless
video ads.
Tablet
Smartphone

40%

59%
21%

72%
Video

All Ad Types

Consumers Who Watch Mobile Video

Consumers are watching video on their mobile devices, especially younger users. More than half of consumers under the age of 35
watch video on their mobile devices, either smartphones or tablets. Growth in watching video on mobile devices is coming from
mobile users of all ages, but the largest year-over-year growth was seen from those 35-64, which increased an average of five
percentage points from the previous year.

57%
54%

18-24

51%
48%

25-34

41%
36%

35-44

28%

45-54

22%
18%
13%

55-64

9%
6%

65+

2014

2013

Source: comScore MobiLens December 2013 & 2014.

Source: Millennial Media, 2014.

Based on analysis of a representative sample of campaigns.

According to data from

eMarketer, video ad spend
in the United States is
expected to double in the
next five years.

GLOBAL MOBILE ADVERTISER TRENDS

Post-Click Campaign Action Mix
Retail Promotion actions were used in 15% of campaigns on our platform in 2014, where advertisers promoted a sale or discount on a
product or service. Watch Video actions were included in 22% of campaigns on our platform. Video is most often paired with Site
Search (37% of the time) and m-Commerce actions (11% of the time).

30%
29%

Site Search

25%

App Download

34%
22%

Watch Video

18%
15%

Retail Promotion

10%
14%
13%

m-Commerce

10%

Location

12%
8%
8%

Enroll/Join/Subscribe

6%
7%

Dynamic Functions

4%

Social Media

8%
2%

Place Call

4%

2014

2013

Source: Millennial Media, 2013 & 2014.

Based on analysis of a representative sample of campaigns.

GLOBAL MOBILE ADVERTISER TRENDS

Verticals Most Frequently Using an Action
Certain verticals utilize specific calls-to-action in their creatives more frequently than others given the nature of their businesses and the
consumer actions they wish to achieve. The vertical utilizing Place Call actions most frequently was Telecommunications, as 63% of all
Place Call actions were included in campaign creatives for this vertical. These actions often directed consumers to call and sign up for
new cable or TV service. 36% of Social Media actions were included in Consumer Goods campaigns, which often sent consumers to a
social media page where they can see what other users were saying about a product.
Telecommunications

63%

Retail

53%

Retail

44%

Finance

Consumer Goods

Retail

34%

34%

36%

Entertainment

Social Media

Watch Video

Automotive
Entertainment

20%

Consumer Goods

14%

11%

App Download

Dynamic
Function

30%

Enroll / Join /
Subscribe

Location

m-Commerce

Place Call

Retail
Promotion

Site Search

Rimmel London
Rimmel London ran a successful mobile campaign that
integrated multiple mobile features and actions, including
YouTube videos, live Twitter and Instagram feeds, and a
curated playlist. Together, the aim of these actions was to
drive consumers to a site to purchase their mascara.
Learn more at www.millennialmedia.com/client-stories

Source: Millennial Media, 2014.

Based on analysis of a representative sample of campaigns.

GLOBAL MOBILE ADVERTISER TRENDS

Brand Advertisers Campaign Goals
In 2014, advertisers on our platform most frequently ran mobile campaigns with the goal of generating Brand Awareness &
Engagement (37%), which was largely achieved through video ads and re-targeted messages. 24% of the campaigns on our
platform had a goal of generating Site/Mobile Traffic, which often drove consumers to mobile apps or sites where more
information on the product or service could be found.

37%

Brand Awareness & Engagement

22%
24%

Site/Mobile Traffic

30%
16%

Increased Foot Traffic

10%
9%
9%

Registrations

3%

Product Launch/Release

5%

2014

2013

Malibu Rum
Malibu Rum was looking to increase consumer awareness of
and engagement with its brand. Mobile video ads provided
Malibu with the ability to customize brand interaction with
multiple content and messages.
Learn more at www.millennialmedia.com/client-stories

Source: Millennial Media, 2013 & 2014.

Based on analysis of a representative sample of campaigns.

GLOBAL MOBILE ADVERTISER TRENDS

Most Common Goals by Vertical
Campaign goals are dependent on the product or service being advertised. The vertical running Increased Foot Traffic campaigns
most frequently was the Retail vertical (33% of all Increased Foot Traffic campaigns), as Retailers running mobile campaigns are heavily
focused on driving in-store visits and sales. 29% of campaigns driving consumer Registrations were run by advertisers in the Finance
vertical offering consumers a chance to get a quote on insurance rates or see if they qualify for specific financial services.

Automotive

52%

Retail

33%

Finance

29%
Entertainment

Consumer Goods

17%

16%

Brand Awareness
& Engagement

Increased
Foot Traffic

Product Launch /
Release

Registrations

Site / Mobile Traffic

Paramount Pictures
Paramount Pictures International ran a campaign using
compelling video creative in order to drive trailer views and
awareness among 16-49 year old males for the upcoming
release of Transformers: Age of Extinction.
Learn more at www.millennialmedia.com/client-stories

Source: Millennial Media, 2014.

Based on analysis of a representative sample of campaigns.

GLOSSARY
Audience Targeting A strategy used by advertisers to deliver relevant messaging to specific target audiences. Built upon massive
volumes of diverse user, location, app, and 3rd party data, Millennial Medias audience targeting uses a variety of targeting
techniques to reach audiences, including behavioral, local, contextual, demographic, retargeting, tactical, and content-based
solutions.
Cross-Platform Pertaining to multiple devices (smartphones, tablets, feature phones, non-phone connected devices), carriers
(AT&T, Verizon, Vodafone, etc.), or platforms (iOS, Android, BlackBerry, Windows Phone, Symbian, etc.). Millennial Media is
cross-platform or platform agnostic because we do not focus on one single OS or device type. This enables advertisers to reach
as many mobile users as possible, regardless of their mobile device or carrier of choice.
Developer Provider/creator of mobile applications and sites. Developers range from large entities (brands, portals, news sites,
etc.) to individuals who focus on just a handful of applications.
Feature Phone Any web-enabled mobile phone that is not a smartphone.
Impression A count of the number of times an ad unit appears on a mobile device.
Interactive Video A high-impact video ad layered with interactive features that deliver a uniquely mobile, actionable experience
to customers.
Inventory The ad space available on mobile websites and applications.
Non-Phone Connected Device A non-phone mobile device. This includes tablets, gaming devices, e-readers, MP3 players, etc.
Post-Click Campaign Action The action a marketing campaign is driving the customer to take once an ad is viewed (i.e., Place
Call, Download Application, View Map, etc.).
SDK Software Development Kit. A tool that enables developers to seamlessly integrate mobile advertising into their applications,
thus monetizing their apps. Developer partners on Millennial Medias platform download and integrate our SDKs (available for a
variety of operating systems iOS, Android, Windows Phone, etc.) to gain access to the ads run by our advertising partners.
Smartphone Any web-enabled and application-enabled mobile phone that runs on an operating system and offers the user
more advanced capabilities beyond just voice and mobile web access.
Vertical The classification of advertisers by industry.

SUMMARY & REPORTING METHODOLOGY

S.M.A.R.T. Report
The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.) delivers regular insights on key trends in mobile advertising
based the analysis of a sample of actual standalone campaign and platform data from Millennial Media.
Visit www.millennialmedia.com/mobile-intelligence to sign up to receive Millennial Media-related news including the Mobile Mix
report, the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.) report, and the Mobile Intel Series.

Millennial Media
Millennial Media is the leading independent mobile marketplace, making mobile advertising simple for the worlds top brands, app
developers, and mobile web publishers. Millennial Medias unique data and technology assets enable its advertising clients to connect
with their target audiences at scale. Millennial Media also drives monetization for its publisher and developer partners by connecting
them to networks, advertisers, and a real-time-bidding, or RTB, exchange. For more information, visit www.millennialmedia.com.
For questions about the data in this report, or for recommendations for future reports, please contact us at
research@millennialmedia.com.

2015 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.