IAB Affiliate Marketing Council, July 2011

The IAB Affiliate Marketing Council

28th July 2011

Agenda

Mobile Update

Jon Mew, Director of Mobile, IAB UK

Agenda

1. Mobile Developments

2. Mobile and retail

3. Ad spend

1. MOBILE DEVELOPMENTS

41% of the UK have a smartphone

21m in the UK use the mobile internet every month

Source: comScore April 2011

There is now scale

Source: IDC 2011

Q1 2010 Q1 2011

Global smartphone shipment figures

Smartphones accelerate beyond PC

M commerce is big and driven by smartphones

Source: IAB Consumer M-Commerce Study October 2010 Base All UK Mobile Users (1039)

Smartphone users are

63% more likely to engage in M-Commerce

The mobile mindset is completely different

Fixed PC

Search to purchase average 1 month

Mobile

Search to purchase average is 1 hour

Source: Bing

Consumers use mobile to respond

Mobile should be considered in all advertising campaigns as a potential response mechanism

=40%agree they often use their mobile if they see an interesting ad

Source: IAB’s Mobile & the Media Day Study, Jan 2011Base: Average of 500 respondents, over 7 days

Advertising has

become more

engaging

Location has finally happened

Mobile search has exploded

% Overall Google Queries that are mobile (by category)

Source: Google company presentation, Macquarie Capital (USA), March 2011

Source: Comscore GSMA/MMM

23% of online time is spent on mobile

2. MOBILE AND RETAIL

From pre to post purchase

Retail brands have

started to build

mobile strategies

3. MOBILE AD SPEND

Source: IAB / PwC mobile display ad spend survey 2010

Total mobile market 2010

like-for-like

Total mobile market 2010 vs 2009

Source: IAB / PwC mobile display ad spend survey 2010

2010 total mobile ad spend breakdown

Total market £83.0m(3.2%)(3.8%)

(0.5%)

(39%)

(54%)

(2009 % share figures in brackets)

Source: IAB / PwC mobile display ad spend survey 2010

+ 62%

+ 32%

+172%

£23.7m

£1.7m £1.1m £1.6m

£54.9m

+ 492%+ 18%

Source: IAB / PwC mobile display ad spend survey 2010

Industry sector display market shares

Based on 76% of submitted display ad spend

Source: IAB / PwC mobile display ad spend survey 2010

Change in industry sector display market shares 09-10

↓87%

↑129%↓3%

↑269%

↑160%

Top 5 Online Categories H1 20101.Entertainment & Media (14%)2.Finance (13%)3.Consumer goods (12%)4.Telecoms (11%)5.Travel & transport (10%)

Source: IAB / PwC mobile display ad spend survey 2010

Display revenue growth by quarter

Source: IAB / PwC mobile display ad spend survey 2010

+44%+74% +68%+68%

Mobile advertising growth

Source: IAB / PwC mobile display ad spend survey 2010

2008 2009 2010

mill

ions

UK Mobile Advertising revenues to reach £1 bn by 2015

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2011 2012 2013 2014 2015

£ (0

00s)

FirstPartner UK Mobile Advertising Forecast 2011-2015

Video

Search

Mobile Internet (Banners)

MMS/SMS Push Advertising

Games

www.firstpartner.net

Copyright FirstPartner 2011

FirstPartnerFirstPartnerCopyright FirstPartner 2011

£142m

£294m

£498m

£767m

£992m

Questions?

Legislation Committee

• Technical Working Group

→ Networks initially

• Decision to be part of a wider “your online choices”

→ Providing Affiliate input

• Meeting with the ICO

→ Discuss our ideas / projects

• ASA Good Practice Document

ePrivacy DirectiveWho has implemented it?

Have implemented Have not implemented

UKIrelandSwedenFinlandLuxembourgAustriaEstonia

Research Committee

• Now being headed up by Matt Bailey

• Client Survey is underway, working with the IAB

→ Likely to be ready in next few weeks

→ Agencies & networks support needed to distribute to Clients

→ Potentially present results at the A4U Expo in Oct

→ Objective is key sound bites to PR

• Contact matt.bailey@performancehorizon.com for ideas / get involved

Best Practice Committee

• Three projects complete, with IAB for sign off:

→ Affiliate Auditing / Approvals / Management

→ Ethical Merchant Charter (revisited)

→ Behavioural Retargeting (revision and extension)

• Three projects outstanding:

→ Product Feeds Guidelines

→ Cashback Education Piece

→ Affiliate Payment Protection

Updates on completed work

• Affiliate Auditing / Approvals / Management

→ Minor amends made based on feedback

• Ethical Merchant Charter (revisited)

→ What affiliates are paid for

→ De-duplication

→ Types of affiliate

→ Notice perionds

→ Leakage

→ Useful links

Updates on completed work

• Behavioural Retargeting (revision and extension)

→ Feedback on retargeting/remarketing terminology

→ Ad transparency

→ PI visibility and commissions

→ Detail on payment models (CPC vs. CPA)

• Consensus was that terminology needed to be standardised but document was detailed enough and any changes could make it overly prescriptive

New topics for discussion

• Suggestions for H2 2011:

→ Mobile

→ Attribution

→ Profiling different affiliate models

→ Social media

→ Best practice for programme launches

The AMC blog

• 6,848 people visited

• 11,992 Visits

• 33,069 Pageviews

• 2.76 Average Pageviews

• 00:01:51 Time on Site

• 29.93% Bounce Rate

• 56.84% New Visits

• 22.5% traffic from outside the UK

• Favourite referring keyword:

“asian nudes 4 u”

Attendees

Two monthly meetings:

Affiliate Window

Aviva

buy.at

Found

IAB

King.com

Non-Stop Consulting

OMG

Quidco

Stream 20

uSwitch

External Industry Bodies

‘Defining the Affiliate’

Publicity Opportunities

Events

• Retail• Sports• M-commerce• Mobile• Social media• Entertainment

We Want You!

Industry Updates

• IAB Performance Marketing Seminar

→ Affiliate Developments - Helen

→ Mobile Data – Owen

→ Search Insight – Tina

→ Lead Gen – TTH

• eConsultancy Affiliate Survey

http://econsultancy.com/uk/blog/7820-calling-all-uk-affiliates-the-2011-affiliate-census-is-now-liv e

A4U Expo Submissions

Feedback to Matt Wood:

matthew@existem.com@matthewwood

@a4uexpo@performanceIN

Thanks!

• MEC & David McNiven

• Jon Mew & David Fieldhouse

• Julia, Kev & Matt

• DRINKS!