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Why audio ads could become the preferred method of advertising in mobile gaming

August 18, 2022 — by MediaMath

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Mobile gaming is fast outgrowing the gaming industry. It’s expected to hold about 61% of the entire gaming market share in 2022 and is estimated to be worth USD$139.5 billion by 2026. In a survey done by Statista, 60% of adults surveyed said that they were playing mobile games with 51% being female and 49% male.

Ads in mobile gaming have become the norm and people expect them. Some ads within mobile games come with incentives to view the ad, such as free content or rewards, however many people can find that these ads are intrusive and interrupt game play. Currently, the most popular format of ads being displayed in video games are Interstitial Ads and they’re often considered the most intrusive. These are full-screen ads that users can often only skip after watching them for a certain amount of time, these can either be static or video ads. These formats can drive some users to ad blockers or to click out of the ad as soon as they are able to.

So how can advertisers improve the gaming experience?

In a recent study with YouGov, it was found that players of mobile games would prefer audio ads over other forms of in-game advertising if they wouldn’t interrupt game play. The study showed that when it comes to apps monetising their ads, 18% preferred video ads, 26% In-App Purchases (IAP) while 28% see audio ads as their preferred monetisation model.

Audio ads have been proven to have one of the highest engagement rates and are one of the most cost-effective ways to advertise. The YouGov study found that long-term retention of audio advertisements is 36-39% stronger when compared to video ads and revealed that 61% of people listen to music on their mobile phones whilst playing mobile games, meaning that audio advertising is a great way to tap into an audience that is already listening to audio. To do so, the audio ad pauses what’s currently being listened to, plays the ad and then resumes what the user was listening to on their streaming platform of choice while displaying a banner ad at the bottom of the screen, all without interrupting game play. This allows for a more user-friendly experience with a higher chance that the consumer is going to remember your ad and engage with your content, even at a later date.

To have an advertising method that is both truly user friendly and yields good results is rare, so make sure you take advantage of this highly effective strategy and MediaMath’s partnerships with some of the largest audio publishers and networks such as AudioMob so you’re easily able to deliver your consumers with high-quality audio ads. Click here to learn more about how MediaMath can help with your audio ad campaign or email your client services representative.

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Employee Spotlight: “I Saw Mobile Coming”

December 2, 2016 — by MediaMath

From a philosophy and religion major, to touring the country following the Grateful Dead and even becoming a professional canoe guide, Michael Weaver, VP, Product Strategy, Growth Media at MediaMath, never thought he’d end up in the advertising field or digital economy while in college.

“In my dorm, there was one person who had a computer that we all tried to share to write papers on,” said Weaver. “But most of my papers were written on a typewriter!”

Now, Weaver is at the forefront of mobile.

He got his first taste of digital through a friend. “In 1993, a friend of mine who was very involved in the new age of computers was talking about the World Wide Web which we were just coming into familiarity with. So we started a little company out of our apartment where we would go to stores and restaurants offering to build a website for them.”

After his first exposure to the digital landscape, Weaver’s college roommate started his own company called BlueStreak. Here, Weaver was able to go to ad agencies and explain that there’s this thing called the internet.

“I’d have to explain to people that they’re going to need a website and, when that happens, they’re going to want to advertise. And when they advertise, they’re going to need to measure and deliver ads,” said Weaver. “So it was a lot of explaining the future to a lot of ad agencies in that role.”

After BlueStreak, Weaver started his own company Third Screen Media because, he says, “I saw mobile coming.” This was pre-iPhone days, pre-apps, pre-universal SMS, but he saw it coming because it was the future and advertisers were interested. Thereafter, it was sold to AOL, which was known as America Online at the time and after a stint at Microsoft, Weaver landed a job at MediaMath.

“Mobile is necessary. It’s 60 percent of the supply right now coming in to the bid stream, so six out of 10 hits on the internet are basically mobile-first. And if you start to skew towards millennials, its even higher,” said Weaver. “So it’s new and it’s exciting, but it’s not new because people are there. And its funny, I think back on talks and how positioning mobile has changed and it used to be messaging. Now it’s just ubiquitous, and it’s there and it’s the primary way people consume media, and that’s only going to increase.”

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Opinion: We Need to Talk About Value

September 30, 2016 — by MediaMath1

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How much advertising can a viewer, listener or reader tolerate before they lose interest in the content? It’s a question that’s constantly being answered as advertising has always been a trade off. Much of the content consumed today is supported in part, or in full, by advertisements. The problem? People tend to hate advertisements. Maybe hate is too strong a word to use, but most people accept advertisements as the trade off to consuming content at a specific price, or more often, for free.

Historically, radio and TV were services provided at no cost to the public and were supported in full, or in part, by advertisements. Programs were cut into pieces and advertisements were slipped in between those pieces to help monetize the content. The upside to content consumers? There was no monetary cost to consume the content. Sure, there were barriers to entry (like purchasing a radio or television) but in general, there has always been free content available for those interested, provided they can tolerate the advertisements.

This concept of ‘free’ content has grown to be more complicated as digital and online advertising has continued to mature. Websites are now able to monetize users in more advanced ways than simply showing an advertisement on a page.  Data companies work with content providers (publishers) to track browsing behaviors across the web. This creates an interesting conundrum. In some way, it can help reduce the number of ads being shown, as the content is being monetized behind the scenes. However, it also allows ads to become far more targeted, as advertisers can leverage browsing habits and history to show more targeted adverts to consumers. The ‘creepy factor’ of advertising is something advertisers are constantly struggling with. However, one thing is clear – users are expecting more value from the advertisements they are being shown. By the same token, consumers have more options than ever before on where they turn to for content.

For most, the mobile device is the most personal and most used device. It’s also a device filled with a wide variety of apps used to consume content, that are incredibly easy to switch between. A content experience too filled with advertisements will push a consumer to another app, website, etc. So where is the new balance? The iOS ecosystem alone has created over 1.4 million jobs as of December 2015. These jobs are created and these apps are often supported by advertising. The same value exchange that began with radio, TV and newspapers exists today in the app ecosystem. But the smartphone is the crux of our digital lives and as such – must be treated differently.

If you ask me — we need to start providing true, real and actionable insights and value into the messaging that’s being shown to content consumers. The amount of data that is at the disposal of an advertiser is now tremendous. Let’s begin to leverage it! By bringing in datasets from outside of the standard information seen in a bid request, we as an industry can begin to layer on to provide actionable messaging. Imagine an ad that lets you know the subway is delayed before you leave for your commute, or notifies you that it’s raining and be prepared for traffic. These types of messages provide actionable insights for content consumers.

Advertising works. Entire industries have been built on the success of advertising, but advertising must continue to evolve. As users adopt ad blockers and as content publishers respond by creating pay walls – or mechanisms to block content to consumers unwilling to see ads – a new form of value must emerge.

Advertisers and content publishers alike must strike a balance that keep users engaged with the content, while maximizing advertising potential. If advertisers push users to adblockers, content publishers will be forced to find new ways to monetize their sites and the number of options are fairly limited. For this equilibrium between content consumers and the advertisers/publishers to exist, it must continue to evolve.

Advertisers and publishers must begin a new dialog around value with content consumers. Advertisers need to start providing a new level of value so that consumers are engaged, while publishers create effective content experiences. In other words, advertising must continue to evolve in order to provide new forms and types of information.

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MediaMath’s Take on Mobile

September 28, 2016 — by MediaMath

Mobile represents 65 percent of consumers’ digital media time, according to ComScore. By next year, mobile advertising will represent ~70 percent of US digital ad spending, roughly $57B, according to eMarketer. What do marketers need to know to take advantage of this growing commerce channel? The below video talks about three areas of mobile that marketers need to pay attention to: the fragmentation of the market, how context is needed in mobile and the fact that optimization on mobile is more complex.

Want more mindshare on mobile? Read the below blog posts:

The Use Case for Hyperlocal: What Marketers Need to Know

3 Lessons Companies Can Learn From the Pokémon Phenomenon

Bridging the Gap: Changing the Way We Think About Mobile eCommerce

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The Use Case for Hyperlocal: What Marketers Need to Know

August 8, 2016 — by MediaMath

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The cat is out of the bag on hyperlocal targeting. Marketers have recognized the value of location specific advertising on mobile and are putting significant dollars behind the tactic. In the US alone, location targeted mobile ad revenue is expected to reach 18.2 billion by 2019. To put that in perspective, 2015 had only 6.8 billion dollars in mobile location ad revenue. Hyperlocal mobile targeting allows advertisers to message users in a very specific location. But what should those locations be? Let’s take a look at a few examples of the power of hyperlocal mobile location targeting.

Proximity Targeting

This one is obvious, but it’s powerful enough that it can’t be left out. The ability to message a user at or near a specific location is incredibly powerful. For the first time, marketers are able to message users digitally with great accuracy, while knowing exactly where they are. This of course is unlocked by the information signals mobile devices receive, specifically signals coming from apps that have been given access to the GPS functionality of the device. Let’s be clear – we never had this type of information precision on desktops. Retailers can now message users when they are within a few blocks (or any radius) of a brick and mortar location. By providing valued incentives (coupons, discounts, etc.) these advertisements can be incredibly effective at driving foot traffic. Brands can message users while they are in a department store and showcase products they know are inside (and even in stock) at the specific location the ad is being viewed.

Conquesting

Location is a great signal of intent and should be used as such. In the scenario of a device being seen at an auto lot, it can be inferred that said person is likely in-market for a new vehicle. Messages can be tailored accordingly and shown to the device owner. However, what if the device isn’t on your auto lot, but instead a competitors? This is an excellent scenario to leverage hyperlocal mobile targeting in efforts to lure users away from a competitor and towards another brand! In the desktop world, conquesting is often used as a tactic in online advertising and these practices can be effectively carried over to mobile. Targeting the physical footprint of competitors can be an effective method of conquesting and easily achievable via hyperlocal mobile targeting!

Association

Some brands or advertisers may desire an association with a specific activity, location or event. This could be as simple as geofencing around Central Park or a beach. Nevertheless, the impact may be substantial. By advertising to users when they are at a specific type of location, a brand may be able to tie association to that activity. For example, a sunscreen brand may want to reach users at the beach, or a shoe company may advertise at sporting venues. These types of associations, while definitely more brand-focused as opposed to a direct response campaign, can be great ways to leverage location targeting.

Need Based Association

It’s important to remember that location is not a tool that must be used in a vacuum. Location information is a powerful tool when used alone, but we can enrich our understanding of a location by layering on other types of information. By layering in information like time of day, or current weather conditions, advertisers can create much more powerful campaigns. For example, knowing that it’s raining and a user is near an outdoor recreation store may present an opportunity to showcase an umbrella in a mobile ad. By surfacing relevant real time information such as weather, it can allow advertisers to add move value to their messaging and make it more likely for the viewer to take action. By leveraging time and location, marketers can serve the most relevant messaging.

Retargeting

While not a new concept, knowing the device that an ad was served to, in real time, while at a specific location, opens the door for powerful re-marketing and retargeting campaigns. Advertisers should be leveraging the fact that they know that an individual device was at a specific location, to create more relevant messages for users. What’s more, advertisers can use this past location information to drive foot traffic, conversions and purchases by incentivizing users based on their location history.

Hyperlocal location targeting can be an incredibly powerful tool when used by marketers. Advertisers should be pushing the limits of traditional location based campaigns and looking to layer new types of targeting, information and data, on top of the powerful location signals received.

So get creative!

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3 Lessons Companies Can Learn From the Pokémon Phenomenon

July 26, 2016 — by MediaMath

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This article originally appeared on Entrepreneur.com.

Every once in a while, there’s a product that successfully delivers on several fronts: user experience, adoption, monetization and growth potential. It’s rare to achieve all four. But Pokémon Go has entered that special category. The mobile app that sends players on an augmented reality adventure in real locations around their homes, offices and neighborhoods has been downloaded 15 million times since it was released last week. Now what?

I’m as enthralled with the game as everyone else. Except my motivation is from a product and advertising perspective. Pokémon Go effectively uses all aspects of the device it is built on (mobile), has achieved an unprecedented adoption rate, gone viral in mainstream media, surpassed Twitter’s U.S. user base and found an effective monetization model (fastest-ever game to get to the top of mobile revenue charts, all in just seven days). It provides the first real showcase for a technology that has threatened to break through for a few years – augmented reality. And with today’s announcement that Niantic, the game developer behind the Nintendo game, will allow a unique form of in-app advertising in Pokémon Go, the opportunity for marketers is rife. Here are a few takeaways from the hit game that businesses should think about in the context of mobile, consumer engagement and getting a great product to market fast.

Lesson 1. Mobile done right is great.
Pokémon Go is an illustration of the power mobile can have if its features are harnessed smartly. Nintendo has gone from being phenomenally late to mobile to nailing all that is good about it. They built a product that delivers a unique experience by tapping into the unique capabilities of mobile — location, camera, hi-res graphics. The app was not perfect. It has had multiple glitches (Gmail security concerns on iOS, scalability challenges), but was strong enough to catch the attention of millions of users. This app concept was validated by a previous app built by Niantic, Ingress, and is likely built on the Ingress engine. It’s a pretty cool illustration of lean product development, testing ideas quickly and iterating to a product that is truly powerful.

Lesson 2. The real and virtual worlds can be blended seamlessly.
Pokémon Go is the first solid example of a technology concept promising to break through for nearly a decade — augmented reality. Despite the hype, augmented reality never hit its stride. In the realm of mobile, it’s an area typically fraught with issues related to processing power and development fragmentation. Still, it’s a market — along with its companion virtual reality — expected to reach $120 billion by 2020, according to Digi-Capital.

Where Pokémon Go succeeded is in not just seamlessly blending the real world with the imaginary or the overlay of graphics through the camera, but by enabling true real-world actions and interactions. Strangers playing the game get off their couches, talk to each other and congregate for Pokémon catching sprees. It’s an impressive example of driving very specific human behaviors through a well-gamified product. And they have built an open-ended product. This gives brands and businesses a “platform” to build their experiences on top of, much like a well-built tech platform puts tremendous power in the hands of developers (think iOS/Google and the App Store). A lot of the early beneficiaries of this have been brick-and mortar stores—people discovering a really cool bakery in their neighborhood because it is a Poke Stop, store owners laying out “Lures” for players and driving foot traffic and brands tweeting about the existence of Pokémon near their store. Nintendo has taken the logical next step and integrated advertising in the app experience by way of retailers and restaurants becoming sponsored locations, instead of annoying banner or pop up ads.

Lesson 3. Advertising should blend with and enhance the user experience.
The ultimate goal for a brand is to be able to drive purchase of their product. The ongoing quest for marketers is to deliver an ad experience that is relevant, valuable and actionable by the user. The workflow for online advertising goes like this: serve ad, customer clicks, buys product online / in-store and action is attributed to served ad. It’s vital to deliver the ad at the right time and in the right place.

Pokémon Go illustrates an elegant way to simplify this flow by literally walking consumers to the door steps of physical locations while keeping them engaged in their quest for monsters. There is an incredible array of things Nintendo can now do with this app — from a pure user experience standpoint and from the advertising/monetization angle. Think dynamic allocation of sponsored locations based on real-time data such as weather, deals from nearby stores and more. And we haven’t even touched the rich data set and all the ways that it can be leveraged.

The best part for marketers: advertising is fitting seamlessly into consumers’ lives and adding value instead of interrupting their tasks. It’s experiential marketing at its finest.

Will Pokémon Go endure? Yes, as long as Nintendo keeps a strong product-thinking lens that puts superior game quality and user experience front and center. The shortsighted approach is to push augmented reality into everything we do, inserting advertising content at every possible turn. There will be countless mobile app copycats who will attempt to do just that.

The responsible way to look at the Pokémon Go phenomenon is as an illustration of a smartly designed platform connecting multiple pieces of technology to create a monetizable product that offers a powerful user experience. There are lessons to be taken from the game’s success and applied throughout the mobile marketing ecosystem, and smart marketers will do just that.

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Making the Most of Digital Marketing on Social Platforms

July 5, 2016 — by MediaMath1

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This article originally appeared on EContent Magazine

The divide between the physical and digital world is diminishing very quickly. Consumers are constantly mobile and have various devices to cater to a “live-in-the-moment” type of world. As people become more mobile, the channels and ways of interactions are multiplying quickly. E-commerce capabilities available on third-party platforms such as Snapchat, Google, Pinterest and more allow brands to more easily have conversations in the consumers’ own environment. It is no surprise that social platforms have become common marketing tools to reach the connected customer. But, not all social media platforms are alike, and neither should the marketing campaigns that utilize them be.

Where Marketers Should Engage Customers

Following in the footsteps of Facebook, Instagram, and Pinterest, Snapchat recently implemented “shoppable” advertisements, allowing their 100 million users to simply swipe up to buy a product. While this fast (10 seconds to be exact) approach to advertising is relatively new, the adoption of ad capabilities by social media platforms is setting the stage for what’s to come for both publishers and brands alike.  From a marketing perspective, the shift toward more dynamic storytelling forms of media such as real-time messaging apps like Snapchat are opening up the ways in which marketers can engage with their audiences that go beyond the traditional forms of digital advertising. But this trend also begets another challenge: keeping up with the vast number of new social media platforms entering the market on a regular basis, understanding their users and learning the best way to utilize the platforms to communicate with them. It is inevitable that there will continue to be dramatic changes over the next few years as social media platforms go in and out of popularity. Brands must determine the best places to interact with their customers and be mindful of how they interact with them.

Marketers Need to Get Personal

The key to turning these channels into successful commerce opportunities is taking the insights from customer data and determining how to best utilize them for personalized marketing tactics. Having a pool of data from these social channels will allow marketers to better target their audiences based on a number of factors such as behavior, demography, and location. Using this data, marketers can target their desired audience across multiple applications, serving diverse creative based on the user’s preferred social media platforms all within seconds. However, it’s important to remember that while leveraging user data from these platforms can promote effective commerce opportunities, relying exclusively on it will result in a platform-centric engagement and not a customer-centric engagement. Brands that are not cautious of this will find themselves compromising long-term gains in favor of short-term wins.

What Tools Marketers Can Use

The tools and channels to reach customers in the marketing world are evolving at the speed of light, yet many brands are still playing catch-up. As the customer experience becomes more interactive and connected all of the time, how do brands take advantage and keep up with the new marketing shift? Brands must set up an infrastructure that enables them to always market in a way that meets customer demands and behaviors and have the ability to plug into a variety of platforms quickly as they emerge. Using programmatic marketing as an infrastructure, brands gain the most cost-efficient way to deliver personalized content to target audiences at scale in a very quick and systematic way. Programmatic marketing allows brands to leverage data to deliver the right message to the right customer in the right context in an intelligent, automated, and scalable fashion.

Moving forward, programmatic will no longer be just a line item in the marketing plan, but will be the primary method of managing digital spend. This will allow both campaigns and the overall marketing strategy to be increasingly consumer- and user-centric, regardless of the channel. The goal is to address customers in a manner that is not only specific, but that also allows for ongoing, two-way interaction across addressable channels.

The Future of Digital Marketing in Social Media

Due to the enormous potential for direct response activations coming from the wealth of data patterns of user engagement, different social platforms will continue to emerge as key ad platforms. More than ever, marketers will need to develop creative digital experiences tailored to individuals and utilize technology solutions to provide cross-targeting and reporting across multiple channels/platforms. With hundreds of billions of dollars in the balance, understanding how to gain insight from vast amounts of data about audiences and the different media they consume across all channels can be the difference between success and failure for the world’s largest brands.

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The Crawl, Walk, Run, Fly Approach for Doing Mobile Right

June 8, 2016 — by MediaMath

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This article originally appears on iMedia Connection. 

A lot of marketers are “doing mobile” — but as part of something else as opposed to making “everything else” a part of mobile. Approaching it this way means failing to do mobile with intent and purpose in a world that’s completely driven by mobile. In 2015, mobile received the highest percentage of digital ad spend it’s ever had, at 52.4 percent, with roughly $30.45 billion dollars spent. In the next four years, 45 percent of total e-commerce is expected to transact on mobile, generating roughly $284 billion dollars in sales. Are you, dear marketer, planning to share in this pool of revenue? If yes, then you need to change the way you’re doing mobile. Here’s an approach that can help.

If you’re already “doing mobile,” what’s to follow might knock you back a few pegs. Because while you may already be at, say, the “Run” phase, if you didn’t complete the “Crawl” and “Walk” phases correctly, you likely aren’t really getting the most out mobile. You need to do each step effectively to maximize mobile and reap the biggest rewards. Here is a breakdown of each phase and the questions to ask yourself and your business to get on the right path.

Crawl

Treat mobile as a different channel, not necessarily an extension of display. Optimize media buying/marketing tactics to purposefully reach consumers on the right mobile device using mobile-specific creative units.

Questions to ask:
– Are your ad creatives optimized for mobile devices?
– Are you comparing display versus mobile performance and optimizing accordingly?

Walk

Identify and specifically target consumers based on mobile-specific characteristics, such as app IDs (supply whitelist), location, and second-party data, including weather. Execute campaigns against mobile-specific outcomes like app downloads and mobile commerce.

Questions to ask:
– Are you targeting audiences on mobile using mobile-specific characteristics?
– Are your mobile campaigns tied to true mobile outcomes?

Read the rest of the article here.

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PushSpring Adds MediaMath As Data Destination Partner

May 30, 2016 — by MediaMath

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This byline originally appears in a MediaPost article. Read an excerpt of the article below: 

MediaMath will include PushSpring’s proprietary mobile app data on its programmatic demand-side platform (DSP), PushSpring announced Tuesday.

After integrating with MediaMath’s Terminal One (T1) platform a week ago, PushSpring is already seeing demand for its data from MediaMath customers and PushSpring Audience Console customers, said Tyler Davidson, co-founder and CRO, PushSpring.

MediaMath is PushSpring’s twentieth data destination partner. Others include DSPs such as The Trade Desk, InMobi and Google’s DoubleClick; DMPs like Oracle Data Cloud, Nielsen’s eXelate and Lotame; and data onboarding with LiveRamp and Acxiom.

Read the rest of the article here.

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In-App Mobile Programmatic Ad Spending Poised To Grow

May 10, 2016 — by MediaMath

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Could in-app programmatic ad spending soon outpace programmatic spend for the mobile web? Read an excerpt below from a MediaPost article to find out more:

While programmatic buying for the mobile Web is more popular among buyers than buying in-app inventory programmatically, in-app buying is poised to grow.

In fact, eMarketer estimates that the U.S. in-app mobile ad spending market—which includes both search and display advertising—will reach $20.79 billion this year, accounting for 72.4% of total mobile ad spending. A large portion of that in-app ad spending transacts traditionally, not programmatically. But this dynamic is about to change.

Speaking during the Mobile Marketing Association (MMA) Mobile Automation & Programmatic Leadership Forum on Thursday, eMarketer Senior Analyst Catherine Boyle said that the digital researcher forecast that U.S. advertisers are projected to spend $15.45 billion programmatically to serve mobile ads. That number is expected to hit $21.22 billion in 2017, or 37% year-over-year growth, according to eMarketer estimates.

In-app advertising, Boyle said, will be a key driver of this growth. To contextualize that $15 billion figure: it’s 10x the $1.5 billion Powerball jackpot, which was the largest in U.S. history. And it’s more than the industry will spend on radio, newspaper and magazine advertising combined in 2016.

In addition, eMarketer projects U.S. advertisers will spend $22.39 billion on mobile display ad spending in 2016. “The mobile display advertising business is not a small business,” Boyle emphasized. And, $15.45 billion of that will be spent programmatically.

But, the elephant in the room? It’s Facebook and the role it plays in mobile programmatic. In fact, currently the bulk of mobile programmatic dollars will flow to Facebook—51% of the ad dollars in 2016, according to eMarketer. But in 2017, that trend will shift just a bit as the majority (53%) of mobile programmatic ad dollars will be spent outside of Facebook. 

Boyle pointed out a few key data points on mobile:

  •  Mobile users spend the majority of their time using apps; Web visits are frequent but fleeting.
  • 79.3% of consumers’ time is spent with apps, with roughly 20% using the mobile Web.
  • In mobile, the ad dollars are following consumer behavior, so 73.2% of ad spending (that’s display plus search) is going to apps.

Read the full MediaPost article here.