Introduction

Social media is quickly becoming more relevant to the way consumers see the world around them. When social media first emerged, it was urgent for brands to establish a presence. Updates and offers on social properties became standard practice. The next phase was to interpret user-generated content (conversations, posts, comments) and segment users into appropriate categories. This led to the rise of social listening tools that provided new insights in brand/consumer interaction and have come to dominate the social space. Today, the interpretation of social data is more important than ever for brands to truly understand their existing consumers and to help them reach new customers. One of the keys to understanding the behaviour of the average consumer across the social graph is mobile. Mobile devices are fast becoming the first and often only method consumers are using to engage with friends, communities and consequently, brands and advertisers. In fact, 40% of smartphone users access social media through their mobile browsers and mobile applications.1 This phenomenon, known as mobile social, is one of the fastest growing categories in both mobile and social usage. A recent comScore study found year over year growth of 50% in mobile social between March 2010 and March 2011.2 It is clear with the yearly rise of mobile ad spend that todays mobile audience represents a lucrative new market for brands and advertisers. What strategy will work best to address the convergence of mobile advertising and social media? How will advertisers know who is receptive to their message? Tried and true digital advertising strategies such as demographic overlays are problematic when applied to mobile. There is a great need for a specialized solution to address social targeting on mobile devices. This white paper will shed some light on the paradigm shift in mobile advertising and how social data is being used to enhance its effectiveness.

40% of smartphone users access social media through their mobile browsers.
(Sept 13, 2011, Social media use increasing mobile, CyberJournalist.net)

Year over year growth in mobile social grew by 50% from March 2010 to March 2011.
(June 15, 2011, Mobile Social Media Up Nearly Fifty Percent in Past Year, Marketing Pilgrim)

Behavioral targeting
Behavioral targeting isolates a particular group of people in order to effectively market specific products and services to them. In its broadest form, it allows Internet advertisers to target audiences according to their recent online activity. It takes into account the web pages a user has visited and actions they recently performed. However, the very makeup of behavioral targeting does not translate to the mobile ecosystem effectively. When behavioral targeting tracks your online activity, it overlooks individual patterns of Internet browsing, such as casual browsing. If a user visits several websites that have no common theme, a behavioral targeting approach will often generate a very inconsistent cluster of data. Trying to find an appropriate advertisement for this consumer will be determined by cross-referencing their destinations of interest - not the information they are sharing or conversations they are participating in (see Figure 1.1). Perhaps the largest proponent of behavioral targeting is Google. Its display network looks at particular online behaviors and categorizes them into appropriate groupings. The problem with these groupings is that the populations are often so minuscule that they are completely unscalable, or results are not precise and contain too much data to properly decipher.3 Behavioral targeting cannot keep up with the barrage of data this activity generates. The strongest argument for the overall ineffectiveness of behavioral targeting is that it does not incorporate the abundance of unique social data that is available in todays digital landscape.

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(Figure 1.1)

Social targeting
There are several targeting methods that can be applied to digital ad serving. These include contextual, geographical, demographic and social. Of the four listed, social targeting is perhaps the newest and presents the most potential. Social targeting makes use of the social graph to build custom audiences at scale.4 It essentially captures what an individual user is discussing in the moment and crossreferences it with that users previous conversations and actions. This results in advertisements that specifically match a particular users needs and interests in real-time (see Figure 1.1). The foundation of social targeting are the links that a person shares on social networks, with whom the person shares those links with, revealing infinite sharing possibilities. A user may have viewed thousands of links in a given month and shared 50 of them with friends, but those 50 are ultimately more valuable because of the deep insights into character, interests and relational data between the sharer and the sharee. The power of social targeting can be magnified when this interconnectivity is combined with the contextual aspects that make up status updates, commentary and conversations. The communication a person engages in carries more weight to an advertiser because they are specific to that person and their current intentions. In other forms of targeting, there are often instances where a consumer may be blindly targeted; where they will receive an ad that does not relate to them. Social targeting ensures that the correct audience is seeing the correct ad. This results in higher conversion rates and therefore increased ROI for advertisers. In some instances, social targeting has shown a 200-400% improvement in conversion rates in comparison with other forms of targeting.5

Social targeting has shown a 200-400% improvement in conversion in comparison to other forms of targeting.
(Feb 27, 2010, Will Behavioral Ad Targeting Kill Content Sites Like TechCrunch, Mashable and Business Insider? Business Insider)

In 2010, mobile activity on Facebook and Twitter increased by 112% and 347%, respectively.
(Feb 7, 2011, The United State of Social & Mobile Marketing Mobile Monday)

A New Paradigm: Social Targeting on Mobile

We must understand the current state of the mobile ecosystem in order to execute relevant mobile advertising campaigns. As we touched upon earlier, online social targeting techniques do not seamlessly apply to mobile. The key differentiators between targeting on the Internet and on mobile are consumption, audience engagement and the interpretation of data.

Consumption
Mobile can no longer be ignored as an advertising channel. It has quickly become a vital extension of ones personal and business-related activities. In 2010, mobile activity on Facebook and Twitter increased by 112% and 347%, respectively.6 Recent research has shown that mobile app usage has overtaken desktop and mobile web usage. In June 2011, people spent 81 minutes a day using mobile applications versus only 74 minutes for web usage.7 This points to the growing attachment and dependency consumers are developing towards their mobile device. The opportunity to immediately engage with consumers directly is beginning to shift away from the desktop environment. Advertisers must take advantage of the immediacy and ubiquity of smartphones and tablets in order to ensure that they reach audiences, especially when they are on the go (see Figure 2.1). If marketers choose to ignore the mobile audience, they are missing out on an important touch point. Social targeting via

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(Figure 2.1)

mobile devices assures an advertiser immediate exposure that will often translate directly into consumer interaction and engagement

Audience Engagement
When people view a mobile social ad, they are engaged in an experience that has been tailored to their current interests and predispositions. Also, mobile ads typically occupy approximately 20% of a smartphone screen. A typical advertisement on a PC takes up about 4% of screen real estate.8 A mobile social targeting campaign with rich media creative offers an intimate and effective way to engage an audience. This may include links to click-to-call campaigns, augmented reality immersions (see Figure 3.1), location checkins and more. Often, these deep interactions heighten the user experience. In comparison, audience participation is limited with online social targeting. For example, it is unlikely you will see a calling option in an online campaign or an augmented reality link that will steer someone into a nearby retailer.

Mobile ads typically occupy approximately 20% of a smartphone screen. A typical advertisement on a PC takes up about 4% of screen real estate.
(June 16, 2011, Report: Mobile Searches Estimated to Grow to 20 Percent of Total By 2012 Tech Crunch)

(Figure 3.1)

The Interpretation of Social Data

The benefit of social data is that it can reveal individual user intent and gauge consumer sentiment before, during and after the execution of an advertising campaign. Social data is the collective information produced by millions of people as they actively participate in online and mobile social activities.9 It may include content that has been shared between friends, indirect conversations and third-party networks. The standard measure of a successful digital advertising campaign lies in the performance metrics of interaction: which include conversions, click-thru-rates (CTR) and new customer acquisition.

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One distinct difference between social data from the online world versus the mobile universe is location. Users with a desktop computer can be easily tracked because their location is generally static. Geo-targeting, or targeting based on location, is much different on mobile devices because online cookies cannot be applied. Once a user changes location, which is inevitable, the geo-data that was previously generated is no longer relevant.

AMO adSocial Network

Addictive Mobility is a North American mobile social ad network specializing in mobile social targeting. The AMO adSocial Network technology is comprised of a targeting engine designed to leverage social data. Addictive Mobility monitors trends, topics and conversations by utilizing its proprietary algorithms and analysis processes. The main tenets of the AMO adSocial are accuracy, immediacy, and relevancy. Addictive Mobilitys revolutionary technology stands out from its competitors because of its ability to address the exclusive requirements of mobile targeting. AdSocial is capable of studying how to engage an audience and pinpoint who will be receptive towards a specific message. The adSocial engine has the ability to derive insights from social user-generated-content (UGC). With this information, Addictive Mobility uses location data to supplement social data. For instance, if a person is a New York native but their UGC starts referring to Los Angeles in a travel context, the adSocial network has the potential to interpret their intention to travel to Los Angeles. The added context allows for more relevant and specialized targeting in the form of time-sensitive, location-aware advertising. Addictive Mobilitys social targeting efforts are strengthened by the fact that it targets relevance on a tiered system. Each tier targets increasing levels of contextual relevance that are tracked within social conversations and activity. The final ad that is delivered leverages a diverse collection of data sets resulting in unrivaled targeting accuracy.

Addictive Mobilitys revolutionary technology stands out from its competitors because of its ability to address the exclusive requirements of mobile targeting.

Case Study: Social targeting in movies

In the summer of 2011, the AMO adSocial algorithm was put into action for a mobile campaign that centered around the release of a major motion picture. The film was part of a well-known franchise aimed at teenagers and young adults. Addictive Mobility took keywords that were relevant to the film and ran them on its network. While we optimized the campaign towards the most relevant audience, Addictive Mobility ran the same campaign and creative on another network. The goal was to assess adSocials competitive advantages over the competition. At the time, the film studio had not employed social targeting in any of its previous promotional campaigns. A snapshot from one day of the campaign running on a third-party network showed 1.7 million impressions served and a CTR of 0.19%. To ensure that these results were not an anomaly, the campaign was run again. The results from the second flight, again on a third party network, verified that the execution averaged a 0.19% CTR. With the help of a two-tiered targeted campaign, Addictive Mobility engaged audiences whose conversations were a contextual match with the film. Relevant audiences were identified and saw banner ads featuring the films trailer. The campaign snapshot (see Figure 4.1) includes over 121,000 impressions and a CTR of 1.49%. Despite leveraging fewer

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daily impressions than other mobile campaigns, Addictive Mobility achieved phenomenal user engagement rates and a measurable ROI via movie trailer views. Running on the AMO adSocial network, the campaign exceeded its original goals at a fraction of the industry average per-user engagement cost.
(Figure 4.1)

(Figure 5.1)

Case Study: Social targeting in sports

In 2011, Addictive Mobility embedded its AMO adSocial Network technology in a mobile application for one of the worlds most popular MMA athletes. Using our tiered system, we established keyword lists and measured them on our network. Even within our network, they performed better than market cost. In Tier 3, which had general keywords, Addictive Mobility performed 34% higher than market cost. Although Tier 2 had a smaller keyword pool, it performed 60% higher than market cost. Figure 5.1 above depicts a 24-hour snapshot from each respective execution; it shows that despite a smaller reach, there was a 24% cost efficiency increase from Tier 3 to Tier 2. If you compared the industry costs to achieve the CTR generated, it is clear that Addictive Mobilitys tiered targeting system generated significant savings.

Mobile ads will generate $20.6 billion by 2015

(June 17, 2011, 4 Rules of Engagement for Mobile Marketing, Mashable)

Social Targeting is the Future

It is projected that mobile advertising will generate $20.6 billion by 2015.10 The need to reach the mobile audience is larger than ever. To do this effectively, you must understand your audience on a granular level. Social targeting should be your first consideration when launching a mobile advertising campaign. It is far more relevant to the user and more impactful for the advertiser. The growth of social media in mobile is moving at a rapid pace. In 2010, the number of people who used social networking apps on mobile devices jumped by 240%.11 Apples newly released iOS 5 has integrated Twitter throughout the operating system.12 One thing is certainly clear - the more omnipotent mobile social media becomes, the more mobile social ad networks such as Addictive Mobility will be called upon to target highly segmented niche audiences. As the case studies indicate, Addictive Mobility has proven its ability to deliver cost-effective mobile ad campaigns. The AMO adSocial technology is a robust, scalable solution capable of producing astounding conversion rates and significant savings for advertisers when measured against performance. Addictive Mobility takes behavioral targeting one step further by using a social lens to understand social media activity with real-time accuracy. Already a leader in the emerging social targeting space, Addictive Mobility is well positioned to disrupt this category in the near future.

In 2010, the number of people who used social networking apps jumped by 240%
(June 2, 2011, Mobile social networking sees explosive growth, GoMo News)

About Addictive Mobility

Addictive Mobility is a North American premium mobile advertising network that specializes in social targeting. The company has leveraged its mobile social targeting solutions to help a number of advertisers and creative agencies develop significantly higher engagement campaigns. Its broad portfolio of exclusive publishers enables Addictive Mobility to reach millions of consumers across multiple platforms, both in-app and on the mobile web. Its past clients represent some of the biggest Fortune 500 brands in the world. Addictive Mobility has the capability to be a leading provider for brands and agencies. It has been recognized with over seven industry awards, including a 2009 Canadian New Media Award and the 2009 Mobile Monday Award for Mobile Marketing.

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To see our demo or learn more about Addictive Mobility, contact us at: Canada 64 Fraser Avenue Toronto, ON M6K 1Y6 Telephone: (+1) 416-535-0706 email: info@addictivemobility.com United States of America 3141 Michelson Drive Irvine, California 92612 Telephone: (+1) 646-378-2789

find us on: www.addictivemobility.com twitter.com/addictivelabs www.facebook.com/pages/Addictive-Mobility

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REFERENCES 1. Jonathan Dube, Social media use increasing mobile, CyberJournalist.net, 2011, Jonathan Dube, 13 Sept. 2011 <http://www.cyberjournalist.net/social-media-use-increasingmobile/>. 2. Cynthia Boris, Mobile Social Media Up Nearly Fifty Percent in Past Year, Marketing Pilgrim, 2005-2010, The Pilgrim Network, 25 Aug. 2011 <http://www.marketingpilgrim.com/2011/06/mobile-social-media-use-nearly-doubled-inpast-year.html>. 3. Henry Blodget, Will Behavioral Ad Targeting Kill Content Sites Like TechCrunch, Mashable and Business Insider? Business Insider SAI, 2011, Business Insider Inc, 3 Sept 2011 <http://www.businessinsider.com/henry-blodget/business-news/feb-26-phillips2-2010-2>. 4. Blodget. 5. Blodget. 6. Bryson Meunier, The United State of Social & Mobile Marketing Search Engine Land, 2011, Third Media, Inc., 19 Sept. 2011 <http://searchengineland.com/the-united-state-of-social-mobile-marketing-63511>. 7. Stuart Dredge, App usage outstripping desktop and mobile web says Flurry The Guardian, 2011, Guardian News and Media Limited, 12 Oct. 2011 <http://www.guardian.co.uk/technology/appsblog/2011/jun/21/flurry-app-usage-stats>. 8. Erick Schonfeld, Report: Mobile Searches Estimated to Grow to 20 Percent of Total By 2012 Tech Crunch, 2011, AOL, Inc., 3 Oct. 2011 <http://techcrunch.com/2010/06/16/mobile-search-20-percent>. 9. Jason Preston, What is Social Data? Social Data Strategies, 2011, Parnassus Group, 15 Sept. 2011 <http://socialdatastrategies.com/2011/what-is-social-data/>. 10. Carla Paschke, 4 Rules of Engagement for Mobile Marketing,Mashable, 2005-2011, Mashable, Inc., 19 Sept. 2011 <http://mashable.com/2011/06/17/mobile-marketing-engagement/>. 11. Cian OSullivan, Mobile social networking sees explosive growth, GoMo News, WordPress, 30 Sept. 2011 <http://www.gomonews.com/mobile-social-networking-sees-explosive-growth/>. 12. Christina Warren, Deep Twitter Integration Coming to iOS 5, Mashable, 2005-2011, Mashable, Inc., 1 Oct. 2011 <http://mashable.com/2011/06/06/twitter-ios-5/>.

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