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Mobile Commerce World

06/24/2013 - 06/26/2013 San Francisco CA

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More Tablet Owners Want Free Apps, With Ads, Instead of Paid – Fewer Tablet Owners Want to Pay, Online Publishers Association Finds

Ad Age

Both the number of people who use tablets and usage per tablet user are exploding. But tablet users’ appetite for paid apps isn’t following the trend.  A new study commissioned by the Online Publishers Association found that 54% of tablet users prefer free, ad-supported apps over paid ones, up from 40% a year ago.  At the same time, just 19% of users say they prefer to pay more for apps with no ads, down from 30% last year.

The year-over-year shifts could seem frightening to those publishers banking exclusively on paid apps, but most tablet app publishers don’t need to worry, according to Pam Horan, president of the OPA. “I don’t think it’s a scary trend because obviously advertising is the most significant revenue stream for publishers,” she said.

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Click-Through Rates May Matter Even Less Than We Thought

Ad Age

We already know that click-through rates on online display ads are abysmal. Now a study from the startup Pretarget and ComScore revealed that even when a user clicks on an ad, the correlation between that click and a conversion is virtually nonexistent.

Over nine months, Pretarget analyzed more than 260 million ad impressions across the campaigns of 18 advertisers, the company said, and tracked conversions ranging from filling out an online form to downloading software. In the analysis, Pretarget found that the Pearson correlation (a common correlation methodology) between clicks and a conversion was 0.01, the lowest correlation rate among metrics tracked in the study (a 0 result would mean there is absolutely no correlation, while 1.0 would signify the strongest possible correlation.)

Online Ad Trade Group Endorses ‘Skippable’ Video Ads – Standards Will Allow More Publishers to Bring Ad-Skipping to Video

Ad Age 

Consumers’ dream of being able to skip commercials on TV became a reality with the advent of TiVo and DVR. It’s about to become a bigger reality on the web.

The Interactive Advertising Bureau, which helps set uniform standards for online advertising, is adding a new format to the mix: video ads that you can skip. In doing so, the IAB is offering support for publishers who believe consumers should be able to skip irrelevant ads shown at the beginning of a video.

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Why Agencies Are Better Off Staying Out of the Tech Business

Ad Age 

Choosing Winners, Not Owning the Players, Is How Agencies Should Work With Tech

It’s no secret that media agencies have come under increasing financial pressure over the past decade. Agency margins seem to be ever-shrinking, while clients simultaneously demand more in terms of technological solutions and service in this increasingly digital marketplace. Meanwhile, agencies were annoyed to see their digital ad network counterparts generate double-digit commissions while aggregating media, traditionally the turf of media agencies.

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Wanted: Social, Mobile and Gaming Guru Ad-Industry Execs Discuss the Skills They Seek When Filling the Hottest Jobs

Ad Age 

The pool of jobs in adland isn’t shrinking the way it was a couple of years ago, when the business was reeling from the recession. But with most clients holding the line on marketing budgets and agencies streamlining staff in an attempt to handle more work with fewer employees, it’s still a tight employment market for ad talent.

Study Finds Marketers Don’t Practice ROI They Preach – More Than Half Don’t Use ROI Metrics to Plan Budgets; 28% Rely on Gut Instinct

Ad Age 

For all marketing’s obsession with return on investment, it’s not used to set budgets, according to a new study. A survey of 243 CMOs and other marketing executives found that 57% don’t establish their budgets according to ROI measures. Sixty-eight percent of respondents said they base their budget decisions on historical spending levels, while 28% said they go with gut instinct. And 7% said most of or all their spending decisions aren’t based on any metrics at all.

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Pay-for-Performance Starts to Gain Steam

Ad Age 

Sophisticated Measurement Tools Help Model Become Reality at Media Shops Such as Interpublic’s UM.
Last year, Interpublic Group of Cos.’ media agency, UM, hired consulting giant McKinsey to analyze how other industries are compensated. The objective was to change the antiquated agency-fee model to a riskier but more profitable pay-for-performance one. What resulted was a revamped system that more closely aligns the firm’s goals with those of clients. It is tied to key indicators such as sales or market share.

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Tech-Consulting Giants Slide Closer to Creative-Shop Turf

Ad Age 

Deloitte, Accenture Are Among Big IT Players Looking to Learn Digital Biz of Marketing Brands to Consumers Hey, marketers: Looking for a digital creative shop? You may have already considered the likes ofR/GA and AKQA, but what about Deloitte or Accenture?

OK, it hasn’t quite come to that, but as marketing requires more technology to reach consumers, the consulting and IT giants are inching beyond software and closer to agency turf. Where the disciplines once remained in their separate corners, the tech side is looking to learn the language of brands.

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Forget Cannes: CES Is the Place to Be and Be Seen – Why Most of Mad Ave Is Leaving for Las Vegas to Soak Up New Technology

Ad Age

Getting Michael Roth, John Wren, Maurice Levy and Martin Sorrell to the same event is rare and possibly unprecedented save for Cannes every June. But the CEOs of the world’s four largest ad-holding companies will be bumping up against the estimated 2,700 exhibitors and 150,000 attendees making the pilgrimage to the Consumer Electronics Show in Las Vegas this month, which has stealthily become one of the most important dates on the calendar for marketers.

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Where’s the Growth in Marketing? Follow the BRIC Road – Ten Emerging Markets Will Account for Half of Ad Spending Growth in Next Three Years

Ad Age 

Where is the ad market going? Consider this: Total ad spending in emerging markets is expected to pass that in the U.S. in 2014. And hotspots, including BRIC and others, are moving up the ranks.

China, the biggest of BRIC, surged past Germany to become the third-largest ad market in 2010, according to Publicis Groupe’s ZenithOptimedia. China major-media ad spending is on track to overtake No. 2 Japan in 2015.

For more information and charts click here