29 May 2014 - 2:25pm | by nugg.ad

Mobile targeting at scale will capture brand budgets

Richard Metcalf of nugg.adRichard Metcalf of nugg.ad

Nugg.ad, Europe’s leading specialist in digital target group marketing and brand engagement solutions, has extended its offering to include mobile targeting solutions for mobile web and app campaigns in the UK. Mobsta, a UK-based sales house for premium mobile and tablet ads, recently teamed up with nugg.ad in order to better target mobile consumers across its portfolio of sites and apps with both reach and scale.

The Drum spoke with Richard Metcalf, director of mobile solutions and head of UK sales at nugg.ad, to find out more about the Mobsta deal and about the ever-evolving mobile ad market…

What do you consider unique about nugg.ad’s mobile targeting solutions?

With regards to audience targeting we’re doing something that hasn’t previously been widely available on mobile. We have the ability to model and build an audience to target consumers on mobile and tablet devices with reach and scale. This has been largely lacking in the marketplace to date.

While others tend to offer scale via third party data, we primarily offer publishers the chance to enhance their first party data to provide scale. This isn't possible using third party data, especially on mobile and here in Europe. With nugg.ad‘s solutions an audience can be addressed at the volumes required across any device, and is a de facto standard that agencies and advertisers already understand and trust across Europe. That’s what sets us apart and that’s why Mobsta decided to partner with us for premium mobile and tablet ads. Mobsta works with some tier one publishers – they’ve just signed MTV, for example – and using our solutions means that they can now tap into budgets that they probably wouldn’t have been able to access before, as they can now identify and make available audience segments that were previously inaccessible to big brand advertisers.

From a brand ad spending perspective, the mobile advertising market has still to truly catch fire. Why do you think that is the case?

There's still a lot of hype around mobile ad spend. According to the latest report by IAB and PriceWaterhouseCoopers, mobile advertising spend has doubled in the UK in 2013, passing £1bn. Considering that half of that number is attributable to search and that a sizeable chunk of mobile display ad spend is generated by app developers promoting mobile apps, one is left with a less than impressive figure. At the end of the day, brand spend on mobile - particularly when it is compared with brand spend on other channels such as TV – still has a lot of upside potential. I am, however, confident that brands will spend, but only once they are satisfied that they will be able to reach the relevant target audiences at volume and be able to measure the efficiency of their brand campaigns in real time. With this in mind, it’s astonishing that a lot of brand campaigns are measured purely in terms of clicks and click-through rates. While such metrics are appropriate for performance-based campaigns, they are not suitable for advertisers’ branding campaigns in which brands are looking for campaign success in terms of awareness, affinity and intention to purchase. Of course it is possible to measure brand impact using expensive market research but this is done post-campaign and not in real time.

At nugg.ad, we enable brands to engage with their bespoke target audience – not just on mobile, but also on desktops and tablets via partners such as BBC Worldwide – and then measure and optimise the effectiveness of that engagement while the campaign is actually running. The onus is now on us and our publisher partners to make these solutions available to advertisers in the UK, so that they can start running impactful brand campaigns such as De Cecco, which enjoyed a 148% increase in brand awareness for its new pasta product when advertising with our online and mobile publisher partners in Denmark last year. More importantly we were able to measure a 200% increase in offline sales as a result of the campaign.

What are the other emerging trends in the marketplace?

We believe that more and more inventory is going to be sold programmatically, whereby particularly premium inventory via programmatic will enjoy the strongest boost. We’re already seeing this happen in France, Poland and Germany, so we believe the UK won’t be far behind either.

What I’d like to see is increased CPM’s in mobile for brand campaigns. I think that will happen as the industry gets more efficient at finding bespoke brand audiences, and as brands start to shift their budgets towards the less traditional advertising environments, now that mobiles are becoming the most used medium.

With this in mind, I believe we’ll see big publishers pouring more and more content online, not just display inventory but video inventory as well. In short: Only programmatic has the ability to address an audience at scale, cross device, cross publisher – and that is why we see the future of advertising lying with this technology.

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