Today, I spoke at Dmexco. It was a fantastic event, bringing together some of the most exciting technologies and visions for marketers, consumers, and publishers. I wanted to talk about the challenges these groups face today and our vision for the future of marketing.
DON’T CALL IT A SHIFT TO MOBILE
Mobile is changing people and it’s changing businesses.
To reach 50 million people, it took radio and TV 38 and 13 years respectively, but within just seven years, mobile technology had reached 1.4 billion people. When you look at the US media landscape, 24% of the time people spend consuming media is on mobile, with mobile making up 16% of ad budgets1 – that’s huge, and it’s growing.
It’s hard to imagine, but just three short years ago we had no mobile solution at Facebook. With so many people moving to use our site on mobile we had to make the changes in our business to serve them well on mobile as well as – and even better than – we had done on desktop. And it was just as painful for us as for all businesses.
Now 76% of Facebook’s ad revenue comes from mobile2. But this isn’t just about a shift to mobile, it’s about new behaviors. Today, 60% of total internet time is spent on mobile apps3. Yet even with that growth on mobile, people continue to use desktop. While people may still be searching on desktop, paying bills or watching long form content, mobile is where discovery, communication and entertainment happens.
The way people use these tools is different – on mobile there are more shorter sessions while desktop tends to be less frequent but longer. For marketers, they can reach people in all of these moments. And for many more people mobile is the first and only way they have reached the internet – for them there was no shift.
So if you’re not on mobile you risk missing out on all those people who could be discovering your product or service on their phones. If you care about commerce, desktop and mobile are interrelated and you can’t be successful just working with one. You need to know how to do both.
MOBILE BROKE YOUR MARKETING TOOLS
Storytelling is as important as ever when it comes to advertising, but the mobile advertising experience is anything but compelling. And that is largely a hangover from the days of banner advertising and the reliance on cookies.
Today’s measurement has to be about people. The cookie measurement technology that marketers have relied on for years doesn’t work on mobile, and the data isn’t accurate enough. Cookies run at a rate of about 65%4 accuracy. That means that over a third of cookie-based advertising is irrelevant to the people it’s reaching. Those experiences are bad for brands and bad for people.
Even worse, when you look at targeting gender and a broad age range the accuracy of cookies decreases to below 50%.
THE CROSS-EVERYTHING DILEMMA
Facebook’s mission is to give people the power to share and make the world more open and connected. And that includes connecting brands and businesses with the people who care about them. Within this there is now a new paradigm that goes beyond choosing between desktop OR mobile, that looks instead at desktop AND mobile and how to integrate the two.
This benefits brands and people alike. For example, the controls people have over advertising on Facebook – whether it’s telling us they don’t want to see ads based on their interest in a topic, like sport or education, or turning off online interest-based advertising altogether – apply everywhere they use Facebook. If you make a choice on one device, we apply it everywhere.
We’re in ad tech to bring people-based marketing beyond Facebook to the rest of the internet and digital world – across devices, platform and publishers.
GREAT FOR PEOPLE, GREAT FOR BUSINESSES
People-based marketing is the future. We understand the billion-and-a-half people on Facebook. And we can learn so much from all of them; their likes, their online behavior and how they interact with each other. This opens up amazing opportunities for brands, as they build their marketing strategies for today and for a future which is only going to be more fragmented, more agile and even more mobile.
We can now deliver the tools that enable marketers to reach all of the people who matter to them in all of the places where they discover what matters to them. And we can do this in a way that delivers real business results.
For people, we can see more and more advertising that is meaningful to us. Our experiences on all of our mobile and desktop services will be better. Ads can now be an even more compelling part of the content I want to see.
These trends and the work we are doing represent a great step forward for people, brands and businesses.
1. Emarketer Average time spent per day with select media (U.S.)
2. Facebook internal data
3. comScore, U.S. Mobile app report, August 2014
4. Nielsen Digital Ad Ratings benchmarks through 2/15/2015