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Every CMO is Aware of the Need to Be on Mobile: Q&A with Thomas Pasquet, Ogury

A flurry of recent reports show significant growth in mobile advertising spend. Despite this, marketing investment in mobile is still some way off reflecting the reality of media consumption habits. Thomas Pasquet, co-founder and COO at mobile data platform Ogury, explains why he believes improved data quality could unlock even more brand ad budgets for mobile.
ExchangeWire: Zenith’s recent global ad spend report highlighted a growth of 49% in mobile advertising spend in 2016 (IAB/PWC have it at 51% in the UK) – should we break out the champagne?
Thomas Pasquet: Yes, of course, any growth in mobile advertising is definitely a cause for celebration. But, there are still achievements to come, with the shift in ad spend still a long way behind the shift in eyeballs.
Major progress is being made, and budgets are catching up, but brands are not yet fully convinced of the effectiveness of mobile ad targeting to reach and engage the right consumers, or to deliver campaign ROI.
So, why is this? Simply put, poor data. A prevalence of poor quality and inaccurate mobile data means some brands are not yet confident in the ability to precisely track and truly understand user behaviour, especially in cookie-free app environments. This doubt in the data is often compounded by a lack of transparency among ad tech players to demonstrate the veracity of their numbers.
However, as mobile usage increases, and brand demands for open and reliable data grow louder, an industry clean up is underway. We expect to see continued and increasing investment from advertisers. Mobile consumption has already overtaken desktop, so people are now spending the majority of their online time on mobile devices. We are only at the beginning of mobile ad growth, and data quality will be the catalyst to drive the next stage.
The same report estimated a 95% growth in mobile advertising spend in 2015 – why is growth shrinking?
While 49% growth may be behind previous projections, the industry is still playing catch up in competing with traditional advertising formats. Growth is not shrinking, but simply moving slower than expected, for the reasons outlined previously. Every CMO is aware that they need to be on mobile to connect with their customer base efficiently; but some are yet to move from the strategy stage to activation. Reliable and accurate data is the solution here. For the industry to grow over the next few years, priority must be placed on helping businesses reach, and truly understand, their customers. We are now seeing marketing departments creating mobile-specific content, such as 15-second videos instead of desktop’s preferred 30 seconds, and vertical videos suited to fit on smartphone screens. The stage is set, but it may take time for every business to fully switch to a mobile-first mentality. However, access to a true, open, complete, and accurate view of mobile user behaviour and engagement will quicken the process and inform decision-making.
Why are advertising spend trends on mobile still so far behind mobile consumption trends?
We all know the importance of understanding a mobile audience, but it takes time for publishers and advertisers to put such platforms into everyday use, and plan content and campaigns with mobile users in mind. Essentially, advertisers are being extra cautious. Advertising spend on mobile is still relatively new, in terms of the possibilities, targeting, and offers, so it is not a huge surprise that it is lagging consumption patterns. It is still a relatively new channel, with many different players coming and going in the space; so in many ways we are still in the learning and figuring out phase. It was the same with the internet versus television 10 years ago – it takes time for spend and usage to align. Change needs to come from the advertisers themselves to move adverts from TV and desktop over to mobile. Again, reliable data has a big part to play here to give decision-makers confidence in making those changes. Until that happens, the gap between the opportunities of mobile and its usage will continue to exist.
Is it advertiser reticence and risk-aversion causing this, or is it being driven by a distinct lack of suitable technology in the industry?
In past years, mobile was less sophisticated; but now, for in-app advertisers, they can have confidence in brand safety. They have the ability to control and manage where the ads are displayed and the reassurance of a closed, secure environment. As every app has been vetted, there is no chance of unwanted content running alongside their brand messages. Technology is now putting the control back in the hands of brands, while also significantly enhancing the mobile experience for consumers. It’s a win-win; and as data-driven targeting gets more precise, the situation will only continue to improve while users will be served with only the content they want to see.
If advertisers are still running into measurement challenges, and being able to prove the effectiveness of their mobile investment, how can this be addressed?
Today, mobile investment is pretty straightforward to evaluate, with advertisers having access to extensive data insights. There are plenty of solutions available to help advertisers measure effectively and efficiently on mobile, such as share of voice and visibility. As advertisers make the switch to mobile, they need to be able to track and justify the strategy change to stakeholders. The answers are all there, so there’s no excuse for advertisers to be falling behind on demonstrating ROI.
Are advertisers suffering from data overload? Is the over-prevalence of data holding mobile advertising back?
Absolutely not. There will never, and can never be, too much data – but I would say that, wouldn’t I? It’s how you use it, analyse it, and make it work. Data needs to be relevant and insightful, and a proxy to real life activity. Easily understandable and managed data allows advertisers to leverage it to achieve their advertising goals. We focus our attention on reliable data from those who have opted-in to collection: only using vetted first-party data to provide a real understanding on what each user is doing on their device. Great data takes time; but investing in it is invaluable to getting real insights that help understand your customer and their needs.
How is technology evolving at this point in time to make mobile higher up the advertiser agenda?
Mobile provides insights and targeting opportunities at an individual user-level that simply cannot be achieved on desktop. Ogury is able to target based on app usage in real-time: for example, targeting heavy social media users in different ways to those who visit fashion websites regularly. It’s no longer good enough for advertisers to make assumptions about their customers. Instead, the focus is shifting towards targeting the individual as a person, rather than as a member of an assumed demographic.
What you do on your phone can give a much more accurate representation than what you post publicly on social media, allowing a real understanding of the preferences of a user. Users don’t share their mobile with anyone else; so, by monitoring behaviour, it can make targeting more personal. Ultimately, your mobile is a mirror of yourself, which makes this a very powerful tool in targeting the right people with the right messages for them. It helps to deliver intelligent and personal advertising, which you cannot do to the same extent on desktop. The possibilities are endless.
What changes do you see in the future to bridge the advertiser-consumer mobile gap?
We will see even more data, and concrete measurement to help make sense of it. You can now prove to the advertiser that the ad has been seen in full-screen, at the right time, by 'x' amount of people, so this helps to deliver concrete results. Data will ultimately be the game-changer for the mobile industry; and is the key to unlocking real insights for businesses.