Hitting Reset on the Internet and Mobile

Reset_Button

Every day there seems to be a new figure released that enforces the notion that mobile is also eating the world. The problem with most of the coverage of this type of data is that (1) the pace of mobile adoption shouldn’t come as a surprise and (2) the definition of what constitutes ‘mobile’ needs to be revised.

With smartphone penetration about to cross 60% and tablet ownership almost doubling from last year to a third of the U.S. population in 2013, it’s no coincidence that the amount of incremental traffic that mobile brings to the 50 most-visited internet properties now averages 28% (reaching a high of 223% in one instance) according to comScore. In response to this, media companies are reinventing their content consumption experiences to meet the growing demands of mobile users. Atlantic Media launched Quartz, a digital-first, mobile-oriented publication late last year while The New York Times is in the process of redesigning its online presence (slated for release this fall) to resemble the single-page stream layout popularized by social networks. Even native web media outlet ReadWrite is leveraging responsive design to adapt to their multidimensional mobile audience. This design trend will only accelerate the transition of internet activity from the desktop to mobile devices.

Remember, the personal computer, which reached the mass market more than 15 years before the web browser, was never intended to be a web-centric device. The evolution of wireless technologies and networks combined with the invention of smartphones and tablets are allowing digital companies to finally hit the reset button and create internet experiences that are designed to be more useful, from both a content and advertising perspective, than the current incarnation of the commercial web which borrowed heavily (to everyone’s eventual detriment) from print.

What this means for evaluating the mobile phenomenon is that instead of accepting all these stats at face value, we need to look at mobile’s ability to drive incremental adoption and create new monetization opportunities above and beyond the natural growth that comes from cannibalizing PC-based audiences and revenue streams.

This brings us to the issue of what exactly constitutes ‘mobile’. Typically we think of smartphones and tablets as providing mobility. But if you take into account that over 90% of tablets being purchased only use WiFi and, as a result, are primarily used inside the home, what differentiates these devices from laptops, which we consider PCs, aside from the form-factor? If you also include the divergent behavior of smartphone and tablet users the whole concept of what mobile is and represents needs to be redefined.

Instead of thinking of mobile as a device, we need to think of it as an activity. The two data points that matter most in defining mobile activity then are a user’s location and their data network. So if someone is at home or at work they shouldn’t be considered mobile. In this context the use of smartphones and tablets (instead of desktops and laptops) for accessing the web and certain apps (that also exist as websites) is done out of convenience rather than the need for a specific capability- and usually enabled over a WiFi network. The only experiences that should be classified as mobile are in locations where people usually don’t spend an extended amount of time at with their devices and are typically connecting to the internet by way of cellular or MiFi networks- so pretty much everywhere else. Building products and services that maximize utility in these scenarios is where mobile becomes useful. If we can agree on a better definition of mobile, then we can better quantify this opportunity, understand network constraints and figure out solutions that create new value.

This isn’t to say that devices that use WiFi networks or are used at home aren’t valuable- especially when you consider IP-based ad targeting and the second screen opportunity (something I’ll touch on in a future post). It’s just that the mobile activity on devices in these locations don’t generate incremental value unless they are using mobile-only applications (such as HotelTonight or Uber) and could, in fact, be destroying value for certain companies when taking into account that mobile users monetize at a lower rate than their desktop equivalent.

Advertisements

Why Viewable Impressions Won’t Matter

Reading the increasing velocity of articles written on the topic over the course of last year, ‘viewable impressions’ has displaced ‘ad verification’ as the hot delivery topic in the adtech industry for 2013. But when you start to consider how the media consumption habits of internet users are changing, does trying to determine which approach is the most accurate in identifying whether ads are being served within a viewing pane really going to matter in the near future?

Consumers are spending a growing amount of time on social networks- more than any other category of sites on the web and as such are becoming accustomed to a content consumption experience that differs from typical website content management systems. The traditional web page is an adaptation of legacy print media which pieces together multiple columns of static content with blocks of ads in a portrait layout. Led by Facebook’s News Feed, social networks are popularizing a different approach that displays standardized units of content, in the form of text, links and images, from a user’s social graph in a single column that updates with new information in real-time.

Quartz_AppThe pace of adoption of mobile devices is furthering the spread of this stream-based approach to presenting content, as digital media companies attempt to package all of the information embedded on a traditional web page into a mobile app or website which is limited by the smaller screen sizes of smartphones and tablets. An early example of this has been Atlantic Media’s launch of Quartz in September, which is a digital only business media property built specifically for the mobile web that just announced that it has already reached 1.4 million unique visitors as of December.

Facebook_SponsoredStoriesThe reason the adoption of a new digital consumption experience matters to the viewable impressions conversation is in how the content and associated ads are being presented to users. Both Facebook and Twitter have shown how this combination can work in the age of social streams and mobile devices with Sponsored Stories and Promoted Tweets respectively. Both ad units are integrated into the content feed from a look and feel perspective and targets users based on their social graph relationships. The ad units themselves can be fixed in the flow of the content stream, moving down the page as the feed refreshes with new updates, or fixed at the top of the feed. In either case, since the content cascades down from the top of the app or web page the ad is always being presented, and thus seen, in the user’s viewing area.

The stream-formatted approach to content presentation is also starting to make its way on to traditional digital media websites like ESPN which launched the beta of its SportsCenter Feed in September. ESPN, which has traditionally been an early adopter of digital technologies and experiences, is taking a similar approach as Quartz in delivering a real-time, ad-supported, news feed with the added capability to consume subsets of the stream via content-specific tabs as well as the ability to add skins to the background that further promote the content sponsor.

ESPN_SportsCenterFeed

In all of these stream examples, the ad creative is muted compared to the typical bright and flashy ad unit and consists of a single advertiser. So what the advertiser loses in ‘wow’ factor (or ‘ow’ from the user perspective) with a traditional ad experience is made up for in relevance (hopefully) and singular attention by not having to compete with other advertisers on a page and by being presented front-and-center to the user- ensuring the ad is seen. As the real-time news feed approach to presenting media proliferates, it will alleviate the need to utilize delivery verification services for viewable impressions for digital media entities adopting this new approach.

Remember, it wasn’t that long ago that the adtech industry was consumed with a different delivery issue- ad verification, with the likes of AdSafe Media and DoubleVerify raising over $50 million combined over the course of 2010-2011 to build a business around solving for this issue. In 2012 both AdSafe and DoubleVerify replaced their CEOs while AdSafe also underwent a rebranding as ad verification became commoditized at the ad server level and smaller problem, especially related to premium content publishers, than the industry led everyone to believe. Let’s not go through this again with viewable impressions.

Photo image source for Quartz: @erichfranchi