IAB Mobile Numbers Are Wrong: Amobee Boss – UPDATED WITH PWC RESPONSE

IAB Mobile Numbers Are Wrong: Amobee Boss – UPDATED WITH PWC RESPONSE
SHARE
THIS



Liam Walsh, B&T editorial board member and MD ANZ of Amobee, has called into question the estimated numbers of mobile ad spend in Australia proffered by IAB as wildly wrong.

Speaking on a panel at Rubicon Project’s Australia Market Summit, Walsh (pictured right above) took issue with the numbers being bandied around at the conference for mobile ad spend, which the IAB put at $1.5 billion in calendar year 2015.

“$1.55 billion for mobile? . . . I don’t think it’s right. If you make an assumption about how much money Facebook is getting on mobile – let’s say it’s $300 million excluding small business, I just don’t see where the other $1.2 billion in mobile is,” he said.

“Even though I respect the IAB enormously, I just don’t think that number is right,” he added.

Walsh’s opinion carries some weight, having worked at Facebook in various agency facing roles from May 2011 through to March 2014, before a brief stint at Kenshoo and then his current role at Amobee.

The amount of money media agencies are allocating to mobile excluding Facebook is around 2-4 per cent of the total ad expenditure in Australia,” he said. “So it’s low by definition; there is not enough money going into mobile.”

Walsh admitted there were “a whole bunch” of reasons why ad expenditure was low.

“The formats suck, they’re in annoying places … measurement sucks because you can’t track some conversions. There’s a whole bunch of things that the IAB and Nielson and all of these people are doing to make stuff better.

“But it feels exactly the same as 1999: digital, back of the PowerPoint deck. Then Facebook in, say 2011, back of the PowerPoint deck. [Facebook] is the most pervasive platform that has ever existed and it was in 2011, but it still had customers not spending much money on it.

“It was the same stuff, the ads are too little: an investment director sat in front of our global something or other and said he would spend more money, but the ads are too small. Our response was, ‘How big would you like it to be?’ Because it was ridiculous, right?

“I am very confident the issue wasn’t any of those things . . . it’s just fear and change management. People don’t know how to do mobile very well.

Walsh argued that problems arose because internally, at a client a business case, it has to get signed off.

“You’ve got to ask for money. And a GM is going to ask, ‘What do I get for all these little mobile ads?’ The answer is they’re not really sure. We haven’t got muscle memory in how to do this well.”

Walsh went on to say that when you solve all of these individual problems and you go back to the customer and say, ‘We’ve solved all of those problems’ and they still don’t sign off.

“Why is that? Because they don’t know what to expect from mobile. It’s the third evolution of the same problem: it happened in digital, it happened in social and it’s happening now.

“Mobile will be huge, but it won’t be for many years and it will be in a different shape. I can’t think of any single thing that social did that made it a dominant force it is today.”

In response to Walsh’s comments, PwC’s Megan Brownlow has sent B&T the following statement:

PwC Executive Director Megan Brownlow would like to clarify that the estimates for mobile advertising expenditure include both search and display advertising, as outlined in the Online Advertising Expenditure Reports (OAER):

“Mobile advertising comprises General Display and Search expenditures and also includes mobile video expenditure.  Total advertising revenue is reported on a gross basis. The figures are based on participants’ data, industry estimates for Google’s mobile display and search revenues, Twitter’s mobile display revenues and Facebook’s mobile display revenues.” (OAER March 2016 p14)

Mobile search represents a significant proportion of mobile advertising expenditure, at 43% for calendar 2015 according to our model, she says. Additionally mobile  grew to represent 40% of general display advertising in Australia in 2015. Some industry players experience lower proportions of expenditure directed to mobile but given that Facebook reports 80% of its global revenues are from mobile (Facebook 4th Quarter and Full Year 2015 Results) it seems plausible that Australian industry players achieve a 40% average, equivalent to $1,550m in calendar 2015.”

Latest News

Women In Media Profile: Zeina Khodr
  • Media

Women In Media Profile: Zeina Khodr

When B&T’s reporter said she was interviewing a lady named “Zeina”, we initially thought it was the warrior princess.

by B&T Magazine

B&T Magazine
Q&A With Cannes Chairman Terry Savage
  • Advertising
  • Media

Q&A With Cannes Chairman Terry Savage

If you mistakenly thought this was an interview with Kojak's Telly Savalas, as it turns out, it's even better than that.

Optus To Phase Out Virgin Mobile Brand
  • Marketing

Optus To Phase Out Virgin Mobile Brand

Didn't much fancy that Telstra story above? Well, perhaps B&T could tempt you with this tasty Optus tickler instead.

by B&T Magazine

B&T Magazine
AKQA R&D Teams Up With Google For Semi Permanent 2018
  • Media

AKQA R&D Teams Up With Google For Semi Permanent 2018

AKQA R&D in collaboration with Google has developed a process called Somesthetic Transfer. It uses machine learning to take both the style and texture of an artwork and apply it to another image to be 3D printed with a UV printer. The works will be displayed at Semi Permanent 2018 in Sydney from Thursday 24 […]

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid
  • Marketing
  • Media

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid

Design students from Torrens University’s Billy Blue College of Design have partnered with WPP AUNZ’s Health & Wellness division to decode clinical data on ‘Medicinal Marijuana in the Treatment of Epilepsy’. Their creative solutions will be presented at a Vivid Ideas Exchange titled ‘Design can save your life: how can creativity improve comprehension of health data?’ […]

Diversity Case Study Series: The Royals
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: The Royals

If you read one diversity case study on B&T today, make it this one. Not that there's any others to choose from, really.

by B&T Magazine

B&T Magazine
Cricket Australia Finds New Major Sponsor
  • Marketing

Cricket Australia Finds New Major Sponsor

B&T was going to insert a homage to Sherbert's classic "Howzat" here before realising it was naff and showed our age.

by B&T Magazine

B&T Magazine
PHD Wins HSBC Global Media Account
  • Media

PHD Wins HSBC Global Media Account

ICYMI, PHD has FTW the HSBC business IRL. It's not so much a LOL or NSFW, but a TL;DR. Ahh, forget the whole thing.

InMoment Accelerates APAC Expansion With Key Acquisition
  • Media

InMoment Accelerates APAC Expansion With Key Acquisition

Customer experience (CX) intelligence platform, InMoment, has expanded into Australia and New Zealand with the acquisition of customer experience agency, brandXP and appointment of Claire Fastier as its APAC business head.

Marketers Need To Focus On Voice Search Right Now
  • Opinion

Marketers Need To Focus On Voice Search Right Now

In this opinion piece, Performics Australia performance content account director Steve Robinson (pictured below) dives into the hazy relationship between marketers and voice-activated technology. From settling family disputes, (“Hey Google, are fossil fuels really made from dinosaur bones?”) to running a household, (“OK Google, add toothpaste to my shopping list”), voice-activated systems are becoming more […]

Opinion

by B&T Magazine

B&T Magazine
SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance
  • Advertising
  • Media

SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance

Video advertising and monetisation platform SpotX has announced the launch of an online resource library for the European Union’s General Data Protection Regulation (GDPR). The library can be found on the company’s website and is part of a wider educational initiative by SpotX – which is headquartered in the US and has an office in […]

Daylight Agency Opens Government Division, Hires Legal & Political Expert
  • Marketing

Daylight Agency Opens Government Division, Hires Legal & Political Expert

Integrated communications firm Daylight Agency has cemented its presence in the government and political arena with the appointment of industry veteran David Begg. A practising solicitor for over 28 years, Begg (pictured above) will head up the agency’s new government division. He has extensive experience working with large commercial clients on high-profile regulatory and legal […]

Frost Design Unveils New Look For John Holland
  • Marketing

Frost Design Unveils New Look For John Holland

Frost Design has shown off its comprehensive rebrand of iconic Australian infrastructure and property business John Holland, based around the brand idea of ‘Transforming Lives’. John Holland CEO Joe Barr said Frost was the only branding business who understood that the impact of the rebrand was just as important internally as it would be externally, […]

Women In Media Profile: Jill Johnston
  • Media

Women In Media Profile: Jill Johnston

We've got an absolute cracking Women in Media profile today. Not to say it's approved by the Chiropractors' Association.

by B&T Magazine

B&T Magazine
First Lady Michelle Obama and President Barack Obama Dance Together at the Presidents Ball
  • Media

Netflix Secures Producer Deal With The Obamas

It seems former US president Barack Obama and former First Lady Michelle Obama aren’t quite done with the international spotlight just yet. The Obamas have officially signed a multiyear deal with Netflix, which will see the power couple producing films and series with the streaming giant. According to Netflix, “The Obamas will produce a diverse […]

How To Spot A Trend Versus A Fad
  • Opinion

How To Spot A Trend Versus A Fad

One need only view our editor's hot pink leg warmers today to realise he's neither fad nor trend.

Opinion

by B&T Magazine

B&T Magazine
Why Engagement Is The New Rule Of Content
  • Opinion

Why Engagement Is The New Rule Of Content

And why is B&T running a photo of an engaged couple for this content engagement article? It was either that or a carrot.

Opinion

by B&T Magazine

B&T Magazine
Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles
  • Media

Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles

Fairfax Media has today announced the recruitment of 20 trainee journalists to join the newsrooms of The Sydney Morning Herald, The Age, The Canberra Times, The Australian Financial Review, Brisbane Times and WAtoday. This represents one of Metro’s largest trainee intakes in years and underlines the commitment of the mastheads to fostering a new generation […]

Sydney Australia - November 7, 2011. An extreme close up of an American express card issued by the Australian bank Westpac.
  • Media

AMEX Launches Global Media Review

Are there not enough hours in the day? Are you cheek-by-jowl with your co-workers? Well, hopefully you won't win this.

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic
  • Campaigns
  • Marketing

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic

Sydney Water has pioneered a way to create records from marine plastics and, in doing so, encourage more people to join the movement of local clean-up groups rolling up their sleeves every weekend to clean plastics, litter and other pollutants from the city’s beaches and waterways. Plastics are collected by volunteers, then cut in pieces […]

Credit Card Compare Names Its First Head Of Marketing
  • Marketing

Credit Card Compare Names Its First Head Of Marketing

Aussie credit card comparison site Credit Card Compare has announced the appointment of Caroline Raffan as its inaugural head of marketing. Raffan (pictured above) has over 10 years’ experience in brand strategy, campaign development, digital marketing, events, public relations, content creation, market research, advertising, stakeholder management, social media marketing, and project management. She joins Credit […]

Why Programmatic Needs To Become A Branding Machine
  • Advertising
  • Marketing
  • Opinion
  • Technology

Why Programmatic Needs To Become A Branding Machine

In this opinion piece, Phil Murrell (pictured below), country manager for Australia and New Zealand at Sizmek, argues that programmatic ad spend needs to move up the branding funnel. When I started in digital advertising way back in 2004, we got our media insertion orders via the fax machine. We relied on that machine to […]

Opinion

by B&T Magazine

B&T Magazine