AdReaction – Africa

Providing marketers with mobile insights and a roadmap for navigating the mobile landscape…. All to support brand growth.

Marketing in the Mobile World

Conducted in 18 countries around the world last year including three countries in Africa for the 1st time.

2

MEXICO

U.S.CANADA*

BRAZIL*

INDIA THAILAND**KENYA

NIGERIASOUTH AFRICA

CHINAKOREA**

INDONESIA**

FRANCE*GERMANY

ITALY

SPAINTURKEY

UK*

*Quantitative only; **Qualitative only

Key FindingsAT A G L A N C E

3

Mobile devices are increasingly central to our lives, so there is

huge opportunity for growth in mobile communications

1. However, while most consumers will tolerate mobile marketing, and attitudes are more positive in Africa than rest of world, few consumers

are favorable toward it

2.

Mobile is highly effective at brand building and also very

flexible - it can play a number of diverse roles in

the media mix

3. The industry can improve attitudes toward mobile

marketing by demonstrating greater respect for the

platform and the audience

4. Marketers can use mobile websites, apps and adsto grow brands IF simple best practice rules are

applied more conscientiously

5.

Opportunity Toleration

Effective RESPECT Best Practice

4

the huge OPPORTUNITY

MOBILE USAGE on the rise

Mobile web is on the move

*Source: Morgan Stanley Research; **Source: Informa WCIS; ***Source: StatCounter Global Stats, 9/12;****Source: Informa; *****Source: We are social5

1.5 BILLION

smartphones and tablets will be installed globally by now (mid 2013) – overtaking laptops and PCs*

37% GROWTH

in the number of global 3G subscribers in the past year**

13% OF WEB

traffic comes via mobile – more than double last year; Mobile traffic share already over 50% in India*** and 65% in Africa!

0.8 BILLION

mobile internet users in Asia at end of 2012****; same number of mobile subscribers in Africa*****.

Some key African statistics:

Data supplied by www.inmobi.com, Praeklet and head of Mobile at Google South Africa:Brett St Clair and On Device Research.

6

100 BILLION100 BILLION Mobile Advertising Impressions are served across Africa annually

55% OF PEOPLE ACCESS THE INTERNET VIA MOBILE PHONES IN GHANA, THIS IS 70% IN EGYPT, 50% IN NIGERIA, 54% IN KENYA AND 57% IN SOUTH AFRICA

SMART PHONES ARE OUTSELLING COMPUTERS 4 TO 1

LOCATION BASED ADVERTISING IS SET TO GROW AS 2 OUT OF 3 SEARCH QUERIES HAVE A LOCATION BASED ELEMENT

TOTAL AFRICAN MONEY TRANSFER IS EXPECTED TO REACH USD200BILLION IN 2015 AND ACCOUNT FOR 18% OF THE CONTINENTS GDP.

Mobile devices are indispensable efficiency tools, especially so in Nigeria. They are key personal and business tools.

Sample: smartphone AFRICA and global averages7

Please indicate how strongly you agree or disagree with the following statements about your mobile device:

38%

62%

78%

33%

24%

15%

Strongly Agree Somewhat Agree

My mobile device is my primary tool for organizing my personal

life

My mobile device is indispensable because I’m always on the go

Having a mobile device makes me more efficient +28

Nigeria Vs Global

+27

+21

Mobile devices act as central hubs in our lives; Nigeria users spend more time social networking & on mail than making calls.

8

Social Networking

19%

Web or email22%

Calls16%

Texts12%

Apps10%

Music14%

Radio3%

Games3%

Video2%

Apps19%

(+6)

(+8)

(-1)

(0)

(-3)

(-2)

(+3) (-7)

Share of Smartphone time spent in Nigeria (vs Global average)

Opportunities at multiple touch points

Calling is just one component of usage

Social networking / Web – fertile ground

Apps – not a great deal of relevant local activity for consumers in Nigeria

Music, video, games - lower than global -Possible infrastructure issues

(-6)

*Based on 30 Hours + Mobile Phone weekly Average usage

ARE BRANDSWELCOME

ATTITUDEStoward mobile

marketing formats

in this intimate space?

9

Most users will tolerate mobile ads; some more actively embrace them.

Sample: smartphone SA and global averages10

Please indicate how strongly you agree or disagree with the following statements about your mobile device:

15%

24%

20%

37%

24%

26%

26%

29%

25%

17%

23%

19%

Strongly Agree Somewhat Agree Neither Agree Nor Disagree

I enjoy playing Advergames (games that incorporate ads/brands)

I'm happy to share my location to get more relevant services and offers

I'm happy to see ads in my apps as long as the apps are free

I'm happy to see ads on mobile websites as long as the websites

are free to access+24

+8

+10

+12

Nigeria Vs Global

Mobile ads are viewed more positively in Africa and India; attitudes to ads on tablets are generally also more favorable.

Sample: smartphone users

11

How would you characterize your attitude towards advertising on mobile phones/ tablets?

111112131314

171919

2223

3043

4848

2342

CanadaUS

SpainFrance

GermanyUK

TurkeyItaly

MexicoChinaBrazil

South AfricaIndia

NigeriaKenya

Global AverageAfrica Average

VERY/SOMEWHAT FAVORABLE, %

Sample: tablet users

916

1822

2825

2826

1930

2935

5139

55

2943

Sample: smartphone and/or tablet users, AMAP and global averages

How would you characterize your attitude towards advertising on….?

12

22%34%35%

40%45%

45%47%47%48%50%50%51%

56%58%

62%65%66%67%67%

70%72%

Non-opt-in email adsOnline music players

Local dealsGames

Websites/MicrositesDirect mail

Opt-in email adsOnline ads with video

Mobile adsTelemarketing

Online search adsProduct placement

Social media adsCinema ads

Online display adsTV ads

Radio adsMagazine ads

Newspaper adsBillboard ads

Social media news feeds

VERY/SOMEWHAT FAVORABLE, %Non-Digital Digital

+30

Nigeria Vs Global

However attitudes toward mobile ads (and digital in general) are less favorable than other media

+22+20+17+15+14+26+17+23+13+11+22

+19+25

+2+13+9

+15+9

+4+11

5

15

25

35

45

55

40 50 60 70 80 90 100

What’s driving advert favourability?

Sample: smartphone users13

Mobile ad favorability vs. device importance

Mobi

le Ad

Fav

orab

ility

Having a mobile device makes me more efficient

BRAZIL

GERMANY FRANCE

CANADA

UK

US

MEXICOITALY

CHINA

TURKEY

SPAIN

INDIA

NIGERIA KENYA

SOUTH AFRICA

Great favorability in markets where users agree:-

mobile = a more efficient life

Opportunity for products & services that seek efficiency as part of their proposition – e.g. Mobile Money, Mobile banking, Paying bill etc….e-commerce ….

Firefly Insights: Mobile ads can be associated with many positive archetypes...

COMPANION

“Offers information in different ways like a solution provider”

MEDIATOR

“I can compare prices, features and brands, before deciding on

what to buy”

SERVANT

“All my ‘questions’ about the brand/product are

answered directly”

HERO

“Offers help when I’min need”

14

BULLY

“I hate it when ads interfere with my online activity, asking me to

click something that is unclear”

THIEF

“It steals the little space I have on my screen”

VAMPIRE

“It enters your space, as if it were going to harm

your phone”

REBEL

“It's rebellious, it interrupts me while I

play or work”

BUT if it invades clumsily, negative associations can prevail

Users have high expectations for mobile

15

And audiences can be receptive to mobile when it’s done right.

Mobile will offer an exchange of

tangible value

3Mobile

will know who I am

21Mobilewill be

competent

16

AND CAN PLAY MANY ROLES

MOBILEi s

FLEXIBLE

IN THE MEDIA MIX

17

Mobile ads have a greater impact on all brand metrics than online ads

18Source: Dynamic Logic MarketNorms for Online, last 3 years through Q1/2012, N=2,211 campaigns, n=2,804,525 respondents; Dynamic Logic’s AdIndex for Mobile Norms, data from last 3 years through Q1/2012, N=181 campaigns, n=127,191 respondents.

To an even greater extent in the relatively uncluttered African environment

19Source: Dynamic Logic MarketNorms for Online, last 3 years through Q1/2012, N=2,211 campaigns, n=2,804,525 respondents; Dynamic Logic’s AdIndex for Mobile Norms, data from last 3 years through Q1/2012, N=181 campaigns, n=127,191 respondents.

Huge variation in effectiveness between best and worst performing mobile display ads – Creative critical

Source: Dynamic Logic’s AdIndex for Mobile Norms, data from last 3 years through Q1/2012 Overall Mobile N=181 campaigns, n=127,191 respondents. Delta (Δ)=Exposed-Control20

Percent Impacted: Delta (Δ)

Aided BrandAwareness

BrandFavorability

PurchaseIntent

Mobile AdAwareness

MessageAssociation

+16.3

+4.8

-4.3

+41.9

+17.3

+26.4

+10.1

-1.3

+14.3

+3.8

-5.2

+17.0

+4.3

-5.7

Mobile Best PerformersOverall Mobile PerformersMobile Worst Performers

-0.5

But the novelty factor has worn off in the developed markets with most metrics trending down... Africa has a window of opportunity

11%

11%

20%

22%

16%

35%

45%Visited the brand website

Clicked/Interacted with ad

Looked for brand in a store

Recommended the brand

Sent ad to a friend

Visited a site for similar brand

Purchased the brand

Sent a message or a comment to the brand

Posted the ad on my blog/profile

Sample: smartphone and/or tablet users, AMAP and global averages22

Which of the following actions have you taken as a result of seeing a mobile ad?Nigeria

Mobile display ads are just one element of a mobile campaign; use display to drive traffic to an optimized website for continued engagement

Beyond brand impact and interaction, mobile ad exposure mostly drives mobile website visitation and brand recommendation.

What types of companies or brands would you most like to see delivering services or features for your mobile devices?

Content – Fashion & Online shopping particularly popular in Nigeria, reflective of local cultures & preferences, with restaurants & QSR’s low Vs global

Sample: smartphone and/or tablet users, AMAP & global averages23

Telecomm-unications

9%

10%

16%

18%

22%

25%

26%

29%

30%

31%

31%

35%

44%

48%

50%

Quick service restaurants

Local restaurants

Retail stores

Drink products/brands

Automotive companies

Food products/brands

Hotels

Banks/Financial services

Airlines

Newspapers or magazines

Sports teams/leagues

Technology companies

Telecommunication companies

Online shopping sites

Fashion/Designers +24+11+19+4+7-1+4-20-1+5-1-11-22-14

Nigeria Vs Global

Online retail

Fashion Designers

24

The R.E.S.P.E.C.T PRINCIPLES

for a brand’s

MOBILE SUCCESS

25

MOBILE WEBSITES, AND

DISPLAY ADS

MARKETINGBEST

PRACTICES

f o r

Most kinds of mobile marketing can improve brand opinions if done well. LBM and deals unimportant in Africa – however this could be due to lack of familiarity with these types of marketing – limited use in Nigeria

Sample: smartphone users, Nigeria and global averages : LBM = location based marketing26

0%

12%

19%

20%

24%

32%

35%

39%

48%

They send or display information specific to my geographicallocation (like locations of stores, promotions)

They send or display deals or coupons

They let me do something entertaining like play a brandedgame or listen to a free song

They send or display information tailored to my interests(recipes / Sports Scores)

They send the latest breaking product news

They send me Facebook/ Twitter posts with links that work onmy mobile device

They offer an app for my mobile device

Their mobile website makes it easy to download their app

They have a good mobile website

When using your mobile phone or tablet, what can improve your opinion of a brand? Vs Global

+14

+10

+5

+12

-2

-5

-1

-23

-21

Nigeria

What makes a good mobile website?Ease of mobile search especially important in Nigeria

Sample: smartphone users, Nigeria / Afriica and global averages27

Unique to screen

Speed & display

Targeted13%

15%

18%

19%

24%

63%

68%

71%

Includes location based features

Looks better than the brand's regulardesktop website

More fun than the brand's regulardesktop website

Different features to the brand'sregular desktop website

Easier to use than the brand'sregular desktop website

Displays clearly on my mobile device

Loads quickly

Easy to find via mobile search

-8

-6

-3

-9

Vs Global

+24

+4

+10

-10

Nigeria

Mobile websites should be fast and functional

28

Simple is safest until network speeds improve

What makes a good mobile website?

don’t:feel compelled to outdo youronline website

forget mobile users are goal directed

do:make it fast

make it clean

make it easy to use

Balance entertainment with competence

29

Mobile display ads need clear branding, communication and call-to-action

30

What makes a good mobile display ad?

do: don’t:

make sure you have a clear call-to-action

make the ads interactive and engaging

target as tightly as possible

clearly brand your creative show your brand only on a product shot

clutter your ads with too much text or too many logos

repurpose online creative only to leave it cropped

use intrusive formats unless context is highly relevant

Favourable – if conditions are right Favourable – if conditions are right

Mobile Advertising – In A Nutshell

31

Ubiquitous mediumUbiquitous medium But under utilisedBut under utilised

More impactful on key brand metrics than on-line More impactful on key brand metrics than on-line

Drives traffic to websites Drives traffic to websites

Does have a role within the marketing mixDoes have a role within the marketing mix

Thank You

For further information please contact:CHARLES FOSTER

Regional Managing DirectorAfrica & Middle East

Millward BrownCell + +27112027129

Email: Charles.Foster@millwardbrown.com