PowerPoint Presentation

What Really Is the Mobile Marketing Opportunity?Based on the Most Valuable Research the Mobile Industry Will Ever ConductJune 2016Greg StuartGlobal CEO Mobile Marketing Associationgreg@mmaglobal.com

MMA is 800+ Members Strong GloballyMarketers, Agencies, Media Sellers, Technology & Operators Globally

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3Todays DiscussionWhat & Why Mobile? What is the Mobile Opportunity in ROIWhat Does MMA Suggest You Do

Mobile is the greatest transformation in consumer behavior that we will see in our lifetime

Jack Welch Once SaidThere are only two sources of competitive advantage: the ability to learn more about our customers faster than the competition and;the ability to turn that learning into action faster than the competition.

Jack Welch was chairman & CEO of General Electric between 1981 and 2001. During his tenure at GE, the company's value rose 4,000%.

6Breaking Down the Mobile OpportunityIts my personal screenAlways on - I check it all the time With me in different moments/need statesIts my social device

Opportunity to engage, participate, interact and CONNECT Highest attention during content consumption vs. other mediaOpportunity for more frequent/ongoing interactionOpportunity to customize content

But, getting marketers to do mobile marketing is a little like kids asking for a cell phone

Mobiles unique differentiator:Mobile is the closest you can get to your consumer

9One example: MMA Case Study *Heineken: Heineken @WhereNext Provided users real-time recommendations about places and venues that were trending in their cities. Focused on Millennials using an algorithm that weighted real-time data from Twitter, Foursquare and Instagram. * MMA 2015 Smarties Winner. Source : MMA Case Study Hub

SMARTIESGlobal Best in Show 2015

10Heineken @WhereNext

So, if I look at this screen 150 times a day11

What is the value of being close?

Lets look at the data

SMoX.me = Smart Mobile Cross Marketing Effectiveness Studies

SMoX : Industry Consortium Coming together to understand business value of Mobile in advertising Mix

AwarenessImagePurchase IntentFoot TrafficSales

135 Brands

4 Countries

What is the value of mobile to your Business?Can mobile help me meet my marketing goals?What is the impact of mobile on my campaign performance & the business?How can I make my mobile investment work harder?

What is the value of mobile to your Business?Can mobile help me better meet my marketing goals?What is the impact of mobile on my campaign performance & the business?How can I make my mobile investment work harder?

TVPrintInternetFSICinemaSocialOOHMobileDisplayDisplay, video, socialDisplay, video, native, location Display, audio, video socialDisplay, video, socialDisplay, video, socialDisplay, video, socialDisplay, RM, Weather targeting, social, video

Variety of media in each campaign mix

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11Study not public yet1

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How many people can you convert with mobile?

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Campaign AverageMobile

Mobile Delivered about twice CONVERSION per Dollar vs. other media

BrandsCampaign ObjectivePeople Converted Avg. CampaignPeople Converted JUST Exposed MobileAT&TAware of MotoX Phone1.9Gold Peak TeaAware of Gold Peak Tea4.8MasterCardImage: Use MC when Travel1.7WalmartSales in Store at Walmart2.0 Unilever, MagnumSales1.1Coca Cola (Brazil)Sales3.0Coca Cola (China)Sales2.0Coca Cola (UK)Sales2.0

But what do you expect from a channel that has this kind of influence?

What is the value of mobile to your Business?Can mobile help me better meet my marketing goals?What is the impact of mobile in my campaign performance & the business?How can I make my mobile investment work harder?

21What do we know : Media OpportunityCampaign Information Change in Campaign Due to MobileCompany (Brand)Country of StudyOverall Campaign Goal & OptimizationAll Media in CampaignMobile Formats in Mobile Portion of CampaignImpact on Campaign just as Brand Executed Mobile iImpact when Optimizing within Mobile Mix Also iiOptimized % of Mobile in Mix vs. Total Budget iiiBoost in Overall Campaign Perf. ivOpt. % Of Mobile in Mix with Mobile Best Practices vBoost in Overall Campaign Perf.AT&T (MotoX)U.S.AwarenessTVPrintDesktopDisplay16%+12%20%+18%MasterCardU.S.Image (MC is good card to use when traveling)TVPrintDesktopSocialDisplayVideoSocial8%+7%12%+17%Walmart (Back-to-School Grocery)U.S.Purchase Intent & SalesTVFSIDesktopDisplayNativeSocialLocation Targeting 11%+6%15%+14%Coca-Cola Co. (Gold Peak Tea)U.S.Awareness,Image, & Sales TVPrintOOHDesktop DisplayAudioVideo 10%+4%15%+7%Coca-Cola Co. (Red Can)ChinaSalesTVOOHDesktopDisplayVideoSocial8%+7% 15%+16%Coca-Cola Co. (Red Can)UKSalesTVOOHDesktopDisplayVideoSocial11%+10% 16%+25%Coca-Cola Co. (Red Can) BrazilSalesTVOOHDesktopDisplayVideoSocial19%+60% NANAi Assumes that overall campaign budget is optimized without making any changes in terms of how mobile mix was allocatedii Assumes that overall campaign budget is optimized and best practices are used to further improve the performance of mobileiii The % of the total advertising budget that should be allocated to mobile in order to maximize the performance of the campaigniv The incremental lift in performance generated by optimizing the budget for mobile / increasing mobile allocationv Employing best practices would include rebalancing the mix in mobile to more cost effective formats, removing ads that failed, increase use of targeting proven to work and more.

Key QuestionsCan mobile help me better meet my marketing goals?What is the impact of mobile in my campaign performance & the business?How can I make my mobile investment work harder?

Using the mobile toolkit to improve results

23Audio Video Display Rich Media Native CouponsFORMATSCHANNELSTARGETINGCREATIVE

Websites Apps PushSMS/MMS Social Search Email

Audience ContextDay partLocation Weather

Programmatic

Dynamic Integrated Closed loop to payment

Yes, Mobile has many unique attributes24

Using the mobile toolkit to improve results

25Audio Video Display Rich Media Native CouponsQRFORMATSCHANNELSTARGETINGCREATIVE

Websites Apps PushSMS/MMS Social Search Email

Audience Context Day partLocation Weather

Programmatic

Dynamic Integrated Closed loop to payment

Mobile Video improved results for Coke. PriceBetter ROI!Effectiveness at low FrequencyMobile VideoMobile Display320100100650

Effectiveness at High Frequency350Manage frequency or rotate creative

Save video creative would produce stronger results vs.. TV with lower costMobile VideoTV40100100450Better ROI!

Effectiveness atlow frequencyPrice

Proprietary & ConfidentialSource: Walmart SC Survey; Data Collected from: 8/4-9/28

MOBILE VIDEO

With the same creative, Mobile Video had more impact than video on other platforms CABLE TV

The first couple of exposures were significantly more impactful in mobile, showing that mobile can be a much more engaging platform.28

Mobile Native improved results for Walmart. PriceBetter ROI!Effectiveness at low FrequencyMobile NativeMobile Display5001001001000Effectiveness at High Frequency300Manage frequency or rotate creative

Proprietary & Confidential% OfMobile allocationin total BudgetOTHER MOBILENATIVEMobilePlanned SpendMobileOptimised Spend1.37%9%

Mobile Natives performance yields it the majority of optimized spend across the mobile formats used.

RecoMix

Proprietary & Confidential

MM = Millions of people converted on Intent to Shop Walmart BTS7%9%Mobile Spend in Back to School MixIncremental Impact Due to Mobile Spend0.9M2.5MChange in ImpactBy reallocating within mobile, a +30% increase in Mobile spend results in an 2.8X increase in impact.

Optimising for mobile is a two step approach:Finding the right allocation for mobile:Making this investment work harder by investing in the right formats for that campaign.31

Using the mobile toolkit to improve results

32Audio Video Display Rich Media Native CouponsQRFORMATSCHANNELSTARGETINGCREATIVE

Websites Apps PushSMS/MMS Social Search Email

Audience Context: Day partLocation Weather

Programmatic

Dynamic Integrated Closed loop to payment

Location and format Interact: And REALLY drive Foot Traffic

Expandable UnitsPencil UnitsRetargetedProximity

40%

12%

No Lift

10%

1290Depending on the category, Context Targeting can add significant valueDay of the week*130100Weekday vs.. Weekend targeting Time of the day targeting for industry with Strong Time of Day Dynamic Without targetingWithtargetingTime of Day**100

So, Capitalizing on Mobile is a 2-Step Process35

1. Optimize Mobile in the Marketing MixThats a law of the physics of media2. Build capabilities within MobileEducation, test & learn, access to industry,

36What do we know: The Media OpportunityCampaign Information Change in Campaign Due to MobileCompany (Brand)Country of StudyOverall Campaign Goal & OptimizationAll Media in CampaignMobile Formats in Mobile Portion of CampaignImpact on Campaign just as Brand Executed Mobile iImpact when Optimizing within Mobile Mix Also iiOptimized % of Mobile in Mix vs. Total Budget iiiBoost in Overall Campaign Perf. ivOpt. % Of Mobile in Mix with Mobile Best Practices vBoost in Overall Campaign Perf.AT&T (MotoX)U.S.AwarenessTVPrintDesktopDisplay16%+12%20%+18%MasterCardU.S.Image (MC is good card to use when traveling)TVPrintDesktopSocialDisplayVideoSocial8%+7%12%+17%Walmart (Back-to-School Grocery)U.S.Purchase Intent & SalesTVFSIDesktopDisplayNativeSocialLocation Targeting 11%+6%15%+14%Coca-Cola Co. (Gold Peak Tea)U.S.Awareness,Image, & Sales TVPrintOOHDesktop DisplayAudioVideo 10%+4%15%+7%Coca-Cola Co. (Red Can)ChinaSalesTVOOHDesktopDisplayVideoSocial8%+7% 15%+16%Coca-Cola Co. (Red Can)UKSalesTVOOHDesktopDisplayVideoSocial11%+10% 16%+25%Coca-Cola Co. (Red Can) BrazilSalesTVOOHDesktopDisplayVideoSocial19%+60% NANAi Assumes that overall campaign budget is optimized without making any changes in terms of how mobile mix was allocatedii Assumes that overall campaign budget is optimized and best practices are used to further improve the performance of mobileiii The % of the total advertising budget that should be allocated to mobile in order to maximize the performance of the campaigniv The incremental lift in performance generated by optimizing the budget for mobile / increasing mobile allocationv Employing best practices would include rebalancing the mix in mobile to more cost effective formats, removing ads that failed, increase use of targeting proven to work and more.

Maybe weve Under-estimated Value: Mobile drives significantly better results at same budget Optimal allocation of Mobile in Coke Brazil Media Mix

19% of the budget should be invested in mobile to drive huge increase in profit19%

+60%

Incremental Profit Due to Mobile Spend

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38What do we know: The Media OpportunityCampaign Information Change in Campaign Due to MobileCompany (Brand)Country of StudyOverall Campaign Goal & OptimizationAll Media in CampaignMobile Formats in Mobile Portion of CampaignImpact on Campaign just as Brand Executed Mobile iImpact when Optimizing within Mobile Mix Also iiOptimized % of Mobile in Mix vs. Total Budget iiiBoost in Overall Campaign Perf. ivOpt. % Of Mobile in Mix with Mobile Best Practices vBoost in Overall Campaign Perf.AT&T (MotoX)U.S.AwarenessTVPrintDesktopDisplay16%+12%20%+18%MasterCardU.S.Image (MC is good card to use when traveling)TVPrintDesktopSocialDisplayVideoSocial8%+7%12%+17%Walmart (Back-to-School Grocery)U.S.Purchase Intent & SalesTVFSIDesktopDisplayNativeSocialLocation Targeting 11%+6%15%+14%Coca-Cola Co. (Gold Peak Tea)U.S.Awareness,Image, & Sales TVPrintOOHDesktop DisplayAudioVideo 10%+4%15%+7%Coca-Cola Co. (Red Can)ChinaSalesTVOOHDesktopDisplayVideoSocial8%+7% 15%+16%Coca-Cola Co. (Red Can)UKSalesTVOOHDesktopDisplayVideoSocial11%+10% 16%+25%Coca-Cola Co. (Red Can) BrazilSalesTVOOHDesktopDisplayVideoSocial19%+60% NANAi Assumes that overall campaign budget is optimized without making any changes in terms of how mobile mix was allocatedii Assumes that overall campaign budget is optimized and best practices are used to further improve the performance of mobileiii The % of the total advertising budget that should be allocated to mobile in order to maximize the performance of the campaigniv The incremental lift in performance generated by optimizing the budget for mobile / increasing mobile allocationv Employing best practices would include rebalancing the mix in mobile to more cost effective formats, removing ads that failed, increase use of targeting proven to work and more.

In Summary SMoX Consistently DemonstratesAllocation to Mobile in the Mix, when mobile is done rightProduces an Increase in Brand MetricsProduces an Increase in Sales or Profit of:All Studies to Date12% to 20%+/-17%7% to 16%to 60%

39Sales +7%

toSales+60%toSales+16%

The Math: Mobile will be a $70 Billion U.S. business and over $200 Billion worldwide(just from big brands)However, as Reach Increases, so might Allocation10-15%Today15-20%w/ Best Practices20-30%w/ Increased Smartphones

Opportunity knocks

42What Does MMA Suggest?Lean into the opportunity that is mobile:Figure out what closer means for your business & customerDetermine how Mobile fulfills your Brand promiseRe-allocate immediately, then figure it outTest & learn, test & learn, test & learnGet going NOW!And

And finally, join rest of MMA to excel at Mobile

SMoXMobile ROI Research20+ Events Worldwide

40+ Webinars Annually and Many More Available on DemandSMARTIESAwarding Best in Class Mobile Campaigns

Industry Working Groups Driving the Future of Mobile

CEO & CMOSummit Annual Mobile Think TankGuidelines & Best Practices Viewability, Location, Native

Guidelines & Best Practices Viewability, Location, Native and moreSmartBrief Daily Mobile News in your InboxMM25 Marketer Peer GroupTackling Core Issues for Marketers800+ Members From the Entire Mobile Ecosystem WorldwideEducation & Training

600+ Mobile Case StudiesInspiring Creative Innovation

Thank You!

Seizing the Mobile Opportunity Mobile Marketing Association

greg@mmaglobal.com

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