AdReaction 2012 – Kenya ReportMarketing in the Mobile World

Conducted in 18 countries around the world including eight countries in AMAP (five qual/ quant & three qual only)

2

MEXICO

U.S.CANADA*

BRAZIL*

INDIA THAILAND**

KENYANIGERIA

SOUTH AFRICA

CHINAKOREA**

INDONESIA**

FRANCE*GERMANY

ITALY

SPAINTURKEY

UK*

*Quantitative only; **Qualitative only

3

To sayAFRICA IS

MOBILE

I s a n u n d e r s t a t e m e n t

Mobile - An Under Utilised Channel?

4

Social

Work

Info

Life Organiser

The most ubiquitous consumer

medium in Africa

By way of a bit of background…

*Source: Morgan Stanley Research; **Source: Informa WCIS;***Source: StatCounter Global Stats, 9/125

54% Kenyans access internet on handsets

Feature Phones

In most cases, it is on feature phones which are inexpensive, and have limited capabilities

Channel When done well, Mobile as a channel is impactful

Key FindingsAT A G L A N C E

6

Mobile devices are increasingly central to our lives, so there is huge opportunity to connect with consumers in this space

1. Interestingly, Kenyan consumers are more favourable towards it

than those in other markets

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. We can learn from mistakes in other markets - demonstrate 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.Best Practice

Opportunity Tolerant

RESPECTEffective

What do we mean by Mobile Advertising?

7

It’s certainly not all about bright and shiny mobile apps

Websites Apps Ads

Simple SMS advert

More complex digital visuals

8

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, 9/129

1.5 BILLION

smartphones and tablets will be installed globally by 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

Data supplied by www.inmobi.com, Praeklet and head of Mobile at Google South Africa:Brett St Clair and On Device Research. 10

100 BILLIONMobile Advertising Impressions are served across Africa annually

Access the internet via mobile phones

Key African Statistics

55% Ghana

70% Egypt

58% South Africa

54% Kenya

50% Nigeria

Mobile advertising and marketing is a real contender in Kenya

www.inmobi.com www.inmobi.com11

45% Growth in the number of ads served at the end of

2012

1 Billion Mobile Advertisements are delivered to Kenyan surfers quarterly

A Growth Story

12

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

Location Based Advert50% discount on lunch at Serena today

Location Search Query Pizza – Lavington

OrHair Dresser – near to meRelevant products and services within

a 2km radius of Upper Hill

Possible – socio demographic data from SIM registration

A Growth Story

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 USD200bill in 2015 - accounts for 18% of the continents GDP.Interestingly, M-PESA accounts for 25% of Kenya’s GDP today.

Places the point of sale in the customer’s hand!

Mobile – the indispensable efficiency tool, especially in AMAP

Sample: smartphone and/or tablet users, AMAP and global averages14

26%

41%

48%

64%

86%

26%

37%

36%

22%

10%

Strongly Agree Somewhat Agree

Primary tool - organizing household

Primary tool - organizing work life

Primary tool - organizing personal life

Indispensable - I’m always on the go

Mobile makes me more efficient

Kenya

+19

+17

+32

+28

+4

Vs Global

Extended exposure relative to TV and Radio

Essential And Much More!

15

BEYOND ESSENTIAL

“I take my phone everywhere. Life collapses if I forget it.”

MULTI-TALENTED

“I listen to Kimani in the morning, pay my rent every month, buy shoes on Facebook, talk to my friends on whatsapp, talk to my house help in the afternoon to arrange dinner….set my alarm at night…..it’s never out of my reach.”

LIFE CHANGING

“I took a short journey to my pocket.....found the website, ordered and paid with M-PESA ....and didn’t have get stuck in the (traffic) jam!”

TRULY SMART

“I thought the person who wrote the price comparison sheets was reading my mind!”

FUN “I feel like a wizard when I play and discover new things.”

Dramatic gap between proportion of time spent on mobile….and proportion of media spend

dedicated to mobile

*Source: eMarketer; **Source: Gartner Group16

JUST 1% OF SPEND

globally is committed to mobile marketing*

While mobile devices act as central hubs in our lives – limited commercial activity for Kenya

Sample: AMAP average vs global average17

Social Networking

17%

Web or email19%

Calls21%

Texts19%

Apps10%

Music10%

Games2%

Video1%

(+4)

(+3)

(+6)

(-6)

(+5)

(-3)

(-2)(-7)

Share of smartphone time spent(More than 30 Hours) Kenya Score (vs global average)

Opportunities at multiple touch points

Calling is just one component of usage

Social networking – fertile ground

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

Music, video, games - lower than global -infrastructure

*Source: eMarketer; **Source: Gartner Group18

Significant opportunity to connect and communicate more

via mobile devices

ARE BRANDSWELCOME

ATTITUDEStoward mobile

marketing formats

in this intimate space?

19

20

How do you feel about adverts on

your mobile?

Willing to share your location?

What about adverts in

apps?

Kenyans – a tolerant bunch relative to global cousins

Sample: smartphone and/or tablet users, AMAP and global averages21

16%

23%

31%

36%

21%

29%

27%

29%

16%

21%

14%

14%

Strongly Agree Somewhat Agree Neither Agree Nor Disagree

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

Happy to share my location to get more relevant services and offers

Happy to see ads in my apps – if apps are free

Happy to see ads on mobile websites - if access is free

Kenya Vs Global

+24

+24

+10

+14

Much higher than in developed markets

*Source: eMarketer; **Source: Gartner Group22

Half of all users

Favourable towards advertising on a handset or tablet (Kenya)

Sample: smartphone users

23

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

VERY/SOMEWHAT FAVORABLE, %

11

11

12

13

13

14

17

19

19

22

23

30

43

48

48

23

40

Canada

US

Spain

France

Germany

UK

Turkey

Italy

Mexico

China

Brazil

South Africa

India

Nigeria

Kenya

Global Average

AMAP Average

Limited activity

Information seekers

Education & Entertainment Value

Cluttered advertising environment

High levels of fatigue

Poor quality communication

Lack of respect for platform and audienceSpam!

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

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

If we look at mobile in the context of all other media….

24

50%

51%

55%

62%

64%

68%

73%

75%

76%

77%

77%

Cinema adsLocal deals

Websites/MicrositesOnline display ads

Social media adsMagazine ads

Radio adsBillboard ads

Social media news feedsNewspaper ads

TV ads

13%

33%

39%

40%

44%

45%

45%

46%

52%

52%

57%

Non-opt-in email ads

Ads on tablets

Online music players

Direct mail

Product placement

Games

Telemarketing

Mobile ads

Opt-in email ads

Online ads with video

Online search ads

VERY/SOMEWHAT FAVORABLE, %Non-Digital Digital

+26+30+34+27+22+18+31+26+20+7+9

Kenya Vs Global+18

+24

+7

+23

+17

+20

+6

+8

+16

-

-5

Kenya Vs Global

5

15

25

35

45

55

40 50 60 70 80 90 100

What’s driving advert favourability?

Sample: smartphone users25

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 fav in markets where users agree, mobile = more efficient life

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

*Source: eMarketer; **Source: Gartner Group26

So What

Mobile puts you, the brand, in the palm of their hand

Accept that you are in their personal space,

They are interested in information and news about the brand, but not without some reservations

Observe rules of engagement - RESPECT

?

*Source: eMarketer; **Source: Gartner Group27

Kenya Irritation

Global Novelty

Saturation Limited Activity

Strong Share of Voice

Greater Advantage

Move Fast!

28

MOBILE ADVERTISING

USEREXPECTATIONS

f o r

At their best, Mobile Ads are described in extremely positive terms

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”

29

BULLY

“I hate it when ads interfere with my online

activity, asking me to click something that is

unclear”

THIEF

“It just clicks and takes over my world”

VAMPIRE

Came to an ad that promised to give me 75% discount....to

discover it was not a TV deal but a Salon

spa”

REBEL

“It's rebellious, it interrupts me while I

play or work”

BUT clumsy invasions - negative associations

Users have high expectations for mobile

30

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

31

AND CAN PLAY MANY ROLES

MOBILEi s

FLEXIBLE

IN THE MEDIA MIX

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

32

MOBILE ONLINE+2.1

+4.0

+2.2

+1.3

+1.2

Source: 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.

+4.8

+17.3

+10.0

+3.8

+4.3

Percent Impacted (Δ)

Aided BrandAwareness

BrandFavorabilityPurchase

Intent

AdAwarenessMessage

Association

Even more so in an uncluttered environment

33

MOBILE ONLINE+2.1

+4.0

+2.2

+1.3

+1.2

Source: 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.

+4.8

+17.3

+10.0

+3.8

+4.3

Percent Impacted (Δ)

Aided BrandAwareness

BrandFavorabilityPurchase

Intent

AdAwarenessMessage

Association

+17.3

+10.0

+3.8

+4.3

+4.8

Even more so in an uncluttered environment

34

MOBILE ONLINE+2.1

+4.0

+2.2

+1.3

+1.2

Source: 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.

+4.8

+17.3

+10.0

+3.8

+4.3

Percent Impacted (Δ)

Aided BrandAwareness

BrandFavorabilityPurchase

Intent

AdAwarenessMessage

Association

+17.3

+10.0

+3.8

+4.3

+4.8

Even stronger amongst youth• Stronger affinity with medium

• Higher penetration amongst youth

Mobile display ads drive traffic to websites

Sample: smartphone and/or tablet users, AMAP and global averages35

10%

11%

11%

14%

16%

17%

17%

18%

35%

40%

40%Visited the brand website

Searched for the brand

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

Searched for more ads from the same brand

Sent a message or a comment to the brand

Posted the ad on my blog/profile

Brand impact and interaction….and website visitation

Sample: smartphone and/or tablet users, AMAP and global averages36

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

+7

+9

+12

-1

+1

+5

0

0

-

-

-

Kenya Vs Global

40%

…but mobile ads are just one element of a mobile campaign

Ensure an optimized website for continued engagement

Sample: smartphone and/or tablet users, AMAP and global averages37

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

Content - Tech/Telco particularly popular in Kenya – mirrors local activity

Sample: smartphone and/or tablet users, AMAP & global averages38

Telecomm-unications

Online retail

Banks/ Financial

13%

21%

22%

24%

26%

29%

29%

30%

31%

35%

37%

40%

44%

53%

54%

Quick service restaurants

Retail stores

Drink products/brands

Airlines

Local restaurants

Automotive companies

Food products/brands

Hotels

Newspapers or magazines

Online shopping sites

Fashion/Designers

Sports teams/leagues

Banks/Financial services

Telecommunication companies

Technology companies +22+28+13+16+10-1-1+4+12+3-6-2+3-6-10

Kenya Vs Global

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

Content - Tech/Telco particularly popular in Kenya – mirrors local activity

Sample: smartphone and/or tablet users, AMAP & global averages39

Telecomm-unications

Online retail

Banks/ Financial

13%

21%

22%

24%

26%

29%

29%

30%

31%

35%

37%

40%

44%

53%

54%

Quick service restaurants

Retail stores

Drink products/brands

Airlines

Local restaurants

Automotive companies

Food products/brands

Hotels

Newspapers or magazines

Online shopping sites

Fashion/Designers

Sports teams/leagues

Banks/Financial services

Telecommunication companies

Technology companies +22+28+13+16+10-1-1+4+12+3-6-2+3-6-10

Kenya Vs Global

Wide open space in other categories –no activity here

Favourable – if conditions are right

Mobile Advertising – In A Nutshell

40

Ubiquitous medium But under utilised

More impactful on key brand metrics than on-line

Drives traffic to websites

Does have a role within the marketing mix

41

PRINCIPLESfor a brand’s

MOBILE SUCCESS

What do we mean by Mobile Advertising?

42

Not about apps alone

Websites Apps Ads

If we need a reason to believe….

43

M-PESA, Kenya

Wallet Lifestyle

Integrated into our lives

2, million unique transactions a day25% of GDP

Guinness VIP – A Mobile Success Story

Guinness Football Challenge

Social Football QuizHow to evolve

beyond the

Football

TV Season?

Guinness VIP

24/7 Relevance

50,000 unique usersplaying the mobi game

Inviting & challenging friends

Playing multiple games

Engaging content (live) thatusers can only find through

joining Guinness VIPEngagement platform for brand they

know and love

Gives consumers a voice,through chat rooms,

blogs and photo uploads–social status and currency

The Role of Mobile? Expected to play a larger role than all others in the mix in recruitment for the website

Guinness VIP Today

46

Five marketsLaunched 2010

1.5 million users100 million + page views

300,000 blog comments 20,000 user photos

Relevance

Engagement

Surprise & delight

Play to strengths

Exchange

Competence

Time & place

RESPECT for the mobile audience and platform will ensure a constructive future

47

Relevance

48

Offering relevant content throughout the life time of the website

• Engaging content

• Current, updated

• Two way street – with blogs and comment sections, photo uploads

• Simple, user friendly, extremely fast, responsive design

Guinness VIP, Kenya

Engagement

49

Brand building opportunity, mobile provides opportunities to go deeper when users have moments of downtime.

Tusker Project Fame , Season Four

• Driving engagement and website traffic though the Project Fame initiative

Mobile Website

Contestant Info

And Tusker Brands

FB + Twitter

Active moderator on the night of contest

Voting through mobile

Giving consumers a voice

Engagement

50

Social change initiatives find a home with digital too

National Youth Summit, Kenya 2013Youth Peace and Reconciliation Platform

• With elections approaching, this summit aimed to engage the youth to promote peace

• Multi dimensional campaign• Website• Facebook• Twitter• SMS and email

Surprise & delight

51

Put a smile on the face of your consumers with every mobile connection you deliver.

• A web cartoon or comic series - published weekly. • Website, mobile site and facebook and twitter• Reader Reward - to be featured in the comic

• Since its launch in February 16tth 2013, it has had over 2,000 unique visitors, spending an average time of 4 mins on the site

• Users post comments, share on Social Media

• Simplified layout • Optimized for all mobile devices (different screen

sizes etc.)

Ndovu Special Malt, Mike Tembo Comic, Tanzania

Play to strengths of mobile

52

Mobile can play a unique role in the wider media mix since it is both portable and personal.

Kenya Airways, Kenya

• A mobile platform - enhanced interactive services from KQ

• Putting control in the palm of your hand

• Flight status, timetables, cargo services, ticketing, and query air miles

• Dial the USSD code *737# and follow the user friendly menu option for a wide variety of information

Exchange

53

Users are looking for something of value in return for access to their mobile phones.

• In South Africa, coupons are offered when using the McDonalds app - delivered via SMS

• Basic, but effective

• Rewards loyal customers; the app page is not overloaded and the offer is clear

• Simple addition of a logo makes the coupon stand out:

• “Most text ads I see don’t have pictures or brands on them so this is unique

McDonalds, South Africa

Competence

54

Clear, functional and focused.

• Mobile website• Clear• Fast• Easy to use • Relevant information for the mobile browser

Sierra

Top of the pyramid

Text can be powerful too

55

• Text based agribusiness platform - for stakeholders in the agricultural value chain

• Offers up to date commodity prices across Kenya• Users simply sms 3555 to join • Offers buying and selling price for any crop in any

location within Kenya

• Real time information which is being used to grow the agricultural economy- farmers are able to sell their produce to the ready local and international markets via mobile phone

M-FARM, Kenya

Opportunities at the bottom of the pyramid

56

Social change

Brand Building TV Game Show –

Tusker Project Fame

Rural economies – real time information on agri prices

Service Provision - Airlines

Multiple Applications

Information – drive useage

57

MOBILE WEBSITES, APPS

AND DISPLAY ADS

MARKETINGBEST

PRACTICES

f o r

Mobile websites should be fast and functional

58

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

value entertainment over competence

do:make it fast

make it clean

make it easy to use

Make apps easy to acquire and easy to use

59

What makes a good mobile app?

don’t:crash (don’t be too resource intensive)

build one unless it will be used regularly

make it too complex

do:be free if possible

clearly explain what you offer, and what you’ve updated

focus on ease of use

deliver something of value

Better no app than a poor app

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

60

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

More detailed AdReaction findings

61

FURTHER READING• TNS Mobile Life: http://discovermobilelife.com/• Google Mobile Planet: http://www.thinkwithgoogle.com/mobileplanet/en/• Google Mobile Playbook: http://www.themobileplaybook.com• Mobile Marketing Association case studies: http://www.mmaglobal.com/resources/case-studies• More mobile examples: http://digital-examples.blogspot.com/search/label/mobile

For further information on the AdReaction study in AMAP please contact:Chris.githaiga@millwardbrown.com

If you are interested in more detailed country-level findings, please contact your local Millward Brown Office via www.millwardbrown.com.

Customized analysis reports are also available.

62

VISIT WWW.MILLWARDBROWN.COM FOR MORE INFORMATION.

AdReaction is part of Millward Brown’s Changing Channels campaign, a series of published insights helping marketers navigate the changing media landscape

and explore new opportunities to connect with consumers.

VISIT WWW.MILLWARDBROWN.COM FOR MORE INFORMATION.