AdReaction – AfricaMarketing in the Mobile World

Conducted in 18 countries around the world including three countries in Africa

4

MEXICO

U.S.

CANADA*

BRAZIL*

INDIA

THAILAND**

KENYA

NIGERIA

SOUTH AFRICA

CHINA

KOREA**

INDONESIA**

FRANCE*

GERMANY

ITALY

SPAIN

TURKEY

UK*

*Quantitative only; **Qualitative only

Key FindingsAT A G L A N C E

5

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 ads

to grow brands IF simple

best practice rules are

applied more

conscientiously

5.

Opportunity Toleration

Effective Respect Best Practice

6

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 social

7

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

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.

8

100 BILLIONMobile Advertising Impressions are served

across Africa annually

57% OF PEOPLE ACCESS THE INTERNET VIA MOBILE PHONES IN SOUTH

AFRICA, THIS IS 70% IN EGYPT, 55% IN GHANA, 54% IN KENYA AND 50% IN

NIGERIASMART 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 AND

ACCOUNT FOR 18% OF THE CONTINENTS GDP.

Mobile advertising and marketing is a real contender in the South African market:

www.inmobi.com www.inmobi.com9

The average mobile web user in South Africa consumes over 6

hours of media daily.

Mobile devices represent 30% of this time.

79%

Of consumers are more or equally comfortable

with mobile advertising vs. TV or online ads

20 BillionMobile Advertising Impressions are served in

South Africa annually

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

Sample: smartphone AFRICA and global averages10

Please indicate how strongly you agree or disagree with the following statements about

your mobile device:

54%

53%

75%

25%

32%

18%

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 +16

South Africa average Vs Global

+15

+28

People love their mobile devices

11

BEYOND ESSENTIAL

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

MULTI-TALENTED

“My tablet allows me to see the details, develop what I want, check or do work; I have more freedom.”

LIFE CHANGING

“Living in Lagos is so stressful with all the traffic, I don’t have to stress myself moving from one shop to the other when I can get online with my phone.”

TRULY SMART

“I always have an answer; my smartphone makes me feel like a hero when I solve problems.”

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

Mobile devices act as central hubs in our lives; SA users spend

most time social networking and least time making calls!

Sample: AMAP average vs global average12

Social Networking

19%

Web or email14%

Calls11%Texts

15%

Apps15%

Music16%

Games4%

Video3%

Apps19%

(+6)

(-1)

(-4)

(+1)

(+2)

(+4)

(-5)(-4)

Share of smartphone time spent SA average

(vs global average)

Massive potential for growth in mobile marketing

*Source: eMarketer; **Source: Gartner Group13

JUST 1% OF SPEND

globally is committed to mobile marketing*

2.5XBY 2016

mobile ad spend predicted to grow from $6.4 billion (2012) to $18.6 billion (2015)**

ASIA LEADING

Asia/ Japan already biggest region ($4.3bn in 2012) and rising fast (est. $9.5bn in 2016)**

ARE BRANDS

WELCOME

ATTITUDEStoward mobile

marketing formats

in this intimate space?

14

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

Sample: smartphone SA and global averages15

Please indicate how strongly you agree or disagree with the following statements about

your mobile device:

15%

29%

20%

45%

15%

22%

26%

21%

21%

16%

17%

22%

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+15

+7

+2

+12

SA average 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

16

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

11

11

12

13

13

14

17

19

19

22

23

30

43

48

48

23

42

Canada

US

Spain

France

Germany

UK

Turkey

Italy

Mexico

China

Brazil

South Africa

India

Nigeria

Kenya

Global Average

Africa Average

VERY/SOMEWHAT FAVORABLE, %

Sample: tablet users

9

16

18

22

28

25

28

26

19

30

29

35

51

39

55

29

43

Sample: smartphone AFRICA and global averages

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

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

18

18

30

30

32

35

37

39

40

40

40

41

Non-opt-in email ads

Telemarketing

Mobile ads

Online ads with video

Online music players

Games

Social media ads

Direct mail

Opt-in email ads

Online search ads

Websites/Microsites

44

45

46

51

55

59

63

64

67

67

Online display ads

Product placement

Local deals

Newspaper ads

Magazine ads

Social media news feeds

Billboard ads

Cinema ads

Radio ads

TV ads

VERY/SOMEWHAT FAVORABLE, %

Non-Digital Digital

+3

+16

+29

+9

+11

+8

+3

+15

+17

+14

South Africa Vs Global

+7

+10

+4

+18

+3

+3

+13

+4

+12

+7

+6

South Africa Vs Global

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‟m

in need”

20

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

21

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

23

AND CAN PLAY MANY ROLES

MOBILEi s

FLEXIBLE

IN THE MEDIA MIX

Mobile ads generally have more impact on all brand metrics than online ads

24

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 Brand

Awareness

Brand

Favorability

Purchase

Intent

Ad

Awareness

Message

Association

11%

15%

6%

16%

17%

30%

34%

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.

Sample: smartphone AFRICA and global averages25

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

-5

+3

-2

+10

-6

+3

+2

South Africa Vs Global

Visited the brand website

Clicked/Interacted with ad

Looked for brand in a store

Recommended the brand

Visited a site for

similar brand

Sent ad to a friend

Purchased the brand

What types of companies or brands would you most like to see delivering services or

features for your mobile devices?

Mobile users want content from many categoriesFashion, telco’s and airline content particularly popular in South Africa; restaurants and automotive, less so

Sample: smartphone AFRICA and global averages27

16%

18%

24%

26%

26%

29%

30%

30%

30%

30%

31%

33%

37%

44%

45%

Quick service restaurants

Automotive companies

Hotels

Newspapers or magazines

Online shopping sites

Drink products/brands

Retail stores

Sports teams/leagues

Technology companies

Telecommunication companies

Local restaurants

Food products/brands

Airlines

Banks/Financial services

Fashion/Designers +6

+11

+14

+4

+2

-4

-6

+6

+15

+19

NA

-7

+2

+3

+2

South Africa Vs Global

Banking

Fashion Designers

Airlines

28

PRINCIPLES

for a brand’s

MOBILE SUCCESS

Relevance

Engagement

Surprise &

delight

Play to

strengths

Exchange

Competence

Time &

place

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

29

Relevance

30

Mobile content needs to be tailored to both the target audience AND the context where they will most likely experience it.

• Display ad for Matrix calling card featured in Times

of India (news) application. Their mobile

readership includes many frequent travellers

• The ad gives more information about calling rates

in different countries and is useful and relevant for

those who travel often or who are planning to

• The SIM visual and messaging connect

strongly, so „30 minutes free calls‟ is likely to stick

in mind

Matrix, India

Engagement

32

Mobile provides opportunities to go deeper when usershave moments of downtime.

McDonalds South Africa / Axe Fallen Angels – great engagement but banned in South Africa

Surprise & delight

33

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

• Naver is the number 1 local web portal site in Korea and

apptoon is a popular web cartoon published serially on

Naver. They created an apptoon-like ad in order to

promote their own mobile smartphone app. Similar ads

were also shown on TV.

• Popularity of apptoon and a pre-existing association with

Naver help drive engagement and branding of the mobile

display ad.

• Once downloaded the Naver app delivers a simplified

layout and provides a service that has been optimized

well for all mobile devices (different screen sizes etc.)

Naver, Korea

Play to strengths

34

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

Carling Black Label, South Africa

• A unique one-off soccer match where fans could

select the players and vote for substitutions in

real-time via mobile devices

• Event was promoted heavily in traditional media

and over 10 million mobile votes were cast

• Event generated huge interest

• Mobile acted as the primary route to engage – it

was the technical glue holding the entire

campaign together

Exchange

35

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

• Body Shop is already perceived positively, as an

inspiring and quality product

• This promotional ad is considered bold and simple yet

impactful. It leaves consumers feeling excited &

curious. Discounts especially attractive for a premium

product

• “This promo is exciting...I want to check what product

the discount will be applied too..makes me curious and

wanna shop now!”

“Everyday discount...no other brand has offered this

before...Body Shop is always different”

Body Shop, Indonesia

Competence

37

More than any other media, mobile marketing needs to be clear, functional and focused.

• Ster Kinekor is a well known movie theatre chain in

South Africa and they are the top result when

consumers search for “movies” on mobile.

• The mobile website has a clear, concise and

straightforward interface . The site provides all

essential functions for booking a movie.

• Also easy to download their free app from the

mobile website

Ster Kinekor, South Africa

Time & place

38

Mobile content needs to be tailored to when and where it is most likely to be consumed.

• WhatSale is a promotional app with location based

features. It delivers timely information that can

results in immediate response.

• According to one of our research participants:

“WhatSale is really good. This one time I was at

the Circle Ratchaphruek with my friends and a

notification popped up telling me about a

promotion at an apparel store nearby. So I went in

and got myself some clothes”

WhatSale, Thailand

39

MOBILE WEBSITES, APPS

AND DISPLAY ADS

MARKETINGBEST

PRACTICES

f o r

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

Sample: smartphone users, AFRICA and global averages41

Unique to screen

Speed & display

Targeted18%

22%

21%

15%

26%

63%

71%

73%

Includes location based features

More fun than the brand's regular desktop website

Different features to the brand's regular desktop website

Looks better than the brand's regular desktop website

Easier to use than the brand's regular desktop website

Displays clearly on my mobile device

Easy to find via mobile search

Loads quickly

-6

-12

-2

0

Vs Global

+9

+24

+10

-5

AFRICA average

Mobile websites should be fast and functional

42

Simple is safest until network speeds improve

What makes a good mobile website?

don’t:feel compelled to outdo your

online 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

44

What makes a good mobile app?

don’t:crash (don‟t be too resource

intensive)

build one unless it will be used

regularly

feel compelled to make it too

complex

bite off more devices than you can

chew (better no app than a poor app)

do:be free if possible and

easy to find

clearly explain what you

offer, and what you‟ve updated

focus on ease of use

deliver something of value

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

46

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

Key FindingsAT A G L A N C E

48

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 ads

to grow brands IF simple

best practice rules are

applied more

conscientiously

5.

Opportunity Toleration

Effective Respect Best Practice

Thank You – Any questions?

Please contact:

Richard Stewart

e. richard.stewart@millwardbrown.com

t. 011 202 7000

Monique Leech

e. monique.leech@millwardbrown.com

t. 011 202 7000