1

Mobile advertising through the consumers’ lens

A R E W E G E T T I N G T H E M O S T O U T O F I T ?B Y A D R I A N A S O U S A

2

Assumed low reach

Fear of invading personal space of consumers

Lack of understanding of how to make the most of the mobile space

Understanding how mobile works as part of the wider media mix

Low awareness of mobile ad effectiveness research

Limited research budget available for more experimental/new advertising platforms

Research took place in 18 countries around the world

3

MEXICO

CANADA, US

BRAZIL

INDIA, THAILAND

KENYA, NIGERIASOUTH AFRICA

FRANCE, GERMANY, ITALY, SPAIN, TURKEY, UK

CHINA, KOREA,

INDONESIA

4

T H E H U G E OPPORTUNITY

MOBILE USAGE ON THE RISE

1.5 BILLION

Smartphones and tablets installed. Mobile users will exceed desktop users by 2014*

13% OF WEB

Traffic comes via mobiles (this more than doubled globally in the past year)

*Source: Katy Huberty, Ehud Gelblum, Morgan Stanley Research; ** Source: Informa WCIs / GSMA

37% GROWTH

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

*Source: emarketer6

JUST 1% OF SPEND

Globally is committed to mobile marketing*

3x BY2015

Mobile ad spend predicted to grow from $6.4bn in 2012 to $18.6bn in 2015

7

SHARE OF MOBILE IMPRESSIONS BY REGION

Broadband predicted to grow 50%

Mobile data traffic per capita will increase from 22 MG per month to 850 MB

Mobile ad spend from $3.62bn to $6.69bn* (84% growth)

Latin AmericaPredictions for 2015

8

MOBILE

and it is

RELEVANT at consumers’ agenda

plays an important role

In a typical week, how many hours do you spend….

9

Sample: smartphone usersSample: tablet users

Share of smartphone time spent

Video7%

Music17%

Social Networking

14%

Talking13%

Texting13%

Web or email14%

Apps13%

Games9%

Share of tablet time spent

Video13%

Music12%

Social Networking

19%

Web or email23%

Apps20%

Games13%

Differences against global results

Sample: smartphone and/or tablet users, Latin America, Global average10

People love their mobile devices and they are indispensable efficiency tools

My primary tool for organizing my work life

My primary tool for organizing my household

My primary tool for organizing my personal life

Makes me more efficient

Indispensable because I’m always on the go

Global

65%

50%

34%

63%

54%

48%

40%

33%

59%

45%

Latin America

11

A R E B R A N D SWELCOME

ATTITUDEStowards mobile

marketing formats

in this intimate space?

Almost ¼ of Latin American consumers are favourable to mobile advertising

12

CanadaUS

SpainFrance

GermanyUK

TurkeyItaly

MexicoChinaBrazil

South AfricaIndia

NigeriaKenya

Global Average

111112131314

171919

2223

3043

4848

23

VERY/ SOMEWHAT favorable,%

Sample: tablet usersSample: smartphone users

9

16

18

22

28

25

28

26

19

30

29

35

51

39

55

29

Sample: smartphone or tablet users, Latin America data Strongly/somewhat agree13

38%Are happy to see ads in apps, as long as the apps are free

37%Are happy to see ads on mobile websites, as long as the content is free

30%Are happy to share their location to get more relevant services and offers

14

AND CAN PLAY MANY ROLES

MOBILEI S

FLEXIBLE

IN THE COMMUNICATIONS

MIX

Source: Dynamic Logic MarketNorms for Online, last 3 years Latin America norm; AdIndex for Mobile Norms. Delta (Δ)=Exposed-Control15

Mobile Online

Aided BrandAwareness

BrandFavorability

PurchaseIntent

+5.9

+19.9

+12.1

AdAwareness

MessageAssociation

+0.7

+4.3

+2.5

+3.9

+4.7

+1.7

+1.8

OnlineMobile

Mobile advertising can deliver higher results in the short-mid terms

15

16

16

17

18

19

21

38

41

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

Sample: smartphone and/or tablet users, Latin America data, Global averages16

Visited the brand website

Searched for the brand

Looked for brand in a store

Clicked/Interacted with ad

Recommended it

Searched for more ads

Visited a site for similar brand

Downloaded brand's app

Purchased the brand

Global Average

33%

31%

19%

22%

15%

13%

16%

15%

14%

17

MOBILE APPS AND

DISPLAY ADS

MARKETINGBEST

PRACTICES

F O R

Source: Dynamic Logic’s AdIndex for Mobile Norms through Q3/2011Overall Mobile N=165 campaigns, n=125,471 respondents. Delta (Δ)=Exposed-Control18

Percent Impacted: Delta (Δ)

Aided BrandAwareness

BrandFavorability

PurchaseIntent

Mobile AdAwareness

MessageAssociation

+18.1

+5.9

-2.7

+44.4

+19.9

+2.4

+29.8

+12.1

-1.3

+14.5

+3.9

-4.9

+16.3

+4.7

-4.0

Mobile Best Performers Overall Mobile Performers Mobile Worst Performers

Are all mobile campaigns successful?

What makes a good mobile display ad?

19

don’t:do:

Clearly brand your creative

Make sure you have a clear call-to-action

Make the ads interactive and engaging

Target as tightly as possible

Show your brand only on a product shot

Clutter your ads

Only adapt online creative

Use intrusive formats unless context is highly relevant

What makes a good mobile app?

20

don’t:do:

Be free if possible and easy to find

Clearly explain what you offer

Focus on ease of use

Deliver something of value

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

21

EngagementMobile provides opportunities to go deeper when consumers have moments of downtime.

Surprise & delightPut a smile on the face of your consumers with every mobile connection you deliver.

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

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

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

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

Time & placeMobile content needs to be tailored to when and where it is most likely to be consumed.

Principles for a brand’s mobile success

Finally, RESPECT for the

mobile audience and platform will

ensure a ROI of mobile within the

media mix.

22

23

Mobile advertising through the consumers’ lens

A d r i a n a . S o u s a @ m i l l w a r d b r o w n . c o m