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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 0 1 3

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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

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MEXICO

CANADA, US

BRAZIL

INDIA,

THAILAND

KENYA, NIGERIA

SOUTH AFRICA

FRANCE, GERMANY,

ITALY, SPAIN,

TURKEY, UK

CHINA,

KOREA,

INDONESIA

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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: emarketer 6

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

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SHARE OF MOBILE IMPRESSIONS BY REGION

Latin America Today

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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 America Predictions for 2015

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MOBILE

and it is

RELEVANT at consumers’ agenda

plays an important role

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

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Sample: smartphone users Sample: tablet users

Share of smartphone time spent

Video

7%

Music

17%

Social

Networking

14%

Talking

13%

Texting

13%

Web or

email

14% Apps

13%

Games

9%

Share of tablet time spent

Video

13%

Music

12%

Social

Networking

19%

Web or email

23%

Apps

20%

Games

13%

Differences against global results

People love their mobile devices and they are indispensable efficiency tools

Sample: smartphone and/or tablet users, Latin America, Global average 11

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

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A R E B R A N D S

WELCOME

ATTITUDES towards mobile

marketing formats

in this intimate space?

Almost ¼ of Latin American consumers are favourable to mobile advertising

13

11

11

12

13

13

14

17

19

19

22

23

30

43

48

48

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Canada

US

Spain

France

Germany

UK

Turkey

Italy

Mexico

China

Brazil

South Africa

India

Nigeria

Kenya

Global Average

VERY/ SOMEWHAT favorable,%

Sample: tablet users Sample: smartphone users

9

16

18

22

28

25

28

26

19

30

29

35

51

39

55

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Sample: smartphone or tablet users, Latin America data Strongly/somewhat agree 14

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

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AND CAN PLAY MANY ROLES

MOBILE I 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-Control 16

Mobile Online

Aided Brand

Awareness

Brand

Favorability

Purchase

Intent

+5.9

+19.9

+12.1

Ad

Awareness

Message

Association

+0.7

+4.3

+2.5

+3.9

+4.7

+1.7

+1.8

Online Mobile

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

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16

16

17

18

19

21

38

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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 averages 17

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%

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MOBILE APPS AND DISPLAY ADS

MARKETING BEST

PRACTICES

F O R

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

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Percent Impacted: Delta (Δ)

Aided Brand

Awareness

Brand

Favorability

Purchase

Intent

Mobile Ad

Awareness

Message

Association

+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?

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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?

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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

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

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

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

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

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

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

Time & place Mobile 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.

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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