Millennialmedia Special Report - November 2012

Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.™)

NOVEMBER 2012

Special

Report

Retail &Restaurant

CAMPAIGN HIGHLIGHT:AUNTIE ANNE’S

To download the full campaign summary, visitwww.millennialmedia.com/advertise/campaign-successes

GOAL:Reach moms in Atlanta shopping malls and drive redemptions of a deal for a fountain beverage and Auntie Anne’s Pretzel.

STRATEGY:Auntie Anne’s, together with technology partner Sparkfly, developed a mobile campaign to reach moms in Atlanta malls through mobile coupons and drive redemption of the offer. To ensure the ads were hitting the target consumers, Auntie Anne’s leveraged Millennial Media’s audience targeting capabilities. As a result, Auntie Anne’s was able to gain point-of-sale consumer purchase metrics to measure the effectiveness of the offer.

“One of the primary benefits of the partnership is to track an offer from the onset to point of purchase. Not only can we measure how effective individual offers are, but we can analyze the performance of individual display units.”~ Heather Neary, CMO at Auntie Anne’s

This special S.M.A.R.T. ™ report focuses on mobile advertising trends within the Retail & Restaurant industry. We highlight what Retail & Restaurant brands are doing on mobile, which audiences are resonating with these brand advertisers, how shoppers are engaging with content, and how Retail & Restaurant brands can evolve their mobile advertising strategies moving forward. From Fast Food chains to Fine Dining, and National Retailers to Luxury Goods, a wide variety of retail brands are using mobile advertising to reach and engage their customers.

Retail & Restaurant Industry: Mobile Advertising Trends

Source: Millennial Media, Q1 & Q2 2012.

Retail & Restaurants Vertical MixCHART B

CLOTHINGHOME PRODUCTSQSR/FAST FOODCOMPUTERS & ELECTRONICSONLINE RETAILERSJEWELRYRETAIL STORESRESTAURANTS

21%

30%

11%

10%

9%

7%

7%5%

TELECOMMUNICATIONSFINANCERETAIL & RESTAURANTSENTERTAINMENTAUTOMOTIVEEDUCATIONTRAVELCPGTECHNOLOGYPORTALS & DIRECTORIES

123456789

10

RANK CATEGORIES

Top 10 Global Brand Advertising VerticalsRanked by SpendCHART A

The Retail & Restaurants vertical was the third largest on our platform in Q1 & Q2 2012 (Chart A). Retail & Restaurant brands have consistently been in the top 10 on our platform, maintaining spend and mobile activity from quarter to quarter. During the first six months of 2012, Retail & Restaurant advertiser spend grew at an average of 11% a month. Campaigns run by national retail chains, clothing companies, fast food, and casual dining chains contributed to this growth.

Clothing retailers accounted for 30% of all Retail & Restaurant campaigns in Q1 & Q2 2012 (Chart B), led by department stores that used mobile to drive consumers to their locations and mobile retail websites. Home Products represented 21% of the campaigns on our platform in Q1 & Q2. Within the sub-vertical, home improvement stores ran mobile campaigns around each season’s home needs. Together, Restaurants and QSR/Fast Food brands represented 16% of the advertiser mix. QSR and Fast Food restaurants, typically owned by franchisees, utilized the location-based targeting abilities of mobile to stay top of mind when users were near one of their locations.

Insights:

November 2012


Visit www.millennialmedia.com/mobile-intelligence to sign up 2

CAMPAIGN HIGHLIGHT:CARPHONE WAREHOUSE EMEA

To download the full campaign summary, visitwww.millennialmedia.com/advertise/campaign-successes

GOAL:Drive awareness around Carphone Warehouse’s “Free Gift Card” promotion and demonstrate that Carphone Warehouse is the destination for the entire Samsung Galaxy family.

STRATEGY:Together with their agency M/Six, the company built an interactive video interstitial and used Millennial Media’s Mobile Circular ad unit that allowed users to swipe side-to-side to browse the Samsung Galaxy phones. Both engagement methods showed higher than industry average results for the advertiser.

“The Carphone Warehouse mobile campaign engaged consumers in a variety of ways. Whether it was Interactive Video, custom rich media units, or standard banners, the campaign was a creative way to advertise multiple products and promotions.”~ Poppy Wilson, Digital Account Director at M/Six

Source: Millennial Media, Q1 & Q2 2012.Data is based on the Top 1500 Campaigns on Millennial Media’s Platform in Q1 & Q2 2012. Source: Millennial Media, Q1 & Q2 2012.

Data is based on the Top 1500 Campaigns on Millennial Media’s Platform in Q1 & Q2 2012.

Retail & Restaurant Campaign GoalsCHART C

Retail & Restaurant Campaign GoalsBy Sub-VerticalCHART D

INCREASED FOOT TRAFFICSITE TRAFFICBRAND AWARENESSPRODUCT LAUNCH/RELEASESUSTAINED INMARKET PRESENCEREGISTRATIONS

17%16%

38%

11%

11%

7%

Across the vertical, Retail & Restaurant brands most often leveraged mobile with the goal of driving consumers to their locations, whether in-person or online. Together, Increased Foot Traffic and Site Traffic made up 55% of Retail & Restaurant Advertisers’ Campaign goals in Q1 and Q2 of 2012 (Chart C). The Post-Click Actions that support these Campaign Goals, such as Store Locator, View Map, and m-Commerce, also indexed very high for Retail & Restaurant brands (Page 4, Chart E).

The breakout of each campaign goal by sub-vertical is shown in Chart D. 73% of campaigns with Product Launch/Release goals were Computers & Electronics brands. These advertisers utilized mobile to inform consumers about new technologies and models entering the market. Online retailers most often leveraged mobile to generate sales leads through mobile registrations (57%).

Insights:

November 2012


0%

20%

40%

60%

80%

100%

BRANDAWARENESS

INCREASEDFOOT

TRAFFIC

PRODUCTLAUNCH/RELEASE

SITE TRAFFIC

SUSTAINED INMARKET PRESENCE

REGISTRATIONS


CLOTHINGHOME PRODUCTSQSR/FAST FOODCOMPUTERS & ELECTRONICSONLINE RETAILERSJEWELRYRETAIL STORESRESTAURANTS

0%

10%

20%

30%

40%

50%

November 2012

Retail & Restaurant advertisers on our platform used a variety of Post-Click Campaign Actions in the first half of 2012. Store Locator, m-Commerce, and View Map all over-indexed for Retail & Restaurant advertisers (Chart E), and were most often delivered to consumers as part of a mobile landing page. Store Locator was the largest, involved in 44% of the Post-Click Campaign Action Mix. These three actions can all be the results of the largest campaign goal within the Retail & Restaurants vertical, driving customers into stores and onto retail websites to make purchases (Page 3, Chart C).

In addition to Store Locator, m-Commerce, and View Map, the other Post-Click Campaign Action that over-indexed compared to all advertisers was Retail Promotion (Chart E). Retail Promotion accounted for 30% of the Post-Click Campaign Action Mix for Retail & Restaurant advertisers. By engaging with mobile users around a store location, and providing them with a coupon, discount, or other sales incentives, advertisers were aiming to keep their brands top of mind with shoppers and drive increased traffic to their stores.

Insights:

Source: Millennial Media, Q1 & Q2 2012. Data is based on the Top 1500 Campaigns on Millennial Media's Platform in Q1 & Q2 2012.

RETAILPROMOTION

STORE LOCATOR WATCH VIDEO VIEW MAPPLACE CALL REGISTRATIONSAPPLICATIONDOWNLOAD

SITE SEARCHmCOMMERCE MOBILE SOCIALMEDIA

Post-Click Campaign Action MixCHART E

RETAIL & RESTAURANT ADVERTISERSALL ADVERTISERS


8%

36%

30%33%

30%29%

9% 10%

19%

40%

16% 16%

21%

44%

13%

6%

18%

40%

8%

17%

Source: OnDevice Research, January 2012.

In the UK, as the popularity of discount codes continues to increase,

of consumers stated that mobile is their preferred redemption method.

53%


Source: Forrester Research, Inc. North American Technographics® Retail Online Survey, Q2 2012 (US).

According to survey research by Forrester, Parents are active mobile phone shoppers, and are nearly

to make retail purchases on their devices.

2x as likely

November 2012

Some of the top performing audiences in the Retail & Restaurant Vertical in Q1 & Q2 included Fashionistas, In-Market Auto Intenders, Foodies, and Movie Buffs (Chart F). Mobile Switchers and Gadget Geeks were also two of the Top Performing Audiences within the vertical for the quarter. Consumers who are early adopters of mobile technology and are continually looking to upgrade their device tend to be very adept at using mobile apps for Retail and m-Commerce experiences.

Business & Finance Enthusiasts was also a Top Performing Audience on the Millennial Media platform for the Retail & Restaurant Vertical (Chart F). Mobile users who are very comfortable utilizing their devices for secure activities such as banking and the management of investment accounts, tend to also trust their mobile devices to a greater range of everyday activities.

One of the aspects that makes mobile uniquely different is its ability to target users wherever they are. 61% of Retail & Restaurant advertisers on the Millennial Media platform utilized a form of location-based targeting in their campaigns in the first six months of 2012. Of these campaigns using location-based targeting, 60% of them were a restaurant brand, including both Fast Food, Casual, and Fine Dining advertisers (Chart G). Mobile users search for food and dining-out options while they are on the go, whether they are looking to get a quick snack, or try a new restaurant.

Insights:

Top Performing Audiences in the Retail & Restaurant VerticalCHART F

Source: Millennial Media Q1 & Q2 2012.

Mobile Switchers

GadgetGeeks

In-Market Auto Intenders

Movie Buffs



Fashionistas

Foodies

RestaurantGoers

Single & Dating


Retail & Restaurant Campaigns Leveraging Local AudiencesCHART G

QSR/FAST FOODRETAIL STORESRESTAURANTSHOME PRODUCTSCLOTHINGCOMPUTERS & ELECTRONICSONLINE RETAILERSJEWELRY

22%

39%

21%

7%

7%

2%1% 1%

Surveys find that Females spend nearly

on mobile Retail & Restaurant apps and mobile websites as men do.

twice as much time

Source: comScore Mobile Metrix 2.0; 1-month June 2012.

Students

Business & Finance Enthusiasts

November 2012

Summary & Reporting Methodology

©2012 Millennial Media, Inc. All rights reserved. All product names and images are trademarks or registered trademarks of their respective owners.

About Millennial Media

Millennial Media is the leading independent mobile advertising and data platform. Our technology, tools and services help app developers and mobile website publishers maximize their advertising revenue, acquire users and gain audience insights. Our platform also enables us to offer advertisers powerful Mobile Audience Solutions (MAS) that utilize our significant scale, sophisticated targeting and uniquely engaging creative capabilities to deliver meaningful results.Visit www.millennialmedia.com for more information.

About S.M.A.R.T.™

The Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ delivers regular insights on key trends in mobile advertising based on actual campaign and platform data from Millennial Media.

Visit www.millennialmedia.com/mobile-intelligence to sign up to receive Millennial Media-related news including the Mobile Mix™ report, the Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.)™ report, and the Mobile Intel Series.

For questions about the data in this report, or for recommendations for future reports, please contact us at [email protected].
