Reach Your Target Audiences, Strategies and Technologies in Mobile Advertising

Mobile Marketing Association

KRISTYN CLEMENT

Director, Research & Insights

AT&T AdWorks

©2013 AT&T Intellectual Property. All rights reserved. Proprietary Information of AT&T

Mobile Marketing Association ©2013 AT&T Intellectual Property. All rights reserved. Proprietary Information of AT&T


Mobile Marketplace


Smartphones Continue to RiseThe mobile landscape is getting smarter. Now, nearly 1 in every 2 mobile phone consumers owns a smartphone and that number will continue to rise.

U.S. Mobile Phone Users 2012: 242.8 MM

Non-Smartphone users: 127

MM

47.7%52.3%

Smartphone users: 115.8

MM

Projected growth of

smartphone users in 2013:

137.5 MM

Source: eMarketer 2012


Currently, about 1 in 4 U.S. consumers now owns a tablet and that number is projected to rise to 1 in 3 in 2013.

33.7 Million Tablet Users



2011 2012 2013

Tablet Penetration is Growing Fast

Source: eMarketer 2012


Mobile Usage at Home


Multi-Screen Usage is a Big DealOf the consumers who own a smartphone, tablet and/or laptop, 67% of them frequently use their second screen while watching TV.

Always NeverSometimes

24%

33%

23%

35%

27%

8% 7%

23%

31%

25%

14%

8%

Smartphone Tablet

Laptop

Frequently

Seldom

Frequency of Using Devices While Watching TV

Source: AT&T AdWorks Custom Online Study, MediaLink/Ipsos, Sept. 2012; Based to those who own each device. Due to rounding, percentages may not add up to exactly 100%.


87% 94% 43% 66% 23% 48%Multi-tasking activities

unrelated to the TV program being watched

Accessed content related to the TV

show being watched

Viewed show-related content that was being

synched with TV content in real timeOwn 1 mobile

deviceOwn 2 mobile devices

91% 53% 23%

Own 3 mobile devices

Source: AT&T AdWorks Custom Online Study, MediaLink/Ipsos, Sept. 2012. Mobile devices include laptop, smartphone and/or tablet

Multi-Tasking Mobile Device BehaviorsThe more devices owned, the more second screen content is consumed.


Mobile Usage In-store


70% of smartphone owners have done at least 1 of the following activities while using their phone in a store:

Checked the price of an item from competitorsLooked up shipping info for an item

Sent a picture prior to purchase to get an opinionContacted someone (call, text or email) to get their opinion

before purchase

Used a coupon on your smartphoneScanned a QR

code

Reviewed a product description to get more informationPurchased a product online after seeing it in-store

Check to see if an item is available for in-store pickup

35.2%16.4%15.7%

32.9%25.4%

22.4%

28.6%24.3%

24.3%

15.6%

Comparisons:

Promo Actions:

Advice:

Research:

Checked to see if item is in-stock at another store

Looked for discounts, coupons or offers online

18.9%15.7%

Read product reviews

Source: AT&T AdWorks Custom Online Study, Compete, Sept. 2012

Mobile Usage In-store


Interstitial unit delivered a 5% CTR and 10% in unit engagement

Generated more than 34,000 coupon downloads saved in mobile phone’s photos (extending the life of the campaign)

6% redemption rate of product samples at participating stores

ChicagoCosmetics

Click for Free

Sample

Interstitial unit delivered a 5% CTR and 10% in unit engagement

Generated more than 34,000 coupon downloads saved in mobile phone’s photos (extending the life of the campaign)

6% redemption rate of product samples at participating stores

ChicagoCosmetic

s

Click for Free

Sample

AT&T AdWorks ran a mobile coupon campaign for a cosmetic company that offered free product samples to customers in store. The campaign was targeted to women in the Chicago DMA.

The campaign included both banner ads and interstitial ads with the ability to download a coupon and save it as a photo on a mobile phone. The ad units also featured a store locator screen with a map locating the closest participating stores to redeem the coupon.

Campaign Results:

Case Study: Mobile Coupon Campaign

Source: AT&T AdWorks Internal Campaign Data, 2012


Mobile Technology Snapshot


Near Field Communications (NFC)

“Nothing gets you closer to your consumer than mobile.”- CEO, Digital Industry Organization

2D/QR Codes

Source: AT&T AdWorks Custom Study, MediaLink/Ipsos, Sept. 2012

AT&T AdWorks recently conducted primary research

to evaluate different mobile technologies in the

marketplace including 2D/QR Codes and NFC. This

research looked at the selected mobile technologies

from both a Consumer View and a Marketer View.

Using Mobile Technology as a Tool


• 1-in-5 smartphone owners has used NFC which is dependent on owning an NFC-enabled phone

• Primarily used for streaming media, mobile payments, and location check-in for rewards. Potential for use in informative and promotion based content

• 62% of current users are ‘very satisfied’ with their experience(s)

• Top reasons for dissatisfaction: not enough usage opportunities available today, and took too long for content to load

• 2-in-3 current users describe the technology as intimidating to use

• Less than half of smartphone owners have ever used 2D/QR codes…despite them being available for several years

• Primarily used to learn more about products, obtain coupons, interact with ads, and look up information about a location

• Only 46% of current users say they were ‘very satisfied’ with their experience(s)

• Reasons for dissatisfaction: lack of valuable content, content taking too long to load, information was not what was expected

• 40% of current users claim they are intimidating to use

2D/QR CodesNear Field Communications (NFC)

Consumer View: Disappointed with QR codes; Pleased with NFC experience

Source: AT&T AdWorks Custom Online Study, MediaLink/Ipsos, Sept. 2012

Mobile Marketing Association

Marketer View: Missed opportunity with QR codes; NFC opportunity looks promising

©2013 AT&T Intellectual Property. All rights reserved. Proprietary Information of AT&T

2D/QR Codes

• Technology was forced on consumers; consumers were not well educated on how to use the codes

• Saw promise in QR codes but overzealous application in ads far outpaced the consumers’ adoption of the technology

• Value propositions were squandered by poor execution. Given the lack of success, marketers are moving on to the next mobile technology

“We didn’t see usage despite industry trying to force it on consumers.”

“Consumers are confused. It needs to be embedded and intuitive to gain usage.”

Near Field Communications (NFC)

• Positive and optimistic outlook of the technology

• Applying the lessons they learned from QR codes to nurture this new mobile tool by capitalizing on the connection it provides between the digital and physical world

• Anticipate NFC usage to be strongly linked to mobile payment depending on broad point of sale (POS) adoption

“Barriers are lower for accessing content…you don’t have to start up an app like with QR codes.”

“The day is coming, but not within the next year.”

“Connecting mobile and POS is going to be huge. It’s going to open up a lot of opportunities – very exciting.”

“We have gone too far down the road where consumers think the experience is going to suck.”

Source: AT&T AdWorks Custom Study, MediaLink/Ipsos, Sept. 2012


Mobile Ad Landscape & Best Practices


Mobile Ad LandscapeMobile spend has been slowly increasing, yet not as fast as the increase in the amount of time consumers are spending on their devices.

1.6%

Share of time spent using media daily Ad spending share

11.7%The Daily

Media

Share of Average Time Spent on Mobile Among Adults vs. Ad Spend in US

Source: eMarketer Sept. 2012


Banners

Rich Media

Video

SMS$ M

illion

s

2010

2011

2012

2013

US Mobile Ad Spending by Format

US Mobile Ad Spending is IncreasingeMarketer projects mobile ad spend to steadily increase, with banner and rich media formats predicted to increase most quickly.

Source: eMarketer Sept. 2012


86%

10%4%

65%

24%

11%

Standard

VideoRich MediaStandard

VideoRich Media

Share of Impressions Delivered by Device: 2012

Impressions Delivered by DeviceAdWorks saw an increase in the number of mobile campaigns during 2012. Clients have been buying more and more in tablets, but smartphone still dominates as the primary mobile ad device.

Source: AT&T AdWorks Internal Campaign Data, 2012


Average Mobile Audience Network CTR by Ad Type on Smartphones and/or Tablets

Standard

Rich Media Video

0.68%1.03%

2.06%

+ + +

CTR Trends by Ad TypeCTR is impacted by several factors, but trends exist when evaluating the performance of different ad formats. Standard banners tend to deliver lower CTR than rich media and video placements.

Source: AT&T AdWorks Internal Campaign Data, 2012. Only campaigns delivering 100K+ impressions were included.


28%

15% 14% 12% 14% 11% 12% 10% 13%

25%

18%15%

12%19%

8%15%

10%

16%

36%

45%

42% 47%

47%

48%

48%

44%

48%

9%18%

22% 23%

18%

27%20%

30%

21%

3% 7% 6% 6% 5% 6%

I love itI like itNeutralI dislike itI hate it

Consumer Perceptions: Ad Features

Digital Ad Unit Type: Consumer Rating

Ads that provide a built-in value proposition – either monetary and/or informational – are rated more positively by consumers

Source: AT&T AdWorks Custom Online Study, Compete, Jan. 2013


Based on Shop Alert ad concept evaluations (n=605)

“I like the timely savings… I wouldn’t have to worry about coupons when I shop.”

Likely to Click On or Interact With Ad Type

(% Top 2 box )

Smartphone

Tablet

PC / Laptop

36%

22%

25%

20%

21%

24%

Other Ad Concepts Mobile Shop Alerts

Restaurants 52%

Electronics 43%

Food Products 38%

Health & Beauty 37%

Top 5 Vertical Fit

Example 1: Shop Alerts

Base: owners of each device

Apparel 47%



More likely to remember

Feel more positive about a brand

Stands out from other ads

Makes me want to learn moreClick on ad

Visit website

Remember seeing the ad

0%

50%

Mobile Shop Alerts Other Ad Concepts

Read the offer

Redeem the offer

Tell a friend about the offer

40.3%

37.5%

26.8%

% Top 2 box Likely To(Assuming ad was for a product/service you are interested in)

% Top 2 box Likely / Agree

“It would tempt me to go to a participating store.”

38% agree (top 2 box)…“An ad like this would help me discover new store locations I wasn’t aware of.”

Based on Shop Alert ad concept evaluations (n=605)

Example 1: Shop Alerts


Likely Click on or Interact With Ad(% Top 2 box )

Automotive 62%

Apparel 55%

Electronics 42%

Appliances 7%

Housewares 36%

Top 5 Verticals Fit

“I like that I can view the product of interest at every angle and interact with it.”

Example 2: 360° Product Viewer


Smartphone

Tablet

PC / Laptop

17%

30%

33%

22%

19%

23%

Other Ad Concepts 360 Degree Product View360° Product Viewer

Based on 360° Product Viewer ad concept evaluations (n=610)


% Top 2 box Likely To / Agree

% Top 2 box Likely To / Agree

Recall interacting with and ad like this: 12%138 Index to other ad concepts

Based on 360° Product Viewer ad concept evaluations (n=610)

More likely to remember

Feel more positive about a brand

Stands out from other ads

Makes me want to learn moreClick on ad

Visit website

Remember seeing the ad

0.0%

50.0%

360° Product Viewer Other Ad ConceptsRotating the product and/or changing the color

Help me understand the advertiser’s products / services

An ad like this would be fun to interact with

Seeing product options visually makes the product more interesting

More likely to purchase a product if featured in an ad like this

35%

40%

39%

45%

21%


Example 2: 360° Product Viewer

(Assuming ad was for a product/service you are interested in)


Keep the ads simple but effective. Include several clear and large calls to action for smartphones and reserve heavy content rich media ads for tablet.

Incorporate a mix of ad units to maximize reach and optimization opportunities. The “right” mix of ad units is highly dependent on the details of the campaign. But, in general, standard banners are economical and tend to work well for conversion, while rich media works better as a branding and engagement tool.

Include rich media interstitial ads which tend to perform well and provide a different element to more standard ad buys.

Click-to-video banners and video ad units are easy to build, do not require long lead time, and allow advertisers to leverage online creative assets.

Ad unit “fit” matters. Certain ad types work better for tablet or smartphone and for specific verticals/product types.

Best Practices for Mobile Ad CampaignsTips for maximizing the effects of your mobile campaign.

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Reach Your Target Audiences, Strategies and Technologies in Mobile Advertising