AdReaction 2012 CHINA · navigating the MOBILE LANDSCAPE 2012 This year, our study focuses on mobile advertising. With ... must understand the role that mobile can and should play

AdReaction 2012 CHINA N AV I G AT I N G T H E M O B I L E L A N D S C A P E

1

AdReaction

2

navigating the

M O B I L E LANDSCAPE

2012

This year, our study focuses on mobile advertising. With

this research, we seek to provide marketers with a

roadmap of how to navigate the mobile landscape.

Research that preceded this clearly highlighted

development into a more mobile-based society globally.

Mobile presents unique opportunities and unique

challenges. As marketers we must balance how we

reach out to the mobile user both impactfully yet

unobtrusively. We must understand how individuals

differentially use and relate to their mobile device. We

must understand the role that mobile can and should

play in the marketing mix. Finally, we need to know how

mobile can amplify or diminish brand equity.

Welcome to the 2012 AdReaction study!

Mobile Usage in

China

Tr e nds i n 20 1 2

According to CNNIC, in 2012, the number of mobile Internet users will surpass the number of desktop computer Internet users

4

28186

30912

34484 35890

37662

38016

23347 27678

30273 31768

35558

38825

11789

15456

20899 22407

24013 24237

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2009.12 2010.6 2010.12 2011.6 2011.12 2012.6

China Netizens (Unit: 10,000 people)

Desktop

Mobile

Laptop

Source: “China Internet development statistics” ,CNNIC, July 2012

Amongst respondents who began Internet usage in 2012, six-in-ten who live in rural areas use mobile to surf the Internet; half of those who live in cities use mobile to do so

5

45.7%

8.7%

60.4%

50.6%

22.3%

47.2%

0%

10%

20%

30%

40%

50%

60%

70%

Desktop Laptop Mobile

Rural

Town/City

User-ship amongst respondents who started to use Internet

Source: “China Internet development statistics” ,CNNIC, July 2012

China mobile advertising spending predicted to surpass South Korea in 2016, becoming the second largest mobile advertising spending country in Asia Pacific

6

108.5

195.6

313.5

483.1

631.8

780.3

322.0

450.8

543.2

624.7

694.0 763.4

0

100

200

300

400

500

600

700

800

900

2011 2012 2013 2014 2015 2016

China mobile advertising spending predictions 2011-2016 (unit: million USD)

China

South Korea

Source: “Mobile Ad Spending Worldwide” ,eMarketer July 2012

Tencent QQ remains the most dominant mobile community in China

Sample: smartphone or tablet users

7

QUESTION: Which online communities do you currently participate in via your mobile

phone or tablet?

83% 76%

73%

67% 67% 64% 64%

59% 57% 54%

46% 46% 42% 40% 39%

34%

25% 24% 23%

16% 13%

10% 6% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Advantages of Mobile Advertising

8

1. Mobile advertising provides opportunity to reach and impact different audiences: according to CNNIC (China Internet Network Information Center), smartphones have allowed more rural Chinese to log online in areas where fixed-line networks are not covered. There are 388 million Chinese netizens who use mobile phones for online usage, surpassing the 380 million of those who use computers online usage.

2.Mobile phones provide flexibility and mobility: unlike other media channels, mobile content can be accessed largely anywhere and offering multiple consumer contexts in different mindsets.

3.Mobile devices provide an instant and ongoing conversation with brands: constant connection and timely information- in growing cases around mobile user location-based with special offers and instant gratification- help to target and accurately complete more personalized communication preferences.

Disadvantages of Mobile Advertising

9

1. Mobile devices are generally small: mobile screen size, therefore, is limiting in content type that can be shown

2.Mobile advertising is limited in universal media placement standards: mobile is less standardized than PCs. Along with a myriad screen sizes, multiple operating systems and browsers make serving advertisement more challenging.

3.Mobile is personal: Chinese consumers use mobile devices daily to manage personal and working activities. Therefore, unsolicited interruptions ought to be managed with caution.

4.Credibility still in the air: as mobile branded communication is comparatively novel, mobile advertising, though potentially impactful, may also be viewed with guarded response from the consumer.

2012 ATTITUDES

Towards Mobile Ad Formats

AdReaction Research Design

11

The design consisted of 2 components:

Respondents were recruited during September 2012

AdReaction

MOBILE N=600

Who: Simple/ Smartphone and/or Tablet Users

- 81% smartphone owners

- 58% tablet owners

What: Deep dive into mobile advertising attitudes

How: Online interviewing

AdReaction

QUAL A total of 25 IdeaBlog sessions and

12 In-Depth Interviews

IdeaBlog: blogging activity lasted 5 days

IDI’s: lasted 60 minutes each and were

conducted face-to-face or telephonically

Traditional offline advertising formats such as TV, billboard and print are more favorable amongst mobile users

12 Sample: smartphone or tablet users

Base: (400)

FAVORABLE NEUTRAL NEGATIVE

5

6

6

6

7

9

9

13

14

11

21

24

25

21

30

37

35

32

20

31

41

45

34

43

40

40

30

28

22

18

16

23

13

11

8

16

34

19

9

7

13

4

3

4

8 TV ADS

BILLBOARD ADS

MAGAZINE ADS

NEWSPAPER ADS

DIRECT MAIL

RADIOADS

CINEMA ADS

PRODUCT PLACEMENTS

TELEMARKETING

QUESTION: Now thinking more generally about advertising, how would you characterize

your attitude towards each of the following formats of advertising?

QUESTION: Now thinking more generally about advertising, how would you characterize

your attitude towards each of the following formats of advertising?

13


Base: (400)

15

11

9

9

9

6

6

6

6

5

5

5

36

39

27

25

22

24

23

22

18

19

17

13

33

33

38

39

34

45

41

38

39

37

38

34

11

11

15

18

24

16

21

23

22

23

23

25

3

3

9

7

9

8

8

9

12

15

15

22

LOCALIZED OR TAILORED ADS

NEWSFEED POSTS

ADVERGAMES

OPT-IN EMAIL ADS

ONLINE ADS W/ VIDEO

ADS ON SNS

ONLINE WEBSITE DISPLAY ADS

ONLINE SEARCH ADS

ADS ON TABLETS

ADS ON TABLETSADS ON MUSIC PLAYERS

ADS ON MOBILE PHONES

NON-OPT-IN EMAILS


Approximately one-quarter of consumers find advertising on tablets and mobile phones to be favorable

Within the mobile environment, targeted brand communication is most favored amongst consumers

Sample: smartphone or tablet users 14

QUESTION: How would you characterize your attitude towards each of the following

formats of advertising on mobile devices?

8

9

8

9

8

8

13

13

18

17

20

19

21

23

33

34

38

45

39

46

42

39

39

37

25

22

22

17

21

22

11

9

9

6

10

6

6

7

3

5

ADS WHILE I’M LISTENING TO A MUSIC PLAYER (E.G. PANDORA OR SPOTIFY)

DISPLAY ADS ON MOBILE INTERNET WEB PAGES

SMS TEXT MESSAGES

ADS ON MOBILE SEARCH RESULTS PAGES

ADS WITHIN MOBILE APPLICATIONS (APPS)

VIDEO ADS ON MOBILE INTERNET WEB PAGES

AUGMENTED REALITY APPLICATIONS

NEWS FEED POSTS FROM BRANDS I HAVE LIKED OR FOLLOWED INSOCIAL MEDIA (E.G. KAIXIN, RENREN, WEIBO)


Attitudes towards mobile advertising formats

Sample: Smartphone or tablet users 17

NEWS FEED POSTS

MOBILE FORMAT

DELIVERY MEDIUM

LOCALIZED OR TAILORED DEALS

ADS ON MOBILE PHONE

Mobile advertising, though nascent in evolution, is growing in popularity. Consumer

appeal tends to be drawn towards more personalized, trusted messages, which falls into

forms driven by branded communication as well. Favorability towards augmented reality

also highlights the sophistication of mobile technology and consumers’ willingness to

accept new forms of communication.

18

BEHAVIOR

MOBILE

a n d

attitudes

15% 15% 14% 14% 14% 11% 9% 7%

Share of smartphone time spent

Using apps Making phone calls Social networking Surfing the web or emailing

Reading or sending texts Listening to music Playing games Watching video

19% 18% 16% 16% 16% 14%

Share of tablet time spent

Watching video Surfing the web or email Using apps Playing games Social networking Listening to music

Consumers exhibit a balanced approach to mobile activity share-of-time

Sample: smartphone users 19

QUESTION: Which of the following best describes how frequently you access apps or the

Internet from your mobile devices?

5%

32%

40%

17%

6%

None 1% - 25% 26% - 50% 51% - 75% 76% - 100%

On average, around forty percent of time spent on mobile devices are work related

Sample: smartphone/tablet users 20

5%

30%

46%

13%

6%

None 1% - 25% 26% - 50% 51% - 75% 76% - 100%

QUESTION: What percentage of your usage of your mobile phone/tablet is

work-related?

Phone 36%

Tablet 37%

42%

33%

11%

5%

2%

7%

Less than 10 10-20 21-30 31-40 41-50 50+

Consumers have an average of eighteen applications on their smartphones

21

HARDLY ANY, 9%

ABOUT HALF OF

THEM, 36%

MOST OF THEM, 42% ALL OF

THEM, 13%

Of the apps installed on your mobile phone, how

many have you used in the past 30 days?

Sample: smartphone users

33%

28%

16%

9%

4%

11%

Less than 10 10-20 21-30 31-40 41-50 50+

22

HARDLY ANY, 3%

ABOUT HALF OF

THEM, 35%

MOST OF THEM, 46%

ALL OF THEM,

16%

Of the apps installed on your tablet, how many have

you used in the past 30 days?

Sample: tablet users

Consumers have an average of 24 applications on their tablets

Consumers Expect Returns for Spending Time with Mobile Advertising


QUESTION: Please indicate how strongly you agree or disagree with the following

statements about your mobile device

8%

14%

16%

15%

15%

20%

25%

25%

31%

32%

33%

33%

40%

32%

33%

23%

19%

14%

15%

15%

17%

8%

5%

7%

5%

Strongly Agree Somewhat Agree Neither Agree Nor Disagree 22% Strongly Disagree

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 PAY FOR AN APP AS LONG AS

THERE ARE NO ADS IN IT

I’M HAPPY TO SEE ADS ON MOBILE

WEBSITES AS LONG AS THE WEBSITES ARE

FREE TO ACCESS

I ENJOY PLAYING ADVERGAMES, GAMES

THAT INCORPORATE ADS/BRANDS

Consumers primarily appreciate mobile devices for creating efficiency and organization




HAVING A MOBILE DEVICE MAKES ME MORE

EFFICIENT

MY MOBILE DEVICE IS MY PRIMARY TOOL FOR

ORGANIZING MY PERSONAL LIFE

AN INCREASING AMOUNT OF MY WORK IS

ACCOMPLISHED THROUGH MY MOBILE DEVICE

MY MOBILE DEVICE IS MY PRIMARY TOOL FOR

ORGANIZING MY HOUSEHOLD

MY MOBILE DEVICE IS INDISPENSABLE BECAUSE

I’M ALWAYS ON THE GO

NOW THAT I HAVE MY MOBILE DEVICE, I DON’T

REALLY NEED A COMPUTER 9%

9%

11%

17%

21%

26%

17%

24%

22%

30%

38%

41%

29%

33%

30%

32%

27%

26%

29%

26%

25%

17%

10%

6%

15%

9%

12%

4%

4%

2%

Strongly Agree Somewhat Agree Neither Agree Nor Disagree

Somewhat Disagree Strongly Disagree

Mobile Internet Usage Reported Too Slow by Consumers




12%

19%

30%

25%

37%

32%

17%

18%

4%

6%

Strongly Agree Somewhat Agree Neither Agree Nor Disagree

Somewhat Disagree Strongly Disagree

I USE MY MOBILE DEVICE FAR

LESS THAN I THOUGHT I WOULD

I FIND THE MOBILE INTERNET TOO

SLOW

Attitudes towards mobile are varied

26

MOBILE USAGE

MOBILE FLEXIBILITY

MOBILE MISGIVINGS

Chinese consumers highly value mobile devices for creating efficiency and organization.

There is some flexibility regarding mobile advertising, especially when some incentive is

considered.

27

MARKETING MIX

Role of mobile

in

The Role of Mobile

28

• Mobile gratifies key functional needs in a purchase journey

• Instant access to high level or basic Information

Pricing dominates this area, mobile used for a quick check of the latest offers in the category of interest or for an instant price compare during a shopping journey e.g. in store product evaluation

Consumer reviews or ratings of products, including specific features, e.g., TV quality, durability, function and performance

General learning for product consideration, as well as visualization of different product designs

• Engage with brand promotions , e.g., texts for gifts or rewards

• Quick purchases of low value items (e.g., less than RMB1000)

• Mobile also caters for softer, more emotional human needs

• A desire to remain up-to-date and knowledgeable means that instant information is highly value and less risk to be left behind

• Credible and trusted sources of consumer information to avoid being fleeced; user generated reviews are considered to be more trustworthy, accurate and fair

• Greater and more entertaining interaction with favorite brands e.g., through entering competitions

Seamless Experience - Mobile & Offline

29 PROJECT #

Mobile plays a crucial role at searching and collecting information

Product selection

Brand Awareness/new news delivery

Info searching/collection

Purchasing

TV ads

Outdoor ads/Bus ads/on

building/metro Magazine

Mobile website/online

shopping websites

PC online/ online

shopping websites

In store

PC online/ online

shopping websites

In store


shopping websites

WOM


shopping websites

PC online/ online

shopping websites

In store


shopping websites

Seamless Experience - Mobile & Offline

30

In fact, Mobile advertising and offline advertising play different roles at influencing consumer attitudes and

perceptions on brand/product and can work together to bring consumer optimal values. Offline advertising: a familiar friend and access point. Have an ongoing influence and have engendered trust and a valuable information point over time. Mobile advertising: offer a further access point to brand information with the added value of ‘where and when I need it’ option as well as greater interactive two-way entertainment through options for geo-tagging and participation in activations, such as competitions. Although, the trust and credibility is not yet as strong as it is for the more familiar off-line advertising channels.

Mobile ads

Offline ads

• Basic information of products: model, price, appearance, key functions

• Promotion information • Comparison of competing

products, e.g. performance

• Product’s key selling points to specific targets

• Products’ design, materials, actual size (in-store experience)

• Using performance-functions (in-store experience)

• detail-comparison among competing products

Creativity；trendy; more interaction with consumers; efficiency on building on sales increase in short term

Credibility；build long term relationship with consumers, and brand image

Mobile Paired with Other Media

31

Mobile most frequently used in conjunction with other media. Information seeking; other forms of media encourage user-directed brand contact (from mobile device).

Mobile advertising offers connectivity to other brand channels

32

12%

15%

16%

16%

16%

17%

19%

24%

25%

32%

40%

42%

SENT THE AD TO A FRIEND

POSTED THE AD ON MY BLOG/PROFILE

SENT A MESSAGE OR A COMMENT TO THE BRAND

SEARCHED FOR MORE ADS FROM THE SAME BRAND

RECOMMENDED THE BRAND TO FRIENDS/FAMILY

PURCHASED THE BRAND

DOWNLOADED THE BRAND'S MOBILE APP

VISITED A SITE FOR A SIMILAR BRAND

CLICKED ON OR INTERACTED WITH THE AD

LOOKED FOR THE BRAND IN A STORE

VISITED THE BRAND'S WEBSITE

SEARCHED FOR MORE ADS FROM THE SAME BRAND

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


Understanding which other media can best drive users to mobile

33

33% 44%

Visit Brand’s Mobile website

Recommendation

Retail (online) 34% 38% 37%

34% 40%

29% 46%

Billboard

Radio Ad

Facebook/

Twitter Feed

Online Ad

Show or Event

% to mobile

website

% to mobile

search

Retail (offline) 33%

34% 42%

TV Ad

Conduct a search for the brand on a mobile

Print Ad


41%

38%

37%

% to mobile

website

% to mobile

search

31%

32%

29%

30% 41%

34

Case Study: Mobile Search Connection to Mobile Website

• What it is, how it works

• eLong is a famous online hotel booking website in China

• As a result of typing “book hotel” in Baidu search (biggest search engine in China), a link was provided at the top of the search result

• Consumers were directed to eLong’s mobile website upon clicking on the link

• Why it works

• The mobile website is easy to find (the first website to appear in the search result)

• Discount information is provided in the eLong search link (the Mandarin communicates: book hotels, eLong offers up to 80% discount)

• The mobile website does not require any personal information

• Interface is clear, concise and straightforward

• Provides a variety of functions that are related to hotel booking (i.e., hotel deals and flights)

• Very easy to download the APP from the mobile website

• The APP is free

My account

Book a flight

Hotel deals

Book a hotel

Download APP

Mandarin: “book hotels, eLong offers up to 80% discount”

Remember, advertising does not target a device, but targets a meaningful individual

35

Who’s up for a movie?

When and Where to watch it?

Buy tickets in advance

Weibo about your thoughts Let’s eat!

Watch the movie

Check in at theater

Check the weather before going

W A T C H I N G A M O V I E - A C O N S U M E R J O U R N E Y

Rate and discuss about the movie

36

Mobile

BEST PRACTICES

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

services or features for your mobile devices?

Mobile users want to see more from online shopping websites and restaurants


Local Restaurants 45%

19%

25%

28%

29%

29%

32%

32%

33%

34%

35%

39%

40%

43%

45%

57%

SPORTS TEAMS/LEAGUES

DRINK PRODUCTS/BRANDS

AIRLINES

AUTOMOTIVE COMPANIES

TECHNOLOGY COMPANIES

HOTELS

FOOD PRODUCTS/BRANDS

RETAIL STORES

FASHION/DESIGNERS

NEWSPAPERS OR MAGAZINES

TELECOMMUNICATION COMPANIES

QUICK SERVICE RESTAURANTS

BANKS/FINANCIAL SERVICES

LOCAL RESTAURANTS

ONLINE SHOPPING SITES

Online Shopping Sites 57%

Banks/Finance Services 43%

Tailored deals and LBS targeting are crucial to improve consumers opinion of a brand


27%

27%

33%

34%

37%

37%

39%

39%

41%

48%

48%

THEY SEND ME KAIXIN/RENREN/WEIBO WITH LINKS THAT WORK ON MY MOBILE DEVICE

THEIR WEBSITE WORKS WELL ON MY IPHONE/IPAD, NO FLASH CONTENT

THEY GIVE ME ACCESS TO FREE TOOLS (LIKE ORGANIZERS, CALENDARS OR LISTSRELATED TO THE ADVERTISED BRAND (E.G. SHOPPING LISTS, REMINDERS)

THEIR MOBILE WEBSITE MAKES IT EASY TO DOWNLOAD THEIR APP

THEY OFFER AN APP FOR MY MOBILE DEVICE

THEY HAVE A GOOD MOBILE WEBSITE

THEY LET ME DO SOMETHING ENTERTAINING LIKE PLAY A BRANDED GAME OR LISTEN TOA FREE SONG

THEY SEND THE LATEST BREAKING PRODUCT NEWS

THEY SEND OR DISPLAY INFORMATION TAILORED TO MY INTERESTS (LIKE RECIPES ORSPORTS SCORES)

THEY SEND OR DISPLAY INFORMATION SPECIFIC TO MY GEOGRAPHICAL LOCATION (LIKELOCATIONS OF STORES, PROMOTIONS)

THEY SEND OR DISPLAY DEALS OR COUPONS

QUESTION: When using your mobile phone or tablet, which of the following can improve

your opinion of a brand?

Especially for 45+ y.o

users: 61%

Especially for 45+ y.o

users: 51%

Intrusion most damages opinions of a brand


30%

30%

32%

36%

37%

43%

44%

58%

THEY DON'T HAVE A MOBILE OPTIMIZED WEBSITE

THEY SEND ME KAIXIN/RENREN/WEIBO POSTS WITH LINKS THAT DON’T WORK ON MY MOBILE DEVICE

THE FLASH CONTENT ON THEIR WEBSITE DOESN'T WORK ON MYIPHONE/IPAD

THEY DON'T OFFER AN APP FOR MY MOBILE DEVICE

THEY SEND ME MORE ADS OR POSTS THAN I'M NOT INTERESTED INRECEIVING

THE APP IS TOO SLOW OR DOESN'T WORK PROPERLY ON MY DEVICE

THEIR MOBILE WEBSITE KEEPS PROMOTING THEIR APP, BUT I DON'TWANT TO DOWNLOAD THE APP

THEY ASK ME FOR TOO MUCH PERSONAL INFORMATION BEFOREACCESSING A TOOL OR APPLICATION

THEY DON'T PROVIDE ME A WAY TO OPT-OUT OF ADS

QUESTION: When using your mobile phone or tablet, which of the following can damage

your opinion of a brand?

Deals and coupons or tailored information are highly valued


QUESTION: Which of the following things would you like to see brands delivering to your

mobile device?

64%

53%

53%

51%

50%

48%

GETTING DEALS OR COUPONS

GETTING INFORMATION TAILORED TO MY INTERESTS (LIKERECIPES OR SPORTS SCORES)

HAVING ACCESS TO FREE TOOLS (LIKE ORGANIZERS,CALENDARS OR LISTS RELATED TO THE ADVERTISED

BRAND (E.G. SHOPPING LISTS, REMINDERS)

BEING ABLE TO DO SOMETHING ENTERTAINING LIKE PLAY ABRANDED GAME OR LISTEN TO A FREE SONG

LATEST BREAKING PRODUCT NEWS

GETTING INFORMATION SPECIFIC TO MY GEOGRAPHICALLOCATION (LIKE LOCATIONS OF STORES, PROMOTIONS)

Especially for female

users: 73%

Ease of access and visitation considered biggest advantages of applications


QUESTION: What are the biggest advantages of apps?

30%

33%

34%

38%

44%

45%

47%

I CAN ACCESS AN APP DIRECTLY RATHER THAN HAVING TO NAVIGATE

THROUGH A BROWSER

IT IS EASIER TO VISIT AN APP ON A REGULAR BASIS THAN A MOBILE

WEBSITE

DISPLAY OF CONTENT FROM APPS IS BETTER THAN FROM A WEBSITE

APPS HAVE BETTER CONTENT THAN WEBSITES

I CAN DO THINGS WITH AN APP THAT CAN'T BE DONE ON A WEBSITE

APPS ARE BETTER FOR GAMING

APPS DON'T NEED AN Internet CONNECTION

For tablet users, ease of access and display of content considered biggest advantages of applications

Sample: tablet users 42

QUESTION: What are the biggest advantages of apps?

32%

36%

38%

43%

46%

48%

50% IT IS EASIER TO VISIT AN APP ON A REGULAR BASIS THAN A MOBILE WEBSITE

DISPLAY OF CONTENT FROM APPS IS BETTER THAN FROM A WEBSITE

I CAN ACCESS AN APP DIRECTLY RATHER THAN HAVING TO NAVIGATE

THROUGH A BROWSER

APPS HAVE BETTER CONTENT THAN WEBSITES

I CAN DO THINGS WITH AN APP THAT CAN'T BE DONE ON A WEBSITE

APPS ARE BETTER FOR GAMING

APPS DON'T NEED AN Internet CONNECTION

• What it is, how it works • Doujiao APP provides a variety of deals and coupons spanning from restaurants, hotels, movies,

shopping, photographing to beauty

• Why it works • The store list is comprehensive

• The APP has LBS (Location Based Service) feature that displays deals and coupons information specific to user’s geographic location

• The APP can be tailored to user’s interests by customizing the search interface (e.g., by category, by distance, by rating, by price..etc)

• The APP does not require any personal information

• The APP is Free

43

Customize your search Display search results

Group deals available

Coupons available

Discount available

if users have

membership for the

specific store

Case Study: Doujiao APP

Biggest disadvantages of applications are cost and advertisement intrusion

44

QUESTION: What are the biggest disadvantages of apps?

I’M AFRAID THAT IF I USE AN APP WITH ADVERTISING, MY MOBILE DEVICE

WILL BE BOMBARDED WITH ADVERTISING

I DON'T LIKE PAYING FOR APPS AND OFTEN, EVEN THE FREE ONES COST

MONEY FOR THE FULL VERSIONS

APPS DRAIN MY MOBILE DEVICE'S BATTERY LIFE

APPS TAKE TOO LONG TO LOAD OR NAVIGATE

THE PROCESS OF FINDING AND DOWNLOADING APPS IS JUST TOO

CONFUSING

APPS TOO OFTEN CRASH MY MOBILE DEVICE

APPS ALWAYS SEEM TO WANT MORE INFORMATION THAN I'M WILLING TO

SHARE (E.G. MY LOCATION; MY REVIEWS; MY CONTACT LIST)

I CAN DO ON A LAPTOP OR DESKTOP WHAT I'D DO WITH AN APP, BUT MORE

EFFICIENTLY

I DON'T FIND APPS TO BE USEFUL


7%

18%

23%

25%

25%

27%

33%

41%

42%

Case Study: In-APP Advertising

45

• What it is, how it works • In-APP ads appear when users use the

APP. The ad directs users to the advertised brand’s mobile website once clicked on the ad

• Why it works • Forces consumers exposure, awareness of

the brand may increase

• Why it works less • Does not respect consumer’s mindset–

does not provide a way to opt-out the ad unless users pay for the APP

• Might damage users opinion of the APP and the advertised brand if users felt annoyed or disturbed by the ad

Ease of acquisition and technical competence keys to a good application


25%

26%

26%

28%

30%

32%

34%

36%

38%

44%

49%

49%

55%

IT OFFERS DIFFERENT FEATURES THAN THE BRAND'S REGULAR DESKTOP WEBSITE

IT LOOKS BETTER THAN THE BRAND'S REGULAR DESKTOP WEBSITE

IT INCLUDES LOCATION BASED FEATURES

IT IS MORE FUN THAN THE BRAND'S REGULAR DESKTOP WEBSITE

IT HAS A CLEAR AND COMPREHENSIVE DESCRIPTION IN THE APP STORE

IT IS EASIER TO USE THAN THE BRAND'S REGULAR DESKTOP WEBSITE

IT IS EASY TO FIND IN MY DEVICE'S APP STORE

IT IS EASY TO FIND ON THE BRAND'S WEBSITE

WHEN THERE ARE UPDATES AVAILABLE, IT CLEARLY EXPLAINS WHAT HAS BEEN UPDATED

IT IS QUICK TO DOWNLOAD

IT DOESN'T BUG ME FOR A RATING TOO OFTEN

IT DOESN'T CRASH

IT IS FREE TO DOWNLOAD

QUESTION: What makes a good APP?

Speed and display are critical to good mobile websites


30%

32%

37%

41%

43%

44%

51%

61%

IT INCLUDES LOCATION BASED FEATURES

IT IS MORE FUN THAN THE BRAND'S REGULAR DESKTOP WEBSITE

IT LOOKS BETTER THAN THE BRAND'S REGULAR DESKTOPWEBSITE

IT OFFERS DIFFERENT FEATURES TO THE BRAND'S REGULARDESKTOP WEBSITE

IT DISPLAYS CLEARLY ON MY MOBILE DEVICE

IT IS EASIER TO USE THAN THE BRAND'S REGULAR DESKTOPWEBSITE

IT IS EASY TO FIND VIA MOBILE SEARCH

IT LOADS QUICKLY

QUESTION: What makes a good mobile website?

Do’s: increasing brand equity through successful mobile execution

48

BE SIMPLE

Ease of access and clear display content are fundamental to good apps and mobile websites

BE FLEXIBLE

There is flexibility between ads and apps. Consumers like apps with ads when they are free and are also willing to pay for them as long as there are no ads.

BE RELEVANT Provide useful and relevant content tailored to consumers’ interest and location

BE

QUICK AND

EASY TO FIND

Key to successful mobile websites is that it loads quickly and is easy to find via mobile search

BE INVOLVING Engage consumers with entertainment and interactivity.

Don nots: mobile executions that damage brand equity

49

DON’T BE INTRUSIVE

Don’t bombard users with advertising and offer them a way to opt-out the ad

DON’T ASK TOO MUCH

Consumers are not favorable to apps and mobile website that ask too much personal information

DON’T SELL

TOO HARD

Avoid prompting consumers to download your product too often! Try to provide a REASON for them to do so

DON’T LOAD TOO LONG Apps and mobile websites’ technology must not be too demanding of devices

50

BEST PRACTICES

Mobile Creative

Creative matters more than ever: Large variation in the best and worst performing advertising

51

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

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

What bests differentiate the best and the worst mobile creative?

52

Encourage Interactivity and Engagement are Advantageous for Mobile Campaigns

Greet Consumers with Impactful Design Visuals 1

2

3 Consistently Highlighting Your Brand in Mobile Campaigns Can Help Build Brand Awareness

5 Respect Consumers’ Mindset

4 Keep Your Messaging Concise and Easy to Understand

Learning 1: Greet consumers with appealing creative design…

53

General rules of thumb: • More visuals, less text Try to use more pictures and less text to catch users attention • Bright colors Overall design of mobile ads should use bright colors which can easily

standout and attract attention • Tidy layout The layout of mobile ads should be balanced, tidy, easy to read

Avoid using poor creative design

54 54

Make sure creative do NOT include the following elements • Ineffective images : low image quality, rigid and not funny • Complex text design: too many, tiny words, feels crowded • Overall layout is disorder

Low image quality Poor overall layout

Too many words/info The image is too stiff, not

appealing

Learning 2: Strong call-to-action is advantageous for mobile campaigns

55 55

Clear and strong call-to-action messaging can encourage interaction and engagement, ensure promotions are prominent particularly at ‘sales season’ e.g. National Holiday Week, Chinese New Year

Learning 3: Highlight brand consistently can help to build brand awareness

Make sure prominent and consistent branding on all frames of advertising rotation exist. Do not assume consumers will view the entire advertising frame rotation.

This particular mobile advertisement performed well in the first four frames with prominent brand logos and clear messaging. However, the brand and message are cluttered in the last frame. Consumers seeing only the final frame are unable to connect to the brand easily.

Learning 4: Keep the message concise and easy to understand

57

The theme is not clear, it is a

rental advertising but like a mobile phone advertising.

Ad on mobile app

Banner ad on mobile website

Too many wordings in untidy layout

Avoid cluttered text and make sure your message is concise and easy to understand

In this McDonald’s campaign, the message is clear; consumers immediately understand the McDonald’s promotion

Learning 5: Respect the consumer mindset

58 58

“The voiceover came out of nowhere without permission, making me very uncomfortable”

Video ad on ipad

Ads on mobile website

Overt sexual imagery Sexual innuendo

Some mobile advertisement use overt sexual imagery and innuendo to attract consumers’ attention. Some advertising automatically plays voiceover and music. Both potentially create unfavorable distractions.

Learning 5: Respect the consumer mindset

59

When playing games on mobile, in application advertising can be overly disruptive, taking over full screen or easily activated by touch-sensors. These formats can be considered invasive and disturbing.

60

The RESPECT Model

Keys to Successful Engagement in the

Mobile Space

Respect in Detail

61

R elevance Target as tightly and appropriately as possible. Design

with the core target and primary use in mind

E ngagement Respect consumers’ mindset. Provide a reason for them

to stay and reuse. Don’t be too invasive

S urprise & Delight Greet consumers with appealing visuals. People want a

companion in their pocket, not a bully. Aim to put a

smile on their face with every mobile connection

P lay to strengths Feed app-craving; understand which other media in the

mix can get you downloaded

E xchange If you can, be free. Don’t ask for too much personal

information up-front. Leave the user in control

C ompetence Ease of use is key; be very clear, functional and focused

T ime & Place Tailor content and deals to when and where they are

most likely to be consumed

62

R E S P E C T R

ele

va

nc

e

En

ga

ge

me

nt

Su

rpri

se a

nd

De

lig

ht

Pla

y t

o S

tre

ng

ths

Ex

ch

an

ge

Co

mp

ete

nc

e

Tim

e a

nd

Pla

ce

Respect for the Platform Respect for the Audience

63

APPENDIX

Sample composition

64

MOBILE (SMARTPHONE/TABLET USERS)

Male 56%

Female 44%

10-19 28%

20-29 30%

30-39 26%

40+ 16%

West 17%

East 17%

North 26%

South 22%

Central 18%

I am employed full-time 57%

I am employed part-time 8%

I am looking for work 3%

I am self-employed 4%

I am a full-time parent or caretaker 2%

I am a student 24%

BASE: (600)

Android is the most prevalent smartphone OS, followed by iPhone

65

58%

Android

7%

Windows Phone

Other smartphone:16%; Simple Phone (not smartphone):12%

QUESTION: What type(s) of mobile phone do you currently use?

5%

Blackberry

30%

iPhone

Especially 25-

34 yo: 44%

Also among the tablets, iPad is the dominant OS

66

10%

Kindle Fire

60%

iPad

38%

Android Tablets

QUESTION: What, if any, tablet(s) do you currently use?

Other tablet: 2%; No tablet used: 58%

Especially 25-34 yo:

74% Especially 18-24 yo:

50%

Documents

AdReaction 2012 CHINA · navigating the MOBILE LANDSCAPE 2012 This year, our study focuses on mobile advertising. With ... must understand the role that mobile can and should play