April SMoX Standard Presentation

Proving the Value of MobileAnswering the question for the first time ever, what is real value of mobile in

marketing based on empirical research

.Empirical Data from Coca Cola, AT&T, MasterCard and WalmartApril 2015

Greg Stuart

CEO

Mobile Marketing Association

MMA Membership800+ Marketers, Agencies, Media Sellers, Tech, Operators Globally

http://www.velti.com/

http://www.velti.com/

John Costello

President, Global

Mktg& Innovation

Dunkin’ Brands

Jack Philbin

Co-Founder,

President & CEO

Vibes

Carolyn Everson

VP Global Mktg.

Solutions

Facebook

Brett Caine

President & CEO

Urban Airship

Peter Kuipers

SVP & CFO

Quantcast

Alex Moukas

CEO & Founder

Velti

Cameron Clayton

President, Digital

Group

The Weather Co.

Mike Baker

CEO & President

DataXu

B. Bonin Bough

VP, Global Media &

Consumer

Engagement

Mondelēz Int’l

Tom Daly

Group Dir., Global

Connections

The Coca-Cola Co.

Luis Di Como

SVP Global Media

Unilever

Jack Haber

VP Global Advertising

& Digital

Colgate-Palmolive

Peter Hamilton

CEO,

TUNE

John Kosner

EVP Digital & Print

Media

ESPN

Ilonka Laviz

Global Digital Mktg.

Dir. Global eBusiness

Procter & Gamble

Neal Mohan

VP, Display Adv.

Products

Google

Dipanshu Sharma

Founder & CEO

xAd

John Trimble

CRO

Pandora

Wanda Young

VP, Media & Digital

Marketing

Walmart

2015 MMA Global Board of Directors

4/17/2015 Proprietary & Confidential 3

Curt Hecht

Global CRO

The Weather Co.

Amit Gupta

Co-Founder &

President U.S.

InMobi

Do you see it? Can you act on it?

Consumer’s have changed their Media behavior, have you changed your Marketing plans to keep pace

4

Mobile is the Greatest (Universal)

Transformation in Consumer Behavior

150x

Times we

check our

phone a day

5.3B

Total phone subs

worldwide

(25+%

Smartphone)

59%

U.S.

Smartphone

penetration

(2014)

80%

Never leave

home without

a phone

What Other Media Gets This Kind of

Commitment?

10Min

18-24 year olds check their

phones every 10 minutes

on average

75%

Americans admit to using phone

while in bathroom

65%

Parents believe their devices make them

better parents

68%

Place their mobile device next to bed while sleeping at

night

Or this Kind of Commitment !?!?

There is a role for Mobile, given that…

Mobile is the

Closest You Can

Get to Your Consumer!

That USP is supported by elements of value

Personalization Pervasiveness Proximity

Mobile has many unique attributes

10

$kDollars

$MDollars

$BDollars

Truth is…until today, We didn’t know what is

the [real] value of mobile?

What is the value of mobile to your Business?

Can mobile help me meet my marketing goals?

What is the optimal mobile allocation for my campaign?

How can I make my mobile investment work harder?

Revolutionary Channel needed a Revolutionary

Approach.

SMoX.me = Smart Mobile Cross Marketing Effectiveness Studies

Why SMOX is important/revolutionary

$2 million,20 companies,

3 Trade Groups, 7 major marketers

Global Perspective:• 5 studies so far

• 10 more coming

• Real in-market testing

• Versus entire mix (not just mobile)

14 5

Leveraging Mobile ad tech to target DID

Individual Level data for cross media exposure

Experimental Design for media allocation

Track multiple KPIs, perceptual or behavioral

Regression analysis to identify drivers

Budget Optimization Software to operationalize insights

2

36

Integrated Partners target DID of panelists

500K

Mobilepanel of

InsightExpress

checks for cross

over in panel and

sends list of

panelists back to

Networks

Ads, tagged by

InsightExpress,

are targeted to

panelist devices

Assess multiple

scenarios of cross

media exposure

and frequency

Brand KPIs

/attitudinal with

Surveys

Foot traffic

with actual

location data

Actual sales with

panel match

How it works: Thank you to Marketing

Evolution & Insights Express

Thank you to these Innovation Leaders

Supporters Partners

Association of National Advertisers

American Association of Advertising Agencies

The campaigns we tested cover the entire

purchase funnel

Awareness

Image

Purchase Intent

Foot Traffic

Sales


Can mobile help me better meet my marketing goals?



How many people can you convert with mobile?

?

Campaign Average Mobile

1. AT&T wanted to build AWARENESS

for the new moto X

Image

PurchaseIntent

FootTraffic

Sales

Awareness

TV PRINT

MOBILE DIGITAL

Mobile Delivered almost twice the Awareness

/Dollar vs.. other mediaTotal People converted with mobile vs.

campaign on averageDevice Awareness

AT&T Campaign on average

Mobile

1 1.9

x 1.9

Image

PurchaseIntent

FootTraffic

Sales

Awareness

2. MasterCard wanted to increase

association with Travel

PurchaseIntent

FootTraffic

Sales

Awareness

TV

SOCIAL

PRINT

DIGITAL/MEDIA

Image

Mobile Delivered almost twice the

Image /Dollar vs.. other media

“Good Card To Carry When Traveling”

MasterCard Campaign on average

Mobile

1 1.7

x 1.7

Total People converted with mobile vs. campaign on average

PurchaseIntent

FootTraffic

Sales

Awareness

Image

3. Walmart wanted to drive Intent for

Back to School grocery

FootTraffic

Sales

Awareness

TV

MOBILE

Image

PurchaseIntent

24

DIGITAL

Mobile Delivered almost twice the

Purchase Intent /Dollar vs...other media

WalmartCampaign on average

Mobile

x 1.91.91

“Intent to Shop Back to School Grocery”


FootTraffic

Sales

Awareness

Image

PurchaseIntent

4. Coca Cola launched a campaign to

support it’s growth strategy for Gold Peak

FootTraffic

Awareness

Image

PurchaseIntent

TV PRINT

DIGITAL/MEDIA

OOH

Sales

Mobile worked harder than its share

and drove results across the BoardSales

of sales6%


Gold Peak Campaignon average

Mobile

Top of MindAwareness

HomeBrewed Taste

Gold Peak Campaignon average

Mobile

4.81 1.81

FootTraffic

Awareness

Image

PurchaseIntent

Sales

of budget5%

Well, can mobile help me meet

my marketing goals?

YES. Mobile drives results across

the entire purchase funnel





Our empirical data suggest that based on its

impact mobile should be 8%-16% of the mix

Image

PurchaseIntent

FootTraffic

Sales

AwarenessMobile Optimized %

8% 10% 10% 16%

But what is the REAL business value of those allocations?

Reallocation to mobile would bring double

digit lift in awareness

Or convert entire city of Chicago to be aware

+12%Increase in Awareness

Reallocation to mobile would change

perceptions for nesters/empty nesters

Or convince enough empty/nesters to fill all the

Hotel rooms in Greece

+7%Increase in Image

Reallocation to mobile would bring double

digit lift in Intent

or cover all the schools in NJ with back to

school supplies

+15%Increase Purchase Intent

Reallocation to mobile would increase actual

sales by 4%

enough bottles to pave the way to Toronto

+4%Sales

So what is the optimal allocation

for mobile in the mix?

DOUBLE DIGITAim for a

Mobile allocation in your total marketing mix

slide titleI Get It. Change is Hard

Key Questions




4 ways to make mobile work harder

Format Location Time of Day Creative

Net, there are a lot of options to improve Mobile

1. Optimize by Format


Mobile Video improved results for Coke.

Price

Better

ROI!

Effectiveness at

low Frequency

Mobile Video

Mobile Display

320

100 100

650

Effectiveness at

High Frequency

350

Manage frequency or rotate creative

Save video creative would produce stronger

results vs.. TV with lower cost

Mobile Video

TV

40

100 100

450Better ROI!

Effectiveness at

low frequencyPrice

Mobile Native improved results for Walmart.

Price

Better

ROI!

Effectiveness at

low Frequency

Mobile Native

Mobile Display

500

100 100

1000

Effectiveness at

High Frequency

300

Manage frequency or rotate creative

2. Leverage Location Targeting


Location and format Interact:

And REALLY drive Foot Traffic

Expandable Units

Pencil Units

Reta

rgete

d

Pro

xim

ity

40%12%

No Lift 10%

3. Leverage Context Targeting


Depending on the category, Context Targeting

can add significant valueDay of the week* Time of Day**

130

100 100

1290

Weekday vs.. Weekend targeting

Time of the day targeting for industry with Strong Time of Day Dynamic

Without targeting

Withtargeting

4. Build on Creative


AB testing can significantly increase impact

+ figure out BEST practices for Creative

AB testing and

optimization

No optimization

Better Creative Relevance to Demo

100 100

170120

Optimization focus ROI Upside (based on SMoX)

1. Optimize by Format(display size, audio, video, native, social)

20%-40%

2. Leverage Location targeting(Audience, proximity targeting & role of creative)

20%+

3. Leverage Context targeting(Time of the day, day of the week)

20%+

4. Build on Creative(AB testing, relevance by target group)

40%-60%

Total 100%-160%

ROI Upside (expert opinion)

+ 80%

+120%

+ 60%

+ 200%

+ 460%

But can Mobile be made to work even

harder. But what is the opportunity?


That said, asking marketers to do mobile

marketing is like kids asking for first cell phone

Image

PurchaseIntent

FootTraffic

Sales

Awareness

+7% +15% +4%

+17% +29% +7%With Mobile Best Practices

Agreement with brand

image

Intent to shop Offline Sales

Agreement with brand

image

Intent to shop Offline Sales

+12%

+18%

Awareness

Awareness

Increase in Overall Campaign Performance

Applying the learnings: Improved Results


Image

PurchaseIntent

FootTraffic

Sales


8% 9% 10%

12% 12% 15%

Mobile Optimized With Best Practices

16%

20%

Applying the learnings: Invest more in mobile


Image

PurchaseIntent

FootTraffic

Sales


8% 9% 10%

With Best Practices & Increased Smartphone Penetration

16%

20%-30%

Increases in smartphone penetration will

further take it to a whole NEW level


Key Questions




Mobile drives results across the ENTIRE purchase funnel

Aim for a double digit mobile allocation in your total marketing mix

Optimizing your mobile investment can increase its impact by up to 160%, or more

What is the [real] value of mobile?

$1BN

1.0 1.2 1.5 1.8 2.2x1.0 2.0

8.1

20.3

32.8x

1.02.5

5.0

10.4

18.6x

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2002 2003 2004 2005 2006

X Increase in Internet Spending from BaseFor 7 Brands* that Conducted Online Studies

Industry Online Spending Avg. Brand Spend Avg. Company Spend

Historical View: What impact can SMoX have?

* 7 brands analyzedJohnson & JohnsonNestle BeverageProcter & GambleKraftFordTargetAstraZeneca


Finally, three things you can do now

[email protected]

1. Bring SMoX in-house to your marketing teams.

Are there others that should see this?

2. Join the MMA as a Member

[email protected]

And, then continue dialogue at MMA CEO & CMO

Summit (or the 17 other events, 50 webinars, etc MMA has)

July [email protected]

3. Adopt a 3-Point Plan for Change. MMA can help

[email protected]

1. Get internal agreement to change2. Set a goal!

• Make it a public event

3. Connect to mobile industry/solutions– MMA Mobile Marketing Day– MMA webinars/MMA events/education

Opportunity knocks

Opportunity Doesn’t Come Around Very Often.

There is no reason for any individual to have a computer in his home. Ken OlsonCo-founder Digital Equipment Corp.1977

“A computer on every desk and in every home”

Bill GatesFounder, Microsoft1980

Net Worth: $79.2 billion


Sometimes We See It.

“My local mall does more business in an afternoon than the entire Internet in a month? Even if there were a trustworthy way to send money over the Internet—which there isn’t—the network is missing a most essential ingredient of capitalism: salespeople.”

Clifford StollAstronomer & Computer expert1995

A $1,000 invested at the IPO for Amazon would be worth $240,000 today. Jeff BezosFounder, AmazonFounded 1994

Net Worth: $34.8 billion


Sometimes We See It. Sometimes We Don’t.

“Cellular phones will absolutely not replace local wire systems.”Marty CooperCell phone inventor 1981

Net Worth: $100 million

[email protected]

Mobile Marketing AssociationHere to lead the greatest transformation in marketing we’ll see in our generation

Thank You!

Seizing the Mobile Opportunity