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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
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MMA Membership800+ Marketers, Agencies, Media Sellers, Tech, Operators Globally
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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
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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
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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
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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
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Or this Kind of Commitment !?!?
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There is a role for Mobile, given that…
Mobile is the
Closest You Can
Get to Your Consumer!
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That USP is supported by elements of value
Personalization Pervasiveness Proximity
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Mobile has many unique attributes
10
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$kDollars
$MDollars
$BDollars
Truth is…until today, We didn’t know what is
the [real] value of mobile?
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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?
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Revolutionary Channel needed a Revolutionary
Approach.
SMoX.me = Smart Mobile Cross Marketing Effectiveness Studies
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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)
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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
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Thank you to these Innovation Leaders
Supporters Partners
Association of National Advertisers
American Association of Advertising Agencies
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The campaigns we tested cover the entire
purchase funnel
Awareness
Image
Purchase Intent
Foot Traffic
Sales
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What is the value of mobile to your Business?
Can mobile help me better meet my marketing goals?
What is the optimal mobile allocation for my campaign?
How can I make my mobile investment work harder?
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How many people can you convert with mobile?
?
Campaign Average Mobile
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1. AT&T wanted to build AWARENESS
for the new moto X
Image
PurchaseIntent
FootTraffic
Sales
Awareness
TV PRINT
MOBILE DIGITAL
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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
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2. MasterCard wanted to increase
association with Travel
PurchaseIntent
FootTraffic
Sales
Awareness
TV
SOCIAL
PRINT
DIGITAL/MEDIA
Image
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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
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3. Walmart wanted to drive Intent for
Back to School grocery
FootTraffic
Sales
Awareness
TV
MOBILE
Image
PurchaseIntent
24
DIGITAL
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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”
Total People converted with mobile vs. campaign on average
FootTraffic
Sales
Awareness
Image
PurchaseIntent
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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
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Mobile worked harder than its share
and drove results across the BoardSales
of sales6%
Total People converted with mobile vs. campaign on average
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%
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Well, can mobile help me meet
my marketing goals?
YES. Mobile drives results across
the entire purchase funnel
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What is the value of mobile to your Business?
Can mobile help me better meet my marketing goals?
What is the optimal mobile allocation for my campaign?
How can I make my mobile investment work harder?
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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%
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But what is the REAL business value of those allocations?
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Reallocation to mobile would bring double
digit lift in awareness
Or convert entire city of Chicago to be aware
+12%Increase in Awareness
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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
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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
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Reallocation to mobile would increase actual
sales by 4%
enough bottles to pave the way to Toronto
+4%Sales
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So what is the optimal allocation
for mobile in the mix?
DOUBLE DIGITAim for a
Mobile allocation in your total marketing mix
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slide titleI Get It. Change is Hard
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Key Questions
Can mobile help me better meet my marketing goals?
What is the optimal mobile allocation for my campaign?
How can I make my mobile investment work harder?
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4 ways to make mobile work harder
Format Location Time of Day Creative
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Net, there are a lot of options to improve Mobile
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1. Optimize by Format
Format Location Time of Day Creative
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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
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Save video creative would produce stronger
results vs.. TV with lower cost
Mobile Video
TV
40
100 100
450Better ROI!
Effectiveness at
low frequencyPrice
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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
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2. Leverage Location Targeting
Format Location Time of Day Creative
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Location and format Interact:
And REALLY drive Foot Traffic
Expandable Units
Pencil Units
Reta
rgete
d
Pro
xim
ity
40%12%
No Lift 10%
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3. Leverage Context Targeting
Format Location Time of Day Creative
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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
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4. Build on Creative
Format Location Time of Day Creative
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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
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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?
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That said, asking marketers to do mobile
marketing is like kids asking for first cell phone
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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
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Image
PurchaseIntent
FootTraffic
Sales
AwarenessMobile Optimized %
8% 9% 10%
12% 12% 15%
Mobile Optimized With Best Practices
16%
20%
Applying the learnings: Invest more in mobile
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Image
PurchaseIntent
FootTraffic
Sales
AwarenessMobile Optimized %
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
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Key Questions
Can mobile help me better meet my marketing goals?
What is the optimal mobile allocation for my campaign?
How can I make my mobile investment work harder?
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
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What is the [real] value of mobile?
$1BN
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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
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Finally, three things you can do now
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[email protected]
1. Bring SMoX in-house to your marketing teams.
Are there others that should see this?
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2. Join the MMA as a Member
[email protected]
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And, then continue dialogue at MMA CEO & CMO
Summit (or the 17 other events, 50 webinars, etc MMA has)
July [email protected]
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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
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Opportunity knocks
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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
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Opportunity Doesn’t Come Around Very Often.
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
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Opportunity Doesn’t Come Around Very Often.
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
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[email protected]
Mobile Marketing AssociationHere to lead the greatest transformation in marketing we’ll see in our generation
Thank You!
Seizing the Mobile Opportunity