adreaction 2012: navigating the mobile landscape

AdReaction 2012 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

U K

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 elucidated that we

are untethering and becoming 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.

AdReaction Research Design

3

The design consisted of 2 components:

Respondents were recruited between August 2, 2012 – August 6, 2012

AdReaction

ONLINE n=100

Who: Gen Pop. Online Audience

What: Mobile usage levels &

attitudes towards ads

How: Online interviewing

AdReaction

MOBILE n=400

Who: Smartphone and/or Tablet Users

(94% smartphone, 38% tablet)

What: Deep dive into mobile advertising

attitudes


AdReaction 2012 O V E R V I E W

4

KEY FINDING 2

HYPOTHESIS: Mobile Usage is

significant and increasing but mobile

attitudes are mixed. There can’t be one

monolithic mobile strategy.

KEY FINDING 3

HYPOTHESIS: Some types of

mobile ads, very negative

impression (i.e. display/text)

mobile ads that have more

traction are: tailored and localized.

KEY FINDING 4

HYPOTHESIS: Apps on mobiles

have good potential, but usability

is key to success.

KEY FINDING 5

Freebies and coupons are still key

drivers of brand perception.

KEY FINDING 1

Broader changes in perception of mobile

advertising.

2012 ATTITUDES

Towards Mobile Ad Formats

6

AdReaction

ONLINE n=100

Who: Gen Pop. Online Audience

What: Mobile usage levels & attitudes

towards ad formats


Consumers are still more favorable towards offline media ads.

Acceptance of online media has been growing since 2007 though.

Comparing changes in attitudes towards ad formats between 2009 & 2012

7

2009

Online ads have massively increased in consumers

favorability, now catching up to offline media, while

favorability of TV has significantly decreased. 2012

Key Findings: Attitudes to Offline Advertising 2009 v. 2012

8

2009 2012

DIFFERENCES IN

USAGE

• 89% spend more than 5 hours a

week watching TV

• 94% spend more than 5 hours a

week in the internet

• Usage of offline media has

significantly decreased with TV

most drastically, only 44% watch

more than 5 hours a week

• Internet usage remains on same

high level

DIFFERENCE IN

ATTITUDES

TOWARDS OFFLINE

• TV showed highest favorability

• Billboard had second highest

acceptance

• Acceptance of TV advertising has

increased

• Favorability of billboard

advertising has declined the most

DIFFERENCES IN

ATTITUDES

TOWARDS ONLINE

• Favorability of online ads has already

increased from 2007

• Ads on Mobile devices have

more than doubled in favorability

3%

2%

3%

5%

8%

5%

4%

12%

15%

14%

14%

24%

27%

30%

19%

21%

30%

32%

37%

41%

32%

17%

22%

20%

20%

15%

12%

22%

46%

31%

23%

21%

10%

13%

10% ONLINE ADS

+10

OPT-IN EMAIL ADS

+4

ONLINE SEARCH ADS

+11

ONLINE ADS W/VIDEO

+2

ADVERGAMES

+7

ADS ON

MOBILE DEVICES

+12

NON-OPT-IN EMAILS

+10 64%

35%

21%

16%

11%

13%

11%

13%

28%

19%

25%

21%

14%

18%

16%

24%

39%

39%

43%

41%

45%

4%

4%

7%

15%

15%

24%

21%

1%

2%

3%

3%

7%

5%

3%

AdReaction: Online Formats

9

NEGATIVE NEUTRAL FAVORABLE

2009 2012 FAVORABLE NEUTRAL NEGATIVE

Sample: online users

3%

8%

6%

6%

12%

10%

10%

10%

19%

12%

16%

23%

28%

24%

29%

30%

36%

36%

19%

31%

42%

43%

42%

47%

45%

39%

26%

20%

19%

14%

12%

6%

6%

7%

6%

11%

43%

23%

14%

9%

8%

5%

5%

5%

6% TV ADS

+10

NEWSPAPER ADS

+5

MAGAZINE ADS

-3

BILLBOARD ADS

-6

CINEMA ADS

-3

RADIO ADS

+3

PRODUCT

PLACEMENTS

+8

DIRECT MAIL

+9

TELEMARKETING

+11 60%

36%

10%

9%

7%

3%

2%

1%

5%

12%

22%

19%

17%

14%

4%

9%

7%

13%

20%

25%

48%

40%

37%

46%

44%

49%

36%

2%

11%

17%

25%

31%

39%

35%

35%

35%

2%

4%

4%

6%

8%

6%

8%

6%

10%

AdReaction: Offline Formats

10

NEGATIVE NEUTRAL FAVOARABLE

2009 2012 FAVORABLE NEUTRAL NEGATIVE


3%

4%

4%

6%

4%

12%

13%

14%

16%

31%

23%

25%

39%

37%

32%

18%

27%

13%

12%

19%

27%

23%

20%

17%

11% LOCALIZED OR TAILORED

DEALS

NEWSFEED POSTS

ADS ON SOCIAL MEDIA

ADS ON MUSIC PLAYERS

ADS ON TABLETS

AdReaction: Emerging online ads already show promising favorability

11

FAVORABLE NEUTRAL NEGATIVE


12

AdReaction

MOBILE n=400

Who: Smartphone and/or Tablet Users

- 94% smartphone owners

- 48% tablet owners

What: Deep dive into mobile advertising

attitudes


13

BEHAVIOR

MOBILE

a n d

attitudes

Online usage on mobile devices has picked up to same level as traditional phone usage

Sample: smartphone users 14

QUESTION: In a typical week, how many hours do you spend….

15%

14%

14%

13%

12%

12%

11%

9%

Share of smartphone time spent

Using a mobile phone to surf the webor email

Using a mobile phone to make phonecalls

Using a mobile phone to read or sendtexts

Using apps on a mobile phone

Using a mobile phone for socialnetworking (e.g. Facebook, Twitter)

Listening to music on a mobile phone

Playing games on a mobile phone

Watching video on a mobile phone

Tablets are mostly used for surfing the web

Sample: tablet users 15

QUESTION: In a typical week, how many hours do you spend….

20%

17% 17%

16%

15%

15%

Share of tablet time spent

Using a tablet to surf the web oremail

Playing games on a tablet

Using apps on a tablet

Listening to music on a tablet

Using a tablet for socialnetworking (e.g. Facebook,Twitter)Watching video on a tablet

45%

34%

7% 5%

2%

6%

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

Respondents have an average of 16 apps on their smartphones, but most are not used that frequently

16

HARDLY ANY, 47%

ABOUT HALF OF

THEM, 36%

MOST OF THEM, 13%

ALL OF THEM, 5%

Of the apps installed on your mobile phone, how

many have you used in the past 30 days?

Sample: smartphone users

31%

34%

10% 9%

1%

8%

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

17

HARDLY ANY, 33%

ABOUT HALF OF

THEM, 39%

MOST OF THEM, 14%

ALL OF THEM, 7%

Of the apps installed on your tablet, how many have

you used in the past 30 days?

Sample: tablet users

Respondents have an average of 23 apps on their tablets, these are used more frequently than on phones

Ease of access and visitation considered biggest advantages of apps

Sample: smartphone or tablet users 18

QUESTION: What are the biggest advantages of apps?

22%

14%

20%

43%

50%

26%

0% 10% 20% 30% 40% 50% 60%

Apps are better for gaming

Apps have better content than websites

Display of content from apps is better than from a website

It is easier to visit an app on a regular basis than a mobile website

I can access an app directly rather than having to navigate througha browser

I can do things with an app that can't be done on a website

Ease of access key

13%

7%

14%

18%

10%

11%

35%

26%

34%

0% 10% 20% 30% 40%

18-34

35-49

50+

Key benefits for younger consumers are the advantage against websites regarding content and display


QUESTION: What are the biggest advantages of apps?

Display of content from apps is better than from a website

Apps have better content than websites

Apps are better for gaming

Number of apps

•On mobile phone:

18-34: 19%

35-49: 16%

50+: 14%

•On mobile phone:

18-34: 22%

35-49: 24%

50+: 23%

Biggest disadvantages of apps is the drain of battery life and costs for downloading them

20

QUESTION: What are the biggest disadvantages of apps?

8%

8%

10%

11%

17%

20%

26%

34%

40%

0% 10% 20% 30% 40% 50%

Apps drain my mobile device's battery life

I don't like paying for apps and often, even the free ones cost money for the full versions

I can do on a laptop or desktop what I'd do with an app, but more efficiently

Apps always seem to want more information than I'm willing to share (e.g. my location; my reviews; my contact list)

I'm afraid that if I use an app with advertising, my mobile device will be bombarded with advertising

Apps too often crash my mobile device

Apps take too long to load or navigate

I don't find apps to be useful

The process of finding and downloading apps is just too confusing

Sample: smartphone or tablet users

Younger consumers

feel more strongly

about giving personal

information

Above the line ads are still received more positively, but user initiated online ads are well accepted

21

Smartphone Users

Smartphone + Tablet Users

Ads disturbing the entertainment

environment are ignored.

Ads on social media, while listening to

music and advergames are less liked

than among dual users.

Dual users (mainly males aged 18-

34) are more positive about ads in

general.

Newsfeed posts, Opt-in email and

localized or tailored deals are liked

most.

Attitudes towards mobile are positive as long as the content is free

22

MOBILE BENEFITS

MOBILE FLEXIBILITY

MOBILE MISGIVINGS

Free content. Both mobile websites and apps are appreciated as long as content is free.

Mobile helps efficiency as an organizing tool. Especially among 18-34 years old, the

mobile device helps to balance out the split between being on the go and organizing work

and private life, leading to higher efficiency.

Mobile Flexibility: There is some flexibility in the exchange between ads as long as content is free.


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

statements about your mobile device

6%

6%

9%

13%

9%

12%

23%

27%

25%

21%

16%

18%

11%

11%

18%

27%

31%

33%

32%

30%

39%

23%

20%

20%

22%

Strongly Agree Somewhat Agree Neither Agree Nor Disagree

Somewhat Disagree Strongly Disagree

I’m happy to pay for an app as long as there are no ads

in it

I’m happy to see ads in my apps as long as the apps

are free

I’m happy to see ads on mobile websites as long as the

websites are free to access

I’m happy to share my location to get more relevant

services and offers

I enjoy playing Advergames, games that incorporate

ads/brands

Mobile Utility: Efficiency and portability are key, but mobile devices can not yet replace a computer




Having a mobile device makes me more efficient

My mobile device is indispensable because I’m always on

the go

My mobile device is my primary tool for organizing my

personal life

An increasing amount of my work is accomplished through

my mobile device


work life


household

Now that I have my mobile device, I don’t really need a

computer 4%

7%

6%

7%

11%

12%

17%

9%

17%

20%

16%

27%

30%

35%

25%

20%

16%

20%

16%

16%

8%

17%

32%

24%

27%

26%

31%

32%

46%

24%

34%

31%

20%

12%

9%

Strongly Agree Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Strongly Disagree

Mobile Utility: Importance of efficiency and portability is driven by younger consumers




Having a mobile device makes me more efficient

My mobile device is indispensable because I’m always on

the go


personal life

An increasing amount of my work is accomplished through

my mobile device


work life


household

Now that I have my mobile device, I don’t really need a

computer 8%

12%

10%

13%

16%

16%

23%

17%

27%

34%

28%

41%

39%

42%

20%

37%

29%

26%

23%

29%

26%

25%

14%

11%

18%

11%

11%

5%

30%

10%

16%

15%

10%

5%

5%

Strongly Agree Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Strongly Disagree

Aged 18-34

Mobile Misgivings: The speed of mobile internet is still a barrier to almost half of all consumers




12%

13%

33%

20%

15%

22%

33%

30%

7%

15%

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

27

MARKETING MIX

Role of mobile

in

Mobile paired with other media

28

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

Respondents most likely to visit brand’s website or search online for a brand after seeing a mobile ad

29

4%

5%

6%

7%

7%

7%

8%

8%

9%

10%

16%

16%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

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

Downloaded the brand's mobile app

Clicked on or interacted with the ad

Sent the ad to a friend

Visited a site for a similar brand

Purchased the brand

Looked for the brand in a store

Searched for the brand on the Internet

Visited the brand's website

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

ad?

Sample: smartphone or tablet users

Younger consumers are much

more responsive to mobile ads

“Took no action”

18-34: 45%

35-50: 64%

50+: 79%

30

BEST PRACTICES

Mobile

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 retail and online shopping sites


Local Restaurants 33%

Retail 27%

Food Products 27% 1%

7%

7%

10%

13%

14%

15%

15%

16%

18%

19%

19%

20%

25%

29%

29%

OTHER

TELECOMMUNICATION COMPANIES

AUTOMOTIVE COMPANIES

FASHION/DESIGNERS

DRINK PRODUCTS/BRANDS

AIRLINES

QUICK SERVICE RESTAURANTS

BANKS/FINANCIAL SERVICES

HOTELS

SPORTS TEAMS/LEAGUES

TECHNOLOGY COMPANIES

NEWSPAPERS OR MAGAZINES

FOOD PRODUCTS/BRANDS

LOCAL RESTAURANTS

ONLINE SHOPPING SITES

RETAIL STORES

Do This: increasing brand equity through successful mobile execution

32

Add mobile to campaign

Impact of campaign can be increased by adding mobile to the multimedia campaign as it drives additional benefits

Mobile optimized

website

Particularly for young consumers, being on the go, mobile websites should be tailored to the smaller screen to ensure good brand perception

Localize and tailor Key benefit of mobile is the possibility to tailor advertising to consumers interests and locations

Not This: mobile executions that damage brand equity

33

No charge

for content

Free access to mobile apps and websites is number one expectation from consumers

No intrusion

Asking too often and for too much information may turn consumers away from using your mobile offers

No long loading time Slow mobile internet is still one of the biggest barriers to use of mobile apps and websites, make sure loading time is optimized and site can be displayed clearly

Deals and coupons are the main image drivers, good mobile access is key for younger consumers


10%

10%

13%

14%

15%

16%

17%

18%

18%

21%

28%

They send the latest breaking product news

They send me Facebook/ Twitter posts with links that work on my mobiledevice

They let me do something entertaining like play a branded game or listento a free song

They send or display information specific to my geographical location (likelocations of stores, promotions)

Their mobile website makes it easy to download their app

They send or display information tailored to my interests (like recipes orsports scores)

They give me access to free tools (like organizers, calendars or listsrelated to the advertised brand (e.g. shopping lists, reminders)

Their website works well on my iPhone/iPad, no Flash content

They offer an app for my mobile device

They have a good mobile website

They send or display deals or coupons

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

a brand?

Mobile website and app

availability is key to younger

consumers

Mobile

website App

18-34 27% 23%

35-50 22% 19%

50+ 14% 13%

Intrusion most damages opinions of a brand


14%

16%

18%

22%

33%

34%

41%

44%

45%

They don't offer an app for my mobile device

They don't have a mobile optimized website

They send me Facebook/ Twitter posts with links that don't work on my mobiledevice

The Flash content on their website doesn't work on my iPhone/iPad

Their mobile website keeps promoting their app, but I don't want to download theapp

The app is too slow or doesn't work properly on my device

They send me more ads or posts than I'm interested in receiving

They don't provide me a way to opt-out of ads

They ask me for too much personal information before accessing a tool orapplication

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

a brand?

App performance is key to

younger consumers

Too slow or doesn’t work

properly

18-34 39%

35-50 33%

50+ 29%

Deals and coupons or tailored tools or content highly valued


1%

17%

23%

28%

30%

30%

41%

Other

Being able to do something entertaining like play abranded game or listen to a free song

Latest breaking product news

Having access to free tools (like organizers, calendars orlists related to the advertised brand e.g. shopping lists,…

Getting information specific to my geographical location(like locations of stores, promotions)

Getting information tailored to my interests (like recipesor sports scores)

Getting deals or coupons

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

mobile device?

What makes a good app?


Acquisition: Quick and Easy to

Obtain

Competent: Doesn’t Crash, Fail or Overstep Boundaries

Clear: From Acquisition

through Update

17%

24%

43%

54%

It is easy to find on the brand's website

It is easy to find in my device's app store

It is quick to download

It is free to download

33%

31%

48%

54%

It doesn't bug me for a rating too often

It works for all software versions

It doesn't crash


20%

25%

30%

It is easier to use than the brand's regulardesktop website

It has a clear and comprehensivedescription in the app store

When there are updates available, it clearlyexplains what has been updated

Speed and display are keys to a good mobile website


1%

13%

13%

13%

19%

21%

31%

49%

56%

Other

It looks better than the brand's regular desktop website

It is more fun than the brand's regular desktop website

It offers different features to the brand's regular desktop website

It includes location based features

It is easier to use than the brand's regular desktop website

It is easy to find via mobile search

It displays clearly on my mobile device

It loads quickly

What makes a good mobile website?

39

BEST PRACTICES

Mobile

Application ad example – UK

40

• What it is, how it works • Use an iPhone app to amplify the Smirnoff "Be There" campaign

to the TimeOut audience, helping them to find more amazing

experiences and positioning Smirnoff as the key enabler.

• Why it works • Mass awareness about app was build in advance

• Supported by micro site

• Users can interact with the app, search for locations, bars or

places of interest – directly answering the consumers need

• App is fitted to the brand´s promise

1. Mass awareness: High Impact branding &

Driving to Microsite

2. Deeper communication of the ‘There’ messaging:

Bespoke Microsite Driving downloads

3. Downloading the app: Co-branded Smirnoff &

TimeOut iPhone application

41

Appendix

Ease of acquisition and technical competence keys to a good app


1%

10%

11%

14%

17%

17%

20%

24%

25%

30%

31%

33%

43%

48%

54%

Other

It looks better than the brand's regular desktop website

It is more fun than the brand's regular desktop website

It offers different features than the brand's regular desktop website

It includes location based features

It is easy to find on the brand's website

It is easier to use than the brand's regular desktop website

It is easy to find in my device's app store

It has a clear and comprehensive description in the app store

When there are updates available, it clearly explains what has been updated

It works for all software versions

It doesn't bug me for a rating too often

It is quick to download

It doesn't crash


What makes a good App?

Facebook Remains the Dominant Mobile Community

29.5% of sample does not participate in communities via their mobile device Sample: smartphone or tablet users

43

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

phone or tablet?

63%

29% 23%

16%

7% 6% 6% 3% 3% 2% 2% 2% 1% 1% 1% 1% 2% 0%

10%

20%

30%

40%

50%

60%

70%

Sample composition

44

ONLINE MOBILE (SMARTPHONE/TABLET USERS)

Male 51% 50%

Female 49% 50%

18-34 32% 33%

35-49 33% 34%

50+ 35% 34%

Urban - 32%

Suburban - 43%

Rural - 26%

Working Full-Time - 47%

Other - 53%

BASE: (100) (400)

adreaction 2012: navigating the mobile landscape

Business