2013CRACKING THE EMERGING

MARKETS REPORT

According to a recent report by ZenithOptimedia, the developing markets are expected to contribute 61 per cent of ad spend growth between 2012 and 2015. When digging a bit deeper, it becomes evident that mobile advertising will account for a large proportion of this spend. By 2017, we can expect to see 1.6 billion new mobile connections across the world– with Africa identified as the fastest growing region (Ovum: 2013).

Emerging markets, such as the BRIC nations (Brazil, Russia, India, China) and other countries across Asia, Eastern Europe and Africa are turning heads for a variety of reasons. Firstly, these countries are experiencing significant economic growth, accelerating at faster rates than developed markets. In line with this growth, these countries also have a stronger and more competitive corporate landscape, which is unwritten by stronger property rights and governmental policies. Such conditions have also encouraged the emergence of a wealthier middle class, who have more disposable income to spend on goods and services. Businesses are therefore recognising the window of opportunity to reach new global consumers, particularly over mobile.

Mobile devices are the most used type of device for many emerging market consumers and mobile devices are often the primary means for consumers to access the web and learn about new products and promotions. Yet, while there has been significant year on year uplift in mobile ad revenues across Latin America (71 per cent), Central Europe (69 per cent), Middle-East and Africa (68 per cent) and Asia-Pacific (60 per cent), the success of mobile ad campaigns in mature mobile markets might not translate in the same way in new regions. In fact, a considered and tailored approach to mobile campaigns from country to country is necessary.Leveraging the insights we have gained from mobile interactions from 223 million emerging market consumers across Nigeria, Brazil, Vietnam and Cameroon, our data shows that triggers for marketing responses vary greatly between consumers in each country. In fact, knowledge from our technology platform shows that the time of day, day of the week, language, message sentiment and prize can all influence these mobile users in different ways.

Our ‘Cracking the Emerging Markets Report’ has been developed to help businesses and organisations recognise and understand the unique differences from country to country, when deploying mobile marketing campaigns. The report reveals the most effective ways to target mobile users in each country and provides critical insights into how each market should be approached. While the most obvious finding is that a cookie cutter approach to mobile advertising in emerging markets will fail, the report uncovers the key components to success in these regions.

INTRODUCTION

Marco Veremis, CEO, Upstream

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Mark (IAB Global Mobile Advertising 2011 & 2012: 2013)

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When deploying a mobile marketing campaign, a variety of factors need to be given some thought. Some general considerations include the connection speeds available, the format of the message being sent, the device being targeted, in addition to the frequency of the messages shared. Looking at your end user, including where they are located geographically may have a significant impact on the type of mobile marketing campaign you choose to invest in. While stark differences may emerge once this type of analysis has been conducted, insights from our data reveal specific triggers that work well at eliciting response from consumers in the countries we have analysed.

Our findings show that specific words and types of sentiment of mobile marketing messages are more effective at engaging mobile subscribers than others. For example, use of the terms such as ‘congratulations’, or hints that the user has been ‘lucky’, generally tend to gain more responses from consumers across the emerging markets. In fact, terms which hint at exclusivity and reward are particularly effective. For example, messages that include phrases such as ‘You have been selected’ and ‘Pay nothing’ have all shown to achieve a better engagement rate.

Finally, across all of the countries, the actual introduction of the message proves to have an impact on the response rates of the promotion issued. For example, messages that begin with ‘contentment’ terms, such as ‘Dear loyal customer’ or ‘Dear client’ are best at getting responses across the majority emerging markets. Additionally, an early indication of the possibility of free prizes, with phrases such as ‘You have earned the chance’ are also a key driver for engagement over mobile in emerging markets.

However, aside from these general commonalities, consumers in Brazil, Nigeria, Cameroon and Vietnam respond well to different triggers. These range from the type of prize being offered, service preferences and also the time at which they are mostly likely to engage with a mobile marketing campaign.

Creating The FoundationsFor Emerging Market Mobile Success

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Generally considered as one of the biggest and exciting economies in Africa, boasting remarkable GDP growth at roughly 6 per cent, Nigeria is becoming increasingly attractive for investors and businesses and is expected to have 57.8 million mobile connections by 2017 (Ovum). For any brands and businesses wishing to reach its mass of consumers, mobile will become increasingly important

Firstly, our data reveals that the afternoon slump is the best time to target Nigerian consumers over mobile. In fact, the peak time for sending messages being approximately 3pm and Tuesday’s and Saturdays are identified as the days of the week when most responses are received.

In terms of capturing the attention of mobile users, the tone and sentiment at the start of messages should include terms of contentment and luck, as these have proved to be most popular for Nigerians. However, the actual content of the message should relate to ‘wellness’ – such as health tips, which are the types of messages most favoured. Messages that include quotes and proverbs, financial tips and material relating to fitness also resonate strongly with Nigerian consumers.

Offering free prizes or rewards is a major recruiting force for Nigerian consumers, however the prize offered is very important and will impact the response and conversion rates for campaigns. For example, when free airtime is offered as a prize to consumers, rather than an iPhone 5, response rates double.

In terms of sending promotions, 47per cent of Nigerians consumers are most likely to trust promotions sent from a mobile operator over a brand or third party. In terms of message frequency, 79 per cent of Nigerian consumers are happy to receive promotional messages to their phone once a week.

When it comes to Brazilian consumers, the difference in what constitutes an effective mobile campaign becomes immediately obvious. While Brazilians like to feel ‘lucky’ or selected in order to respond to mobile marketing messages, it is the Friday feeling that gets Brazilian consumers to engage over mobile. The results show that the most successful day for mobile campaigns is Friday, closely followed by Monday. However, unlike Nigerians, reaching consumers first thing in the morning – at 9am - is the best time to target Brazilian consumers.

Offers of ‘free’ content or prizes are also a major force for responses in Brazil, particularly when a Samsung Galaxy device is up for grabs. In fact, the Samsung Galaxy S4 is the most coveted prize in Brazil, followed by ‘RS 3,000’ cash and then the iPhone 5. In this context, our data appears to support Ovum’s prediction that Android penetration in Brazil is set to reach 56, 206 million by 2017.

Country Profiles NIGERIA

BRAZIL

In terms of specific mobile content that Brazilian consumers are demanding, the data shows that personality quizzes gain most traction in this market. Additionally, the data reveals that offering free trial periods for mobile content and apps work as a great incentive for turning Brazilian consumers into paying mobile subscribers.

Finally, research we conducted has found that over a quarter of consumers (27 per cent) are most likely to trust promotions sent from a well-known consumer brand and that 60 per cent of Brazilian consumers are happy to receive promotional messages to their mobile once a week.

With smartphone penetration is set to rise by 6 per cent, reaching one fifth of all consumers, by 2017 (Ovum), mobile as a channel is highly significant in Vietnam.

In terms of the optimal time to engage Vietnamese consumers, our data reveal the very precise time that facilitates the most responses. Specifically, 9am on Friday’s is found to be the time that messages are most well received.

Similar to the other countries analysed, messages which start with mention of selection and contentment are the most effective concepts at garnering responses. Within the longer form of the message, terms that include reference to luck, loyalty and reward are all sentiments that resonate with Vietnamese consumers. Particular terms include ‘You're lucky!’, ‘You made it!’, ‘Dear loyal customer’, ‘You’ve been selected’ and ‘You’ve earned the chance’

When it comes to mobile content, English lessons have proved to be very attractive content for consumers in the country. In fact, English lessons promote an almost 10 per cent response rate over mobile in Vietnam, with a conversion of 1.27 per cent for premium paid-for content. Additionally, conversion is most likely to occur if users are presented with a trial/free period as an incentive to upgrade later.

According to our findings, Cameroon is a country where mobile marketing has great potential. Typical response rates across a 3.5 million subscriber base reach up to 15 per cent, with a 2.68 per cent conversion rate to premium paid for mobile content.

When trying to reach mobile users in Cameroon, feelings of exclusivity are the secret to success and create the most cut-through. Additionally, the promise of free prizes is effective at provoking responses from Cameroon consumers.

In terms of the specific mobile content, information relating to wellness and relationship advice currently tops the charts in Cameroon. In addition, wise words and ‘quotes’ are also identified as the most popular types of content and services for Cameroonians.

Finally, while no particular day seems to trigger more responses than others, the data finds that consumers are most likely to respond to messages that are sent around 2pm in the afternoon.

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VIETNAM

CAMEROON

The focus on mobile in emerging markets will extend far beyond 2014. The exponential growth of global mobile shipments, thanks largely to the entry of low-cost handsets, coupled with the decline of PCs shipments, means that the importance of reaching consumers via their personal mobile devices becomes more apparent.

While mobile marketing is already established and thriving in Western and more developed mobile markets, mobiles ads are in their relative infancy when looking at developing and emerging market nations. As such, the formats of mobile ads that work in the West may not achieve the same success in emerging markets.

As our results show, the specifics of mobile marketing messages need careful thought and a ‘one-size fits all’ approach to campaigns should not be undertaken when venturing into new markets. Knowing which triggers prompt responses from consumers from county to country will greatly improve engagement for content and promotions.

Data from our MINT platform has uncovered some of the key differentiators and crucial differences when targeting consumers globally. For example, as the findings reveal, Nigerians seek wise words, consumers in Cameroon desire relationship advice, while Brazilians like to dig deeper into their personalities – therefore serving content relating to these subjects will drive engagement and conversion for mobile campaigns.

When venturing into the emerging markets it’s critical to remember that the world is not flat, and success cannot be replicated across the globe, unless time is taken to analyse the end-user and the tactics that will be most effective at reaching and engaging them. While the differences can sometimes be subtle, having prior insight into the specific words, sentiment, timing and content of messages, that will appeal to mobile users can put businesses on the front foot when trying to reach a new mass of largely untapped global consumers.

CONCLUSION

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The Mobile Monetization Powerhouse

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