PowerPoint Presentation

Why Does Mobile Really Matter?The Case for Mobile and Empirical Evidence of its ValueOctober 2016MMA Forum Mexico 2016 - Mobile Leadership

Greg StuartGlobal CEO greg@mmaglobal.com

MMA Global Board of Directors

John CostelloPresident, Global Marketing & InnovationDunkin BrandsJack PhilbinCo-Founder & CEOVibesCarolyn EversonVP, Global Marketing SolutionsFacebookStephen McCarthyFinance, InfrastructurexAdCameron ClaytonPresident, Product & TechnologyThe Weather CompanyGreg StuartCEOMMAMichael BakerPresident & CEODataXuPete BlackshawGlobal Head, Digital Marketing & Social MediaNestleSusan CanavariChief Brand OfficerChaseTom DalyGroup Director, Global ConnectionsThe Coca-Cola CompanyLuis Di ComoSVP, Global MediaUnileverAmit GuptaCo-FounderInMobiSanjay GuptaEVP Marketing, Innovation & Corporate RelationsAllstate Insurance CompanyJack HaberVP, Global Advertising & DigitalColgate-Palmolive CompanyPeter HamiltonCEOTUNEJohn KosnerEVP & General Manager, Digital & Print MediaESPNIlonka LavizDigital Marketing Director, Global eBusinessProcter & GambleWilliam LonerganChief Executive OfficerRadiumOnePeter McGuinnessChief Marketing & Brand OfficerChobaniMargo GeogiadisPresident, AmericasGoogleDipanshu D SharmaFounder & CEOxAdGregory R. RaifmanPresidentRubicon ProjectAndrew SherrardChief Marketing OfficerT-MobileNada StirrattChief Executive OfficerVerveJohn TrimbleChief Revenue OfficerPandoraDan RosenGlobal Advertising DirectorTelefonica

Alberto Banano - PardoFounder & CEOAdsmovilMichael DonnellySVP, Digital MarketingMasterCardChair:Vice Chair:Secretary:

EMEA Regional Rep:NA Regional Rep:LATAM Regional Rep:LATAM Regional Rep:Tom ChavezCEO & Co-FounderKruxAt Large:At Large:Treasurer:Chair Emeritus:MMA President:Ernesto EcheverriDir. Mktg USA, Canada & CaribbeanLATAM Airlines GroupKellyn KennyVP of Marketing UberTim MahoneyCMOGeneral MotorsMarc MathieuCMOSamsungJeff LucasCROSnapchat

Karin TimponeGlobal Marketing OfficerMarriott

2

Mobile is the greatest transformation in consumer behavior that we will see in our lifetimeMobile is not a fad, or improvement, it is a fundamental change in the infrastructure of how companies connect to consumers

43 Parts of Todays DiscussionWhy does Mobile matter to businesses?What is the real value of Mobile to Marketers?What can you do about it?

And by 2020, nearly everyone might have a SmartphoneBy 2020 5bn people on earth will have a smartphoneSource: World Bank, GSMA, Apple, Google etc

Mobile is THE first universal tech productMobile Completes a journey from one computer on earth to another computer in every pocketEvery Corp-orationEvery home and every deskEvery pocket

n.

Disruption of Photo Industry is just one example

More iPhones & Android phones sold than Japanese cameras EVER.More photos taken this year than taken on film ever.Source: Kodak Companies, CIPA, a16z

80BPhotosTaken1999

800BPhotosOn Social Media2014

3-4x more smartphones than PCsIncrease in sophistication and complexity of mobile is as important as the increase in scale

Used every where

Used much more

Used in more sophisticated ways

Because of this and more, Mobile had a BIG multiplier effectVastly bigger opportunity

Mobile is not smaller, it is richer, more expansive, and personalThe smartphone is now a more capable and sophisticated internet platform than PC

PersonalTouchSensorsCamerasLocationPaymentSocial integrationSecurityAnd much easier to use

SensorPurpose / UseAccelerometerMeasures movement and orientationGyroscope For measuring angular rotation across three axes and giving more accuracy to the accelerometer readingMagnetometerDetecting magnetic fields and magnetic North GPS chipEnables location services, along with the magnetometerFront & rear facing camerasEnables photography and detects objects in surrounding environmentMicrophoneDetects sound and speechProximity sensorRecognizing when you move your phone up to your faceAmbient light sensorsAdjusting brightness levels based on your environment (high-end Samsung Galaxy phones can measure white, red, green, and blue light independently to tune displays)Pressure sensorsEnables touchscreenFingerprint sensorsReads fingerprint for authentication and privacyMotion coprocessorsAdd to motion sensing capabilities (e.g. can tell the difference between walking and driving)Air qualityMeasures air qualityWater qualityMeasures water quality3D/Stereo cameraImproved facial and gesture recognition (eventually emotional state tracking)RadarIncreased awareness of surroundingsSonarIncreased awareness of surroundings Pollution sensorsDetect pollution levels (measure smog, dangerous chemicals, etc.)Internal health & body activitiesUse an internal chip to monitor health and internal activities (bionic limbs, disease, etc.)Seismic activity sensorEarthquake detection

More feedback, more data, than you can imagineCommonCutting EdgeFuture State

In fact, all new industries are being remade around smartphones. The really important new business are native to new technologiesWeb & SmartphonesSmartphonesTrucks & HighwaysTrucks & HighwaysAirbnbUber/LyftMcDonaldsWal-MartTravelTransportFoodRetail

This Missed the PointThe Year of Mobile

Est 1999Est. 1999

Problem was, Year of Mobile was too limiting

Its the age of mobile

We Are Really In

Mobiles unique differentiator:Mobile is the closest you can get to your consumer

What is the value of being closer?MMA looked at that with a $3M research program

SMoX.me = Smart Mobile Cross Marketing Effectiveness Studies

SMoX : Industry Consortium Coming together to understand business value of Mobile in advertising Mix

AwarenessImagePurchase IntentFoot TrafficSales

165 Brands

4 Countries

TVPrintInternetFSICinemaSocialOOHMobileDisplayDisplay, video, socialDisplay, video, native, location Display, audio, video socialDisplay, video, socialDisplay, video, socialDisplay, video, socialDisplay, RM, Weather targeting, social, video

Measured a variety of media in each campaign mix

17

17

How many people can you convert with mobile?

?

Campaign AverageMobile

19Mobile is significantly more efficient vs. other media across the funnelBrandsCampaign ObjectivePeople Converted Avg. CampaignPeople Converted JUST Exposed MobileAT&TAware of MotoX Phone1.01.9Gold Peak TeaAware of Gold Peak Tea4.8MasterCardImage: Use MC when Travel1.7WalmartIntent to Shop Back-to-School Grocery1.9WalmartSales in Store at Walmart2.0

How many people can you convert with mobile?

2X+

Campaign AverageMobile

What is the impact of a channel that has this kind of engagement/attention for marketers?

Save video creative would produce stronger results vs.. TV with lower costMobile VideoTV40100100450Better ROI!

Effectiveness atlow frequencyPrice

Proprietary & ConfidentialSource: Walmart SC Survey; Data Collected from: 8/4-9/28

MOBILE VIDEO

And Mobile is Changing the Way we Look at Media Buying CABLE TV

The first couple of exposures were significantly more impactful in mobile, showing that mobile can be a much more engaging platform.23

Mobile Native improved results for Walmart. PriceBetter ROI!Effectiveness at low FrequencyMobile NativeMobile Display5001001001000Effectiveness at High Frequency300Manage frequency or rotate creative

Location and format Interact: And REALLY drive Foot Traffic

Expandable UnitsPencil UnitsRetargetedProximity

40%

12%

No Lift

10%

1290Depending on the category, Context Targeting can add significant valueDay of the week*130100Weekday vs.. Weekend targeting Time of the day targeting for industry with Strong Time of Day Dynamic Without targetingWithtargetingTime of Day**100

27What do we know SMoXCampaign Information Change in Campaign Due to MobileCompany (Brand)Country of StudyOverall Campaign Goal & OptimizationAll Media in CampaignMobile Formats in Mobile Portion of CampaignImpact when Optimizing within Mobile Mix Also iiOpt. % Of Mobile in Mix with Mobile Best Practices vBoost in Overall Campaign Perf.AT&T (MotoX)U.S.AwarenessTVPrintDesktopDisplay20% +18%MasterCardU.S.Image (MC is good card to use when traveling)TVPrintDesktopSocialDisplayVideoSocial12% +17%Walmart (Back-to-School Grocery)U.S.Purchase Intent & SalesTVFSIDesktopDisplayNativeSocialLocation Targeting 15% +14%Coca-Cola Co. (Gold Peak Tea)U.S.Awareness,Image & Sales TVPrintOOHDesktop DisplayAudioVideo 15% +7%Coca-Cola Co. (Red Can)ChinaSalesTVOOHDesktopDisplayVideoSocial15% +16%Coca-Cola Co. (Red Can)UKSalesTVOOHDesktopDisplayVideoSocial16% +25%Coca-Cola Co. (Red Can) BrazilSalesTVOOHDesktopDisplayVideoSocial19% +60%Unilever(Magnum)U.S.SalesTV, Print, DesktopDisplay,VideoSocial, RM, Weather targeting17% +13%i Assumes that overall campaign budget is optimized without making any changes in terms of how mobile mix was allocatedii Assumes that overall campaign budget is optimized and best practices are used to further improve the performance of mobileiii The % of the total advertising budget that should be allocated to mobile in order to maximize the performance of the campaigniv The incremental lift in performance generated by optimizing the budget for mobile / increasing mobile allocationv Employing best practices would include rebalancing the mix in mobile to more cost effective formats, removing ads that failed, increase use of targeting proven to work and more.

In Summary SMoX Consistently DemonstratesAllocation to Mobile in the Mix, when mobile is done rightProduces an Increase in Brand MetricsProduces an Increase in Sales or Profit of:All Studies to Date12% to 20%~17%7% to 25%to 60%

28Sales +7%

toSales+60%toSales+25%

29Your ChallengesWhat do you need to do/have/org to be able to be successful with 20% of spend in MobileHow much more can you squeeze out of TV, newspapers, radio into the future?What does it mean to be closer to your consumer?Can you figure it out alone?

The Math: Mobile will be a $70 Billion U.S. business and over $200 Billion worldwide(just from big brands)However, as Reach Increases, so might Allocation15-20%TodayIncrease in Smartphone to 90%20-30%w/ Increased Smartphones

Truth is, Mobile is Bigger than we thought

32

Location Segment LeaderVideo Segment LeaderTBD Cross Screen Leader

TBD SegmentLeader

Kicking off Wave II with new Marketers & Supporters

AutoPharmaQSR?

MMA Introduced.33

November 1st is the Big RevealMATT is a community of industry experts committed to rethinking the world of marketing measurement and attribution; seeking to give marketers better measurements, tools and confidence in connecting marketing to business outcomes.

All MMA members are invited to participate in MATT

Glad you are with us!

SMoXMobile ROI Research20+ Events Worldwide

30+ Webinars Annually and Many More Available on DemandSMARTIESAwarding Best in Class Mobile Campaigns

Industry Working Groups Driving the Future of Mobile

CEO & CMOSummit Annual Mobile Think TankGuidelines & Best Practices Viewability, Location, Native

Guidelines & Best Practices Viewability, Location, Native and moreSmartBrief Daily Mobile News in your InboxMM25 Marketer Peer GroupTackling Core Issues for Marketers800+ Members From the Entire Mobile Ecosystem WorldwideMarketing Attribution Think Tank

600+ Mobile Case StudiesInspiring Creative Innovation

Thank You!

Seizing the Mobile Opportunity, Globally Mobile Marketing Association

greg@mmaglobal.com

n.

n.