AdReaction 2012 – Canadian Report Marketing in the Mobile World

Research Design

3

AdReaction 2012

QUANTITATIVE

Who: n=988

• Nationally representative of regions, age and gender

composition

• Must have and use a smartphone or a tablet

What: Mobile usage levels and attitudes toward advertising in

mobile communication and digital devices

How: Online survey

When: October 12 – October 22, 2012

How do people interact with

mobile devices?

3.

Is mobile advertising the next

big thing? 2.

Key Issues/ Questions

4

Media changes 1.

How can we create effective

mobile communication?

4.

Most users are tolerant of,

but not yet favourable

toward, brands in this

intimate space.

3.

Mobile devices are used ‘on

the go’ and more often for

personal activities than for

work.

2.

Key Findings A T A G L A N C E

5

Mobile devices are

indispensable and increasingly

central to our lives.

1.

Favourability to mobile

advertising and devices is

different between regions

(English Canada, French

Canada, USA).

4.

There is a huge

opportunity for mobile

communications and users

are receptive when done

right.

5. Marketers need to improve

mobile perceptions by

meeting, then exceeding, user

expectations — and

delivering competent, targeted

and valuable marketing.

6. For marketers who use

best practices, it’s proven

that mobile can build

brands.

7.

Share of Time Spent on Smartphones vs. Tablets

6 Sample: Smartphone and/or tablet users

Smartphones

Watching Video

7%

Listening to Music

11%

Social Networking

11%

Talking 17%

Texting 17%

Surfing the Web/Email

14% Using Apps 13%

Playing Games

10%

Although the final experience is not necessarily comparable, mobile devices combine the

capabilities of different electronic devices in one (TV, Computers, Phones) and people use

them like that.

Total Hours Spent Weekly: 30.6 30.2

Tablets

Watching Video 13%

Listening to Music

13%

Social Networking

15%

Surfing the Web/Email

22%

Using Apps 20%

Playing Games

17%

7

MOBILE is

INDISPENSABLE

USAGE is

ON THE RISE

$34.5 $62

$109.9

$188.6

$301.7

$483.3

$691.4

2010 2011 2012 2013 2014 2015 2016

Mobile Ad Spending

182.5%

79.6%

77.3% 71.6%

60.2%

59.9%

43.1%

2010 2011 2012 2013 2014 2015 2016

% Change

8

Mobile Ad Spending in Canada 2010-2016

Source: http://www.emarketer.com/Article/Mobile-Ad-Spend-Canada-Rises-with-Smartphone-Tablet-Uptake/1009803

Today, consumers spend as much time surfing the web/email or using apps on tablets as

watching TV offline. Respondents claim they will also spend more time using tablets/mobile

phones for different tasks in the near future.

Momentum: The percentage of consumers stating time spent on this activity will increase next year minus the percentage of consumers stating time spent will decrease

10

Activities on mobile phones

Activities on tablets

Offline activities

Usage and Momentum

Mobile devices are not yet a replacement for computers. They are all about engaging in

different activities ‘on the go’ and helping users become more efficient. Mobile devices are

used more for personal activities than for work-related ones.

11

11% Now that I have my mobile device, I don’t really need a computer

21% My mobile device is my primary tool for organizing my work life

29% My mobile device is my primary tool for organizing my personal life

21% An increasing amount of my work is accomplished through my mobile device

38% My mobile device is indispensable because I’m always on the go

47% Having a mobile device makes me more efficient

Sample: Smartphone and/or tablet users

12

What are the biggest advantages of apps?

Users of mobile devices like apps because they are a ‘one tap’ way to get to specific

content that users want to see on a regular basis.

Canada

52%

40%

29%

21%

20%

17%

10%

I can access an app directly rather than having

to navigate through a browser

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

a mobile website

Apps don’t need an Internet connection

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

a website

Apps are better for gaming

Display of content from apps is better than from

a website

Apps have better content than websites

Sample: Smartphone and/or tablet users

Apps are great tools for users of mobile devices, but only some of the installed apps are used

on a regular basis. Tablet users are more likely to use apps installed on their devices.

13

Of the apps installed on your mobile device, how many have you used in past 30 days?

Sample: Smartphone and/or tablet users

Hardly any 41%

About half 36%

Most 17%

All 6%

Phone Canada

Hardly any 30%

About half 44%

Most 22%

All 4%

Tablet Canada

ARE BRANDS

WELCOME

ATTITUDES toward mobile

marketing formats

in this intimate space?

14

French Canadians are more open than English Canadians to advertising in traditional non-

digital media. That said, Canadians, as a group, are less open to advertising relative to

Americans.

Sample: Smartphone and/or tablet users 15

VERY/SOMEWHAT

FAVOURABLE

How would you characterize your attitude toward each of the following formats of advertising?

49%

41% 40%

33%

40%

32%

28%

22%

9% 7%

42%

38% 37% 35% 34%

31%

21% 22%

10%

15%

37% 35% 34%

31% 30%

26% 23%

20%

11%

8%

TV Ads Magazine Ads Newspaper Ads

Billboard Ads

Radio Ads Cinema Ads

Product Placements

Online Ads Ads On Mobile

Devices

Telemarketing

Total Canada French Canada USA

22%

16%

17%

17%

15%

17%

18%

16%

18%

13%

13%

12%

11%

12%

12%

10%

Overall, tablet users are more favourable toward mobile advertising compared to

smartphone users. That said, considering smartphones as the device of choice, Americans

tend to be more favourable toward mobile advertising than Canadians.

Sample: Smartphone and/or tablet users Question: How would you characterize your attitude toward each of the following formats of advertising on mobile devices?

16

20%

18%

19%

17%

15%

17%

19%

17%

15%

% VERY/SOMEWHAT FAVOURABLE

Brand posts in social news feeds

11% Mobile search ads

11% SMS text ads

11% Mobile display ads

8% Mobile music player ads

8% Mobile video ads

8% In-app ads

7% Augmented reality

TABLET USERS SMARTPHONE USERS

Total Canada USA

19

Any

BRAND EXPOSURE

can drive consumers

to MOBILE

MOBILE IN THE

MEDIA MIX

Mobile Is the Second Screen: At least 1 in 3 mobile device users would take a mobile action

based on being exposed to brands at stores or other advertising efforts.

20

Event

Print Ad Brand in Store Offline

Print Ad

TV Ad

Brand in Store Online

Online Ad

Brand Post in Social News Feed

Billboard Ad

Radio Ad

If I saw ___________, I would likely take a mobile action*:

41%

40%

39%

37%

36%

33%

34%

31%

31%

BRAND

SEARCH

VISIT

WEBSITE

DOWNLOAD

APP

LIKE/FOLLOW

BRAND

*AT LEAST ONE OF THE FOLLOWING ACTIONS

Sample: Smartphone and/or tablet users

5%

5%

6%

6%

7%

8%

11%

13%

15%

Mobile display ads are just one element of a mobile campaign; use display to drive traffic to an optimized website for continued engagement.

Mobile ads, done right, have the ability to continue the relationship with the brand.

Sample: Smartphone and/or tablet users 21

Which of the following actions have you taken as a result of seeing a mobile ad?

Visited the brand's website

Searched for the brand on the Internet

Looked for the brand in a store

Clicked on or interacted with the ad

Visited a site for a similar brand

Purchased the brand

Recommended the brand

Sent the ad to a friend

Searched more ads for brand

PRINCIPLES

for

BRAND SUCCESS

IN THE

MOBILE SPACE

23

- Eric Schmidt, CEO Google,

April 23, 2013

In every corridor in every way, mobile technology, phones and tablets, are exceeding everybody’s expectations.

Meeting audience expectations is the difference between a successful and an unsuccessful

mobile presence.

Source: Dynamic Logic’s AdIndex for Mobile Norms, data from last 4 years through Q4/2012 Overall Mobile N=320 campaigns, Delta (Δ)=Exposed-Control ** Best = top 20% of all campaigns tested; Worst = bottom 20% of all campaigns tested

24

AdIndex® for Mobile In-Market Ad Effectiveness Norms Percent Impacted: Delta (Δ)

Aided Brand

Awareness

Brand

Favourability

Purchase

Intent Mobile Ad

Awareness

Message

Association

+17

+5

-4

+39

+16

+29

+10

-2

+14

+3

-6

+17.0

+4

-6

Mobile Best Performers

Overall Mobile Performers

Mobile Worst Performers

-1

Expectations about mobile

25

Mobile Will Offer

an Exchange of

Tangible Value

3 Mobile Will Know

Who I Am and

Target

Accordingly

2 1 Mobile

Will Be

Competent

And audiences are receptive to mobile done right.

26

More than any other media, mobile marketing needs to be high quality, extremely functional and user-friendly.

14%

18%

24%

27%

34%

40%

46%

48%

50%

When using your mobile device, which can damage your opinion of a brand?

Social

Incompetence

Technical

Incompetence

Be technically and socially competent every time.

Requesting too much personal info

No way to opt-out of ads

Sending me unwanted ads or posts

Slow or incompatible apps

A mobile website that keeps

promoting their app

Flash content that doesn't work on

my device

Sending links that don't work on my

device

Non-optimized mobile website

No app for my device

Sample: Smartphone and/or tablet users

27

There is a willingness and desire to share location in exchange for the right content and marketing.

Among audiences who access mobile web once a day or more

29% are willing to share their geographic location to

get the right content or marketing

32% say they want to see more location-based

content and marketing

Tailor to the physical space.

Sample: Smartphone and/or tablet users

What types of companies or brands would you most like to see delivering services or features for

your mobile devices?

Establish personal relevance.

Sample: smartphone or tablet users 28

Local restaurants 31%

Retail stores 29%

Online shopping sites 24%

8%

9%

11%

12%

15%

16%

20%

21%

21%

21%

21%

23%

24%

29%

31%

Automotive companies

Telecommunication companies

Fashion/Designers

Drink products/brands

Technology companies

Sports teams/leagues

Airlines

Hotels

Newspapers or magazines

Food products/brands

Quick service restaurants

Banks/Financial services

Online shopping sites

Retail stores

Local restaurants

Banks/ Financial svcs 23%

Balance the tangible value offered with the degree of intrusion.

29

Audiences are looking for something of value in return for allowing marketers access to their mobile phones.

45%

DEALS & COUPONS

35%

FREE TOOLS

e.g. shopping

lists, reminders

30%

LATEST PRODUCT

NEWS

29%

LOCATION-BASED INFO

e.g., store

locations,

promotions

20% 20%

INTEREST-BASED INFO

e.g. recipes,

sports scores

FUN FEATURES e.g., branded

games, song

downloads Mobile Value Spectrum

Mobile display ads need clear branding, communication and call-to-action.

30

What makes a good mobile display ad?

do: don’t:

offer a clear call-to-action

show your brand only on a product shot

target as tightly as possible

clutter your ads with too much text or too

many logos

repurpose online creative only to leave

it cropped

make the ads interactive

and engaging

clearly brand your creative

use intrusive formats unless context is

highly relevant

Mobile websites should be fast and functional.

31

Simple is safest until network speeds improve.

What makes a good mobile website?

do: don’t: make it fast, clean and

easy to use

feel compelled to outdo your

online website

forget mobile users are goal

directed

value entertainment over competence

keep the latest news on top

and tailor to the location

minimize taps and resizing

Mobile apps must be easy to acquire and easy to use.

32

What makes a good mobile app?

do: don’t: be relevant and free if

possible

crash (don’t be too resource intensive)

clearly explain what you offer

and what you’ve updated

build one unless it will be used regularly

make it too complex offer users something in

return

ask for more than you need

(e.g., personal information, updates)

aim to surprise and delight

so users come back

AdReaction 2012 – Canadian Report Marketing in the Mobile World

Questions:

Cesar.Zea@millwardbrown.com