fashion digital mobile event march 24, 2015

Truly Transformational Power 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 WalmartFashion Digital Mobile New York

March 24, 2015

Greg Stuart, CEO Mobile Marketing Association

MMA Membership800+ Marketers, Agencies, Media Sellers, Tech, Operators Globally

http://www.velti.com/

http://www.velti.com/

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

Naveen Tewari

Founder & CEO

InMobi

Peter Kuipers

EVP & CFO

Quantcast

Alex Moukas

CEO

Velti

Cameron Clayton

President, Digital

Group

The Weather Co.

Mike Baker

CEO & Co-Founder

DataXu

Michael Barrett

CEO

Millennial Media

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, Partner

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

Alan Yan

Founder & CEO

AdChina

Wanda Young

VP, Media & Digital

Marketing

Walmart

MMA Global Board of Directors

What Do You Mean,

You Don’t Spend Big In

Mobile Yet?Do You Not Care About Your Business or Career?

Finally, We Know For Sure – Proof that Mobile Advertising Does Deserve a Place in the Marketing Mix

4

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

What Other Media Gets This Kind of

Commitment?

10

18-24 year olds check their

phones every 10 minuteson 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

Or this Kind of Commitment !?!?

Truth is: Mobile – The Closest You Can Get to

Your Consumer

If there were cellphones at the Red Sea

How many ways is mobile unique?

9

That USP is supported by Real Value

Personalization Pervasiveness Proximity

What is the [real] value of mobile?

$1BDollars

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?

Current methods can’t measure mobile.

Either not granular or lack cross marketing context.

So, the greatest transformation in marketing is UNMEASUREABLE!

Revolutionary Channel needs a Revolutionary Approach.

Revolutionary Channel needed a Revolutionary

Approach.

SMoX.me = Smart Mobile Cross Marketing Effectiveness Studies

Why SMOX is revolutionary

$2 million,20 companies,

3 Trade Groups, 7 major marketers

Global• 5 studies so far

• 10 more coming

• Real in-market testing

• Entire mix• Measure mobile

even if it’s 0%!

Thank you to these Innovation Leaders

Supporters Partners

Association of National Advertisers

American Association of Advertising Agencies

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

The campaigns we tested cover the entire

purchase funnel

Awareness

Image

Purchase Intent

Foot Traffic

Sales

How many people can you convert with mobile?

?

Campaign Average Mobile

1. AT&T wanted to build AWARENESS

for the new moto X

Image

PurchaseIntent

FootTraffic

Sales

Awareness

TV PRINT

MOBILE DIGITAL

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

2. MasterCard wanted to increase

association with Travel

PurchaseIntent

FootTraffic

Sales

Awareness

TV

SOCIAL

PRINT

DIGITAL/MEDIA

Image

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

3. Walmart wanted to drive Intent for

Back to School grocery

FootTraffic

Sales

Awareness

TV

MOBILE

Image

PurchaseIntent

25

DIGITAL

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”


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

Mobile worked harder than its share and

drove results across the Board

Sales

of budget5%

of sales6%


Gold Peak Campaignon average

Mobile

Top of MindAwareness

HomeBrewed Taste

Gold Peak Campaignon average

Mobile

4.81 1.81

Well, can mobile help me meet

my marketing goals?

YES. Mobile drives results across

the entire purchase funnel

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%

But what is the REAL business value of those allocations?

Reallocation to mobile would bring double

digit lift in awareness

Or convert the entire city of Chicago

+12%Increase in Awareness

3/24/2015 Proprietary & Confidential 35

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

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

Reallocation to mobile would increase actual

sales by 4%

enough bottles to pave the way to Toronto

+4%Sales

So what is the optimal allocation

for mobile in the mix?

DOUBLE DIGITAim for a

Mobile allocation in your total marketing mix

slide titleI Get It. Change is Hard

Key Questions




4 ways to make mobile work harder

Format Location Time of Day Creative

Net, there are a lot of options to improve Mobile

1. Optimize by Format


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

Save video creative would produce stronger

results vs.. TV with lower cost

Mobile Video

TV

40

100 100

450Better ROI!

Effectiveness at

low frequencyPrice

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

Using mobile formats to hit goals and

maximize ROI

Display Social Audio Video Native

Characteristics Builds

impact

gradually

Stronger than display

Builds impact

gradually

Stronger than display

Builds impact faster/stronger

Approach Benefits from repetition. Good for

recency / continuity strategy

Monitor frequency or build on

creative rotation

2. Leverage Location Targeting


Location and format Interact:

Combine for better results

Expandable Units

Pencil Units

Reta

rgete

d

Pro

xim

ity

40%12%

No Lift 10%

3. Leverage Context Targeting


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

4. Build on Creative


AB testing can significantly increase impact

AB testing and

optimization

No optimization

Better Creative Relevance to Demo

100 100

170120

How can I make my mobile investment

work harder?

Optimization area

1. Optimize by Format(video, audio, native, larger ads, etc.)

2. Leverage Location targeting(proximity, retargeting store visit, etc.)

3. Leverage Context targeting(time of day, edit context, etc.)

4. Optimize and Improve Creative(a/b testing, new creative, etc.)

Total

ROI Upside of Mobile Only

~20% to ~80%

~30% to ~120%

~20% to ~60%

~40% to ~200%

~150% to ~550%

That said, asking marketers to do mobile

marketing is like kids asking for first cell phone

Applying the learnings: Improved Results

Image

PurchaseIntent

FootTraffic

Sales

Awareness

Impact

+7% +15% +4%

+17% +29% +7%With Best Practices

Agreement with brand

image

Intent to shop Offline Sales

Agreement with brand

image

Intent to shop Offline Sales

+12%

+18

Awareness

Awareness

Applying the learnings: Invest more in mobile

Image

PurchaseIntent

FootTraffic

Sales

AwarenessMobile Optimized %

8% 10% 10%

12% 12% 15%

With Best Practices

16%

20%

Key Questions




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%

What is the [real] value of mobile?

$1BN

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 XMOS Studies

Total Online Spending

Average XMOS Brands

But will SMoX move marketers?

Finally, three things you can do now

1. Join the MMA as a Member

[email protected]

2. Continue dialogue at MMA CEO & CMO Summit(or the 17 other events, 50 webinars, etc MMA has)

July [email protected]

3. Bring SMoX in-house to your marketing teams

[email protected]

Thank You!

[email protected]