Future of Mobile Advertising
Pavan Lee (Li, Sr. Research Peiwen) Manager
Mobile Media, Microsoft Corporation
Stuart Knapman
Scott Haiges
Partner
President
Essential Research
ROI Research
Warm-Up Exercise: U.S. Mobile Market Size • What is the U.S. mobile penetration? – 90% – 17% are smart phone owners
• How many U.S. mobile content subscribers have Internet access? – 137 million
• How many people are actively using mobile Internet? – 67 million – 56% are smart phone owners Source: Nielsen Mobile Internet & CTIA Custom Research 2009; M:Metrics 2010
While Excited About the Opportunity, We Are Aware of the Challenge Microsoft is Focusing on Multi-Screen Advantage
Microsoft Commissioned this Research to Minimize the Knowledge Gap Research Mobile consumptions and • Questions
behaviors across 10 verticals
• The role mobile plays in the media mix • Consumers’ attitudes towards mobile • Opportunities mobile present to marketers • Differences between Smartphone and iPhone users
Methodology • Qualitative – Focus groups in DC and NY – Smartphone & iphone owners – Partner: Essential Research
• Quantitative – Online survey – Smartphone and iPhone owners – Partner: ROI Research
Our Research Uncovered Three Main Themes
1. Smartphones Are Significantly Changing Consumers’ Relationship with Digital Media
Smartphones Are Highly Personal Devices: Enter with Caution • Brands require permission to enter • But high engagement means rich opportunities
“I sleep with my mobile on the pillow next to me” Female, 25-44, Smartphone user
Mobile Media Consumption is on the Increase • Mobile is 3rd highest media channel consumed • 50% expect their mobile internet access to increase in next six months • 65% say mobile internet is the most important feature when considering a new phone
The Role of Mobile vs. Other Screens is Becoming Clear
Media Extension
Message Interaction
Side-Loading
Unique Behaviors
Half of Your Audience Use Mobile After Seeing an Ad in Other Media Channel Ads Seen: Look for More Info On:
76%
40%
58%
37%
69%
37%
62%
37%
57%
33%
84%
/ Any Channel
53%
Look for More Info On:
1/3 Use Both Mobile and Online Ads Seen:
37% 31% 33% 32%
Look for More Info On:
+
2. Despite Claimed Resistance to “Mobile Advertising,� Consumers Are Actively Welcoming Brands In
Perception of Advertising Saturation: Fear that Mobile is Next
But in Reality, Consumers Welcome Great Mobile Advertising “Now we are talking about this, I’ve realized I actually do elect to hear about a lot of products. A lot of this is really advertising I guess.” Male, 35-44, iPhone user
Location-Based Advertising Opportunity
“I get emails on my phone telling me somewhere has a sale on and I end up buying things I probably Male, 25-44, Smartphone user don’t need.”
61% of consumers are interested in receiving locationbased coupons and offers
Mobile Advertising Driving Actions 17% percent of respondents recall seeing a location-based ad on their mobile phone. Activities that frequently result from seeing location-based mobile Mobile ads‌ Ad
3. The Opportunities Differ from One Vertical to the Next – But None Are Excluded
There is Growing Confidence in Using Mobile Phones to Make Purchases... Percent who say they are very/extremely comfortable making purchases via mobile Entertainment
Travel
CPG
34%
27%
24%
…And Consumers Recognize the Potential of Mobile Engagement with Different Verticals
Social Sharing Mobilized Brand Comms Location-Based Services Personal Style Assistant?
…And Consumers Recognize the Potential of Mobile Engagement with Different Verticals Mobile Coupons Shopping Assistant Location-Based Services Billboard Interaction
Enable MultiScreen Strategy Embrace Side-Loading POS Enhancement
“I think this is all pretty cool… This could either save me money or make me spend more, I’m not sure!” Female, 25-44, Smartphone user
Summary • We need to redefine “mobile advertising” if we are to really understand the opportunities, particularly within multi-screens • We need to be inspired by changing consumer behaviors and needs, to think differently about how brands can best add value in the mobile environment
“If it can better our lives, it’s better advertising” Female, 25-44, Smartphone user