Mobile Market Snapshot. by the IAB Mobile Council

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1 Mobile Market Snapshot by the IAB Mobile Council

2 Contributors This research was created by the IAB Mobile Council with particular contributions from: Blyk BSkyB MobiAdNews Orange RhythmNewMedia ZedMedia With special thanks to Guy Phillipson, CEO IAB, Jim Cook, Editor of MobiAdNews and Chair of the Mobile Council and Jack Wallington, Programmes Manager, IAB. Online survey distributed by Work Research.

3 Background

4 Background The IAB Mobile Council wanted to take a snapshot of views on mobile advertising among media planners and advertisers To offer insight into the current knowledge surrounding mobile advertising and uptake within today s current media climate Survey of 115 respondents from a spread of agencies and advertisers Questionnaires were conducted face-to-face (10) and online (105)

5 Key findings Current understanding of mobile advertising within agencies is very low Half of respondents had no experience in mobile advertising at all Mobile buying and planning within agencies is not limited to Mobile specialists The mobile industry and Digital ad agencies are seen as the biggest drivers of mobile advertising Clients and traditional ad agencies are seen as those driving mobile the least Mobile advertising remains a very small fraction of overall digital spend Many foresee that it will grow over the next 2 years and will become a standard part of budgets by 2012 Respondents feel a need for robust and reliable mobile audience measurement and campaign evaluation

6 Role in agency Which of the following best describes your role within your agency? Base: All answered (n=115) Other = planner / buyer, Research, Analysts etc One in ten respondents described themselves as a digital planner / buyer.

7 Experience in mobile marketing What experience do you have with mobile advertising? Base: All answered (n=115) Half of respondents have NO experience of mobile advertising

8 Familiarity with mobile marketing For each of the following, please indicate your level of familiarity. Base: All answered (n=115) Mean Bluetooth downloads SMS which is an ad (like direct mail) Mobile Web or WAP sites Mobile banner ads SMS shortcodes Mobile TV and video clips Mobile video ads Ad inserted into normal SMS message 8% 12% 14% 24% 26% 23% 27% 30% 49% 54% 44% 52% 39% 37% 53% 49% 35% 40% 35% 37% 44% 25% 24% 19% Mobile redemption coupons 11% 38% 50% 1.61 Sponsored content 12% 34% 54% 1.58 Sponsored music, Ringtones, Ringback 6% 42% 52% 1.54 Mobile search Advertising (sponsored link) 7% 36% 57% 1.50 Other Applications (e.g.maps etc.) 6% 36% 58% 1.48 Ads in and around mobile gaming MMS/Voice/video shortcodes 2D or QR Codes 4% 8% 10% 18% 30% 24% 78% 62% 66% % 50% 100% Understand it well Some familiarity No experience SMS, Bluetooth and banner ads are the best understood forms of mobile advertising. There are high levels of people claiming no experience in different types of mobile advertising

9 Understanding of mobile trends Do you feel you have a good enough understanding of the following global trends and issues to include mobile in your business? Base: All answered (n=115) Mean Capabilities of modern handsets 16% 71% 13% 2.03 Mobile internet usage 11% 64% 24% 1.87 Overall demographics of mobile internet users 16% 55% 30% 1.86 The range of creative possibilities of mobile for advertising 9% 58% 33% 1.76 Possibilities for mobile ad campaign measurement 8% 54% 38% 1.70 Browsing behaviour on mobile internet 6% 57% 37% 1.70 Penetration of 3G phones 8% 53% 39% % 50% 100% Understand it well Some idea No Idea The vast majority of respondents have some idea about global trends that affect mobile within their business

10 Understanding of mobile advertising How well do you feel you understand mobile advertising on a scale from 1 to 10? Base: All answered (n=115) 3% scored themselves 8 or higher 17% scored themselves 7 or higher Overall understanding of mobile advertising is felt to be very low. Only 3% felt they had a good grasp of it

11 Planning mobile

12 Mobile campaign planning specialist Who is responsible for the planning of mobile campaigns within your agency? Base: All answered (n=115) Digital & mobile specialists are responsible for planning mobile campaigns within most agencies. Although media planners have responsibility within a third of agencies

13 Mobile campaign buyer Who is responsible for the buying of mobile campaigns within your agency? Base: All answered (n=115) *Note: Results below is calculated based on total responses Many were unsure who had buying responsibility within their agency Most mobile campaigns within agencies are bought by Online buyers. 37% respondents said Mobile Specialist buyers have responsibility within their agencies

14 Driver of mobile advertising in company Within your company, who do you feel is currently driving the move to mobile advertising? Base: All answered (n=113) Top 2 box Very active / active Digital specialists 20% 42% 25% 8% 5% 62% Mobile specialists 38% 15% 14% 8% 25% 53% Strategists 3% 24% 42% 22% 9% 27% Planning Director 3% 25% 33% 22% 18% 28% Account teams 5% 17% 36% 27% 16% 22% CEO / MD 5% 10% 22% 28% 35% 15% Search specialists 2% 9% 25% 31% 34% 115 0% 50% 100% 5 Very active Not Active Digital and Mobile specialists are seen as biggest drivers of mobile advertising within agencies

15 Driver of mobile advertising outside company Outside of your company, who do you feel is currently driving the move to mobile advertising? Base: All answered (n=114) Top 2 box Very active / active Mobile industry 30% 27% 21% 13% 9% 57% Digital ad agencies 11% 38% 31% 11% 8% 49% Media owners 9% 27% 30% 21% 13% 36% Advertisers / clients 2% 9% 32% 39% 19% 11% Traditional ad agencies 2% 7% 27% 42% 23% 9% 0% 50% 100% 5 Very active Not Active Mobile Industry and Digital ad agencies are biggest drivers of mobile outside of agencies

16 Budgeting

17 The tipping point is 2010 When will mobile become a standard part of your clients' ad budgets? % 26% 39% By % believe mobile will be a standard part of client budgets % %

18 Mobile uptake

19 % of mobile component in 2008 In 2008, what % of your clients' campaigns include a mobile component? Base: All answered (n=57) % 0% 61-80% 0% 41-60% 3% 21-40% 10% 0-20% 86% 0% 50% 100% Almost nine-tenths of current ad campaigns contain 20% or less mobile advertising

20 % of mobile component in 2010 What do you expect it will be in 2010? Base: All answered (n=57) Many respondents see their clients campaigns increasing their mobile content in 2 years time

21 General view of mobile

22 Categories best suited to mobile Which categories are best suited to mobile advertising? Base: All answered (n=115) The youth market are highly engaged users of mobile devices, as well as the technology market there is a strong affinity between mobile and technology. Advertiser Entertainment is seen as the category best suited to mobile advertising Leisure & travel, Telecomms and Retail are also seen as suitable

23 Categories that people think work well Youth brands work well. And the B2B industries as business people are very tech savvy. Agency Youth, gaming, clothing, entertainment, music all of these would work well. Agency Entertainment, direct response, FMCG and Automotive are probably best suited to mobile. Agency Entertainment, media and music works well looking up films, venues and content. Agency Youth brands, especially teens therefore clothes, music, electronics, drinks. Agency

24 Hype or reality? Do you agree with these statements? Base: All answered (n=115) Location based ads are effective today 70% 30% Mobile will be the primary medium for communicating with the 12 to 24 age group. 59% 41% The current mobile audience is 75% young males. 30% 70% Mobile search will overtake PC search by % 75% Mobile advertising spend is more than 5% of total ad spend in the UK today 22% 78% 0% 50% 100% I agree I disagree

25 But Search is not seen as a driving force Respondents did not see Search as having a lot of synergy with Mobile Only 7% understand Mobile Search well, 57% have no familiarity with Mobile Search Only 25% believe Mobile Search will overtake PC Search by 2015

26 And Search experts are not engaging with mobile Only 3% of mobile campaigns are bought by a Search specialist compared to 30% by a mobile specialist and 52% by the online buyer 11% think that Search specialists are actively driving the move to mobile within their companies... compared to 62% of digital specialists and 53% of Mobile specialists Even CEO s / MDs are seen as driving mobile more than Search specialists!

27 Planning and reporting

28 Sufficient information for campaign planning? When planning a specific campaign, do you feel that currently you have sufficient information about the following? Base: All answered (n=57) Most respondents feel they do not have sufficient information to help them plan their mobile campaigns

29 Data reported for mobile campaigns similar to online What data is currently reported back to you about a mobile ad campaign? Base: All answered (n=57) Agencies do not feel they are getting enough info about ROI or customer journey tracking from their mobile campaign analysis

30 Info needed for optimisation What information do you need reported for optimisation? Base: All answered (n=57) Mean ROI 0% 7% 24% 29% 41% 4.19 Purchase intent 0% 5% 41% 36% 19% 4.17 Message association 2% 12% 54% 19% 14% 4.15 Consideration 2% 12% 49% 22% 15% 3.94 Ad awareness 0% 5% 39% 36% 20% 3.94 Customer journey tracking 3% 8% 25% 37% 25% 3.61 Cost per action 0% 3% 22% 20% 54% 3.54 Click through 0% 2% 17% 34% 47% 3.47 Delivered impressions 2% 3% 14% 24% 58% 3.26 Unique users 2% 3% 12% 36% 47% % 50% 100% 5 Very critical Do not need it Most critical aspects for optimisation are Click Through, Delivered Impressions, Cost per Action and ROI

31 Uncertainty over mobile I ve had bad experiences previously, I was oversold expectations. Creative executions are poor, and there is low reach compared to other mediums. Advertiser We find out about mobile from our media agency who make recommendations, or from individuals coming to us to present on mobile. Advertiser I d like to see demonstrations of how mobile works with other media. This and case studies of other campaigns would be really helpful to do more on mobile. Advertiser I m still not sure what s in it for the consumer? What is the unique functionality of mobile advertising over other formats? Advertiser

32 Summary

33 Summary A distinct lack of knowledge and understanding of mobile advertising within agencies and among advertisers Generally, most agencies are not equipped with mobile specialists Mobile advertising currently makes up a tiny proportion of total ad spend Although it is starting to feature within digital spend now Estimated to grow within next couple of years At present, agencies feel information given to them prior to planning mobile is insufficient As is the information reported back on their campaigns

34 Ideas for making it work The universe of potential interactive audience is unknown. I d like transparency in audience data and behaviour. I d like to know what measurement benchmarks I should be using. Until more people have advanced handsets it s a hard sell. Agency Agency Agency I d need to see a larger penetration of my target market using mobile before I use it. Also faster mobile internet speeds would help. Advertiser There s a lack of information about effectiveness, I'd like more case studies and increased general knowledge. Agency