THE STATE OF THE INDUSTRY: MOBILE MARKETING IN EMEA

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1 THE STATE OF THE INDUSTRY: MOBILE MARKETING IN EMEA

2 Contents Budgets Strategy Innovation 2

3 378 marketing and advertising professionals from 42 markets across EMEA 3

4 Q. Which of the following best describes your job / organisation? Media Agency 23% Brand Owner Other 51% 8% Media Owner/Publisher 8% 'Other' includes trading desks, in-house creatives, digital consultancies and sales networks. 2% 4% 4% Technology Enabler Creative Agency Specialist Mobile Agency 4

5 Key Insights At present, mobile is most commonly assigned 10% or less of marketing budgets. This is currently the case for 62% of respondents. However, almost all respondents believe their budgets will rise in both the short- and midterm, with the majority expecting to see growth of up to a quarter. 60% of respondents regularly trade programmatically, and 46% currently use a private market place (PMP). The most commonly cited reason for doing so is to secure quality ad inventory (76%). 65% of all respondents intend to utilise mobile video in their marketing activities this year, while 56% intend to leverage location data. In five years time, mobile wallet (44%), VR (42%) and augmented reality (41%) technologies will come to the fore. 5

6 Key Insights Multi-screening (74%) is regarded as the most significant consumer trend impacting mobile strategy, followed by mobile payments (50%) and watching video (47%). In cross-channel campaigns, social platforms are most frequently used in tandem with mobile marketing activities, particularly Facebook (97%), YouTube (70%) and Instagram (70%). TV is used with mobile in over half of campaigns. Consumer concerns about privacy (36%) and a lack of reliable metrics (34%) are considered to be the main barriers to industry growth. Samsung is regarded as the most innovative EMEA brand in the mobile space, followed by Coca-Cola and Unilever. 6

7 Q. In your experience, how effective is mobile as a marketing channel? Almost all respondents Very effective Quite effective Quite ineffective Very ineffective Don't know believe mobile is an effective advertising channel and agree it holds importance within their marketing strategies 7

8 Almost all respondents say mobile will be an important marketing tool for clients in the next 12 months. Q. Overall, how important do you think mobile marketing (in all forms) will be for you or your clients this year? Very important Quite important Quite unimportant Not important at all Don't know 8

9 Q. In your opinion, what are the biggest barriers to the growth of mobile marketing and advertising in EMEA? (pick up to three) 36% 34% 28% 27% 26% 26% 25% 18% 18% 17% 8% 7% Consumer concerns about privacy/security Metrics Skills Lack of mobile friendly sites Content Budgets Education Guidelines and best practices Poor quality mobile apps Data pricing Other Evangelism 9

10 BUDGETS 10

11 Budgets Key Insights At present, mobile is most commonly assigned 10% or less of marketing budgets. This is currently the case for 62% of respondents. However, almost all respondents (91%) believe their budgets will rise this year, with the majority (45%) expecting to see growth of up to a quarter. Some of this growth may be driven by media inflation. 46% of respondents believe the cost of securing mobile ad space has risen over the last year. 11

12 Budgets Q. What percentage of your/your clients' marketing budgets are currently being allocated to mobile marketing activities? 29.1% 33.3% 20.3% 7.7% 9.6% 0-5% 6-10% 11-15% 16-25% 26%+ % OF MARKETING BUDGET 12

13 Budgets Q. How much do you/your clients expect your/their mobile marketing budgets to grow over the next year? Q. How do you see mobile marketing budgets changing over the next five years? Decrease Stay the same 31% 0-25% increase 26-50% increase % increase 100+% increase Decrease 45% 4% 10% Stay the same 0-25% 26-50% % Q. How easy do you find buying mobile advertising? 9% 0% 100%+ Very easy Quite easy Quite difficult Very difficult Don't know 13

14 Budgets Q. In your experience, compared to last year, has the cost of mobile advertising Remained the same Don't know 32% 15% Risen Fallen 46% 7% Nearly half of respondents (46%) believe the cost of mobile advertising has risen in the past year. While few people believe costs are decreasing, almost a third (32%) believe the cost has remained the same. 14

15 STRATEGY 15

16 Strategy Key Insights Most agencies believe that the majority of their clients do not have a formal mobile strategy in place, yet many do. In cross-channel campaigns, social platforms are most frequently used in tandem with mobile marketing activities, particularly Facebook (97%), YouTube (70%) and Instagram (70%). TV is used with mobile in over half of campaigns. Multi-screening (74%) is regarded as the most significant consumer trend impacting mobile strategy, followed by mobile payments (50%) and watching video (47%). 16

17 Q. Agencies, do your clients have formal mobile marketing strategies for their brands? Strategy Q. Brand owners, do you have a formal mobile marketing strategy for your brand? All/almost all do 4% Don t Know More do than don't More don't than do All/almost all don't 39% NO Don't know 57% YES 17 17

18 Of those that have a formal mobile strategy, 57% could be better integrated with other marketing activities. 4% Don t know Q. If you or your clients have a formal mobile strategy, how closely is it integrated with other marketing activities? In your opinion, is it: 5% Not connected Strategy 39% Closely connected 52% Partially connected 18

19 2.3% Very easy 2.7% Very difficult Q. In your experience, is it easy or difficult to transfer mobile strategies between EMEA markets? Strategy 17.9% Don't know 31.3% Quite easy 45.8% Quite difficult 19

20 Strategy 56% TV 15% OUT OF HOME 20% IN-STORE 8% PRINT 82% SOCIAL MEDIA 80% ONLINE (INCLUDING SEARCH) 8% RADIO 2% OTHER In your experience, which media channels are used most frequently with mobile? (pick up to three) 20

21 Strategy Which social media platforms have you/your clients used for mobile marketing this year? (select as many as necessary) 97% 75% 70% 68% 16% 8% 21

22 Strategy Q. Of the following consumer behaviours made possible by mobile, which do you think has the most significance for the marketing industry? (choose up to three) 2% Other 74% Multi-screening 50% Mobile payments 47% Watching video 25% Showrooming 11% Streaming music 21% Photo-sharing 19% Mobile loyalty 17% Playing games 17% Webrooming 22

23 INNOVATION 23

24 Innovation Key Insights 65% of all respondents intend to utilise mobile video in their marketing activities this year. 56% intend to leverage location data. In five years time, mobile wallet (44%), VR (42%) and augmented reality (41%) technologies will come to the fore. 60% of respondents regularly trade programmatically, and 46% currently use a private market place (PMP). The most commonly cited reason for doing so is to secure quality ad inventory (76%). 24

25 Innovation Q. Which technologies are you/your clients planning to use this year? Which do you/your clients expect to be most important in five years time? (pick as many as required) 0% 10% 20% 30% 40% 50% 60% 70% Mobile video Location data 360-degree videos on mobile Beacons Mobile gaming Live streaming from mobile Augmented Reality QR codes Mobile wallet In-App Push Virtual reality Near Field Communication (NFC) USSD marketing Other

26 Innovation Q. In which categories, in EMEA, are you seeing the most innovation in mobile marketing? (pick up to three) Telecoms 34.4% Wearing apparel 10.7% Travel, transport and tourism 30.9% Utilities and services 6.5% Drink and beverage 28.2% Toiletries and cosmetics 4.6% Retail 28.2% Business and industrial 3.8% Financial services 26.0% Government and non-profit 3.1% Leisure and entertainment 22.5% Household and domestic 3.1% Food 21.0% Other 3.1% Motor and auto 19.8% Pharmaceutical and healthcare 2.7% 26

27 Innovation Q. In your experience, which brands do you feel are the most innovative in the mobile space in EMEA, and in what way? (choose up to three) 1st 4th "Mobile-first product innovation i.e. 360 video" 2nd "Innovative use of beacon technology" "Always finding new and fun ways to communicate with its audience!" 3rd "Fluid cross-screen experience and good use of rich media" 5th "Dares to experiment; early adopter of new technology, particularly beacons"

28 Innovation Q. Do you use a private market place (PMP) to buy or sell mobile ad space? 23% I DON T KNOW 46% YES 31% NO 28

29 Innovation Q. What are your primary reasons for using a PMP? (pick up to three) 76% Secure quality ad inventory 51% Better consumer targeting 37% Improved KPIs (impressions, CPMs etc.) 33% Avoid ad fraud 30% Heightened transparency 13% 11% Fairer pricing Assists direct sales team 15% Easy to use 29

30 Innovation Q. How often do you use programmatic/rtb as a medium for ad buying? Q. In your opinion, how important a role do you believe programmatic buying will play in your/your clients marketing strategies in five years time? 43.6% 66.9% 16.2% 17.1% 15.6% 28.6% 7.5% 2.0% 0.4% 2.0% ALWAYS OFTEN RARELY NOT AT ALL DON'T KNOW V E R Y I M P O R T A N T Q U I T E I M P O R T A N T Q U I T E N O T U N I M P O R T A N T I M P O R T A N T A T A L L D O N ' T K N O W

31 Warc: James McDonald, Analyst Mobile Marketing Association: Chris Babayode, MD EMEA More from Warc: MMA Smarties 2015: Read all the winning case studies MMA SMoX: Read findings from the MMA s pioneering SMoX research Not a subscriber? Access all of our mobile research and case studies by taking a trial today