A Global Consumer View of Mobile Advertising: U.S.

Market Insights
James Lamberti August 25th, 2010

In partnership with:
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The Consumer Perspective

The Problem

Consumer point of view limited Actionable data and best practices often lacking Global perspective on mobile advertising missing

Research Objectives

Provide a deep consumer view on mobile advertising Offer a global perspective across 14 countries and 6 regions Initiate on-going tracking and best practices research to help educate the market

Methodology
Full Analysis Details PRIMARY SURVEY RESEARCH
2 Minutes and 8 Questions 14 Countries 20,000 Completes English + In-Language Age, Demo, Language Weighted comScore Partnership

NYC Preview
USA Field 8/7 8/12 4,399 completes Fully Weighted

INMOBI NETWORK RESEARCH

20.3 Billion Impressions 6 Regions 15 Countries

6 Regions 5 Countries

QUALITATIVE INTERVIEWS

8 InMobi Executives Objective Analysis Mix of Global + Regional Leaders 6 Regions

8 InMobi Executives 6 Regions

Full Questionnaire
Question
1. Gender Are you: Male Female Your age: 0 -14 [End] 15 - 24 25 - 34 35 - 44 45 - 64 65 + 6. What if data plan

Specific Language

Question

Specific Language
With ads: your phone bill is reduced by 10% Without ads: you pay the regular price Are you more willing to have ads on your phone? Yes Maybe No What if all the ads on your phone are personalized to you in a helpful way. For example, you travel to a new city and an ad gives you a coupon to a local restaurant. Are you more willing to have ads on your phone? Yes Maybe No If you saw these ads on your phone, which would you click, if any? [check all that you might click] Creative, CTA Call Creative, CTA Search Creative, CTA Content Creative, CTA Purchase Creative, CTA Viral None of these Why did the ad(s) you selected appeal to you? [check all that apply] Same list as Q4

2. Age

3. Overall opinion

How comfortable are you with mobile advertising? Very comfortable, they serve an important purpose Somewhat comfortable, Im getting used to seeing them Not comfortable at all, they are intrusive No opinion, I do not think much about ads on my phone Has a mobile ad ever? [check all that apply] Introduced me to something new Helped me learn more about something Saved me money Saved me time Helped me find something nearby Reminded me of something important Entertained me Given me something for free Been relevant to who I am or what I am doing With ads on your phone: you get free apps Without ads: you pay for those apps 7. What if relevance

4. Ad benefits

8. Which ad would you click (See creative on next page) 9. Why select

5. What if apps

Are you more willing to have ads on your phone? Yes Maybe No

Ad Creative Strategy: 4 Categories, 5 Calls to Action, 14 Countries

Four distinct brands:
Credentials:

Major Hotel Brand

#2 Global Hotel Brand
(after Holiday Inn, source: Lodging Hospitality magazine online)

Major Movie Release

#10 Global Brand
(Interbrand List, 2009)

New Consumer Electronic

#5 Global Brand
(Interbrand List, 2009)

Global Automotive Brand

#18 Global Brand
(Interbrand List, 2009)

Scenario:

Travel to a new city

Movie X playing this summer

International launch of Device Y

New hybrid sport car

Five Calls-to-Action for Each:

Make a Call Make a Purchase Do a Search Share with Friends Get Digital Content

Consumers Experienced Real 300x50 Banner Creative, We Blinded Brands To Release These Results Publicly
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First Market in Global Study

USA RESULTS

Nearly two-thirds of consumers are comfortable with mobile ads.

Level of Comfort with Mobile Advertising
38% 25% 16% 10% 12%

Very comfortable, Somewhat No opinion, they serve an comfortable, I do not think important purpose Im getting used much about ads to seeing them on my phone

Somewhat Not comfortable uncomfortable, at all, they can be they are intrusive distracting

Base = Total respondents (n=4,399)

Q3. How comfortable are you with mobile advertising?

While all demographics are generally positive, males and youth are most receptive.
Level of Comfort with Mobile Advertising

Top 2 Box

Neutral

Bottom 2 Box

Top 2 Box

Neutral

Bottom 2 Box

16% 14%

29% 18%

15% 11%

22% 16%

29% 20%

71% 53%

73%

62%

51%

Male

Female

Under 25

25 - 44

45+
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Base = Total respondents (Male=3,194; Female=1,205; Under 25=2,327; 25-44=1,662; 45+=410)

Q3. How comfortable are you with mobile advertising?

Personalization of ads is more appealing than saving money and free apps.
Willingness to Have Ads on Phone

Free Apps Yes Maybe No 17%

Ads Personalized to You

10% Off Phone Bill Yes Maybe No

Yes 14%

Maybe

No

17% 30% 54% 26% 57%

27%

59%

Base = Control respondents (n=1,506) What if scenarios presented: Q5. With ads on your phone::you get free apps; Without ads: you pay for those apps; Q6. With ads: your phone bill is reduced by 10%; Without ads: you pay the regular price; Q7. All the ads on your phone are personalized to you in a helpful way? For example, you travel to a new city and an ad gives you a coupon to a local restaurant; Are you more willing to have ads on your phone?

A broad, flat distribution of benefits defines mobile advertising.

Benefit of Mobile Advertisements Seen in the Past
Introduced you to something new Helped you learn more about something Entertained you Given you something for free Helped you find something nearby Saved you money Saved you time Been relevant to who you are or what you are doing Reminded you of something important

47% 35% 30% 29% 27% 25% 24%

22%
21%

U.S. Total
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Base = Control respondents (n=1,506)

Q4. Has a mobile ad ever? [check all that apply]

Consumers are engaged in across every category from entertainment to cars.

61%

Major Hotel Brand

66% 39%

Major Movie Release

34%

Yes, would click on one or more ad

No, not click on any Yes, would click on one or more ad

No, not click on any

58%

New Consumer Electronic

75% 42%

Global Automotive Brand

25%

Yes, would click on one or more ad

No, not click on any Yes, would click on one or more ad

No, not click on any

Base = Test respondents (Hotel=698; Entertainment=717; Electronics=566; Automotive=912)

Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

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The new $40,000 car campaign was most appealing among the brands tested.
83% 17%

Male

Female

67% 33%

Global Automotive Brand

< 25

82% 18%

25-44

79% 21%

75% 25%

Yes No

45+

53% 47%

Yes, would click on one or more ad

No, not click on any

Base = Test respondents (Total Automotive=912; Male=637, Female=275; Under 25=461; 25-44=379; 45+=72*); *Caution: Small sample size Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

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Age and gender engagement patterns are consistent across all brands including hotel.
70% 30%

Male 61% 39% Female Yes, would click on one or more ad No, not click on any < 25

53% 47%

64% 36%

Major Hotel Brand

Yes No
Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

25-44

63% 37%

45+

57% 43%

Base = Test respondents (Total Hotel=698; Male=479, Female=219; Under 25=351; 25-44=278; 45+=69*); *Caution: Small sample size

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Entertainment drove high interest suggesting a link between creative efficacy and device usage.
71% 29%

Male

66% Female
59% 41%

34% Yes, would click on one or more ad No, not click on any

< 25

75% 25%

25-44

67% 33%

Yes No

45+

55% 45%

Major Movie Release

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Base = Test respondents (Total Entertainment=717; Male=497, Female=220; Under 25=340; 25-44=287; 45+=90*); *Caution: Small sample size
Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

Response data helps with mobile customer discovery such as young males.
69% 31%

Male

New Consumer Electronic

Female

45% 55%

< 25

73% 27%

58%

42%

25-44

55% 45%

Yes, would click on one or more ad

No, not click on any

Yes No

45+

48% 52%

Base = Test respondents (Total Consumer Electronic=566; Male=398, Female=168; Under 25=282; 25-44=225; 45+=59*); *Caution: Small sample size Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

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Specific Creative By Call to Action: Copy and 300 x 50 Banners

Share with Friends

Recommend a friend and get your room 50% off Share the trailer and see the movie today Recommend a friend and get a free headset Share a virtual test drive with a friend

Make A Purchase
Book now and save 20%

Buy tickets now right over your phone Buy now and save 20%

1.9% financing available now right over your phone

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Creative By Call to Action: Copy and 300 x 50 Banners

Make a Call
Planning a trip? Call now for discount rates! Call now for tickets.

Do A Search
Need a hotel room? Click now to find a room nearby. Search now for theaters and showtimes near you. Locate a dealer near you.

Get Digital Content

Planning a trip? Take a virtual tour of our newly remodeled rooms. Download trailers and wallpapers of your favorite character. Take a virtual test drive!

Book a test drive today.

Call now for information and discounts.

Find a store near you.

See a live demo of our most advanced phone ever!

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Appeal of calls to action lines up with the convenient and social nature of the device.

Mobile Ads Consumers Would Click On

U.S. Total 25%

22%

20%

18%

18%

Call

Content

Viral

Purchase

Search

Base = Test respondents (n=2,145)

Q8. If me saw these ads on your phone, which would me click, if any? [check all that me might click]

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Willingness to make a call or search defines the difference between men and women.
Mobile Ads Consumers Would Click On
Male

31%

24%

22%

20%

22%

Call
Female

Content

Viral

Purchase

Search

19%

19%

19%

16%

13%

Call

Content

Viral

Purchase

Search
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Base = Test respondents (Male=2,011; Female=882)

Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

Entertainment and big ticket purchases are best served with compelling content.
Mobile Ads Consumers Would Click On by Advertiser Brand Content CTA
Hotel Movie Electronic Auto

26% 17% 17%

24%

Content

Base = Test respondents (Hotel=698; Entertainment=717; Consumer Electronic=566; Automotive=912)

Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

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Sharing with friends extends advertiser ROI and is easily done over the phone.
Mobile Ads Consumers Would Click On by Advertiser Brand Viral CTA
Hotel Movie Electronic Auto

26% 21% 16% 17%

Viral

Base = Test respondents (Hotel=698; Entertainment=717; Consumer Electronic=566; Automotive=912)

Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

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Share with friends and get content appeal to men and women equally.
32% 25%

Male
Call Content Viral Purchase Search

24% 18% 25%

Global Automotive Brand

15% 24%

Female
12% 13%

27%
24% 24%

26% 15% Viral Purchase

19% Search

Call

Content

Base = Test respondents that saw the Automotive ads (Total=912; Male=637; Female=275)
Q8. If you saw these ads on your phone, which would you click, if any? [check all that you might click]

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Implications & next steps.

Consumers are well ahead of us in their use of the phone and comfort with ads. Agencies and brands should test and replicate this study to gather best practices in mobile. Finding
Consumers are ahead of us when it comes to mobile advertising.

Support/Best Practice
63% are comfortable, only 22% negative. Acceptance climbs +10 pts to 73% with an understanding of the exchange of value. Personalization (59% T2B) is as important as cost savings (54% to 57% T2B) in the exchange of value. Perceived benefits are broad (9 benefits ranging from 21% to 47% T2B ) and cover ALL stages of the funnel. 74% of Men claim an interest in clicking vs. women at 58%. Click interest in mobile ads is sustained up to 45 years old (64%) vs. 49% for 45+ Calls to action linked to use of the device are key phone calls, social media, and entertainment/content are equally important. While Make a call ranked highest overall at 25%, pockets of interest among women are linked to content and viral creative authenticity. Calls to action, benefits, and levels of engagement among targets are easily generalized, but highly nuanced at a category/brand level. A test grid is easily executed to unlock best practices with 3 to 6 months of focused testing.
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All demos are engaged, but men and those under 45 are particularly engaged. Mobile is NOT just like PC. Ads must consider the personal nature of the device - especially among women. Rapid development of best practices is key to unlock the potential for mobile.