Mobile Market Snapshot

by the IAB Mobile Council

Contributors
This research was created by the IAB 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.

Mobile Council with particular

Background

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)

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

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.

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

Familiarity with mobile marketing
For each of the following, please indicate your level of familiarity. Base: All answered (n=115)
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 Mobile redemption coupons Sponsored content Sponsored music, Ringtones, Ringback Mobile search Advertising (sponsored link) Other Applications (e.g.maps etc.) Ads in and around mobile gaming MMS/Voice/video shortcodes 2D or QR Codes
12% 14% 8% 11% 12% 6% 7% 6% 8% 10% 4% 18% 49% 38% 34% 42% 36% 36% 30% 24% 78% 27% 30% 24% 26% 23% 37% 53% 49% 54% 44% 52% 39% 35% 40% 35% 37% 44% 50% 54% 52% 57% 58% 62% 66% 19% 25% 24%

Mean
2.08 2.05 1.99 1.91 1.83 1.77 1.77 1.64 1.61 1.58 1.54 1.50 1.48 1.46 1.43 1.25

0% Understand it well Some familiarity

50% No experience

100%

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

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)
Capabilities of modern handsets
16% 71% 13%

Mean
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
8% 53% 39%

Penetration of 3G phones

1.69

0% Understand it well Some idea

50% No Idea

100%

The vast majority of respondents have ‘some idea’ about global trends that affect mobile within their business

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

Planning mobile

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

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

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 Mobile specialists

20%

42%

25%

8%

5%

62%

38%

15%

14%

8%

25%

53%

Strategists Planning Director

3%

24%

42%

22%

9%

27%

3%

25%

33%

22%

18%

28%

Account teams CEO / MD

5%

17%

36%

27%

16%

22%

5%

10%

22%

28%

35%

15%

Search specialists

2%

9%

25%

31%

34%

115

0% 5 Very active 4 3

50% 2 1 Not Active

100%

Digital and Mobile specialists are seen as biggest drivers of mobile advertising within agencies

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% 5 Very active 4 3

50% 2 1 Not Active

100%

Mobile Industry and Digital ad agencies are biggest drivers of mobile outside of agencies

Budgeting

The tipping point is 2010
When will mobile become a standard part of your clients' ad budgets?

2012 2011 2010 2009 2008 0 3% 12%

26%

39% 20%

By 2010 62% believe mobile will be a standard part of client budgets

0.5

1

Mobile uptake

% of mobile component in 2008
In 2008, what % of your clients' campaigns include a mobile component? Base: All answered (n=57)

81-100% 61-80% 41-60% 21-40% 0-20%

0% 0% 3% 10% 86% 0% 50%
Almost nine-tenths of current ad campaigns contain 20% or less mobile advertising

100%

% 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

General view of

mobile

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

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

Hype or reality?
Do you agree with these statements? Base: All answered (n=115)

Location based ads are effective today Mobile will be the primary medium for communicating with the 12 to 24 age group. The current mobile audience is 75% young males.
30%

70%

30%

59%

41%

70%

Mobile search will overtake PC search by 2015 Mobile advertising spend is more than 5% of total ad spend in the UK today
0%

25%

75%

22%

78%

50%

100%

I agree

I disagree

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

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!

Planning and reporting

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

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

Info needed for optimisation
What information do you need reported for optimisation? Base: All answered (n=57) Mean
29% 41% 12% 12% 39% 8% 22% 17% 14% 12% 24% 36% 25% 20% 34% 58% 47% 37% 54% 47% 54% 49% 36% 36% 19% 22% 41% 19% 14% 15% 20% 25%

ROI 0% Purchase intent Message association Consideration Ad awareness Customer journey tracking Cost per action Click through Delivered impressions Unique users

7%

24%

4.19 4.17 4.15 3.94 3.94 3.61 3.54 3.47 3.26 3.26

0%5%

2% 2% 0%5% 3% 0% 3% 0% 2% 2% 3% 2% 3%

0% 5 Very critical 4 3 2

50% 1 Do not need it

100%

Most critical aspects for optimisation are Click Through, Delivered Impressions, Cost per Action and ROI

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

Summary

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

Ideas for making it work
“The universe of potential ‘interactive’ audience is unknown. I’d like

transparency in audience data and behaviour.”
Agency

“I’d like to know what measurement benchmarks I should be using.” 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

“Until more people have

advanced handsets it’s a hard
sell.”
Agency

“There’s a lack of information about effectiveness , I'd like more case studies and increased general knowledge.” Agency