Mobile MarketSnapshotby the IAB Mobile Council

Contributors

This research was created by the IAB Mobile Council with particularcontributions from:

• Blyk• BSkyB• MobiAdNews• Orange• RhythmNewMedia• ZedMedia

With special thanks to Guy Phillipson, CEO IAB, Jim Cook, Editor ofMobiAdNews and Chair of the Mobile Council and Jack Wallington,Programmes Manager, IAB.

Online survey distributed by Work Research.

Background

• The IAB Mobile Council wanted to take a snapshot of viewson mobile advertising among media planners and advertisers

• To offer insight into the current knowledge surrounding mobileadvertising and uptake within today’s current media climate

• Survey of 115 respondents from a spread of agencies andadvertisers

• Questionnaires were conducted face-to-face (10) and online(105)

Background

• 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 mobileadvertising‒ 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 andcampaign evaluation

Key findings

Which of the following best describes your role within your agency?Base: All answered (n=115)

One in ten respondents described themselves as a digital planner / buyer.

Other = planner / buyer,Research, Analysts etc

Role in agency

What experience do you have with mobile advertising?Base: All answered (n=115)

Half of respondents have NO experience of mobile advertising

Experience in mobile marketing

4%

10%

8%

6%

7%

6%

12%

11%

8%

14%

12%

23%

26%

24%

30%

27%

18%

24%

30%

36%

36%

42%

34%

38%

49%

49%

53%

37%

39%

52%

44%

54%

78%

66%

62%

58%

57%

52%

54%

50%

44%

37%

35%

40%

35%

24%

25%

19%

0% 50% 100%

2D or QR Codes

MMS/Voice/video shortcodes

Ads in and around mobile gaming

Other Applications (e.g.maps etc.)

Mobile search Advertising (sponsored link)

Sponsored music, Ringtones, Ringback

Sponsored content

Mobile redemption coupons

Ad inserted into normal SMS message

Mobile video ads

Mobile TV and video clips

SMS shortcodes

Mobile banner ads

Mobile Web or WAP sites

SMS which is an ad (like direct mail)

Bluetooth downloads

Understand it well Some familiarity No experience

For each of the following, please indicate your level of familiarity.Base: All answered (n=115)

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

Mean

SMS, Bluetooth and banner ads are the best understood forms of mobile advertising. Thereare high levels of people claiming ‘no experience’ in different types of mobile advertising

Familiarity with mobile marketing

8%

6%

8%

9%

16%

11%

16%

53%

57%

54%

58%

55%

64%

71%

39%

37%

38%

33%

30%

24%

13%

0% 50% 100%

Penetration of 3G phones

Browsing behaviour on mobile internet

Possibilities for mobile ad campaign measurement

The range of creative possibilities of mobile for advertising

Overall demographics of mobile internet users

Mobile internet usage

Capabilities of modern handsets

Understand it well Some idea No Idea

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

2.03

1.87

1.86

1.76

1.70

1.70

1.69

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

Understanding of mobile trends

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 higher17% 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

Understanding of mobile advertising

Planningmobile

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 planning specialist

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

Most mobile campaigns within agencies are bought by Online buyers. 37% respondents saidMobile Specialist buyers have responsibility within their agencies

Many were unsure who had buyingresponsibility within their agency

Mobile campaign buyer

2%

5%

5%

3%

3%

38%

20%

9%

10%

17%

25%

24%

15%

42%

25%

22%

36%

33%

42%

14%

25%

31%

28%

27%

22%

22%

8%

8%

34%

35%

16%

18%

9%

25%

5%

0% 50% 100%

Search specialists

CEO / MD

Account teams

Planning Director

Strategists

Mobile specialists

Digital specialists

5 Very active 4 3 2 1 Not Active

Within your company, who do you feel is currently driving the move to mobile advertising?Base: All answered (n=113)

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

Top 2 box – Veryactive / active

62%

53%

27%

28%

22%

15%

115

Driver of mobile advertising in company

2%

2%

9%

11%

30%

7%

9%

27%

38%

27%

27%

32%

30%

31%

21%

42%

39%

21%

11%

13%

23%

19%

13%

8%

9%

0% 50% 100%

Traditional ad agencies

Advertisers / clients

Media owners

Digital ad agencies

Mobile industry

5 Very active 4 3 2 1 Not Active

Outside of your company, who do you feel is currently driving the move to mobile advertising?Base: All answered (n=114)

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

Top 2 box –Very active /

active

57%

49%

36%

11%

9%

Driver of mobile advertising outside company

Budgeting

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

3%

20%

39%

12%

26%

0 0.5 1

2008

2009

2010

2011

2012

By 2010 62%believe mobilewill be astandard part ofclient budgets

Mobile uptake

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

86%

10%

3%

0%

0%

0% 50% 100%

0-20%

21-40%

41-60%

61-80%

81-100%

Almost nine-tenths of current ad campaigns contain 20% or less mobile advertising

% of mobile component in 2008

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

% of mobile component in 2010

General view ofmobile

Which categories are best suited to mobile advertising?Base: All answered (n=115)

Entertainment is seen as the category best suited to mobile advertisingLeisure & travel, Telecomms and Retail are also seen as suitable

Categories best suited to mobile

“The youth market are highlyengaged users of mobile devices,as well as the technology market –there is a strong affinity betweenmobile and technology.”

Advertiser

Categories that people think work well

“Entertainment, mediaand music works well –looking up films, venues andcontent.”

Agency

“Youth brands work well. Andthe B2B industries as businesspeople are very tech savvy.”

Agency

“Entertainment, directresponse, FMCG andAutomotive are probablybest suited to mobile.”

Agency

“Youth, gaming, clothing,entertainment, music – all of thesewould work well.”

Agency

“Youth brands, especially teens – thereforeclothes, music, electronics, drinks.”

Agency

Hype or reality?

22%

25%

30%

59%

75%

70%

41%

70%

78%

30%

0% 50% 100%

Mobile advertising spend is more than 5% of total

ad spend in the UK today

Mobile search will overtake PC search by 2015

The current mobile audience is 75% young males.

Mobile will be the primary medium for

communicating with the 12 to 24 age group.

Location based ads are effective today

I agree I disagree

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

But Search is not seen as a driving force

• Respondents did not see Search as having a lot ofsynergy with Mobile

‒ Only 7% understand Mobile Search well, 57% have nofamiliarity with Mobile Search

‒ Only 25% believe Mobile Search will overtake PC Searchby 2015

And Search experts are not engaging with mobile

• Only 3% of mobile campaigns are bought by a Searchspecialist compared to 30% by a mobile specialist and 52%by the online buyer

• 11% think that Search specialists are actively driving themove to mobile within their companies

• .... compared to 62% of digital specialists and 53% of Mobilespecialists

Even CEO’s / MDs are seen as driving mobilemore than Search specialists!

Planning andreporting

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

Sufficient information for campaign planning?

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 fromtheir mobile campaign analysis

Data reported for mobile campaigns similar to online

2%

2%

0%

0%

3%

0%

2%

0%

0%

3%

3%

2%

3%

8%

5%

12%

12%

5%

7%

12%

14%

17%

22%

25%

39%

49%

54%

41%

24%

36%

24%

34%

20%

37%

36%

22%

19%

36%

29%

47%

58%

47%

54%

25%

20%

15%

14%

19%

41%

2%

0% 50% 100%

Unique users

Delivered impressions

Click through

Cost per action

Customer journey tracking

Ad awareness

Consideration

Message association

Purchase intent

ROI

5 Very critical 4 3 2 1 Do not need it

What information do you need reported for optimisation?Base: All answered (n=57) Mean

4.19

4.17

4.15

3.94

3.94

3.61

3.54

3.47

3.26

3.26

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

Info needed for optimisation

Uncertainty over mobile

“We find out about mobile fromour media agency who makerecommendations, or fromindividuals coming to us topresent on mobile.”

Advertiser

“I’ve had bad experiences previously, Iwas oversold expectations.Creative executions are poor, andthere is low reach compared to othermediums.”

Advertiser

“I’d like to see demonstrations ofhow mobile works with othermedia. This and case studies ofother campaigns would be reallyhelpful to do more on mobile.”

Advertiser

“I’m still not sure what’s in it forthe consumer? What is theunique functionality of mobileadvertising over other formats?”

Advertiser

Summary

• A distinct lack of knowledge and understanding of mobile advertisingwithin 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 planningmobile is insufficient‒ As is the information reported back on their campaigns

Summary

Ideas for making it work

“I’d need to see a largerpenetration of my targetmarket using mobile before Iuse it. Also faster mobileinternet speeds wouldhelp.”

Advertiser“I’d like to know what measurementbenchmarks I should be using.”

Agency

“The universe of potential ‘interactive’audience is unknown. I’d liketransparency in audience data andbehaviour.”

Agency

“Until more people haveadvanced handsets it’s a hardsell.”

Agency

“There’s a lack of information abouteffectiveness , I'd like more casestudies and increasedgeneral knowledge.”

Agency