Maximizing Mobile's Impact in the Marketing Mix

Vassilis Bakopoulos, Head of Research, MMA

John Matthews,President, Marketing Evolution

ANA WebinarWednesday, October 22, 2014

Value of Mobile in the mix

1. The promise of mobile

2. Key Challenges

3. Results

4. Implications

The promise of Mobile

4

5

Nothing is more

Personal

Nothing is

more relevant

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Nothing is

more engaging.

It’s always on. Even when you are not.

We asked 20 CMOs:

How is mobile changing your business?

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Where is it not changing our business is probably the more

appropriate way to think about it…

There is not an industry on the planet that’s not

trying to figure out mobile

The internet 10-15 years ago could be ignored.

But mobile is surpassing everything else. It already happened and we are still trying to figure out what we do

with it.

We have limited dollars working against behemoths…

So we have to be smarter.

Key Challenges

14

We are still grappling to figure out what the right level of

investment is

If it can’t be measured, it can’t be done

16

Source: MMA/Neustar marketer study,

N=400

47%1. Tight budgets/ We can’t

afford to decrease spending

in other channels

46%2. Difficulty to measure impact

of mobile and compare to

other channels

16

We all keep making the same mistakes

Which of the following tactics has your organization used?

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38

40

40

42

43

43

53

54

56

57

60

65

0 10 20 30 40 50 60 70

Mobile optimized site

Rich Media

Mobile Coupons, passbook etc

Location targeted advertising - realtime

Push based alerts

Mobile Audio

Mobile messaging

Mobile display

Paid search

Mobile Video

Social media mobile advertising

Mobile apps

Q5. Which of the following MOBILE marketing TACTICS has your

organization used?

I don’t want to see a brilliant mobile

example;

I need an example of mobile being used brilliantly to make a campaign

stronger

SMOX.MeSmart Mobile Cross Marketing effectiveness

20

21

22

23

24

Thank you!

25

http:///

PARTNERSSUPPORTERS

25

Insights Are On Their Way

26

Methodology

3. Wemeasure

effectiveness:

We will use Surveys to

measure Brand KPIs

1. We use a panel of 500K

people.

2. We track Exposure to all

media

4. We provide the following deliverables

Budget Optimization

Software

Media plan optimization and forecasting

based on specific marketing objectives

and targets

Measurement, Modeling &

Analytics

Mid-course optimization, and end of

campaign results

We are exploring other KPIs that are important,

like app downloads.

Results

28

29

Case Study:New device launch, AT&T

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Campaign Details

30

MEASUREMENT PARAMETERS

Awareness

Consideration/Image

Purchase

KEY KPI / GOALBuild Awareness for the new

device offering from AT&T

Media Share

TV 93%

Print* 1%

Online Desktop 5%

Mobile 1%

Target 18+

Data Collection 9/17/13-10/28/13

30

Mobile delivered nearly 2x the impact /dollar spent compared to TV

0

5

10

15

20

NationalTV

OnlineDesktop

Print Mobile

People Impacted:Device Awareness

0

1

2

3

4

5

6

7

NationalTV

OnlineDesktop

Print Mobile

Efficiency (Impact/$): Device Awareness

Tota

l Im

pac

t d

ue

to

Exp

osu

re (

MM

pe

op

le)

Pe

op

le Im

pac

ted

pe

r D

olla

r

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Significant Opportunity for reallocation

32

0

2,000

4,000

6,000

8,000

10,000

12,000

TV

Print

Digital

Mobile

Spend to Impact Response By Media : Awareness of new Device

Spend

Tota

l Pe

op

le Im

pac

ted

(M

M)

TV

Online DisplayMobile

Print

32

The optimal mobile allocation was 16%

93%

72%

1%

8%

5%

5%

1%

16%

Bu

dg

et

($M

M)

Mobile

Online Desktop

Print

National TV

Actual Budget

Optimized

Budget ( based

on Awareness)

3333

Would the new budget bring better results?

34

People Impacted(With Current

Spend)

Mobile .5MM

Online Desktop 1.1MM

Print .7MM

National TV 18.9MM

Total

* Upside potential for mobile is +17% but 12% is incremental considering the decrease from TV

People Impacted(With Current

Spend)

Upside Potential People Impacted

(Optimized Spend)

Mobile .5MM 3.7MM (+ 17.5%)

Online Desktop 1.1MM 0.3MM (+ 1% )

Print .7MM 3.6MM (+ 17%)

National TV 18.9MM -1.9MM (- 9%)

Total +5.7MM ( 27% )

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By reallocating spend to mobile, there is an incremental potential of 2.5 million people or +12%*!

That’s almost the equivalent of the population of Chicago!

Would you ignore Chicago?

35* Upside potential for mobile is +17% but 12% is incremental considering the decrease from TV 35

Same Budget

Better Results

36

37

Banner Size A performed 2.5x better

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0%

2%

4%

6%

8%

0 3 6 9 12 15Frequency

% I

mp

act

Am

on

g

Ex

po

se

d

2.5x

Banner Ad Size A

Banner Ad Size B

38

Mobile was more effective at driving awareness among men

0%

4%

8%

12%

16%

20%

0 2 4 6 8 10

% I

mp

act

Am

on

g E

xp

osed

Mobile had 70% more impact

among Males

Frequency

Mobile Males

Mobile Average

39

To Summarize

40

Mobile delivered twice the impact (brand

awareness) per dollar spent compared to TV.

41

Mobile should have a higher allocation in the

marketing mix

42

Higher mobile allocation would improve the

overall results

43

44

Implications

45

10/22/201446

At&T

Impact

Spend

Creative

optimization

Targeting

Format

optimization

Mobile

Making Mobile work harder

What if you optimized your

entire marketing budget to

take advantage of mobile?

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A costless way to boost sales across the board

= 0.4%x

That seemingly small number can have a big impact for first movers.

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A CPG Player

with $71B of

revenue.

Could create

$280M of new

annual revenue

– the size of a

whole new

brand!

And $1.1B of

additional

market cap.

A first mover advantage that can be a multi billion $ value for your business

Company

Total Media Spend

Projected Optimized

Mobile Spend

Market Cap - Mid 2014

2013 Revenue

Potential Incremental

Revenue

Market Value to Revenue

Ratio

Potential Impact

on Valuation

Consumer Technology Company

$656 $105 $573,030 $170,910 $667 3.4 $2,235

Large Consumer Goods $1,019 $163 $299,000 $71,312 $278 4.2 $1,166

Global Retailer $980 $157 $248,410 $476,294 $1,858 0.5 $969

Global Consumer Packaged Goods Company

$3,149 $504 $220,830 $84,167 $328 2.6 $861

Multi-National Beverage Company

$3,300 $528 $185,200 $43,900 $171 4.2 $722

Global Telecom Firm $1,954 $313 $184,560 $128,752 $502 1.4 $720

Global Diversified Financial Services Firm

$374 $60 $142,000 $76,366 $298 1.9 $554

U.S. Retailer $750 $120 $37,900 $72,600 $283 0.5 $148

Regional U.S. Bank $40 $6 $14,670 $5,246 $20 2.8 $57

There is a significant value

creation opportunity for

marketers who invest in mobile

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1.Mobile is quickly becoming a key priority for

CMOs

2.Marketers need more proof about the real ROI of

mobile

3.SMoX provides evidence that brands can

achieve better results with the same budget

4.There is a significant value creation opportunity

for marketers who invest in mobile

To Summarize

Questions?

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