Mobile AdReaction Study Africa & the world

By: Charles Foster – Millward Brown AME

“All roads lead to mobile in Africa “ - Marketing in the Mobile World

Mobile AdReaction

Study

2

Marketing in the

M O B I L E WORLD

Flow: 1. The size of the mobile opportunity… 2. How do individuals use and relate to

smartphones and tablets. 3. Exploring the roles that mobile can

play in the marketing mix. 4. Rules of engagement that mobile

marketers need to RESPECT in order to be successful.

5. Best practice guidance for delivering effectively in the mobile world.

AFRICA OVERVIEW

Conducted in 18 countries around the world for the past 5 years, including three countries in Africa for the 1st time in 2012

5

MEXICO

U.S. CANADA*

BRAZIL*

INDIA THAILAND**

KENYA NIGERIA

SOUTH AFRICA

CHINA KOREA**

INDONESIA**

FRANCE* GERMANY

ITALY

SPAIN TURKEY

UK*

*Quantitative only; **Qualitative only : 6,000 quant interviews – CAWI + mobile in Africa & India

Key Findings AT A G L A N C E

6

Mobile devices are increasingly central to our lives, so there is

huge opportunity for growth in mobile communications

1. However, while most consumers will tolerate mobile marketing, and attitudes are more positive in Africa than rest of world, few consumers

are favorable toward it

2.

Mobile is highly effective at brand building and also very

flexible - it can play a number of diverse roles in

the media mix

3. The industry can improve attitudes toward mobile

marketing by demonstrating greater respect for the

platform and the audience

4. Marketers can use mobile websites, apps and ads to grow brands IF simple best practice rules are

applied more conscientiously

5.

Opportunity Toleration

Effective RESPECT Best Practice

7

the huge OPPORTUNITY

MOBILE USAGE on the rise

Mobile is on the move

*Source: Morgan Stanley Research; **Source: Informa WCIS; ***Source: StatCounter Global Stats, 9/12; ****Source: Informa; *****Source: We are social 8

1.5 BILLION

smartphones and tablets will be installed globally by mid 2013 – overtaking laptops and PCs*

37% GROWTH

in the number of global 3G subscribers in the past year**

13% OF WEB

traffic comes via mobile – more than double last year; Mobile traffic share already over 50% in India*** and 65% in Africa

0.8 BILLION

mobile internet users in Asia at end of 2012****; same number of mobile subscribers in Africa*****.

Some key African statistics:

Data supplied by www.inmobi.com, head of Mobile at Google South Africa: On Device Research. 9

100 BILLION Mobile Advertising Impressions are served across Africa annually

50% OF PEOPLE ACCESS THE INTERNET VIA MOBILE PHONES IN NIGERIA, 70% IN EGYPT, 55% IN GHANA, 54% IN KENYA AND 57% IN SOUTH AFRICA

SMART PHONES ARE OUTSELLING COMPUTERS 4 TO 1

LOCATION BASED ADVERTISING IS SET TO GROW AS 2 OUT OF 3 SEARCH QUERIES HAVE A LOCATION BASED ELEMENT

TOTAL AFRICAN MONEY TRANSFER IS EXPECTED TO REACH USD200BILLION IN 2015 AND ACCOUNT FOR 18% OF THE CONTINENTS GDP.

Africa Research industry - mobile Mobile Vs Toothbrushes!

10

Mobile devices are seen as indispensable efficiency tools, especially so in Africa. Both personal and business tools.

Please indicate how strongly you agree or disagree with the following statements about your mobile device:

My mobile device is my primary tool for organizing my personal life

My mobile device is indispensable because I’m always on the go

Having a mobile device makes me more efficient

Africa Global

Strongly Agree

80% 33%

60% 30%

47% 21% 38%

62%

78%

33%

24%

15%

Strongly Agree

Somewhat Agree

54%

53%

75%

25%

32%

18%

48%

64%

88%

35%

23%

8% 33

India: 44% France:11%

Brazil: 44% China:9%

Turkey: 24% Canada:8%

18%

14%

11%

16%

16%

13%

13%

12% Reading Texts

SocialNetworking

Web or emails

Calls

Mobile devices act as central hubs in our lives; users spend more time social networking texting & on mail than making calls.

12

Social Networking

19%

Web or email 14%

Calls 11% Texts

15%

Apps 15%

Music 16%

Banking 3%

Games 4%

Video 3%

Share of Smartphone time spent in Africa (vs Global average)

(+6)

(+2)

(-5)

(+2)

(+4)

(na) (-6) (-5)

(0)

*Nigeria: 16% *Kenya:18%

14%

14%

13%

14%

15%

13%

12%

11%

121212

*Nigeria: 12% *Kenya:16%

Massive potential for growth in mobile marketing…

*Source: eMarketer; (Display only)**Source: Gartner Group 13

JUST 1% OF SPEND

globally is committed to mobile marketing*

2.5X BY 2016 mobile ad spend predicted to grow from

$6.4 billion (2012) to $18.6 billion (2015)**

ASIA LEADING

Asia/ Japan already biggest region ($4.3bn in 2012) and rising fast (est. $9.5bn in 2016)**

ARE BRANDS WELCOME

ATTITUDES toward mobile

marketing formats

in this intimate space?

14

Most users will tolerate mobile ads; some more actively embrace them, but in Africa we’re much more positive towards them

Sample: smartphone SA and global averages 15

Please indicate how strongly you agree or disagree with the following statements about your mobile device:

30%

51%

46%

66%

21%

16%

17%

22%

I enjoy playing Advergames (games that incorporate ads/brands)

I'm happy to share my location to get more

relevant services and offers

I'm happy to see ads in my apps as long as the

apps are free

I'm happy to see ads on mobile websites as long as the websites are free

to access

38%

49%

58%

66%

18%

13%

15%

15%

39%

50%

46%

66%

25%

17%

23%

19%

Strongly Agree / Somewhat Agree

Neither Agree Nor Disagree

Africa Global

Strongly Agree / Somewhat Agree

66% 42%

50% 38%

50% 41%

36% 27%

India: 56% Canada: 12%

China/Turkey: 39% Canada: 28%

India: 59% Canada: 24%

Mobile ads are viewed more positively in Africa and India; attitudes to ads on tablets are generally also more favorable. But…

Sample: smartphone users 16

How would you characterize your attitude towards advertising on mobile phones/ tablets?

11

11

12

13

13

14

17

19

19

22

23

30

43

48

48

23

42

Canada

US

Spain

France

Germany

UK

Turkey

Italy

Mexico

China

Brazil

South Africa

India

Nigeria

Kenya

Global Average

Africa Average

VERY/SOMEWHAT FAVORABLE, %

Sample: tablet users

9

16

18

22

28

25

28

26

19

30

29

35

51

39

55

29

43

Phones Tablet

Telemarketing

Games

Direct mail

Product placement

Local deals

Newspaper ads

Magazine ads

Billboard ads

Cinema ads

Radio ads

TV ads

17 VERY/SOMEWHAT FAVORABLE, % Non Digital

How would you characterize your attitude towards advertising on….?

Attitudes toward advertising on ‘non digital’ media are generally reasonably favourable.

Africa Global

71 51

69 51

58 41

69 48

64 50

65 47

46 44

47 38

41 32

41 25

41 28 30

37

40

45

46

51

55

63

64

67

67

43

47

37

46

56

78

70

75

52

75

80

50

40

45

51

35

67

67

70

58

66

65

Non-opt-in email ads

Mobile ads

Online ads with video

Online music players

Games

Social media ads

Opt-in email ads

Online search ads

Websites/Microsites

Online display ads

Social media news feeds

18

How would you characterize your attitude towards advertising on….?

However attitudes toward mobile ads (and digital in general) are less favorable than other media channels

Africa Global

69 42

57 36

48 36

50 39

47 45

53 33

41 25

37 23

45 28

42 23

18 18 18

30

32

35

37

39

40

40

41

44

59

13

48

55

42

47

65

53

59

58

64

75

22

48

47

34

40

56

47

50

45

62

72

VERY/SOMEWHAT FAVORABLE, % Digital

18 111888USA dislikes the most: 9%

5

15

25

35

45

55

40 50 60 70 80 90 100

What’s driving advert favourability?

Sample: smartphone users 19

Mobile ad favorability vs. device importance

Mobi

le Ad

Fav

orab

ility

Having a mobile device makes me more efficient

BRAZIL

GERMANY FRANCE

CANADA

UK

US

MEXICO ITALY

CHINA

TURKEY

SPAIN

INDIA

NIGERIA KENYA

SOUTH AFRICA

Great fav in markets where users agree, mobile = a more efficient life

Opportunity for products & services that seek efficiency as part of their proposition – e.g. Mobile Money, Mobile banking, Paying bill etc….e-commerce ….

Qualitative Firefly Insights: Mobile ads can be associated with many positive archetypes...

COMPANION

“Offers information in different ways like a solution provider”

MEDIATOR

“I can compare prices, features and brands, before deciding on

what to buy”

SERVANT

“All my ‘questions’ about the brand/product are

answered directly”

HERO

“Offers help when I’m in need”

20

BULLY

“I hate it when ads interfere with my online

activity, asking me to click something that is

unclear”

THIEF

“It steals the little space I have on my screen”

VAMPIRE

“It enters your space, as if it were going to harm

your phone”

REBEL

“It's rebellious, it interrupts me while I

play or work”

BUT if it invades clumsily, negative associations can prevail

23

AND CAN PLAY MANY ROLES

MOBILE i s

FLEXIBLE

IN THE MEDIA MIX

Mobile ads have a greater impact on all brand metrics than online ads & are even higher than this in Africa

24

MOBILE ONLINE +2.1

+4.0

+2.2

+1.3

+1.2

Source: Dynamic Logic MarketNorms for Online, last 3 years through Q1/2012, N=2,211 campaigns, n=2,804,525 respondents; Dynamic Logic’s AdIndex for Mobile Norms, data from last 3 years through Q1/2012, N=181 campaigns, n=127,191 respondents.

Percent Impacted (Δ)

Aided Brand Awareness

Brand Favorability

Purchase Intent

Ad Awareness

Message Association

+5.1

+17.3

+9.9

+2.5

+3.4

But the novelty factor has worn off in the developed markets with most metrics trending down... Africa has a window of opportunity

Huge variation in effectiveness between best and worst performing mobile display ads – Creative critical

Source: Dynamic Logic’s AdIndex for Mobile Norms, data from last 3 years through Q1/2012 Overall Mobile N=181 campaigns, n=127,191 respondents. Delta (Δ)=Exposed-Control

26

Percent Impacted: Delta (Δ)

Aided Brand Awareness

Brand Favorability

Purchase Intent

Mobile Ad Awareness

Message Association

+16.3

+4.8

-4.3

+41.9

+17.3

+26.4

+10.1

-1.3

+14.3

+3.8

-5.2

+17.0

+4.3

-5.7

Mobile Best Performers Overall Mobile Performers Mobile Worst Performers

-0.5

11%

11%

20%

22%

16%

35%

45%

Sample: smartphone and/or tablet users, AMAP and global averages 27

Which of the following actions have you taken as a result of seeing a mobile ad?

Mobile display ads are just one element of a mobile campaign; use display to drive traffic to an optimized website for continued engagement

Beyond brand impact and interaction, mobile ad exposure mostly drives mobile website visitation and brand recommendation.

Africa Global

41 33

33 22

18 19

19 15

17 12

11 16

13 14 16%

15%

16%

18%

20%

36%

44%

11%

6%

15%

16%

17%

30%

34%

Visited the brand website

Clicked/Interacted with ad

Looked for brand in a store

Recommended the brand

Sent ad to a friend

Visited a site for similar brand

Purchased the brand

166

India: 46%

28 Sample: smartphone AFRICA and global averages

What types of companies or brands would you most like to see delivering services or features for your mobile devices?

Mobile users want content from many categories Fashion, telco’s and airline content particularly popular in South Africa; Tech/Telco particularly popular in Kenya – mirrors local activity, whilst Retail & QSR's are low & well below global averages ; Fashion & Online shopping particularly popular in Nigeria, reflective of local cultures & preferences, with restaurants & QSR’s low Vs global

Sample: smartphone AFRICA and global averages

Quick service restaurants

Automotive companies

Hotels

Newspapers or magazines

Online shopping sites

Drink products/brands

Retail stores

Sports teams/leagues

Technology companies

Telecommunication companies

Local restaurants

Food products/brands

Airlines

Banks/Financial services

Fashion/Designers

16

18

24

26

26

29

30

30

30

30

31

33

37

44

45

12

31

29

32

37

22

22

39

58

58

27

30

23

46

38

9

22

26

31

48

18

16

31

35

44

10

25

30

29

50

Africa Global

44 26

40 31

30 26

29 26

23 32

44 25

41 31

33 24

23 27

23 19

37 37

30 32

26 26

24 17

12 23

30

The R.E.S.P.E.C.T PRINCIPLES

for a brand’s

MOBILE SUCCESS

Relevance

Engagement

Surprise & delight

Play to strengths

Exchange

Competence

Time & place

RESPECT for the mobile audience and platform will ensure a constructive future

31

and platform

32

MOBILE WEBSITES, AND APP’S

MARKETING BEST

PRACTICES

f o r

Most kinds of mobile marketing can improve brand opinions if done well. ‘Deals’ less important in Africa possibly due to lack of familiarity with this types of mobile marketing activity

When using your mobile phone or tablet, what can improve your opinion of a brand?

They let me do something entertaining like play a branded game or listen to a

free song

They send or display information specific to my geographical location (like locations of stores, promotions)

They send the latest breaking product news

They send me Facebook/ Twitter posts with links that work on my mobile device

They send or display deals or coupons

They offer an app for my mobile device

Their mobile website makes it easy to download their app

They have a good mobile website

12%

24%

15%

22%

26%

37%

40%

47%

18%

20%

33%

31%

32%

43%

47%

44%

19%

13%

20%

24%

34%

35%

41%

48%

Africa Global

46 34

43 29

38 30

31 35

26 20

23 26

19 21

16 20

What makes a good mobile website? Ease of mobile search especially important in Africa

Unique to screen

Speed & display

Targeted Includes location based

features

Looks better than the brand's regular desktop website

More fun than the brand's regular desktop website

Different features to the brand's regular desktop …

Easier to use than the brand's regular desktop website

Displays clearly on my mobile device

Loads quickly

Easy to find via mobile search

15

14

24

23

22

58

73

65

Africa Global

71 47

73 64

63 53

26 32

21 25

22 21

15 24

18 23 25

17

23

22

33

69

78

76

13

15

18

19

24

63

68

71

34

32222

India: 49%

Mobile websites should be fast and functional

35

Simple is safest until network speeds improve

What makes a good mobile website?

don’t: feel compelled to outdo your online website

forget mobile users are goal directed

do: make it fast

make it clean

make it easy to use Balance entertainment with competence

59

79

49

51

36

42

48

47

25

29

17

21

23

Not too complex

What makes a good app? Ease of acquisition especially important in Africa

Sample: smartphone and/or tablet users, AMAP / AFRICA and global averages 36

Easy to acquire

Competent

Clear

Africa Global

65 59

77 54

43 31

43 32

33 35

35 38

40 47

39 32

20 23

22 27

16 18

19 19

16 19

75

77

39

37

32

30

34

34

22

15

18

19

14

60

74

40

40

32

33

39

35

14

21

12

16

11

It is free to download

It is quick to download

It is easy to find on the brand’s website

It is easy to find in my device’s app store

It doesn’t bug me for a rating too often

It works for all software versions

It doesn’t crash

It has a clear and comprehensive description in the app store

It offers different features than the brand’s regular desktop website

It is easier to use than the brand’s regular desktop website

It looks better than the brand’s regular desktop website

It is more fun than the brand’s regular desktop website

It includes location based features

32

France: 21%

47

US: 53%

Make apps easy to acquire and easy to use

37

What makes a good mobile app?

don’t: crash (don’t be too resource intensive)

build one unless it will be used regularly

feel compelled to make it too complex

bite off more devices than you can chew (better no app than a poor app)

do: be free if possible and easy to find

clearly explain what you offer, and what you’ve updated

focus on ease of use

deliver something of value

Key Findings AT A G L A N C E

38

Mobile devices are increasingly central to our lives, so there is

huge opportunity for growth in mobile communications

1. However, while most consumers will tolerate mobile marketing, and attitudes are more positive in Africa than rest of world, few consumers

are favorable toward it

2.

Mobile is highly effective at brand building and also very

flexible - it can play a number of diverse roles in

the media mix

3. The industry can improve attitudes toward mobile

marketing by demonstrating greater respect for the

platform and the audience

4. Marketers can use mobile websites, apps and ads to grow brands IF simple best practice rules are

applied more conscientiously

5.

Opportunity Toleration

Effective RESPECT Best Practice