Transcript Reference for Title Graphic - Mobile Marketing Association

Future of Mobile Advertising
Pavan Lee
(Li, Peiwen)
Sr. Research Manager
Mobile Media,
Microsoft Corporation
Stuart
Knapman
Scott
Haiges
Partner
President
Essential Research
ROI Research
Warm-Up Exercise:
U.S. Mobile Market Size
 What is the U.S. mobile penetration?
– 90%
– 17% are smart phone owners
 How many U.S. mobile content subscribers have
Internet access?
– 137 million
 How many people are actively using mobile
Internet?
– 67 million
– 56% are smart phone owners
Source: Nielsen Mobile Internet & CTIA Custom Research 2009; M:Metrics 2010
While Excited About the Opportunity,
We Are Aware of the Challenge
Microsoft is Focusing on Multi-Screen Advantage
Microsoft Commissioned this Research
to Minimize the Knowledge Gap
Research Questions
Methodology
 Mobile consumptions and
behaviors across 10 verticals
 Qualitative
 The role mobile plays in the
media mix
 Consumers’ attitudes towards
mobile
 Opportunities mobile present
to marketers
 Differences between
Smartphone and iPhone users
– Focus groups in DC and NY
– Smartphone & iphone owners
– Partner: Essential Research
 Quantitative
– Online survey
– Smartphone and iPhone owners
– Partner: ROI Research
Our Research Uncovered
Three Main Themes
1. Smartphones
Are Significantly
Changing
Consumers’
Relationship
with Digital
Media
Smartphones Are Highly Personal
Devices: Enter with Caution
 Brands require
permission to
enter
 But high
engagement
means rich
opportunities
“I sleep with my mobile on the pillow next to me”
Female, 25-44, Smartphone user
Mobile Media Consumption
is on the Increase
 Mobile is 3rd highest media
channel consumed
 50% expect their mobile
internet access to increase
in next six months
 65% say mobile internet is
the most important feature
when considering a new
phone
The Role of Mobile vs. Other Screens
is Becoming Clear
Media
Extension
Message
Interaction
Side-Loading
Unique
Behaviors
Half of Your Audience Use Mobile After
Seeing an Ad in Other Media Channel
Ads Seen:
Look for More
Info On:
76%
40%
58%
37%
69%
37%
62%
37%
57%
33%
84%
/
Any Channel
53%
Look for More
Info On:
1/3 Use Both Mobile and Online
Ads Seen:
Look for More Info On:
37%
31%
33%
32%
+
2. Despite Claimed
Resistance to
“Mobile
Advertising,”
Consumers
Are Actively
Welcoming
Brands In
Perception of Advertising Saturation:
Fear that Mobile is Next
But in Reality, Consumers Welcome
Great Mobile Advertising
“Now we are talking about this, I’ve realized I actually do elect to hear
about a lot of products. A lot of this is really advertising I guess.”
Male, 35-44, iPhone user
Location-Based Advertising Opportunity
“I get emails on my phone
telling me somewhere has
a sale on and I end up buying
things I probably don’t need.”
Male, 25-44, Smartphone user
61% of consumers are
interested in receiving
location-based coupons
and offers
Mobile Advertising Driving Actions
17% percent of respondents
recall seeing a location-based
ad on their mobile phone.
Activities that frequently
result from seeing locationbased mobile ads…
36%
Go into a
store
42%
Look for more
information
35%
Use a
coupon
26%
Made a
purchase
3. The
Opportunities
Differ from
One Vertical
to the Next –
But None Are
Excluded
There is Growing Confidence in Using
Mobile Phones to Make Purchases...
Percent who say they are very/extremely
comfortable making purchases via mobile
Entertainment
Travel
CPG
34%
27%
24%
…And Consumers Recognize the Potential of
Mobile Engagement with Different Verticals
Social Sharing
Mobilized
Brand Comms
Location-Based
Services
Personal
Style Assistant?
…And Consumers Recognize the Potential of
Mobile Engagement with Different Verticals
Mobile Coupons
Shopping
Assistant
Location-Based
Services
Billboard
Interaction
Enable MultiScreen Strategy
Embrace
Side-Loading
POS
Enhancement
“I think this is all pretty cool… This could
either save me money or make me spend
more, I’m not sure!”
Female, 25-44, Smartphone user
Summary
 We need to redefine “mobile advertising”
if we are to really understand the opportunities,
particularly within multi-screens
 We need to be inspired by changing consumer
behaviors and needs, to think differently about
how brands can best add value in the mobile
environment
“If it can better our lives, it’s better advertising”
Female, 25-44, Smartphone user