Reciprocity, Rewards and Real Breakthrough


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Exploring the role of value in mobile advertising

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Reciprocity, Rewards and Real Breakthrough

  1. 1. Reciprocity, Rewards and Real Breakthrough E X P L O R I N G T H E R O L E O F VA L U E I N M O B I L E A D V E R T I S I N G
  2. 2. Background This deep dive on what drives loyalty and engagement in mobile advertising has its origins in Millward Brown’s AdReaction study. AdReaction is a biannual study that probes audiences’ attitudes towards advertising. A key finding of the 2012 AdReaction was that tangible value could be key to an effective mobile presence. In the present work, SessionM, a mobile loyalty advertising network, and Millward Brown deep dive into value and explore when and how rewards can be effective in driving brand engagement. 2001 2003 2005 2007 2009 value 2012-2013 ADREACTION MOBILE + SESSION M
  3. 3. AdReaction established that mobile audiences expect tangible value in exchange for their attention and engagement 3 Be mindful of the value exchange and make certain it is commensurate with your audience’s expectations of value. 18% 27% 44% 27% 25% 15% MOBILE VALUE SPECTRUM LATEST PRODUCT NEWS FREE TOOLS e.g., shopping lists, reminders DEALS & COUPONS INTEREST- BASED INFO e.g., recipes, sports scores LOCATION- BASED INFO e.g., store locations, promotions FUN FEATURES e.g., branded game, song downloads A coupon would move me from confident to super thrilled.”
  4. 4. Marketers & publishers are constantly challenged to get audiences to engage. 4 1 In a 2011 study by eyesquare and Google, they found that mobile Google AdWords had a reach of 85% but a dwell time of on 1.9s (.6 seconds less than the corresponding digital ad). Yet while audiences are looking at mobile ads,1 this does not always translate to engagement or affinity for the format. What can help turn this tide?
  5. 5. People love their mobile devices 5 BEYOND ESSENTIAL I take my smartphone everywhere. Life collapses if I forget it.” MULTI- TALENTED My tablet allows me to see details, develop what I want, check or do work; I have more freedom.” LIFE CHANGING I can get information anytime on any device, no matter where I am… it’s there 24/7…super human.” TRULY SMART I always have an answer; my smartphone makes me feel like a hero when I solve problems.” FUN I feel like a wizard when I play and discover new things.”
  6. 6. +2 +2 +1 -2 -6 -2 -5 -8 But that does not yet translate to love for mobile advertising Sample: AdReaction: General Population Online Audience6 7% 7% 21% 21% 18% 22% 24% 27%Opt-In Email Online Display Online Video Ad-Supported Games Online Search Social Media Mobile Non-Opt-In Emails 9% 9% 13% 16% 16% 16% 22% 28% AdReaction 2009 AdReaction 2012VERY/SOMEWHAT FAVORABLE CHANGE How would you characterize your attitude towards each of the following formats of advertising?
  7. 7. Can the Rule of Reciprocity change this? 7 T H E R U L E O F R E C I P R O C I T Y REQUIRES THAT ONE PERSON TRY TO REPAY what the other person HAS PROVIDED - ROBERT CIALDINI
  8. 8. We see reciprocity play out at a primal level.
  9. 9. Kids seem to intuitively know the rewards of helping one another.
  10. 10. Is it possible for brands to apply reciprocity in mobile to break through and build lasting brand love?
  11. 11. We tested this hypothesis… 11 We explored consumers’ relationship with mobile advertising to better understand if and how reward-based mobile advertising impacts brand engagement and brand loyalty with consumers. QUANTITATIVE QUALITATIVE Mobile Advertising and Value Exchange Interplay between Mobile Advertising and Value Exchange Who: Mobile Population n=500; Session M Audience n=500 What: Attitudes towards mobile advertising and value exchange systems How: Online or mobile survey Who: SessionM Users What: Explore the relationship between consumers & reward-based mobile advertising How: 25 respondents – 1 week of blogging on IdeaBlog® followed by 12 60 – minute individual, in-depth interviews via webcam-enabled uViews
  12. 12. 12 Executive Summary The Value Exchange Equation is the activation of the rule of reciprocity in mobile. It can expand an audience’s brand consideration set and help create an enduring relationship with the brand. 1 Consumers presently reward brands that deliver on that value exchange with their loyalty.2 Reward-based mobile advertising is an answer to the value exchange equation. It opens the door of consumer receptivity and brand engagement. 3 Reward-based mobile advertising succeeds when the advertising execution is timely, chosen & relevant and the reward is predictable, tangible & chosen. 4 Advertisers need to be mindful of the value exchange they offer through their mobile marketing efforts and make certain it is commensurate with their audience’s expectations. 5
  13. 13. The Mechanics O F R E C I P R O C I T Y I N M O B I L E
  14. 14. Consumers have high expectations for mobile 14 And audiences are receptive to mobile marketing when it’s done right. Mobile Will Offer an Exchange of Tangible Value 3 Mobile Will Know Who I Am and Target Accordingly 21 Mobile Will be Competent
  15. 15. What exactly is “tangible value” in a mobile ad experience? 15 IT IS WORTH THE TIME INVESTED How much time does it take and is it worth it? IT IS USEFUL TO ME OR MY FAMILY IT IS ENGAGING It is something I would use or be interested in? Is it amusing or informative? Would I watch it again? For me to click, ads need to have an incentive. It is all about the value of my time.” When I can make use of the product, it makes a big difference.” I love ads with games or watching videos. If it makes laugh, that is a bonus.”
  16. 16. Tangible Value, like Rewards, can amplify impact and change the long-term relationship with a brand.
  17. 17. Rewarded audiences have increased interactions with brands 17 15% 17% 12% 20% 18% 14% 34% 28% 21% 36% 26% 19% Clicked/interacted with ad Searched for brand online Looked for brand in a store Visited brand's website Considered purchasing brand Visited brand's social page Have Not Participated in Reward-Based Advertising SessionM Users +9* Which of the following actions have you taken as a result of seeing an in-app ad? +19* +11* +16* +8* +5* * Statistically significant difference between control and exposed group at a 90% confidence level; ^Never Participated in Reward-Based Advertising n=384; Session M users n=500.
  18. 18. Campaigns tested on SessionM, a reward-based platform, had significant increases in all measures of brand effectiveness 18 59% 14% 37% 42% 31% 72% 77% 63% 63% 53% Aided Brand Awareness Mobile Ad Awareness Message Association Brand Favorability Purchase Intent Control Exposed +13* +63* +26* +21* +22* * Statistically significant difference between control and exposed group at a 90% confidence level; ^N=5 campaigns SessionM Campaigns Tested
  19. 19. SessionM outperforms Dynamic Logic mobile norms on all measures of brand effectiveness 19 5% 10% 10% 3% 3% 13% 63% 26% 21% 22% Aided Brand Awareness Mobile Ad Awareness Message Association Brand Favorability Purchase Intent DL Norms SessionM +8* +53* +16* +18* +19* * Statistically significant difference between control and exposed group at a 90% confidence level; DL Mobile Norms v. SessionM Percentage Change
  20. 20. Rewards in Mobile T H E FAC E T S O F R E WAR D - B A S E D M O B I L E A D V E RT I S I N G
  21. 21. “Is it worth my time?” 21 As the mobile environment has gotten more crowded and complex, consumers understand that their TIME has value making it tougher for mobile ads to cut through the clutter and get noticed. Banking Travel Music Social Networking Games News Utility
  22. 22. The VALUE EXCHANGE equation helps consumers constantly assess the worth of every mobile advertising interaction 22 (time)(useful)+engaging= VALUE EXCHANGE EQUATION value Perceived usefulness of an outcome multiplies the amount of time that a consumer is willing to invest to engage with brand The engagement factor adds to the consumer’s willingness to spend time with the brand and increases the chances that they engage with the advertising again The usefulness of a reward has a universal value that breaks through and opens the door to consumer receptivity and brand engagement.
  23. 23. Reward-based mobile advertising has created a currency that acknowledges the value of consumers time & attention 23 Tangible rewards are clear way to provide value within the mobile ad experience and open the door to meaningful consumer engagement. Rewards change the context and open my mind to what they have to say.” If there is a reward attached, I’ll sit through to see what it is.” Rewards put the exposure of the brand in a positive light instead of something forced.”
  24. 24. Advertiser success in reward-based mobile advertising hinges on the success of two finely-tuned elements 24 Execution Timely Optioned Relevant Reward Chosen Predictable Tangible +
  25. 25. Ad TIMING affects audiences’ favorability towards it 25 Adhering to natural breaks is the difference between being perceived as a friend or foe. Does your favorability towards a mobile ad depend on how the ad was presented to you? 75% 25% Yes No Execution I just click out of ads that pop up when I am doing something else or when they don’t make sense for me. If an advertiser gives me the option to choose, I am more willing to engage. It doesn’t pop-in and disrupt what I am doing. It is at a natural entry point. And, it seems like a better message.”
  26. 26. Consumers want the OPTION to choose 1AdReaction: 45% all respondents say providing no way to opt-out can damage opinion of brand26 The act of choosing to engage activates the audience’s attention & shifts the context of the brand exposure from forced to receptive. In AdReaction1, we established the absence of choice can damage a user’s impression of the brand. I don’t want advertising to trick me. I want to be interested in the offer and compelled to click.” Giving you the option to choose to engage with the ad is a huge thing.” Choice frees me up to have an open mind about what I am seeing.” Execution
  27. 27. RELEVANCE draws the audience into the ad experience 27 Demonstrates that an advertiser understands what is important to their audience and won’t waste their time. I expect advertisers to know what I am doing and understand who I am.” It makes me feel different about how I feel about the brand. It is like there is a certain level of respect for the customer.” It is a show of respect when I am shown an ad for something I might be interested in.” Execution
  28. 28. CHOICE of reward is key to consumer receptivity 28 92% 8% Yes, it's important No,it's not important Member Responses I can watch for points and use them for something I can actually use.” If it is for a product I know, a coupon is okay. But, if I did not know about it, then a coupon doesn’t mean anything to me. I want to be able to choose.” Reward FEEDBACK QUESTION Would it be important to you that you could choose the type of reward you can receive when on your mobile device?
  29. 29. Audiences want to be able to PREDICT the value 29 Member Responses Reward FEEDBACK QUESTION After viewing or interacting with an ad, which is your preference for receiving a reward or incentive (i.e. coupon, etc.)? 12% 68% 10% 3% 7% Receiving it as a surprise Knowing for certain I would receive it I would view either favorably Neither favorable I have no opinion on this These ads give me something back whether I like the ad or not.” If there is a reward, I will play.” They (advertisers) appreciate if we look at the ad; but, if not, you still get the idea of what they are trying to say. It is a win-win.”
  30. 30. Audiences most desire TANGIBLE and flexible rewards 30 Preferred Rewards *Most to least preferred 1. Gift cards 2. Coupon or discount of your choice 3. Coupon or discount selected for you 4. Tickets for Events 5. Points towards contest entries 6. Donations to Charity 7. Virtual Currency 8. Access to ad free environment 9. Access to free videos or songs 10. Access to free games 11. Access to exclusive content Reward
  31. 31. Guidelines for Engagement I N M O B I L E A D V E RT I S I N G
  32. 32. Casting the right role for success in mobile
  33. 33. #1 Put people first 33 Avoid tricks or gimmicks that leave the audience feeling empty and betrayed. Recognize the relationship and make it worth their while. “Giving me something for free but then asking for my email is not a reward. That is a trick.” They are stealing my attention and taking my time. My time is valuable.” They are representing me and my interests.” NO VALUE VALUE ADVOCATETHIEF Images selected by respondents in qualitative
  34. 34. #2 Show respect: Don’t be a bully. Be a friend. 34 Audiences tune-out or avoid mobile advertising that forces an experience or demands their attention. They are forcing themselves on me and trying too hard to get my attention. I feel violated.” They are suggesting things: trying to make me happier; enrich my life; and get me interested in things.” NO VALUE VALUE COMPANIONBULLY Images selected by respondents in qualitative “Ads that talk about the things I enjoy and that I like to look at again are the ones I want to have around. When they don’t do this, I want to get them off my screen as soon as possible.”
  35. 35. #3 Be helpful 35 “I look for the advertisers that are going to give me something more. That could be information or a new product I might like.” These ads are a drain on my time. They don’t make any sense for me.” If it is something they are helping me with, they are serving me.” NO VALUE VALUE SERVANTVAMPIRE Images selected by respondents in qualitative Consider what might be relevant or interesting to your audience and focus your attention on giving instead of taking.
  36. 36. F O R S U C C E S S I N R E WAR D - B A S E D M O B I L E A D V E RT I S I N G The Marketer’s Playbook
  37. 37. Execution Best Practices 37 do: don’t: Interrupt. Ads shouldn’t distract or derail users from their mobile goal. Serve audiences personally relevant ads. Bombard users with ads. Audiences are aware of the value of their time. Serve a random ad. An irrelevant ad is a wasted impression. Pair a reward with creative. Rewards are boosters that can break through the clutter. Offer choice in ad exposure. When possible, let audiences select when they want to watch your ad. Use intrusive formats unless context is highly relevant. Consider timing and placement. Wait for a natural break in browsing to serve the ad.
  38. 38. Consider a reward to be something that is currently free. Audiences don’t consider access to content or an ad free environment be a desirable reward. Expect a reward to compensate for poor creative or low brand equity. Reward Best Practices 38 Offer consistency. Audiences like to know when they are getting a reward. Offer users a reward that is flexible and has an element of choice. Vary reward schedule, users appreciate predictability. Provide tangible rewards. Gift cards and coupons are best. Be a bully and dictate the reward. Audiences want to select their reward. do: don’t: