This document summarizes key findings from the SMoX study about optimizing mobile marketing investments. The study found that mobile delivered almost twice the awareness and image per dollar compared to other media. Reallocating a portion of budgets to mobile could drive double-digit lifts in awareness and sales. However, brands are currently underinvesting in mobile, with average allocations around 3% of budget. Applying best practices around formats, channels, targeting, and creative could further optimize mobile results and justify increasing mobile budgets.

1. 10:00!
10:45!
VASSILIS
BAKOPOULOS!
Head of Industry Research!
MMA - Mobile Marketing Association!
SMoX Study!
ESTUDO SMoX!

2. SMoX: What we now KNOW about Mobile!
Empirical Data from Coca Cola, AT&T, MasterCard and Walmart
Vas Bakopoulos,
Head of Research, MMA

3. The greatest transformation in
consumer behavior that we will
see in our life time!

4. 4
2
BN
smartphone
users

5. 5
Mexico is the second largest market in LATAM!

6. What Other Media Gets This Kind of
Commitment?
6

8. 8
What is the value of
mobile to brands?!

9. 9
“We are grappling to figure out
what the right level of
investment is and what
principles need to be applied
for Mobile”!
“We are grappling to figure out
what the right level of
investment is and what
principles need to be applied
for Mobile”!
CMO,
CPG
Company

10. SMoX: the most important
research that the mobile industry
will ever conduct!

11. 11
A global, industry-wide research initiative aimed
to help marketers win in mobile
Associa6on
of
Na6onal
Adver6sers
American
Associa6on
of
Adver6sing
Agencies
Partners

12. Thank you to these Innovation Leaders
Supporters Partners
Associa6on
of
Na6onal
Adver6sers
American
Associa6on
of
Adver6sing
Agencies
12

13. 1
4 5
Leveraging Mobile
ad tech to target DID
Individual Level data
for cross media
exposure
Experimental Design
for media allocation
Track multiple
KPIs, perceptual
or behavioral
Regression
analysis to
identify drivers
Budget
Optimization
Software to
operationalize
insights
2
3
6
Integrated Partners
target DID of panelists
500K
Mobile
panel of
InsightExpress
checks for cross
over in panel and
sends list of
panelists back to
Networks
Ads, tagged by
InsightExpress,
are targeted to
panelist devices
Assess multiple
scenarios of cross
media exposure
and frequency
Brand KPIs /
attitudinal with
Surveys
Foot traffic
with actual
location data
Actual sales with
panel match
How it works:
13

14. Can mobile help me meet my
marketing goals?
What is the optimal mobile allocation
for my campaign?
How can I make my mobile
investment work harder?
14
Our Learning Agenda

15. Our Learning Agenda
Can mobile help me meet my
marketing goals?
What is the optimal mobile allocation
for my campaign?
How can I make my mobile
investment work harder?
15

16. The campaigns we tested cover the entire
purchase funnel
Awareness
Image
Purchase Intent
Foot Traffic
Sales
16

17. TV
Print
Internet
FSI
Social
OOH
Mobile
Variety of media in each campaign mix
17

18. How many people can you convert with mobile?
?
Campaign Average Mobile

19. Mobile Delivered almost twice the
Awareness /Dollar vs. other media
Total People converted with mobile vs.
campaign on average
Device Awareness
AT&T
Campaign
on average
Mobile
1 1.9
x 1.9
Image
Purchase
Intent
Foot
Traffic
Sales
Awareness

20. Mobile Delivered almost twice the Image /
Dollar vs. other media
“Good Card To Carry When Traveling”
MasterCard
Campaign
on average
Mobile
1 1.7
x 1.7
Total People converted with mobile vs.
campaign on average
Purchase
Intent
Foot
Traffic
Sales
Awareness
Image

21. Mobile worked harder than its share and
drove results across the board
Sales
of
sales6%
Total People converted with mobile vs.
campaign on average
Gold Peak
Campaign
on average
Mobile
Top of Mind
Awareness
Home
Brewed Taste
Gold Peak
Campaign
on average
Mobile
4.81 1.81
Foot
Traffic
Awareness
Image
Purchase
Intent
Sales
of
budget5%

22. Proprietary
&
Confiden6al
Mobile was the most EFFICIENT DRIVER of
actual sales
-­‐
50
100
150
200
FSI
Digital
Mobile
TV
*For each index, 100 = average value, Efficiency = Sales Impact
per Media Type/Spend per Media Type
Foot
Traffic
Awareness
Image
Purchase
Intent
Sales

23. In fact, mobile delivered twice the SALES vs.
other media
Walmart
Campaign
on average
Mobile
x 2
21
Efficiency = Sales Impact per Media Type/
Spend per Media Type
Foot
Traffic
Awareness
Image
Purchase
Intent
Sales

24. But does Mobile work in other markets too?
?
Campaign Average Mobile

25. TV OOH
DIGITAL VIDEO/DISPLAY MOBILE VIDEO/DISPLAY
MEASUREMENT
PARAMETERS
16-50
TARGET:
Age
DATA
COLLECTION
2015
1/27 2/28
*OOH includes Cinema. Mobile includes
Video and Display – no Social
Foot
Traffic
Awareness
Image
Purchase
Intent
Sales
Coke ran during Chinese New Year

26. 118
21
61
199
TV Overall OOH (incl
Cinema)
Digital Video Mobile
AdvertisingROI
indexedtoTotal
CampaignROI
Overall index = 100
Mobile offered nearly double the ROI over
TV & was twice as efficient in driving
sales vs. the campaign
Sales
of
sales8%
of
budget4%
Estimated ROI Index by Medium
January-February

27. YES. Mobile drives
results across
the entire
purchase funnel
27
Well, can mobile help me meet
my marketing goals?

28. Our Learning Agenda
Can mobile help me meet my
marketing goals?
What is the optimal mobile allocation
for my campaign?
How can I make my mobile
investment work harder?
28

29. Brands are not investing nearly enough in
mobile:!
Source: adjusted emarketer 2014 data,
excluding search and app downloads
8%!
10%! 11%!
16%!
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
US
AVERAGE
2014:
3%
Optimal allocation of mobile in the mix !

30. What is the REAL
business value of those
allocations to mobile?
30

31. Reallocation to mobile would bring double
digit lift in awareness
Or convert the entire city of Chicago
+12%
Increase in Awareness
31

32. Reallocation to mobile drives significantly
better results with the same budget:!
IMAGE! SALES! SALES! AWARENESS!
7%!
4%!
6%!
12%!
0%!
2%!
4%!
6%!
8%!
10%!
12%!
14%!

33. DOUBLE DIGIT
Aim for a
and improve the performance
of your campaign without
increasing your budget
33
So what is the optimal allocation
for mobile in the mix?

34. Our Learning Agenda
Can mobile help me meet my
marketing goals?
What is the optimal mobile allocation
for my campaign?
How can I make my mobile
investment work harder?
34

35. Using the mobile toolkit to improve results
35
Audio
Video
Display
Rich
Media
Na6ve
Coupons
FORMATS CHANNELS TARGETING CREATIVE
Websites
Apps
Push
SMS/MMS
Social
Search
Email
Audience
Context
Day
part
Loca6on
Weather
Programma6c
Dynamic
Integrated
Closed
loop
to
payment

36. Using the mobile toolkit to improve results
36
Audio
Video
Display
Rich
Media
Na6ve
Coupons
QR
FORMATS CHANNELS TARGETING CREATIVE
Websites
Apps
Push
SMS/MMS
Social
Search
Email
Audience
Context
Day
part
Loca6on
Weather
Programma6c
Dynamic
Integrated
Closed
loop
to
payment

37. Larger Banner improved results for AT&T
Banner Ad
Size A -
Box
Banner Ad
Size B -
Box
Price Effectiveness
150
100 100
250
Better ROI!
Impact in this case is defined as awareness for moto X.
37

38. Mobile audio improved results for Gold Peak
Mobile
Audio
Mobile
Display
Price Effectiveness
250
100 100
350
Better ROI!
Impact in this case is defined as purchase intent for Gold Peak tea.
38

39. Mobile Video improved results for Gold Peak
Price
Better
ROI!
Mobile
Video
Mobile
Display
320
100 100
650350
Manage frequency or rotate creative
Impact in this case is defined as purchase intent for Gold Peak tea.
Effectiveness at
low Frequency
Effectiveness at
High Frequency
39

40. *Mobile
Display
throughout
this
report
refers
specifically
to
mobile
display
adver9sing
with
loca9on-­‐based
retarge9ng
of
people
who
previously
visited
a
Walmart
or
compe9tor
and
proximity
to
a
Walmart
store
Source: Walmart SC Survey; Data Collected from: 8/4-9/28
Frequency
to
LiO
Response
Price
PercepQon
of
Walmart
Point
Increase
in
Price
PercepQon
Frequency
12%
10%
8%
6%
4%
2%
0%
MOBILE VIDEO
MOBILE DISPLAY
Mobile Video and Display drove strong
results, but Video got its impact faster
40

41. Mobile Native improved results for Walmart.
Price
Better
ROI!
Mobile
Native
Mobile
Display
500
100 100
1000300
Manage frequency or rotate creative
Impact in this case is defined as shopping intent for back to school grocery products
Effectiveness at
low Frequency
Effectiveness at
High Frequency
41

42. Using the mobile toolkit to improve results
42
Audio
Video
Display
Rich
Media
Na6ve
Coupons
QR
FORMATS CHANNELS TARGETING CREATIVE
Websites
Apps
Push
SMS/MMS
Social
Search
Email
Audience
Context:
Day
part
Loca6on
Weather
Programma6c
Dynamic
Integrated
Closed
loop
to
payment

43. Location targeting improved results for Walmart
Location
Targeting
Mobile
Display
Audience Targeting Proximity Targeting
150
100 100
250
Audience: Display Ad targeting a Walmart Past Shopper. Proximity: Display Ad Delivery in Store Proximity. Display: Retail Benchmark Response for Display
Ad – No location targeting. Impact in this case is defined as improvement in price perception of Walmart (Savings Catcher)
43

44. The more engaging the location-based exposure
– the higher and faster the impact response.
Expandable
Unit
Pencil
Unit
Low Frequency High Frequency
250
100 100
117
Impact in this case is defined as improvement in price perception of Walmart (Savings Catcher)
44

45. * Statistical significance at 95%
Sources: Walmart Savings Catcher – Combined Publisher report; Walmart Savings Catcher Sub-Segment Performance
Findings on in-store purchase behavior to come
Expandable Units
Pencil Units
Audience
Proximity
Strong LiftAverage Lift
No Lift Average Lift
Proximity targeting + expandable
units = strongest lifts in foot traffic
45

46. 1290
Depending on the category, Context Targeting
can add significant value
Day of the week*
130
100
Weekday vs. Weekend targeting
Time of the day targeting for industry with Strong Time of
Day Dynamic
Without
targeting
With
targeting
Time of Day**
100
46

47. Optimizing in 4 areas can dramatically
improve results: ROI Upside
47
+
20%-­‐40%
FORMATS CHANNELS TARGETING CREATIVE
+
20%-­‐40%
+
20%-­‐40%
+
40%-­‐60%

48. Increase business/campaign impact using
best practices!
Proprietary
&
Confiden6al
7%
6%
4%
12%
+17%!
+14%!
+7%!
+18%!
0%!
5%!
10%!
15%!
20%!
25%!
30%!
MasterCard
Walmart
Coke-­‐Gold
Peak
AT&T
Mobile Optimized!
Optimized with Best
Practices!

49. Increase in impact would then push the
optimized level of mobile spend up!
Proprietary
&
Confiden6al
8%
11%
10%
16%
12%
15%
15%
20%
0%
5%
10%
15%
20%
MasterCard
Walmart
Coke-­‐Gold
Peak
AT&T
Mobile
Op6mized
Op6mized
with
Best
Prac6ces
8-­‐16%
12-­‐20%

50. The
Math:
Mobile
will
be
a
$70
Billion
U.S.
business
and
over
$200
Billion
worldwide
(just
from
big
brands)
Our current goal recommended percent
mobile allocation of mix overtime !
8-16%
Today
12-20%
w/ Best
Practices
20-30%
w/
Increased
Smartphones

51. Key Questions answered
Can mobile help me meet my
marketing goals?
What is the optimal mobile allocation
for my campaign?
How can I make my mobile
investment work harder?
Mobile drives results across the
ENTIRE purchase funnel
Aim for a double digit mobile
allocation in your total marketing mix
Optimize your mobile investment for
format, channel, targeting and creative
51

52. 52
50 major marketers!
$30B in advertising spend!
Impact of research

53. 53
Impact of research
90%!
Need to
increase!
Mobile $ !
50%!
Increase
$ at least
50%!
12%!
Increase $
more than
50%!

54. AssumpQons:
• Total
spend
of
marketers
reached
$38BN
(50FM
and
roadshow)
• Average
current
spend
4%
• Future
Spend
assump6ons
based
on
survey
data:
• High
bracket/
leader
group:
Mobile
at
8%
(10%
of
companies)
• Mid
bracket/majority
group:
Mobile
at
6%
(50%
of
companies)
• Low
bracket/laggard
group:
Mobile
at
4.5%
(40%
of
companies)
INDUSTRY
CHANGE
OF
$600M

55. Opportunity knocks
55

56. 56
Thank You!
Seizing the Mobile Opportunity
Mobile Marketing Association
Here to lead the greatest transformation in marketing we’ll see in our generation
vas@mmaglobal.com