Mobile is the greatest transformation in consumer behavior and will have a profound impact on businesses. Empirical research from MMA's SMoX studies across multiple brands and countries found that allocating 12-20% of advertising budgets to mobile marketing can increase key metrics like awareness, purchase intent, and sales by 7-60%, especially when best practices are used. As smartphone adoption increases to over 90% of the population, the optimal allocation to mobile may rise to 20-30% of budgets. Marketers are challenged to understand how to effectively utilize mobile's unique ability to reach consumers closely and optimize their mobile marketing strategies.

1. Why Does Mobile Really Matter?
The Case for Mobile and Empirical Evidence of it’s Value
October 2016
MMA Forum Mexico 2016 - Mobile Leadership
Greg Stuart
Global CEO
greg@mmaglobal.com

2. MMA Global Board of Directors
John Costello
President, Global
Marketing & Innovation
Dunkin’ Brands
Jack Philbin
Co-Founder & CEO
Vibes
Carolyn Everson
VP, Global Marketing Solutions
Facebook
Stephen McCarthy
Finance, Infrastructure
xAd
Cameron Clayton
President, Product & Technology
The Weather Company
Greg Stuart
CEO
MMA
Michael Baker
President & CEO
DataXu
Pete Blackshaw
Global Head, Digital
Marketing & Social Media
Nestle
Susan Canavari
Chief Brand Officer
Chase
Tom Daly
Group Director, Global Connections
The Coca-Cola Company
Luis Di Como
SVP, Global Media
Unilever
Amit Gupta
Co-Founder
InMobi
Sanjay Gupta
EVP – Marketing, Innovation &
Corporate Relations
Allstate Insurance Company
Jack Haber
VP, Global Advertising & Digital
Colgate-Palmolive Company
Peter Hamilton
CEO
TUNE
John Kosner
EVP & General Manager,
Digital & Print Media
ESPN
Ilonka Laviz
Digital Marketing Director,
Global eBusiness
Procter & Gamble
William Lonergan
Chief Executive Officer
RadiumOne
Peter McGuinness
Chief Marketing & Brand Officer
Chobani
Margo Geogiadis
President, Americas
Google
Dipanshu “D” Sharma
Founder & CEO
xAd
Gregory R. Raifman
President
Rubicon Project
Andrew Sherrard
Chief Marketing Officer
T-Mobile
Nada Stirratt
Chief Executive Officer
Verve
John Trimble
Chief Revenue Officer
Pandora
Dan Rosen
Global Advertising Director
Telefonica
Alberto Banano - Pardo
Founder & CEO
Adsmovil
Michael Donnelly
SVP, Digital Marketing
MasterCard
Chair: Vice Chair: Secretary:
EMEA Regional Rep: NA Regional Rep: LATAM Regional Rep: LATAM Regional Rep:
Tom Chavez
CEO & Co-Founder
Krux
At Large: At Large: Treasurer: Chair Emeritus: MMA President:
Ernesto Echeverri
Dir. Mktg USA, Canada
& Caribbean
LATAM Airlines Group
Kellyn Kenny
VP of Marketing
Uber
Tim Mahoney
CMO
General Motors
Marc Mathieu
CMO
Samsung
Jeff Lucas
CRO
Snapchat
Karin Timpone
Global Marketing Officer
Marriott

3. Mobile is the greatest
transformation in
consumer behavior that
we will see in our lifetime
Mobile is not a fad, or improvement, it is a fundamental change in the
infrastructure of how companies connect to consumers

4. 4
3 Parts of Today’s Discussion
1. Why does Mobile matter to businesses?
2. What is the real value of Mobile to Marketers?
3. What can you do about it?

5. And by 2020, nearly everyone might have a
Smartphone
By 2020 5bn people on earth will have a smartphone
Source: World Bank, GSMA, Apple, Google etc
0
1
2
3
4
5
6
7
8
9
Population Population over 16 Mobile Users Smartphones PCs
Global Population (bn)
Growth to 2020
2015

6. 6
Mobile is THE first universal tech product
Mobile Completes a journey from one computer on earth to another computer in every
pocket
Every
Corp-
oration
Every home
and every
desk
Every
pocket

7. Disruption of Photo Industry is just one example
More iPhones & Android phones sold
than Japanese camera’s EVER.
More photos taken this year than taken
on film ever.
Source: Kodak Companies, CIPA, a16z
80B
Photos
Taken
1999
800B
Photos
On Social Media
2014

8. 3-4x more
smartphones than PCs
Increase in sophistication and complexity of mobile
is as important as the increase in scale
Used every where
Used much more
Used in more
sophisticated ways
Because of this and more, Mobile had a BIG
multiplier effect
Vastly
bigger
opportunity

9. Mobile is not smaller, it is richer, more
expansive, and personal…
The smartphone is now a more capable and sophisticated internet platform than PC
Personal Touch Sensors
Cameras Location Payment
Social
integration
Security
And much
easier to use…

10. Sensor Purpose / Use
Accelerometer Measures movement and orientation
Gyroscope For measuring angular rotation across three axes and giving more accuracy to the accelerometer reading
Magnetometer Detecting magnetic fields and magnetic North
GPS chip Enables location services, along with the magnetometer
Front & rear facing cameras Enables photography and detects objects in surrounding environment
Microphone Detects sound and speech
Proximity sensor Recognizing when you move your phone up to your face
Ambient light sensors
Adjusting brightness levels based on your environment (high-end Samsung Galaxy phones can measure white, red,
green, and blue light independently to tune displays)
Pressure sensors Enables touchscreen
Fingerprint sensors Reads fingerprint for authentication and privacy
Motion coprocessors Add to motion sensing capabilities (e.g. can tell the difference between walking and driving)
Air quality Measures air quality
Water quality Measures water quality
3D/Stereo camera Improved facial and gesture recognition (eventually emotional state tracking)
Radar Increased awareness of surroundings
Sonar Increased awareness of surroundings
Pollution sensors Detect pollution levels (measure smog, dangerous chemicals, etc.)
Internal health & body
activities
Use an internal chip to monitor health and internal activities (bionic limbs, disease, etc.)
More feedback, more data, than you can imagineCommonCuttingEdgeFutureState

11. In fact, all new industries are being remade
around smartphones.
The really important new business are native to new technologies
Web &
Smartphones
Smartphones
Trucks &
Highways
Trucks &
Highways
Airbnb Uber/LyftMcDonald’s Wal-Mart
Travel TransportFood Retail

12. This Missed the Point
• The Year of Mobile
• Est 1999
Est. 1999

13. • Problem was, Year of Mobile was too limiting
• It’s the age of mobile
We Are Really In…

14. Mobile’s unique differentiator:
Mobile is the
closest you can
get to your
consumer

15. What is the value of being closer?
MMA looked at that with a $3M research program
SMoX.me = Smart Mobile Cross Marketing Effectiveness Studies

16. SMoX : Industry Consortium Coming together to
understand business value of Mobile in advertising Mix
Awareness
Image
Purchase Intent
Foot Traffic
Sales
16
5 Brands
4Countries

17. TV
Print
Internet
FSI
Cinema
Social
OOH
Mobile Display Display,
video,
social
Display,
video, native,
location
Display,
audio, video
social
Display,
video,
social
Display,
video,
social
Display,
video,
social
Display, RM,
Weather
targeting, social,
video
Measured a variety of media in each campaign mix
17

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

19. 19
Mobile is significantly more efficient vs.
other media across the funnel
Brands Campaign Objective
People
Converted
Avg. Campaign
People
Converted JUST
Exposed Mobile
AT&T Aware of MotoX Phone 1.0 1.9
Gold Peak Tea Aware of Gold Peak Tea ∨ 4.8
MasterCard Image: Use MC when Travel ∨ 1.7
Walmart Intent to Shop Back-to-School Grocery ∨ 1.9
Walmart Sales in Store at Walmart ∨ 2.0

20. How many people can you convert with mobile?
2X+
Campaign Average Mobile

21. What is the impact of a channel that has this
kind of engagement/attention for marketers?

22. Save video creative would produce stronger
results vs.. TV with lower cost
Mobile
Video
TV
40
100 100
450Better ROI!
Effectiveness at
low frequency
Price

23. Proprietary & Confidential
Source: Walmart SC Survey; Data Collected from: 8/4-9/28
MOBILE VIDEO
And Mobile is Changing the Way we Look at
Media Buying
0%
2%
4%
6%
8%
10%
12%
PointIncreaseinPricePerception
Frequency
Frequency to Lift Response
Mobile Video vs. TV*
CABLE TV

24. Mobile Native improved results for Walmart.
Price
Better
ROI!
Effectiveness at
low Frequency
Mobile
Native
Mobile
Display
500
100 100
1000
Effectiveness at
High Frequency
300
Manage frequency or rotate creative

25. Location and format Interact:
And REALLY drive Foot Traffic
Expandable Units
Pencil Units
Retargeted
Proximity
40%12%
No Lift 10%

26. 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

27. 27
What do we know – SMoX
Campaign Information Change in Campaign Due to Mobile
Company (Brand)
Country of
Study
Overall Campaign
Goal & Optimization
All Media in Campaign
Mobile Formats in
Mobile Portion of
Campaign
Impact when Optimizing within Mobile Mix Also ii
Opt. % Of Mobile in Mix with
Mobile Best Practices v
Boost in Overall
Campaign Perf.
AT&T (MotoX) U.S. Awareness
TV
Print
Desktop
Display
20%  +18%
MasterCard U.S.
Image
(“MC is good card to use
when traveling”)
TV
Print
Desktop
Social
Display
Video
Social
12%  +17%
Walmart (Back-
to-School Grocery)
U.S.
Purchase Intent
& Sales
TV
FSI
Desktop
Display
Native
Social
Location Targeting
15%  +14%
Coca-Cola Co.
(Gold Peak Tea)
U.S.
Awareness,
Image & Sales
TV
Print
OOH
Desktop
Display
Audio
Video
15%  +7%
Coca-Cola Co.
(Red Can)
China Sales
TV
OOH
Desktop
Display
Video
Social
15%  +16%
Coca-Cola Co.
(Red Can)
UK Sales
TV
OOH
Desktop
Display
Video
Social
16%  +25%
Coca-Cola Co.
(Red Can)
Brazil Sales
TV
OOH
Desktop
Display
Video
Social
19%  +60%
Unilever
(Magnum)
U.S. Sales
TV,
Print,
Desktop
Display,
Video
Social, RM, Weather
targeting
17%  +13%
i Assumes that overall campaign budget is optimized without making any changes in terms of how mobile mix was allocated
ii Assumes that overall campaign budget is optimized and best practices are used to further improve the performance of mobile
iii The % of the total advertising budget that should be allocated to mobile in order to maximize the performance of the campaign
iv The incremental lift in performance generated by optimizing the budget for mobile /
increasing mobile allocation
v Employing best practices would include rebalancing the mix in mobile to more cost
effective formats, removing ads that failed, increase use of targeting proven to work
and more.

28. In Summary – SMoX Consistently Demonstrates
Allocation to Mobile
in the Mix, when
mobile is done right
Produces an
Increase in
Brand Metrics
Produces an
Increase in Sales
or Profit of:
All Studies
to Date
12% to 20% ~17%
7% to 25%
to 60%
28
Sale
s
+7%
to
Sales
+60%
to
Sales
+25%
Mobile
12-20%
Other
Media
80%

29. 29
Your Challenges
1. What do you need to do/have/org to be able
to be successful with 20% of spend in Mobile
How much more can you squeeze out of TV,
newspapers, radio into the future?
2. What does it mean to be closer to your
consumer?
3. Can you figure it out alone?

30. The Math: Mobile will be a $70 Billion U.S.
business and over $200 Billion worldwide
(just from big brands)
However, as Reach Increases, so might Allocation
15-20%
Today
Increase in
Smartphone
to 90%
20-30%
w/
Increased
Smartphones

31. Truth is, Mobile is Bigger than we thought

32. 32
Location Segment
Leader
Video Segment
Leader
TBD Cross Screen
Leader
TBD Segment
Leader
Kicking off Wave II with new Marketers & Supporters
Auto Pharma QSR ?

33. MMA Introduced….
33
November 1st is the Big Reveal
MATT is a community of industry experts committed to rethinking the
world of marketing measurement and attribution; seeking to give
marketers better measurements, tools and confidence in connecting
marketing to business outcomes.
All MMA members are invited to participate in MATT

34. Glad you are with us!
SMoX
Mobile ROI Research

35. 35
Thank You!
Seizing the Mobile Opportunity, Globally
Mobile Marketing Association
greg@mmaglobal.com