Getting Beyond the Hype-What’s Really Working In Mobile Marketing Today by Monica Ho, xAd - SIMposium 2013

© 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute

SIMposium July 2013

Getting Beyond the Hype- What’s Really Working In Mobile Marketing Today

© 2013 xAd, Inc │ Confidential and Proprietary │ Do Not Distribute 2

ABOUT ME

SIMposium Rocks!


There are 5 5mes as many cell phones in the world as there are PC’s HubSpot – Shocking Mobile Marke5ng Stats

91% of adults always have their phones within arms reach…24/7 Morgan Stanley

The average adult looks at their phone 41.5 5mes a day

Why Mobile

This jumps to 109 (mes for young adults (age 18-‐24) – Pew Internet & American Life Project


Media Evolution

!   Media is increasingly shifting to mobile !   Local Mobile CAGR = 49.96%

–  Traditional Media = -0.3% –  Digital Media = 12.3%

4

2012

0.9%

$132.4B

2013

1.7%

$132.7B

2014

2.9%

$136.6B

2015

4.0%

$139.5B

2016

5.0%

$145.2B

2017

6.1%

$148.8B

BIA/Kelsey Local Media Forecast, March 2013

Mobile All other media


Mobile Is Big

5

$Bi

llio

ns


Mobile Location Is Even Bigger

6 BIA/Kelsey Local Media Forecast, March 2013

$Bi

llio

ns


Location Essential in Unlocking Mobile’s Potential

!   Impacting Mobile Moments that Matter –  Real-time location combined with 1st party geo-search data tells us a lot

about the mobile users needs and intent

7


Evolving Consumer Behaviors

8

Election of the new Pope - 2005 Vs. 2013


Online Mobile Access Growing

!   Over 30% of Smartphone users prefer to go online via Mobile vs. any other device

9

Source: The Pew Research Center Internet & American Life Project, Spring Survey 2012

Preferred Online Access

Online via Mobile

Other Online Access


Online is now Multi-Platform

!   1 out of 3 digital minutes now comes from smartphone and tablets

10 Source: comScore Media Metrix Multi-Platform (Beta) US, Dec 2012

63% Desktop

37% Mobile

Share of Digital Media Time Spent: Desktop Computer vs. Mobile


The Differences Between Smartphone and Tablet Usage

Key Findings from our Mobile Path to Purchase Study


Smartphone Usage is more Out of Home, While Tablets are At Home

20% 35% 32%

51% 59% 82% 83% 83%

77% 65% 60%

47% 37% 16% 16% 15%

GAS/CO

NVE

NIENCE

BANKING & FINAN

CE

RETA

IL

INSU

RANCE

GAS/CO

NVE

NIENCE

BANKING & FINAN

CE

RETA

IL

INSU

RANCE

SMARTPHONE TABLET

OTHER

OUTSIDE OF HOME

HOME

Ques5on Used:CQ16A, CQ16B, CQ16C:, CQ16D Where were you when accessing the website/app on your smartphone/tablet?

12


Mobile Is No Longer Just A Last Mile Media


Mobile Is Used Mostly At the Start of the Shopping Process – with 1/3 of Users Indicating They Used Their Device Throughout

64% 44% 53% 50%

14%

11% 16% 17%

5%

8%

11% 9%

17% 37%

21% 23%

GAS/CONVENIENCE BANKING & FINANCE RETAIL INSURANCE

ALL THE WAY THROUGH AT THE END

IN THE MIDDLE AT THE START

Ques5ons used: CQ39A/B/C/D: When visi5ng the <CATEGORY>, at what part of the research process did you use your <DEVICE>?

14


Gas & Convenience Shoppers Are Most Likely to Use Mobile at the Start of the Shopping Process

At The Start In the Middle At the End All The Way Through

64% 50% 53% 44%

14% 17% 16% 11%

5% 9% 11% 8%

17% 23% 21% 37%

Insurance Retail Banking & Finance Gas &

Convenience

15


Insurance Shoppers Are Most Likely to Use Mobile In the Middle of the Shopping Process


64% 50% 53% 44%

14% 17% 16% 11%

5% 9% 11% 8%

17% 23% 21% 37%


Convenience

16


Retail Shoppers Are Most Likely to Use Mobile At the end of the Shopping Process

At The Start

In the Middle At the End

All The Way Through

14% 17% 16% 11%

64% 50% 53% 44%

5% 9% 11% 8%

17% 23% 21% 37%

Banking & Finance Gas &

Convenience

17

Insurance Retail


17% 23% 21% 37%

Banking & Finance Users Are Most Likely to Use Mobile All the way through the Shopping Process


5% 9% 11% 8%

14% 17% 16% 11%

64% 50% 53% 44%


Convenience

18


Mobile User Needs And Intent Varies


User Needs and Intent Varies Based on What They Are Looking For

24% 11% 49% 28%

39%

7%

27% 11%

36%

34%

38%

17%

21%

31%

49%

55%

14%

30%

4% 12% 1% 8% 1% 2%


Not sure Other

Just Browsing Looking for Contact Info

Looking for Business to purchase from Researching Op5ons

20


Top Activities Performed When Accessing The Mobile Device

21


Mobile Users Take Action However Immediacy Varies


60% of Mobile Users Were Looking To Convert Within The Day

35% 45%

18% 12%

31% 10%

14%

6%

24%

12%

27%

7%

7%

7% 26%

24%

2%

2%

15%

2%

25% 14%

36%


NO IMMEDIATE NEED LONGER THAN WITHIN MONTH

WITHIN MONTH WITHIN DAY

WITHIN HOUR IMMEDIATELY Ques5ons used: CQ18A, CQ18B, CQ18C:, CQ18D S5ll thinking of this most recent visit, how quickly were you looking to make a purchase/transac5on?

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Banking & Finance Users Are More Likely to Have the Most Urgent Needs

Immediately Within The Hour

Within The Day

Within The Month

45% 35% 18% 12%

10% 31% 14% 6%

12% 24% 27% 7%

7% 7% 26% 24%

Insurance Retail Banking & Finance

Gas & Convenience

24


Gas & Convenience Users Are More Likely to Convert Within the Hour

Immediately

Within The Hour

Within The Day

Within The Month

45% 35% 18% 12%

10% 31% 14% 6%

12% 24% 27% 7%

7% 7% 26% 24%


Convenience

25


Retail Shoppers Are Most Likely to Convert Within The Day or Within the Month

Immediately

Within The Hour

Within The Day

Within The Month

10% 31% 14% 6%

45% 35% 18% 12%

12% 24% 27% 7%

7% 7% 26% 24%


Convenience

26


Insurance Shoppers Are most likely to convert within a month from their mobile activity

Immediately

Within The Hour

Within The Day Within The Month

10% 31% 14% 6%

45% 35% 18% 12%

12% 24% 27% 7%

7% 7% 26% 24%


Convenience

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Location & Promotions Critical to Conversion

!   Nearly 1 out of 3 smartphone users and 1 out of 4 tablet users reference their device specifically for contact information such as a phone number, address or map and driving directions.

!   The majority of consumers (60 percent) expected businesses to be within walking or local driving distance from their current location.

28


Mobile Consumers Take Action with Strong Purchase Intent and Conversions

Ques5on Used:CQ41A/B/C/D: When visi5ng the <CATEGORY> on your <DEVICE>, how was the actual purchase completed?

60%

Smartphone -‐ 60% Convert

53%

Tablet – 53% Convert

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Conversions Are Happening – On- and Offline

Ques5on Used:CQ41A/B/C/D: When visi5ng the <CATEGORY> on your <DEVICE>, how was the actual purchase completed?

30


Key Take Aways

!   Consumers are reaching for their mobile devices earlier and more often for their shopping and purchasing needs.

!   Findings demonstrate that mobile marketing can not be taken as a “One Size Fits All” approach as usage varies not only by device – but by type of product / service need as well.

!   Mobile is one of the most powerful tools in the consumer’s path-to-purchase - knowing how to engage users by device is essential in unlocking it’s full potential.

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The Mobile Opportunity

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US Mobile Ad Spend Share, By Format!!   Mobile Search and Display will make up 96% of ad spend by

2017

Source: emarketer, June 2013 33


Mobile Search – Where It Happens!!   Mobile search occurs in both browser and in application

Top for General Search

Vertical Specific Search Engines

34


LOCAL: Mobileʼs Sweet Spot!

!   90% of mobile consumers have conducted a local search via their device!

!!

!   More than 75% of time spent on mobile devices is conducted ON THE GO (or out of home)!

!!

!   Mobile searchers are closer to the !!buying decision:!

–  Mobile – 70% transact within the hour!–  Desktop – 70% transact within a month!

!

Sources: The Mobile Movement Study, Google / Ipsos OTX MediaCT, April 2011; Jiwire January 2012, Bing 2010


Mobile Driving Softness in Local Content Categories!

!   While most mobile content usage is incremental to desktop usage – the following categories have experienced significant softness in desktop usage!

!

-‐2%

Maps

-‐4%

Comparison Shopping

-‐5%

News

-‐12%

Weather

-‐23%

Directories

Source: comScore Media Metrix Multi-Platform (Beta) US, Dec 2012 36


½ of Smartphone Searchers Purchase!

Source: Google – Mobile Movement Study, 2012

37


Mobile Search Best Practices!

!   Pay for top placement!

!   Localize your messaging!!

!   Utilize call extensions!

!   Have a mobile optimized landing page!

!   Donʼt forget about Apps!!–  Donʼt take a Google only strategy – cover

all of the top most used applications in your category as well!

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Client Example: Dunkin Donuts!

3. RESULTS 2. SEARCH 1. APP HOME

4. WEBSITE / LANDING PAGE

•  RESULTS - Dunkin’ Donuts experienced click-through rates that where 6 x’s industry rates – with a strong secondary action rate of 35%

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Think Outside The Search Box!!   Mobile Display is growing faster than any other ad category

Source: emarketer, June 2013 40


Mobile Consumer Usage Trends!

Source: Nielsen, 2011 41


The Ability To Reach Your Target Audience Passively ~ outside of search!

42


Defining Location Targeting!

!   Standard Geo-Targeting – the use of zip codes, cities, DMAs or other standard geo boundary to define an area in which ads can be targeted.!

!!

!   Geo-Precision Targeting - refers to targeting areas that do not conform to standard geo-boundaries. !!

• Geo-Fencing - based on a set proximity or distance around select places or points of interest. !!

• Geo-Behavioral Targeting – typically based on real-time, historical, or location specific consumer behaviors that allow for dynamically determined targeting areas that change and shift as relevant user activity is detected. An example of Geo-Behavioral Targeting is xAdʼs proprietary SmartFencing™ technology which incorporates first party real-time search behaviors to identify and dynamically target key audiences.!

Standard Geo

Geo Fencing

Geo Behavioral

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Targeted Display Performance!

!   On average locally targeted mobile ads achieve a CTR between 0.5 – 1%!

!!   However, the true

measure of performance in mobile display is in post-click action!

Top Secondary Actions of Locally Targeted Mobile Display

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Pinkberry Goes Greek with Location Targeted Ads

!   Targeting Solution: –  1 mile SmartFence™ around Pinkberry locations

!   Results: ─  The campaign doubled the

client’s mobile benchmark CTR and was highly successful in driving a lift in store traffic as measured by mobile coupon redemptions


Calvin Klein: Enhancing Relevance by Time of Day

!   Targeting Solution: –  Audience target of luxury retail

shopper + 10 mile SmartFence™ around Macy retail locations

–  Creative was day parted to drive in-store traffic during store hours or an mCommerce shopping experience after hours

!   Results: ─  The campaign exceeded the clients CTR

benchmark by 26% while helping to increase local sales during the 2-week campaign.

Evening Crea5ve

Day5me Crea5ve


Outback – Nothing but Gain in their Conquesting Game

!   Targeting Solution: –  To increase local market sales ads

were targeted to appear when consumers were within 5 miles of any Outback competitor location

!   Results: ─  The campaign exceeded the industry

benchmark CTR by nearly 80% during the campaign period and has become an ongoing line item across Outback’s mobile campaigns


The Mobile Opportunity - Key Take-Aways!

!   In mobile location matters –  Localizing you ad message is just as important as the

targeting –  Pay for top placement –  Coverage in browser + application essential

!   Re-Think Mobile Display –  Not at all like traditional desktop display –  Ability to generate performance in addition to local

market awareness

!   Performance must be measured past the ad click

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Summary!

!  There is an amazing opportunity for marketers in Mobile Search and Display!

!!  To reap the rewards – think “Mobile First”!!!  The time to start is NOW.!!

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Contact Information

Monica Ho VP, Marketing

[email protected] P : 646-831-2168