Dive Mobile

Presents

Dive Mobile

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74% of China’s netizens own a smartphoneAnd they spend 2 hours a day on their phone using the internet

Data Source: CNRS, 20143

Radio, 17, 5%Print, 25, 7%

Tablet, 42, 12%

TV, 60, 17%

PC, 100, 29%

Mobile, 104, 30%

Radio Print Tablet TV PC Mobile

104 minMobile Daily Time Spent(without calling & SMS)

Source: Inmobi 2014.1

We spend more time on our

mobiles and tablets vs. any

other media 146 minutes are spent on mobile devices

Source: eMarketer5

Adspend has increased accordingly. Last year it grew by 600%.At the end of 2014, Chinese advertisers spent $6.4 billion on mobile internet ads, or 16% of all mobile ad spending globally.

But mobile ad spends still don’t match the growth in impressions

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2013 2014

14% impressions of digital

0.5% of digital ad spend

17% impressions of digital

4.4% of digital ad spend

Source： iAdTracker, iMediaMatrix, mUserTracker

We know so little about what consumers think about mobile advertisingWe have some data on what people are doing on their mobiles but not what they think about brand communications on mobiles.

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8

DOING THINKING

?

We wanted to knowWhat do people think about mobile ads?What kind of ads do they want to engage with?When are they most engaged? What happens when they accidentally click on ads?

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So we askedQuantitative Research450 Respondents

One on one interviews in 7 marketsT1 - Shanghai, BeijingT2 - Xiamen, WuhanT3 - Hefei, Quanzhou, Shijiazhuang

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89%Of people think mobile advertising is annoying or disruptive

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This opinion cuts across tiers but is most prominent in Tier 1

0

10

20

30

40

50

60

70

80

90

100

Agreement with “Mobile brand communication is annoying”

Tier 1 Tier 2 Tier 3

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Most of their annoyance is due to misconceptions

0 10 20 30 40 50 60 70 80

Information is not reliable

Impacts my visual experience

Violates my personal data

Ads drain my battery

Leads to the wrong operation in the application

Ads waste my mobile data

Ads are not relevant to me

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They aren’t necessarily wrong about junk advertising

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8.5the number of ads an average person sees a day on their mobile

But, this is not the whole picture

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75% Interesting

Our feelings toward mobile advertising is a bit more ambivalent

Necessary(2%)

94% Necessary

89% Annoying

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This is consistent across tiers

0

10

20

30

40

50

60

70

80

90

100

Annoying Interesting Necessary


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But how they react is different

4%

25%

28%

22%

Tier 1

18

4%

20%

28%

31%

Tier 2

1%

10%

30%

52%

Tier 3

Ignore

FeelInterested

Notice

Will Purchase

Our behavior reflects our ambivalence

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will read one-fourth of the landing page53%

AFTER ACCIDENTALLY CLICKING ON AN AD

26% will read half of the landing page

5% will read three-fourths of the landing page

4% will read the entire landing page

Mobile ads have the biggest influence on purchase intent

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ADVERTISEMENT PLACEMENT THAT WOULD INFLUENCE PURCHASE INTENTION MOST

38.7%Smartphone

30%PC

23%Tablet

8.3%Phablet

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41%Smartphone

24%Tablet

18%PC

16%Phablet

49%Smartphone

26%Tablet

22%PC

3.3%Phablet

26%Smartphone

50%PC

19%Tablet

5%Phablet


Mobile is even more important in Tier 1 and 2

Those interested in your ads are 2.4 times more likely to purchase your product

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Like

Annoyed

22.6%Notice

24.5%Notice

7.1%Will Purchase

2.9%Will Purchase

So, what do they want?

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What we want from mobile ads is not so different from what we all look for in all advertising

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Utility Amusement

Uniqueness Affirmation

But practicality reigns above all else

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Connects me with new people

Interesting experiences

Allows me to be an early adopter

Participation factor

Has talkability

Favourite celebrity involved

Well known brand

Provides company information

Interesting visuals

Relevant information

Practical rewards

Practical information

REASONS FOR ENGAGING WITH MOBILE ADS

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Not all ad types are created equal

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Picture Ad(48.6%)

Animation/Video Ad(36.1%)

PREFFERED AD FORMAT

Interstitial Ad(21.2%)

Not all ad spaces result in engagement

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38.930.2

40.3 36.1

20.6

50.3 45.3

18.4

43.1

25.4

24.734.6

27.426.9

27.8

17.920.1

28.2

24.5

40.5

16.8 16.4 14.4 19

22.8

18.214.2

23.4

15.5 16

17.5 15.3 15.8 13.324.9

10.717.3

26.714 15.8

2 3.5 2.2 4.6 3.9 2.8 3.1 3.3 2.8 2.4

Auto Education Games Magazine Music Puzzle RealEstate

Social Tools Weather

Will purchase

Like it

Interesting

Take notice

Ignore

So, now what?

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IMPLICATION

Invest where your audience is

Mobile adoption has increased many folds but ad spend has yet to grow accordingly. More ad budget should be allocated to mobile to keep up with the growth on eye balls on mobile devices.

IMPLICATION

Win hearts through better targeting

Mobile users while annoyed with mobile ads, they are still looking at the ads and will engage and interact with them if they are more targeted. Thus advertisers should invest in relevant mobile inventory to ensure on-target delivery.

IMPLICATION

Relevancy matters most

Focus on providing value and relevant information as this will increase ad engagement and interaction effectively driving up purchase intent. Then leverage interactive & rich media ad and video format to increase engagement.

IMPLICATION

Be smart about markets

Focus on Tier 1 & 2 markets due to high penetration of smartphone in those areas

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CONTACT US

Jeanette Phang

[email protected] BUSINESS INTELLIGENCE

Bhasker Jaiswal

[email protected] PARTNER - BUSINESS

INTELLIGENCE

Alvin Foo

[email protected] OF AIRWAVE

Marketing

Dive Mobile