1. AdReaction 2012
N AV I G AT I N G T H E M O B I L E L A N D S C A P E
1
2. Welcome to the
2012 AdReaction study.
AdReaction
This year, our study focuses on mobile advertising. With
this research, we seek to provide marketers with a
2012 roadmap of how to navigate the mobile landscape.
Research that preceded this clearly elucidated that we
UK
are untethering and becoming a more mobile-based
society globally.
navigating the Mobile presents unique opportunities and unique
MOBILE challenges. As marketers we must balance how we
reach out to the mobile user both impactfully yet
unobtrusively. We must understand how individuals
LANDSCAPE differentially use and relate to their mobile device. We
must understand the role that mobile can and should
play in the marketing mix. Finally, we need to know how
mobile can amplify or diminish brand equity.
2
3. AdReaction Research Design
The design
consisted of 2 components:
AdReaction AdReaction
ONLINE MOBILE
n=100 n=400
Who: Gen Pop. Online Audience Who: Smartphone and/or Tablet Users
(94% smartphone, 38% tablet)
What: Mobile usage levels & What: Deep dive into mobile advertising
attitudes towards ads attitudes
How: Online interviewing How: Online interviewing
3 Respondents were recruited between August 2, 2012 – August 6, 2012
4. KEY FINDIN G 1 KEY F IN DIN G 2
Broader changes in perception of mobile HYPOTHESIS: Mobile Usage is
advertising. significant and increasing but mobile
attitudes are mixed. There can’t be one
monolithic mobile strategy.
AdReaction 2012
OVERVIEW
KEY F INDING 3 KEY F IN DIN G 4 KEY F IN DIN G 5
HYPOTHESIS: Some types of HYPOTHESIS: Apps on mobiles Freebies and coupons are still key
mobile ads, very negative have good potential, but usability drivers of brand perception.
impression (i.e. display/text) is key to success.
mobile ads that have more
traction are: tailored and localized.
4
6. AdReaction
ONLINE
n=100
Who: Gen Pop. Online Audience
What: Mobile usage levels & attitudes
towards ad formats
How: Online interviewing
6
7. Comparing changes in attitudes towards ad formats
between 2009 & 2012
Consumers are still more favorable towards offline media ads.
2009 Acceptance of online media has been growing since 2007 though.
Online ads have massively increased in consumers
2012 favorability, now catching up to offline media, while
favorability of TV has significantly decreased.
7
8. Key Findings:
Attitudes to Offline Advertising 2009 v. 2012
2009 2012
• Usage of offline media has
• 89% spend more than 5 hours a significantly decreased with TV
DIFFERENCES IN week watching TV most drastically, only 44% watch
USAGE • 94% spend more than 5 hours a more than 5 hours a week
week in the internet • Internet usage remains on same
high level
DIFFERENCE IN • Acceptance of TV advertising has
• TV showed highest favorability
increased
ATTITUDES • Billboard had second highest
• Favorability of billboard
TOWARDS OFFLINE acceptance
advertising has declined the most
DIFFERENCES IN
• Favorability of online ads has already • Ads on Mobile devices have
ATTITUDES increased from 2007 more than doubled in favorability
TOWARDS ONLINE
8
14. Online usage on mobile devices has picked up to
same level as traditional phone usage
QUESTION: In a typical week, how many hours do you spend….
Share of smartphone time spent
Using a mobile phone to surf the web
or email
9%
15% Using a mobile phone to make phone
calls
11% Using a mobile phone to read or send
texts
14% Using apps on a mobile phone
12%
Using a mobile phone for social
networking (e.g. Facebook, Twitter)
Listening to music on a mobile phone
14%
12%
Playing games on a mobile phone
13%
Watching video on a mobile phone
14 Sample: smartphone users
15. Tablets are mostly used for surfing the web
QUESTION: In a typical week, how many hours do you spend….
Share of tablet time spent
Using a tablet to surf the web or
15% email
Playing games on a tablet
15%
Using apps on a tablet
20%
Listening to music on a tablet
16%
Using a tablet for social
networking (e.g. Facebook,
17% Twitter)
17% Watching video on a tablet
15 Sample: tablet users
16. Respondents have an average of 16 apps on their
smartphones, but most are not used that frequently
45% Of the apps installed on your mobile phone, how
many have you used in the past 30 days?
HARDLY
34% ANY, 47%
ALL OF ABOUT
THEM, 5% HALF OF
THEM, 36%
MOST OF
THEM, 13%
7% 6%
5%
2%
Less than 10 10-20 21-30 31-40 41-50 50+
16 Sample: smartphone users
17. Respondents have an average of 23 apps on their
tablets, these are used more frequently than on phones
Of the apps installed on your tablet, how many have
you used in the past 30 days?
34%
31%
HARDLY
ANY, 33%
ABOUT
ALL OF HALF OF
THEM, 7% THEM, 39%
MOST OF
THEM, 14%
10%
9% 8%
1%
Less than 10 10-20 21-30 31-40 41-50 50+
17 Sample: tablet users
18. Ease of access and visitation considered biggest
advantages of apps
QUESTION: What are the biggest advantages of apps?
I can do things with an app that can't be done on a website
26%
I can access an app directly rather than having to navigate through
a browser
Ease of access key 50%
It is easier to visit an app on a regular basis than a mobile website
43%
Display of content from apps is better than from a website
20%
Apps have better content than websites
14%
Apps are better for gaming
22%
0% 10% 20% 30% 40% 50% 60%
18 Sample: smartphone or tablet users
19. Key benefits for younger consumers are the advantage
against websites regarding content and display
QUESTION: What are the biggest advantages of apps?
34%
Display of content from apps is better than from a website
11%
14%
26% 18-34
Apps have better content than websites
10% 35-49
7%
Number of apps 50+
•On mobile phone:
18-34: 19% 35%
35-49: 16% Apps are better for gaming 18%
50+: 14%
13%
•On mobile phone:
18-34: 22%
35-49: 24% 0% 10% 20% 30% 40%
50+: 23%
19 Sample: smartphone or tablet users
20. Biggest disadvantages of apps is the drain of battery
life and costs for downloading them
QUESTION: What are the biggest disadvantages of apps?
Apps drain my mobile device's battery life 40%
I don't like paying for apps and often, even the free ones cost money for
the full versions 34%
I can do on a laptop or desktop what I'd do with an app, but more 26%
efficiently
Apps always seem to want more information than I'm willing to share
(e.g. my location; my reviews; my contact list) 20%
Younger consumers
I'm afraid that if I use an app with advertising, my mobile device will be feel more strongly
bombarded with advertising 17% about giving personal
information
Apps too often crash my mobile device 11%
Apps take too long to load or navigate 10%
I don't find apps to be useful 8%
The process of finding and downloading apps is just too confusing 8%
0% 10% 20% 30% 40% 50%
20 Sample: smartphone or tablet users
21. Above the line ads are still received more positively,
but user initiated online ads are well accepted
Smartphone Smartphone + Tablet
Users Users
Ads disturbing the entertainment Dual users (mainly males aged 18-
environment are ignored. 34) are more positive about ads in
Ads on social media, while listening to general.
music and advergames are less liked Newsfeed posts, Opt-in email and
than among dual users. localized or tailored deals are liked
most.
21
22. Attitudes towards mobile are positive as long as the
content is free
MOBILE BENEFITS
MOBILE FLEXIBILITY
MOBILE MISGIVINGS
Free content. Both mobile websites and apps are appreciated as long as content is free.
Mobile helps efficiency as an organizing tool. Especially among 18-34 years old, the
mobile device helps to balance out the split between being on the go and organizing work
and private life, leading to higher efficiency.
22
23. Mobile Flexibility: There is some flexibility in the
exchange between ads as long as content is free.
QUESTION: Please indicate how strongly you agree or disagree with the following
statements about your mobile device
I’m happy to pay for an app as long as there are no ads
9% 21% 18% 30% 22%
in it
I’m happy to see ads in my apps as long as the apps
are free 13% 25% 11% 32% 20%
I’m happy to see ads on mobile websites as long as the
websites are free to access 9% 27% 11% 33% 20%
I’m happy to share my location to get more relevant
services and offers 6% 23% 18% 31% 23%
I enjoy playing Advergames, games that incorporate
ads/brands 6% 12% 16% 27% 39%
Strongly Agree Somewhat Agree Neither Agree Nor Disagree
Somewhat Disagree Strongly Disagree
23 Sample: smartphone or tablet users
24. Mobile Utility: Efficiency and portability are key, but
mobile devices can not yet replace a computer
QUESTION: Please indicate how strongly you agree or disagree with the following
statements about your mobile device
17% 35% 8% 32% 9%
Having a mobile device makes me more efficient
My mobile device is indispensable because I’m always on 12% 30% 16% 31% 12%
the go
My mobile device is my primary tool for organizing my 11% 27% 16% 26% 20%
personal life
An increasing amount of my work is accomplished through 7% 16% 20% 27% 31%
my mobile device
My mobile device is my primary tool for organizing my 6% 20% 16% 24% 34%
work life
My mobile device is my primary tool for organizing my 7% 17% 20% 32% 24%
household
Now that I have my mobile device, I don’t really need a
4% 9% 25% 17% 46%
computer
Strongly Agree Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Strongly Disagree
24 Sample: smartphone or tablet users
25. Mobile Utility: Importance of efficiency and
portability is driven by younger consumers
QUESTION: Please indicate how strongly you agree or disagree with the following
statements about your mobile device
Aged 18-34
23% 42% 26% 5% 5%
Having a mobile device makes me more efficient
My mobile device is indispensable because I’m always on 16% 39% 29% 11% 5%
the go
My mobile device is my primary tool for organizing my 16% 41% 23% 11% 10%
personal life
An increasing amount of my work is accomplished through 13% 28% 26% 18% 15%
my mobile device
My mobile device is my primary tool for organizing my 10% 34% 29% 11% 16%
work life
My mobile device is my primary tool for organizing my 12% 27% 37% 14% 10%
household
Now that I have my mobile device, I don’t really need a
8% 17% 20% 25% 30%
computer
Strongly Agree Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Strongly Disagree
25 Sample: smartphone or tablet users
26. Mobile Misgivings: The speed of mobile internet is
still a barrier to almost half of all consumers
QUESTION: Please indicate how strongly you agree or disagree with the following
statements about your mobile device
I USE MY MOBILE DEVICE FAR
LESS THAN I THOUGHT I 13% 20% 22% 30% 15%
WOULD
I FIND THE MOBILE INTERNET
TOO SLOW 12% 33% 15% 33% 7%
Strongly Agree Somewhat Agree Neither Agree Nor Disagree
Somewhat Disagree Strongly Disagree
26 Sample: smartphone or tablet users
28. Mobile paired with other media
Mobile most frequently used in
conjunction with other media.
Information seeking; other forms of
media encourage user-directed
brand contact (from mobile device).
28
29. Respondents most likely to visit brand’s website or
search online for a brand after seeing a mobile ad
QUESTION: Which of the following actions have you taken as a result of seeing a mobile
ad?
Visited the brand's website 16%
Searched for the brand on the Internet 16%
Looked for the brand in a store 10%
Purchased the brand 9%
Visited a site for a similar brand 8%
Sent the ad to a friend 8% Younger consumers are much
Clicked on or interacted with the ad 7% more responsive to mobile ads
“Took no action”
Downloaded the brand's mobile app 7% 18-34: 45%
35-50: 64%
Recommended the brand to friends/family 7% 50+: 79%
Searched for more ads from the same brand 6%
Sent a message or a comment to the brand 5%
Posted the ad on my blog/profile 4%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
29 Sample: smartphone or tablet users
31. Mobile users want to see more from retail and online
shopping sites
QUESTION: What types of companies or brands would you most like to see delivering
services or features for your mobile devices?
RETAIL STORES 29%
Local ONLINE SHOPPING SITES 29%
Restaurants LOCAL RESTAURANTS 25%
33% FOOD PRODUCTS/BRANDS 20%
NEWSPAPERS OR MAGAZINES 19%
TECHNOLOGY COMPANIES 19%
SPORTS TEAMS/LEAGUES 18%
Retail HOTELS 16%
BANKS/FINANCIAL SERVICES 15%
27%
QUICK SERVICE RESTAURANTS 15%
AIRLINES 14%
DRINK PRODUCTS/BRANDS 13%
FASHION/DESIGNERS 10%
Food AUTOMOTIVE COMPANIES 7%
Products TELECOMMUNICATION COMPANIES 7%
27% OTHER 1%
31 Sample: smartphone or tablet users
32. Do This: increasing brand equity through successful
mobile execution
Add Impact of campaign can
be increased by adding Localize
mobile to mobile to the multimedia
campaign as it drives and tailor
campaign additional benefits Key benefit of
mobile is the
possibility to tailor
advertising to
Mobile Particularly for young
consumers, being on the
consumers interests
and locations
optimized go, mobile websites
should be tailored to the
website smaller screen to ensure
good brand perception
32
33. Not This: mobile executions that damage brand
equity
No Free access to mobile
apps and websites is No long
charge number one expectation
from consumers loading
for time
content
Slow mobile internet
is still one of the
biggest barriers to
use of mobile apps
and websites, make
No Asking too often and for
too much information
sure loading time is
optimized and site
intrusion may turn consumers
away from using your
mobile offers
can be displayed
clearly
33
34. Deals and coupons are the main image drivers, good
mobile access is key for younger consumers
When using your mobile phone or tablet, which of the following can improve your opinion of
a brand?
They send or display deals or coupons 28%
They have a good mobile website 21%
They offer an app for my mobile device 18%
Their website works well on my iPhone/iPad, no Flash content 18%
They give me access to free tools (like organizers, calendars or lists
17%
related to the advertised brand (e.g. shopping lists, reminders)
They send or display information tailored to my interests (like recipes or
16%
sports scores)
Their mobile website makes it easy to download their app 15%
They send or display information specific to my geographical location (like
14% Mobile website and app
locations of stores, promotions)
availability is key to younger
They let me do something entertaining like play a branded game or listen
13% consumers
to a free song
Mobile
They send me Facebook/ Twitter posts with links that work on my mobile App
10% website
device
18-34 27% 23%
They send the latest breaking product news 10% 35-50 22% 19%
50+ 14% 13%
34 Sample: smartphone or tablet users
35. Intrusion most damages opinions of a brand
When using your mobile phone or tablet, which of the following can damage your opinion of
a brand?
They ask me for too much personal information before accessing a tool or
application 45%
They don't provide me a way to opt-out of ads
44%
They send me more ads or posts than I'm interested in receiving
41%
The app is too slow or doesn't work properly on my device
34%
Their mobile website keeps promoting their app, but I don't want to download the
app 33%
The Flash content on their website doesn't work on my iPhone/iPad
22%
They send me Facebook/ Twitter posts with links that don't work on my mobile App performance is key to
device 18% younger consumers
They don't have a mobile optimized website Too slow or doesn’t work
16% properly
18-34 39%
They don't offer an app for my mobile device
14% 35-50 33%
50+ 29%
35 Sample: smartphone or tablet users
36. Deals and coupons or tailored tools or content highly
valued
QUESTION: Which of the following things would you like to see brands delivering to your
mobile device?
Getting deals or coupons 41%
Getting information tailored to my interests (like recipes
or sports scores) 30%
Getting information specific to my geographical location
(like locations of stores, promotions) 30%
Having access to free tools (like organizers, calendars or
lists related to the advertised brand e.g. shopping lists,… 28%
Latest breaking product news 23%
Being able to do something entertaining like play a
branded game or listen to a free song 17%
Other 1%
36 Sample: smartphone or tablet users
37. What makes a good app?
It is free to download 54%
Acquisition: It is quick to download 43%
Quick and Easy to It is easy to find in my device's app store 24%
Obtain It is easy to find on the brand's website 17%
It is free to download 54%
Competent: It doesn't crash 48%
Doesn’t Crash, Fail or It works for all software versions 31%
Overstep Boundaries It doesn't bug me for a rating too often 33%
When there are updates available, it clearly
30%
Clear: explains what has been updated
It has a clear and comprehensive
From Acquisition description in the app store
25%
through Update It is easier to use than the brand's regular
desktop website
20%
37 Sample: smartphone or tablet users
38. Speed and display are keys to a good mobile website
What makes a good mobile website?
It loads quickly 56%
It displays clearly on my mobile device 49%
It is easy to find via mobile search 31%
It is easier to use than the brand's regular desktop website 21%
It includes location based features 19%
It offers different features to the brand's regular desktop website 13%
It is more fun than the brand's regular desktop website 13%
It looks better than the brand's regular desktop website 13%
Other 1%
38 Sample: smartphone or tablet users
40. Application ad example – UK
• What it is, how it works
• Use an iPhone app to amplify the Smirnoff "Be There" campaign
2. Deeper communication to the TimeOut audience, helping them to find more amazing
of the ‘There’ messaging:
experiences and positioning Smirnoff as the key enabler.
Bespoke Microsite
Driving downloads
• Why it works
• Mass awareness about app was build in advance
1. Mass awareness: • Supported by micro site
High Impact branding &
Driving to Microsite • Users can interact with the app, search for locations, bars or
places of interest – directly answering the consumers need
• App is fitted to the brand´s promise
3. Downloading the app:
Co-branded Smirnoff &
TimeOut iPhone application
40
42. Ease of acquisition and technical competence keys to
a good app
What makes a good App?
It is free to download 54%
It doesn't crash 48%
It is quick to download 43%
It doesn't bug me for a rating too often 33%
It works for all software versions 31%
When there are updates available, it clearly explains what has been updated 30%
It has a clear and comprehensive description in the app store 25%
It is easy to find in my device's app store 24%
It is easier to use than the brand's regular desktop website 20%
It is easy to find on the brand's website 17%
It includes location based features 17%
It offers different features than the brand's regular desktop website 14%
It is more fun than the brand's regular desktop website 11%
It looks better than the brand's regular desktop website 10%
Other 1%
42 Sample: smartphone or tablet users
43. Facebook Remains the Dominant Mobile Community
QUESTION: Which online communities do you currently participate in via your mobile
phone or tablet?
70%
63%
60%
50%
40%
29%
30% 23%
20% 16%
10% 7% 6% 6%
3% 3% 2% 2% 2% 1% 1%
1% 1% 2%
0%
29.5% of sample does not participate in communities via their mobile device
43 Sample: smartphone or tablet users
