AdReaction 2012 – U.S. Report
Marketing in the Mobile World

AdReaction 2012 focuses on mobile marketing. Through
this research, we provide marketers with insights and a
roadmap for navigating the mobile landscape – all to
support brand growth.
AdReaction As we become a more mobile-based society, it is clear
2012 that the relationships between consumers and their
mobile devices are unique from other media.
U N I T E D S TAT E S
Mobile media presents new opportunities and challenges
as marketers seek to engage with users persuasively, yet
Marketing in the unobtrusively. Our analysis highlights mobile ad formats
MOBILE that are successfully negotiating this balance – and how
this compares with other digital and traditional advertising
formats. In addition, we explore how consumers use and
WORLD relate to their mobile devices, including smartphones and
tablets. Finally, we explore how mobile can impact brand
equity.
2

Over 10 years of AdReaction insights
AdReaction delivers insights and findings related to the opinions and perceptions of advertising, specifically digital
formats. AdReaction 2012 combines quantitative analysis with a qualitative component and provides a deep-dive
into mobile and tablet advertising.
ONLINE VS. TRADITIONAL SOCIAL MEDIA
TRENDS DEEP DIVE ADREACTION MOBILE
• Trending Data from 2009
Integrated Qual + Quant Analysis
2009
•
2003
2005
2007
2001
• Mobile & Tablet Deep Dive
• Mobile Segmentation
• Mobile Marketing Best Practices
2012

Research Design
AdReaction 2012
- NEW IN 2012 -
QUANTITATIVE QUALITATIVE
Overall Ad Formats Deep Dive on Mobile Deeper Dive on Mobile
Who: General Population Who: Smartphone / tablet Who: Smartphone / tablet users with a
Online Audience users (n=800) positive affinity for mobile advertising
(n=200)
What: Mobile usage levels and What: Mobile advertising in the media mix
What: Mobile usage levels and attitudes towards and mobile advertising best practices
attitudes towards ads platform and ads
How: 25 respondents – 1 week of blogging
How: Online survey How: Online survey on IdeaBlog® and 15 60 –minute
individual, in-depth interviews on
uView
4

Mobile typologies helped reframe ad effectiveness
Sample Cluster 3 key typologies* drove attitudes and
Analysis Revealed receptivity towards mobile ads
MOBILE MOBILE MOBILE
SOPHISTICATES EFFECTIVES PRAGMATISTS
Tech savvy, mobile can Use mobile device as a tool View advertising as the
replace computer; younger, for organizing life and necessary cost of free
male household content
5 * Two additional typologies emerged but due to low usage and receptivity, they are not the focus of this study

1. Mobile devices are 2. Most users are tolerant of,
indispensable and increasingly but not yet favorable
central to our lives towards, brands in this
intimate space
Key Findings
AT A G L A N C E
3. There is a huge 4. Marketers need to improve 5. For marketers who use
opportunity for mobile mobile perceptions by best practices, it’s proven
communications and users meeting, then exceeding, user that ads, apps and websites
are receptive when done expectations — and can build brands
right delivering competent, targeted
and valuable marketing
6

MOBILE is
INDISPENSABLE
USAGE is
ON THE RISE
7

Mobile web is on the move globally
1.5 smartphones and tablets will be
installed globally by mid 2013 -
BILLION overtaking laptops and PCs*
37% in the number of global 3G subscribers
GROWTH in the past year**
13% traffic comes via mobile - more than
double last year; Mobile traffic share
OF WEB already over 50% in India***
8 *Source: Morgan Stanley Research; ** Source: Informa WCIS; *** Source: StatCounter Global Stats, 9/12

Mobile devices act as central hubs in our lives
Share of Time Spent Share of Time Spent
Smartphone Tablet
Listening
Watching to Music
Video 4%
7% Playing
Playing Talking Watching Games
Games 18% Video 4%
10% 8%
Surfing the
Listening Web/Email
to Music 35%
10% Social
Texting
Networking
16%
20%
Social
Networking
10%
Surfing the
Using Apps
Web/Email Using Apps
14%
15% 29%
Sample: smartphone and/or tablet users
9

They are work-life tools,
particularly among mobile sophisticates
Overall Effectives
Sophisticates Pragmatists
23%
My mobile device is my primary tool for 63%
organizing my work life 34%
4%
23%
An increasing amount of my work is 52%
accomplished through my mobile device 38%
14%
Among all mobile users, 27% of smartphone usage and 26% of tablet
usage is work related
10 Sample: smartphone and/or tablet users

“I look to save money at
And also personal tools stores that I shop at and sign
up for things to get offers on
my phone. I’m on the go all
the time and out with my
Overall Effectives family. I need access at my
fingertips.” - Lauren
Sophisticates Pragmatists
55%
My mobile device is indispensable because 45%
I'm always on the go 34%
79%
35%
My mobile device is my primary tool for 50%
organizing my personal life 19%
74%
55%
Having a mobile device makes me more 51%
efficient 58%
85%
22%
My mobile device is my primary tool for 44%
organizing my household 5%
52%
11 Sample: smartphone and/or tablet users

However, mobile devices are not yet substitutes for computers
Overall Effectives
Sophisticates Pragmatists
11%
63%
Now that I have my mobile device,
I don't really need a computer.
9%
4%
Sample: smartphone and/or tablet users
12

Most users only open half of their apps regularly
Of the apps installed on your mobile device, how many have you used in past 30 days?
Smartphone
Tablet
All
All 5%
5%
Most Most
17% 23% Hardly any
34%
Hardly any
40%
About half About half
38% 38%
Sample: smartphone and/or tablet users
13

People love their mobile devices
BEYOND “I take my smartphone everywhere. Life collapses if I
ESSENTIAL forget it.”
MULTI- “My tablet allows me to see details, develop what I
TALENTED want, check or do work; I have more freedom.”
LIFE “I can get information anytime on any device, no
matter where I am… it’s there 24/7…super human.”
CHANGING
TRULY “I always have an answer; my smartphone makes me
SMART feel like a hero when I solve problems.”
FUN “I feel like a wizard when I play and discover new things.”
14

Massive potential for growth in U.S. mobile marketing spend
11.7% OF among U.S. consumers is now spent
on mobile devices*
TIME
JUST 1% is committed to mobile marketing* —
OF AD SPEND same for U.S. and globally
U.S. mobile ad spend predicted to
NEARLY 5X grow from $2.3 billion (2012) to
BY 2016 $10.3 billion (2016)*
15 *Source: eMarketer

ARE BRANDS
WELCOME
in this intimate space?
ATTITUDES
towards mobile
marketing formats
16

In 3 years, attitudes towards offline ad formats have shifted
How would you characterize your attitude towards each of the following formats of advertising?
VERY/SOMEWHAT
FAVORABLE AdReaction 2009 CHANGE AdReaction 2012
TV 47% +2 49%
Magazine 44% -3 41%
Cinema 40% -8 32%
Billboard 36% -3 33%
Newspaper 34% +6 40%
Radio 34% +6 40%
Product 28% 0 28%
Placement
Telemarketing 4% +3 7%
17 Sample: General Population Online Audience

Mobile marketing is improving but has a ways to go
How would you characterize your attitude towards each of the following formats of advertising?
VERY/SOMEWHAT
FAVORABLE AdReaction 2009 CHANGE AdReaction 2012
Opt-In Email 27% +1 28%
Online Display 24% -2 22%
Online Video 22% -6 16%
Ad-Supported
18% -2 16%
Games
Online Search 21% -5 16%
Social Media 21% -8 13%
Mobile 7% +2 9%
Non-Opt-In 7% +2 9%
Emails
18 Sample: General Population Online Audience

Emerging digital formats show promise
POSITIVE NEUTRAL NEGATIVE
Localized or tailored deals 10% 22% 41% 10% 10%
Brand websites or microsites 7% 21% 43% 14% 11%
Brand posts in social newsfeeds 6% 21% 34% 14% 13%
Ads on online music players 4% 7% 27% 20% 33%
very favorable somewhat favorable neutral somewhat unfavorable very unfavorable
Sample: General Population Online Audience
19 Note: The above formats were not tested in 2009

Tablet users more receptive towards mobile ad formats
% VERY/SOMEWHAT FAVORABLE
Brand posts in social newsfeeds 18%
22%
Mobile search ads 13%
16%
SMS text 13% 17%
Mobile display ads 12% 17%
Mobile music player ads 11% 15%
Mobile video ads 12% 17%
In-app ads 12% 18%
Augmented reality 10% 16%
SMARTPHONE USERS TABLET USERS
Question: How would you characterize your attitude towards each
20 of the following formats of advertising on mobile devices?

Audiences differ and have varying needs and expectations
MOBILE MOBILE MOBILE
SOPHISTICATES EFFECTIVES PRAGMATISTS
Tech savvy, mobile can replace Use mobile device as a tool for View advertising as the
computer; younger, male organizing life and household necessary cost of free content
Attitudes about Mobile Marketing: Attitudes about Mobile Marketing: Attitudes about Mobile Marketing:
Want mobile advertising to be great; Want a tangible quid pro quo Tolerant of mobile, provided it’s
they benefit form the experience relevant and value-add
and the reward
“I am always on the go and looking for “I know ads are a good thing because
“My mobile is genius – the ads ways to save money.” they keep things free; sometimes they
can be too.” benefit me.”
21 * Two additional typologies also emerged, but due to their low usage and receptivity, they are not the focus of this study

Sophisticates are most receptive audience
to mobile advertising
How would you characterize your attitude towards each of
the following formats of advertising on mobile devices?
47%
Sophisticates Effectives Pragmatists
44%
41%
40%
39%
37% 37%
34%
25%
22%
19%
18%
17%
16%
15% 15%
14%
11%
10%
9% 9%
8%
7%
6%
Mobile search Mobile video ads Mobile display SMS text ads Ads on mobile Brand posts in In-app ads Augmented
ads ads music player social reality
newsfeeds
Sample: smartphone and/or tablet users
22 Percentages reflect number of respondents who expressed ‘Very Positive’ or ‘Somewhat Positive’ attitudes

Younger respondents are more positive towards mobile ads
How would you characterize your attitude towards each of the following formats of advertising on
mobile devices?
Positive Attitudes Towards Mobile Ads by Age
18-34 35-49 50+
30%
24%
23%
22% 22% 22%
20% 20%
18%
13%
12%
11% 11%
10% 10%
8%
7%
4% 4%
3%
2% 2% 2%
1%
Mobile search Mobile video ads Mobile display SMS text ads Ads on mobile Social In-app ads Augmented
ads ads music player newsfeeds reality
Sample: smartphone and/or tablet users
23 Percentages reflect the number of respondents who expressed ‘Very Positive’ or ‘Somewhat Positive’ attitudes

Men are more accepting of mobile advertising
How would you characterize your attitude towards each of the following formats of advertising on
mobile devices?
Positive Attitudes Towards Mobile Ads by Gender
Male Female
19%
18%
16% 16% 16%
15% 15% 15%
13%
11%
10%
9%
8% 8% 8%
6%
Mobile search Mobile video ads Mobile display SMS text ads Ads on mobile Social In-app ads Augmented
ads ads music player newsfeeds reality
Sample: smartphone and/or tablet users
24 Percentages reflect the number of respondents who expressed ‘Very Positive’ or ‘Somewhat Positive’ attitudes

Apple users are more receptive to mobile ad formats and
in-app ads
How would you characterize your attitude towards each of the following formats of advertising on
mobile devices?
Positive Attitudes Towards Mobile Ads
iPhone + iPad Users vs. Overall
iPhone + iPad Other
24%
23%
22%
20% 20% 20%
18% 18% 18%
11% 11% 11%
10% 10% 10%
9%
Mobile search Mobile video ads Mobile display SMS text ads Ads on mobile Social In-app ads Augmented
ads ads music player newsfeeds reality
Sample: smartphone and/or tablet users
iPhone + iPad n=110; not iPhone + iPad n=690
25 Percentages reflect the number of respondents who expressed ‘Very Positive’ or ‘Somewhat Positive’ attitudes

Mobile ad favorability is lower in the U.S. than around
the world
How would you characterize your attitude towards advertising on….?
VERY/ SOMEWHAT FAVORABLE, %
Global Average 23 29
Kenya 48 55
Nigeria 48 39
India 43 51
South Africa 30 35
Brazil 23 29
China 22 30
Mexico 19 19
Italy 19 26
Turkey 17 28
UK 14 25
Germany 13 28
France 13 22
Spain 12 18
US 11 16
Canada 11 9
26 Sample: smartphone users Sample: tablet users

Users have high expectations for mobile
1 2 3
Mobile Mobile Will Know Mobile Will Offer
Will be Who I Am and an Exchange of
Competent Target Accordingly Tangible Value
And audiences are receptive to mobile marketing when it’s done right.
27

How marketers meet user expectations impacts ad
effectiveness
AdIndex® for Mobile In-Market Ad Effectiveness Norms Mobile Best Performers
Percent Impacted: Delta (Δ) Overall Mobile Performers
Mobile Worst Performers
+41.9
+26.4
+17.3 +17.0
+16.3
+14.3
+10.1
+4.8 +3.8 +4.3
-4.3 -0.5
-1.3 -5.2 -5.7
Aided Brand Mobile Ad Message Brand Purchase
Awareness Awareness Association Favorability Intent
Source: Dynamic Logic’s AdIndex for Mobile Norms, data from last 3 years through Q1/2012
28 Overall Mobile N=181 campaigns, n=127,191 respondents. Delta (Δ)=Exposed-Control

PRINCIPLES
for
BRAND SUCCESS
IN THE
MOBILE SPACE

Marketers need to respect mobile’s unique audience
and platform
SURPRISE &
RELEVANCE ENGAGEMENT
DELIGHT
PLAY TO
EXCHANGE COMPETENCE
STRENGTHS
TIME & PLACE
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Principle #1: Relevance
Mobile content needs to be tailored to both the target audience
AND the context where they will most likely experience it.
Dievas Watches (Mobile Display Ad)
“I was on ablogtowatch.com reading a watch
review when I saw this ad. I’ve never heard of
Dievas before. This ad prompted me to
research this new watch brand and I ended up
purchasing one of their watches.”
- Andrew
31

Users largely desire content from personally-relevant
companies
What types of companies or brands would you most like to see delivering services or features for
your mobile devices?
Local restaurants 33%
Retail stores 27%
Local
Food products/brands 22%
Restaurants
33% Online shopping sites 19%
Quick service restaurants 17%
Sports teams/leagues 16%
Newspapers or magazines 16%
Retail Banks/Financial services 16%
27% Drink products/brands 15%
Hotels 14%
Airlines 13%
Technology companies 11%
Food Fashion/Designers 7%
Products Telecommunication companies 6%
22% Automotive companies 5%
32 Sample: smartphone and/or tablet users

Principle #2: Engagement
Mobile provides opportunities to go deeper when users
have moments of downtime.
Dove (Mobile Display Ad)
• Dove teases the promise of the perfect
hairstyle and delivers with a hairstyle
generator that invites people to explore
• It is simple and delivers value beyond the
brand
33

Principle #3: Surprise & Delight
Mobile can put a smile on the face of your consumers
with every connection you deliver.
Sam’s Club (Mobile Website + App)
“I would have never considered Sam’s Club
but it came up in the sponsored link when I
did my search. I was so surprised at the
quality of the website and the app was
just amazing. Their app was like eye
candy. I would seriously consider getting a
membership based on how cool their app
was, it made it so easy to shop.”
- Angela
34

Principle #4: Play to Mobile’s Strengths
Mobile plays a unique role in the wider media mix since it is both
portable and personal.
Sephora (Mobile Website + App)
• The mobile website has additional features
such as a shopping list creator, GPS store
locator and order tracker; the user interface is
designed to be simpler and cleaner to display
better in mobile
• The mobile app has the same functionality as
the website plus a “Try It On” tool and
barcode
35

Principle #5: Exchange
Users are looking for something of value in return for marketers
to access to their mobile phones.
Pillsbury (Mobile Display Ad)
“The smaller ad drew me in with their recipes.
And, they are giving me something,
not trying to sell me something.”
- Sharon
36

Relevant offers, like deals and coupons, are most valued
Mobile coupons get 10 times
Which of the following things would you like to see brands
the redemption rate of
delivering to your mobile device? traditional coupons.
(Mobile Marketer, 2012)
44%
DEALS &
COUPONS 27% 27%
25%
FREE INTEREST-
TOOLS BASED LOCATION- 18%
(e.g., INFO BASED
LATEST 15%
shopping (e.g., recipes, INFO
lists, sports (e.g., store PRODUCT FUN
reminders) scores) locations, NEWS FEATURES
promotions) (e.g., branded
game, song
downloads)
37 Sample: smartphone and/or tablet users

Particularly among effectives and pragmatists
% Who Want to Get Deals or Coupons Be Sensitive to Discount
from Brands Amount and Control of Offer
“Starbucks, one dollar off
Sophisticates 40%
something I like, any size and any
flavor.” - Angela
Effectives 56%
Pragmatists 58%
Should Greater Intrusion Merit
Greater Discount?
“I was waiting for a specific
text, when this came through
and it made me a little
annoyed. However, if the
coupon was 50% or more I
would like to get as a text.”
- Sharon
38 Sample: smartphone and/or tablet users

Pragmatists are most willing to accept ads for free access
Overall Sophisticates Effectives Pragmatists
MOBILE APPS ATTITUDE: I'm happy to see ads in MOBILE WEBSITE ATTITUDE: I'm happy to see ads on
my apps as long as the apps are free. mobile websites as long as the websites are free to access.
30% 28%
48% 50%
34% 35%
68%
57%
“I know ads are a good thing because they keep things free;
sometimes they benefit me and sometimes they don’t.” - Stacey
39 Sample: smartphone and/or tablet users

If users see what they want, their brand opinion will improve
When using your mobile device, which of the following can improve your opinion of a brand?
They send or display deals or coupons 34%
They have a good mobile website 23%
Their website works well on my iPhone/iPad (no Flash content) 17%
They send information tailored to my interests 16%
They offer an app for my mobile device 16%
They give me access to free tools 14%
They send information specific to my location 14%
Their mobile website makes it easy to download their app 11%
They send the latest breaking product news 10%
They let me do something entertaining 8%
They send me Facebook/Twitter posts with links that work on my
mobile device
5%
40 Sample: smartphone and/or tablet users

Principle #6: Competence
More than any other media, mobile marketing needs to be high
quality, extremely functional and user friendly.
Subaru (Mobile Website)
• Subaru’s mobile website is simple, clean
and quick to load.
• With two taps, you get location-based
deals.
41

What makes a good mobile website?
Loads quickly 59%
Speed & Display:
Fast, functional and Displays clearly on my mobile device 50%
easy to find
Easy to find via mobile search 32%
Easier to use than desktop website 20%
Unique to Screen: Offers different features than
13%
Differentiates from desktop website
desktop website Looks better than desktop website 13%
More fun than desktop website 12%
Targeted: Includes location-based features 16%
Leverage location
42 Sample: smartphone and/or tablet users

What makes a good app?
Free to download 56%
Acquisition: Quick to download 42%
Free, quick and
Easy to find in app store 22%
easy to obtain
Easy to find on brand's website 17%
Competent: Doesn't crash 53%
Doesn’t crash, fail or Doesn't ask for a rating too often 36%
overstep boundaries Works for all software versions 28%
Clear: Clearly explains updates 32%
Clear & comprehensive description in
Description & updates app store
27%
Easier to use than desktop website 20%
Not too complex: Different features than desktop website 12%
Apps not expected to Includes location based features 12%
best online website Looks better than desktop website 11%
More fun than desktop website 10%
43 Sample: smartphone and/or tablet users

Be mindful of resources: “rude” intrusion can damage
brand perceptions
When using your mobile device, which can damage your opinion of a brand?
Requesting too much
46%
Biggest Disadvantages of Apps?
personal info
Sending me unwanted ads
or posts
45% Drains my
battery
No way to opt-out of ads 45% 36%
Slow or incompatible apps 38%
Wants too
A mobile website that
29% much info
keeps promoting their app
19%
Flash content that doesn't
24%
work on my device
Sending links that don't
21%
work on my device Afraid my mobile
Non-optimized mobile will be bombarded
17%
website with ads
18%
No app for my device 13%
44 Sample: smartphone or tablet users
and/or tablet users

Principle #7: Time & Place
Mobile content needs to be tailored to when and where it is most
likely to be consumed.
Home Depot (Mobile App)
• With Home Depot, people can scan
QR or UPC codes in store and read
product info or reviews or share or
add to shopping list
45

Users will offer location information to get right content and
promotions
Overall Sophisticates Effectives Pragmatists “I want something
that will help me make a
decision and meet me
where I am at in my
search.” - Michael
27%
I'm happy to share my location to 45%
get more relevant services and
38%
offers
36%
25%
I would like to get info specific to 30%
my geographical location (e.g.,
32%
store locations and promotions)
36%
46 Sample: smartphone and/or tablet users

MOBILE
in the
MEDIA MIX
ANY BRAND EXPOSURE
CAN DRIVE CONSUMERS
TO MOBILE
47

46% of users likely to take a mobile action based on
recommendations from friends or family
If I saw ___________, I would likely take a mobile action*:
Recommendations 46%
*AT LEAST ONE OF THE FOLLOWING ACTIONS
TV Ad 38%
Brand in Store Online 38%
Brand in Store Offline 37% BRAND VISIT
SEARCH WEBSITE
Print Ad 36%
Event 33%
Online Ad 33%
DOWNLOAD LIKE/FOLLOW
30% APP BRAND
Brand Post in Social Newsfeed
Radio Ad 29%
Billboard Ad 27%
48 Sample: smartphone and/or tablet users

Various brand touchpoints drive these audiences to mobile
Mobile-reliant Sophisticates are likely to
engage with a brand on mobile after most
forms of brand exposure *AT LEAST ONE OF THE FOLLOWING ACTIONS
SOPHISTICATES
BRAND VISIT
Recommendations are the clear motivator SEARCH WEBSITE
for this goal-directed audience
E F F E C T IVE S
Recommendations and in-store brand DOWNLOAD LIKE/FOLLOW
APP BRAND
exposure drive Pragmatists to their mobile
devices for more info
PRAGMATISTS
*Sample: smartphone and/or tablet users
49 Quantitative data by segment available by request

Mobile ad exposure mostly drives users to a brand’s website
or search
Which of the following actions have you taken as a result of seeing a mobile ad?
Visited the brand website 14%
Searched for the brand 10%
Clicked/interacted with ad 9%
Looked for brand in a store 8%
Downloaded brand’s app 7%
Purchased the brand 7%
Recommended it 5%
Mobile display ads are just one element of a mobile campaign; use display to drive
traffic to an optimized website for continued engagement
50 Sample: smartphone and/or tablet users

MARK ETING
BEST
PRACTICES
for
MOBILE
DISPLAY ADS,
WEBSITES,
AND APPS
51

Mobile display ads need clear branding, communication
and call-to-action
What makes a good mobile display ad?
do: don’t:
clearly brand your creative show your brand only on a product shot
clutter your ads with too much text or too
offer a clear call-to-action
many logos
target as tightly as possible repurpose online creative only to leave
it cropped
make the ads interactive use intrusive formats unless context is
and engaging highly relevant
52

Mobile websites should be fast and functional
What makes a good mobile website?
do: don’t:
make it fast, clean and feel compelled to outdo your
easy to use online website
keep the latest news on top forget mobile users are goal
and tailor to the location directed
minimize taps and resizing value entertainment over competence
Simple is safest until network speeds improve
53

Mobile apps must be easy to acquire and easy to use
What makes a good mobile app?
do: don’t:
be relevant and free if crash (don’t be too resource intensive)
possible
clearly explain what you offer build one unless it will be used regularly
and what you’ve updated
offer users something in make it too complex
return
aim to surprise and delight ask for more than you need (e.g.,
so users come back personal information, updates)
54

AdReaction is part of Millward Brown’s Changing Channels campaign, a series
of published insights helping marketers navigate the changing media landscape
and explore new opportunities to connect with consumers.
VISIT WWW.MILLWARDBROWN.COM FOR MORE INFORMATION.
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