1. Presents
Dive Mobile

2. 22

3. 74% of China’s netizens own a
smartphone
And they spend 2 hours a day on their
phone using the internet
Data Source: CNRS, 2014
3

4. 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

5. Source: eMarketer
5
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.

6. But mobile ad spends still don’t
match the growth in impressions
6
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

7. We know so little about what consumers
think about mobile advertising
We have some data on what people are doing on
their mobiles but not what they think about brand
communications on mobiles.
7

8. 8
DOING THINKING
?

9. We wanted to know
What 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?
9

10. So we asked
Quantitative Research
450 Respondents
One on one interviews in 7 markets
T1 - Shanghai, Beijing
T2 - Xiamen, Wuhan
T3 - Hefei, Quanzhou, Shijiazhuang
10

11. 89%
Of people think mobile
advertising is annoying
or disruptive
11

12. 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
12

13. 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
13

14. They aren’t necessarily wrong about
junk advertising
14
8.5the number of ads an
average person sees a
day on their mobile

15. But, this is not the whole
picture
15

16. 75% Interesting
Our feelings toward mobile
advertising is a bit more ambivalent
Necessary
(2%)
94% Necessary
89% Annoying
16

17. This is consistent across tiers
0
10
20
30
40
50
60
70
80
90
100
Annoying Interesting Necessary
Tier 1 Tier 2 Tier 3
17

18. 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
Feel
Interested
Notice
Will
Purchase

19. Our behavior reflects our ambivalence
19
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

20. Mobile ads have the biggest
influence on purchase intent
20
ADVERTISEMENT PLACEMENT THAT WOULD INFLUENCE
PURCHASE INTENTION MOST
38.7%
Smartphone
30%
PC
23%
Tablet
8.3%
Phablet

21. 21
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
Tier 1 Tier 2 Tier 3
Mobile is even more important in Tier 1 and 2

22. Those interested in your ads are 2.4 times
more likely to purchase your product
22
Like
Annoyed
22.6%
Notice
24.5%
Notice
7.1%
Will Purchase
2.9%
Will Purchase

23. So, what do they want?
23

24. What we want from mobile ads is not so different
from what we all look for in all advertising
24
Utility Amusement
Uniqueness Affirmation

25. 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
25

26. Not all ad types are created equal
26
Picture Ad
(48.6%)
Animation/Video Ad
(36.1%)
PREFFERED AD FORMAT
Interstitial Ad
(21.2%)

27. Not all ad spaces result in engagement
27
38.9
30.2
40.3 36.1
20.6
50.3 45.3
18.4
43.1
25.4
24.7
34.6
27.4
26.9
27.8
17.9
20.1
28.2
24.5
40.5
16.8 16.4 14.4 19
22.8
18.2
14.2
23.4
15.5 16
17.5 15.3 15.8 13.3
24.9
10.7
17.3
26.7
14 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 Real
Estate
Social Tools Weather
Will purchase
Like it
Interesting
Take notice
Ignore

28. So, now what?
28

29. 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.

30. 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.

31. 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.

32. IMPLICATION
Be smart about markets
Focus on Tier 1 & 2 markets due to high penetration of
smartphone in those areas

33. 33
CONTACT US
Jeanette Phang
Jeanette.Phang@omd.com
DIRECTOR- BUSINESS INTELLIGENCE
Bhasker Jaiswal
Bhasker.Jaiswal@omd.com
MANAGING PARTNER - BUSINESS
INTELLIGENCE
Alvin Foo
alvin.foo@airwaveapac.com
HEAD OF AIRWAVE