Dynamic Logic: Beyond the Click

FIRST LOOK AT MOBILE PERFORMANCE

Early Research Shows Mobile Advertising Campaigns Increase Brand Metrics

According to eMarketer, this year's mobile advertising spend is estimated to be over £2.45 million globally, to triple by the year 2011. Yet, only 13% of all mobile advertising is intended for branding compared to 87% for direct response. Are marketers missing out? Firstly by not investing in mobile advertising at all, and secondly, by using it primarily as a DR vehicle?

Dynamic Logic has completed over 30 AdIndex® for Mobile research studies in the U.S. and the UK to measure the branding effects of mobile advertising campaigns across a number of industry sectors, including alcohol, automotive, consumer electronics, entertainment, financial services, FMCG, retail, telecomm, and travel. The campaigns include display ads on mobile WAP (Wireless Application Protocol) sites and downloadable mobile applications.

Comparing people exposed to the mobile campaigns to those not exposed, the initial performance averages from 21 studies suggest that mobile advertising can be an effective medium for raising brand metrics throughout the purchase funnel. An average increase of +23.9 percentage points in Mobile Ad Awareness shows that these campaigns generally cut through and grab users' attention. Average increases in Brand Favourability and Purchase Intent of +5.4 and +4.7 percentage points, respectively, support the ability of mobile advertising to change consumers' attitudes towards a brand and to drive intent to purchase.

Source: Dynamic Logic's AdIndex for Mobile; Early Averages as of July 2008, N=21 campaigns, n=25,050 respondents
Delta (Δ) represents percent of people impacted by advert exposure; calculated Delta (Δ) = Exposed-Control
* Please note small sample size

Part of the reason for these positive increases may be a result of the newness of the medium. People may be intrigued and pay more attention to the advertising on their mobile phone since it is presented on a smaller screen and is located in a less cluttered environment compared to the Internet. More research and campaign analysis is needed to help marketers understand what will continue to work best on mobile devices.

Dynamic Logic's latest AdReaction Study shows that only 37% of people in the UK have used their mobile phone or wireless device to connect to the Internet. While reach may still be small, this will most certainly grow as providers offer more competitive packages for consumers to use their mobile phone to access the Web. Certain brands may be able to reach a more targeted audience of consumers via mobile branding campaigns on WAP sites. Reaching a smaller, but more engaged and relevant audience may provide a worthwhile return on investment. Mobile advertising is not going away, and now may be the best time to test out the waters before consumers force brands to jump in head first.

While these mobile averages are only based on a small number of campaigns and should be used for directional purposes, it is important to begin comparing mobile campaigns' effectiveness to an industry average. As we conduct more studies, we will continue to build these initial averages into a normative database that can be used for a more granular look into the mobile data in the same way our MarketNorms® database is used for online performance benchmarking and planning.

To learn more about AdIndex for Mobile, please contact europe@dynamiclogic.com.

*Note: These findings are based on 21 mobile ad campaigns across a variety of industries. The averages could significantly change as the number of campaigns increases, so any comparison made to them is directional.