New Millward Brown Study Shows Mobile Consumers Expect More from Marketers and Will Reward Brands that Deliver
Mobile Ads Shown to be Effective, but Only 11% of U.S. Smartphone Users Favorable toward Mobile Ads
New York, November 27, 2012 – Consumers are prepared to reward brands that deliver on the promise of mobile marketing, but, so far, are disappointed, says Millward Brown’s 2012 U.S. AdReaction Report. The study, conducted in partnership with Millward Brown’s Dynamic Logic and Firefly Millward Brown units, analyzes consumer opinions and expectations related to mobile and provides a roadmap for marketers to drive brand growth through effective mobile marketing.
“What’s interesting about this research is the confirmation that there is significant untapped demand for mobile marketing that works,” said Joline McGoldrick, research director, Dynamic Logic. “Users have very high expectations for mobile marketing, and it is today, by and large, falling short. Users expect apps, mobile sites and ads to work and to target efficiently, and when they don’t—which is often—consumers are disappointed, giving mobile advertising a bad name.”
Normative data from Dynamic Logic’s AdIndex for Mobile
ad effectiveness solution indicates that mobile ads are approximately four times more effective than online ads at increasing brand awareness, message association and purchase intent. But according to the AdReaction study, only 11 percent of smartphone users and 16 percent of tablet users are favorable toward mobile advertising — a stark comparison to favorability rates of other media, including 30 percent for magazines and 27 percent for TV. McGoldrick continued: “This study underscores the fact that there has never been a more meaningful opportunity to win over consumers who are open to being wooed.”
With global mobile ad spending projected to triple to $18.6 billion by 20151
, and against the backdrop of a forecasted 1.5 billion smartphone and tablet users by mid-20132
, a number of AdReaction findings emphasize the opportunity:
- Fifty-five percent of users consider their device indispensable, with an equal percentage indicating that having a mobile device makes them more efficient
- Almost half report interacting with a brand on their mobile device following recommendations from friends or family members
- One-in-four report a willingness to relinquish privacy about their location to receive relevant content and promotion from marketers
- One-third report taking action in response to mobile advertising
- One-third say that receiving deals or promotions on mobile improves their opinion of the brand
Based on the study’s findings, Millward Brown recommends that mobile marketers commit to 10 principles to win over audiences and build lasting value for brands. Mobile Display
- Offer a clear call-to-action. No medium is more primed to engage a consumer on the spot. Make sure your mobile ad does everything possible to prompt a response.
- Target the person, the moment, the location. Users have an expectation of mobile’s built-in intelligence, and poor targeting suggests that brands are not interested or too lazy to send them “the right ads.”
- Develop integrated mobile campaigns. Mobile ad units are a layer of the mobile continuum — not a strategy. Use display ads to drive traffic to an optimized website or app for continued engagement.
- Be fast. Be clean. Be functional. Don’t feel compelled to outdo your online website, but optimize it for the mobile platform and across devices. Embrace the goal-directedness of the mobile user and minimize taps.
- Don’t value entertainment over competence. Deliver functionality first and reward later.
- Keep the latest news on top and tailor to the location.
- Make apps easy to acquire, user friendly, crash proof, and free of charge.
- Be relevant. Design with the core target, primary use, and operating system in mind. Answer the when, where, and why about your app.
- Be mindful of using audience resources. One-third of users say apps drain their battery while one-in-five feel that apps want too much info.
- Once you’ve done the above, aim to surprise and delight. Users report using only half of their apps regularly. Provide a reason for them to come back.
Done properly, the report concludes, mobile marketing can inspire, connect and drive action — and ultimately help companies grow their brand.
2Source: Morgan Stanley
For Dynamic Logic