Mobile Marketing Survey. Looking at the use of mobile media, tactics and budgets, by Irish marketers in 2013 and 2014

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1 Mobile Marketing Survey Looking at the use of mobile media, tactics and budgets, by Irish marketers in 2013 and 2014 Paul Dalton 19/3/2014

2 SURVEY 2014 CONTENTS 1 INTRODUCTION 2 Forward by Tom Trainor CEO Marketing Institute of Ireland 2 Introduction by Fintan Lonergan MD O2 Media Ireland 3 Executive Summary 4 SECTION 1 ABOUT THE RESEARCH 5 Methodology & Sample Size 5 Sector breakdown 6 Industry breakdown 7 SECTION 2 - MOBILE SPENDS 8 Mobile Marketing Spend in Mobile Marketing Spend Planned for Size of Growth Year on Year 10 Where the budget is coming from 10 SECTION 3 - MOBILE TACTICS 11 Mobile Marketing tactics used in Mobile Marketing tactic planned for SECTION 4 - IMPORTANCE, BENEFITS AND USES OF MOBILE MARKETING 13 Importance with consumers 13 Reasons to use mobile 14 Strengths of mobile marketing 15 SECTION 5 HOW IRISH MARKETERS RATE THEIR COMPANIES AND THEMSELVES 16 Company approach to mobile 16 Senior Management 17 Personal understanding 18 Education 18 SECTION 6 FUTURE POSSIBILITIES 19 Challenges for Mobile Marketing 19 Most exciting developments 20 SECTION 7 THANK YOU 21 Thank you 21

3 SURVEY 2014 INTRODUCTION 2 FORWARD At the Marketing Institute we are always keen to ensure that we are keeping both ourselves and our members up to date with the latest trends. The last ten years have seen huge growth in the ownership and the use of mobile phones in Ireland, and recently the growth of newer, more advanced devices and Smartphones has meant that a new area of marketing has been emerging. The media world has been changing too. Traditional media has been giving ground to digital media, with search advertising and display contesting for supremacy in digital, and no sooner do we see those battles finished, mobile comes looking for its share. But where does mobile fit in this new marketing world? How well equipped are Irish marketers to face this new challenge? Are they facing this new challenge? We believe that success in this increasingly important sector needs a light shining on where the market was last year, where it is going this year and what excites marketers in this area for the future. In the first study of its kind we worked closely with O2 Media to conduct a research piece into mobile marketing practises amongst the cream of Irish Marketers by using the membership of the Irish Marketing Institute as the base for this study. You will find that marketers are trying to embrace mobile, to push for more investment and training, to deliver plans that take advantage of this multi-faceted medium and leverage the opportunity that the mobile world represents Tom Trainor

4 SURVEY 2014 INTRODUCTION 3 INTRODUCTION At O2 Media we are working at the front lines of mobile advertising where mobile technology and mobile commerce converge. We see first-hand what the customer is doing, how their habits are changing, the adoption of new communication tools, new devices and new ways to engage with brands. The opportunity presented by mobile marketing can be seen clearly as some Irish brands take advantage of the mobile space, to create engaging content and connect in a more personal way with customers. We were delighted to work with the Marketing Institute to produce this report, it helps to put into context the conversation around mobile marketing, how it is part of the mix in Ireland, what challenges marketers face and how they plan to leverage this revolutionary change in consumer behaviour. I believe this insight into a growing segment will help marketers understand the potential that mobile brings, where they are doing well, what they are missing, what they could do more of and how their immediate plans compare with those of the wider marketing communities plans for the future. Fintan Lonergan

5 SURVEY 2014 EXECUTIVE SUMMARY 4 EXECUTIVE SUMMARY This research, the first of its kind in Ireland, takes a deeper look at attitudes to mobile marketing, in particular looking at marketing tactics, spend and how companies are responding to the opportunity presented by Smartphones and mobile advertising. It is apparent that there is a lot of opportunity in the area of mobile marketing in Ireland and that marketers want, and need, to understand this opportunity better. Spend patterns are changing, with traditional media set to take the brunt of the shift onto mobile and all forms of mobile marketing set to increase in usage and budget in Among the key findings of the research are: 65% of marketers are shifting budget from traditional media to spend on mobile marketing 76% of those surveyed consider that mobile marketing gives them an advantage over competitors 59% said that Location Based Targeting is the most exciting development in Mobile Marketing 79% of marketers agree that mobile is highly important to consumers 68% believe their organisation underperforms in the area of mobile marketing, while 41% don t believe that Senior Management understands the potential of mobile. 23% admit that they don t have a mobile strategy at all.

6 SURVEY 2014 ABOUT THE RESEARCH 5 METHODOLOGY & SAMPLE SIZE The survey was conducted online with members of the Marketing Institute over a period of three weeks from 7th Feb to 7th March 2014 The survey was delivered by to the membership of the Marketing Institute of Ireland and then followed up with a second reminder five days before the survey closed. A link was also presented on the Twitter account of the MII. 315 Respondents were screened as working in a Marketing role within their company and 252 valid responses were recorded.

7 SURVEY 2014 ABOUT THE RESEARCH 6 SECTOR BREAKDOWN Q AS A MARKETER, DO YOU WORK ON THE CLIENT OR AGENCY/CONSULTANCY SIDE? 24% 76% Client Agency or Consultancy Well represented responses with three quarters client side representation and one quarter Agency representation. Q WHICH OF THE FOLLOWING BEST DESCRIBES YOUR TARGET MARKET AUDIENCE? 41% 32% 27% B2B B2C Both As with previous, split fairly evenly across the target audience in respect of target audience.

8 SURVEY 2014 ABOUT THE RESEARCH 7 INDUSTRY BREAKDOWN Q WHAT INDUSTRY SECTOR IS YOUR ORGANISATION IN? IT / Telecommunications Other Banking / Finance / Insurance Consultancy / Agency Media / Publishing Education / Training Retail Pharmaceutical / Medical / Healthcare FMCG Transportation / Travel Arts / Entertainment / Recreation Manufacturing Wholesale / Distribution Energy Non-Profit / Trade Association Hospitality Government Alcohol Agriculture / Forestry / Fishing Utilities 3% 3% 2% 2% 2% 2% 2% 1% 1% 5% 5% 4% 4% 6% 7% 7% 9% 10% 11% 12% 0% 2% 4% 6% 8% 10% 12% Strongest representation from IT and Telecoms and lowest from Utilities, but all industries represented.

9 SURVEY 2014 MOBILE SPENDS 8 MOBILE MARKETING SPEND 2013 Q WHAT % OF YOUR BUDGET WAS SPENT ON MOBILE IN 2013? >1% >1% 15% 3% 28% 53% 0-5% 6-10% 11-20% 21-40% 41-80% 81%+ 53% of those surveyed spent 5% of their marketing budget or less on mobile in 2013 Only 19% spent more than 10% of their budget on mobile marketing seems to have been a year of tentative spending in Mobile Marketing with Irish companies moving forwards slowly and gradually beginning to see the opportunities that Mobile can bring. This is further evidenced by the shift in pace of Mobile Marketing spend in 2014.

10 SURVEY 2014 MOBILE SPENDS 9 MOBILE MARKETING SPEND 2014 Q WHAT % OF YOUR BUDGET DO YOU INTEND TO SPEND ON MOBILE IN 2014? 1% 7% 7% 27% 26% 32% 0-5% 6-10% 11-20% 21-40% 41-80% 81%+ 73% plan on spending more than 5% of their marketing budget on mobile marketing in Those intending to spend more than 10% has more than doubled from 19% in 2013 to 41% in In addition, those intending to spend more than 20% of their budget in 2014 on mobile marketing has risen to 15% from just 4% in 2013.

11 SURVEY 2014 MOBILE SPENDS 10 MOBILE MARKETING SPEND GROWTH 1% 50% 49% Increase Same Decrease 49% of those surveyed intend increase pend the same in 2014 vs 2013 Q WHERE IS THE ADDITIONAL BUDGET COMING FROM? Don't know Budget redirected from online desktop 7% 14% 65% redirecting budget from other media or traditional marketing Budget redirected from traditional marketing 65% Securing additional budget 14% 0% 10% 20% 30% 40% 50% 60% 70% TRADITIONAL MEDIA, RATHER THAN ONLINE, IS LOSING OUT AS MARKETERS INCREASE MOBILE MARKETING SPEND.

12 SURVEY 2014 MOBILE TACTICS 12 MOBILE TACTICS IN 2013 Q WHAT MOBILE MARKETING TACTICS DID YOU USE IN 2013? (TICK ALL THAT APPLY) Mobile Optimised Website 52% Mobile Social Media 48% SMS Messaging 42% Mobile Applications 36% Mobile Display Advertising* 28% QR Codes Location Based / GEO Targeting Mobile Paid Search 22% 24% 23% Mobile Video None of the above 15% 15% NFC / Bluetooth Mobile Coupons 5% 5% 0% 10% 20% 30% 40% 50% *Display on mobile site or in App 85% of Irish marketers are doing some form of mobile marketing The most common mobile tactic has been the move to a mobile optimized website. Consumers expect that a site is mobile optimized and this is clearly being acted on by the marketing professionals in Ireland. Social media was the second most used tactic, followed by SMS.

13 SURVEY 2014 ABOUT THE RESEARCH 5 MOBILE TACTICS IN 2014 Q WHICH OF THE FOLLOWING MOBILE TACTICS, IF ANY, DO YOU PLAN ON USING IN 2014? TICK ALL THAT APPLY Mobile Optimised Website 69% Mobile Social Media 60% SMS Messaging Mobile Application Mobile Display Advertising* Location based / GEO Targeting Mobile Paid Search Mobile Video 46% 44% 41% 38% 35% 34% QR Codes 23% Mobile Coupons 17% None of the above NFC / Bluetooth 10% 9% 0% 10% 20% 30% 40% 50% 60% 70% *Display on mobile site or in App All forms of Mobile Marketing tactics are set to rise in usage this year. There is no change at the top or bottom in terms of tactics being used in Mobile optimisation remains the highest priority and increased from 52% to 69%. Use of Mobile Coupons set to rise from 5% to 17% and Location based/geo targeting also rising from 23% to 38%.

14 SURVEY 2014 IMPORTANCE & BENEFITS 13 Q ON A SCALE OF 1-10, HOW IMPORTANT IS MOBILE IN THE LIVES OF YOUR TARGET MARKETS DAY TO DAY ACTIVITIES? (1 BEING "NOT AT ALL IMPORTANT" / 10 BEING "EXTREMELY IMPORTANT")? 25% 21% 20% 19% 15% 16% 13% 10% 10% 10% 5% 3% 3% 2% 3% 0% % ranked Mobile as 6/10 or higher in its importance to the Irish consumer. Of those who ranked 5 or less, 66% of those also stated that they had no mobile strategy. There is clear recognition from most of those surveyed that mobile is a huge part and influence on the lives of the consumers that they want to engage with.

15 SURVEY 2014 IMPORTANCE & BENEFITS 14 Q WHY DO YOU USE MOBILE MARKETING? (TICK ALL THAT APPLY) Stay ahead of the competition Brand Awareness 65% 69% Product / Service Promotion Other 51% 56% Loyalty & retention Internal communications Improve customer service Generate leads / Acquire new customers 42% 39% 38% 35% Drive website traffic Drive online sales 28% 27% Drive offline sales 15% Don't know 9% Decrease overall marketing costs Consumer Engagement 3% 2% 0% 10% 20% 30% 40% 50% 60% 70% The number one reason to use Mobile Marketing was the desire to stay ahead of the competition with 69% indicating it as a factor. Brand Awareness also ranked highly which positions mobile marketing strongly against traditional brand driving media. More than 4 out of 10 would use mobile marketing in order to grow loyalty and drive retention. Also, of great interest, is the high usage of mobile marketing for internal communications and importantly to drive customer loyalty.

16 SURVEY 2014 IMPORTANCE & BENEFITS 15 Q WHAT ARE THE MAIN STRENGTHS OF MOBILE MARKETING (TICK ALL THAT APPLY) Closeness of device to consumers 70% Powerful targeting 61% Unique capabilities of smartphone Instant response and results Data management / tracking capabilities Low cost of set up 52% 48% 45% 42% Return on investment 31% Cut through Mobile payments functionality 12% 18% Don't know Other (please specify) 2% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% The impact of mobile and the growth of Smartphones has been well documented, and this explosion of ownership is not lost on Irish marketers with 70% calling out the closeness of the device to their target consumer as the main strength of mobile marketing. Secondly is the powerful targeting that mobile allows that is unparalleled in other media. 61% of those surveyed called this out. Mobile is also seen as a strong return on investment with over 30% calling this out as one of the main strengths.

17 SURVEY 2014 HOW IRISH COMPANIES RATE 16 Q WHICH OF THE FOLLOWING STATEMENTS BEST DESCRIBES YOUR COMPANY'S APPROACH TO MOBILE MARKETING? 23% 7% 1% 46% We are using mobile as an extension of our existing channels We have a fragmented approach to mobile We don't have a mobile strategy 23% We are a mobile first organisation Don't know 23% of Irish marketers say they don t have a mobile marketing strategy. Q DO YOU FEEL SENIOR MANAGEMENT IN YOUR ORGANISATION UNDERSTAND THE FULL POTENTIAL OF MOBILE FOR YOUR ORGANISATION? 50% 40% 46% 41% 30% 20% 12% 10% 0% Yes No Don't know 41% of Irish marketers do not feel that Senior Management in their organization understand the full potential of mobile marketing.

18 SURVEY 2014 HOW IRISH COMPANIES RATE 17 Q ON A SCALE OF 1-10, HOW DO YOU FEEL YOUR ORGANISATION PERFORMS ON MOBILE MARKETING? (1 BEING "EXTREMELY POOR" / 10 BEING "EXTREMELY WELL") 20% 18% 16% 14% 18% 17% 12% 10% 8% 11% 11% 10% 12% 9% 6% 6% 4% 2% 3% 3% 0% % of those surveyed ranked their organization as 5 or below when asked how they perform in Mobile Marketing. 66% of those said that they didn t have, or don t know if they have, a mobile marketing strategy. Even where a mobile marketing strategy was in place, they still believed that they were not performing in the area of mobile marketing which suggests that there is still a gap between strategy and execution.

19 SURVEY 2014 HOW IRISH COMPANIES RATE 18 Q ON A SCALE OF 1-10, HOW WOULD YOU RATE YOUR OWN UNDERSTANDING OF MOBILE? (1 BEING "NO UNDERSTANDING" / 10 BEING "EXCELLENT UNDERSTANDING" 20% 18% 18% 16% 14% 12% 12% 13% 14% 10% 8% 10% 9% 9% 6% 6% 7% 4% 2% 0% 2% There is still much to be learnt with 43% scoring their own understanding as five or less. Q DOES YOUR COMPANY PLAN TO INVEST IN MOBILE MARKETING TRAINING/EDUCATION FOR STAFF IN THE FUTURE? 29% 32% 39% EDUCATION GAP 52% of those who rate their own understanding as 5 or less say their company has no plans to invest in mobile marketing training Yes Don't know No

20 SURVEY 2014 THE FUTURE 19 CHALLENGES FOR MOBILE MARKETING Q WHAT ARE THE BIGGEST CHALLENGES FOR MOBILE MARKETING IN IRELAND? TICK ALL THAT APPLY Lack of strategy 54% Lack of access to quality customer Marketers over-reliance on traditional Lack of technical expertise in workplace Privacy concerns Lack of Irish case studies Doesn't get the attention/budget it Lack of measurement/accountability Rate of change of technologies/devices Integration with other channels 42% 41% 39% 39% 36% 33% 31% 29% 27% Lack of creative opportunities Cost of conducting campaigns 20% 19% Other 4% 0% 20% 40% 60% Lack of a defined, and well executed mobile strategy, would seem to be the main challenge for marketers in Ireland, with 54% calling lack of strategy out as a big challenge. Cost does not seem to be a factor with only 19% calling that out as a barrier. Over-reliance on traditional forms of marketing also stood out as a challenge to Irish marketers with more than 4 in 10 seeing that as an influencing factor.

21 SURVEY 2014 THE FUTURE 20 MOST EXCITING DEVELOPMENTS Q WHAT ARE THE MOST EXCITING DEVELOPMENTS IN MOBILE MARKETING? (TICK ALL THAT APPLY) Location based targeting Smartphone/tablet functionality 59% 57% Real time advertising 51% Data tracking / analytics New creative opportunities/capabilities 4G 36% 39% 44% Mobile wallet Second-screen / Cross-screen marketing Mobile specific social platforms Wearable Smart devices Hyper-targeting Augmented reality 31% 27% 24% 24% 21% 19% Real time bidding Bluetooth/NFC 11% 11% Other 3% 0% 10% 20% 30% 40% 50% 60% Location based targeting came in first, with 59% calling it out as the most exciting development in mobile marketing. The advanced functionality of Smartphones and tablets and the possibility of real time advertising came in 2 nd and 3 rd. Augmented reality, real time bidding and Bluetooth brought up the rear as the least exciting developments.

22 SURVEY 2014 THANK YOU 21 THANK YOU Together with the Marketing Institute, O2 Media would like to thank everyone for taking part in this mobile marketing study. If you have any questions about the report, please contact: About O2 Media O2 Media was set up to help brands connect with consumers through what is the fastest growing digital marketing channel worldwide. Services include real-time location-based advertising, video messaging, app discovery and mobile CRM messaging for businesses. Clients include Aer Lingus, Heineken, Nissan, Dunnes Stores & IKEA. For more information on O2 Media see About The Marketing Institute The Marketing Institute is the professional body for Ireland's marketing people, in operation for over 50 years, and it envisions a professional marketing community that is qualified, effective and valued. With a mission to strengthen the profession of marketing in Ireland, the Institute aims to promote, support and elevate marketing as a key strategic business tool. It does this in three ways: by (1) delivering insights and expert content; (2) building the community of marketers; and (3) giving a voice to the profession. Content, Community and Voice are the three themes that underpin all Institute activities. For more information the Marketing Institute and education go to

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