Smartphone APP Advertising Effectiveness Research
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1 Smartphone APP Advertising Effectiveness Research
2 Background The size of mobile users has increased dramatically. In 2012, the number of Chinese mobile users has reached 1.11 Billion, and 55% of them are smartphone users. APP as an extreme important element of smartphones, has penetrated into everywhere of people s life, including dining, clothing, living, etc. It becomes a significant part of people s daily life and work, bringing them fun, convenience and variable discount information. Advertisers generally believe the value of APP traffic is greater than that of WAP now. In addition, just as other online ads and video advertisements, it is more effective adopting APP ads in early stages; therefore APP advertisement is now at the window of opportunity for advertisement style innovation. However, now the industry has encountered with some perceptional challenges with mobile ads (referred to APP ads). Advertisers not familiar with the effectiveness of mobile ads The role of mobile ads in the whole advertising system Effectiveness Perception Misunderstandings in advertisers perception to users attitude Negative effects from small screens Users opposition to mobile ads Measurement Users 2 No appropriate measurement tools to test mobile ads effect in scientific way No authorized research analyzes mobile ads effects
3 Objectives Discover the Value of APP ads on smartphone The objectives of this research is to analyze the value of smartphone as a new way of media and its characteristics, mainly including three aspects: Media Value of Smartphone Consumer Behavior of APP Advertising Value of APP 3
4 Research Introduction Phase I China Media Contact Research Content: As an emerging media contact point, smartphone s demographic coverage and its user profile Method: Computer Assisting Telephone Interview (CATI) Sample Size: in total from 169 cities covering from Tier 1 to Tier 5 cities Sample Description: Age from Phase II Mobile User Research Content: Analyze user s media habit and attitude for various forms of mobile ads and other media advertising forms Method: CLT in Beijing, Shanghai, Guangzhou and Chengdu Sample Size: 600 in total Phase III Mobile Ads Eye Tracking and Recall Test Content: Using eye tracker to objectively examine the visibility of mobile ads Method: Mobile device eye tracking test/laboratory control memory Sample Size: 160 in total 4
5 Media Value of Smartphone Consumer Behavior of APP Advertising Value of APP Smartphone has changed people s media habit and media contact way 5 5
6 % Media time spent share Time spent on smartphone in China is higher than in the US Users in China spend about 22% of media time spent on their smartphones, 10% higher than those in the US. Media time spent between US and Chinese consumers in % US China 42% 40% 35% 30% 29% 26% 33% 25% 22% 20% 15% 11% 14% 12% 10% 5% 6% 5% 0% Print Radio TV Internet Mobile 6
7 Smartphone is a significant part contributing to multi-screen life The consumption rate of smartphones is higher than that of TV in the group of age Penetration rate of various screen in the past week Mobile PC TV Age % 87% 86% Age % 91% 79% Age % 91% 82% Age % 87% 86% Age % 83% 88% Age % 75% 88% Age % 65% 90% Age % 47% 93% 7 Source: National Pan-Media Survey / Sample size: Question: Which of the following media did you use in the past week?
8 The frequency of smartphone is higher than that of PC 71% of users online using their smartphone more than 4 times a day, which is higher than the frequency of PC. Average 4 times a day Average 2.5 times a day 2-3 times a day Less than 1 times a day 18% 11% More than 4 times a day 71% Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: How often did you use for online in the past week? 8
9 00:00-01:00 01:00-02:00 02:00-03:00 03:00-04:00 04:00-05:00 05:00-06:00 06:00-07:00 07:00-08:00 08:00-09:00 09:00-10:00 10:00-11:00 11:00-12:00 12:00-13:00 13:00-14:00 14:00-15:00 15:00-16:00 16:00-17:00 17:00-18:00 18:00-19:00 19:00-20:00 20:00-21:00 21:00-22:00 22:00-23:00 23:00-00:00 Using proportion Smartphone increases media contact time, revealing its time flexibility Comparison of different media contact time 60% 50% Smartphone Online PC Online 40% TV 30% 20% 10% 0% Time 9 Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: When did you surf the internet by using in a day in the past week?
10 Smartphone highly rises media contact locations, indicating its mobility People use smartphone more frequent on public transport, working/studying places, living room and restaurants. PC and TV are more used only at home. Mobile Occasions of Smartphone's Access to The Internet On the bus / subway 66% On the bed at home 65% TV In Office / at school On the couch at home 57% 49% PC By a desk at home 37 Café / Restaurant Dining table at home In bathroom In a car On the train / plane 24% 24% 20% 9% 5% Source: Smartphone user survey / Sample size: 600 Question: Where do you use smartphone in the past month? 10
11 People use smartphones to satisfy various needs People tend to use smartphone for social networking, entertainment and information searching Watching Online Video Playing Games Entertainment Listening to music Camera / viewing photos Online Shopping Reading APP magazin Leisure Social Business/Study Information Browsing News Reading E-books Social Network/Blog/MicroBlog Chatting / network communications Working/upload/download files Studying/online education Sending & Receiving Back up contacts See stock market information View/ reserve/ use food information View/ reserve/ use traffic information View/ reserve/ use life information Searching for information Maps and Navigation Smartphone PC 11 Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: Which is your most commonly used equipment in the past month when you doing the following activities?
12 The time users spend with smartphone on internet browsing has increased, and much higher than PC In the past 6 months, time people spent on smartphone has increased dramatically, while the growth rate is negative for TV, radio, newspaper and magazine. Media time spent variation Decrease No change Don't know Increase Smartphone PC TV Magzine Radio Newspaper Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: Compared with the past 6 months, What happened to the time you spend on? 12
13 Media Value of Smartphone Consumer Behavior of APP Advertising Value of APP APP is an effective tool of marketing: Strong Precision marketing and Interactive Cooperation Marketing 13 13
14 APP can help reach light TV viewers APP can cover 66% of light TV viewers and 24% medium TV viewers. Level of watching TV among users who access internet by using APP Light TV viewers 66% High TV viewers 10% Medium TV viewers 24% Light TV viewers: Average watching TV less than 15 hours per week; Medium TV viewers: Average watching TV hours per week; High TV viewers: Average watching TV more than 31 hours per week; 14 Source: National telephone Survey / Sample size: Question: How long do you watch TV per week on the average? Which way do you access internet using smartphone?
15 APP brings people joyful experience, indicating good foundation of communication 54% of users agree that APP can bring them convenience, especially among age above 30 and house income above 10,000 RMB. Besides convenience, users also experienced the entertainment and various information APPs can bring, indicating good foundation of communication of APP ads. Bring me more convenience 54% Age Monthly Household Income Bring me more entertainment Can get various information Shorten distance among each others 21% 20% 5% 100% 80% 60% 4% 6% 4% 3% 7% 23% 16% 19% 21% 19% 17% 24% 26% 23% 16% 40% 20% 49% 60% 50% 53% 58% 0% Less than age 30 Above age 30 Less than 6000 yuan yuan Above yuan 15 Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: How the smartphone APP influence your life?
16 Most frequently used APPs are social/instant message ones Social/instant message, music, game, news and tool kind of APPs are more often used. Social Entertainment Information Tool Leisure Social/chat Music Video Games Photo/Videography Entertainment News Books/Reading Newspapers/magazines Navigation System tools Life Food Shopping Education Travel Sports 15% 11% 23% 21% 19% 35% 36% 29% 29% 46% 50% 46% 45% 41% 58% 69% 86% Most frequently used APP type 10% 10% 28% 22% 48% 91% 82% Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: Which is your most frequently used APP in the past one week? 16
17 Users use APP over twice on average, giving mobile ads the foundation of multi-time reaching their users Users more often use social, entertainment, game and book kind of APPs. 3.6 Frequency of using APP per day Average 2 times 1.1 Travel Food Navigation Shopping Medical care/health Finance Business Education Life Sports Efficiency Video Photo/Videography System tools News Music Newspapers/magazines Books/Reading Games Entertainment Social/chat 17 Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: How often did you use these APPs?
18 The download of different APPs has interconnections, contributing to more opportunities for precision marketing Factor analysis categorized APPs with high usage relationship together according to hidden interconnections between APPs. Advertisers can switch within different APPs under the same category to reach similar users; for instance, advertisers hoping to reach shopping APP users can accomplish by advertise on music and game APPs. APP Type Education Travel Efficiency Medical care/health Entertainment Factor1 Factor2 Factor3 Factor4 Food Social/Chat Photography/video-graphic Life Social Reading Tools Entertainment Books/Reading System tools Music Video Games Shopping Note: A factor type is represented by each color field. 18 Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: How often did you use these APPs in the past one week?
19 17:00-18:00 18:00-19:00 19:00-20:00 20:00-21:00 21:00-22:00 22:00-23:00 23:00-00:00 Using proportion Users use multi-screens at the same time shows the value of cross screen marketing for smartphones While people are using APPs, they can also do things like communicating with others, watching TV and playing computers. With only 12% of people doing nothing when using APPs, it hints the value of cross screen marketing for smartphones, especially from 7PM 9PM. Talking with someone else 62% 60% 50% 40% Doing nothing else 12% Watching TV 44% 30% 20% 10% 0% Period of time Playing Tablet 17% At the same time of using smartphone, they also Playing PC 34% Reading /newspaper /magazine 24% Access to internet by smartphone Access to internet by PC TV 19 Source: Smartphone APP Advertising CLT Research / Sample size: 600 Question: Which of the following activities will you do while using smartphone APP?
20 Media Value of Smartphone Consumer Behavior of APP Advertising Value of APP Mobile Ads are more noticed than PC Banner Ads by users 21 21
21 Scientifically and systematically evaluate the value of mobile adds by eye tracker The research includes 9 brands(intel, Pizza Hut, Yili, Samsung, KFC, Ford, Ikea, Peugeot and Este Launder), 3 styles(full Screen Interstitial, Full Screen Started Banner) of mobile ads and compare the result to that of PC ads. 受众沟通价值 Eye Tracking Test Visibility, scan attention: eye tracking index Watching time: longer watching time may lead to more chance of processing and memorizing Eye tracking heat map: Clearly shows the contents users pay attention to. 22 Visible Ads go into the edge of consumer s central vision area Scan Ads go into consumer s central vision area Notice Ads go into consumer s central vision and stay for processing
22 Mobile ads are more noticed than PC banner ads The average of Visibility, scan attention for mobile ads are significantly higher than PC banner ads. The percentage of attention is over 40%, twice of that for PC banner ads. APP ads has an average of watching time for almost 1 second, 5 times over that for PC banner ads. Banner Example Visible Scan Notice Fixation Duration Smartphone APP Ads 81% 70% 44% 0.89s vs. PC Banner Ads 52% 29% 19% 0.15s *Smartphone APP ads include: 开屏 插屏 and banner ads 23 Fixation Heat Map Low Fixation High
23 MB discovers APP ads are more effective if their creation follow the rules below About Brand Logo A Brand logo on left side In mobile ads, brand logo should be put on left side so that users can remember the brand information even only glance once at the ads.. B Multiple frame creation with brand logo in every frame 25
24 MB discovers APP ads are more effective if their creation follow the rules below About CreativeColor C D Using of bright colors Using at least one bright color, but not over two of them Using bright colors to deliver core information can gain attention About Text Content Clear and brief text content Make your smile sparkle 26
25 MB discovers APP ads are more effective if their creation follow the rules below About Ad Information E About text content Test content should not be over 50% of total ad space Don t use white background with black text for content creation, since it may confuse people from page content Information is hard to be recognized under black background. 27
26 People think APP ads are clean and engaging. In comparison, people under think mobile ads are more interactive and have better quality than PC; people under 24 believe APP ads are creative and clear. People under different ages like different aspects of APP ads, brands can focus on relevant mobile ads creation 1.0 Age Acceptant aspects of APP ads compared with PC ads clear Color is full Content is closely related to me Overall number is not large Creative Less than age 24 Age Overall page is clean High input lefel Age More interactive Source: Smartphone APP Advertising CLT Research / Sample size: Question: Which aspects of smartphone APP ads is more acceptant compared with PC ads? Better quality
27 Conclusion I: Smartphone has changed people s media habit and media contact way Time spent on smartphone in China is higher than in the US, and smartphone is a significant part contributing to multi-screen life Smartphone is fully time and space coverage close media, allowing multiple reaching to users; smartphone is used more under different time and locations to browse internet. 4.7 HOURS Time of internet browsing with smartphone is significantly fragmented: time using smartphone to browse internet is 4.7 hours (while using PC is 4.8 hours), but the frequency is higher and occasion is wider than other media People rely more on smartphones than PCs: People tend to use smartphone for social, entertainment and information searching. Time spent on smartphone has increased, 70% of users say they have used smartphone more than in the past 6 months; while traditional media are used less (57% users think they watch less TV; 55% users believe they read less magazines) 29 Daily time using smartphone to browse internet is 4.7 hours (while using PC is 4.8 hours), but the frequency is higher and occasion is wider than other media
28 Conclusion II: APP is an effective tool of marketing APP can help reach light TV viewers APP can bring people convenience, especially among age above 30 and high income people: mobile ads have good foundation of communication. Social/instant message APPs are more often used, indicating social properties of smartphone; it can change the old marketing strategies that ads are pushed to users; people use multiple screens reveals the value of interaction marketing for smartphones. Bring me more convenience Bring me more entertainment Can get various information Good foundation of communication 54% 21% 20% 5% Users use APP over twice everyday, giving mobile ads the foundation of multiple reaching their users Frequently used different APPs have interconnections, contributing more ways for precision marketing: brands can reach users under same category through other highly related APPs 30
29 Conclusion III: APP Ads are more noticed than PC Banner Ads by users APP ads have higher displaying value, and attract more attention than PC banner ads People under different ages like different aspects of APP ads, brands can focus on relevant APP ads creation: In comparison, people between think APP ads are more interactive and have better quality than PC; people between think they are clean and engaging; people under 24 believe APP ads are creative and clear. Visible Scan Smartphone APP Advertising 81% 70% MB discovers APP ads are more effective if their creation follow the rules below Brand logo on left side; Multiple frame creation with brand logo in every frame; thus users can remember the brand information more easily 31 For creative color, using at least one bright color, but not over two of them; using bright colors to deliver core information can get attention; don t use white background with black text for content creation, since it may confuse people from page content Text content should not be over 50% of total ad space Notice Fixation Duration 44% 0.89s
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