Reciprocity, Rewards and Real Breakthrough EXPLORING THE ROLE OF VALUE IN MOBILE ADVERTISING

Transcription

1 Reciprocity, Rewards and Real Breakthrough EXPLORING THE ROLE OF VALUE IN MOBILE ADVERTISING

2 Background This deep dive on what drives loyalty and engagement in mobile advertising has its origins in Millward Brown s AdReaction study. AdReaction is a biannual study that probes audiences attitudes towards advertising. A key finding of the 2012 AdReaction was that tangible value could be key to an effective mobile presence. In the present work, SessionM, a mobile loyalty advertising network, and Millward Brown deep dive into value and explore when and how rewards can be effective in driving brand engagement. ADREACTION MOBILE + SESSION M value

3 AdReaction established that mobile audiences expect tangible value in exchange for their attention and engagement MOBILE VALUE SPECTRUM 44% A coupon would move me from confident to super thrilled. 18% 27% 27% 25% 15% LATEST PRODUCT NEWS FREE TOOLS e.g., shopping lists, reminders DEALS & COUPONS INTEREST- BASED INFO e.g., recipes, sports scores LOCATION- BASED INFO e.g., store locations, promotions FUN FEATURES e.g., branded game, song downloads Be mindful of the value exchange and make certain it is commensurate with your audience s expectations of value. 3

4 Marketers & publishers are constantly challenged to get audiences to engage. Yet while audiences are looking at mobile ads, 1 this does not always translate to engagement or affinity for the format. What can help turn this tide? 4 1 In a 2011 study by eyesquare and Google, they found that mobile Google AdWords had a reach of 85% but a dwell time of on 1.9s (.6 seconds less than the corresponding digital ad).

5 People love their mobile devices BEYOND ESSENTIAL MULTI- TALENTED LIFE CHANGING TRULY SMART FUN I take my smartphone everywhere. Life collapses if I forget it. My tablet allows me to see details, develop what I want, check or do work; I have more freedom. I can get information anytime on any device, no matter where I am it s there 24/7 super human. I always have an answer; my smartphone makes me feel like a hero when I solve problems. I feel like a wizard when I play and discover new things. 5

6 But that does not yet translate to love for mobile advertising How would you characterize your attitude towards each of the following formats of advertising? VERY/SOMEWHAT FAVORABLE AdReaction 2009 CHANGE AdReaction 2012 Opt-In 27% +1 28% Online Display 24% -2 22% Online Video 22% -6 16% Ad-Supported Games 18% -2 16% Online Search 21% -5 16% Social Media 21% -8 13% Mobile 7% +2 9% Non-Opt-In s 7% +2 9% 6 Sample: AdReaction: General Population Online Audience

7 Can the Rule of Reciprocity change this? THE RULE OF RECIPROCITY REQUIRES THAT ONE PERSON TRY TO REPAY what the other person HAS PROVIDED - ROBERT CIALDINI 7

8 We see reciprocity play out at a primal level.

9 Kids seem to intuitively know the rewards of helping one another.

10 Is it possible for brands to apply reciprocity in mobile to break through and build lasting brand love?

11 We tested this hypothesis We explored consumers relationship with mobile advertising to better understand if and how reward-based mobile advertising impacts brand engagement and brand loyalty with consumers. QUANTITATIVE Mobile Advertising and Value Exchange QUALITATIVE Interplay between Mobile Advertising and Value Exchange Who: What: How: Mobile Population n=500; Session M Audience n=500 Attitudes towards mobile advertising and value exchange systems Online or mobile survey Who: What: How: SessionM Users Explore the relationship between consumers & reward-based mobile advertising 25 respondents 1 week of blogging on IdeaBlog followed by minute individual, in-depth interviews via webcam-enabled uviews 11

12 Executive Summary The Value Exchange Equation is the activation of the rule of reciprocity in mobile. It can expand an audience s brand consideration set and help create an enduring relationship with the brand. Consumers presently reward brands that deliver on that value exchange with their loyalty. Reward-based mobile advertising is an answer to the value exchange equation. It opens the door of consumer receptivity and brand engagement. Reward-based mobile advertising succeeds when the advertising execution is timely, chosen & relevant and the reward is predictable, tangible & chosen. Advertisers need to be mindful of the value exchange they offer through their mobile marketing efforts and make certain it is commensurate with their audience s expectations. 12

13 The Mechanics OF RECIPROCITY IN MOBILE

14 Consumers have high expectations for mobile 1 Mobile Will be Competent 2 Mobile Will Know Who I Am and Target Accordingly 3 Mobile Will Offer an Exchange of Tangible Value And audiences are receptive to mobile marketing when it s done right. 14

15 What exactly is tangible value in a mobile ad experience? IT IS WORTH THE TIME INVESTED How much time does it take and is it worth it? IT IS USEFUL TO ME OR MY FAMILY It is something I would use or be interested in? IT IS ENGAGING Is it amusing or informative? Would I watch it again? For me to click, ads need to have an incentive. It is all about the value of my time. When I can make use of the product, it makes a big difference. I love ads with games or watching videos. If it makes laugh, that is a bonus. 15

16 Tangible Value, like Rewards, can amplify impact and change the long-term relationship with a brand.

17 Rewarded audiences have increased interactions with brands Which of the following actions have you taken as a result of seeing an in-app ad? 34% 36% +19* 28% +16* 26% 15% 17% +11* 12% +9* 21% 20% 18% +8* 14% 19% +5* Clicked/interacted with ad Searched for brand online Looked for brand in a store Visited brand's website Considered purchasing brand Visited brand's social page Have Not Participated in Reward-Based Advertising SessionM Users 17 * Statistically significant difference between control and exposed group at a 90% confidence level; ^Never Participated in Reward-Based Advertising n=384; Session M users n=500.

18 Campaigns tested on SessionM, a reward-based platform, had significant increases in all measures of brand effectiveness SessionM Campaigns Tested 72% 77% 59% +13* +63* 63% 63% +21* +26* 42% 37% 31% +22* 53% 14% Aided Brand Awareness Mobile Ad Awareness Message Association Brand Favorability Purchase Intent Control Exposed 18 * Statistically significant difference between control and exposed group at a 90% confidence level; ^N=5 campaigns

19 SessionM outperforms Dynamic Logic mobile norms on all measures of brand effectiveness DL Mobile Norms v. SessionM Percentage Change 63% +53* 26% 21% 22% +8* 13% 10% 10% +16* +18* +19* 5% 3% 3% Aided Brand Awareness Mobile Ad Awareness Message Association Brand Favorability Purchase Intent DL Norms SessionM 19 * Statistically significant difference between control and exposed group at a 90% confidence level;

20 Rewards in Mobile THE FACETS OF REWARD-BASED MOBILE ADVERTISING

21 Is it worth my time? As the mobile environment has gotten more crowded and complex, consumers understand that their TIME has value making it tougher for mobile ads to cut through the clutter and get noticed. Banking Games Travel Social Networking Music Utility News 21

22 The VALUE EXCHANGE equation helps consumers constantly assess the worth of every mobile advertising interaction VALUE EXCHANGE EQUATION (time) (useful) + engaging = value Perceived usefulness of an outcome multiplies the amount of time that a consumer is willing to invest to engage with brand The engagement factor adds to the consumer s willingness to spend time with the brand and increases the chances that they engage with the advertising again The usefulness of a reward has a universal value that breaks through and opens the door to consumer receptivity and brand engagement. 22

23 Reward-based mobile advertising has created a currency that acknowledges the value of consumers time & attention Tangible rewards are clear way to provide value within the mobile ad experience and open the door to meaningful consumer engagement. Rewards change the context and open my mind to what they have to say. If there is a reward attached, I ll sit through to see what it is. Rewards put the exposure of the brand in a positive light instead of something forced. 23

24 Advertiser success in reward-based mobile advertising hinges on the success of two finely-tuned elements Optioned Predictable Timely Relevant + Chosen Tangible Execution Reward 24

25 Execution Ad TIMING affects audiences favorability towards it Does your favorability towards a mobile ad depend on how the ad was presented to you? 25% Yes No I just click out of ads that pop up when I am doing something else or when they don t make sense for me. If an advertiser gives me the option to choose, I am more willing to engage. 75% It doesn t pop-in and disrupt what I am doing. It is at a natural entry point. And, it seems like a better message. Adhering to natural breaks is the difference between being perceived as a friend or foe. 25

26 Execution Consumers want the OPTION to choose The act of choosing to engage activates the audience s attention & shifts the context of the brand exposure from forced to receptive. I don t want advertising to trick me. I want to be interested in the offer and compelled to click. Giving you the option to choose to engage with the ad is a huge thing. Choice frees me up to have an open mind about what I am seeing. In AdReaction 1, we established the absence of choice can damage a user s impression of the brand AdReaction: 45% all respondents say providing no way to opt-out can damage opinion of brand

27 Execution RELEVANCE draws the audience into the ad experience Demonstrates that an advertiser understands what is important to their audience and won t waste their time. I expect advertisers to know what I am doing and understand who I am. It makes me feel different about how I feel about the brand. It is like there is a certain level of respect for the customer. It is a show of respect when I am shown an ad for something I might be interested in. 27

28 Reward CHOICE of reward is key to consumer receptivity FEEDBACK QUESTION Would it be important to you that you could choose the type of reward you can receive when on your mobile device? No,it's not important 8% Yes, it's important 92% Member Responses I can watch for points and use them for something I can actually use. If it is for a product I know, a coupon is okay. But, if I did not know about it, then a coupon doesn t mean anything to me. I want to be able to choose. 28

29 Reward Audiences want to be able to PREDICT the value FEEDBACK QUESTION After viewing or interacting with an ad, which is your preference for receiving a reward or incentive (i.e. coupon, etc.)? I have no opinion on this 7% Neither favorable 3% I would view either favorably 10% Knowing for certain I would receive it 68% Receiving it as a surprise 12% Member Responses These ads give me something back whether I like the ad or not. If there is a reward, I will play. They (advertisers) appreciate if we look at the ad; but, if not, you still get the idea of what they are trying to say. It is a win-win. 29

30 Reward Audiences most desire TANGIBLE and flexible rewards Preferred Rewards 1. Gift cards 2. Coupon or discount of your choice 3. Coupon or discount selected for you 4. Tickets for Events 5. Points towards contest entries 6. Donations to Charity 7. Virtual Currency 8. Access to ad free environment 9. Access to free videos or songs 10. Access to free games 11. Access to exclusive content 30 *Most to least preferred

31 Guidelines for Engagement IN MOBILE ADVERTISING

32 Casting the right role for success in mobile

33 #1 Put people first Avoid tricks or gimmicks that leave the audience feeling empty and betrayed. Recognize the relationship and make it worth their while. NO VALUE VALUE THIEF They are stealing my attention and taking my time. My time is valuable. ADVOCATE They are representing me and my interests. Giving me something for free but then asking for my is not a reward. That is a trick. 33 Images selected by respondents in qualitative

34 #2 Show respect: Don t be a bully. Be a friend. Audiences tune-out or avoid mobile advertising that forces an experience or demands their attention. NO VALUE VALUE BULLY They are forcing themselves on me and trying too hard to get my attention. I feel violated. COMPANION They are suggesting things: trying to make me happier; enrich my life; and get me interested in things. Ads that talk about the things I enjoy and that I like to look at again are the ones I want to have around. When they don t do this, I want to get them off my screen as soon as possible. 34 Images selected by respondents in qualitative

35 #3 Be helpful Consider what might be relevant or interesting to your audience and focus your attention on giving instead of taking. NO VALUE VALUE VAMPIRE SERVANT These ads are a drain on my time. They don t make any sense for me. If it is something they are helping me with, they are serving me. I look for the advertisers that are going to give me something more. That could be information or a new product I might like. 35 Images selected by respondents in qualitative

36 The Marketer s Playbook FOR SUCCESS IN REWARD-BASED MOBILE ADVERTISING

37 Execution Best Practices do: Offer choice in ad exposure. When possible, let audiences select when they want to watch your ad. Consider timing and placement. Wait for a natural break in browsing to serve the ad. Serve audiences personally relevant ads. Pair a reward with creative. Rewards are boosters that can break through the clutter. don t: Interrupt. Ads shouldn t distract or derail users from their mobile goal. Bombard users with ads. Audiences are aware of the value of their time. Serve a random ad. An irrelevant ad is a wasted impression. Use intrusive formats unless context is highly relevant. 37

38 Reward Best Practices do: Provide tangible rewards. Gift cards and coupons are best. Offer consistency. Audiences like to know when they are getting a reward. Offer users a reward that is flexible and has an element of choice. don t: Consider a reward to be something that is currently free. Audiences don t consider access to content or an ad free environment be a desirable reward. Expect a reward to compensate for poor creative or low brand equity. Vary reward schedule, users appreciate predictability. Be a bully and dictate the reward. Audiences want to select their reward. 38

39 Thank You QUESTIONS ABOUT AD EFFECTIVENESS AND AUDIENCE MEASUREMENT: QUESTIONS ABOUT REWARDED MOBILE ADVERTSING: