A Research Study of US Marketers Lisa Peterson, Neustar Vassilis Bakopoulos, MMA October 2013
Background + =? MMA & Neustar have jointly developed a study to understand marketers perceptions about mobile marketing with a specific focus on illustrating the role of data as a competitive advantage. 2
Research Design 1. Quantitative with the use of an electronic questionnaire (~10 minutes) 2. Online B2B panel (Research Now) 3. N=400 respondents Mix medium and large companies (67% / 33%) Mix of Senior and Middle management (48% / 52%) Mix of Digital Professionals and Other marketers (50% /50%) Mix of Market Research / Analytics and Marketing/advertising Roles (49%/51%) Mix of B2C marketer sectors (analysis by sector is limited due to sample size) 4. Fieldwork time: June - July 2013 3
Areas of Investigation Mobile Marketing: Role of Data in Mobile Marketer Perceptions Path to Mobile Readiness Tactics used & Impact Challenges & Opportunities Marketer Perceptions Investing in Data Attitudes of Mobile Data Pioneers Challenges & Opportunities 4
Insights 5
Insight 1: Marketers are convinced about the potential of mobile to benefit their business AND their personal career 6
Marketers agree that mobile can help them connect with consumers and benefit their career 44 43 36 41 41 43 40 39 A way to access new markets & consumer groups The best way to create relevant, personalized 1.1. experiences The closest you can get to your consumers A way to stay on the cutting edge & improve my personal career Somewhat agree Strongly agree Q3. How much do you agree with each of the following statements about Mobile Marketing? Mobile marketing is... (Top two boxes). 7
They are also convinced about mobile s ability to drive business results 35 33 33 39 The best way to build ROI and make your marketing budget work harder Somewhat agree The most fertile opportunity to create transformational business & marketing models Strongly agree Q3. How much do you agree with each of the following statements about Mobile Marketing? Mobile marketing is... (Top two boxes). 8
Insight 2: Marketers are embracing mobile 9
Marketers are embracing mobile 45% 40% 40% 35% 30% 34% 25% 20% 15% 20% 10% 5% 7% 0% Limited or no mobile experience/not a priority Test and Learn but no long term mobile strategy Strategic Vision and Some mobile experience Mobile is a key priority - well integrated with our marketing goals Q1. Which of the following sentences best describes how your company approaches MOBILE MARKETING? 10
Retail is leading the charge on mobile while CPG and other sectors are following 80% 70% 60% 50% 40% Retail CPG** Other ** Very small Base 30% 20% 10% 0% Limited or no mobile experience/not a priority Test and Learn but no long term mobile strategy Strategic Vision and Some mobile experience Mobile is a key priority - well integrated with our marketing goals Q1. Which of the following sentences best describes how your company approaches MOBILE MARKETING? 11
Fast growing, medium sized companies invest their future in mobile Mobile Leaders * (INDEX: Total =100) Fast Growing Companies (Believe that their results will be much better this year vs last) Medium Size Companies: (1000 5000 employees) 164 120 *Q1. Which of the following sentences best describes how your company approaches MOBILE MARKETING? Mobile has been one of our key priorities for a while and its well integrated with our overall marketing goals 12
Insight 3: The pathway to mobile starts by applying it in familiar ways, using mainstream tactics 13
A higher share of mobile $ s currently goes to upper funnel tactics Marketing Goal Share (%) of Mobile $ Enhance the equity of my brands Generate new leads Increase loyalty and retention Facilitate transactions Improve customer service 23 21 20 19 17 Q4. How are you currently allocating your MOBILE DOLLARS, across the following marketing goals? I am using mobile to. 14
Marketers with limited experience on mobile tend to mainly focus on upper funnel tactics. Marketers with longer mobile experience balance upper and lower funnel tactics. 35 30 28.75 25 22.05 20 17.38 15 10 5 Marketers with Limited mobile Experience/test and Learn Marketers with Mobile Vision and some experience Marketers who see mobile as a Key priority / well integrated 11.86 0 Enhance the equity of my brands Increase loyalty and retention Facilitate transactions Improve customer service Q4. How are you currently allocating your MOBILE DOLLARS, across the following marketing goals? I am using mobile to. 15
Apps are the most popular mobile tactics followed by social media, search, video, banners & messaging 0 10 20 30 40 50 60 70 Mobile apps Social media mobile advertising Mobile Video Paid search Mobile display Mobile messaging Mobile web landing page with promotions Push based alerts Mobile Audio 2d print codes on print Location targeted advertising - real time Location targeted advertising - macro Rich Media Mobile Coupons, passbook etc Text calls to action on print Mobile optimized site Q5. Which of the following MOBILE marketing TACTICS has your organization used? 16
Insight 4: As marketers start assessing the impact of their mobile tactics, they become convinced that mobile can give them a significant competitive advantage 17
Marketers are very satisfied with their mobile tactics especially those that use location targeted ads, coupons, and optimized sites Mobile apps 47 65 Social media mobile advertising 46 60 Mobile Video 51 57 Paid search 44 56 Mobile display 48 54 Mobile messaging Mobile Audio 43 53 50 52 Used Extremely impactful Push based alerts 43 53 Location targeted advertising - real time 42 61 Mobile Coupons, passbook etc 40 67 Rich Media 40 50 Mobile optimized site 38 62 Q5. Which of the following MOBILE marketing TACTICS has your 0 10 20 30 40 50 60 70 80 organization used? Q5a. How impactful were these tactics given the goals that you had? (5 point scale'). 18
Marketers expect mobile to give them a significant advantage, particularly in lower funnel goals & loyalty Q4a. Thinking about your marketing goals for next year, how much of a competitive advantage do you think that MOBILE MARKETING can give you in each of the following areas? 19
Insight 5: Despite tight budgets, marketers plan to invest more in mobile next year. Improving measurement and solving issues with scale and perceived complexity could further unleash mobile investment. 20
The majority of marketers plan to invest more in mobile next year 61% Consultants & agencies working on mobile strategy 68% Mobile Advertising $ 67% Asset creation for mobile 61% Data & analytics for mobile Q2a. What share of your TOTAL MOBILE SPEND currently goes to each of the following? Q2c. Thinking about the YEAR AHEAD, is your company planning to invest more, the same or less in each of the following areas, compared to this year? 21
Improving measurement, and solving issues with scale and perceived complexity could further unleash mobile investment Tight budgets overall / can't afford to decrease my spend in the other channels Difficulty to measure the impact of mobile and compare with other channels Difficulty to scale Overall complexity to plan and execute a mobile campaign Difficulty to understand the role of each mobile element (i.e. video, messaging etc) in the mix Inability to target accurately Difficulty to verify delivery of mobile advertising to target audience Not enough proof that it works and it can drive the business Not having access to the right data Privacy issues Finding the right talent in the market 0 5 10 15 20 25 30 35 40 45 50 47 46 43 41 38 38 37 35 34 26 15 Q6. Which of the following factors prevent you from investing more in mobile marketing? 22
Insight 6: Companies are convinced that DATA can be a game changer in mobile marketing 23
C- Level executives are driving an increased focus on data 0 10 20 30 40 50 60 We have STRONG SUPPORT from the executive team to make the right investments in data 49 We are more data driven than MOST other organizations 40 We use data to justify ALL media and marketing decisions 36 Q7. How much do you agree with the following statements? 24
Marketers see the potential of data as a significant advantage in mobile marketing. Significant and sustainable advantage 46 Significant but not sustainable advantage 19 Small but sustainable advantage 23 Small and not sustainable advantage 11 No competitive advantage 2 0 10 20 30 40 50 Q8a. How much of a competitive advantage do you think that data can give you in mobile marketing? 25
Insight 7: Marketers are quickly ramping up their data capabilities for mobile, but have some concerns about data quality and need more proof about the ROI 26
Companies are quickly ramping up their data capabilities for mobile Our capabilities to use data in mobile are MORE advanced than in other channels 36 PARITY with other channels 28 NOT as advanced as in other channels 37 0 5 10 15 20 25 30 35 40 Q8. Thinking about how you use data for MOBILE MARKETING specifically, which of the following is true? 27
Marketers who lead the mobile charge tend to invest more in data and analytics 30 28 26 24 22 20 18 16 14 12 Data and Analytics 10 Marketers with Limited mobile Experience/test and Learn Marketers with Mobile Vision and some experience Marketers who see mobile as a Key priority / well integrated Q4. How are you currently allocating your MOBILE DOLLARS, across the following marketing goals? I am using mobile to. 28
The industry needs to work on proving the value of data in mobile marketing and establish standards that ensure data quality 0 5 10 15 20 25 30 35 40 45 50 Not enough evidence about the value and impact of using data for mobile marketing Lack of established standards, metrics and guidelines Platform fragmentation 36 35 46 Not enough resources / lack of budget 34 Poor quality of data 33 Not enough support at an executive level to invest in data for mobile Not enough talent with the right skills Lack of cookies/persistent mobile unique identifiers 25 27 29 Data solutions are expensive / not affordable 16 Consumer Privacy concerns 12 Q13. Finally, which of the following areas is the most important challenge that the industry needs to overcome when it comes to USING DATA FOR MOBILE MARKETING? (Summary of top 3) 29
Insight 8: Marketers follow three stages in their path to unleash the power of data in mobile 30
There are three tiers of companies, depending on their focus on data for mobile Believe in mobile data Can mobile data give our company a competitive advantage? Significant No advantage /small TIER 2 (31%) Convinced & trying Convinced about data being a competitive advantage, but still working on the infrastructure TIER 3 (36%) TIER 1 (33%) Mobile data Pioneers Convinced about data being a competitive advantage and have created infrastructure Indifferent Not convinced about mobile data as a competitive advantage. Parity/less advanced than other channels More advanced than other channels Readiness to use mobile data Do we have the right capabilities to use mobile data successfully? 31
A strong focus on data correlates with a strong conviction about the potential of mobile 80% The most fertile opportunity to create transformational business & marketing models The best way to create relevant, personalized 1.1. experiences 70% 60% 50% 40% 30% 20% 10% Indifferent Convinced and trying Data pioneers 0% Q3. How much do you agree with each of the following statements about Mobile Marketing? Mobile marketing is... Top two boxes. 32
Companies with longer experience in mobile tend to have a stronger focus on data as well Indifferent Convinced and trying Data pioneers We have LIMITED OR NO EXPERIENCE in mobile No long term mobile strategy yet, but some 'TEST & LEARN' STRATEGIC VISION about mobile and some experience We have a clear strategy and mobile is WELL INTEGRATED with our marketing goals Q1. Which of the following sentences best describes how your company approaches MOBILE MARKETING? 33
Insight 9: Mobile Data Pioneers are already well ahead of the curve and plan to invest even more in order to reinforce their advantage in data 34
Mobile Data pioneers use many more mobile channels than other companies Mobile optimized site Mobile Coupons, passbook etc Rich Media Mobile apps 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Social media mobile advertising Mobile Video Paid search Location targeted advertising - real time Mobile display Mobile Audio Push based alerts Mobile messaging Data pioneers Convinced and Trying Indifferent Q5. Which of the following MOBILE marketing TACTICS has your organization used? 35
They are also more likely to value the importance of more data types and link them to get a unified view of the consumer Motion sensor (speed) We successfully LINK data from various sources Time Demographics: 80% 70% 60% 50% 40% 30% 20% 10% 0% Preferences: Shopping, products, media, etc. Cross platform targeting: multiple devices used Behavioral targeting: app/web/text/search etc Unique device/equipment identifier Location Real time: latitude/longitude Mobile Device Profile - Phone type, O/S Mobile Subscription services: Carrier, data plan, etc. Location/travel patterns/profile Data Pioneers Convinced and trying Indifferent Q11a. Which of the following types of data are more IMPORTANT to have access to in order to achieve the most impact from mobile in your future initiatives? Q9. Thinking about how your organization uses data for MOBILE MARKETING, how much do you agree with the following statements? Strongly Agree 36
Mobile Data Pioneers focus on leveraging data across the entire campaign as opposed to just the early planning stages 40% 35% 34% Data Pioneers Convinced and trying Indifferent 30% 25% 20% 15% 10% 5% 0% 30% 5% 27% 12% 13% 23% 19% 15% 17% 16% 16% Identify Develop Target Optimize Measure Identify the right customers for our mobile campaigns Develop the right creative and value proposition for our mobile campaigns Target our consumers with the right mobile creative assets 10% 8% Optimize our mobile creative in real time Accurately measure the level of engagement of our customers with our mobile campaigns 10% 8% Accurately measure the impact that our mobile campaigns have on brand KPIs and Sales Q10. Still thinking about how your organization uses data for MOBILE MARKETING, which of the following would you want to improve FIRST? 37
Mobile Data pioneers are more willing to invest in data to stay ahead of the curve 100% Next Year we will invest MORE in Data and Analytics for Mobile 90% 80% 70% 60% 50% 40% 30% 20% Indifferent Convinced and Trying Data Pioneers Q2c. Thinking about the YEAR AHEAD, is your company planning to invest more, the same or less in each of the following areas, compared to this year? Data and Analytics for Mobile 38
Summarizing: Mobile 1. 2. 3. 4. 5. Marketers are drastically moving to mobile, because they are convinced about its potential to benefit their business AND their personal career. The pathway to mobile starts by applying it in familiar ways, using mainstream tactics. As marketers start assessing the impact of their mobile tactics, they become more convinced that mobile can give them a significant competitive advantage Despite Tight budgets, marketers plan to invest more on mobile next year. Improving measurement and solving issues with scale & perceived complexity could further unleash marketers investment in mobile 39
Summarizing: Data 6. 7. 8. 9. Companies are convinced that DATA can be a game changer in mobile marketing. Marketers are quickly ramping up their data capabilities for mobile, but have some concerns about data quality and need to see more proof about the ROI. There are three tiers of mobile data readiness in the market. They have fundamentally different underlying perspectives on mobile. Mobile Data Pioneers are already well ahead of the curve, using more mobile tactics and data types. They plan to invest even more in order to reinforce their advantage in data. 40
Lisa Peterson Director, Market Development Mobile Solutions, Neustar www.neustar.biz Vassilis Bakopoulos Head of Industry Research Mobile Marketing Association vas@mmaglobal.com Lisa.Peterson@neustar.biz 41