Coupon Clipping Goes Digital
Volume 3, Issue 11 March 28, 2009 Contacts: Monique Dutour Operations Manager/Sales [email protected] direct: 604.641.1309 cell: 604.219.9442 William Urrea Sales/Bus Dev [email protected] cell: 604.992.5555 Jennifer Frith Sales Consultant [email protected] cell: 604.720.4452 Laura Valta Executive Assistant [email protected] direct: 905.530.2405 cell: 647.229.9801 Rod Milne Controller [email protected] direct: 905.530.2388 Alex Romanov CEO [email protected] direct: 905.530.2481 cell: 416.407.1035 cell: 604.787.7924
Coupon Clipping Goes Digital Shoppers in the digital future will not only find themselves receiving coupons via their mobile devices but also interacting with in‐store technology to discover heretofore overlooked bargains sitting on the shelves. A recent report from the Nielsen Co. should hearten the companies working to connect the dots between digital signage and mobile devices. The report, titled “Promotions Get Personal: the Coupon Constituency of Today and Tomorrow,” explores the opportunities for using cou‐ pons as a marketing tactic and concludes that the day has come for technophiles to wield tre‐ mendous influence on the future of promotions. Couponomics “Overall, coupon‐using consumers comprised 86 percent of households and drove 89 percent of all‐outlet dollar sales,” says Todd Hale, senior vice president, Consumer & Shopper Insights, for New York‐based Nielsen and author of the report, which appeared in the December 2008 edition of the “Nielsen Consumer Insight” newsletter. Lest anyone wonder about the impact of promotions alone as a marketing tactic, Hale points out that, according to Nielsen, promoted dollar sales for the year ending July 2008 accounted for $129 billion of sales across all categories in food, drug and mass merchandise outlets — excluding coupons! Despite the extensive use of coupons, not all coupon users are equal, Hale reports, nor is it particularly easy for households to both receive and redeem coupons. As a result, manufacturers and retailers are bypassing traditional direct mail efforts and delivering coupon offers to shoppers via e‐mail or, in some cases, mobile phone. Nonetheless, Hale says, “These methods still require too much action on the part of consumers. Current and future technology could be better leveraged to simplify the process and grow coupon usage.” Future Tech According to Hale, Nielsen experts analyzed current promotional activity and then made some predictions regarding the featured roles of the Internet, credit cards, frequent shopper programs, mobile phones and in‐store options in the promotional world of tomorrow. The predictions not only support many of the advancements already being applied in the marketplace but also encour‐ age further development along the lines of technological convergence between mobile devices and digital signage. Moreover, there are already deployments of coupon‐issuing kiosks utilizing hologram technology, such as Provision Interactive Technologies Inc.’s 3DEO Media Centers, and digital signage incorporating 2D bar code technology, another promising promotion approach. Currently, Saazé is using Snappr.net’s 2D bar code technology that allows signage viewers access to digital business cards via the mobile Web. “The same process can be used to retrieve coupons in different ways from the mobile Web,” says Philip Steh‐ lik, CEO of San Francisco‐based BayBrain Inc., which operates Snappr.net. Here, according to Hale, is what lies ahead for today’s coupon shopper: • Reduced reliance on paper‐based feature and coupon circulation. A race for dominance is taking place with computer‐ based Internet applications, mobile phones, credit cards, frequent shopper cards and in‐store applications. Global posi‐ tioning systems (GPS), radio frequency identity tags (RFID), eye movement tracking cameras and similar devices will enable location‐ and interest‐specific promotional offers to be delivered at actionable sites. • Electronic or store entrance coupon delivery. Instead of tagging consumers as they leave the store post‐purchase, next generation systems will deliver coupons via mobile phones, via Internet or via in‐store devices when shoppers enter the store or are in the mood and in the aisle, ready to buy. • Smart appliances provide in‐store shopping assistance. What’s for dinner tonight? Visit the produce or meat depart‐ ment and allow your personal chef avatar to generate some electronic menu suggestions and automatically create a shopping list with aisle and item locator cues. • Stores offering engagement and entertainment opportunities. Look for personal shopper holograms to guide consum‐ ers through the store or shelf talkers activated by your cell phone to offer up special discounts. • One‐to‐one personalized promotions. Stores will become increasingly interactive and consumer‐specific, marrying data from multiple sources to deliver an involving shopping experience that reflects individual interests and buying prefer‐ ences. Social networks based on shopping proclivities will be formed to build demand and drive sales. • Integrated strategic promotional planning. Shopper marketing comes of age, dominating the retail landscape, displac‐ ing product‐centric marketing planning. Technology enables a holistic planning approach that puts the consumer front and center while benefitting the brand, the consumer, the shopper and the retailer. • The total impact of this technology, Hale concludes, will be a transformation of coupon clipping as we know it into an interactive shopping experience. “The bargain hunters of today will become the treasure hunters of tomorrow,” he says, “discovering all the once‐buried items store‐side that will be presented to them as they stroll the aisles.”
Volume 3, Issue 11
March 28, 2009
CASE STUDY: Pizzeria Takes High‐Tech Approach to Customer Loyalty and Coupon Redemptions
Sundrop Systems’ LoyalTXT turn‐key loyalty program, enabled by a combination of the company’s Touchcast interactive touch screen and text messaging, provided Hungry Howie’s a cost‐effective way to reach loyal cus‐ tomers and track their visits.
An SMS text messaging‐based loyalty program, combined with the use of an interac‐ tive touch screen, equipped this Hungry Howie’s franchise with a cost‐effective way to reach loyal customers and track their visits. Client: Hungry Howie’s Pizza Inc. Industry: Restaurant Project: Installation of interactive digital signage with text messaging to build cus‐ tomer loyalty Provider: Sundrop Systems Inc. PROFILES Hungry Howie’s Pizza Inc., Madison Heights, Mich., was founded by Jim Hearn in 1973 when he converted a 1,000‐square‐foot hamburger shop in Taylor, Mich., into a successful carry‐out and delivery pizzeria. Steve Jackson, who delivered pizzas for Hearn, became his partner, and in 1982, the pair made a decision to franchise their operation. In January 1983, they awarded their first Hungry Howie’s franchise. Cur‐ rently, Hungry Howie’s operates more than 575 locations in 24 states. The chain has set itself apart from other pizzerias by offering a variety of flavored crust pizzas. The chain also serves calzone style subs. Founded by Travis Priest in January 2007, Sundrop Systems Inc. is a Mount Dora, Fla.‐based digital media company that provides digital signage and mobile market‐ ing services, both independently and as integrated solution. Showcast and Touch‐ cast are the company’s digital signage solutions, and myTXTRA is the company’s SMS text messaging and mobile marketing platform that offers turn‐key mobile marketing solutions for small business and custom‐designed mobile marketing cam‐ paigns for brands and large organizations.
CHALLENGES A Hungry Howie’s Pizza & Subs franchise in Clermont, Fla., wanted to implement a loyalty program to not only track customer visits but also reach those loyal customers with special offers anytime. SOLUTIONS To realize this goal, the franchise implemented Sundrop Systems’ LoyalTXT — an SMS text messaging‐based loyalty program. This turn‐key program can be set up in a mat‐ ter of minutes and includes complete integration on Windows‐based POS systems. Upon initial registration, customers receive a welcome message and request for their email address. Once submitted, customers can be prompted to complete registration online via a link sent to their email inbox. On subsequent visits, customers receive an alert showing their status in the program. Businesses offering LoyalTXT to their customers can then reach loyal customers im‐ mediately via SMS text message or through traditional email and direct mail channels. Implementation of the system went through three phases: • Sundrop installed a Sundrop 17‐inch Touchcast display on the Hungry Howie’s counter in front of the POS system. While customers were waiting for their order to be fulfilled, they were prompted by on‐screen advertising to register to earn one free large, one‐topping pizza by entering their mobile number on the display. Customers who did so were immediately greeted with a text message welcoming them to Hungry Howie’s rewards program and asking them to confirm their regis‐ tration by replying with their email address. • Hungry Howie’s staff in the drive‐through now prompt customers to join the program during the order process. The staff member enters the customer’s mobile number into the LoyalTXT system and a text message alert is immediately sent to the customer. • This last phase will incorporate staff prompting of customers who call in their pizza orders. RESULTS After the implementation of phase one, an average of eight new customers per day self‐registered for the loyalty program without staff prompting or solicitation by enter‐ ing their mobile number on the Touchcast display. After phase two, daily new sign‐ups tripled with the drive‐through process. In addition, Hungry Howie’s first text blast to its loyalty program members was a record‐breaking success. During Phase 1 An offer for one large, three‐topping pizza for $10 was sent to loyal customers via SMS text message at 4:30 p.m. on a Friday afternoon. The impact: • By the close of business that evening, POS tracking showed that fully 12 percent of the recipients had already redeemed the offer. • By the close of business the next evening, about 29 hours later, an additional 13 percent of the recipients had redeemed the offer. • All told, through the five days the offer was valid, Hungry Howie’s enjoyed a 32 percent redemption rate. With Sundrop’s LoyalTXT turn‐key loyalty program, Hungry Howie’s now has a cost‐effective way to track customer visits through self‐registration and POS entry by staff combined with a real‐time advertising platform that allows them to reach their loyal customers to elicit immediate response. With automated reward fulfillment options available via email and direct mail to participants, few operational changes had to be made to support the new loyalty program.
Page 2
www.isignmedia.com
Volume 3, Issue 11
March 28, 2009
Mobile Advertising: The numbers are starting to add….and add up! by Amielle Lake , Tech Vibes Sound bite: Mobile advertising is going to be a huge market. The "stats" and common sense converge… It’s practically old news to say that Gartner believes the mobile advertising market is worth some $2.7 billion today and growing to $12 billion by 2012. For comparison, studies generated by the Kelsey Group say the online advertising industry is estimated to be about $30‐40 billion today, and growing to some $140+ billion in the same period. As with much statistical research, not all of it is completely accurate – if any at all. Yet, it is always useful for corporate navigation and promotional strategy. Being a staunch believer in the future of the mobile advertising industry, I do see merit in Gartner’s estimates. There is considerable data to support this trend. Already, the mobile market is three times that of the fixed Internet one, yet online ad spending is nearly 20 times the size. Clearly, the “mob ad “ world is in a nascent stage, with space for massive growth. This is especially true when you consider that online advertising, on its own, accounts for a mere 7% of total global ad spend. Looking at sheer numbers of subscribers isn’t a useful enough indicator. What matters is if consumers notice mobile ads. Studies show that yes, they do…they really do. According to Dynamic Logic, mobile advertising increases consumer awareness by close to 24% and augments intent to purchase by nearly 5%. Not bad. Studies say agen‐ cies big and small are rushing to offer clients mobile‐based promoting tools. Being a principal of a newly founded mobile ad company, we are witnessing this first hand. Since we have already admitted that stats are usually wrong, let’s examine the situation empirically. Mobile phones are typically always on and with their owner. We text, we call, we surf – we do everything on our trusty device. We leave our laptop at home. Our overzealous usage is even playing a hand at our evolutionary path. Our thumbs will become more angular so that texting can be more efficient. There is only so much content (advertisements) that can be served up on a phone. Therefore, advertising realty is limited and we become a captive audience to unique marketers’ messages. Given all this, it's safe to say that if marketers really want to reach consumers, they will inevitably need to establish a savvy way to speak to them on their mobiles. Don’t believe me? Ask yourself what would be more inconvenient: no phone or no laptop?
FIRST LOOK AT MOBILE PERFORMANCE Early Research Shows Mobile Advertising Campaigns Increase Brand Metrics According to eMarketer, this year's mobile advertising spend is estimated to be nearly 5 billion globally, to triple by the year 2011. Yet, only 13% of all mobile advertising is intended for branding compared to 87% for direct response. Are marketers missing out? Firstly by not investing in mobile advertising at all, and secondly, by using it primarily as a DR vehicle? Dynamic Logic has completed over 30 AdIndex® for Mobile research studies in the US and the UK to measure the branding effects of mobile advertising campaigns across a number of industry sectors, including alcohol, automotive, consumer electronics, CPG, entertainment, financial services, retail, telecomm, and travel. The campaigns include display ads on mobile WAP sites and downloadable mobile applications. Comparing people exposed to the mobile campaigns to those not exposed, the initial per‐ formance averages from 21 studies suggest that mobile advertising can be an effective me‐ dium for raising brand metrics throughout the purchase funnel. An average increase of +23.9 percentage points in Mobile Ad Awareness shows that these campaigns generally cut through and grab users' attention. Source: Dynamic Logic's AdIndex for Mobile; Early Averages as of July 2008, N=21 campaigns, n=25,050 respondents Average increases in Brand Favorability and Purchase Intent of +5.4 and +4.7 percentage points, respectively, support the ability of mobile advertising to change consumers' attitudes Delta (Δ) represents percent of people impacted by advert exposure; calculated Delta (Δ) = Exposed‐Control * Please note small sample size towards a brand and to drive intent to purchase. Part of the reason for these positive increases may be a result of the newness of the medium. People may be intrigued and pay more attention to the advertising on their mobile phone since it is presented on a smaller screen and is located in a less cluttered environment compared to the Internet. More research and campaign analysis is needed to help marketers understand what will continue to work best on mobile devices. Dynamic Logic's latest AdReaction Study shows that only 26% of people in the U.S. have used their mobile phone or wireless device to connect to the Internet. While reach may still be small, this will most certainly grow as providers offer more competitive packages for consumers to use their mobile phone to access the Web. Certain brands may be able to reach a more targeted audience of consumers via mobile branding campaigns on WAP sites. Reaching a smaller, but more engaged and relevant audience may provide a worthwhile return on investment. Mobile advertising is not going away, and now may be the best time to test out the waters before consumers force brands to jump in head first. While these mobile averages are only based on a small number of campaigns and should be used for directional purposes, it is important to begin comparing mobile cam‐ paigns' effectiveness to an industry average. As we conduct more studies, we will continue to build these initial averages into a normative database that can be used for a more granular look into the mobile data in the same way our MarketNorms® database is used for online performance benchmarking and planning.
Page 3
www.isignmedia.com
Coupon Clipping Goes Digital Shoppers in the digital future will not only find themselves receiving coupons via their mobile devices but also interacting with in‐store technology to discover heretofore overlooked bargains sitting on the shelves. A recent report from the Nielsen Co. should hearten the companies working to connect the dots between digital signage and mobile devices. The report, titled “Promotions Get Personal: the Coupon Constituency of Today and Tomorrow,” explores the opportunities for using cou‐ pons as a marketing tactic and concludes that the day has come for technophiles to wield tre‐ mendous influence on the future of promotions. Couponomics “Overall, coupon‐using consumers comprised 86 percent of households and drove 89 percent of all‐outlet dollar sales,” says Todd Hale, senior vice president, Consumer & Shopper Insights, for New York‐based Nielsen and author of the report, which appeared in the December 2008 edition of the “Nielsen Consumer Insight” newsletter. Lest anyone wonder about the impact of promotions alone as a marketing tactic, Hale points out that, according to Nielsen, promoted dollar sales for the year ending July 2008 accounted for $129 billion of sales across all categories in food, drug and mass merchandise outlets — excluding coupons! Despite the extensive use of coupons, not all coupon users are equal, Hale reports, nor is it particularly easy for households to both receive and redeem coupons. As a result, manufacturers and retailers are bypassing traditional direct mail efforts and delivering coupon offers to shoppers via e‐mail or, in some cases, mobile phone. Nonetheless, Hale says, “These methods still require too much action on the part of consumers. Current and future technology could be better leveraged to simplify the process and grow coupon usage.” Future Tech According to Hale, Nielsen experts analyzed current promotional activity and then made some predictions regarding the featured roles of the Internet, credit cards, frequent shopper programs, mobile phones and in‐store options in the promotional world of tomorrow. The predictions not only support many of the advancements already being applied in the marketplace but also encour‐ age further development along the lines of technological convergence between mobile devices and digital signage. Moreover, there are already deployments of coupon‐issuing kiosks utilizing hologram technology, such as Provision Interactive Technologies Inc.’s 3DEO Media Centers, and digital signage incorporating 2D bar code technology, another promising promotion approach. Currently, Saazé is using Snappr.net’s 2D bar code technology that allows signage viewers access to digital business cards via the mobile Web. “The same process can be used to retrieve coupons in different ways from the mobile Web,” says Philip Steh‐ lik, CEO of San Francisco‐based BayBrain Inc., which operates Snappr.net. Here, according to Hale, is what lies ahead for today’s coupon shopper: • Reduced reliance on paper‐based feature and coupon circulation. A race for dominance is taking place with computer‐ based Internet applications, mobile phones, credit cards, frequent shopper cards and in‐store applications. Global posi‐ tioning systems (GPS), radio frequency identity tags (RFID), eye movement tracking cameras and similar devices will enable location‐ and interest‐specific promotional offers to be delivered at actionable sites. • Electronic or store entrance coupon delivery. Instead of tagging consumers as they leave the store post‐purchase, next generation systems will deliver coupons via mobile phones, via Internet or via in‐store devices when shoppers enter the store or are in the mood and in the aisle, ready to buy. • Smart appliances provide in‐store shopping assistance. What’s for dinner tonight? Visit the produce or meat depart‐ ment and allow your personal chef avatar to generate some electronic menu suggestions and automatically create a shopping list with aisle and item locator cues. • Stores offering engagement and entertainment opportunities. Look for personal shopper holograms to guide consum‐ ers through the store or shelf talkers activated by your cell phone to offer up special discounts. • One‐to‐one personalized promotions. Stores will become increasingly interactive and consumer‐specific, marrying data from multiple sources to deliver an involving shopping experience that reflects individual interests and buying prefer‐ ences. Social networks based on shopping proclivities will be formed to build demand and drive sales. • Integrated strategic promotional planning. Shopper marketing comes of age, dominating the retail landscape, displac‐ ing product‐centric marketing planning. Technology enables a holistic planning approach that puts the consumer front and center while benefitting the brand, the consumer, the shopper and the retailer. • The total impact of this technology, Hale concludes, will be a transformation of coupon clipping as we know it into an interactive shopping experience. “The bargain hunters of today will become the treasure hunters of tomorrow,” he says, “discovering all the once‐buried items store‐side that will be presented to them as they stroll the aisles.”
Volume 3, Issue 11
March 28, 2009
CASE STUDY: Pizzeria Takes High‐Tech Approach to Customer Loyalty and Coupon Redemptions
Sundrop Systems’ LoyalTXT turn‐key loyalty program, enabled by a combination of the company’s Touchcast interactive touch screen and text messaging, provided Hungry Howie’s a cost‐effective way to reach loyal cus‐ tomers and track their visits.
An SMS text messaging‐based loyalty program, combined with the use of an interac‐ tive touch screen, equipped this Hungry Howie’s franchise with a cost‐effective way to reach loyal customers and track their visits. Client: Hungry Howie’s Pizza Inc. Industry: Restaurant Project: Installation of interactive digital signage with text messaging to build cus‐ tomer loyalty Provider: Sundrop Systems Inc. PROFILES Hungry Howie’s Pizza Inc., Madison Heights, Mich., was founded by Jim Hearn in 1973 when he converted a 1,000‐square‐foot hamburger shop in Taylor, Mich., into a successful carry‐out and delivery pizzeria. Steve Jackson, who delivered pizzas for Hearn, became his partner, and in 1982, the pair made a decision to franchise their operation. In January 1983, they awarded their first Hungry Howie’s franchise. Cur‐ rently, Hungry Howie’s operates more than 575 locations in 24 states. The chain has set itself apart from other pizzerias by offering a variety of flavored crust pizzas. The chain also serves calzone style subs. Founded by Travis Priest in January 2007, Sundrop Systems Inc. is a Mount Dora, Fla.‐based digital media company that provides digital signage and mobile market‐ ing services, both independently and as integrated solution. Showcast and Touch‐ cast are the company’s digital signage solutions, and myTXTRA is the company’s SMS text messaging and mobile marketing platform that offers turn‐key mobile marketing solutions for small business and custom‐designed mobile marketing cam‐ paigns for brands and large organizations.
CHALLENGES A Hungry Howie’s Pizza & Subs franchise in Clermont, Fla., wanted to implement a loyalty program to not only track customer visits but also reach those loyal customers with special offers anytime. SOLUTIONS To realize this goal, the franchise implemented Sundrop Systems’ LoyalTXT — an SMS text messaging‐based loyalty program. This turn‐key program can be set up in a mat‐ ter of minutes and includes complete integration on Windows‐based POS systems. Upon initial registration, customers receive a welcome message and request for their email address. Once submitted, customers can be prompted to complete registration online via a link sent to their email inbox. On subsequent visits, customers receive an alert showing their status in the program. Businesses offering LoyalTXT to their customers can then reach loyal customers im‐ mediately via SMS text message or through traditional email and direct mail channels. Implementation of the system went through three phases: • Sundrop installed a Sundrop 17‐inch Touchcast display on the Hungry Howie’s counter in front of the POS system. While customers were waiting for their order to be fulfilled, they were prompted by on‐screen advertising to register to earn one free large, one‐topping pizza by entering their mobile number on the display. Customers who did so were immediately greeted with a text message welcoming them to Hungry Howie’s rewards program and asking them to confirm their regis‐ tration by replying with their email address. • Hungry Howie’s staff in the drive‐through now prompt customers to join the program during the order process. The staff member enters the customer’s mobile number into the LoyalTXT system and a text message alert is immediately sent to the customer. • This last phase will incorporate staff prompting of customers who call in their pizza orders. RESULTS After the implementation of phase one, an average of eight new customers per day self‐registered for the loyalty program without staff prompting or solicitation by enter‐ ing their mobile number on the Touchcast display. After phase two, daily new sign‐ups tripled with the drive‐through process. In addition, Hungry Howie’s first text blast to its loyalty program members was a record‐breaking success. During Phase 1 An offer for one large, three‐topping pizza for $10 was sent to loyal customers via SMS text message at 4:30 p.m. on a Friday afternoon. The impact: • By the close of business that evening, POS tracking showed that fully 12 percent of the recipients had already redeemed the offer. • By the close of business the next evening, about 29 hours later, an additional 13 percent of the recipients had redeemed the offer. • All told, through the five days the offer was valid, Hungry Howie’s enjoyed a 32 percent redemption rate. With Sundrop’s LoyalTXT turn‐key loyalty program, Hungry Howie’s now has a cost‐effective way to track customer visits through self‐registration and POS entry by staff combined with a real‐time advertising platform that allows them to reach their loyal customers to elicit immediate response. With automated reward fulfillment options available via email and direct mail to participants, few operational changes had to be made to support the new loyalty program.
Page 2
www.isignmedia.com
Volume 3, Issue 11
March 28, 2009
Mobile Advertising: The numbers are starting to add….and add up! by Amielle Lake , Tech Vibes Sound bite: Mobile advertising is going to be a huge market. The "stats" and common sense converge… It’s practically old news to say that Gartner believes the mobile advertising market is worth some $2.7 billion today and growing to $12 billion by 2012. For comparison, studies generated by the Kelsey Group say the online advertising industry is estimated to be about $30‐40 billion today, and growing to some $140+ billion in the same period. As with much statistical research, not all of it is completely accurate – if any at all. Yet, it is always useful for corporate navigation and promotional strategy. Being a staunch believer in the future of the mobile advertising industry, I do see merit in Gartner’s estimates. There is considerable data to support this trend. Already, the mobile market is three times that of the fixed Internet one, yet online ad spending is nearly 20 times the size. Clearly, the “mob ad “ world is in a nascent stage, with space for massive growth. This is especially true when you consider that online advertising, on its own, accounts for a mere 7% of total global ad spend. Looking at sheer numbers of subscribers isn’t a useful enough indicator. What matters is if consumers notice mobile ads. Studies show that yes, they do…they really do. According to Dynamic Logic, mobile advertising increases consumer awareness by close to 24% and augments intent to purchase by nearly 5%. Not bad. Studies say agen‐ cies big and small are rushing to offer clients mobile‐based promoting tools. Being a principal of a newly founded mobile ad company, we are witnessing this first hand. Since we have already admitted that stats are usually wrong, let’s examine the situation empirically. Mobile phones are typically always on and with their owner. We text, we call, we surf – we do everything on our trusty device. We leave our laptop at home. Our overzealous usage is even playing a hand at our evolutionary path. Our thumbs will become more angular so that texting can be more efficient. There is only so much content (advertisements) that can be served up on a phone. Therefore, advertising realty is limited and we become a captive audience to unique marketers’ messages. Given all this, it's safe to say that if marketers really want to reach consumers, they will inevitably need to establish a savvy way to speak to them on their mobiles. Don’t believe me? Ask yourself what would be more inconvenient: no phone or no laptop?
FIRST LOOK AT MOBILE PERFORMANCE Early Research Shows Mobile Advertising Campaigns Increase Brand Metrics According to eMarketer, this year's mobile advertising spend is estimated to be nearly 5 billion globally, to triple by the year 2011. Yet, only 13% of all mobile advertising is intended for branding compared to 87% for direct response. Are marketers missing out? Firstly by not investing in mobile advertising at all, and secondly, by using it primarily as a DR vehicle? Dynamic Logic has completed over 30 AdIndex® for Mobile research studies in the US and the UK to measure the branding effects of mobile advertising campaigns across a number of industry sectors, including alcohol, automotive, consumer electronics, CPG, entertainment, financial services, retail, telecomm, and travel. The campaigns include display ads on mobile WAP sites and downloadable mobile applications. Comparing people exposed to the mobile campaigns to those not exposed, the initial per‐ formance averages from 21 studies suggest that mobile advertising can be an effective me‐ dium for raising brand metrics throughout the purchase funnel. An average increase of +23.9 percentage points in Mobile Ad Awareness shows that these campaigns generally cut through and grab users' attention. Source: Dynamic Logic's AdIndex for Mobile; Early Averages as of July 2008, N=21 campaigns, n=25,050 respondents Average increases in Brand Favorability and Purchase Intent of +5.4 and +4.7 percentage points, respectively, support the ability of mobile advertising to change consumers' attitudes Delta (Δ) represents percent of people impacted by advert exposure; calculated Delta (Δ) = Exposed‐Control * Please note small sample size towards a brand and to drive intent to purchase. Part of the reason for these positive increases may be a result of the newness of the medium. People may be intrigued and pay more attention to the advertising on their mobile phone since it is presented on a smaller screen and is located in a less cluttered environment compared to the Internet. More research and campaign analysis is needed to help marketers understand what will continue to work best on mobile devices. Dynamic Logic's latest AdReaction Study shows that only 26% of people in the U.S. have used their mobile phone or wireless device to connect to the Internet. While reach may still be small, this will most certainly grow as providers offer more competitive packages for consumers to use their mobile phone to access the Web. Certain brands may be able to reach a more targeted audience of consumers via mobile branding campaigns on WAP sites. Reaching a smaller, but more engaged and relevant audience may provide a worthwhile return on investment. Mobile advertising is not going away, and now may be the best time to test out the waters before consumers force brands to jump in head first. While these mobile averages are only based on a small number of campaigns and should be used for directional purposes, it is important to begin comparing mobile cam‐ paigns' effectiveness to an industry average. As we conduct more studies, we will continue to build these initial averages into a normative database that can be used for a more granular look into the mobile data in the same way our MarketNorms® database is used for online performance benchmarking and planning.
Page 3
www.isignmedia.com
