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Source: WARC Best Practice, March 2020 Downloaded from WARC

What we know about mobile marketing

This article explores the current reading on mobile marketing, a near-ubiquitous medium that offers the fastest and most convenient route online for most consumers.

Mobile marketing is an integral part of advertising for brands across the world. The ubiquity of smartphones means that mobile offers the fastest and most convenient route online for most consumers. Mobile advertising provides brands with the opportunity to reach highly engaged individuals with personalised, hyper-targeted messages and offers. As mobile video becomes more popular marketers need to consider ad length and design creative for sound-off. Mobile is the most personal of platforms – as such, brands are advised to be mindful of consumer privacy.

Definition

Mobile marketing targets, engages and informs consumers through their personal mobile device i.e. a smartphone or tablet. There are various forms of mobile marketing including SMS, mobile display and video (including in-app) and mobile search. More broadly, it includes all forms of communication between brands and consumers via mobile – for example, delivery of offers or vouchers via SMS, Bluetooth or brand activation.

Key insights

1. Mobile advertising has reached a tipping point

Zenith predicts that, by 2021, consumers will spend on average 930 hours a year accessing the internet via mobile and mobile will account for 31% of global media consumption. Globally, some 52% of the population accesses the internet via a mobile phone; almost all of Facebook’s 1.5 billion daily users access it via mobile and more than 70% of all YouTube viewing is done on a mobile device. Perhaps not surprising then that according to WARC’s Global Ad Trends report – published in 2019 – mobile advertising has reached a tipping

point, and is expected to surpass TV media’s share of global ad spend, reaching in excess of an estimated US$150bn globally, from US$125.6bn in 2017. Global mobile ad investment has been growing at a CAGR of 48.6% since 2014, compared with 3.9% for all media. Paid search and mobile display account for almost all of the investment, with much of the growth in display being driven by programmatic trade. However, mobile display ad fraud continues to be an issue, and in-app fraud is emerging as a concern.

Read more in: Internet to swallow majority of global media spend by 2020, Global Ad Trends: Mobile’s Tipping Point and Marketer’s Toolkit 2019

2. Mobile marketing budgets are small but are predicted to increase across all regions

WARC’s State of the Industry Mobile Marketing survey of North American marketers found that although brands still underinvest in mobile, budgets are set to increase: one in two US marketers will spend a quarter of their budget in mobile in the next five years. Mobile is gaining C-suite support but there remains a skills shortage and the challenge is to better integrate mobile with traditional media. The equivalent 2019 survey in EMEA found just under a third of marketers spend more than 30% of their budget on mobile. Budgets continue to increase, with 75% expecting their mobile spend to grow in the coming year. Display is the most popular form of mobile advertising, but branded content continues to show the most potential for future growth. Ad fraud and consumer privacy concerns are an issue for a quarter of respondents, and are the main barriers to growth for marketers. The picture in APAC is very similar in terms of budgets and advertising types. However, measurement is also a key barrier to mobile marketing growth in the region.

Read more in: State of the Industry: Mobile Marketing in North America, The State of the Industry: Mobile Marketing in EMEA 2019 and The State of the Industry: Mobile Marketing in APAC 2019

3. Mobile ads must work in under a second

Research by the Mobile Marketing Association found that it takes less than half a second for two-thirds of mobile ads to be seen and cognitively recognised. Advertisers have about 0.4 of a second to make an impact with consumers on mobile, meaning that any ad needs to make an instant impression. This is much shorter than for ads running on desktop, where it can take between two and three seconds to see – and cognitively recognise – a desktop ad.

The research also found that:

Video ads create an emotional response faster than static ones, in under a second, and videos engage more quickly and better with the emotional side of the human brain. Ads from well-known brands stimulate much faster cognitive and emotional processing when compared with lesser-known brands. When ads first appear on the mobile screen (one tenth of a second), they are seen mostly as a blur, but they can trigger emotional responses due to the colours and the composition used.

Read more in: Why the first half-second of a mobile ad is a must-win moment and Mobile advertising: Do or die in the first second

4. TikTok and Quibi signal the rise of short-form mobile video content

Global brands are starting to seriously evaluate the potential of Chinese mini-video music app TikTok as an advertising channel. Douyin, the Chinese version of the app has already seen significant brand activity from both local and international brands; and since TikTok began testing advertising at a global level in January 2019, several youth-focused brands have been quick to trial the platform. So far budget allocation remains low and PR buzz-generation the key signifier of success. However, measurement and brand safety issues may be stumbling blocks. The large number of teens and children using TikTok poses challenges – especially for brands operating in an age-restricted regulatory environment, like alcoholic beverages and gambling – while the AI-driven approach to serving content can limit the opportunity to safeguard brands from inappropriate content. Furthermore, third-party measurement and verification systems are highly inadequate compared to those offered by other social media companies.

Set to launch in April 2020, Quibi will offer short form content in 10-minute bites to reflect the habits of 25- to 35- year-old mobile users, who want to snack content on the go. Quality, exclusive content will include lighthouse series directed by acclaimed talent, news updates, sports highlights, music news and late-night talk show roundups. Content will be formatted to switch seamlessly from landscape to portrait in full-screen video. The platform has already sold out 12 months of ad inventory, which comes in non-skippable pre-roll spots of six, 10 or 15 seconds. PepsiCo has been quick to get involved in order to reach millennials.

Read more in: Trend snapshot: TikTok,Will Quibi transform the world of mobile content? andPepsiCo seeks early-adopter benefits from tapping premium mobile advertising on Quibi

5. YouTube advertising should be designed for the mobile screen

Over three-quarters of YouTube viewing in the UK now occurs via mobile, so it’s imperative that ads are designed for the small screen. Based on YouTube meta-analysis of what performs best on the platform, it suggests the following:

Visual language – tighter framing than TV, a much brighter colour palette and greater contrast and use of text to create something punchier, louder and bolder. Attention and pacing – don’t assume the only solution is to make everything shorter; editing with rapid cuts to feel pacier also works to hold attention longer. Form follows function – make a creative system rather than creative object using variations on a core creative proposition which perform distinct functions; shorter creative for awareness and driving purchase intent, longer ads that demonstrate product to grow consideration.

Read more in: Advertising and the new online aesthetic

6. Mobile rewarded video ads are working for global brands

Rewarded video ads offer bonuses in exchange for watching 15- to 30-second, non-skippable, full-screen video ads. As such, they address issues of ad blocking and ad skipping by giving consumers a clear and immediate benefit in return for opting in to watch an ad. Due to high viewability and completion rates, rewarded video ads tend to be more expensive than other mobile video formats, and are getting more expensive. To maximise ad relevance, brands should use the targeting capabilities of publisher partners to reach the right consumers. Game company Activision Blizzard believes that brands will get a better return from targeted, in-game ads than e-sports sponsorship based on research evidence of the high degree of engagement players have watching ads during their gaming experience. Global brands to have already experienced success with mobile rewarded video

ads include:

Wild Turkey Bourbon – partnered with Spotify to offer 30 minutes of free music to millennial men, driving substantial increases in aided awareness and consideration. Snickers – partnered with Madden Mobile offering in-game currency, achieving 78% ad recall and 83% of players choosing to take a post-ad action. KitKat – partnered with Candy Crush saga to launch a new product, achieving a 40% uplift in brand recall versus an average of 7-8%.

Read more in: The value of rewarded video ads and Media owner spotlight: Understanding Activision Blizzard’s approach to in-game mobile advertising

7. Customer-centric mobile strategies target by device, daypart and location

Consumers rely on their mobile devices to undertake many tasks in different contexts, moods and mindsets. Since mobile plays a significant role in the purchase journey, media planners need to develop a customer- centric approach when incorporating mobile into integrated communications plans. This means planners need to understand how and when different mobile devices are used to evaluate associated needs and decide how to make communications relevant and helpful, without being intrusive. The volume of location-based data generated by mobile devices presents unique opportunities for brands to connect with their audiences.

Before long almost all mobile display will be purchased programmatically, enabling real-time, location-based targeting. To fully embrace the opportunity, marketers need to understand what’s different about mobile and pay close attention to viewability, fraud prevention, transparency of placement to ensure brand safety and the right effectiveness measures. Understanding how to use location data effectively and transparently will go some way to ensure that those consumers who explicitly opt-in are retained and engaged.

Read more in: How to understand mobile location marketing and engage opt-in consumers, Right on target: Benefits of location targeted mobile ads and How to understand and leverage mobile programmatic

8. Brand communications should be tailored to when, where and why the device is being used

People interact with their mobile in ‘micro-moments’ through the day so the opportunity for brands to engage is fleeting. To build affinity and influence, brands could consider the 5Ps of mobile engagement:

Presence – understanding of channels and content the target is accessing so the message can be pushed out at the right moment Personalisation – the need to be compelling and personal, e.g. by being location-specific Presentation – tailored for the small screen, leveraging native features and device functionality Peer-to-peer – as most mobile moments are some form of socialising, shareable content is more likely to gain attention Performance – fast, flawless delivery and easy, intuitive interaction

Read more in: The five Ps for engaging in mobile moments

9. Mobile video advertising poses unique creative challenges

Global video viewing habits are changing as consumers seek access to diverse content throughout the day on their mobile devices. Mobile can extend, deepen and personalise brand storytelling across the customer journey, and there are a variety of mobile ad formats – banner, interstitials, native ads and video – that can be used, each presenting brands with unique creative challenges. Screen size is an important factor and marketers must ensure that the brand name or logo is clearly visible. Mobile-specific formats, not simply ‘shrinking’ creatives for other channels need to be utilised. As consumers often have the option to skip advertisements, brands must work even harder to increase mobile consumer engagement and capture viewers’ attention in the first few seconds.

Read more in: How mobile can take centre stage in creative brand storytelling and How and when to employ which mobile ad formats

10. Ubiquity of apps changes media consumption habits and offer hyper-targeted advertising opportunities

The simplicity and ubiquity of mobile apps are transforming the media landscape. Some commentators predict that apps will succeed channels and websites as the principal gateway to screen time, ending years of fragmentation. Media consumption could stem from an ecosystem of 50 core apps, which will, on average, account for around 80% of screen time on connected devices. Marketers must navigate the shift from traditional broadcast to mobile app-based viewing. As desktop usage declines, so will brand websites, meaning brands must learn how different app portfolios fulfil different consumer needs.

Messaging apps (eg WhatsApp, WeChat) can be an effective CRM tool, as followers can be sent personalised offers, increasing brand affinity and purchase intent. Research amongst agencies and brands has shown they believe that in-app ads deliver better user engagement and better targeting capabilities compared with mobile web, thus driving demand for in-app inventory.

Read more in: Growing appetite for mobile as demand for in-app ads rises and Superior targeting and ROI drive in-app adspending

11. Mobile apps have driven the rise of ‘dark social’

Despite their popularity, mobile messaging apps can present challenges for marketers. The term ‘dark social’ refers to social sharing and conversations that are private and occur outside of what can be measured by web analytics programs and so can’t be attributed to a known source. Thus, marketers are increasing efforts to track ‘dark social’. For example, The Win, a USA Today-owned sports website, incorporated a sharing button to its mobile site so readers could simply spread content on WhatsApp. The proportion of sharing attributable to this app soon hit 18%; a powerful result given 53% of such activity was from ‘dark’ sources.

Read more in: What we know about dark social

12. Mobile marketers should be mindful of consumer privacy concerns

Mobile marketers walk a tightrope between giving people relevant ads – based on location and their previous surfing behaviour – and impinging on their privacy. An IAB study showed 63% of UK smartphone owners welcome relevant location-based ads and 67% welcome ads based on previous behaviour. However, 42% worry about companies accessing personal data.

Effective mobile marketing puts consumers in control. Brands can do this by clearly explaining how data is used and getting consumers permission at the outset. It’s advisable to get them to opt-in rather than force them to opt- out. Participation rates may be lower but it’s more conducive to building longer-term and valuable relationships. Following the introduction of GDPR, monitoring from mobile-first platform Smaato, showed that that mobile ad spend on sites with GDPR consent increased dramatically and the cost of non-targeted ads, which are unaffected by GDPR, also increased.

Read more in: Fragmentation and consumer privacy concerns are main barriers to mobile marketing growth in UK and Global Ad Trends: Mobile’s Tipping Point

More on this topic

WARC Topic Page: Mobile

WARC Case Studies: Mobile and apps

WARC Data: Mobile Marketing: State of the industry

WARC Best Practice: What we know about marketing on WeChat

WARC Category Intelligence: What’s working in mobile apps and games

Further reading

Allegra uses AR-driven ads to make an impact in Brazil

Polo Ralph Lauren taps mobile wallet as a marketing channel

New Balance’s mobile gaming ad unit drives engagement and brand lift

How Burger King is pushing the boundaries of delivery

Humana goes mobile to reach insurance subscribers wherever they are

Eight points to remember when building mobile brand experiences

Global to Local: Mobile in the developing world

Mapping human behaviour to effective mobile marketing in APAC

Slow mobile load times challenge APAC brands

Advertising on mobile apps versus the mobile web: Which delivers better advertisement recognition and willingness to buy?

How brands can make smarter decisions in mobile marketing: Strategies for improved media-mix effectiveness and questions for future research

How advertisers can keep mobile users engaged and reduce video-ad blocking: Best practices for

video-ad placement and delivery based on consumer neuroscience measures

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