WHY MOBILE ADVERTISING? APRIL 2016
TABLE OF CONTENTS 03 WHY MOBILE ADVERTISING / INTRODUCTION 04 AUDIENCE / PEOPLE ARE ON THEIR MOBILE PHONES 05 CAPABILITIES / MOBILE IS A STRONG ADVERTISING MEDIUM 06 POWERING OTHER MEDIUMS / TURN ON OFFLINE MEDIA 07 EXTEND YOUR REACH / REACH BEYOND TV & RADIO CAMPAIGNS WITH MOBILE VIDEO & DIGITAL AUDIO 08 CONCLUSION / SO, WHY MOBILE ADVERTISING? 02
WHY MOBILE ADVERTISING? INTRODUCTION Just 8 years ago, mobile advertising was only an emerging medium in Australia s advertising world, and answering the question, why mobile advertising wasn t easy. In those days, penetration of smartphones in the market was minuscule; the iphone - the device that sits in the heart of the smart phone revolution had just been released in the Australian market and desktop computers were still Australian s preferred method of accessing the Internet. The term app was just a new buzzword amongst geeks and the majority of websites were not mobile optimized, and delivered a terrible user experience. Fast-forward to 2016. We are living in a truly mobile world. Our smartphones are the first device we pick up in the morning. We use them while we work, play, and socialise. We use them to stay connected with our loved ones, for entertainment and to access content and service. If brands want to stay relevant and connect with individuals, they need to immerse themselves in this world. In this whitepaper, we ll explore the four main indicators signaling the necessity of including mobile advertising in a brand s media mix. Audience Capabilties Powering other mediums Extending reach Jem Reis Mobile Media Director / Agency Lead - Mnet Mobile jem.reis@mnetmobile.com 03
AUDIENCE PEOPLE ARE ON THEIR MOBILE PHONES Today, 4 in 5 Australians are active smartphone users, with every second Australian owning a tablet. Smartphone ownership amongst people aged 16 and over was at 76% in 2014 and this grew to 81% at the end of 2015. This figure is expected to climb to over 86% by the end of 2016 [1]. 2015 was a huge year for mobile in Australia, and not just because Smartphone penetration reached record heights. In 2015, mobile s popularity for online activity overtook desktop for the first time. Australians preferred to access the Internet with smartphones and tablets, instead of desktop computers or laptops. Mobile s dominance began in June 2015 and has increased every month afterward. If you take a quick look at the people around you; on trains, buses, restaurants, coffee shops, sidewalks, beaches pretty much everywhere you go - you ll see these statistics reflected by the increasingly mobile world we re now living in. By the end of 2015, with a 24% YOY increase in total mobile sessions, 67% of total average unique daily browsers were coming from mobile devices, and if the current trend is any indicator for the future, that number is only likely to get bigger [2]. AUSTRALIANS AGED 16 AND OVER WHO OWN A SMARTPHONE 2014 76% 2015 81% 2016 86% 04 [1] The Telstra Smartphone & Tablet Index 2015, [2] Nielsen Online Ratings - Market Intelligence, 2015
MOBILE MEDIA CAPABILITIES With its content, context and solutions, mobile is a strong advertising platform CONTENT Today, all major publishers acknowledge the significance of their mobile web traffic. They build and optimise their websites in a way that will ensure the best user experience for users accessing their content with a smartphone. Mobile is no longer a second screen, and for many content owners, it is an essential platform to stay connected with their consumers during their everyday lives. TECHNOLOGY Mobile internet infrastructure has improved enormously in comparison to the early days of mobile internet. We welcomed 4G into our lives only a few years ago, and it s already dramatically changed the speed of mobile internet activity. While experts are expecting the initial rollout of 5G networks by 2020, many telcos are already using some of the technologies being developed for 5G in their existing networks. To put the rate of improvement into perspective, the upcoming 5G technology will, according to telecommunications company Huawei, only take 6 seconds to download an eight gigabyte HD movie. When compared to 7 minutes on 4G and over an hour on 3G, the improved download speed is practically instantaneous [3]. Location is another important technology unique to mobile. Today, high market penetration of location-enabled smartphones allow us to track consumers and serve them relevant advertising while they are surfing the web and using applications. Every smart phone has a unique identification number that can be collected when the device accesses an app while online. Mobile advertising technologies enable us to track and group these individuals in relation to the locations that they have visited. For example we can create a premium audience pool of cinemagoers to serve ads by building a virtual fence ( geo-fence ) around cinema locations and counting unique IDs that go in and out of this area. We can do the same thing for all locations including stadiums, shopping centres, and the retail shops of our clients or their competitors. We can also track and serve mobile ads to consumers based on their present locations when they enter pre-set geo-fenced locations. CREATIVITY & ENGAGEMENT Gone are the days of restraining your brand s message within a 16 colour, 120 by 20 pixel miniature mobile banner on low-resolution mobile phones. With HTML5 defining itself as the new standard for digital advertising, many brands are reaping the benefits of this technology when building their rich media advertisements for mobile environments. When thinking about mobile rich media units, we can generate dynamic creative containing images, animations, videos and interactions that can utilise modern smartphones built-in functions such as tilting, tapping, pinching, shaking, or swiping. Think in-ad video carousels or in-ad dynamic maps, Twitter feeds, and Facebook share buttons. Think in-ad games that we play by swiping and tilting our phones! Campaign results, ad server statistics, and user feedback all support these exciting capabilities of mobile rich media ad units, and when combined with the right audience through contextual targeting, provide higher engagement and click-through rates, with more time spent interacting with ad units. 05 [3] USAhuawei.com, MWC 2015
POWERING OTHER MEDIUMS Mobile has the unique power of bringing offline media to life. TRADITIONAL MEDIUMS CAN BECOME MUCH MORE DYNAMIC FOR A SMALL ADDITIONAL INVESTMENT. With a simple URL, SMS, QR Code or NFC tag, mobile can supercharge and transform print, TV, radio and out-of-home media into interactive, digital platforms and all with minimum additional cost to existing investments. Many of these established platforms are still relevant, and have their own benefits. However, mobile seems to have one specific angle when compared to these proven (yet, offline) media channels; by adding a mobile element like an SMS short code to a print advertisement, we can take people to a mobile site right then and there; where they can enter a competition, consume other media (like video), sign up for a service or participate in a survey, easily, securely and quickly. Earlier this year at Mnet, we designed and developed a public digital game, using interactive outdoor displays by JC Decaux for one of the world s most widely recognized FMCG brands. Users were able to connect to the digital panels by simply entering the URL address and code on the panel, and once connected, the game turned their smartphones into game controllers, with the panel dispensing the brand s product for players who won! Using the unique power afforded by mobile, we were able to enhance existing advertising in a way that never would have been possible before, and this power is attested to by the results; THE CAMPAIGN WAS A MASSIVE HIT 11,211 GAMES PLAYED ON 11 PANELS IN ONLY FOURTEEN DAYS! [4] 06 [4] MNET COKE Summer Case Study, 2016
EXTEND YOUR REACH Extend your campaigns with mobile media and reach more of your target audience. MOBILE OFFERS ADDITIONAL PLATFORMS FOR VIDEO AND AUDIO ADVERTISING CONTENT. Just a few years ago, brand owners and marketers were skeptical about mobile video. But mass roll out of faster mobile networks and adoption of larger screen smartphones changed everything. Today more than 71% of smartphone users and 73% of tablet users view video on their devices in Australia [5]. They are also twice as likely to be solely engaged on mobile video compared to TV as it s a more personal device and requires your attention on the content. Dual-screen video viewing is a thing; 36% of Australian smartphone video viewers say they watch mobile video while watching TV [6]. On the other hand, audio is also a flourishing medium on mobile environments; music is the most popular type of digital content amongst internet users in Australia [7]. Digital audio is a medium that combines dedicated music streaming apps and online version of traditional radio broadcasts as we know it. It s more personal than traditional radio as it engages with the consumer on a one-on-one basis and campaigns can be targeted more precisely while being measured every step of the way. Again, in comparison to traditional radio, there are fewer commercial breaks, and these breaks deliver much higher value for brands. Digital audio can also serve clickable video ads, interstitial ads and rich media ads as deeper engagement mechanics. 07 [5], [6] The Telstra Smartphone & Tablet Index 2015 [7] emarketer.com, Digital Content Activities in Australia, April 2015
CONCLUSION SO, WHY MOBILE ADVERTISING? During the early days of mobile media, our aim was to open a new advertising channel that we believed would go mainstream. Today, mobile display advertising is a mature, established platform, with its reach and dynamic capabilities. As experts in all things mobile, we re ready to take brands and advertisers to where their consumers are. Still not convinced? Check out Mnet s 2015 Media in Review! 2015 MEDIA IN REVIEW 249 CAMPAIGNS 1,155,481,368 IMPRESSIONS DELIVERED 40,455,082 CLICKS CTR 3.5% 08
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