Exploring the role of value in mobile advertising

1. Reciprocity, Rewards
and Real Breakthrough
E X P L O R I N G T H E R O L E O F VA L U E
I N M O B I L E A D V E R T I S I N G

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.
2001
2003
2005
2007
2009
value
2012-2013 ADREACTION
MOBILE + SESSION M

3. AdReaction established that mobile audiences expect tangible
value in exchange for their attention and engagement
3
Be mindful of the value exchange and make certain it is commensurate
with your audience’s expectations of value.
18%
27%
44%
27% 25%
15%
MOBILE VALUE SPECTRUM
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
A coupon would move me from
confident to super thrilled.”

4. Marketers & publishers
are constantly challenged
to get audiences to engage.
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).
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?

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

6. +2
+2
+1
-2
-6
-2
-5
-8
But that does not yet translate to love for mobile advertising
Sample: AdReaction: General Population Online Audience6
7%
7%
21%
21%
18%
22%
24%
27%Opt-In Email
Online Display
Online Video
Ad-Supported
Games
Online Search
Social Media
Mobile
Non-Opt-In
Emails
9%
9%
13%
16%
16%
16%
22%
28%
AdReaction 2009 AdReaction 2012VERY/SOMEWHAT
FAVORABLE
CHANGE
How would you characterize your attitude towards each of the following formats of advertising?

7. Can the Rule of Reciprocity change this?
7
T H E R U L E O F R E C I P R O C I T Y
REQUIRES THAT
ONE PERSON
TRY TO REPAY
what the other person
HAS PROVIDED
- ROBERT CIALDINI

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…
11
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 QUALITATIVE
Mobile Advertising
and Value Exchange
Interplay between Mobile Advertising
and Value Exchange
Who: Mobile Population n=500;
Session M Audience n=500
What: Attitudes towards mobile advertising and
value exchange systems
How: Online or mobile survey
Who: SessionM Users
What: Explore the relationship between
consumers & reward-based mobile
advertising
How: 25 respondents – 1 week of blogging
on IdeaBlog® followed by 12 60 –
minute individual, in-depth interviews
via webcam-enabled uViews

12. 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.
1
Consumers presently reward brands that deliver on
that value exchange with their loyalty.2
Reward-based mobile advertising is an answer to
the value exchange equation. It opens the door of
consumer receptivity and brand engagement.
3
Reward-based mobile advertising succeeds when
the advertising execution is timely, chosen &
relevant and the reward is predictable, tangible &
chosen.
4
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.
5

13. The Mechanics
O F R E C I P R O C I T Y I N M O B I L E

14. Consumers have high expectations for mobile
14
And audiences are receptive to mobile marketing when it’s done right.
Mobile Will Offer
an Exchange of
Tangible Value
3
Mobile Will Know
Who I Am and
Target Accordingly
21
Mobile
Will be
Competent

15. What exactly is “tangible value” in a mobile ad experience?
15
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
ENGAGING
It is something I would use
or be interested in?
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.”

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
17
15%
17%
12%
20%
18%
14%
34%
28%
21%
36%
26%
19%
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
+9*
Which of the following actions have you taken as a result of seeing an in-app ad?
+19*
+11*
+16*
+8*
+5*
* 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
18
59%
14%
37%
42%
31%
72%
77%
63% 63%
53%
Aided Brand Awareness Mobile Ad Awareness Message Association Brand Favorability Purchase Intent
Control Exposed
+13*
+63*
+26*
+21*
+22*
* Statistically significant difference between control and exposed group at a
90% confidence level; ^N=5 campaigns
SessionM Campaigns Tested

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

20. Rewards in Mobile
T H E FAC E T S O F
R E WAR D - B A S E D M O B I L E A D V E RT I S I N G

21. “Is it worth my time?”
21
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
Travel
Music
Social Networking
Games
News
Utility

22. The VALUE EXCHANGE equation helps consumers constantly
assess the worth of every mobile advertising interaction
22
(time)(useful)+engaging=
VALUE EXCHANGE EQUATION
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.

23. Reward-based mobile advertising has created a currency that acknowledges
the value of consumers time & attention
23
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.”

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

25. Ad TIMING affects audiences’ favorability towards it
25
Adhering to natural breaks is the difference between being perceived as a
friend or foe.
Does your favorability towards a mobile ad depend on how
the ad was presented to you?
75%
25%
Yes No
Execution
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.
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.”

26. Consumers want the OPTION to choose
1AdReaction: 45% all respondents say providing no way to opt-out can damage opinion of brand26
The act of choosing to engage activates the audience’s attention & shifts the context of the
brand exposure from forced to receptive.
In AdReaction1, we established the absence of choice can damage a user’s
impression of the brand.
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.”
Execution

27. RELEVANCE draws the audience into the ad experience
27
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.”
Execution

28. CHOICE of reward is key to consumer receptivity
28
92%
8%
Yes, it's important
No,it's not important
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.”
Reward
FEEDBACK QUESTION
Would it be important to you that you could choose the type
of reward you can receive when on your mobile device?

29. Audiences want to be able to PREDICT the value
29
Member Responses
Reward
FEEDBACK QUESTION
After viewing or interacting with an ad, which is your preference
for receiving a reward or incentive (i.e. coupon, etc.)?
12%
68%
10%
3%
7%
Receiving it as a surprise
Knowing for certain I would receive it
I would view either favorably
Neither favorable
I have no opinion on this
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.”

30. Audiences most desire TANGIBLE and flexible rewards
30
Preferred Rewards
*Most to least preferred
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
Reward

31. Guidelines for Engagement
I N M O B I L E A D V E RT I S I N G

32. Casting the right role for success in mobile

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

34. #2 Show respect: Don’t be a bully. Be a friend.
34
Audiences tune-out or avoid mobile advertising that forces an experience or
demands their attention.
They are forcing themselves
on me and trying too hard to
get my attention. I feel
violated.”
They are suggesting things:
trying to make me happier;
enrich my life; and get me
interested in things.”
NO VALUE VALUE
COMPANIONBULLY
Images selected by respondents in qualitative
“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.”

35. #3 Be helpful
35
“I look for the advertisers that are going to give me something more. That could be
information or a new product I might like.”
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.”
NO VALUE VALUE
SERVANTVAMPIRE
Images selected by respondents in qualitative
Consider what might be relevant or interesting to your audience and focus your
attention on giving instead of taking.

36. F O R S U C C E S S I N R E WAR D - B A S E D M O B I L E A D V E RT I S I N G
The Marketer’s Playbook

37. Execution Best Practices
37
do: don’t:
Interrupt. Ads shouldn’t distract or
derail users from their mobile goal.
Serve audiences personally
relevant ads.
Bombard users with ads. Audiences
are aware of the value of their time.
Serve a random ad. An irrelevant ad
is a wasted impression.
Pair a reward with creative.
Rewards are boosters that can
break through the clutter.
Offer choice in ad exposure. When
possible, let audiences select when
they want to watch your ad.
Use intrusive formats unless context is
highly relevant.
Consider timing and placement.
Wait for a natural break in browsing
to serve the ad.

38. 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.
Reward Best Practices
38
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.
Vary reward schedule, users
appreciate predictability.
Provide tangible rewards. Gift cards
and coupons are best.
Be a bully and dictate the reward.
Audiences want to select their reward.
do: don’t:

39. Thank You
QUESTIONS ABOUT AD EFFECTIVENESS AND
AUDIENCE MEASUREMENT:
marketing@dynamiclogic.com
QUESTIONS ABOUT REWARDED MOBILE ADVERTSING:
marketing@sessionm.com