The Convergence of Mobile and Media:
Insights from the mobileSQUARED Roadshow
mobileSQUARED Roadshow
December 2010

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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Agenda
•Background: The U.S. mobile market
•Evolution of Mobile Advertising
•Engaging: Targeting the Mobile Consumer
•Calculating: How to maximize ROI
•Measuring: The Digital IQ Index
•Case Studies: Neutrogena and Olay
•Creating: The Mobile App
•Mobile Search Strategy
•The Mobile Web
•Summary and Conclusions: Mobile and BDF
mobileSQUARED Roadshow

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The U.S. Mobile Market
Growing, changing, diversifying

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Smartphones have significant share of market
mobileSQUARED Roadshow

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Smartphones will overtake feature phones next year
mobileSQUARED Roadshow

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Diverse users are important segment to capture
mobileSQUARED Roadshow

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Evolution of Mobile Advertising
Looking towards the future

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The last 5 years of mobile advertising…and the next
June 29th, 2007: the iPhone
–Changed the way consumers,
publishers looked at mobile web
–Ads and engagement became
much more interesting
–Mobile display advertising to
drive acquisition
–G1 launched on T-Mobile
–$2.2 billion in ad revenue, <0.5%
of total U.S. ad spend in 2007
–In 2008, Apple started the App
Store, now 7 billion+ downloads
mobileSQUARED Roadshow

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Mobile Evolution: the immersive experience
In 2010, the iPad
– Immersive experience for consumers
– Apps and advertising are robust experiences
– PR value helped bring mobile ads to forefront
and have brands consider it
– Mobile advertising becoming much more
important of media mix as a whole
– Multi-screen multiplier: mobile web, Xbox,
iPhone apps
2011 and beyond: 4G, Location Based Services,
Social Media, more video (HD), the CLOUD
mobileSQUARED Roadshow

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Text message marketing involves the audience
Effective way to involve the audience
– Innovation: provide opportunities for streamlined
participation
– Monetization: partner w/ pioneering brands to
drive revenue from SMS
– For the sponsor, SMS is:
– Synaptic and targeted
– Measurable: track effective spend, conversions
– Trusted: ads tied to a credible source
– Visible: embed branding message in a clutter-
free medium
– For MTV, SMS offers:
– Ubiquity: deliver an experience for everyone
– Relevance: deeply engage audience to
contribute to show outcome
mobileSQUARED Roadshow

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Mobile payment case study: Médecins Sans
Frontières: mobile donations, 360 campaign
• Social networks to spread the word and recruit
volunteers
– Make projects more popular among all users of
social networks
– Coming to donation page where you simply insert
your mobile number
–Here, social media integration starts
– You can send it forward to friend
Supported with different mobile promotions
– Everything well integrated into overall campaign
– Success factors = high personal involvement,
viral activity
– Strong brand awareness + community
building
mobileSQUARED Roadshow

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Engaging the Mobile Consumer
Adapting to the unique needs of this new
audience

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Mobile users have unique needs
• Immediate benefit: provide value
to users upon initial engagement
– Convenience
– Store locator, product reviews, price
comparison
– Give option to use current location
– Provide unique flow for different
devices
• Relevance: Hyper-target users
with profiles
• Ease of use: design simple,
effective navigation
– Easy to recognize what is selectable
mobileSQUARED Roadshow

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Powerful mobile strategy via digital engagement
mobileSQUARED Roadshow
• Mobile  mainstream [1]
– E-reader spending will
jump from 2.5% to 18.75%
– Tablets from 22.5 % to
nearly 44%
– Netbooks will rise from
6.25% to 20%
– Digital plans should focus on
engagement, interaction and
trackable conversion [2]
– Digital ad spending to leak
into mobile spending
Source: [1]
http://www.mobilemarketingwatch.com/mma-survey-mobile-marketing-budgets-set-to-rise-124-from-2010-to-2011-7938/
, [2] ams.aaaa.org/eweb/upload/catalog/pdfs/MG18.pdf
[3] “Optimizing your Digital Marketing Mix,”
http://www.slideshare.net/DaveChaffey/optimising-your-digital-marketing-mix

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Advertisers capitalize on consumer connectedness
“Mobile is the most over-hyped marketing channel in the
short term and the most under-hyped in the long term”
-Sir Martin Sorrel, CEO WPP Group
Questions businesses should ask before going mobile:
– What are the goals of your mobile presence?
– Building brand awareness and consumer relevance
– Some companies trying to transfer e-commerce to m-Commerce
– Drive commerce to brick-and-mortar retailer site
– Engaging a broader base
mobileSQUARED Roadshow

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Customer and Brand Management Evolving
Stage 1: CRM
– Traditional advertising mechanism
– Brands through to agency and consumer
Stage 2: CRM 2.0
– More about communication, interaction and engagement
– To do so, you have to give consumer more power vs. the brand
Stage 3: Brand relationship management (BRM)
– Consumers can actually control who talks to them
– In doing so, there will be much better engagement b/w consumer
and brand
mobileSQUARED Roadshow

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Mobile Marketing ROI
How to improve ROI and partner with retailers

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How to maximize the return on investment
• 1. Create experiences that provide
utility. People will return if it’s useful
• 2. Integrate across channels. Benefit
from halo effect of other mediums
• 3. Measure, track, analyze. Proper
analytics allow you to measure
initiatives and improve them
• 4. Buy mobile media. Use mobile to
generate initial push of awareness
• 5. Build a mobile database. Building
an opted-in mobile database of brand's
tech-savviest enthusiasts

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Mobile’s share in marketing spend ready to rise
mobileSQUARED Roadshow
• Mobile marketing spend to rise 124%
in 2011
–Total mobile allocation is 4% of
marketing budgets
–Mobile marketing channel up the
greatest percentage
• MS and mobile Web sites are 58% in
adoption this year, 83% projections for
next year; apps are 71%
• Location based features spending up
265%; SMS 141%; Mobile video 137%

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Mobile campaign categories (CPM basis)
• Destination Site
– Mobile application, optimized website, or landing page
• Advertising Formats
– Messaging: Opt-in SMS ads
• Messaging (Mobile Display Advertising)
– News, sports, entertainment, tabloids, cinema/films
– Weather, music, social networking, traffic info, money, property
– Travel, shopping, retail, auctions, diet & fitness, automotive
– Chat and dating, games, gambling, top PC internet sites
– Local news, search, premium text lists
• Other mobile advertising
– Sponsored games on portal
– Pre and post-roll gaming community ads
– Sponsored video
– Sponsored on-portal takeover

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Retailers innovate mobile for shopper insights,
manufacturers need partnership strategy
38% of retailers have a mobile
strategy, metrics
• Customer centric retailers offer
new features on apps:
–Proximity and Non-proximity
Payments
–Dynamic Location Based
Messaging
–Line Busting, Mobile Phone
Based Reviews/Video
–Service and Repair Functions,
in-store Interactivity
Source: SmartSoft Mobile Solutions, “Best Practices: Defining Mobile ROI in
Retail,” and “http://www.brandweek.com/bw/content_display/news-and-
features/shopper-marketing/e3i7463e6c2968d742be6cb401e70fb7056 “

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Mobile Apps
Should you create one?

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Mobile apps are rapidly increasing on smartphones

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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: August 2010 Nielsen App
Playbook
2%
7%
14%
17%
15%
17%
15%
14%
18%
20%
21%
29%
10%
27%
50%
42%
42%
49%
59%
2%
6%
12%
16%
16%
17%
20%
20%
21%
22%
25%
28%
31%
35%
36%
37%
42%
49%
57%
Other Application (please specify)
Household/Personal Care
Lifestyle/Health
Food/Drink
Communication (e.g. IM, VoIP)
Shopping/Retail
Travel
Productivity
Video/Movies
Dining/Restaurant
Banking/Finance
Entertainment
Sports
News
Social Networking
Music
Maps/Navigation/Search
Weather
Games
Male
Female
Categories of Apps Used in the Past 30 Days by Gender
Base: Past 30 Day App Downloaders
Females are more likely than males to use social
networking, while males skew high for sports, news apps
Base: Male (n=2,032), Female (n=2,232)
Questions used: CQ24: Which of the
following types of applications have you
used in the last 30 days?

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Successful apps combine entertainment,
information, and utility
mobileSQUARED Roadshow
• Going mobile is all about the
consumer and keeping them
engaged
–Apps must fit in to everything
you’re doing
–Get high-performance app, has
stickiness and will bring
consumers back
–NIVEA could make a game
based on the “Bikini Challenge”
–Countdown to New Year’s app

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Source: August 2010 Nielsen App
Playbook
43%
35%
25%
15%
12%
Rewards Entertainment/interactive Communication/advertising Social/communities Other
Types of Branded Apps Downloaded
Base: Respondents who are Aware of Branded Apps (n=1,722)
Rewards branded apps are the most popular type downloaded
Questions used: CQBA7 What types
of branded apps have you
downloaded?

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Source: August 2010 Nielsen App
Playbook
8%
8%
9%
9%
9%
10%
12%
12%
12%
13%
14%
16%
16%
16%
19%
20%
Read or wrote on a blog
Purchased or intend to purchase advertised product/service online
Purchased advertised product/service immediately
Posted a comment or updated my status on my social networking site
Called a toll-free or 800 number
Recommended an advertisement/ advertised product/service
Went to a retailer/store/distributor for more information
Purchased or intend to purchase advertised product/service in a store
Thought more favorably about the featured brand or product
Entered a contest or sweepstakes
Used a coupon
Forwarded a link or video to others
Considered buying advertised product/service
Told someone about the advertised product or service
Looked online for more information
Used a search engine to find out more information
Questions used: C41F Which of these
actions have you ever taken as a result
of clicking and viewing ads on your cell
phone?
Actions Taken when Viewing Mobile Advertising
Clicked on an Advertisement while within an App (n=849)
Roughly one in five app downloaders that have clicked
on an in-app ad have searched for more info online

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Mobile Search Strategy
Can consumers find your products?

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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
How important is search in your mobile strategy?
Search patterns suggest: mobile search incremental to desktop search
Google Goggles mean visual search on the rise
– Media bridging concept: bringing an interactive experience
– Find out what you want (online or off) with Shopper
– Scan a barcode or do a voice search
– Search along route in Google Maps
mobileSQUARED Roadshow

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Internet behavior is similar across full browsers
Queries are remarkably similar
–Average desktop query and
mobile both have 3 words
–Heavy mobile searchers
actually inputting more complex
queries than desktop users
Mobile consumers looking for local
information (Couponing opportunity)
– Search near My Location
– Find friends nearby
– Call a local business
– Find local store hours
– Get driving directions
– Locate a business on maps
mobileSQUARED Roadshow

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The Mobile Web
Consumers’ constant internet access a boon
for marketers

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Mobile Web Experience vs. PC
Mobile web experience different than PC
– Whole user experience needs to be thought
out and mapped carefully
– How do you provide immediate functionality to
users, i.e. store locator in retail environment
– Ease of use is critical
– One size does not fit all
– You have to focus your content
– Location!
– Leverage LBS, hyper-target customers w/
user-specific offers according to their location,
user history and other demographics
mobileSQUARED Roadshow

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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Title of Presentati
1. Growth of mobile coupons and commerce
2. Converging on mobile devices
3. Downloadable applications or sign up for SMS alerts
4. Regular ways of engaging consumers can build loyalty
and long-term engagement
5. Leverage mobile
6. Mobile display ads targeting local search consumers
7. Fast growing, popular activity on mobile device
Strategies and Tactics
One of fastest growing parts is the mobile web
Internet reach: 35% use mobile web, 86 million unique users, 55% male, 45% female

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