Paul Dalton 19/3/2014
Mobile Marketing
Survey
Looking at the use of mobile media,
tactics and budgets, by Irish marketers
in 2013 and 2014
SURVEY 2014
C
ONTENTS
1
INTRODUCTION 2
Forward by Tom Trainor – CEO Marketing Institute of Ireland 2
Introduction by Fintan Lonergan – MD O2 Media Ireland 3
Executive Summary 4
SECTION 1 – ABOUT THE RESEARCH 5
Methodology & Sample Size 5
Sector breakdown 6
Industry breakdown 7
SECTION 2 - MOBILE SPENDS 8
Mobile Marketing Spend in 2013 8
Mobile Marketing Spend Planned for 2014 9
Size of Growth Year on Year 10
Where the budget is coming from 10
SECTION 3 - MOBILE TACTICS 11
Mobile Marketing tactics used in 2013 11
Mobile Marketing tactic planned for 2014 12
SECTION 4 - IMPORTANCE, BENEFITS AND USES OF MOBILE M ARKETING 13
Importance with consumers 13
Reasons to use mobile 14
Strengths of mobile marketing 15
SECTION 5 – HOW IRISH MARKETERS RATE THEIR COMPANIES AND THEMSELVES 16
Company approach to mobile 16
Senior Management 17
Personal understanding 18
Education 18
SECTION 6 – FUTURE POSSIBILITIES 19
SURVEY 2014
I
NTRODUCTION
2
3
F
ORWARD
“
At the Marketing Institute we are always keen to ensure that we are keeping both ourselves and our members up to date with the latest trends. The last ten years have seen huge growth in the ownership and the use of mobile phones in Ireland, and recently the growth of newer, more advanced devices and Smartphones has meant that a new area of marketing has been emerging.
The media world has been changing too. Traditional media has been giving ground to digital media, with search advertising and display contesting for supremacy in digital, and no sooner do we see those battles finished, mobile comes looking for its share. But where does mobile fit in this new marketing world? How well equipped are Irish marketers to face this new challenge? Are they facing this new challenge?
We believe that success in this increasingly important sector needs a light shining on where the market was last year, where it is going this year and what excites marketers in this area for the future. In the first study of its kind we worked closely with O2 Media to conduct a research piece into mobile marketing practises amongst the cream of Irish Marketers by using the membership of the Irish Marketing Institute as the base for this study.
You will find that marketers are trying to embrace mobile, to push for more investment and training, to deliver plans that take advantage of this multi-faceted medium and leverage the opportunity that the mobile world represents”
Tom Trainor
---
SURVEY 2014
I
NTRODUCTION
3
3
I
NTRODUCTION
At O2 Media we are working at the front lines of mobile advertising where mobile technology and mobile commerce converge.
We see first-hand what the customer is doing, how their habits are changing, the adoption of new communication tools, new devices and new ways to engage with brands.
The opportunity presented by mobile marketing can be seen clearly as some Irish brands take advantage of the mobile space, to create engaging content and connect in a more personal way with customers.
We were delighted to work with the Marketing Institute to produce this report, it helps to put into context the conversation around mobile marketing, how it is part of the mix in Ireland, what challenges marketers face and how they plan to leverage this revolutionary change in consumer behaviour.
I believe this insight into a growing segment will help marketers understand the potential that mobile brings, where they are doing well, what they are missing, what they could do more of and how their immediate plans compare with those of the wider marketing communities plans for the future.
SURVEY 2014
E
XECUTIVE
S
UMMARY
4
E
XECUTIVE
S
UMMARY
This research, the first of its kind in Ireland, takes a deeper look at attitudes to mobile marketing, in particular looking at marketing tactics, spend and how companies are responding to the opportunity presented by Smartphones and mobile advertising. It is apparent that there is a lot of opportunity in the area of mobile marketing in Ireland and that marketers want, and need, to understand this opportunity better.
Spend patterns are changing, with traditional media set to take the brunt of the shift onto mobile and all forms of mobile marketing set to increase in usage and budget in 2014.
Among the key findings of the research are:
65%
of marketers are shifting budget from traditional media to spend onmobile marketing
76%
of those surveyed consider that mobile marketing gives them anadvantage over competitors
59%
said that Location Based Targeting is the most exciting development inMobile Marketing
79%
of marketers agree that mobile is highly important to consumers
68%
believe their organisation underperforms in the area of mobile marketing,while
41%
don’t believe that Senior Management understands the potential ofmobile.
SURVEY 2014
A
BOUT THE
R
ESEARCH
5
M
ETHODOLOGY
&
S
AMPLE
S
IZE
The survey was conducted online with members of the Marketing Institute over a period of three weeks from 7th Feb to 7th March 2014
The survey was delivered by email to the membership of the Marketing Institute of Ireland and then followed up with a second reminder email five days before the survey closed. A link was also presented on the Twitter account of the MII.
315 Respondents were screened as working in a Marketing role within their company and 252 valid responses were recorded.
SURVEY 2014
A
BOUT
T
HE
R
ESEARCH
6
S
ECTOR
B
REAKDOWN
Q
AS A MARKETER, DO YOU WORK ON THE CLIENT OR AGENCY/CONSULTANCY SIDE?Well represented responses with three quarters client side representation and
one quarter Agency representation.
Q
WHICH OF THE FOLLOWING BEST DESCRIBES YOUR TARGET MARKET AUDIENCE?As with previous, split fairly evenly across the target audience in respect of target audience. 76% 24% Client Agency or Consultancy 32% 27% 41% B2B B2C Both
SURVEY 2014
A
BOUT
T
HE
R
ESEARCH
7
I
NDUSTRY
B
REAKDOWN
Q
WHAT INDUSTRY SECTOR IS YOUR ORGANISATION IN?Strongest representation from IT and Telecoms and lowest from Utilities, but all industries represented.
0% 2% 4% 6% 8% 10% 12%
Utilities Agriculture / Forestry / Fishing Alcohol Government Hospitality Non-Profit / Trade Association Energy Wholesale / Distribution Manufacturing Arts / Entertainment / Recreation Transportation / Travel FMCG Pharmaceutical / Medical / Healthcare Retail Education / Training Media / Publishing Consultancy / Agency Banking / Finance / Insurance Other IT / Telecommunications 1% 1% 2% 2% 2% 2% 2% 3% 3% 4% 4% 5% 5% 6% 7% 7% 9% 10% 11% 12%
SURVEY 2014
M
OBILE
S
PENDS
8
M
OBILE
M
ARKETING
S
PEND
2013
Q
WHAT % OF YOUR BUDGET WAS SPENT ON MOBILE IN 2013?53%
of those surveyed spent 5% of their marketing budget or less on mobilein 2013
Only
19%
spent more than 10% of their budget on mobile marketing.2013 seems to have been a year of tentative spending in Mobile Marketing with Irish companies moving forwards slowly and gradually beginning to see the opportunities that Mobile can bring.
This is further evidenced by the shift in pace of Mobile Marketing spend in 2014. 53% 28% 15% 3% >1% >1% 0-5% 6-10% 11-20% 21-40% 41-80% 81%+
SURVEY 2014
M
OBILE
S
PENDS
9
M
OBILE
M
ARKETING
S
PEND
2014
Q
WHAT % OF YOUR BUDGET DO YOU INTEND TO SPEND ON MOBILE IN 2014?73%
plan on spending more than 5% of their marketing budget on mobilemarketing in 2014.
Those intending to spend more than 10% has
more than doubled
from19% in 2013 to
41%
in 2014.In addition, those intending to spend more than 20% of their budget in 2014 on
mobile marketing has
risen to 15%
from just 4% in 2013.27% 32% 26% 7% 7% 1% 0-5% 6-10% 11-20% 21-40% 41-80% 81%+
SURVEY 2014
M
OBILE
S
PENDS
10
M
OBILE
M
ARKETING
S
PEND
G
ROWTH
49%
of those surveyed intend increase pend the same in 2014 vs 2013Q
WHERE IS THE ADDITIONAL BUDGET COMING FROM?TRADITIONAL MEDIA, RATHER THAN ONLINE, IS LOSING OUT AS MARKETERS INCREASE MOBILE MARKETING SPEND.
49% 50% 1% Increase Same Decrease 0% 10% 20% 30% 40% 50% 60% 70% Securing additional budget
Budget redirected from traditional marketing Budget redirected from online
desktop Don't know 14% 65% 7% 14%
65%
redirectingbudget from other media or
SURVEY 2014
M
OBILE
T
ACTICS
12
M
OBILE
T
ACTICS IN
2013
Q
WHAT MOBILE MARKETING TACTICS DID YOU USE IN 2013? (TICK ALL THAT APPLY)85%
of Irish marketers are doing some form of mobile marketingThe most common mobile tactic has been the move to a mobile optimized website. Consumers expect that a site is mobile optimized and this is clearly
0% 10% 20% 30% 40% 50%
Mobile Coupons NFC / Bluetooth None of the above Mobile Video Mobile Paid Search Location Based / GEO Targeting QR Codes Mobile Display Advertising* Mobile Applications SMS Messaging Mobile Social Media Mobile Optimised Website
5% 5% 15% 15% 22% 23% 24% 28% 36% 42% 48% 52%
SURVEY 2014
A
BOUT THE
R
ESEARCH
5
M
OBILE
T
ACTICS IN
2014
Q
WHICH OF THE FOLLOWING MOBILE TACTICS, IF ANY, DO YOU PLAN ON USING IN 2014?TICK ALL THAT APPLY
All forms of Mobile Marketing tactics are set to rise in usage this year.
There is no change at the top or bottom in terms of tactics being used in 2014.
Mobile optimisation remains the highest priority and
increased from
52% to 69%.
Use of Mobile Coupons set to
rise from 5% to 17%
and Locationbased/Geo targeting also rising from
23% to 38%.
0% 10% 20% 30% 40% 50% 60% 70%
NFC / Bluetooth None of the above Mobile Coupons QR Codes Mobile Video Mobile Paid Search Location based / GEO Targeting Mobile Display Advertising* Mobile Application SMS Messaging Mobile Social Media Mobile Optimised Website
9% 10% 17% 23% 34% 35% 38% 41% 44% 46% 60% 69%
SURVEY 2014
I
MPORTANCE
&
B
ENEFITS
13
Q
ON A SCALE OF 1-10, HOW IMPORTANT IS MOBILE IN THE LIVES OF YOUR TARGETMARKETS DAY TO DAY ACTIVITIES? (1 BEING "NOT AT ALL IMPORTANT"/ 10 BEING
"EXTREMELY IMPORTANT")?
79%
ranked Mobile as 6/10 or higher in its importance to the Irish consumer.Of those who ranked 5 or less,
66%
of those also stated that they had nomobile strategy.
There is clear recognition from most of those surveyed that mobile is a huge part and influence on the lives of the consumers that they want to engage with.
3% 3% 2% 3% 10% 10% 16% 19% 13% 21% 0% 5% 10% 15% 20% 25% 0 2 4 6 8 10
SURVEY 2014
I
MPORTANCE
&
B
ENEFITS
14
Q
WHY DO YOU USE MOBILE MARKETING? (TICK ALL THAT APPLY)The number one reason to use Mobile Marketing was the desire to stay ahead of
the competition with
69%
indicating it as a factor.Brand Awareness also ranked highly which positions mobile marketing strongly against traditional brand driving media.
More than
4 out of 10
would use mobile marketing in order to grow loyaltyand drive retention.
Also, of great interest, is the high usage of mobile marketing for inte rnal communications and importantly to drive customer loyalty.
0% 10% 20% 30% 40% 50% 60% 70%
Consumer Engagement Decrease overall marketing costs Don't know Drive offline sales Drive online sales Drive website traffic Generate leads / Acquire new customers Improve customer service Internal communications Loyalty & retention Other Product / Service Promotion Brand Awareness Stay ahead of the competition
2% 3% 9% 15% 27% 28% 35% 38% 39% 42% 51% 56% 65% 69%
SURVEY 2014
I
MPORTANCE
&
B
ENEFITS
15
Q
WHAT ARE THE MAIN STRENGTHS OF MOBILE MARKETING (TICK ALL THAT APPLY)The impact of mobile and the growth of Smartphones has been well documented, and this explosion of ownership is not lost on Irish marketers with
70%
calling out the closeness of the device to their target consumer as themain strength of mobile marketing.
Secondly is the powerful targeting that mobile allows that is unparalleled in
other media.
61%
of those surveyed called this out.Mobile is also seen as a strong return on investment with over
30%
calling0% 10% 20% 30% 40% 50% 60% 70% 80%
Other (please specify) Don't know Mobile payments functionality Cut through Return on investment Low cost of set up Data management / tracking capabilities Instant response and results Unique capabilities of smartphone Powerful targeting Closeness of device to consumers
0% 2% 12% 18% 31% 42% 45% 48% 52% 61% 70%
SURVEY 2014
H
OW
I
RISH
C
OMPANIES
R
ATE
16
Q
WHICH OF THE FOLLOWING STATEMENTS BEST DESCRIBES YOUR COMPANY'SAPPROACH TO MOBILE MARKETING?
23%
of Irish marketers say they don’t have a mobile marketing strategy.Q
DO YOU FEEL SENIOR MANAGEMENT IN YOUR ORGANISATION UNDERSTAND THE FULL POTENTIAL OF MOBILE FOR YOUR ORGANISATION?41%
of Irish marketers do not feel that Senior Management in theirorganization understand the full potential of mobile marketing.
46%
23% 23%
7% 1%
We are using mobile as an extension of our existing channels
We have a fragmented approach to mobile
We don't have a mobile strategy
We are a mobile first organisation Don't know 0% 10% 20% 30% 40% 50%
Yes No Don't know
46%
41%
SURVEY 2014
H
OW
I
RISH
C
OMPANIES
R
ATE
17
Q
ON A SCALE OF 1-10, HOW DO YOU FEEL YOUR ORGANISATION PERFORMS ON MOBILE MARKETING?(1 BEING "EXTREMELY POOR"/ 10 BEING "EXTREMELY WELL")
67%
of those surveyed ranked their organization as 5 or below when askedhow they perform in Mobile Marketing.
66%
of those said that they didn’t have, or don’t know if they have, a mobilemarketing strategy.
Even where a mobile marketing strategy was in place, they still believed that they were not performing in the area of mobile marketing which suggests that
there is still a gap between strategy and execution.
11% 18% 17% 11% 10% 12% 9% 6% 3% 3% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0 2 4 6 8 10
SURVEY 2014
H
OW
I
RISH
C
OMPANIES
R
ATE
18
Q
ON A SCALE OF 1-10, HOW WOULD YOU RATE YOUR OWN UNDERSTANDING OF MOBILE?(1 BEING "NO UNDERSTANDING"/10 BEING "EXCELLENT UNDERSTANDING"
There is still much to be learnt with
43%
scoring their own understanding asfive or less.
Q
DOES YOUR COMPANY PLAN TO INVEST IN MOBILE MARKETING TRAINING/EDUCATION FOR STAFF IN THE FUT URE?2% 6% 12% 10% 13% 18% 14% 9% 9% 7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0 2 4 6 8 10 39% 32% 29%
Yes Don't know No
E
DUCATION
G
AP
52%
of those who rate
their own understanding
as 5 or less say their
company has no plans to
invest in mobile
marketing training
SURVEY 2014
T
HE
F
UTURE
19
C
HALLENGES FOR
M
OBILE
M
ARKETING
Q
WHAT ARE THE BIGGEST CHALLENGES FOR MOBILE MARKETING IN IRELAND?TICK ALL THAT APPLY
Lack of a defined, and well executed mobile strategy, would seem to be the
main challenge for marketers in Ireland, with
54%
calling lack of strategy outas a big challenge.
Cost does not seem to be a factor with only
19%
calling that out as a barrier.0% 20% 40% 60%
Other Cost of conducting campaigns Lack of creative opportunities Integration with other channels Rate of change of technologies/devices Lack of measurement/accountability
Doesn't get the attention/budget it… Lack of Irish case studies
Privacy concerns Lack of technical expertise in workplace
Marketers over-reliance on traditional… Lack of access to quality customer…
Lack of strategy 4% 19% 20% 27% 29% 31% 33% 36% 39% 39% 41% 42% 54%
SURVEY 2014
T
HE
F
UTURE
20
M
OST
E
XCITING
D
EVELOPMENTS
Q
WHAT ARE THE MOST EXCITING DEVELOPMENTS IN MOBILE MARKETING?(TICK ALL THAT APPLY)
Location based targeting came in first, with
59%
calling it out as the mostexciting development in mobile marketing. The advanced functionality of
Smartphones and tablets and the possibility of real time advertising came in 2nd
and 3rd.
Augmented reality, real time bidding and Bluetooth brought up the rear as the least exciting developments.
0% 10% 20% 30% 40% 50% 60%
Other Bluetooth/NFC Real time bidding Augmented reality Hyper-targeting Wearable Smart devices Mobile specific social platforms Second-screen / Cross-screen marketing Mobile wallet 4G New creative opportunities/capabilities Data tracking / analytics Real time advertising Smartphone/tablet functionality Location based targeting
3% 11% 11% 19% 21% 24% 24% 27% 31% 36% 39% 44% 51% 57% 59%
SURVEY 2014
T
HANK
Y
OU
21
T
HANK
Y
OU
Together with the Marketing Institute, O2 Media would like to thank everyone for taking part in this mobile marketing study.
If you have any questions about the report, please contact: paul.dalton@telefonica.com About O2 Media
O2 Media was set up to help brands connect with consumers through what is the fastest growing digital marketing channel worldwide. Services include real-time location-based advertising, video messaging, app discovery and mobile CRM messaging for businesses. Clients include Aer Lingus, Heineken, Nissan, Dunnes Stores & IKEA.
For more information on O2 Media see www.o2media.ie
About The Marketing Institute
The Marketing Institute is the professional body for Ireland's marketing people, in operation for over 50 years, and it envisions a professional marketing community that is qualified, effective and valued.
With a mission to strengthen the profession of marketing in Ireland, the Institute aims to promote, support and elevate marketing as a key strategic business tool. It does this in three ways: by (1) delivering insights and expert content; (2) building the community of marketers; and (3) giving a voice to the profession. Content, Community and Voice are the three themes that underpin all Institute activities.