Mobile Marketing Association Says Brands Should Increase Mobile Marketing Spend and Optimize Cross Channel

Nearly three hundred mobile marketers gathered today, at San Francisco’s Hotel Nikko, to learn from the Mobile Marketing Association’s first ever Smart Mobile Cross Marketing Effectiveness (SMoX) study. Along with the MMA and Marketing Evolution, representatives from Coca Cola, Walmart and Mastercard presented case studies for mobile campaigns, along with their findings and recommendations for best practices. These recommendations included increasing investments, shunning screen-agnostic marketing approaches and optimizing within mobile channels.
Greg Stuart, CEO of the Mobile Marketing Association (MMA) asserted that “mobile is the closest you can get to your consumer.” He went on to cite that smartphone users check their phones at least 150 times per day. Stuart suggested that number was even higher for teens and millennials.
This level of engagement and attention greatly surpasses that of any other advertising medium. While there is no guarantee that your audience is paying attention to a commercial running on TV, properly optimized mobile ads are hard to ignore. This is proven true by the staggering ROI now experienced by early adopters, despite the nascency of mobile marketing, and lack of best practices in the field.

Golden Peak Tea (a Coca Cola brand)

Presented by Tom Daly, Group Director, Global Connections, Coca Cola
Campaign Summary: Build brand awareness across a broadly targeted audience using a broad mix of marketing channels including TV, print, online and mobile.
Key Insights:

  • Mobile impressions drove 6% of sales while accounting for 5% of the budget.
  • By reallocating more spend to mobile channels, they would have brought in a 4% increase in sales (without spending any more money). Daly explained that the four percent increase would account for enough bottles of tea to lay end-to-end from New York to Montreal.
  • Channels within mobile such as video, social and audio (like Pandora) must also be optimized.

MasterCard Travel

Presented by Rex Briggs, CEO & Founder, Marketing Evolution
Campaign Summary: Increase association of the card within the travel sector and drive awareness of their Concierge app. Targeted to parents and empty nesters using a mix of TV, print and online.
Key Insights:

  • Mobile advertising was their second-most cost-effective medium. Its share of results were nearly twice it’s share of the budget.
  • An optimized campaign would dedicate 8% of its budget to mobile.
  • Mobile video strongly out-performed cable TV, while using the same creative.

Walmart Save for School

Presented by Regina Mills, Senior Marketing Manager, Walmart
Campaign Summary: Walmart sought to drive grocery intent-to-shop among mothers of school-aged children using a broad mix of marketing channels.
Key Insights:

  • Mobile drove 14 percent of change in overall shopping intent, despite accounting for only 7 percent of spend.
  • An optimal spend would have been 9% of budget. Mills revealed that by reallocating 30% more in mobile budget, they would have seen nearly 3x increase in impact.

Take Aways

After the the case studies were presented, Briggs went on to suggest best practices influenced by the study findings. He identified four areas that can make the most impact on a mobile advertising strategy: optimize by format, leverage location targeting, leverage context targeting (such as time of day), and build on creative. Briggs also warned against too much repetition in creative, explaining that it quickly diminishes effectiveness.
He urged brands to allocate 10-15% of their marketing budget to mobile formats, showing that it has the potential to increase impact up to 160%.
Finally Greg Stuart drove home the importance of early adoption of mobile marketing, using examples of other leaders who were too lagged in technology adoption.