Nielsen. THE MOBILE ROADMAP

1Copyright © 2014 The Nielsen Company

T H E M O B I L E R O A D M A PA GUIDE FROM MOBILE ADVERTISING CHALLENGES TO MEASUREMENT SOLUTIONS

2 THE MOBILE ROADMAP

C O N T E N T SThe Mobile Roadmap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

First Stop – Understanding the Mobile Advertising Landscape . . . . . . . . . . . . . . . . . . . . . 4

Road Blocks – Challenges For Mobile Advertisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

U-Turns – Relevant Metrics Could Accelerate Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

You Have Arrived At Your Destination – The Three “R” Questions That Lead to the Solution ....................... 11

Reach ........................................................................................... 13

Resonance ...................................................................................16

Reaction....................................................................................... 18

Methodology .................................................................................. 20

3THE MOBILE ROADMAP Copyright © 2014 The Nielsen Company

T H E M O B I L E R O A D M A P

The new mobile medium represents an appealing opportunity for brand

marketers - enabling them to reach a pool of consumers that are growing

by the day anytime and anywhere. Because of its relative youth, however,

there is still confusion over how best to engage in mobile advertising.

Differences in technology mean that marketers cannot always employ

the same best practices in mobile that are used for television or online

advertising.

Unlike the online medium, mobile is relatively nascent in being adopted for

branding purposes. Even at this stage, mobile marketers and media owners

identified the inability to measure the effectiveness of their mobile efforts

consistently with other media as one of their biggest pain points, and a

significant barrier to mobile growth.

Based on interviews with advertisers, agencies, and media providers, this

Mobile Roadmap, addresses the challenges advertisers are experiencing

in mobile advertising, and addresses the solutions available to provide the

most return on their financial investment.


Mobile devices have come a long way since their heavy, brick-like

predecessors were first introduced in 1983. These devices are now

much more than on-the-go telephones, morphing and growing into

a companion that is always on and always with us. Smartphones

now make up 70 percent of all mobile phones in the U.S., up from

18 percent just four years ago. We now spend so much time on our

phones (34 hours monthly) that it has surpassed time spent on our

computers (27 hours monthly).

Brand marketers are starting to experiment with mobile in

their advertising campaigns to stay in front of consumers.

Eighty-eight percent of the advertisers and 90 percent of the

agencies we surveyed told us they had bought some form of

mobile advertising in the past 12 months.

When compared with online and TV, mobile advertising is

a young medium and still relatively new to most marketers.

The majority of advertisers surveyed (82%) had three years

or less experience with mobile, with 21 percent “just getting

started.” Agencies were in a similar position, with 70 percent of

respondents having three years or less experience with mobile.

This lack of experience is reflected in the fact that over 30 percent

of agencies and advertisers indicated that less than 1 in 10 of

their 2013 campaigns included a mobile component. However, an

equally sizable portion of respondents – obviously early adopters

– indicated more than half of their campaigns included a mobile

component (Fig 1).

1Source: Nielsen US Mobile Device Insights Q1 20142Source: Nielsen Digital Consumer Report Q1 2014

31% 39%

15%

12% 20%

5% 8%

34% 18%

1% 0%

17%

AGENCIES ADVERTISERS

1-10%

11-20%

21-30%

31-40%

41-50%

51%+

FIG 1. PERCENTAGE OF 2013 CAMPAIGNS INCLUDING A

MOBILE COMPONENT

FIRST STOP UNDERSTANDING THE MOBILE ADVERTISING LANDSCAPE


R O A D B L O C K S CHALLENGES FOR MOBILE ADVERTISING

Pairing of mobile with other mediums and the focus on branding give

rise to advertisers’ biggest mobile pain points. Advertisers say their

two biggest obstacles to further mobile growth are calculating mobile

return on investment (ROI) and lack of relevant success metrics for their

mobile campaigns. (Fig 2)

FIG 2. ADVERTISERS’ TOP MOBILE BRAND ADVERTISING PAIN POINTS

CALCULATING MOBILE ROI

RELEVANT SUCCESS METRICS

56%

46%

When asked what type of metrics advertisers would like to use, the most

common response (given by 39%) is “the exact same metrics as offline,

and additional metrics specific to the mobile medium” to ensure they

are measuring and optimizing mobile activity consistently with their

other initiatives (Fig 3).


FIG 3. METRICS ADVERTISERS WOULD LIKE TOUSE VS. METRICS PUBLISHERS PROVIDE

Since marketers are running mobile increasingly with both online and

offline tactics, it is not surprising that they also seek metrics that can

span both platforms. The increasing focus on brand objectives makes

this especially true, as relevant brand metrics are much more common

in the offline medium than the digital medium. However, advertisers

also recognize there is a unique aspect of the mobile medium that does

not exist offline that they can use to their advantage – for example, the

opportunity to granularly measure audience reach or to validate the

effectiveness of the campaign directly against the campaign audience.

Only 23 percent responded that they’d like to “primarily rely on metrics

specific to the mobile medium,” indicative of the low incidence of

mobile-only campaigns.

Unfortunately only 22 percent of media sellers can provide the offline

and mobile metrics that advertisers are looking for. There is clearly a

disconnect in the metrics desired by advertisers and provided by media

sellers, opening up a huge opportunity for media sellers who are able

bridge this gap. (Fig. 3)

WE WOULD PREFER TO USE THE EXACT SAME METRICS AS OFFLINE, AND

NOTHING ELSE

WE WOULD PREFER TO USE THE EXACT SAME METRICS AS OFFLINE, AND

ADDITIONAL METRICS SPECIFIC TO THE MOBILE MEDIUM

WE WOULD PREFER TO USE SOME OF THE SAME METRICS FROM THE OFFLINE MEDIUM, AND SOME METRICS SPECIFIC

TO THE MOBILE MEDIUM

WE WOULD PREFER TO RELY PRIMARILY ON METRICS SPECIFIC

TO THE MOBILE MEDIUM

13%

39%

26%

22%

25%

22%

22%

31%

ADVERTISERS MEDIA SELLERS


Addressing this disconnect could pay large dividends: 30 percent of

advertisers and 37 percent of agencies say that the “ability to use the

same metrics to evaluate audience reach on mobile as are used offline”

would lead them to increase their use of mobile advertising.

As a best practice, media sellers should offer the relevant metrics

advertisers are looking for. According to advertisers, the most

appropriate metric to measure a mobile brand advertising campaign’s

reach is gross rating points (GRP) (Fig 4). GRPs have long been the

standard metric used to demonstrate audience reach in the TV medium,

which further illustrates advertiser desire for offline metrics for the

mobile medium. However, media sellers most often report the campaign

impressions from the ad server, which primarily measures what was

delivered as opposed to the audience it was delivered to.

The confusion over metrics is even more pronounced when it comes

to measuring mobile ROI. Publishers most often measure the ROI of

mobile brand advertising campaigns using clickthrough rates (Fig 4).

When asked which is the most appropriate metric for measuring mobile

brand advertising ROI, advertisers and agencies both respond the

number one metric is brand lift. Publishers are able to offer a mobile-

only measure of what was delivered, while agencies and advertisers are

looking for an offline-equivalent metric for campaign effectiveness.

GRP: STANDS FOR GROSS RATING POINT, WHICH IS THE PERCENTAGE OF THE AUDIENCE REACHED BY AN AD MULTIPLIED BY THE FREQUENCY WITH WHICH THEY SEE IT IN A GIVEN CAMPAIGN. THIS METRIC IS USED TO MEASURE THE SIZE OF AN AUDIENCE REACHED BY AN AD OR PROGRAM.

BRAND LIFT: THE PERCENTAGE INCREASE IN THE PRIMARY MARKETING OBJECTIVE OF A BRAND ADVERTISING CAMPAIGN, MOST OFTEN DEFINED IN TERMS OF THE CLASSIC PURCHASE FUNNEL – LIFT IN AWARENESS, ATTITUDES, FAVORABILITY, PURCHASE INTENT, OR PREFERENCE.

U-T U R N S RELEVANT METRICS COULD ACCELERATE GROWTH


FIG 4. ADVERTISERS’ MOST APPROPRIATE METRIC VS.METRIC PUBLISHERS REPORT MOST OFTEN

GROSS RATING

POINTS (GRP)REACH

RESONANCEBRAND LIFT

AD SERVER IMPRESSIONS

CLICKTHROUGH RATE

ADVERTISERS: MOST APPROPRIATE METRIC

PUBLISHERS: WHAT I REPORT MOST OFTEN


This absence of relevant reach metrics leaves both brand advertisers and

agencies in serious doubt of mobile networks and publishers’ audience

claims. Only three percent of advertisers and six percent of agencies

“strongly believe” claims to be able to reach a specific mobile audience

(Fig 5). The majority of advertisers (55%) and agencies (54%) surveyed

are uncertain or outright disbelieve audience reach claims, potentially

hampering future growth of the medium. Media sellers’ verification

of such claims with the right metrics could go a long way in easing

concerns and capturing mobile spend. Sixty percent of advertisers and

69 percent of agencies said that the “ability to verify that my mobile

advertising was actually delivered to the intended audience” would lead

them to increase their use of mobile advertising.

FIG 5. MEDIA BUYER VIEWS OF MOBILE AUDIENCE REACH CLAIMS

ADVERTISERS AGENCIES

3%

42% 39%

13%

3% 6%

40% 36%

15%

3%

STRONGLYBELIEVE

SOMEWHAT BELIEVE

UNCERTAIN SOMEWHATDISBELIEVE

STRONGLY DISBELIEVE


ADVERTISERS AGENCIES

There is a great opportunity to dispel a lot of this confusion and grow

the mobile medium by all parties involved with a campaign—advertiser,

agency and media plan participants—using relevant brand lift metrics

to calculate mobile ROI. Reflecting that this is their biggest mobile

pain point, 62 percent of advertisers and 57 percent of agencies say

the “ability to verify that brand advertising created the desired result

(e.g. increased brand awareness)” will lead them to increase their use

of mobile advertising (Fig 6). Media sellers need to provide the metric

advertisers are looking for – brand lift. Those who do will have the upper

hand in capturing dollars from those advertisers on the fence about

whether mobile ads achieve their desired end.

FIG 6. ABILITY TO VERIFY THAT BRAND ADVERTISING CREATED THE DESIRED RESULT WILL LEAD TO INCREASED MOBILE ADVERTISING USE

62% 57%


YOU HAVE ARRIVED AT YOUR DESTINATION

RE ACHWHO IS

VIEWING MY ADS?

THE THREE “R” QUESTIONS THAT LEAD TO THE SOLUTION

RESONANCEHOW DID MY

CAMPAIGN INFLUENCE

THEIR OPINION?

RE AC TIONWHAT IS THE ROI ON MY MOBILE AD

SPEND?


Nielsen has the recipe for successful marketing and media strategies. We call it the 3R’s – Reach, Resonance and Reaction. Simply put, effective marketing and advertising reaches your target audience, influences their opinion, and ultimately impacts their buying behavior.

Advertisers who accomplish this maximize the return on their marketing investment, and media companies who can help advertisers accomplish this on their properties maximize their sales.

As you can see, the study showed that it is increasingly difficult for advertisers and media companies to measure the performance of advertising consistently across media. In fact, up to 30 percent of marketing dollars around the world are wasted because the message doesn’t reach or resonate with the intended audience. Nielsen’s solutions allow marketers, agencies and media companies to decipher how target audience’s exposure to their marketing and media shapes brand perception and purchase behavior, and thus understand and influence consumers’ path to purchase.

Using reach, resonance, and reaction data, customers can confidently allocate budgets and inventory, develop superior creative and content, and plan, measure, and optimize individual programs – across any platform, device, and advertising model. Trusting in technology built on real data science, advertisers, agencies and media companies are able to develop the best strategy to connect content with consumers and, ultimately, consumers with commerce to maximize sales.

RE ACHTV RATINGS

ONLINE CAMPAIGN RATINGS

DIGITAL PROGRAM RATINGS

RESONANCENIELSEN MOBILE BRAND EFFECT

RE AC TIONNIELSEN BUYER

INSIGHTS

MOBILE PERCISION MARKETING


RE ACHFrom TV to tablets, Nielsen helps you reach the right audience and

measure that reach. We identify, quantify and compare the audience

your advertising campaigns engage across all platforms, providing

a true understanding of your return on investment (ROI) – and we

provide these insights, before and throughout the campaign, to

enable you to optimize your reach.TV RATINGS

ONLINE CAMPAIGN RATINGS


NIELSEN HAS THE SOLUTION FOR EVERY STAGE OF MOBILE MARKETING

MOBILE REACH: WHO IS VIEWING MY AD?

MOBILE TV RATINGS

Linear TV Program Viewership

ONLINE CAMPAIGN

RATINGS

Digital Campaign Audience


Dynamic TV Program Viewership

PRIMARY METRICS

Reach

Frequency

GRP

Unique Audience

PRIMARY BENEFITS

Understand your Content Audience

Set Audience Guarantees

Optimize Ad Inventory


MOBILE TELEVISION RATINGS IS AN AUDIENCE MEASUREMENT TOOL FOR TV NETWORKS TO UNDERSTAND RATINGS FROM VIEWERS ON MOBILE DEVICES.

RE ACH

HOW IT WORKS:

ONLINE CAMPAIGN RATINGS IS AN AUDIENCE MEASUREMENT TOOL THAT MEASURES EXACTLY WHO IS EXPOSED TO A DIGITAL CAMPAIGN BY REACH, FREQUENCY AND GRP.

SINGLE SDK TAG &

WATERMARK

COUNT & ASSIGNViews and

Demos

CALIBRATE CALCULATE Reach,

Frequency, GRP

REPORT Live+7 Schedule

WHAT IT HELPS YOU DO:UNDERSTAND ALL VIEWERSComposite and Hispanic Audiences Reported

MEASURE ADDITION TO STANDARD VIEWINGLive, Live+SD, Live+3, Live+7

SELL INVENTORY BASED ON TOTAL AUDIENCELinear Advertisements placed in front of mobile viewers

HOW IT WORKS:

NIELSEN TAG

COUNT & ASSIGNViews and Demos via Facebook

CALIBRATECross-Platform Homes Panel, Mobile Survey

CALCULATE Reach,

Frequency, GRP

REPORT Overnight

WHAT IT HELPS YOU DO:UNDERSTAND AUDIENCE DELIVERYIn-flight reach, frequency, GRP and on-target rate

MEASURE AD VIEWABILITYPartnership with Integral Ad Science

SET AUDIENCE GUARANTEESMeet realistic benchmarks


RE ACH

DIGITAL PROGRAM RATINGS IS A TV-COMPARABLE MEASUREMENT FOR DIGITAL PUBLISHERS TO UNDERSTAND THEIR PROGRAMMING AUDIENCE ACROSS SCREENS.

HOW IT WORKS:

SINGLE SDK TAG

COUNT & ASSIGNViews and Demos via Facebook

CALIBRATE CALCULATE Reach,

Frequency, GRP

REPORT Daily

WHAT IT HELPS YOU DO:UNDERSTAND PROGRAM VIEWERSHIPIn-flight reach, frequency, GRP and on-target rate

SET AUDIENCE GUARANTEESPredict campaign benchmarks to be proven by Nielsen OCR

OPTIMIZE AD INVENTORYCompare ad pods and form for optimal campaigns


RESONANCEAdvertising effectiveness isn’t just about reaching the right audience,

your message must also resonate with them – influence their opinion,

affect their propensity to buy, or provoke another desired action.

Whether you want to prove your brand-building potential or improve the

performance of your advertising campaign, we know you don’t want to

wait weeks for post-campaign analysis. That’s why Nielsen provides real-

time brand effectiveness metrics to measure the impact of your mobile

advertising throughout the duration of your campaign.

NIELSEN MOBILE BRAND EFFECT

MOBILE RESONANCE: HOW DID MY CAMPAIGN INFLUENCE THEIR OPINION?

NIELSEN MOBILE BRAND EFFECT

Influence of Mobile Campaign

PRIMARY METRICBrand Lift

(Awareness, Attitudes, Favorability, Intent, Preference)

PRIMARY BENEFITSUse brand-relevant metric to measure campaign effectiveness

Optimize campaign performance in-flightMaximize advertising investment


RESONANCE

NIELSEN MOBILE BRAND EFFECT IS A BRAND ADVERTISING EFFECTIVENESS SOLUTION THAT ALLOWS MARKETERS TO MEASURE AND OPTIMIZE CAMPAIGN IMPACT IN REAL-TIME TO MAXIMIZE RETURN ON ADVERTISING SPEND.

HOW IT WORKS:

NIELSEN TAG

SERVE CONTROL/EXPOSED

GROUPS SURVEY

COLLECT RESPONSES

REPORT Real-Time

WHAT IT HELPS YOU DO:IMPROVE PERFORMANCEOptimize brand lift metrics in real-time

COLLABORATIVELY OPTIMIZECollaborate with media partners around the same data to maximize performance

UNDERSTAND AD INFLUENCEConsumer intent to purchase and brand preference


RE AC TIONOnce a consumer is reached and engaged with a message that

resonates, the ultimate goal is to create a consumer reaction that

increases sales and maximizes your return on investment.

Nielsen can gauge consumer reaction and determine if, and how,

advertising resulted in a consumer behavior change. Our analytics

show you the critical connection between media exposure and purchase

activity, identify relevant messages and impactful channels, and clearly

determine advertising effectiveness.

NIELSEN BUYER INSIGHTS

MOBILE PERCISION MARKETING

MOBILE REACTION: WHAT IS THE ROI ON MY MOBILE AD SPEND?

NIELSEN BUYER INSIGHTS

Sales Impact

MOBILE PRECISION MARKETING

Reaching Key Audiences

PRIMARY METRIC

Sales Lift

PRIMARY BENEFITS

Quantify ad impact on sales

Understand audience purchasing behavior

Find new prospects


REACTION

COLLECT NIELSEN

PANEL DATANielsen TV Audience behavior

LOOK-ALIKE MODEL

Applied to Nielsen

panel data

DATA EXCHANGE

Mobile IDs acquired from Cross Platform Matching Partners

SELECT MOBILE

AUDIENCESBased on campaign objectives

NIELSEN BUYER INSIGHTS IS A MEASUREMENT TOOL THAT MEASURES THE IMPACT OF ADVERTISING ON ACTUAL SALES.

HOW IT WORKS:

MOBILE PRECISION MARKETING IS A MARKETING TOOL THAT ENABLES THE ABILITY TO REACH A DEFINED AUDIENCE WITH ADVERTISING BASED ON THEIR OFFLINE BEHAVIORS.

MATCH Connect ad exposures

to consumer transactions

COMPARE Exposed versus

Unexposed individuals

MEASURE Offline and online

sales impact

REPORT

WHAT IT HELPS YOU DO:QUANTIFY SALES IMPACTMeasure effectiveness based on total and incremental sales

IDENTIFY KEY SALES DRIVERSUnderstand audience behaviors driving sales

GET COMPETITIVE CONTEXTUnderstand the impact on your share of category sales

HOW IT WORKS:

WHAT IT HELPS YOU DO:INFORM MEDIA DECISIONSDeliver the right message to the right people at the right time

FIND NEW PROSPECTSEnhance your audience understanding

CROSS-PLATFORM PERFORMANCETie digital advertising to television viewing


METHODOLOGYThe methodology of the survey referenced in this report was

commissioned by Nielsen U.S. digital marketing and media

professionals and conducted by Digiday in October 2013 on

attitudes and approaches to mobile advertising. Participants were

contacted via email and asked to self-identify as an advertiser,

a mobile publisher or advertising network, an agency or trading

desk, or “other” (Fig 7.). Respondents who identified with

the first three categories were posed questions suited to their

classification. Results were summarized and cross-tabbed to

identify consistencies or inconsistencies in each classification’s

viewpoints regarding current practices and intent for mobile

advertising in 2014, and what developments might contribute to

the growth of the medium.

FIG 7. SURVEY RESPONDENTS BY CATEGORY

16%14%

ADVERTISER

AGENCY OR TRADING DESK

MOBILE PUBLISHER OR NETWORK

OTHER36%34%


ABOUT NIELSEN Nielsen Holdings N.V. (NYSE: NLSN) is a global information and

measurement company with leading market positions in marketing

and consumer information, television and other media measurement,

online intelligence and mobile measurement. Nielsen has a presence in

approximately 100 countries, with headquarters in New York, USA and

Diemen, the Netherlands.

For more information about the various Nielsen services and solutions

highlighted in this report, please contact Darren Ellis at

[email protected].

Need more information about mobile? Visit our website,

www.nielsen.com, today.

Copyright © 2014 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 14/7479

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