The value of Mobile in the Mix
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The SMOX study, conducted by Marketing Evolution, evaluates the impact of mobile marketing in telecom campaigns, revealing that reallocating marketing budgets towards mobile can significantly enhance campaign performance without increasing overall budget. Specifically, the study found that mobile, despite receiving only 1% of the AT&T campaign budget, delivered nearly twice the awareness impact per dollar compared to TV, suggesting an optimal allocation of 16% for mobile. Additionally, insights indicated that targeted creative strategies could further amplify mobile effectiveness, particularly among specific demographics.
The value of Mobile in the Mix
- 1. The Value of Mobile in the Marketing Mix SMoX.me research Case Study – Telecoms Conducted by: Marketing Evolution Insight Express May 2014
- 2. About SMoX The SMoX study is the first of its kind designed to test real marketing campaigns to determine the relative economic value of investing in mobile compared to other channels. While the study generates multiple insights into the impact of specific media channels, the ultimate goal is to provide an optimized level of mobile spend that increases a campaign’s ROI without increasing the budget. Using breakthrough methodology developed by Marketing Evolution, an independent research firm, the SMoX study provides marketers with a clear understanding of the competitive advantage of an optimized media channel mix that takes full advantage of mobile’s power to get closest to the customer. 2 8/26/2014 “There is no doubt that there is a major competitive opportunity for marketers to figure out how to use mobile effectively and where to shift budgets for an optimized media mix. At its core, SMoX proves the concept of “same budget, better results” – with very limited effort, brands can increase the performance of a campaign by simply reallocating funds. Who wouldn’t want to do that?” Greg Stuart, Global CEO, MMA
- 4. The Campaign In late 2013, AT&T launched a marketing campaign for its customizable brand of Moto X smartphones. The campaign used TV, print, online & mobile, allocating its media budget as shown on the table below. AT&T’s objective was to maximize the awareness of the new device and to better understand the role of mobile in that specific campaign. As such, the SMoX study examined the impact AT&T’s campaign had on its KPI of building brand awareness for the new device among the over 18-year-old demographic, for a six-week period from September to October. Methodology The research study surveyed consumers who had been exposed to AT&T’s Moto X marketing campaign, which ran between Sept. 17 and Oct. 28. Employing a single-source panel to capture the effectiveness of mobile and other channels, the study used regression analysis to understand the point of diminishing returns for cross-media and thus determine the optimal allocation of mobile (and other media) in the marketing mix. 4 8/26/2014
- 5. Results: Mobile at 16% At 92 percent of the campaign budget, TV drove most of the impact (awareness for the new device offering). However the SMoX study revealed that mobile, which consumed just 1 percent of the campaign budget, delivered nearly twice the impact per dollar spent compared to TV. Based on the data collected and the analysis conducted, the study determined that the optimized allocation for mobile should have been 16%, up from only 1%, which was the actual allocation of mobile in the campaign. This reallocation to Mobile would have changed the attitudes of an additional 2.5 million people with the same budget, therefore raising awareness for the new device by +12%. To put things in perspective, this is close to the total population of the city of Chicago. 5 8/26/2014 For every dollar spent on mobile, three people were impacted (became aware of the device offering from AT&T); whereas for every dollar spent on TV, around 1.5 people were impacted.
- 6. Same Budget, Better Results To summarize, these first results from SMoX prove the concept of “same budget, better results” for mobile, thus illustrating a big opportunity for brands to increase the performance of a campaign by reallocating funds to mobile.
- 7. Other Insights In addition to proving the concept of “same budget, better results”, the SMoX study also revealed opportunities to further increase mobile’s impact by optimizing against the right creative and target groups. Specifically, the study found that mobile was more effective in driving awareness of Moto X among men, so the results could have been up to 70% stronger with the right targeting among that demographic group. Additionally, the study also found that one of the mobile banners (banner size A) performed 2.5 times better than the average, underlining the importance of investing sufficient time and resources to develop and test the right creative for mobile. Implications For several years now studies have shown that consumers devote a large and growing portion of their media time to their mobile devices. While this information has helped marketers appreciate mobile’s potential, no study has documented mobile’s value as a channel in the marketing mix. Thus, marketers have been left guessing how much of their budgets should be devoted to mobile versus other, better tested, and more traditional channels. With these first results the SMoX study provides marketers with tangible evidence about the value of mobile in the marketing mix and sets the foundations to cover this industry need. A series of SMoX studies is now underway aiming to cover a cross spectrum of industries, geographies and marketing goals and thus help marketers use mobile more effectively. 7 8/26/2014 Banner Ad Size A Banner Ad Size B
- 8. Our Special Thanks We would like to thank the following companies who have invested significant resources and expertise to make this project successful. We would also like to thank our partners for their valuable contributions: 8 8/26/2014
- 9. For more information please contact: Vassilis Bakopoulos Head, Industry Research, MMA vas@mmaglobal.com