Smartphones More Effective for Ad Campaigns

February 4, 2011

smart-campaign-effectiveness.JPGCompared to feature phone users, smartphone users are most impacted by mobile campaigns, according to the December 2010 SMART Report from Millennial Media. Millennial Media analysis indicates this discrepancy is likely due to larger screen sizes and rich media offerings of smartphones.

Smartphones Have Biggest Edge in Mobile Ad Awareness

Direct comparisons show that smartphones are an especially superior vehicle for advertising compared to feature phones in the area of mobile ad awareness, or capturing customer attention. Smartphone campaigns have 39% effectiveness in this area, about 39% more than the 28% effectiveness of feature phones.

In addition, smartphones are 30% more effective than feature phones in the area of unaided awareness (17% compared to 13%), and 25% more effective in purchase intent (15% compared to 12%).

Telecom Claims Top Q4 Mobile Ad Vertical Spot

millennial-top-10-ad-verticals-q4-10-feb-11.JPGTelecom claimed the number one spot in the Q4 2010 top 10 advertising verticals. Millennial Media analysis shows that during the holiday season, multiple carrier brands and device manufacturers doubled their mobile buys, utilizing a combination of broad and targeted reach strategies to create awareness of new mobile devices, namely Windows Phone 7 devices.

Retail & restaurants moved up one spot from Q3 2010 to the number two position in Q4 2010 and experienced explosive growth of more than 572% year-over-year. Retail & restaurant advertisers leveraged mobile to drive foot traffic with store locator as the primary post-click
campaign action.

Also experiencing explosive year-over-year growth was the automotive vertical (623%), which jumped from number eight in Q3 2010 to number five in Q4 2010. Millennial Media says mobile websites and applications created by automotive brands are extremely robust and enable customers to conduct research, identify retail promotions, find a local dealership and schedule vehicle service appointments.

Traffic to Site Leading Q4 Campaign Destination

millennial-campaign-destination-mix-dec-10-feb-11.JPGTraffic to site represented 49% of the campaign destinations during Q4 2010. According to Millennial Media, advertisers are investing in their mobile sites with features and functionality as robust as their online sites. For example, the travel vertical is is launching full-service mobile sites which allow customers to research and transact on the go.

Meanwhile, custom landing page was the second-most-popular campaign destination in Q4 2010 with a 2% increase quarter-over-quarter, representing 35% of the impression share. Telecom brands created custom landing pages to promote the release of new products, services and holiday promotions.

Targeted Audience Reach Remains Popular

smart-campaign-mix-dec-10-feb-2011.JPGTargeted audience reach campaign methods (GEO, demographic, behavioral audience and audience takeover) continued to resonate with advertisers in Q4 2010 with 43% of campaigns leveraging these targeting methods.

Broad reach methods (run of network, custom subnet and channel) represented 57% of the campaign targeting mix in Q4 2010. Millennial Media data shows that dating, entertainment and telecom leveraged these methods to increase awareness of new products and services during the holidays, a peak advertising time.

Demographic, Behavioral Audience Most Popular Targeted Audience Methods

Demographic as a targeting method experienced the largest quarter-over-quarter growth of 5% and represented 42% of the targeted audience mix in Q4 2010. Restaurant brands with new menu items and various retail advertisers leveraged demographic targeting to effectively achieve their diverse campaign goals.

Meanwhile, behavioral audience represented 19% of the targeted audience reach in Q4 2010, a 4% increase quarter-over-quarter. This targeting method allows advertisers to customize their message to a customer who is known for engaging with similar products or brands. Travel brands targeted moms and business traveler segments with convenient booking tools to and a popular beverage company targeted college students with a new product campaign.

Mobile Retailing on the Rise

Consumers are using mobile phones for retail-related activities at an increasing level, according to a new study from ForeSee Results. The US edition of the “ForeSee Results Report on Mobile Shopping” indicates that 33% of all survey respondents had accessed a retailer’s website using a mobile phone (compared to 24% in 2009), and an additional 26% said that they plan to use their mobile phone to visit a company’s website, mobile website, or mobile application in the future. In other words, more than half of all online shoppers are either already using or plan to use their phones for retail purposes.

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