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Measuring mobile effectiveness with POEM

Michael Vitello's picture

For retail clients with the objective of increasing sales, it can be a challenge for media agencies to prove the contribution of media to their overall sales, and therefore the ROI of their media investment. Unless there is a way to connect offers through media (for example, unique promotional codes) directly to the tills, econometric modelling of sales results can be as elusive as the Holy Grail.

However, it can also be a barrier to innovation — why take the risk with new media channels when we know that digital display is yielding a strong ROI? For our client Pizza Hut, we wanted to ensure that their mobile activity could be tied back to a return on investment measurement without falling back on standard econometric modelling which may not fully reflect the value of mobile.

But innovating to stand out from other casual dining restaurants is important in this category. So, in order to tap into the opportunities mobile advertising can provide, we needed to give Pizza Hut the confidence to try out mobile media at minimum risk to their bottom line.

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Starcom’s bespoke modelling technique – Paid Owned Earned Modelling (POEM) – lets us build a holistic view of each element of a campaign, showing not just a direct measurement of each media channel, but how different elements work together with one another. This provided the means of testing Mobile’s overall contribution to sales, which secured Pizza Hut’s buy-in.

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We knew that:

  • Our Pizza Hut audiences (Mums and Sociables) are increasingly connected through their use of mobile
  • These audiences actively seek out restaurants from their mobile
  • These audiences are also heavily influenced by offers, even when on-the-go. Therefore, providing these consumers with a relevant Pizza Hut Restaurant offer via their mobile is something they will not only react positively to but act on and go in-store!
  • This understanding of consumer behaviour identifies Mobile as a crucial communication and engagement device for Pizza Hut

Instead of letting customers search for restaurant offers and locations, we brought Pizza Hut Restaurant offers and locations to them via SMS. Our strategy was two-pronged:

  1. Making sure our audiences are aware of Pizza Hut’s offers relevant to them on key dates for Pizza Hut.
  2. Capitalising on the opportunity to convert low hanging fruit – O2 customers within 250m of a Pizza Hut restaurant. Messages were time-targeted to promote the most relevant offer

By building a partnership in the truest sense with O2, we were able to minimise risk to Pizza Hut and remove the barrier to Mobile.

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The mobile element of the campaign proved to be was 142% more efficient in delivering incremental sales revenue than the campaign average, with the majority of mobiles impact in directly driving sales (90%).

Bringing together out of home and mobile

Steve Smith's picture

Starcom MediaVest London’s CEO, Stewart Easterbrook, took part in a panel at a MediaTel event this morning, ‘The union of out of home and mobile’

The research shows that out of home experiences that explicitly incorporate and leverage mobile are likely to increase purchase funnel actions, conversations across communities, and brand equity.

Over half of UK adults now own a smartphone, and around 86% of smartphone owners regularly go online via their phones (Ofcom 2013). This, together with the fact that out of home has the second highest monthly reach behind TV, means that 16% of adults report using their mobiles to search the web partly as a result of out of home ads in the last month (Outdoor Media Centre). Clearly, search and brand sites need to be mobile optimised.

Searches resulting from out of home can also result in purchases. Thirteen percent of adults have bought because influenced by OOH advertising in the last month (OMC). Brands should look to see how they can increase likelihood of purchase through search, for example by showing local stockists and local deals, and through couponing.

Bringing mobile and out of home together also provides an opportunity to engage higher value customers. Young, mobile, affluent, connected and urban individuals are most likely to buy because of out of home. Forty four percent of 16-24s report having made purchases because they have been influenced by out of home media (OMC).

However, mobile activities should not be just about enquiry and purchase. Brand owners need to look to see how they can extend brand experiences through mobile, for example by using mobile to continue a story started on out of home. A partnership between Bing and Jay-Z to promote his autobiography is a good example of how this can be done.

Emotion is one of the biggest drivers to brand funnel and further media actions, and brand owners need to create out of home and mobile content that are likely to have emotional impacts. Fifty six percent of adults have had a positive emotional response to an out of home ad in the last month, closely followed by TV (OMC). Recommendation is the most common action by these people, followed by increases in brand equity.

Brand owners should also use mobile and out of home to drive talk and social media conversations. Ten percent of adults share (online or offline) something about an OOH experience per month (OMC). According to our Community Igniter research, 18% of people use out of home as a media source for at least one of their conversations.

Until recently, out of home advertising has been off limits to mobile phone activities on the London Underground. However, opportunities to engage people at some popular underground stations are now opening up due to Virgin Media, Vodafone and O2 opening up Wi-Fi hotspots in them. These provide the chance to target and engage higher value people, but connecting needs to be simple and easy. As with other locations, content needs to be compelling and people need to be given relevant reasons to undertake further activities on mobile.

QR codes and near field communications have had a lot of coverage in the media. However, QR codes show little sign of success in most campaigns, and people are more likely to manually search on their phones instead, due to high barriers to using QR codes. More phones now have NFC chips, but they don’t have scale, there aren’t many opportunities for people to use them, and research shows that most people see no or only little value in them.

Instead of QR codes and NFC, brand owners need to look at simpler ways of engaging people. I really like the partnership between Boots pharmacy and Weetabix. Weetabix recently ran a TV ad that encouraged people to take a photo of the ad and then go into a Boots store to get a discount.

Some apps are available that can extend a brand experience such as Aurasma, through which people can download additional content when a person points it at an image, such as an out of home ad. However, it has a small user base and it is not always simple to use.

Google Now is an emerging technology. This tracks people to give them ‘the right information at the right time’. There may be opportunities around out of home, for example tracking people who pass posters for particular ads that can then be used for better targeting and tracking of subsequent online behaviours.

Online key to building overseas retail growth

Steve Smith's picture

Research just released by OC&C Strategy Consultants in collaboration with Google predicts that online sales from outside the UK will grow seven fold from £4bn generated in 2012, to £28bn in 2020.

In 2012, overseas online sales from British companies accounted for just 14% of the total.

Already, British brands Asos, Burberry and Topshop receive half their traffic from overseas. According to Google, the majority of non-UK searches for UK retail companies originate in Europe, followed by North America and Asia.

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Much of the growth in international online retail from British companies will be due to rises in the number of people using smartphones and tablets to do online shopping from abroad. Eleven percent of retail revenues in the US came from mobile devices during 2012, and eMarketer predicts this will grow to 15% in 2012. It is possible for the UK to take a significant proportion of this growth in the coming years.

There are two clear benefits to UK retailers using online to build international business. Firstly, online provides a significantly more affordable, speedy and efficient medium for reaching out to customers in international markets, than the costly planning, investment and administration that building bricks and mortar involves. Secondly, online provides significant flexibility. By understanding where traffic originates in real time, UK online retailers are able to move quickly to meet international customers’ needs. And as demand goes through cycles of rises and falls in particular markets, then online retailers are able to shift their attention to other markets.

Why brands should embrace multi-screening

Steve Smith's picture

Nearly half of smartphone owners (48%) and well over three quarters of tablet owners (80%) regularly use their devices whilst watching TV (InMobile and Mobext 2012).

These figures are considerable and even worrying to some brand owners. Yet it is easy to forget that television viewers have always given themselves to different tasks whilst the television is on, from going out to the kitchen to make a cup of tea during the ad break, to talking on the phone or even grannies doing the knitting whilst watching Coronation Street.

Unlike these activities, additional screen behaviours provide brands with further opportunities to create engagements with people. One of these is around facilitating complementary behaviours. Just over one fifth (22%) of simultaneous usage is complementary to the TV content or ads being shown (Google 2012), and up to 40% of tweets in the UK during peak TV times are about TV (Second Sync/Twitter 2013).

Still, this one fifth of simultaneous usage leaves a considerable amount of multiple screen activities unrelated to content on the TV. Yet rather than seeing this as a threat to advertising brands, brand owners should grasp the opportunity to provide compelling reasons for these people to talk about them and undertake advocacy, enquiry and purchase behaviours.

To do this, brand owners need to understand and facilitate people’s motives for doing complementary activities. These include interacting with or influencing content, seeking additional information about content and ads, wanting to analyse content further, and connecting with other viewers (Google 2012).

In terms of enquiry, online search is an obvious activity. During September 2012, SMG, London, ran a TV ad for a client, that included a search based call to action. The following chart shows the spike in the search term during the ad. Interestingly, over half of all searches came from mobile.

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Twitter is a key medium some people use for discussing content. By adding social elements to TV ads, brand owners are able to stimulate people to discuss ads online, steer conversations, and quantitatively measure interactions.

One of the key challenges Twitter throws up is around how likely is your content to lead to conversations? Twitter underscores the demand that brands and advertisers create relevant and meaningful TV content that people therefore want to talk about. For this reason, Twitter is one tool advertisers should use for gauging the currency of their content (caveats around Twitter users accepted). If you look at your TV content and think a Twitter hash tag isn’t justified, or if you use a hashtag that results in few uses, it is more likely that you need to rethink that content rather than rethink Twitter. Unfortunately however, when some brands have seen very little use of their hashtags on Twitter, they have either dismissed Twitter or said that it is only useful for particular brands or brand categories.

Another mistake is when brands have attached a Twitter hashtag to an ad almost as an afterthought, without really thinking about what they want to achieve. On the other hand, brands that have developed a strategy behind using Twitter are more likely to achieve success. For example, Audi has achieved high engagement through the hashtag #ProgressIs, which it has used in its ads since the Super Bowl 2011. By encouraging people to complete the slogan, it underlies the value of having a call to action that people find compelling.

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Mercedes created deeper engagement by asking viewers to vote for the next stage of a TV ad storyline on Twitter. The brand saw a greater lift in brand metrics compared with a similar Mercedes ad that had no voting interaction – up to 44% higher (ITV and Essential Research 2012). Strategically placing the ad during X-Factor - in which people vote for contestants - drew upon people’s already existing frame of mind for participation in a social event.

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An argument to come from some brands is that Twitter users don’t currently form part of their target market, and so they don’t use it. For example, average ages of premium car brand owners such as Audi and BMW are well over 40 years old, whereas Twitter users are on average much younger.

However, TV ads for considered brands such as cars are likely to be the first touch points for many Twitter users. With Twitter integrated into them, there is the chance that some people will start a longstanding relationship with a brand that will result in a purchase. Twitter integration into TV ads for such brands may also result in new aspirational fans who will become brand advocates. In such cases, it is important that brands use Twitter as one element in an ecology of touch points through which they continue to uncover the brand story.

For less considered brand categories such as food and household products, opportunities are most often around driving purchase. A soap powder brand’s sponsorship of The Only Way is Essex saw a higher purchase intent among people who tweeted about the show and who were exposed to the brand’s sponsored tweets, than people who were not exposed (ITV and Essential Research 2012).

Brands have also used TV ads to drive competitions on Twitter. During late March and into April, Argos ran a TV ad that was primarily about click and collect, but also incorporated a competition. People who used the hashtag #WinDadsCamera had a chance of winning a new camera.

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Competitions such as these can be good at raising brand awareness. But although they may achieve headlines among marketers, they often do little to engage people in deeper interactions with the brand or to stimulate people to converse about it. In fact, our own social media research shows that running straightforward competitions like this is one of the lowest value actions a brand can do. A more engaging competition might have been for Argos to ask people to upload a badly taken photo to show why they need a new camera.

In summary, these are six recommendations about using Twitter on the back of TV ads:

  1. Use Twitter as a tool for gauging the currency of ad content to viewers
  2. Have a strongly developed strategy for integrating Twitter into TV ads. What do you want to achieve?
  3. Understand the characteristics and needs of your intended audience, and their motives for second screening
  4. Calls to action in ads should prompt conversations, interactions, or actions that require more involvement than mere re-tweeting
  5. Considered brands should see Twitter as an opportunity to engage people as part of a much longer purchase funnel than for less considered brands, and use Twitter help create aspirational brand advocates even among non-brand purchasers
  6. Use Twitter as one component among different media to tell connected brand stories

We originally wrote this article for Media Tel's Connected Consumer

Opportunities develop for Boots as demand for photo prints drops

Steve Smith's picture

It seems that mums using smartphones is proving to be both a blessing and challenge to high street retailers.

On the one hand, mums are using their phones to find the nearest stockist of an item they are interested in buying. A recent Google report shows that 17% of people who have searched on their mobile phone in the previous two weeks had visited a store as a direct result.

On the other hand, mums taking photos on their smartphones has led to a reduction in photo printing. Only last year, Boots closed 160 of its photography labs due to falling demand.

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These closures and likely underuse of photolabs that remain open throw up the question of what Boots could replace these spaces with?

One answer is to look at the demographics and lifestyles of people shopping at Boots. 59% of people who have visited Boots in the past four weeks are women. Of these, 60% are mums, and over half have visited a cafe at least once in the last month (Touchpoints 2012).

With competitors such as Mothercare and other high street retailers like Waterstones opening up in-store cafe formats, using some of these spaces as cafe areas would help keep mums in-store, and give them space to relax and catch up with other mums.

In-fact, keeping mums in-store would help Boots overcome another challenge posed by smartphone use – mobile ‘blindness’ when approaching the checkout. For years, many brands could depend on bored mums waiting in the checkout queue to pick up a product or magazine, get engrossed in an article, and toss it into their baskets.

These days, mums are more likely to send a quick text and check their Facebook feed whilst in the queue. Retailers such as Boots need to uncover opportunities to engage shoppers elsewhere in the store for checkout purchases. In-store cafe formats might just be one solution.

Mobile search ad spend more than doubled in 2012

Steve Smith's picture

The IAB has just released its 2012 UK digital ad spend survey of major media owners.

Search made up 58% of 2012’s £5.416bn worth of ad spend (£3.168bn).

This proportion is the same as last year, but it is when we look at mobile search spend we see a real difference. Of the £526m spent on mobile, mobile search formed a significantly higher 69%. Impressively, this represents an increase of 164% over 2011.

This reflects some of the opportunities of which brands are taking advantage around people’s mobile behaviour:

  • People use mobile to search wherever they are. One third of mobile searches take place out of home.
  • People fit mobile search around their routines. 81% of mobile searches are driven by ease and convenience.
  • People act after using mobile search. 28% of mobile searches lead to store visits, purchases or telephone calls. 45% of all mobile searches are goal-oriented.
  • Mobile searchers convert quickly. 55% of purchase related conversions occur within one hour of the initial mobile search.

Data source: Google/Nielsen Life360 Mobile Search Moments Q4 2012

Mobile Update #42

Michael Vitello's picture

Mobile Search is hot this week. And as you may have guessed, the local aspect of mobile search is crucial. The Mobile World Congress reinforced this trend a few weeks ago in Barcelona by highlighting the local nature of mobile devices and their potential when it comes to Health, life emergencies, etc.

This is also true for advertising. Brands want to build an effective mobile presence, hence why it becomes essential for marketers to be able to prove the ROI of mobile. More importantly, a strong mobile ROI would be hugely driven by a local search strategy and nowadays it is critical to measure it beyond just mobile commerce results.

Mobile truly assists in-store sales and drives real and tangible value for a brand via location advertising (specifically local searches). This means that clients and agencies need to investigate further and develop new ways of measuring value generated via their mobile strategy.

Adidas for example, a leader in the sporting goods industry, has recently worked closely with its US agency (iProspect) to put the necessary efforts in place to show how a mobile campaign can effectively assist in driving sales directly in store. They went far beyond classic mobile measurement: “We had to look at things a different way, using different data points; pulling pertinent information from the adidas retail stores, plus relevant industry data, we developed a unique way to report to the client an applied conversion rate,” said Sinclair, Client Services Director, iProspect.

To get a taste of how we should think of measuring mobile moving forward, have a look at the below video:

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Local advertising spend on mobile to reach $1.9B this year: report

Date, 18th March 2013

Mobile local advertising spend will reach $1.9 billion in 2013 and is expected to surpass online local advertising spend by 2017, according to a new report from BIA/Kelsey. The mobile portion of local advertising spend is expected to reach $6.4 billion by 2017 while the online portion will total $6.3 billion, according to the report.

"Click here to read full article"

Mobile’s immediacy effect: Half of mobile search conversions happen in one hour

Date, 13th March 2013

In this era of mobility, our smartphones are always with us, keeping us connected anytime and anywhere. With this constant connectivity, we’ve come to expect information (literally) right at our fingertips just a search away - whether it’s locating the nearest sushi restaurant or booking flights for your upcoming trip.

"Click here to read full article"

This is a snippet- read the full post.

Retail update: Argos, Morrisons and Giraffe restaurants

Steve Smith's picture

Three interesting news items over the past 24 hours that we thought we would report on amid Retail Week's Live conference.

First up is that Tesco has bought the Giraffe chain of restaurants for £49m. In a sign of just how much Tesco non-food sales are moving online, a spokesman for the supermarket said the move will use up some of the space in its big stores currently given over to non-food.

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The supermarket also hopes that its purchase will make its stores more attractive places for families and lengthen in-store time. By broadening its proposition, this is a kind ‘mall-ification’ of Tesco, in which a variety of propositions are on offer, from food through to electronics, clothing, music, video, restaurants and cafes.

Second up is that Morrisons is going to appoint Kiddicare chief executive Scott Weavers-Wright to help lead its online grocery offering, due to launch next year. It is understood he will work alongside the managing director of Morrisons food online Simon Thompson who joined the grocer from Apple last year.

According to Retail Week, Morrisons plans to open a dark store in Yorkshire to supply shoppers with online orders before opening a dark store in Greater London after that.

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Third up is news that Argos has just reported like for like sales’ increase of 5.2% in the eight weeks to 2 March. Demand for tablets was a significant driver to this. Tablet purchasers will only increase online shopping even further. Just to demonstrate this, internet sales accounted for 43% of total sales. Mobile sales rocketed by 117%.

This shows why supermarkets need to do non-food online sales and not just online grocery. Tesco is already very successfully doing this. But it looks like just as Morrisons is about to enter the online grocery market, it is going to be left behind in the online non-food market.

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On the rise of couch commerce

Steve Smith's picture

Once upon a time, if we wanted to shop at home we had to browse through product catalogues, choose what we wanted then send our order through the post. A week to ten days later, our new kettle or pair of trousers would arrive. By then we had forgotten we had ordered it in the first place.

Now we have a plethora of shopping options we can access to through our smartphones and tablets, greatly facilitated through Wi-Fi.

Such is our love of using our mobile devices in front of the TV that tablet use peaks in the evenings, and even overtakes smartphone use at the weekends (Touchpoints 2012). Eighty percent of tablet owners regularly use them whilst watching TV, and just under half of smartphone owners do so (InMobile 2012).

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The impact of TV on couch commerce shouldn’t be underestimated. A quarter of people who regularly search on their smartphones have done so in the last two weeks because of a TV ad. And just in case you are concerned that couch commerce impacts TV ads, research shows that people using tablets are more likely to stay for ad breaks than people not using a device, and there is no significant difference in ad recall (Thinkbox 2012).

To take advantage of couch commerce, brand need to make sure they include calls to action in their ads, such as what terms to search for and even incentives for doing so there and then.They should also look to encourage social media interactions. SMG London Research shows how supermarkets’ Christmas TV ads led to significant uplifts in Facebook engagement. Research by Twitter shows Twitter integration can increase brand equity by up to 44%, and promoted Tweets can drive purchase intent significantly.