Mobile devices have achieved their reach of 100 million American consumers 11 times faster than the internet did. What's powering this revolution? Only the most productive, engaging, and entertaining devices ever created, and, to top it off, you can take them with you wherever you go. We hear the word "addiction" a lot in reference to mobile phones. Users report a need to begin and end their day with their phone and admit having an addiction to them -- whether for gaming, texting, connecting with a community, or accessing endless information. For marketers, there is a real opportunity to engage with consumers in this personalized, highly interactive environment.
According to Mary Meeker, partner at Kleiner Perkins Caufield and Byers, consumers have already shifted a whopping 23 percent of their media consumption to mobile devices. At Jumptap, we're seeing mobile click-through-rates that are double and triple internet click-through-rates. What does this shift to mobile mean for marketers; in particular, consumer packaged goods (CPG) marketers? It means there is not only an opportunity, but a necessity, to focus on mobile, to engage with, learn from, and market to this highly engaged audience.
According to the IAB, CPG was the third largest spending category in mobile in 2011, behind finance and auto, and spending far less than those industries. How can CPG marketers better capitalize on the advertising potential of this promising, but challenging industry? For one thing, by developing effective creative that maximizes the potential for mobile engagement.
Creative is a true differentiator in mobile. The heightened interactivity of the mobile user increases their expectations for the ads they see; therefore, online ads converted to mobile ads will not always make for a successful campaign. Mobile ads allow for a level of engagement not possible in TV, radio, print, or even online, and enable brands to expand their customer relationships. With the right ad execution, particularly in HTML5 rich media, brands can create a unique and participatory experience for the consumer. In fact, engagement rates for CPG marketers using HTML5 average 17 percent, according to rich media mobile advertising and analytics company Celtra. It's not only user attention that advertisers can seek; it's the time consumers spend in the ad unit. According to Medialets Q1 2012 data, consumers spend around 20 seconds with mobile rich media ads, and campaigns that incorporate features like games can push time spent with the ad above one minute.
For CPG marketers, rich media ads can take multiple approaches. Two of the most popular are Informational and Entertaining. Informational ads may have a goal of making the busy mom's day easier by putting relevant information at her fingertips. For example, a food marketer might offer nutrition information, recipes, a shopping list, or local store locator. HTML5 can even incorporate all of those in one easy to navigate unit that allows the user to personalize her experience. Personal care brands might incorporate baby care guidance, allergy alerts, sun protection tips, or even advice on applying lip liner.
The other approach is Entertaining; providing consumers with a fun brand experience. Games are the number one category for app downloads on iPhone and Android devices. Matching the users' mindset of playing games on their device can position the brand as fun, tech savvy, and relevant. Brands targeting teens, young adults, gamers, or even moms may find consumers eager to engage with their ad. With a rich media partner, brands can design a simple game that aligns well with the brand's fun image. All rich media ads can incorporate video, social sharing, contests, and more.
With both of these approaches, the HTML5 ad is the destination, relieving CPG marketers of the need to link to a brand web site. This is helpful when a brand doesn't have a mobile site or prefers not to send consumers to it. Since most brands have a Facebook page, they often choose to direct users there instead. Adding elements within the ad that encourage social sharing on Facebook and Twitter help deepen customer relationships and extend a brand's message.
When not utilizing HTML5 rich media, marketers can incorporate a dynamic landing page as their destination from a standard ad. The landing page can deliver a sight, sound, and motion experience, or offer a weekly circular ad or play a video. The options with mobile advertisements are virtually limitless.
Mobile advertising heightens brand awareness
What else should CPG marketers and their agencies keep in mind when planning for mobile? According to an analysis by Dynamic Logic, "the average mobile campaign has a positive impact on the five traditional brand metrics, especially ad awareness, and significantly outpaces online brand metrics." Marketers and their mobile partners will undoubtedly continue to test ad effectiveness and should consider comparing mobile directly to online advertising, within the same ad campaigns. Results from tests like this can help determine media mix and the correct balance between online and mobile media.
Test, learn, and explore
Emerging channels, such as today's mobile media, offer exciting, but challenging new methods for CPG brands to reach and engage with their targeted consumers.
Mobile already offers CPG marketers access to 100M+ consumers who are eager to engage with smart marketing. So now is the time to allocate a reasonable budget, build a mobile-specific strategy, and start gaining insights into better, smarter, bigger mobile advertising.
Diane Rinaldo is category director at Jumptap.
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