Mobile marketing is top driver of sales: MMA study

17 Aug,2015


By Labonita Ghosh


Corporates, if you haven’t been paying much attention to your mobile marketing spends, here’s a compelling reason to do so. The Mobile Marketing Association (MMA), a global non-profit with more than 800 member-companies from 50 countries, conducted a recent study for the Coca-Cola in China, which is something of an eye-opener.


The study — on Smart Mobile Cross Marketing Effectiveness (SMoX) – shows, among other things, that mobile marketing offered nearly double the RoI than TV, and was also twice as efficient in driving sales, compared to the campaign on an average. And also that if you spend about eight per cent of your total budget on mobile spends, you are likely to see that drive seven per cent of profits. Correspondingly, a 15 per cent spend would drive 16 per cent of profits.


In short, the findings, released in Shanghai last week, confirm that marketers would significantly improve their overall campaign performance without increasing budget, by simply raising mobile spend. According to the study, the optimal spend for mobile (based on total campaign spend, and not just digital) currently hovers at 8-15 per cent. Mobile marketing is broadly defined as including advertising, apps, messaging, mCommerce and CRM on all mobile devices, including smart phones and tablets.


The study also showed that mobile video emerged as significantly more effective compared to both TV and digital video (by around 3x). This was a greater increase than even the strong trends seen for mobile video in comparable research in the US. Moreover, mobile display drives purchase intent, while mobile social initiatives drive both purchase intent and engagement. According to SMoX, therefore, optimised mobile spend level is 15 per cent, impacting sales even further and producing a double-digit profit increase.


“With empirical data, the SMoX study with Coca-Cola in China, demonstrates the impact of mobile on a business and its competitive opportunity in this region, similar to what we have observed in the United States—but with even better results,” said Rohit Dadwal, Managing Director of the MMA in Asia Pacific. “It is a great data set for marketers to reassess and optimise their spending with the most impactful allocations in their marketing mix, while leveraging mobile with double-digit spends. As an industry, it is time we learned the effectiveness of the channel to aid marketers with their ambitions, and kept pace with consumers to understand the power of the mobile.”


Greg Stuart, CEO of the MMA, said: “The market has acknowledged that there is a deep chasm between consumer behavior and what brands are currently spending on mobile. But now there is real, indisputable proof on the value of mobile to a brand’s business goals.” Tom Daly, Group Director, Global Connections, at The Coca-Cola Company, added: “Based on the results for China, as well as the study we conducted in the US, we have begun to see a number of truths about mobile that provide a clear path forward, especially around marketing effectiveness. We now have the facts we needed.”


Conducted in combination with Marketing Evolution and InsightExpress, SMoX assesses the economic value of mobile compared to traditional marketing channels and provides brand marketers empirical evidence on the impact of mobile in the marketing mix. The results from China reinforce the findings of the other US SMoX studies: That mobile is a key driver of business results across the entire purchasing funnel. Additionally, the study highlights that mobile, when executed with best practices, impacts performance even further. SMoX applies Marketing Evolution’s unique cross-media attribution modelling approach, leveraging new techniques to provide a granular read on mobile and other media.


The results from this study were seen to be consistent with results from other, recently released studies in the US, with AT&T, Coca-Cola, MasterCard and Walmart. Additional studies are being conducted in U.S., China, UK, Turkey and Brazil.


This first appeared in dna of brands dated August 17, 2015


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