Unlocking the Power of Mobile

Mobile marketing might soon be the norm, offering marketers both challenges but also increase efficiency and ROI

Methodology
Using the same methodology as Initiatives international study Unlocking the Power of Mobile, we asked the opinion of 800 Romanians using a CATI (computer assisted telephone interview) data collection tool to investigate and to learn about their mobile Internet usage in Romania and explore the implications and opportunities for marketers. The study focused on people aged 16 to 45, living in urban areas who use mobile Internet on their mobile phones. People using their mobile phones only for e-mail access or as modems were not considered eligible for the study, as this does not qualify as mobile Internet content consumption or mobile Internet access. According to the National Readership Survey, the percentage of 16 to 45 year old Romanians, living in urban areas with mobile Internet is cca. 17%. At the same time, various sources estimate the smartphone penetration in Romania at cca. 12%. The difference can be accounted for in the non-smartphone handsets that have incorporated browsers allowing Internet browsing and even installation of applications. The study Unlocking the Power of Mobile has been implemented so far in eight other countries: US, UK, Italy, Sweden, Australia, South Korea, China and India, and now also in Romania.

Unlocking the Power of Mobile

It is estimated that the number of internet-enabled phones in use worldwide will reach more than 1.8 billion by the end of 2013, which would mean that the mobile phone will replace the computer as the most popular device for web access. Consequently, in many parts of the world mobile communications have become an integral part of peoples lives and reached a stage where they are an indispensable tool for both socialization and managing our daily lives. But where is Romania in this picture? According to various sources, mobile phone penetration in Romania is around 120%, down from about 140% two years ago, which is indicative of a fairly developed market reflecting how important mobile communication has become. However, this is true only when basic mobile usage is considered. Despite the level of mobile penetration, it is estimated that in 2010 fewer than 100 brands were advertised through mobile marketing campaigns, compared to more than 16,000 brands communicated through traditional forms of media. In 2011, Romanians concerns are more with the number of minutes and text messages they receive bundled within their subscription or prepay packages. Data services are seen as add-ons, and not as stand-alone products, whilst phone features such as brand, design and camera resolution are generally more important for Romanians when buying a new mobile phone.

However, Romania does not have any problems with the availability of new technologies, the difference comes from the way the technology is adopted and used, usage patterns tend to follow those of traditional media rather than fully utilizing the full potential that mobile offers. Initiatives study explores the current level of mobile development in Romania, assesses the relationship between mobile Internet usage and Romanian consumers and explores the ways in which we can unlock the full potential of the power of mobile communication.

what are PeoPle doing on their Mobiles?

BReAKDowN of USAge By ACTIvITy

OTHER

GAMING

5%

2%

SMS

19%
DATA

VOICE CALLS

43%

31%
Which features of your mobile handset do you use most frequently?

internet access via Mobile: the statUs qUo

one of the first things noticeable within the results is that almost half (49%) of respondents have at least two mobile phones that they use on a daily basis, which would suggest, unsurprisingly, that mobile Internet users tend to also generally be heavy mobile phone users. In Romania we found some significant differences amongst mobile Internet users than compared to our international study. for Romanians, the primary function of making voice calls represented 43% of total mobile phone usage, higher than the 37% internationally. At the same time, the biggest difference in usage was for SMS messaging, where in Romania 19% of the total mobile phone activities were for SMS compared to less than 5% internationally. 31% of the total mobile phone activities of Romanian respondents is dedicated to data services (be it mobile Internet or e-mailing) which is considerably lower compared to the international 49%. Internationally, US consumers are the heaviest users, with 78% using their handsets to access the mobile Internet daily. Romania falls slightly below the international average of 65% daily access, with 58% of respondents accessing on a daily basis, and two thirds of them accessing multiple times per day. However, Romanians only spend on average 18 minutes per day on mobile Internet, which is less than half of the international average of 37 minutes, meaning far less exposure in terms of mobile Internet content. Demographically, Romanian mobile Internet users tend to be younger, with 56% of our respondents falling between the age of 16 to 24, and only 11% being between 35 to 45 years old. This is opposite from the international findings where the majority of mobile Internet users are over 25 years old. generally these findings suggest that Romanian users are not at the same level of development as internationally where the findings of the study indicate that phones are perceived as powerful hand held computers that also allow for voice calls, but here the primary usage is still voice calls.

Mobile vs coMPUter
ToP INTeRNeT ACTIvITIeS By DevICe

e-mail access

online search reading general news maps online search

e-mail access

instant messaging

videos viewing & downloading

music listening & downloading social networking searching for accommodation and leisure music listening & downloading social networking

reading general news

travel services

travel services

image upload & sharing maps

videos viewing & downloading

music upload & sharing

Mobile internet & other Media

The usage of mobile Internet has not come at the expense of overall Internet access. for 69% of Romanians mobile Internet did not affect other forms of Internet usage (51%) or actually helped to increase their overall Internet usage (18%). This reflects the macro trend where mobile Internet is growing into a viable communication platform capable of complementing existing media channels. This is also clearly visible in the fact that mobile Internet access is also an activity that takes place in parallel with other forms of activities or media consumption. 60% of Romanian respondents are listening to the radio while accessing mobile Internet (as opposed to 50% in the international study). However, this level of multi-tasking is still not as prevalent as internationally. only 17% of Romanians watch Tv whilst accessing mobile Internet, whereas internationally this was as high as 50%. At the same time, 39% of International users would access mobile Internet whilst also accessing Internet through a computer, reflecting the different tasks that they use the mobile Internet for as opposed to computer in Romania, this figure is not quite as high, but 30% of users access both types of Internet conections at the same time. Activities most likely to be performed via mobile Internet as opposed to a fixed connection - are of a functional nature such as accessing e-mail, online search for information, getting directions from online maps, reading the news as well as activities meant to kill time (socializing and gaming). The main benefit of using a mobile connection unsurprisingly is to remain connected when a fixed connection is unavailable (62% of the respondents consider that mobile Internet provides instant information wherever they are). It is worthwhile mentioning that for three quarters of the respondents, better functionality is the main attribute of fixed Internet connections that make them preferred over mobile connections. with a relatively small number of websites offering mobile-friendly versions, there is a general lack of awareness regarding the benefits that an optimized mobile version of a website has to offer. The benefit with the highest awareness is better functionality (26%), followed by easier navigation (25%) and faster loading speed (20%).

Live streaming, price comparisons, uploading/sharing files, gaming, banking, reviewing products, augmented reality, voIP are activities that are all technically possible using the mobile Internet but with a negligible level of usage (3%).

SMS

implications for marketers The best way to make use of the potential and momentum offered by mobile Internet is by challenging the current usage pattern where mobile Internet is perceived as a mobile alternative to the home computer. Marketers must realize that mobile technology is a tool for permanent communication, socialization and content delivery and seeing it as a portable alternative to a home computer discounts its full potential. whilst it might not be easy, the best approach at this time is to offer possibilities and choices instead of just asking or waiting for the consumer to act. This should happen in order to educate the user in the possibilities and benefits that can arise from adopting mobile technology in a more social rather than strictly functional model. Also, advertisers and online publishers, both content creators. should necessarily look into creating as soon as possible optimized mobisites along with their traditional websites in order to effectively engage those who use mobile Internet with an increasing number of occasions during the day.

Mobile aPPlications: is it More than jUst gaMes?

In Romania only 24% of respondents have paid in order to use a mobile application, significantly less than the 75% of the international respondents who did the same. At the same time, 69% of Romanian respondents have downloaded and installed mobile applications, compared to 80% internationally, suggesting that the need and interest is roughly the same but the propensity to buy apps is currently much lower. 82% of respondents have at least one mobile application installed on their handset, suggesting that Romanians are either not yet interested or educated towards customizing their mobile handset or are generally satisfied with the applications pre-installed by the mobile phone manufacturer. This is also reflected in the Romanian consumers reluctance to pay for mobile applications, of those who had paid for an app, 71% of them paid up to 5, whereas in the US 35% who paid for an app paid more than $15 (cca. 10). for those respondents who do use applications, they spend an almost equal amount of time using applications as they do using their mobile browser. games, music applications (players, streamers etc.), gPS and navigation applications have by far the highest penetration level (at least 70% of the Romanian respondents have one). Unsurprisingly, the most intensively used applications are those for social networking, as well as practical applications which offer information on the weather and important news (over 50% usage). whilst the latter category has a functional reason for people to stay up-to-date in real time, the fact that social networking applications have a penetration rate of 52% and a rate of daily usage of 61% is a sign that users are increasingly using the mobile Internet as a portable alternative to the fixed connection. In the international study, social networking and news & weather applications are also amongst the most used together with the games and music applications which in the Romanian study fall into the second tier (ranging from 30% to 50% usage).
Games 36% Music 49% GPS & Navigation 30% Planning & Organizing 39% Social Networking 61% News & Weather 58% Instant Messaging 46% Travel & Maps 27% Video 41% Sports 38% Lifestyle 19% Gimmicks 49% Shopping 22%
Have this kind of mobile application Ratio of those who use it at least once a day (from the ones who have it)

PeoPle Mostly hear aboUt aPPs throUgh friends and faMily

general internet search

friends & family

55%
poster advertising
5%
radio advertising
2%

35%

blogs & social networks

7%

through an app store on a mobile handset

6%

newspaper or magazine advertising

4%

online reviews
4%

television advertising

visiting speci c app comparison websites

18%

6%

How do you usually find out about a mobile app?

A special case of application type are the gimmicks (those such as quotes or jokes of the day, horoscopes, make your own avatar, etc.,) which, although they have a reduced penetration (12%), enjoy a relatively high level of daily usage (49%). This could also be an indication of an evolving mobile Internet user who uses the mobile handset for entertainment. At the same time, mobile shopping is still undeveloped at the moment, with only a 6% penetration for shopping applications. Information & awareness about mobile applications come primarily from friends and family 55% (which is the primary source in the international study as well), followed by Internet search 35% (39% internationally) and mobile applications aggregator/comparison websites (18%). Applications stores in Romania are not a popular way of finding out about mobile applications, with only 6% of the Romanians using them as opposed to 37% of the respondents in the international study. Mobile applications have an important role in the relationship between users and the brands that endorse them. one third of respondents that have at least one application downloaded on their mobile handset have made their choice through trusting the brand that endorsed it. Moreover, when it comes to social networking and shopping applications over half of the respondents expressed more appreciation towards the brand sponsoring those apps.

implications for marketers Mobile applications have great potential and are an easy entry point into consumers lives. Moreover, the marketer as owner or endorser for an app has a good chance to impact the consumer in a meaningful manner by offering the consumers useful tools and relevant content which can lead to a valuable brand engagement experience. Keeping this approach relevant, useful to consumers, fun & easy is critically important. Also, mobile applications need to be advertised. Moreover, marketers must take into consideration what type of application to create and whether the created application can truly facilitate the delivery of the message and its comprehension.

content PUlling and Mobile advertising

when it comes to soliciting messages via mobile, a third of respondents have opted to receive messages or other types of alerts from commercial companies, and three quarters of them open and read these messages. when brands communicate to consumers on their mobile phones, Bluetooth technology seems to be a good choice (its considered to be attention grabbing, attractive and capable of offering a pleasing experience for 20% to 30% of the respondents). Mobile banners are also a good way to gain attention (22%), followed by MMS (20%) but both are considered to be not particularly pleasant or attractive. geo-location mapping leads in terms of attraction with 38% and is considered to be useful in giving users ideas about products and services in the area by 21% of the respondents. 11% of respondents consider mobile coupons to be good for providing new ideas about products and services they could purchase, while only 9% of respondents consider coupons capable of gaining attention. one third of respondents declare they have been exposed to mobile web banners and 44% of respondents think mobile banners are not disruptive to their mobile Internet experience and browsing, which is very encouraging for using mobile display as a media option. 38% of respondents have received unsolicited text/image messages from companies at least once. 45% of respondents received messages from companies they subscribed to. while 23% of the respondents receiving unsolicited messages consider they receive too much, just 8% of the respondents receiving solicited messages have the same opinion. Advertising embedded in mobile games and videos is considered to be the most annoying form of advertising, whilst none of the respondents consider that full screen ads appearing when loading a web page are annoying. At the same time, 28% of respondents consider audio ads delivered as a jingle to a voicemail recording can be useful in persuading them to buy a certain product or service.

In terms of mobile advertising embedded within applications as an option for reducing the cost of the application the tolerance for advertising is directly related to the price of the application. for example, 36% of respondents would pay the full price of an application to have it without advertising if the application is priced under 1 while only 8% would do the same if the application would cost more than 25. This is a similar trend found in the international study as well.

implications for marketers A consequence of users perceiving mobile media as being the anytime, everywhere variant of traditional media is that mobile advertising might face the same level of resistance to persuasive messages like advertising on traditional media. However, unlike classical media advertising, mobile advertising has greater opportunities in timing, targeting and contextualization, which increases the possibility to deliver the most relevant message in the right place & in the form that the consumer is open to receive.

Mobile internet for search, shoPPing and PayMent

implications for marketers Targeted search as a phenomenon derived from a mobile lifestyle prompts the need for advertisers to be available on mobile Internet, mainly in the area of product/service description and pricing. Also, together with targeted search there is a strong possibility to increase the level of mobile purchase and payment by familiarizing the consumer with the benefits of those methods.
generally, when it comes to using mobile Internet to search for information, using the mobile phone for targeted search has a 25% higher likelihood than computer based targeted search, whilst computer based Internet is used more for general Search. In the international study, this figure is similar indicating that objective needs tend to be the same when it comes to info-search, no matter the general level of mobile Internet usage. only 10% of respondents have used pay-by-mobile platforms (through SMS) at least once and for the majority (68%) the amount paid was less than 10. This is one of the areas where Romanians are lagging behind other countries, as for example, 32% of US users are purchasing using pay-by-mobile platforms. However, it should also be noted that this is influenced by technical limitations. Currently, in Romania the full potential of mobile Internet is not at the same level as in the other markets surveyed, there is still a general perception of mobile Internet being simply a mobile version of the fixed Internet connection. However, already 21% of respondents would choose mobile Internet exclusively versus a fixed Internet connection & when this is combined with an increase in smartphone penetration along with a growing awareness and usage of mobile Internet sites & applications, the opportunities for marketers to unlock the full power of mobile communication are enormous.

essential takeoUts for Marketers

1 2 3 4 5 6

Mobile is no longer a tool for the future or one addressing only tech-savvy youngsters. Mobile can help you tap into a rapidly growing universe that has above average spending power and is generally less responsive to traditional media.

Marketers should consider using mobile in their marketing and communication strategies, but first they need to define the role of the mobile component.

Adding mobile to an integrated campaign, alongside traditional media and especially digital media, will improve the synergy of the overall communication investment and will provide immediate interactivity and potential response, so delivering a multiplier effect on the results.

Push SMS/MMS should be used in moderation and smartly. Two-way messaging and content pulling offers a greater opportunity for customization and contextualization while satisfying the interest of the consumer.

Mobile Internet offers great opportunities but the solutions should be integrated across all communication disciplines. education is key in helping consumers discover a simpler, more personal way of fulfilling their needs.

Mobile marketing has the potential to reach those audiences where traditional media struggles to deliver.

about initiative Initiative (www.initiative.com) is a media communications company that transforms media exchanges into marketing results through a commitment to performance. Initiative believes that all marketing should be performance-driven. Data, analytics, insight and innovation are central to all our services, and we hold ourselves fully accountable to client business goals. This commitment to performance is the heart of Initiatives unique process and culture. Owned by the Interpublic Group, Initiative is part of media management group Mediabrands and a partner of Magna, IPGs centralized media negotiation entity. Initiative employs more than 2500 talented professionals, working in 91 offices across 70 markets, worldwide. Initiatives comprehensive range of performance-led communications services include: research and insight, media planning and buying, digital communications solutions, content creation, and evaluation and accountability services.

For more information about the findings in Unlocking the Power of Mobile or to discuss how Initiatives mobile solutions can help your business, please contact: Steve Dallas Managing Director - Initiative T + (4021) 301 01 00 E steve.dallas@ro.initiative.com Raluca Negoita Group Marketing Director - Initiative T + (4021) 301 01 00 E raluca.negoita@ro.initiative.com Initiative Romania 17 Ceasornicului Street Bucharest - 1, Romania