New Study Shows Reward-Based Mobile Advertising Improves Brand Engagement and Loyalty With Consumers

BOSTON, MA--(Marketwired - Jun 17, 2013) - Mobile consumers are more receptive when brands offer value in exchange for their time, says new research report Exploring the Role of Value in Mobile Advertising. The study, conducted by Millward Brown, in partnership with SessionM, a mobile loyalty platform and advertising network, is a continuation of Millward Brown's 2012 U.S. AdReaction Report: Marketing in the Mobile World. The AdReaction study found that although favorability toward mobile advertising was, on average, low, brands have the opportunity to break through by offering more tangible value in their marketing content. To explore this further, SessionM partnered with Millward Brown to study, in depth, the role of value and rewards in mobile advertising.

"Through the AdReaction Report we know that consumers want brands to provide valuable and rewarding ad experiences, and this study helped us break down exactly what that means," said Joline McGoldrick, Research Director at Dynamic Logic, Millward Brown's digital practice. "The findings present marketers with a tremendous opportunity to deliver mobile ad experiences in line with consumers' expectations, enabling them to effectively break through to mobile consumers."

The study revealed a value exchange equation that consumers use to assess mobile advertising and found that they were more likely to engage when brands offered them tangible value in exchange for their time and attention.

"Mobile advertising experiences that create a more balanced consumer experience -- ones that respect time and provide a useful outcome -- open the door of receptivity and have a positive impact on the brand," added Jayne Dow, Director of Qualitative Research and Digital Innovation at Firefly, Millward Brown's global qualitative practice. "This simple truth has powerful implications in improving the perception and effectiveness of mobile advertising."

Reward-based mobile advertising is one answer to value exchange equation. Specific key findings from the report include:

• Rewarded audiences are over twice as likely to interact with brands. After seeing an in-app ad, 34 percent of rewarded users clicked or interacted with an ad, compared with only 15 percent of mobile users who had not participated in reward-based advertising.
• Receiving a reward expands a consumer's consideration set. After seeing an in-app ad, 26 percent of rewarded users considered purchasing a brand, compared with 18 percent of mobile users who had not participated in reward-based advertising.
• Not all reward-based advertising is created equal. When using a reward-based advertising strategy, there are some things to keep in mind. Ninety-two percent of mobile users report it's important they choose the reward they receive, and 68 percent of users prefer to know for certain they will get a reward, rather than be surprised. Users also prefer rewards that are tangible and have an element of choice in how they're spent.

"Engaging consumers on their mobile devices has been a clear challenge marketers have faced with no clear solution," said Deborah Powsner, Vice President of Marketing & Consumer Insights at SessionM. "Our study with Millward Brown, 'Exploring the Role of Value in Mobile Advertising,' not only reveals the impact of reciprocity within the mobile space, but more importantly why and how it can work effectively. Our advertisers have experienced success when leveraging this approach and we're excited to present the opportunity for every brand to transform their relationship with consumers."

Mobile marketers interested in further background on the study can visit the SessionM insights blog.

For further information on the 'Exploring the Role of Value in Mobile Advertising' study please contact: Sara Beaty (sara.beaty@dynamiclogic.com).

Methodology
Millward Brown conducted both quantitative and qualitative research for this study. Quantitative research surveyed two groups: 500 members of the general mobile population and 500 members of SessionM's audience. Respondents for the qualitative research included 25 members of SessionM's audience. Qualitative research was conducted through one week of blogging on IdeaBlog and 12 one-hour interviews.

About SessionM
Founded in 2011 by industry veterans of mobile technology companies, SessionM has built an innovative mobile loyalty and advertising platform that connects consumers with mobile content and advertising in fun and rewarding new ways. Clients include some of the most notable developers and advertisers in the world, including Viacom Interactive, The Weather Channel, Demand Media, PepsiCo, Universal, Volvo and Unilever. SessionM is funded by Charles River Ventures, Highland Capital and Kleiner Perkins Caufield & Byers. The company is part of the iFund initiative at KPCB. SessionM is headquartered in Boston with offices across the country. For more information on SessionM, visit www.sessionm.com.

About Millward Brown
Millward Brown is a leading global research agency specializing in effective advertising, strategic communication, media and brand equity research. Millward Brown helps its clients build strong brands and services through a set of comprehensive research-based qualitative and quantitative solutions. Millward Brown has 82 offices in 52 countries. Its specialist practices include Dynamic Logic (the global leader in measuring digital marketing effectiveness, Firefly (MB's global qualitative network), The Neuroscience Practice, and Millward Brown Optimor (Millward Brown is part of Kantar, the insights, information and consultancy division of WPP.