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Mobile leads to better campaign results: Study

Want to improve your campaign performance? Increase your mobile spend. Marketers can easily get better results for their campaign without going over the budget, just by raising their mobile spend, a study commissioned by Coke in China found.

Currently, the optimal spend for mobile is between 8-15 per cent. This is based on total campaign spend, not just digital.

“Because we strive to develop the world’s most innovative and effective marketing, we knew we had to fully understand and leverage mobile’s ability to drive the future growth of our business. Based on the results for China, as well as the study we conducted in the U.S., 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,” said Tom Daly, Group Director, Global Connections, at The Coca-Cola Company.

In terms of ROI, mobile offered nearly double over TV and was twice as efficient in driving sales compared to the campaign on average. When mobile spend is at eight per cent of the total budget, it drives seven per cent of the profit and at 15 per cent, it drives 16 per cent.

Videos on mobile are around three times more effective than those on TV or digital videos. This was a greater increase than even the strong trends seen for mobile video in the U.S. studies.

Display ads on mobile drove purchase intent, while mobile social drove both purchase intent and engagement.

The study highlighted that the optimised mobile spend level is 15 per cent, impacting sales even further and producing a double-digit profit increase.

“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. We applaud Coke for their leadership and commitment to figuring out the true ROI of their marketing spend and aligning to consumers’ dramatic move to mobile for content, community and commerce,” said Greg Stuart, CEO of the Mobile Marketing Association (MMA).

Talking about the role mobile plays, Rohit Dadwal, Managing Director of the MMA in Asia Pacific, said, “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. 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 spend. 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 mobile.”

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.