The Holiday Guide

to Mobile
Advertising
Table of Contents

Executive Summary 2

An Introduction to Mobile Advertising for the Holidays 3

Holiday Mobile Advertising Opportunities and Insights 5

Success Stories 13

Mobile Advertising Best Practices for the Holidays 18

Partnering with Microsoft for Mobile Advertising Success 20

 Executive Summary
The holiday season is often a hectic time for both marketers and consumers making it difficult for advertisers to
effectively reach and connect with consumers.

During the holidays, consumers are on-the-go with a significant number

of people turning to their mobile devices to download movie trailers and More than 50 percent of consumers
entertainment applications, research luxury products, use location-based had used mobile phones for in-
services to find nearby stores, find deals and coupons, comparison-shop store holiday shopping activities,
for gifts, check product availability, book travel and make purchases. according to a Motorola study.1

Because consumers are rarely, if ever, without a mobile device, mobile is

the ideal medium to resolve holiday-specific challenges while helping marketers achieve their goals. Additionally,
mobile advertising has unique capabilities such as location and device targeting, leading to a level of interactivity
and immediacy unrivaled by traditional advertising.

Companies of all sizes can benefit from a properly crafted and executed mobile advertising strategy for the
holiday season which starts prior to Thanksgiving and ends post-New Year. For example:

•  Retailers are using mobile advertising to drive foot traffic to bricks-and-mortar locations by offering
coupons and discounts
•  Entertainment companies commonly use mobile advertising to create buzz, drive tune-in for TV shows and
increase movie trailer downloads and generate movie ticket sales
•  Travel companies can use mobile advertising to promote last-minute airline and hotel deals
•  Luxury brands can reach their coveted, hard-to-reach demographic of affluent consumers via rich media ad
units and device targeting

This mobile advertising white paper is designed to assist advertisers craft a

successful mobile advertising strategy for the holidays.

Read on to learn about case studies from holiday marketers such as

Ace Hardware, 20th Century Fox, Hilton Hotels and Tiffany & Co. and
get valuable insights about how to create, deploy and measure mobile
advertising campaigns during the busy holidays.

1. Motorola Enterprise Mobility Solutions December Shopper Study, January 2010.

2
 An Introduction to Mobile Advertising for the Holidays
Mobile advertising is the practice of placing a marketing message, promotion, sponsorship or call-to-action within
various channels and properties that make up the mobile medium including the mobile web, search, applications, text
messaging (SMS), multimedia messaging (MMS), email, voice, Bluetooth and content featuring text, images and/or
video.

The most common methods of mobile advertising are:

•  Display – the inclusion of static, animated and rich media banners within mobile websites, multimedia messages,
video feeds and applications
•  Search – the placing of a company’s sponsored search listing in the mobile web or application at the point of
consumer-expressed need
•  Messaging – the inclusion of a text ad within an SMS, MMS, email or Bluetooth message
•  Voice – the inclusion of audio ads within automated voice services

Brands face many challenges in raising awareness, staying top of mind among consumers and influencing purchasing
decisions during the busy holiday season such as:
•  Traditional media consumption is interrupted as consumers are traveling and often away from their TV or PC
•  With a long shopping list of items to buy and huge lines at retail outlets, consumers need to get more done in
less time
•  Companies of all sizes that have a seasonal business face enormous pressure to meet their revenue goals

To address such challenges, mobile advertising can be a key component of a marketer’s holiday marketing strategy.
With properly executed mobile advertising tactics, brands and retailers can engage their audience in a non-intrusive
manner and generate tangible results in ways that traditional and other new media channels cannot.

Mobile media is a great channel to break through the clutter. It is unique

because you can target your exact audience by demographic, contextual,
behavioral and even location-based targeting. Location-based targeting is
unique to mobile and can be a powerful link to point-of-sale purchase during
the holiday season. Store or product locators, discounts, shopping/wish lists, gift
suggestions, product information or tips can be great mobile tactics to leverage.

- Maria Mandel, Vice President of Marketing and Media Innovation for AT&T Advanced Ad Solutions
(Mobile Marketer, Aug. 11, 2010)

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 The holidays are a critical time for brands to raise awareness, influence buying
decisions, increase consumer loyalty and drive sales of their products via mobile
advertising. With a properly crafted mobile advertising strategy for the holidays,
companies can:

•  Build brand awareness

•  Increase foot traffic to stores
•  Drive sales with last-minute holiday deals and offers
•  Enhance multi-channel campaign efforts
•  Increase customer acquisition and loyalty
•  Stimulate word-of-mouth and social media engagements

Marketers should consider focusing their programs on consumers’ holiday needs through mobile ads that drive
to branded landing pages or microsites emphasizing mobile wish lists, store locators, product descriptions, price
comparisons and gift suggestions.

Mobile coupon campaigns combined with mobile media during the holiday season can be an effective way to
enhance consumer retention and spending. The mobile medium is uniquely suited to address holiday marketers’
challenges because it provides the most immediacy and relevancy and is action-oriented compared to traditional
media.

We really live in a time of attention scarcity and time scarcity, and that is only
amplified during the holidays. Whether it is rich media, apps or bar code scanning,
mobile provides an interactivity and lack of clutter than can really capture attention
at a time when consumers are so bombarded with marketing messages that they
are trained to tune them out. Brands can use mobile to proactively encourage
them to tune back in.

- Paul Gelb, Director and Mobile Practice Lead at Razorfish

(Mobile Marketer, Aug. 17, 2010)

Also, during a time of year when consumers are constantly on-the-go, the one constant that all consumers have with
them at all times is their mobile device.

4
 According to InsightExpress, mobile campaign norms were four-and- Ad Effectiveness
Mobile Ad vs. Online Ad
a-half to five times more effective than online norms. For example,
12%
mobile media outperforms online media in purchase intent (250
10%
percent increase) and brand favorability (95 percent increase) based on
respondents exposed in the study.2
2% 2%
The study used norms developed in online ad testing as a benchmark
to draw conclusions around the performance of advertising on mo-
bile devices. InsightExpress compared the two using InsightNorms, the
company’s normative database containing over one thousand online ad
effectiveness campaigns and over one hundred mobile ad effectiveness
campaigns. Mobile InsightNorms are based on InsightExpress’ flagship
mobile brand effectiveness solution, tMobile AdInsights, which employs
a test/control design to measure the brand impact of mobile advertising campaigns.

Holiday Mobile Advertising Opportunities and Insights

Targeted mobile display, search and text ads are helping companies across vertical industries such as Walmart, 20th
Century Fox, Hilton Hotels, and Tiffany & Co to build brand awareness and turn purchase intent into sales with their
target audience.

In addition, the increasing prevalence of smartphones is changing

the way consumers behave, driving an explosion of usage across the Moreover, mobile advertising
mobile web, applications and search. spending is expected to reach
$1.56 billion in 2013, up from $416
Today, 26 percent of mobile consumers are using the mobile web million in 2009, with the spending
regularly and if they have a smartphone – a phone running iPhone OS, being equally distributed across
Microsoft Windows Phone OS, BlackBerry or Android OS – this number messaging, search and display.3
increases to 80 percent. Forty percent of new mobile phones sold in
the third quarter of 2009 were smartphones or broadband-capable
devices. During the same time period, more people accessed the Internet
from smartphones (52 percent) than regular phones (48 percent) for the first time.4

Mobile Media Consumption by Operating System (3-month average ending September 2009)
News / Info Social
Mobile Media Any App
Browser Networking

Smartphone 80% 65% 59% 43%

Non-Smartphone 26% 14% 13% 8%

Source: comScore MobiLens, September 2009

2. InsightExpress Ad Effectiveness, February 2009

3. eMarketer, Mobile Advertising Forecast, September 2009
4. comScore, MobileLens, Septermber 2009

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 Many seasonal businesses rely on the busy holiday season for a large portion of their annual revenue. In this white
paper, we take a closer look into the mobile advertising insights and learnings from a few selected vertical industries
including retail, entertainment, travel and luxury goods.

Retail
Retailers’ mobile advertising strategy for the holiday season should be informed by the behaviors for which consumers
are already using their mobile devices on a wide scale.

During the holidays, these behaviors are magnified as consumers scramble to find the best deals and the most conve-
nient retail locations as they check-off gifts from their shopping list.

Consumers are accessing their loyalty account via their mobile phones, engaging in mobile search, downloading
coupons, surfing the mobile web for price comparisons while in store, seeking coupons/bargains and shopping for big
ticket items. Attracted to holiday sales and promotions, more consumers are using their mobile devices to find store
locators and directions to bricks-and-mortar locations.

Mobile adds a new dimension to the purchase process by creating a new set of consumer behaviors, such as enabling
real-time product and price comparisons, point-of-sale education and information exchange across digital platforms.
According to a research study sponsored by Microsoft, mobile Internet users are actively engaged in retail-related
activities, such as: 5

•  Reading product reviews – 40 percent of smartphone users use

their mobile phone to search for product information
•  Comparing prices while in the store – 46 percent of smartphone
users use their handset to compare prices while in a store. Addi-
tionally, 44 percent store information on their phones for in-store
viewing
•  Looking up store locations and getting directions – 36 percent
of smartphone users rely on their handsets to look up store loca-
tions
•  Collecting store coupons and engaging in related incentives –
The study found that 29 percent of smartphone users rely on their
phone for finding sales offers and 17 percent use their smart-
phones to search for coupons

Mobile usage is increasing across all age ranges—not just teens and
Generation Y. Mobile adoption is also high among Generation X and According to the Motorola report,
Baby Boomers. Parents’ gift-shopping for their children is a key segment 51 percent of shoppers overall and
to target during the holidays. Moms especially are using mobile devices 64 percent of shoppers ages 18
like never before. There is also a wide spectrum of mobile usage across to 34 used their mobile phones for
levels of household income, from bargain-hunters to the ultra-affluent. in-store shopping-related activities
during the holiday season.6

5. ROI Research, Inc. & Microsoft “Future of Mobile”, November 2009

6. Motorola Enterprise Mobility Solutions December Shopper Study, January 2010

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 This robust consumer adoption of mobile across ages and demograph-
ics creates a great opportunity for holiday marketers that use mobile Nielsen found that 39 percent of
advertising to extend and enhance their traditional holiday promotional consumers intended to use coupons
efforts. Marketers should consider the timing of the campaign and focus last holiday season, while 28 percent
on the lead-up to Black Friday, Cyber Monday, one-day sales and last- planned to buy gift cards or certificates
minute pre-Holiday, as well as take advantage of post-Holiday and New rather than physical gifts. 7
Year’s Day returns traffic by promoting clearance sales.

For example, a big-box retailer such as Best Buy or Walmart can run mobile banner ads promoting a Black Friday sale
that, when clicked or tapped upon, expand into rich media animation or redirect the consumer to a microsite or in-
application landing page.

During the holidays, marketers should consider doing everything possible to maximize their ROI. In fact, mobile can
be a force-multiplier to the marketing mix during this critical time of the year.

For Target, mobile isn’t merely a marketing channel, it is also a service channel. In
addition to promoting products, building brand awareness and engaging guests
with our brand, we view mobile as an important channel to help our guests make
the most of their Target and Target.com shopping experience.

– Sarah Boehle, Target (Mobile Marketer, Dec. 23, 2009)

Mobile advertising combined with mobile apps can be weaved into a compelling solution to drive in-store traffic,
enhance customer loyalty and increase sales through featured coupons and offers.

American Apparel, a vertically integrated manufacturer, distributor and retailer of branded fashion basic apparel based
in downtown Los Angeles, implemented a mobile campaign that allowed consumers to give and receive gift cards via
a Swagg mobile application during last year’s holiday season.

Consumers using the Swagg application were able to buy American Apparel gift cards, share and exchange them with
friends, receive and redeem offers and view loyalty card points or balances.

Consumers could receive personalized offers geared to their individual interests and keep current with their American
Apparel loyalty programs via their handset.

American Apparel’s core target demographic is ages 25 to 34, life-optimizers who are on-the-go and have trouble
keeping track of their money. This core demographic tends to skew female and is slightly more affluent than their
peers—they are college educated or have some college education.

For retailers focused on driving more in-store traffic during the holidays, they should consider providing a mobile
coupon app along with mobile media to maximize awareness and downloads of their free app.

7. Nielsen, Online Holiday Outlook, November 2009

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 Entertainment

Mobile consumers are using mobile to enhance the way they watch movie premieres, tune-in to their favorite TV
shows and how they listen to music or play video games. During the holidays, consumer activity typically increases
as people have more leisure time to get together with family members to go see a movie, catch up on their reading,
listen to their favorite music or attend a holiday concert.

Not surprisingly, mobile Internet users are quite active in entertainment, especially around mobile purchases. Accord-
ing to a research study sponsored by Microsoft, mobile Internet users are actively engaged in entertainment-related
activities, such as: 8

•  Buying goods and services - 34 percent are comfortable making purchases using mobile phone for enter-
tainment
•  Looking up movie times and directions - 34 percent use mobile search to look up movie show times and
theater locations
•  Interacting with mobile entertainment ads - 26 percent recall seeing a mobile ad for entertainment with 16
percent having clicked on a mobile ad

Among mobile Internet users who are very comfortable making purchases What entertainment-related
on their mobile phone, the most popular entertainment related purchase purchases are mobile Internet users
willing to buy via mobile?
was movie/event tickets followed by music, games and video/TV content
respectively. 58%

41%
With media consumption often fragmented during the holiday season, 34%
a multi-screen digital campaign promoting a single message will lead to 24%
greater success. According to a research study sponsored by Microsoft,
reinforcing mobile as one component among multiple media platforms is
beneficial since: 9
Mobile Games Music Movie/Event
Video/TV Tickets
•  46 percent of the respondents use their mobile phone while watching Content
TV, making mobile an indispensible touch-point in the multi-screen Source: ROI Research, Inc. November 2009

strategy
•  53 percent use mobile search to learn more after seeing an ad in another channel
•  33 percent of respondents use both a mobile device and a computer after seeing an ad in another medium

Mobile advertising coupled with other digital or offline advertising can help
reiterate a brand, message or theme across a few platforms for optimal
impact. Being exposed to the same message across media has proven
to help to reinforce an advertising message.

- Jennifer Okula, Vice President of Data Innovation at WPP’s Safecount

(Mobile Marketer, Aug. 26, 2010)

8. ROI Research, Inc. & Microsoft “Future of Mobile”, November 2009

9. ROI Research, Inc. & Microsoft “Future of Mobile”, November 2009

8
 Industry leading entertainment companies such as 20th Century Fox, HBO, Walt Disney, Electronic Arts, Barnes &
Noble and others are engaging their customers where their customers are engaging each other – via mobile devices.

Many film studios, video game software companies, record labels and book
publishers have integrated mobile advertising, sites and applications into their
overall marketing strategy to create buzz around holiday-themed ringtones,
video games, books, movie premieres and Blu-ray/DVD releases. Mobile adver-
tising can be used by entertainment marketers to grab consumers’ attention,
download movie trailers and influence entertainment-related purchases. While
teens and twenty-somethings are a core audience for entertainment mobile
advertising campaigns, more adults are engaging with such campaigns all the
time.

As mobile advertising campaigns become more sophisticated with the use

of rich media, custom applications and mobile video, it becomes harder for SyFy’s rich media mobile ad
consumers to resist the temptation to click or tap on a piece of mobile creative.

A good example of a highly interactive mobile campaign to drive TV tune-in is SyFy’s rich media campaign for the
original series, Warehouse 13.

This rich media mobile campaign, which targeted a young technology-savvy audience and early-adopters, was the
first in-browser unit of its kind, according to Glow Interactive, which designed the ad.

When iPhone and iPad users visited The New York Times HTML5 web site this past July, a 728 x 90 interactive banner
ad appeared for Warehouse 13.

After the ad expands, an interactive wheel appears that the users can rotate between three content sections; trailer
new season, character bios and information about the TV show.

Users are then directed to a mobile-optimized landing page that shows more videos, character and show information,
as well as photos, recent tweets about the show and episode guides, SMS alerts and links to other SyFy applications
that consumers can download.

The rich-media interactive ad for cable television network SyFy garnered more than 2,000 click-throughs on The New
York Times’ mobile HTML5-based web site. The unit achieved a click-through rate of 3 percent and an interaction
rate of nearly 9 percent based on 73,000 impressions, per Glow.

A film studio or TV network could substitute a holiday-themed movie or show for Warehouse 13 and use similar
tactics as SyFy to get people to watch a show’s premiere or go to a theater on a film’s opening weekend.

10. Travel eBusiness Must Champion Mobile Booking Benefits,” Forrester Research, Inc., July, 2009

9
 Travel

The holidays are a period of heavy travel, as consumers book hotel rooms, train or plane tickets, as well as rental cars, in
order to spend quality time with their families, friends and loved ones.

A Forrester study found that 54 percent of online business travelers and 48

percent of online leisure travelers who have web-enabled mobile devices have
used the channel to look up travel-related information such as a flight’s on-time
status, driving directions or hotel room information.10

In the travel context, mobile consumers are increasingly using mobile media to enhance their travel planning and
vacation experience. According to a research study sponsored by Microsoft, mobile Internet users are actively engaged
in travel-related activities, such as: 11

•  Comparing transportation and hotel prices – 46 percent

of smartphone users use their handset to compare prices
•  Shopping at travel outlets – 39 percent of smartphone
users are comfortable shopping at travel outlets that
offer digital travel coupons
•  Making travel arrangements – 26 percent of smartphone
users are comfortable making mobile travel purchases
•  Collect and store coupons and engage in related
incentives – 17 percent of smartphone users use handsets
to search for coupons
•  Interacting with mobile travel ads – 12 percent of
consumers surveyed by Microsoft have clicked on a travel
ad on their mobile phone

Many leading travel companies – Hilton Hotels, Hyatt Hotels, Disney, and Delta Airlines – are consistently making use of
mobile advertising for branding, customer acquisition and customer retention or a combination of them.

Travel companies can leverage a properly crafted and executed mobile

Travelers are using their Web-
advertising strategy during the holidays to increase travel bookings and
enabled handsets to interact with
sales, simplify travel planning and reservations, drive consumers to par-
the hospitality industry. According
ticipate in loyalty programs and to redeem their points and acquire new
to a Forrester study, 18 percent of
customers.
business travelers and 15 percent
of leisure travelers researched hotel
Two sectors within the travel industry that often experience a spike in
availability on their mobile devices
activity are hospitality and transportation. Mobile is making it more
in the past year.12
convenient for both business and leisure travelers to find places nearby
to visit, receive last-minute travel deals and alerts, make travel arrange-
ments and use their mobile browsers to enhance their travel experiences.

11. ROI Research, Inc. & Microsoft “Future of Mobile“, November 2009
12. Travel eBusiness Must Champion Mobile Booking Benefits,” Forrester Research, Inc., July, 2009.

10
 Mobile advertising is being used in the hospitality industry to build A Forrester study found that
permission-based databases. These databases are used to deliver special 24 percent of business travelers
deals and coupons to consumers resulting in higher repeat and referral and 18 percent of leisure travelers
sales. For example, MGM Grand has built qualified databases of respon- looked up a flight’s on-time status
dents to mobile ad campaigns. This opt-in list is extremely valuable, since using their mobile device.13
the churn rate with mobile phone numbers is minimal compared with
email or postal addresses.

Most transportation companies are already using mobile display, search and messaging alert advertising to sell and
promote their perishable inventory. These display, search, in-application or rich media ads expose consumers to great
deals on transportation services that will soon be missed, thus driving up sales that otherwise would be lost.

In addition, transportation companies are using mobile devices to improve customer satisfaction through loyalty pro-
grams or to drive incremental revenue via mobile ticket sales.

For example, Continental Airlines is one of a handful of airlines that offer passengers
the option to check-in via their mobile phone or to use digital boarding passes dis-
played on their mobile device to board the plane.

Continental Airlines rolled out a mobile advertising campaign to generate brand

awareness, create buzz regarding a reduced fare promotion and drive traffic to
Continental Airlines’ mobile site.

To reach its desired audience, Continental ran mobile display banners across premium
content including MSNBC, NBA, NBC Sports and NBC Local Integrated Media, which
Screenshot of Continental
is geotargeted to New York City mobile users. Consumers who clicked on the mobile Airlines display ad
display banners were directed to Continental Airlines’ mobile site where they could
make a flight reservation, check-in for their flight or view their flight status conveniently
from their mobile device.

In addition, InsightExpress conducted a brand awareness study for Continental to measure user perception and
awareness of Continental brand in mobile, and measure user purchase intent on the mobile Internet.

The mobile campaign was successful at driving increases across all brand metrics while engaging business travelers and
consumers with household incomes of $100,000 and up. Purchase intent increased by 22.3 percent and mobile airline
ticket purchase intent went up by 22.2 percent.14

13. Travel eBusiness Must Champion Mobile Booking Benefits,” Forrester Research, Inc., July, 2009
14. Mobile Marketer, Dec. 8, 2009

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 Luxury Goods

Many luxury brands are having success with mobile advertising, and more multi-channel campaigns from luxury
brands will feature mobile advertising during the holiday season.

These luxury brands often target affluent audiences consisting of

adults that have high disposable incomes, enjoy shopping and making Nearly half of the wealthy confess
purchases and are often prestige-conscious. These affluent consumers to dependence on their wireless
are typically focused on fashion trends, brand-name goods and services, companions. Forty percent of
especially ones that would make good holiday gifts or experiences. wealthy men, and 56 percent of
Given the time constraints of their busy lives, affluent consumers rely women, say that their cell phone or
on their high-end mobile devices and seem to be taking the lead in mobile device is the one personal
shopping and buying via mobile.15 gadget they could not give up.16

Based on a report from The Luxury Institute, mobile shopping and

buying activities exhibited by wealthy mobile users were similar to those
of the average mobile user. Both affluent and ultra-affluent mobile users who participated in the survey liked calling
someone about a potential purchase, looked up product and store information or sent a picture/text message about a
planned purchase. Not surprisingly, ultra-affluent consumers were less interested in activities such as price comparison
or security related issues associated with mobile commerce.16

In addition, affluent and ultra-affluent mobile users surveyed appeared

One in five respondents with
to be more likely to make purchases from their mobile devices. The
incomes of at least $150,000 said
most popular items bought via mobile by affluent consumers were
they made purchase from mobile
movie and event tickets, shoes and apparel and consumer electronics
devices at least some of the time,
similar to the general population. For ultra-affluent consumers, they
and among users with net worth of
use their mobile devices to buy high-ticket items such as designer bags
at least $5 million, mobile commerce
and shoes, jewelry and automotive products.18
was even more popular.17

The purchasing power and robust consumer adoption of mobile among

affluents and ultra-affluents create a great opportunity for holiday marketers that use mobile advertising to extend
and enhance their existing promotional efforts.

Luxury brands such as Christian Dior, Chanel, Rolls-Royce, Gilt Groupe, Lacoste, Ralph Lauren and Gucci all have
mobile web sites and most have implemented successful mobile advertising campaigns.

15. eMarketer, How Affluents Use Mobile for Shopping and Buying, August 2010.
16. The Luxury Institute, Wealth Report Newsletter, January 2009. Affluents adults with a minimum household income of $150k. Ultra-affluents are adults with a
minimum household income of $200K and net worth of $5MM.
17. The Luxury Institute, Wealth Report Newsletter, January 2009
18. The Luxury Institute, Wealth Report Newsletter, January 2009

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 For those luxury brands who are interested in leveraging mobile advertising for the holidays, here are a list of factors
to keep in mind when concepting their mobile sites or applications:19

•  Help shoppers find the right product effectively

•  Easy purchase completion
•  Easy fulfillment (e.g. in-store)
•  Differentiated returns policy
•  Mobile capabilities
•  Product presentation
•  Follow up support for complex goods

Success Stories
This white paper focuses on the use of mobile during the holiday season for four sectors—retail, entertainment, travel
and luxury goods—and shows how each benefits from the use of mobile advertising to drive in-store traffic, sales and
customer loyalty.

Ace Hardware Mobile Display Advertising Increases Store Traffic

Ace Hardware and Microsoft Mobile Advertising partnered during the 2009 holi-
day season to drive increased store traffic and keep up with the demand of loyal
customers.

Ace came to Microsoft Mobile Advertising to develop a targeted and comprehensive strategy to reach primarily
homeowners with four distinct offerings. Over the course of the month-long campaign, Ace’s goal was to engage its
loyal users on-the-go and use new media to reinforce Ace’s neighborhood appeal to drive in-store traffic.

Based on in-store promotions, Ace targeted users during the Holiday Sales Series with four distinct promotions:

•  20 percent Off Bag Sale

•  ‘Tis The Season
•  After Thanksgiving Sale
•  Your Holiday Helpful Place

In addition, Ace drove consumers to a branded landing page that contained an assortment of content including in-
store sale information, a store locator, branded videos and a SMS sign-up page for users to hear more about future
promotions.

Microsoft Mobile Advertising developed a targeted media solution that engaged users through behavioral targeting
and displayed media across both the Verizon Wireless Deck and Microsoft’s Windows Live mobile properties.

Mobile display banners ran over a 2 to 6 day timeframe for each flight for maximum brand awareness on MSN Mo-
bile, Windows Live Messenger, Windows Live Hotmail, Verizon Wireless, MSNBC, CNBC, Fox Sports and Wonderwall.

19. Nielsen, Online Holiday Outlook, November 2009

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 Behavioral-targeted media to “Home Improvement Enthusiasts” and “ Tools and Hardware Shoppers” helped rein-
force Ace’s neighborhood appeal to its primary target audience. All media pointed to the Ace mobile web site to
drive further engagement. Through the use of broad media and best-in-class targeting, Ace achieved:

•  60 percent increase in brand awareness

•  14 percent increase in purchase intent over the average mobile audience
•  8 percent lift in consumers planning to visit Ace Hardware nearby

Microsoft Mobile Advertising’s media strategy and comprehensive targeting

capabilities doubled top-of-mind brand awareness, which is significant given
the economic landscape.

- Domingo Gonzalez Ponce, Supervisor, Mobile Strategy and CRM, Horizon

(Mobile Marketer, Feb. 11, 2010)

Avatar Places Mobile at Center of Multi-Channel Campaign

The science-fiction movie Avatar made history as the highest-grossing film

ever, debuting first place on the big screen with $77.3 million in ticket sales on
its opening weekend.

But before Avatar became a multi-billion dollar worldwide phenomenon, the

paradigm-changing 3D film faced the same critical challenge as most other
movies—generating enough buzz to pack theaters.

With an untraditional film to market to the movie-going masses, 20th Century Fox International knew it needed an
innovative approach to digital advertising.

Instead of relying on online advertising alone to reach digital consumers, Fox International partnered with Microsoft
Advertising to launch a multi-screen campaign that would reach diverse UK audiences and engage those viewers
where they lived, worked and played.

On the PC screen, the campaign included a custom-built MSN homepage glider ad and an Avatar-specific Windows
7 Theme—a sponsorship opportunity that offers engagement beyond the desktop with web-connected gadgets,
backgrounds and audio.

On the mobile screen, the campaign leveraged MSN Mobile roadblocks generating over a half of million mobile
phone impressions.

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 And on the TV screen, Xbox Live gamers saw interactive Avatar banners that linked to
the movie trailer, an exclusive movie clip, and exclusive downloadable content.

The multi-screen campaign yielded strong results for Avatar, helping lead viewers to
the box office on opening weekend and contributing to the history-making success of
the sci-fi drama.

Consumers who saw Avatar campaigns on all three screens versus one or two screens
posted the highest ad metrics of any audience tested. Eighty percent of consumers
who saw the Avatar ads on Microsoft properties across all three screens said they “had
heard a lot about the movie” and 75 percent said they “definitely wanted to see the
film.”
Screenshot of Avatar mobile
The campaign drove strong agreement on nearly every brand attribute tested. landing page
Consumers who were exposed to the ads across multiple screens were much more
likely to agree that Avatar was a high-quality and unique film. Those who recalled the Avatar ads felt progressively
better about the ads and were able to recall them more easily as they were exposed to more screens.

Nearly 60 percent of consumers who saw ads on Microsoft properties across all three screens were “much more
excited” about seeing Avatar, compared to 23 percent who were exposed to ads on two screens and 17 percent of
consumers who saw the ads on only one screen.

Similarly, 54 percent of consumers who saw Avatar ads on all three screens said they were likely to see the film com-
pared to 28 percent who saw the ads on two screens and 22 percent who saw the ad on a single channel.

The Avatar campaign on Microsoft properties across three screens reveals a valuable opportunity for advertisers: using
multiple channels to deliver the advertising campaign drives a greater impact than using a single channel.

Consumers who saw advertising across all three screens were nearly three times as likely to go see Avatar as those
who only saw one channel, and nearly half of consumers who saw all three ads went to see Avatar in theaters, help-
ing to make the film a global success.

Hilton Extends Mobile Strategy with 360-Degree Campaign

Last year during the holidays, Hilton Hotels sponsored MSNBC’s revamped mobile platform
via display banners and cobranded rich-media ad units that extended the brand’s mobile
strategy.

The hotel chain took over MSNBC’s entire mobile site using both 300x250 and 300x50 ads. Hilton ran banner ads
semi-exclusively for an entire month and was also a featured sponsor of MSNBC breaking news text-message alerts.

Hilton’s sponsorship of MSNBC’s redesigned mobile site combined with the rich media ads units on both PC and mo-
bile compliment the rollout of the Hilton Hotels iPhone app, which recently surpassed 100,000 downloads. The smaller
banner ads drive consumers to the Hilton mobile site and the larger ones promote the hotel chain’s iPhone applica-
tion. When clicked on, consumers are taken to the Hilton mobile site or to the download page in the app store.

15
 Consumers with an iPhone, Android, Windows Phone, Palm Pre and other qualifying
devices can access an optimized version of the mobile site. Smartphone users can now
touch, flip and scroll through the interactive multimedia features on MSNBC’s mobile site
to get their news.

The mobile site is integrated with NBC News and MSNBC cable video, so viewers can easily
find and watch their favorite segments.

The new features include customizable content categories that can be expanded or col-
lapsed and touch-and-scroll slideshows that showcase larger photos.

Screenshot of Hilton
expandable rich media ad

As the leading global hotel brand, we know that today’s travelers are in-
creasingly turning to mobile technology for everything from breaking news
to booking hotel rooms. Hilton guests are incredibly tech-savvy, so mobile
devices and other contemporary communication channels enable us to share
our global story with them in a highly relevant and engaging way.

- Andrew Flack, Vice President Global Brand Marketing at Hilton Hotels

(Mobile Marketer, Apr. 29, 2010)

Tiffany Taps Mobile Advertising to Court Luxury Consumers

Iconic jewelry brand Tiffany & Co. used mobile to promote its new product line to female consumers in their 30s who
use iPhone or BlackBerry smartphones.

Tiffany wanted to create buzz and excitement around its new collection, drive foot traffic to its new concept store in
California and generate product sales. The jewelry brand also wanted to underline the key differences of the new
concept store compared to former incarnations.

The No. 1 goal was to drive consumers in store. As a luxury brand, a clean, seamless and intuitive interface and user
experience were key, according to Tiffany & Co. Tiffany’s target demographic was high-net-worth females ages 28 to
54, with a strong interest in fashion, shopping and luxury products.

Marvellous’ research showed that within this target audience was a high penetration of top-end mobile handsets,
especially RIM’s BlackBerry and Apple’s iPhone. As a result, Marvellous created a three-tier campaign for Tiffany to
showcase the new store design and a selection of their products, encompassing separately optimized designs, inter-
face and functionality for standard handsets and high-end devices, specifically smartphones for RIM’s BlackBerry and
the Apple’s iPhone.

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 The mobile site let visitors find out about the new store, get directions via maps
and click-to-call the store. Visitors could also browse a limited collection of
jewelry, choose their favorite pieces and save their selections to create their own
jewelry tray that could also be assembled in-store for them to try on the pieces in
person.

Site visitors could even make an appointment at the bricks-and-mortar retail out-
let, so that when they get to the store the desired products are waiting for them.

Combined with device targeting and a mobile optimized microsite, Tiffany formulated a mobile media plan special-
izing advertising to connect with people close to the store.

The .mobi site was also promoted using geotargeted mobile media—banner ads placed strategically within other
applications likely to be downloaded by the target demographic. The mobile campaign drove traffic to the iPhone-
optimized site with iPhone media banner ads within iPhone real estate opportunities, and Tiffany ran a similar mobile
ad campaign for the BlackBerry-optimized version as well.

Similarly, other luxury brands like Mercedes-Benz, Louis Vuitton Moet Hennessy (LVMH), Chanel are leveraging a vari-
ety of mobile advertising tactics including mobile web advertisements, mobile search and application sponsorships to
maximize consumer awareness, brand loyalty as well as increase holiday revenue by driving in-store traffic and com-
merce enabling their mobile landing pages.

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 Mobile Advertising Best Practices for the Holidays
Top 10 Holiday Best Practice Tips
1. Present clear value exchange. During the holidays, consumers do not have time for ads that do not
save them time or money. Present a clear value exchange, giving consumers an incentive to engage—the
offer has to be meaningful.
2. Buy high share of voice. During the holiday season, media consumption is often interrupted. To make
an even greater impact, brands should consider buying high share of voice placements and ensure their
ads are seen at a higher frequency.
3. Use location-based ads. Promoting a holiday sale or offering a coupon to consumers who are search-
ing for holiday gifts. Consumers are always looking for deals, so use mobile ads to raise awareness of
sales and offer mobile coupons.
4. Improve relevancy with targeting. Targeting is especially important during the holidays. Target by
demographic, by consumer behavior and purchase history, by time of day and day of the week, and by
location to improve relevancy which will in turn increase response rate.
5. Multi-screen increases ad effectiveness. Because consumers’ lives are especially hectic during the
holiday season. Hence, multi-screen campaigns with a mobile component are critical during this time of
year to amplify a brand’s message or call-to-action.
6. Leverage rich media. Run interactive mobile banner ads that expand into rich-media animation or re-
direct to a landing page with gift suggestions, product locators or shopping list tools to help consumers
during the holiday season.
7. Use holiday related search keywords. Bids on relevant holiday or product specific mobile search key-
words will increase visibility. For example, Macy’s can serve deals to consumers who search for keywords
such holiday gift or perfume. This will help drive consumers in-store.
8. Holiday-themed ad creative. Engage the consumer with a holiday-themed mobile ad creative and
messaging that addresses consumers’ needs. Keep it simple and relevant to ensure the consumer can
understand what to do and how to do it.
9. Measure results. Set specific objectives to achieve positive ROI, keeping in mind consumer behavior
during the holidays. Clear benchmarks also allow an advertiser to judge the success of a particular
campaign.
10. Enhance engagement with social media. People keep in touch with family and friends via social
networks during the holidays, so add a viral marketing component with social media baked in (i.e. “Like”
button on Facebook, invite friends to watch trailer, post to Facebook or Twitter account). Humor and a
clear value exchange are great ways to generate buzz via word-of-mouth.

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 Mobile Advertising Best Practices for the Holidays
Some Common Pitfalls to Avoid

1. Using a PC landing site. It is best not to use a regular PC site as your mobile advertising landing page.
Make sure you have a mobile-optimized, holiday-specific landing page or microsite so consumers have a
great experience.
2. Focus on only one mobile device. It is best not to just wrap mobile strategy around a single device or
platform. Holiday shoppers have Windows Phone, BlackBerry and other devices too. Plan mobile media
across both mobile apps and mobile web to maximize reach.
3. Using online ad creative. It is best not to just take an existing online campaign and use it for mobile—
take advantage of the unique qualities of mobile. Remember that consumers are often on-the-go during
the holidays, and they expect a mobile-optimized experience.

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 Partnering with Microsoft for Mobile Advertising Success
The Microsoft Mobile Media Network includes a variety of premium mo-
Only Microsoft® Advertising con-
bile media properties and applications where companies can
nects brands to 43 million active
effectively and efficiently reach the high-value, on-the-go audiences
monthly unique users or over half
they seek.
(55 percent) of the U.S. mobile web
audience with integrated
Engage with a Qualified Mobile Audience
experiences across mobile, PC
and gaming.20
Microsoft Advertising’s industry leading mobile display and search ad-
vertising solutions engage over 40 million on-the-go US consumers each
month - regardless of the user’s mobile phone or wireless carrier. Our
innovative ad placements include search, display, rich media, video and custom in-app units and much more.

Microsoft Mobile Media Network reaches:

•  Consumers on virtually any mobile phone – 59 percent of Apple OS, 53 percent of Android OS and
45 percent of Research in Motion (RIM) OS
•  43 million or 55 percent of active users on the mobile web in the U.S.
•  Bing for mobile is the default search experience by virtually all for Verizon Wireless and is one of the preferred
mobile search providers on Apple’s iPhone OS mobile safari browser

Targetable, Premium Content at Scale

Microsoft Mobile Media includes the following premium content:

•  Web Search: Bing for mobile

•  Web Portal: MSN Mobile
•  Web Partner Content: MSNBC, FOX Sports, CNBC and Wonderwall
•  Carrier On Deck Portal: Verizon Wireless portal and partner sites
•  Social Media: Windows Live Hotmail, Windows Live Messenger
•  Mobile Apps: Bing app, MSNBC, Xbox, TODAY Show, Meet the Press, Sporting News, TLC, Phil Mickelson Golf,
Parenting Magazine, etc.
20. The Nielsen Company/Nielsen @Plan Mobile, Q1 2010

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 Advanced Targeting Options
•  Device: handset make, model and device category
(e.g. smartphones, feature phones)
•  Wireless Carrier: target a specific wireless carrier(s)
to leverage on deck inventory
•  Profile Targeting: age, gender, household income,
geography (e.g. country, DMA, zip code), time of
day and day of week.
Microsoft Mobile Media Network
•  U.S. Audience reach: Microsoft Mobile Media Network
reaches 43 million unique users or 55 percent of the U.S.
wireless web audience (Nielsen @Plan Mobile, Q1 2010)
•  U.S. Premium mobile properties: Bing™, MSN® Mobile,
Windows Live Messenger, Windows Live Hotmail, MSNBC,
CNBC, FOX Sports and Wonderwall

•  Behavioral Targeting: utilize 120 custom

targeting segments - categories like “Movie Watch-
ers” or “Business Traveler”
U.S. mobile carrier (on-deck):
•  Keyword Targeting: exact or broad match Verizon Wireless

Microsoft Advertising’s mobile offerings are available in 32

countries worldwide.

Microsoft Leadership versus the Competition - By the Numbers

The Microsoft Mobile Media Network not only delivers reach but, it also has a more attractive audience than Google,
Yahoo! and AOL in key categories such as Sports, Entertainment, Social Media and News for specific target segments.
These segments include Men: Age 25-54, Moms: Women 25-54, Children, Younger Adults: Adults, 18-49 and Afflu-
ents: Adults, 35-54, $100K+.21

Men Moms

Younger Adults Affluents

21. The Nielsen Company / Nielsen @Plan Mobile, Q1 2010

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 Mobile Advertising at the Point of Decision

•  Engage and influence millions of consumers making real time purchase decisions on-the-go with Bing for
mobile
•  Easily extend your online search campaign to Bing for mobile without having to invest in mobile specific
resources
•  Bing for mobile is available on any phone with an Internet connection as a free downloadable app and is the
default search on most phones on the Verizon Wireless network

Amplify Impact with the Power of Multiple Screens

Microsoft Advertising combines the power of its gaming properties like Xbox and Massive with our premium PC and
Mobile properties like MSN, Windows Live, and MSNBC. We make it simple for advertisers to land consistent experi-
ences across multiple screens and make a lasting impact on media savvy consumers in an increasingly complex media
environment.

Microsoft Mobile Solutions That Go Beyond Advertising

Companies ready to leverage mobile advertising during the holidays can turn to Microsoft Advertising for next steps.
Microsoft can help these companies drive brand affinity, create one-to-one relationships with consumers, drive sales
with last-minute holiday deals and offers, acquire and retain customers, enhance multi-channel campaign efforts,
stimulate word-of-mouth and social media engagements and much more.

Microsoft Advertising’s extended mobile services include:

•  Made-to-order post-click elements that incorporate mobile web, apps, downloads, video, rich media, SMS and
much more
•  Complete mobile marketing campaigns tailored for a companies’ needs, including sweepstakes, interactive
voice, click-to-call, click-to-buy, data capture, apps, and consumer polls and surveys
•  Mobile campaign measurement and analytics to help companies monitor campaign performance and adjust
their program and budget as needed for optimal results
 
Microsoft Advertising is committed to mobile advertising innovation by continuously developing new mobile ad
formats and placements to provide greater value to consumers in partnership with leading companies who embrace
mobile advertising.

For more information and to get started with Microsoft Advertising, email mobads@microsoft.com.

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