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Mobile Engagement Study Reveals Moments-Based Advertising Increases Purchase Intent

Facial Coding, Biometrics and Survey-Based Study by Kiip and IPG Media Lab Finds Rewards Create More Effective Engagement Than Banner Ads in Mobile Applications

NEW YORK, NY--(Marketwired - June 16, 2014) - Kiip, in conjunction with the IPG Media Lab, a division of IPG Mediabrands, today announced the results of the industry's first comprehensive moments-based advertising effectiveness study. Chad Stoller, managing partner IPG Media Lab, and Brian Wong, Kiip CEO and co-founder, first unveiled at the Cannes Lions International Festival of Creativity the key findings of the study that show using rewards as an engagement mechanism during key moments within mobile applications drives superior purchase intent and brand favorability over traditional banner ads.

"Our data indicates that rewards allow brands to congratulate consumers at moments when happiness, attention and engagement levels are highest. By leveraging our insights to the marketing challenge of effective mobile media, brands can elevate points of activation in innovative and proven manners," said Stoller.

"The data speaks for itself -- rewards are a superior mobile marketing solution over banner ads. This proves Kiip creates measurable brand love by catering rewards to the context of user behavior and reaching consumers during peak moments when they're most engaged and receptive. This is the biggest validation of our moments marketing model to date and should make any marketer relying on banner ads strongly re-consider their mobile strategy," said Wong.

The closed study, which surveyed 1,344 consumers using the latest facial coding and biometrics technology, assessed reactions and impact for different mobile advertising on these brand metrics during moments of achievement -- special times in app use when consumers accomplish a goal. This study set out to measure:

  • Emotions and Emotional Intensity at Achievement Moments
  • Consumer Acceptance of Rewards vs. Ads
  • Brand Awareness
  • Brand Favorability & Perception
  • Purchase Intent

Examples of moments of achievement include checking off an item from a to-do list, logging a workout, making a music playlist, bookmarking a new recipe and leveling up in a game. Brands from the entertainment, CPG and automotive industries provided rewards for the study.

Purchase Intent Increases with Rewards

The study showed that mobile consumers are much more likely to buy a product from a brand that offers rewards during the right moments, as compared to consumer impact through banner ads.

1. Intent to Purchase - Rewards drove an 82 percent lift in purchase intent, while banner ads garnered only a 6 percent lift. Moment-based rewards are 14X more effective at increasing purchase intent.

2. Widespread Appeal - Purchase intent with rewards consistently outperformed banner ads regardless of the app vertical (e.g., productivity, gaming) or industry the brand belonged to (e.g., CPG, automotive, entertainment).

Rewards Show a Positive Effect on Brand Favorability

The study found that rewards were more effective than banner ads across brand metrics.

1. Brand Perception - Rewards consistently outpaced banner ads in boosting brand attributes (e.g., quality of the brand, respect toward the brand) in all scenarios tested. For example, rewards increased respect for a brand by 14 percent, whereas banner ads decreased respect by 7 percent.

2. Brand Recall and Favorability - Though ads generated higher brand recall than rewards, the study found they actually hurt the brand by decreasing its favorability by 6 percent; however, rewards from the same brand boosted favorability by 10 percent.

For the full report, visit: http://labt.ag/1mSnwHt

About Kiip

Kiip (pronounced "keep") redefines how brands connect with consumers through a moment-based rewards platform that targets "moments of achievement" in the apps people use everyday. This innovative approach to mobile marketing creates meaningful engagements driven by positive emotion between users, developers and advertisers. Backed by Hummer Winblad, Relay Ventures, True Ventures, Verizon Ventures, Digital Garage, IPG and others, the company has raised $15.4 million in funding to date.

About IPG Media Lab

The IPG Media Lab is equal parts think tank, real-world proving ground, and change enabler. We provide agencies and media operators with the power to harness emerging communication opportunities by offering expertise, resources and consulting services tailored to drive quantifiable outcomes, learnings and strategies. The IPG Media Lab is part of IPG Mediabrands, the media innovation and investment arm of IPG. For more information, please visit www.ipglab.com or follow @ipglab.

The following files are available for download:

Contacts

Katy Kenealy
Kiip Public Relations
801-828-6056
[email protected]

Rachael Wolfson 
IPG Mediabrands/IPG Media Lab
212-883-4749
[email protected]

Daniel Friedman
IPG Mediabrands/IPG Media Lab
212-883-4780
[email protected]

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