L’Oreal makes attempt at measuring mobile advertising with Miaozhen solution

The SDK speeds up the combination of a mobile GRP measurement standard with current internet GRPs for online videos, online banners and other online display ad formats. Louis Peng, assistant media manager of L’Oreal China, said there was no data for mobile advertising until Miaozhen launched its "indispensable" third-party SDK.

"With that, we can integrate mobile into our total cross-media strategic plan to better allocate media budgets," Peng said. "The key problem we’re facing is that we have yet to figure out the exact role of mobile advertising in our brand communications.”

According to Peng, due to the fragmentation of consumers’ media consumption habits in China, the brand faces tremendous data-management challenges. The industry is currently lacking a reliable third-party measurement and evaluation system, making mobile advertising difficult to quantify accurately and advertisers suspicious of the potential value.

Miaozhen Systems' founder and CTO, Wu Minghui explained that the agency has already completed link-ups with almost all major mobile ad networks such as InMobi, hdtMobile, adSage, im2.0, and Domob. By the fourth quarter of 2012, this new system will cover more than 90 per cent of mobile in-app advertising platforms and also the top 10 mobile video sites such as iQiyi, PPS, PPTV, and LeTV.

In the mainland, there are now more than 388 million mobile internet users, surpassing the number of desktop internet users which are slightly over 380 million, according to an August report from the China Internet Network Information Center (CNNIC).

Miaozhen CEO Zhu Wei pointed out that the development trajectory of the mobile advertising market is similar to online video. Before 2008, online video ads were unable to receive favour among advertisers. "After accumulating past experience with online video advertising, we estimate the growth of mobile advertising to be even faster,” he said.

Brands like Proctor & Gamble, Yum Brands, Coca-Cola, Nivea, Ford, Sony, Dior, Chanel, and agencies like GroupM, Aegis Media, Zenith, and Mjoule have expressed interest in utilising the third-party SDK, according to the company.

Research from Millward Brown show more than 71 per cent of advertisers indicating mobile advertising measurement is their biggest challenge. Meanwhile, 51 per cent will increase mobile ad budgets in the coming two to three years.

On average, the effects of mobile advertising exceed PC-based internet advertising in terms of brand recognition and purchase intent, according to Peking Tan, R&D director of Millward Brown Greater China.

He added that advertisers need to prepare early to re-integrate their media investment strategy. "To get significant impact from mobile ads, advertisers should, firstly, show respect for consumers and not unduly interfere; secondly, maximise exposure for each communication opportunity; last but not the least, focus on measurement of effectiveness," Tan said.