360i mobile marketing playbook

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Page 2: 360i Mobile Marketing Playbook

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The Future of Mobile Content & Commerce p.11 by Noah Elkin, Senior Analyst, eMarketer

The Nail for Social Media’s Hammer p.48 Interview with Mickey Alam Khan, Editor in Chief, Mobile Marketer

How Mobile Marketing Can Fuel Buzz and Engagement for Entertainment Brands p.63 Inverview with Valerie Brown, Director of Consumer Marketing, Bravo

Mobile Innovation: What the U.S. Can Learn from Japan p.77 by Naoki Muramatsu, VP, Digital Business Development, Dentsu Holdings USA

FOREWORD P. 3

ACKNOWLEDGMENTS P. 5

OVERVIEW P. 7

PLANNING IN MOBILE MARKETING P. 15

SEARCH P. 20

SMS MARKETING P. 27

ADVERTISING P. 32

SOCIAL MARKETING P. 43

APPLICATIONS P. 51

COMMERCE SHOPPING P. 67

PARTING thoughts P. 80

GLOSSARY P. 84

CONTRIBUTOR

ARTICLES

Page 3: 360i Mobile Marketing Playbook

3blog.360i.com twitter: @360i

s this the Year of Mobile? For over a decade this

proclamation has turned out to be premature, giving

marketers ample reason to be skeptical. The difference

looking forward to 2011 is that this is the first time that

consumer behavior and mobile platforms have reached

sufficient scale for mobile to move beyond an emerging

media tactic for mainstream marketers.

Mobile is finally experiencing its tipping point as one

of the critical components of the digital marketing

landscape, much like search marketing experienced

in the early 2000s and social marketing during the

past few years. Nielsen reports that within a year,

smartphone adoption will exceed the adoption of

simpler, feature phones. We’re coming to a point

where the majority of phones – and consumers – will

have Internet connectivity wherever they go.

Mobile is perhaps one of the most exciting and

revolutionary forms of media to flourish over the

last decade, as it builds exponentially on the

groundbreaking changes brought on by search and

social. While the PC Internet is completely divorced

from the physical world, mobile breaks down these

walls and brings the power of the Internet into the

real world in real time.

Imagine you’re in the grocery store, and you can easily

look up a product’s ingredients, compare the price of

products in the aisles with those in neighboring stores,

check other customers’ reviews, and see how popular

a product is with other shoppers in your area. This

is a vision of our not-too-distant future. If someone

has access to information anytime and anywhere, how

does that change the way consumers think about

I

FOREWORD

by BRYAN WIENER

CEO, 360

Page 4: 360i Mobile Marketing Playbook

MOBILE MARKETING PLAYBOOK Foreword4

your brand and the way you have to interact with them

as a marketer? This brings both opportunities and

challenges to existing business practices – much like

the Internet did.

Rather than seeing this as a daunting prospect, consider

that mobile allows consumers to bring their digital lives

with them wherever they go. This also means that we no

longer have to silo our marketing efforts; the opportunity

for cross-channel integration and truly rich multiplatform

brand experiences has never been greater.

The accelerated intersection of mobile, local, social

and commerce across the online and offline worlds

means things are going to change incredibly quickly.

That’s why we’ve put together this Playbook – to

provide a foundation and framework for approaching

the changes ahead. In 2009, we issued our Social

Marketing Playbook for similar reasons and it received a

tremendous response with more than 50,000 downloads

to date. We hope that this Mobile Marketing Playbook will

be as valuable for marketers looking to make sense

of the current mobile landscape and arm themselves

for the innovations ahead. Specifically, the aim of the

Mobile Marketing Playbook is to help marketers:

• Work within a framework for establishing a set of

clear objectives for their mobile marketing strategy

• Move beyond the checklist approach with a filter for

evaluating the myriad of opportunities within mobile

• Think of ways to use mobile to merge online and

offline strategies, as a hub that bridges the gap

• Encourage a dialogue about what matters in

mobile now, and what’s ahead for this new and

exciting medium

As always, we welcome comments, critique, debate,

and discussion – you can find us on Twitter (@360i or

@bwiener), Facebook (facebook.360i.com) or on our

blog (blog.360i.com).

Happy reading,

Bryan Wiener

CEO, 360i

Page 5: 360i Mobile Marketing Playbook

5blog.360i.com twitter: @360i

Several individuals graciously lent their time and talents to the production of the Mobile

Marketing Playbook. We’d like to take this opportunity to thank them for their contributions.

To our featured columnists: Valerie Brown, Eugene Chung, Noah Elkin, Mickey Alam Khan and

Naoki Muramatsu – thank you all for sharing your keen insights with us and our readers.

Thanks also to the 360i team who wrote, edited, designed and managed this Playbook:

Philip Basile, David Berkowitz, Amanda Bird, Brian Blakely, Carleejean Cook,

Natan Edelsburg, Laura Frizzell, Jim Gulsen, Lara Hejtmanek, Sarah Hofstetter,

Chris Humber, Kolin Kleveno, David Levin, Tanya Nam, Katie Perry, Brett Sanderson,

Jesse Shaver, Sarah Sikowitz, Benny Simon, Paul Stadnyk and Chang Yu.

And advanced thanks to the readers of this Playbook who are moved to comment, share,

critique, tweet, scan, blog or generally discuss the contents herein. We encourage you

to reach out and share your thoughts directly with us anytime at [email protected], via

feedback on our blog at blog.360i.com or on Twitter @360i.

ACKNOWLEDGEMENTS

Share the Mobile Marketing Playbook:

twitter facebook del.icio.us digg email

Page 6: 360i Mobile Marketing Playbook

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ervie

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Page 7: 360i Mobile Marketing Playbook

7blog.360i.com twitter: @360i

1 Your customers most likely own and use mobile devices.Market research firm comScore reports that as

of May 2010, 234 million Americans age 13 and

older are mobile subscribers. That’s more than

90% of the U.S. population.

2 Mobile data usage keeps rising,with Americans especially fond of texting. Nearly

two-thirds (65%) of mobile subscribers text,

according to comScore, while the Pew Internet

& American Life Project reports teens 12 to 17

communicate each other daily with texting more

than through any other channel – including talking

face-to-face or on the phone.

OVERVIEW

3 Mobile Internet usage is taking off,making it easier and imperative for marketers

to connect mobile with their digital marketing

programs. eMarketer reports that there are more

than 85 million U.S. mobile Internet users, and

about half of mobile phone users will use the

mobile Internet within a few years.

4 Smartphone penetration is increasingto the point where brand marketers can deliver

rich experiences through pocket-sized devices.

Nielsen reports that within a year, smartphone

adoption will roughly match adoption of feature

phones (the more basic, functional phones with

limited web and app capabilities).

TEN REASONS MOBILE MARKETING MATTERS RIGHT NOW

There’s so much buzz about mobile marketing that it’s easy to dismiss it, or to check off a few mobile tactics and say you’re doing enough with mobile.

Here are the top ten reasons why mobile matters right now. They illustrate why marketers need a comprehensive mobile roadmap as part of their integrated communications plan to take full advantage of the exciting opportunities ahead.

Page 8: 360i Mobile Marketing Playbook

MOBILE MARKETING PLAYBOOK Overview8

5 Smartphone competition is expanding the audience that can access rich content.Mobile ad network AdMob noted U.S. ad

impressions on Google’s Android operating system

reached 46% of the total in March, compared to

39% for the iPhone operating system, marking

the first time Android surpassed the iPhone. Also

consider Myxer, which has served 34 million

consumers 1.3 billion downloads of free mobile

content. Skewing toward a younger audience, it has

seen a disproportionate share of downloads and

traffic coming from BlackBerry devices. BlackBerry

has proved especially popular with this demographic

in large part thanks to the interest in BlackBerry

Messenger (BBM), its instant messenger service.

6 Mobile is designed to be the most integrated marketing medium the world has ever known.Along with the integration of the various channels

within mobile, to be most effective mobile should

integrate with as many other kinds of media as

are included in a campaign or program, including

online, TV, radio, print and out of home. Mobile

devices are always on and accessed everywhere,

and the portability alone makes mobile unlike any

other form of media. Mobile marketing has near

limitless potential to contribute to and build on

other marketing programs.

Feature Phones

U.S. Smartphone Penetration & Projections

Q2‘08

Q3‘08

Q4‘08

Q1‘09

Q2‘09

Q3‘09

Q4‘09

Q1‘10

Q2‘10

Q3‘10

Q4‘10

Q1‘11

Q2‘11

Q3‘11

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Smartphones

(Projections)

Source: Nielsen

Page 9: 360i Mobile Marketing Playbook

9blog.360i.com twitter: @360i

7 Mobile is great for brandingthanks to several factors: deep engagement,

minimal ad clutter and new and constantly

evolving advertising experiences. Dynamic

Logic found that its mobile MarketNorms across

various brand metrics consistently surpassed

online norms.

8 Mobile marketing matters in any vertical,with any goal. A consumer packaged goods

marketer can use mobile display and video ads for

branding, SMS for couponing and applications for

consideration. Retailers can similarly use mobile

in different ways, whether they’re trying to drive

consumers to the store or launch a new product

line. InsightExpress further quantified some of these

effects, showing strong performance across brand

metrics for marketers in six vertical industries.

9 Mobile marketing is more than just a single marketing channel.Consider online marketing, where search, video

and social media are all very different disciplines.

The same is true of mobile, and these various

forms tend to intersect. Coupons can be delivered

via text messages that link to mobile barcodes.

Mobile display ads often promote applications.

Mobile social marketing programs can include

video and mobile search, and tend to run in

conjunction with a range of other promotions.

Aided Brand Awareness

Advertising Awareness

Message Association

Brand Favorability

Purchase Intent

25%

20%

15%

10%

5%

0%

Per

cent

Im

pac

ted

Del

ta (

∆)

Mobile Online

Source: Dynamic Logic MarketNorms for Online, last 3 years through Q4/2009, N=2,461 campaigns, n=3,713,053 respondents;Adinex for Mobile Norms through Q4/2009, N=74 Campaigns, n=69,524 respondentsDelta (∆)=Exposed-Control

Mobile vs. Online

Page 10: 360i Mobile Marketing Playbook

MOBILE MARKETING PLAYBOOK Overview10

0 The twenty-first century is the century of mobile.The “year of mobile” phrase is played out,

but it has been true for some time now. The

International Telecommunication Union wrote

in its 1999 Annual Report, “If 1999 was the year of

the Internet, it was also the year of mobile cellular.”

Since then, there have been several milestones

as the number of text messages sent annually

rises well into the trillions and mobile ad spending

nears the billion-dollar mark. The past few years of

innovation have brought the iPhone with its continual

improvements, pervasive Android devices and

mobile social services that have consumed much

of the bandwidth of the mobile Web. The milestones

will keep coming at a breathtaking pace.

UnaidedAwareness

AidedAwareness

Mobile AdAwareness

Brand Favorability

Purchase Intent

20%

15%

10%

5%

0%

Mobile Index Against Online November 2007- December 2009

CPG Entertainment Travel Technology Automotive Retail

Source: Insight Express

Campaign Effectiveness – Brand Metrics by Vertical

Page 11: 360i Mobile Marketing Playbook

11blog.360i.com twitter: @360i

emember when ringtones were all the rage? No

one thought twice about dropping $3 to get 15

seconds of a song because it was a quick and easy

way to personalize your phone. Indeed, through

2007, revenues piled up for music publishers

and wireless carriers alike thanks to the rush to

personalization, peaking at more than $700 million,

according to SNL Kagan.

Much of this purchasing activity took place “on

deck”– the categorized links that came bundled with

web-enabled phones. Carrier decks offered benefits

to users and marketers alike. First, they enabled

marketers to place content and applications with easy

reach, meaning users did not have to engage in long

(and, at the time, expensive) browsing sessions to find

music, games, news or weather. Second, purchases

conveniently went right on users’ phone bills, putting

access to that content ecosystem within a few clicks.

But carrier decks were walled gardens by another

name, and ultimately that translated into constraints

for the end user.

The launch of the iPhone in June 2007 made those

constraints more apparent. Although it was by no

means the first web-enabled phone, the iPhone

broke new ground as a content-consumption

device. The built-in Safari browser brought a

desktop-like experience to mobile, unlocking a

world of media experiences that previously had

been imperfectly realized at best. Integration with

first the iTunes Store and subsequently the App

Store gave consumers new options for accessing

music, games and video on their mobile devices,

and new modes for marketers to engage their

audience with branded applications.

R

THE FUTURE OF MOBILE CONTENT

COMMERCEby NOAH ELKINSENIOR ANALYST

EMARKETER

Page 12: 360i Mobile Marketing Playbook

MOBILE MARKETING PLAYBOOK Overview12

Apple’s model of tight integration between hardware,

software and services has helped to ignite the

mobile value chain, spurring adoption of devices with

dramatically improved feature sets. At the end of Q1

2010, Nielsen found that just under 25% of the U.S.

mobile subscriber population had a smartphone. That

number is forecast to rise to 49% by Q3 2011, as

device manufacturers and wireless carriers increase

their marketing push to graduate users to higher-value

devices and data plans. The success of Apple’s iPad,

and the anticipated launch of other tablet-style form

factors, will further consolidate media consumption on

mobile devices.

Increased smartphone ownership is driving growth

in mobile Internet usage. According to eMarketer

projections, 142.1 million mobile users, representing

The success of Apple’s iPad, and the anticipated launch of other tablet-style form factors, will further consolidate media consumption on mobile devices.

Page 13: 360i Mobile Marketing Playbook

13blog.360i.com twitter: @360i

54% of the U.S. mobile user population, will access

the web from their mobile devices in 2014, up from

85.5 million in 2010.

Content consumption will likewise increase at a

rapid pace. By 2014, eMarketer predicts that U.S.

mobile gamers, music listeners and video viewers

will number 94.9 million, 52.2 million and 56.7

million, respectively. Moreover, what these mobile

content consumers buy and how they buy it is

also evolving, driven in part by advances in mobile

devices and networks and in part because of

broader secular developments in digital content.

For example, mobile users are talking less than ever

before and using more data-centric functions such

as texting and social networks to communicate.

The decline in voice calling has hurt ringtone sales.

At the same time, the combination of increasingly

ubiquitous broadband access and the steady migration

of content to the “cloud” means that mobile consumers

are moving more in the direction of “accessing” content

rather than owning it, emulating a trend begun on

the desktop with software and services. Paid and

ad-supported streaming services such as Pandora,

YouTube and Hulu offer access to vast content libraries

that would be far costlier to replicate through purchases.

This shift heralds the rise of subscription and pay-per-

use payment plans and boosts the potential of ad-

supported and hybrid monetization models.

Bottom line: Consumers will continue to pay for

content on mobile devices. But whom they pay, what

they pay for and how they pay for it are starting to evolve

as quickly as the devices on which they consume it.

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15blog.360i.com twitter: @360i

1 What are your goals for mobile marketing?Are your goals centered more

around branding or direct

response marketing? Do

you need massive

reach for the mobile

program to be

effective? What

does the end result

look like if the mobile

program is successful?

What kind of commitment

will you make upfront in terms of

the staffing and budget allocated?

Do you have the time to fully optimize

the program? Are you seeking massive

scale for impressions, clicks, engagement or

app downloads within a brief campaign flight?

Planning in Mobile MARKETING

Answering these questions at the onset will

help ensure mobile fulfills its potential

as part of your marketing plan.

2 How is your audience using mobile?

Beyond talking, what are

consumers doing with

their mobile devices?

Which handsets and

operating systems are they

most likely to use? Are they

likely to text, take pictures, search,

play games, use social media, read

news, look for local businesses, surf

the web, download apps, scan barcodes

or participate in other activities? With what

other media, including traditional media, does

your target audience engage? It’s critical to

CREATING AN INTEGRATED MOBILE MARKETING PROGRAM

When planning a mobile marketing program, questions will arise as to which channels, tactics and vendors are most appropriate to incorporate. Marketers can embark on a mobile plan by answering four questions that lead to a much broader number of decisions involved in figuring out how to make the most out of mobile. These questions together comprise the Mobile Marketing Strategic Lens.

What are yourGOALS for mobile

marketing?

How can you use your ARSENAL

in mobile?

How is your AUDIENCE

using mobile?

Does it follow mobile marketing BEST PRACTICES?

Page 16: 360i Mobile Marketing Playbook

MOBILE MARKETING PLAYBOOK Planning in Mobile Marketing16

understand your audience and how they are

utilizing mobile when creating your plan.

3 How can you use your arsenal in mobile?What assets do you have that might make sense to

incorporate? Do you have stores or other channel

partners? Do you have apps or a mobile-friendly

website? What other digital branded experiences

do you have, perhaps across social networks?

Mobile bridges digital and physical worlds, so

consider tangible, real-world assets: products, out-

of-home or print ads, retail stores and live events.

4 Does it follow mobile marketing best practices?Does the program adhere to how consumers

are using mobile media? Does it use the

functionality of mobile devices? Does the

experience translate well both to the smaller

screen size and then the broader real-world

landscape where consumers use their mobile

devices? What kind of value does it provide to

the consumer – information on a new product

or service, entertainment, or a discount on

merchandise, among many other options?

Marketers who have read 360i’s Social Marketing

Playbook may notice some similarities between

the lens above and the Social Marketing Strategic

Lens, which is also discussed in the section on

Mobile Social Marketing (see page 43). The tenets

of both are similar, but each lens is designed to

address the specific demands of its respective

marketing discipline.

Using research and insights to uncover opportunities in mobileForrester Research called 2010 the “year that every

firm needs a mobile strategy.” Understanding the

current mobile landscape, relevant consumer trends,

and what competitors are doing will help you avoid

wasted dollars and increase the impact your program

has on the target audience.

Consumer insightsAs consumers increasingly rely on their mobile devices,

understanding audiences’ motivations in mobile and

aligning strategies to these new and changing behaviors

will result in the most effective programs. Specifically,

this means defining the mobile persona of your target.

With limited screen real estate to leverage, having a deep

understanding of your customers’ mobile usage and

motivations will allow you to offer true value exchange

that will delight - rather than distract - your audiences.

The types of intelligence that will help paint a picture of

your consumer’s mobile persona include:

• The size and composition of your mobile

audience:

- How many consumers can you reach within your

target demographic?

- What are trends for how your target audience

indexes with mobile usage?

• Operating system and handset usage:

- Does your target use iPhone, BlackBerry or Android

devices?

- How are adoption rates trending for each?

Page 17: 360i Mobile Marketing Playbook

17blog.360i.com twitter: @360i

• Usage insights - understanding how your

consumers use their devices:

- Which mixture of SMS, e-mail, mobile web,

applications and other mobile channels do

they use?

- When are consumers engaging with mobile?

What days and dayparts show the most activity?

- How much time do consumers spend using their

mobile devices?

- What are their go-to mobile sites and

applications?

- How prevalent is search usage?

- How likely are they to use geolocation services?

- How likely are they to play games?

- Do your consumers complete transactions via

mobile devices? How do they shop?

- Do they extend their multimedia consumption

(music, video, etc.) to mobile?

Activity Index Composition of Target

Text Message – Sent/Received 120 73%

Picture Mail – Sent/Received 128 43%

Access Internet 121 29%

Download Application 111 14%

Download Game 110 11%

Watched Any Video 112 7%

Internet Purchase 103 6%

Understanding Mobile Usage

Moms over-index heavily for sending and receiving picture mail and gaming, but the most popular non-voice use of mobile for this segment is texting.Source: Nielsen/NetRatings @Plan

Blackberry, 46%

Apple, 25%

Android, 12%

Windows Mobile, 9%

Palm, 6%

Symbian, 2%

The most common device for females 25-34 is the Blackberry, followed by Apple’s iPhone.Source: comScore MobiLens

Mobile Activity for Moms Online

Relative Share of Operating Systems for Females 25-34 with HHI 75K+(June 2010 – 3 month average)

Page 18: 360i Mobile Marketing Playbook

MOBILE MARKETING PLAYBOOK Planning in Mobile Marketing18

is evolving, new marketing models are being

developed, and devices are quickly acquiring new

features and functionality. When planning a mobile

program, look at the most recent data, but also

try to discern trends at least six months ahead to

see what’s coming. Events such as a new iPhone

release, offers from different mobile providers,

new entrants in the tablet market and fast Android

growth can be taken into account when developing

a forward-looking mobile program. Testing new

opportunities now can lead to a sizable advantage

in the longer term.

ConclusionThe near ubiquity of mobile has made it necessary

for any brand that regularly interacts with consumers

to consider a mobile marketing strategy. But mobile

marketing doesn’t have to be a mystery. Taking the

time to investigate the landscape, examine consumer

interactions with their devices and monitor competitive

moves will reduce the unknowns and provide a solid

base on which to launch, test and optimize an effective

mobile program.

Resources for gathering syndicated research include

comScore, Nielsen//NetRatings, the Mobile Marketing

Association and Forrester Research.

Competitive intelligenceGiven the nascent nature of mobile marketing tools

and techniques, it can be very beneficial to study what

other marketers are doing. There’s no need to limit

yourself to direct competitors either. It may be just as

valuable to learn from others in the category as well as

from other industries to see how various marketers are

reaching their audiences via mobile channels.

Syndicated tools such as comScore offer detailed

perspectives on what other marketers are doing in

mobile. These tools often include information on

brands and industries that are the most active in

mobile, with overviews of the creative they’re running

and what publishers they partner with.

Staying ahead of the curveResearch, especially in an emerging arena such

as mobile, is not a one-time endeavor. The market

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MOBILE MARKETING PLAYBOOK Mobile Search20

Mobile paid searchAccording to the Kelsey Group’s Mobile Market View

Report, nearly 60% of all activities on mobile devices

are search-related, making search one of the best

ways to reach consumers in mobile.

Before tackling a mobile search plan, it’s critical to

understand how mobile paid search differs from its

traditional web-based counterpart:

• There is less competition within mobile search,

but there are also fewer ads per page across both

feature phones and smartphones.

• Calls to action and user experience can vary based

on objective. For instance, click-to-call and click-

to-map don’t need to point to a mobile site.

• Shorter search queries means there are greater

demands for relevancy and understanding intent.

• The constantly accessible devices lead to greater

immediacy with consumers’ needs.

• Shorter creative means marketers must get their

point across faster.

Mobile search is evolving in several different ways: • Mobile search is especially useful for local queries.

Whether they include local modifiers (such as a city

name or zip code), consumers looking for “JCPenney”

on their mobile phone will expect to find one in their

area. The Kelsey Group reported that about one in

three mobile searches has local intent.

As mobile devices have become more sophisticated and easier to use, mobile search has become the starting point for consumers on the go. It’s often a good entry point for marketers just getting started with mobile campaigns, and it only becomes more important for marketers with a fully developed mobile presence. Build on an online search program by understanding the best ways to use mobile paid search and search engine optimization.

Mobile sEARCHKEY FACT Google mobile search volume is up 500% in past 2 years

GOALS IT ACHIEVES Sales, purchase consideration, drive to store, content download

BEST INTEGRATION POINTS Applications, mobile shopping

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21blog.360i.com twitter: @360i

• No matter how much better mobile phone

keyboards get, mobile users will keep their

queries shorter when they can. Optimization

in natural and paid search around higher volume

keywords will be especially competitive.

• Voice search is making an impact, and all the

major search engines incorporate it. A range of other

companies have developed offerings here, including

Jingle Networks’ FREE-411 directory assistance,

Naturally Speaking’s Dragon Search application

and Apple’s Siri. Expect renewed innovation in this

area during the next two to three years.

• SMS search is still relevant for feature phones,

where users text a query such as for business

listings or stock quotes and then receive results.

Given that there’s a brief delay between the query

and response, these queries will diminish as

smartphones dominate the market.

• On Google Android-powered devices, a search

button is built into the phone’s hardware, making

it possible to conduct searches instantly no

matter what the consumer does within the mobile

experience. Mobile search listings can in turn

appear during a wide range of activities beyond

Activities Conducted on Mobile Devices (as a % of mobile users)

0 5 10 15 20

Searched Internet for local products/services

Obtained info about movies/entertainment

Obtained info about restaurants/bars

Searched Internet for products outside local area

Purchased physical item that needed to be shipped

Used coupon from mobile phone

Source: Kelsey Mobile Market View for 2009

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MOBILE MARKETING PLAYBOOK Mobile Search22

searching from a mobile engine, such as when

searching for driving directions or using various

applications.

• The results pages themselves will continue to

evolve to showcase more mobile-specific content.

For instance, in June, Google added application

links to its mobile search results, with links to

download apps directly from Apple’s App Store or

Google’s Android Market.

For select marketers, here’s when to include mobile search as part of your marketing mix:

• Retail/QSR marketers

For marketers trying to drive in-store traffic

and sales, mobile search is a great starting

point. According to Google’s Retail Advertising

Blog, 54% of users who researched online

but bought offline used their mobile device to

conduct their search.

• Travel marketers

Travel companies can leverage mobile search

to capitalize on the popularity of travel to

provide information such as flight searches and

transactions such as booking of airline tickets.

• Entertainment marketers

Entertainment companies can promote movie

listings, theater locations, TV tune-in reminders,

album releases, concerts and other live events.

• Consumer packaged goods marketers

Within mobile search, marketers can enhance

their search listings to include special information

and offers such as coupons to incentivize users.

(Learn more about coupons on page 69.)

A search for local hair salons shows how marketers can use coupons to enhance their mobile location listing.

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23blog.360i.com twitter: @360i

Mobile paid search best practices

1 Group mobile campaigns separately. They tend to perform differently from online

search campaigns, and you’ll often want to adjust

the rules accordingly.

2 Broaden your scope. Mobile search volume tends to be significantly

lower than online search for most keywords, so

to achieve the best reach you’ll want to target

queries more broadly, include more high-volume

queries and possibly include additional keywords.

3 Go local. If geotargeting matters at all for you with online

search, it’s going to be vital for mobile.

4 Incorporate mobile functionality into the creative. Click-to-call was somewhat useful online, but it’s

poised to play a pronounced role in mobile search.

Anytime a consumer would benefit by talking to

a person, from a booking agent to someone at a

local store, click-to-call can potentially improve

conversion rates.

5 Target immediate needs. Mobile Marketer reported that 70% of mobile

search users complete their task after one hour,

compared to 30% on the PC. Make sure copy

and landing pages are useful for consumers

looking to meet their needs right at that moment.

Microsoft’s Doug McMillen told Mobile Marketer,

“As a marketer you need to be there when a user

needs you most. There’s a huge payoff in terms of

emotional connection with a brand if you’re right

there at the top of the listings and help the user

accomplish their task easily when they’re highly

motivated to connect with you.”

Mobile search engine optimizationSearch engine optimization (SEO) has evolved

significantly over the last two years, extending beyond

commonplace activities such as title and META tag

optimization to include diverse methods that keep

pace with the changing search landscape. Mobile

search builds on the basic techniques, though it

involves many new considerations to capitalize on

mobile devices’ design and functionality.

Optimizing a mobile website, regardless of the

markup language, still centers around the core tactics

one applies to traditional HTML websites. Core

optimization techniques such as title tag creation,

proper use of META tags, sufficient keyword density in

copy, the proper use of HTML page headings, and link

development remain vital for greater natural search

visibility. With core onsite factors in mind, brands

should focus on efforts that impact smartphones and

the next generation of mobile users.

When managing multiple versions of a website through

one content management system, many of the on-

site SEO best practices incorporated into a traditional

website can be ported to the mobile version. However,

due to the prevalence of dynamic content types such

as maps or mobile applications, there are several

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SEO considerations that are specifically applicable to

mobile search.

Mobile SEO considerations• With smartphones and other mobile devices

maintaining full browser capabilities (with

JavaScript), brands should look to optimize mobile

sites for the future. XHTML Basic 1.1, XHTML MP

1.2 and HTML5 are good choices for new mobile

site development.

• Utilize browser/user agent detection methods to

redirect mobile users to the appropriate mobile

version of your website.

• How fast a website loads can impact how well

your site ranks. Web browsing speeds can in turn

impact click-through and abandonment rates on

mobile devices. Providing users with a simplified

mobile version (WAP, XHTML, etc.), which limits

the use of large images and other elements

that slow page load, can greatly improve user

interaction and time spent on site.

• Searching for local information such as business

locations and directions is one of the most popular

mobile activities. Local directory submissions are

critical for brands to maintain accurate listings

within map applications such as Google Maps.

• As mobile naturally aligns with a searcher’s

location, more emphasis will be prioritized on

geotargeted landing page development and

customization.

• Traditional SEO on-site best practices are still

applicable. The proverbial spine of your web page

is the title tag. Instead of long 120-character titles,

consider focusing on the primary three keywords

and limit your mobile site titles to 50 to 70

characters in length.

• Build dedicated landing pages for mobile

applications that auto-detect browsers and

devices and can automatically load the appropriate

application storefront. This will make it easier for a

user to download and install the app. It can even

prove to be beneficial for non-mobile users.

• Evaluate where social media content is influencing

the mobile audience and develop a participation

and value exchange strategy to gain more real-time

exposure or links.

• If your website utilizes a significant amount of rich

Internet applications or suffers from congestion of

information, consider building a mobile version that

simplifies navigation and provides access to the

most recent content.

Looking to the future with HTML5 As more brands adopt HTML5, new markup

definitions and features will allow for simplified site

management and may lead to the extinction of mobile

markup languages such as WAP. While they’re several

years away from becoming mainstream, HTML5 and

CSS3 (cascading style sheets) can allow webmasters

to create and manage one website that performs

efficiently on mobile and traditional desktop devices.

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Less Framework, an HTML5-powered CSS framework

for building smart website layouts for varying screen

widths, is one way to build a flexible multi-column

website that intelligently collapses into a single column

for small screen devices such as smartphones. As

we collectively move closer to an HTML5-rich world,

mobile and desktop experiences will become less

fragmented and the application of SEO will become

much more efficient as the lines dissolve. More on

HTML5 is found later in this Playbook on page 61.

ConclusionMarketers with experience in paid search and SEO can

maintain their competitive advantage by constantly

applying the latest mobile search best practices.

Waiting until mobile search mirrors the scale of online

search could make it harder to catch up later.

Traditional Site Mobile Version

MTV’s traditional site includes navigation and content that prove difficult to use in a mobile browser (if the mobile browser defaults to the original website).

The mobile version of MTV.com, which loads automatically in most mobile browsers, streamlines navigation and optimizes content across all channels.

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For marketers, SMS marketing has the lowest

barrier to entry. Once the messaging platform is

in place, there is no creative development needed

beyond copywriting.

Anyone who’s encountered a teenager in the past

few years won’t be surprised that texting is especially

popular with younger consumers. The Pew Internet

& American Life Project reports that American teens

Even with all of the bells and whistles on headline-grabbing smartphones, SMS (or text messaging) still reigns as the most popular mobile activity. It’s the most universal functionality, given that SMS is available on almost every mobile phone, from lower-end feature phones to the priciest smartphones. comScore reports 65% of mobile subscribers send text messages, compared to about 30% using the browser and downloading apps.

SMS MARKETINGKEY FACT Texting is more than twice as popular as mobile browsing or app usage

GOALS IT ACHIEVES Deal alerts, event reminders, persistent CRM to develop relationships

BEST INTEGRATION POINTS In-store, out-of-home, TV, radio

3 Month Avg. Ending Apr. 2010 vs. 3 Month Avg. Ending Jan. 2010Total U.S. Age 13+

Share (%) of U.S. Mobile Subscribers

Jan. 2010 Apr. 2010 Point Change

Total Mobile Subscribers 100.0% 100.0% N/A

Send text message to another phone 63.5% 64.6% 1.1

Used browser 28.6% 31.1% 2.5

Used downloaded apps 26.7% 29.8% 3.1

Mobile Content Usage

Source: comScore MobiLens

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MOBILE MARKETING PLAYBOOK SMS Marketing28

12-17 contact peers daily via texting (54%) more than

any other communication channel, including calling on

mobile phones (38%), talking face-to-face (33%) and

interacting via email (11%).

It’s hardly just for teens though. An April 2010 study

by Merkle found that 63% of U.S. adults 30-39 text,

as do 49% of adults 40-49. Additionally, 26% of U.S.

adults have opted in to receive commercial messages

on their mobile phones with an average of three

companies sending them mobile messages monthly.

How SMS fits in with marketing plansThere are several ways that brands can utilize SMS

as part of their marketing mix. Below are some

approaches to consider.

Building an SMS list for further communicationBranded shortcodes: A marketer registers a five- or

six-digit number, or shortcode, which often relates

to its brand as it’s spelled out on the keypad, such

as 262966 for AMAZON. Consumers can send a

text message to that number to opt in to updates

or engage with the marketer. Marketers benefit from

owning their brand name, but it’s relatively costly and

a lengthier setup process compared to other forms of

SMS marketing.

Shared shortcodes: Marketers can also run

campaigns on shared codes. For instance, Facebook

enables marketers to have consumers become a fan

of their page by texting “like” and the page name to

32665 (FBOOK). It’s one shortcode that can be used

with millions of pages, as each page has its own

unique name. Facebook has tried out offering physical

decals for marketers to place in their store windows

(see image below), and marketers can use the same

messaging in other channels, such as email. With

either form of shortcode use, the biggest advantage

is the integration potential. SMS callouts can appear

in: out-of-home marketing, point of sale locations, TV,

radio, print, online display, email and social marketing.

In that sense, shortcodes are the most adaptable

forms of mobile media, and of any form of media.

SMS contest entries: Brands can offer users the

option to text in exchange for a contest entry. Universal

Home Entertainment ran an SMS remarketing

campaign for the launch of their DVD “Bring It On:

Fight to the Finish.” Website visitors were encouraged

to text “BringItOn” to enter to win a prize pack. In

doing so, Universal was also able to collect opt-ins

for an SMS reminder when the DVD went on sale.

This is a great example of how brands can drive SMS

opt-ins through another form of advertising (TV, Print,

OOH or digital).

Facebook offers a common shortcode (32665, or FBOOK) that any marketer can use to promote their Facebook page.

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Utilizing an existing SMS platform as a way to reach your target consumer

SMS Advertising: Marketers can append their

messages to content that consumers subscribe to via

SMS (e.g. news alerts, sports scores, horoscopes,

etc). The ads can be used for a range of purposes,

from building up the marketer’s own SMS opt-in list to

driving traffic or engagement.

Marketers can also buy ad space

from mobile search providers such as

ChaCha, a service that allows users to

text questions in to “242242” (ChaCha)

and receive answers back via SMS. The

questions are categorized (e.g. travel,

entertainment, local geographies) and

brands can append their message to

the answer the user receives to their

question. This type of program can

work for any brand looking to align with

specific content (e.g. health insurance

marketers targeting health questions,

or a theatrical new release targeting entertainment

questions).

Marketers can use SMS to align their brand with

an activity that appeals to their target audience.

In late 2009, State Farm sponsored a SMS-driven

game at a University of Kansas football game. Fans

were encouraged to text in to show their school

allegiance. State Farm was able to follow up with

participants later via mobile. When considering

SMS, marketers should limit the focus

of their programs to content that

aligns with their target consumer’s

mobile behavior.

Myxer promoted Universal Home Entertainment’s “Bring It On: Fight to the Finish” with SMS-based prizes.

Ads appended to SMS alerts allow consumers to opt in to marketing promotions and content Image source: 4INFO

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MOBILE MARKETING PLAYBOOK SMS Marketing30

Marketing options for text message contentEven with the limited character space, marketers

have many options for the content they distribute and

promote via SMS:

• Text content, such as product information,

informative tips, polls or trivia questions

• Links going to a mobile website

• Links to maps, such as for store locators

• Click-to-call links, leading

consumers to retail stores or

call centers

• Multimedia, such as images,

videos or ringtones

• Coupons, from codes that can be entered by the

consumer or cashier, or a link to a barcode that

can be scanned

SMS marketing best practices

1 Stay relevant When targeting content with any SMS publisher,

ensure that your message belongs there.

2 Ask permission Always obtain consent in the form of an opt-in

before messaging to users. SMS messages can

cost money, so it’s important that the recipients

know what they’ve signed up for and understand

the implications.

3 Offer something of valueThe last thing users want is spam on their phones.

Offer something they care about in exchange for

permission to reach out to them (e.g., a coupon

code or a link to exclusive content).

4 Use it for time sensitive eventsInterested users will appreciate the reminder.

ConclusionSMS provides a turnkey way for marketers to tie

together a variety of programs. On its own, SMS

may not create a large impact, but when used in

conjunction with other types of media, creative and

content, it can create a path through which users

can become more deeply engaged with your brand.

SMS can work well for time-sensitive promotions, such as in this American Idol tune-in reminder Image source: iPhonematters.com

State Farm encouraged fans to text in to show their college football allegiance. Image source: Mobile Marketer

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This chapter will provide an overview of mobile

advertising opportunities, explore how each media

tactic compares to its desktop counterpart, offer

frameworks for evaluating when to include each in your

plan and review overall best practices. Finally there will

be an overview of what can be measured to gauge

success based on the goals of your campaign.

Targeting optionsMobile marketing offers various ways to help advertisers

find their audience. As with online, you can reach users

based on location, demographic information, content

and publisher (app or WAP), but you can also target

particular devices and carriers. Here are some targeting

methods that you can employ across many forms of

mobile advertising:

Geolocation

• Marketers can locate users in several ways, such

as through GPS or wireless tower signals, check-

ins at local businesses through social applications,

and by using ZIP codes or localities entered in

search or weather queries.

Carrier

• Marketers can specify which mobile providers they

would like to target.

Handset/Operating System

• Marketers can select if they want to target users of

the iPhone or select BlackBerry devices, or users

of the Android operating system.

Demographic

• By tapping into non-personally identifiable

information provided by the carriers, marketers can

The mobile medium has the potential to bring to life the power of digital advertising and unleash a renaissance of creativity and innovation. Within mobile there are opportunities for display, rich media, video and in-game, plus constant advancements as new players and devices emerge. Like the rest of the online media world, the process of deciding which tactics make the most sense should tie back to campaign objectives and an understanding of the target audience, as discussed in Planning in Mobile Marketing on page 15.

MOBILE ADVERTISINGKEY FACT U.S. mobile display ad spending will top $1.2 billion by 2015 (ABI Research)

GOALS IT ACHIEVES Branding, engagement, content download, mobile web traffic

BEST INTEGRATION POINTS Online display, apps, video

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select if they want to target men or women in a

certain age range.

Contextual

• Marketers can display ads next to relevant content

within the app or site.

Behavioral

• Behavioral targeting is still in its infancy due to

limitations on tracking users from app-to-app

and app-to-WAP. However, companies like

Millennial Media offer solutions that can track

users’ movements from WAP-to-WAP. Millennial

MYDAS™ Audience utilizes user profiles, opt-in

survey data and publisher-provided meta-data

to create audience segments. Furthermore, it

is widely speculated that eventually marketers

will be able to tap into iTunes-rendered user

behaviors and run an iAd campaign to target

users. Despite these advances, mobile browsing

behaviors differ from online, and currently there

is no way to track or target users from online to

mobile or vice versa.

Publisher-created targeting

• Publishers often offer their own custom targeting

vehicles, and for mobile it’s no different. For

example, Pandora launched its own iPad app that

enables marketers to target ads by gender, age,

location, type of music and time of day. Similar

to full-screen rich media units such as iAd and

Greystripe’s Immersion Ads, when a user clicks on

an ad within the iPad app, the ad will open a new

page without interrupting the streaming music.

Some of the initial sponsors include Starbucks,

Lexus and Budweiser.

Mobile displayMobile display encompasses any type of banner

advertising that takes place on mobile websites or within

applications. According to ABI Research, spending on

mobile display is expected to grow from $313 million

today to $1.2 billion by 2015, fueled by the growth of

U.S. adult Internet usage.

Buying mobile display Mobile display can be priced on CPM (cost per thousand

impressions), CPC (cost-per-click), or, in some cases, cost

per engagement (CPE) or cost-per-download (CPD). Like

buying traditional online media, brands should consider

which type of pricing will help them accomplish their goals.

• CPM – buying guaranteed impressions: CPM media

is good for branding campaigns where it’s important

to achieve a specific impression level and/or run on

specific sites.

• CPC – buying clicks: CPC media works for marketers

who want to guarantee traffic to their mobile landing

page, but who may not be as concerned with where

their advertisements run.

• CPE or CPD – buying ad engagement or downloads

of a mobile app: Similar to CPC advertising, CPE or

CPD ensures that a mobile program will deliver the

exact action that a marketer is seeking. This type

of pricing is good for brands that have invested in

interactive creative and want their target audience

to interact with their brand within the unit. It also

works for marketers who have mobile apps and are

interested in driving downloads.

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The majority of mobile inventory is currently sold

through mobile ad networks. Similar to the early

days of online display advertising, networks provide

a way for publishers to sell inventory on their mobile

sites without dedicating a sales force to it. As mobile

inventory and advertiser interest in the medium

increases, however, more publishers may opt to sell

it on their own.

Mobile ad networks provide reach and scale to

marketers looking to buy within the channel. Because

the channel is still new, there aren’t standard creative

specs or sizes. Mobile ad networks help marketers

navigate the landscape and serve as a one-stop shop.

As with any ad network, the trade-off for marketers is

less control over where the ads run, but marketers can

mitigate this by excluding sites or specific content that

isn’t appropriate for their brand.

There are a handful of publishers such as The New

York Times, CNN, Weatherbug and Photobucket that

are able to sell mobile inventory on their own. This

works for marketers looking to round out an existing

offline or online buy with that publisher, or for marketers

who have custom offerings. It is difficult to scale with

publisher-direct buys because inventory levels are still

relatively low.

Mobile bannersMobile banners can be targeted across various

channels and categories of mobile sites and

applications. In addition, marketers can also target

mobile banners against behavioral and demographic

attributes.

One of the major benefits of mobile banners is

that campaigns can be built around the post-click

experience of the banner and do not need to drive the

user to a mobile site.

A major challenge facing mobile banner advertising

is the lack of standards across the various ad sizes.

Mobile banners come in a range of sizes to support a range of goals and handsets. Image source: AdMob

Smartphone Banner Ad

Text AdSmartphone Text + Tile Ad Banner Ad

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Marketers are often required to develop ad sizes for

a number of devices ranging in size from 120x20

pixels all the way up to 300x50 pixels. Additionally,

third-party tracking technologies are still a work in

progress. Marketers must often resolve discrepancies

that arise between mobile publishers and third-party

reported numbers.

Does this mean marketers should stay away from

mobile banners? Definitely not. While mobile banners

may require more upfront work, they can still be used

to meet campaign objectives such as awareness,

traffic and engagement.

Mobile banner advertising best practices

1 Take into account the various operating systems

and devices when developing ad sizes, as

mobile banners are usually not purchased based

on ad size.

2 If planning for smartphones, think

about the post-click experience.

3 Take into account how you want to measure

campaign success, as mobile metrics can differ

from traditional online metrics (see the section

on Measurement later in this chapter for more).

4 Think about where you want your mobile

banners to show up, such as on mobile

webpages or within applications.

Mobile videoAccording to Nielsen’s Three Screen Report, more

than 20 million users watched a mobile video in Q1

2010, which represents an increase of more than

50% year-over-year. eMarketer projects mobile video

revenues will climb from $436 million in 2009 to $1.34

billion in 2014.

Mobile video opportunities include pre-, mid- and

post-rolls that consist of 10 to 15-second video ads

that can run prior to, during or after video content,

as well as full-page video interstitials that take over

the entire screen prior to content. Marketers can also

create custom video companion ads or customized

video channels to promote their brand.

Click-to-video ad: Users can click on multiple links from a video ad to take various actions.Source: Rhythm NewMedia

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MOBILE MARKETING PLAYBOOK Mobile Advertising36

Best practices for mobile video

1 Ensure that the aspect ratio for the video is

correct, as it will differ from the web and varies

across mobile devices.

2 Make sure the video will work on a small screen;

dark and fast moving images won’t look great

on a mobile device.

3 Keep video ads short. Most mobile users prefer

shorter snippets of content, and slower mobile

connection speeds can sometimes cause

uncomfortable delays in video load times.

4 Similar to the post-click experience, think about

what the post-viewing experience should be.

5 Don’t use online benchmarks. Instead, create

new ones for mobile, as the user experience will

vary. Certain publishers and networks will have

benchmarks for various verticals.

Mobile in-game adsAccording to MobClix, a mobile ad exchange, more than

40,000 mobile game applications have been released

in the past year. As of summer 2010, MobClix reported

that more than 300 game apps are added each day.

Similar to PC or console-based video game advertising,

brands utilizing mobile in-game advertising have the

opportunity to reach a rapt audience before or during

a transition in gameplay.

Carousel ad: On a custom landing page, consumers can scroll through multiple video ads or clips.Source: AdMob

MMS video ad: Marketers can send video ads via multimedia messaging service.Source: Mogreet, via mocoNews

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The sequence above is an example of an advertising

campaign on Greystripe’s mobile network. While playing

a game, at a break before the user moves on to the next

level, he or she sees an ad for a movie. The ad itself is a

game, but the user has the option to skip it.

Many advertisers have seen great success with mobile

gaming. It’s important, however, to think about your

audience and if they engage with gaming on or off the

mobile phone.

Best practices for mobile in-game ads

1 Determine if your target audience is likely to

engage with an ad more if it runs in a game. Such

ads can work best for marketers who have had

success with other gaming programs.

2 Temper your investment until you’re sure your target

audience will engage in gaming. Most in-game

advertising is sold on a CPM basis, and branded

games usually require a development cost.

3 Understand the audience of the game before

choosing to advertise on a specific game. Gaming

audiences differ dramatically, as a casual gamer

will likely be very different from someone who

plays a first-person shooter action game.

4 Provide value through entertainment or

interactions that appeal to your audience. It’s not

just about getting your message out there, but

rather providing an experience that makes the

distraction from the game worth it.

1 2 3 4 5

Game reaches a natural transition point

(example: end of level)

Ad isdisplayed

Ad menu is displayed

User selects ad action

Selecting “Done” returns user to game where they

left off

Ads within games can be games themselvesSource: Greystripe

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app or site in order to reveal more information. The

expanded portion of the ad can contain anything from

a static banner to a form to a microsite.

• Prestitials and interstitials are full screen ads (a

300x250 ad unit is standard for iPhone/iPod Touch

and Android) that are displayed on an app or site’s

welcome page or in transition to another section of

an app or site.

• Full-screen engagement ads are a form of rich

media engagements that allow marketers to create

an immersive environment.

- iAd keeps users within an application instead of

redirecting them to a page in their browser. This

enables users to explore the ad and interact with

it, and even purchase products.

There are distinct advantages and disadvantages to

choosing iAd as of summer 2010. Marketers should

check to see if Apple has addressed any of the

Mobile gaming will continue to become more popular

as smartphone penetration increases. If done right,

mobile in-game advertising can be as entertaining as

the game itself. The key is to create the right experience

for your audience – one that entertains and leaves the

player with a positive feeling about your brand.

Mobile rich media Just like with online advertising, mobile rich media ads

offer a visually stimulating way for users to engage

with a brand. There are various ways to capture a

user’s attention with these ads:

• Expandable ads are banners that load as

standard-sized ad units, and then when the user

scrolls over them, they expand over the content of the

Expandable ad: Best BuySource: Greystripe

Prestitial ad: Step Up 3DImage source: Photobucket

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downsides when considering iAd, as

this could change at any time.

Pros:

• iAd allows marketers to get in front

of users as they engage with apps

they frequently use.

• Apple’s selling point is that iAd offers

interactivity plus emotion. People

not only interact with the ad units

but also feel emotionally connected

while doing so.

• Apple helps developers make money

with a 60% revenue share; this

enables them to offer apps for low

prices or even for free.

Cons:

• In order to run an iAd campaign, there is a large

monetary commitment up front.

• At first, these units may have high bounce rates

from people clicking just to play around and

experience the ads but not actually have any

interest in the brand or the campaign. On the

flipside, this could benefit some advertisers who

are running a brand awareness campaign and seek

to capture early adopters.

• Apple is solely selling, developing and hosting iAd.

As a result, you cannot develop your own iAd in-

house or use your creative agency.

Greystripe’s Full Screen Immersion Ads (formerly

iFlash Custom Ads) are an alternative to iAd and offer a

similar experience that involves rich media animation,

interactivity, and click actions without leaving the

actual application. Greystripe’s technology allows

them to take pre-existing rich media ad units built in

Flash and transcode them into HTML5 format that is

readable on iPhone and iPod Touch.

Beyond iAd and Greystripe, other ad networks

such as AdMob, Millennial Media, and Medialets

can deliver immersive creative experiences within

applications. Marketers should consider a number

of factors when evaluating such networks, including

reach, audience demographics, creative offerings,

targeting capabilities, transparency of placements,

development time required and the responsiveness of

account personnel.

Measuring mobile advertising campaignsDepending on the objective of your campaign, you

Interstitial ad: 90210Image source: Jumptap

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will want to consider how to best measure success.

For instance, a branding campaign may involve

measuring awareness or lift, impression volume, or

engagement. Direct response campaigns, meanwhile,

may measure clicks, conversions, calls received or

coupon redemption.

Brand metrics• Brand awareness and lift can be measured using

marketing research companies such as Insight

Express, Dynamic Logic or comScore to conduct

studies. These studies typically require a specific

budget and multiple ad units in order to reach a

significant impression level. Marketers can apply

what they learn from these studies to optimize

creative concepts and messaging.

• Impressions are generally recorded in aggregate.

However, it is important to consider unique

impression data in order to accurately determine

the true reach of a campaign.

• Engagement reflects how users interact with a

marketer’s ad unit or messaging. Interactions can

include mouse-overs, clicks, video plays, and

drop-off rates, and time spent playing a game.

Direct response metrics• Clicks are a meaningful measurement metric if site or

app traffic is the main marketing objective. In order

to gauge the value of the clicks, marketers should

consider the bounce rate, which represents the

percentage of initial visitors to a site who “bounced”

away rather than interacting with the site.

• Conversions are determined by the goal of each

campaign and help marketers evaluate the

effectiveness of their advertising spend. Marketers

can measure impact by looking at the conversion

rate, which represents the percentage of initial

visitors (clicks) to a site or app who converted by

taking a pre-determined action.

iAd promises to grab consumers’ attention with immersive creative experiencesImage source: Erica Ogg/CNET

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• Click-to-call ads contain a telephone number that,

when clicked, populates the phone’s dialpad with

the number. If properly set up, marketers can track

how many calls were received, the duration of the

calls, and if the desired action was taken.

• Couponing offers a convenient way to target

promotions to a medium that is always on and

can act as a redemption tool. Marketers can track

coupon redemption and see revenue generated

by each individual code to capture granular ROI.

Phones enable users to consolidate customized

discounts in a single place, so it is up to retailers

to trace use of coupons to prevent multiple

redemptions and also track redemption rates.

(See more on couponing in the section on Mobile

Shopping, page 69.)

Tracking mobile advertisingAlthough marketers can track clicks and impressions

using third-party ad servers such as DART, tracking

conversions via third-party tags remains a challenge.

Therefore, as these ad servers focus on building

out tracking and reporting capabilities, the burden

of providing the analytical data rests mainly on the

publishers. If tracking application downloads through

the iTunes store, the developer needs to install a code

snippet that enables the publisher to record conversions.

Since discrepancies often exist among ad servers, we

recommend using third-party ad server click trackers

and standard tags to compare click and impression

data. Third-party tracking capabilities should evolve

quickly to meet the pressing advertiser demand.

ConclusionAdvertising models for mobile have evolved to be

very similar to desktop advertising models, yet it’s

important to consider how people use their mobile

devices compared to how they use their desktop

or laptop computers, and how mobile campaigns

should differ in light of this.

A mobile device is unique to an individual, whereas a

computer may be shared at home. A mobile device

is also a must-have utility that is rarely left behind,

unlike computers that get turned off or put away.

Understanding the nature of how a mobile phone

fits into someone’s life allows marketers to devise

strategies that make the most of this channel.

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Preparing for mobile social’s challengesMarketers who start learning what works with mobile

social media can wind up well ahead of their peers and

provide added value for consumers in the process. On

the other hand, there are plenty of hurdles with mobile

social marketing:

• Mobile and social are two areas that often don’t have

clear ownership within marketers’ organizations.

• There’s a higher learning curve in both mobile

marketing and social media as neither offers

clear-cut application of the media buying skills that

marketers have honed in other media.

• Metrics are still a work in progress, as are the

business models of many vendors in the space.

• Budgets are often too small to gauge the real impact

of a campaign, and the process can turn off some

who want immediate results on a large scale.

Marketers, agencies, publishers, technology providers

and others will need to overcome these challenges to

keep pace with the consumers and where they are

increasingly spending their time.

Mobile social media by the numberscomScore’s April 2010 data reveals that social

networking is the fastest growing mobile content

category, whether accessed by mobile applications

or browsers. There were 15 million U.S. mobile

users ages 13+ engaged with social networking via

applications, up 240% over the previous year, and

30 million users engaged with social networking via

mobile browsers, up 90%.

Facebook reports that more than 150 million active users

access the network through their mobile devices. Users

MOBILE SOCIAL MARKETINGKEY FACT More than 150 million people access Facebook from mobile devices each month

GOALS IT ACHIEVES Branding, engagement, drive to store

BEST INTEGRATION POINTS Online social media, digital word of mouth, email, loyalty programs

Mobile social media, any form of social media accessed through mobile devices, has much in common with online social media: the power of building relationships with consumers, the large and rapidly growing user base and the potential to incorporate sharing and community functionality into every form of content. Mobile presents new opportunities, as these untethered mobile devices are designed for communication – the raison d’être of social media – and can harness the power of location.

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MOBILE MARKETING PLAYBOOK Mobile Social Marketing44

accessing its mobile services are more than twice as

active on Facebook as non-mobile users. Ground Truth,

a mobile metrics firm, reported that in April 2010, 60% of

the time U.S. mobile subscribers spent on mobile Internet

usage was on social networking sites.

Categories of mobile social mediaMobile social media comprises a broad field, but here

are some of the key forms it takes:

Mobile extensions of online social networks: The

largest social network, Facebook, not surprisingly has

the most mobile users, as well. MySpace and other

social networks have mobile extensions, such as

optimized sites or apps, and many are ad-supported.

One can expect that in the coming years, U.S. social

networks will follow the same course as Mixi, a leading

network in Japan, which now has three-quarters of its

users accessing the service from mobile devices.

Mobile-central social networks: MocoSpace, Mig33

and Peperonity are three social networks that launched

on mobile devices and attract most of their users there.

They tend to attract feature phone users and may

specialize in reaching certain target audiences, such

as MocoSpace with 70% of its 12 million members

comprised of Hispanics and African Americans.

Location-based check-in services: Users check in to

physical locations primarily through mobile applications.

See the the following section for more details.

Social gaming: Many mobile gaming applications

are either built entirely on social functionality or rely

heavily on social features. For instance, Words With

Friends by developer Newtoy is an asynchronous form

of Scrabble; it’s part of a “With Friends” series that has

recorded more than 6.5 million downloads. Gaming

company Ngmoco has developed a number of mobile

social games where users derive in-game benefits by

cooperating with each other.

Mobile web-based sharing: Any mobile-optimized

webpage can include various calls to action to share

content and offers with friends.

Gaming has helped propel mobile social media, thanks in part to hit apps such as Words with Friends.

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App-based sharing: Many applications utilize

Facebook Connect to make it easy to share updates

or photos directly through the social network. Apps

will often allow users to find and invite their friends

through Facebook, Twitter and other networks.

Location-based check-in servicesAn emerging field within mobile social media is location-

based check-in services, where consumers use mobile

devices to say where they are, often to earn virtual

rewards such as badges and virtual goods. The crowded

field of these services includes Foursquare, Gowalla,

MyTown, Whrrl, Buzzd, Loopt, Brightkite, SCVNGR

– and most recently, Facebook Places. Google and

Yelp have also incorporated check-ins into their mobile

applications. CauseWorld has turned these actions

into acts of kindness with a philanthropic hook, and

FoodSpotting lets consumers upload photos of what

they’re eating wherever they go.

Most of these services don’t have the scale to

attract marketers looking for mass reach, but

many have growing and dedicated audiences with

disproportionate numbers of digital influencers,

and there are opportunities to reach consumers

with the right psychographics and demographics

for certain brands.

Here are a few examples of how they’re being used:

• TV network Bravo offers branded badges on

Foursquare for those who engage in activities

mirroring the characters on their reality shows.

Checking into a New York City restaurant, one

might earn the martini glass badge that says, “Way

to drink, eat, shop and spa like a Real Housewife!”

• MyTown is more of a game than a utility. Players

can buy locations and collect rent as they upgrade.

For example, H&M offers branded virtual goods to

players who check in at their stores. These goods

provide large point boosts in the game to help

players level up. Advertising Age reported, “During

the campaign, H&M was the most searched location

within the game, 700,000 users checked in to its

retail stores, and 8 million saw its virtual goods.”

• CauseWorld encourages consumers to scan select

Kraft products in stores to earn “karma points” that

can be donated to charity.

• IHG (InterContinental Hotels Group) partnered

with Gowalla to extend its Hit It Big promotion.

When users check in with Gowalla at various IHG

properties, they may win prizes such as double air

miles or gift cards at national retailers.

• Loopt launched its companion app Loopt Star to

reward consumers’ loyalty for checking in to local

businesses. Promotions include Gap offering 25%

discounts for consumers checking in twice to

one of its stores, and Universal Music giving five

free songs to people checking in at any bar with

two friends. Loopt emphasizes the power to get

consumers into stores with its cost-per-visit model,

similar to Whrrl’s pay-per-visit approach.

• Brightkite ran a promotion with Starbucks that

used augmented reality to locate grocery stores

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MOBILE MARKETING PLAYBOOK Mobile Social Marketing46

that sell the company’s VIA products. When

finding a store selling VIA, the product’s logo could

be tapped for more information and mulitmedia

content, including videos.

Now is a good time for marketers to experiment

with location-based social promotions, as there are

opportunities to build fun, creative promotions that meet

a brand’s objectives. Marketers should find a balance

between spending their consumer dollars on reaching

a mass audience with digital, as well as experimenting

with smaller bets that can pay off in a big way to reach

influencers who can help spread the brand message

organically. Influence, not just scale, matters.

Developing a mobile social marketing strategyWhen planning a mobile social marketing program,

marketers don’t have to reinvent how they go about

developing a strategy or determining whether opportunities

make sense. There are four criteria in particular you can

use, as described in 360i’s Social Marketing Playbook,

which comprise the Social Marketing Strategic Lens.

These operate in parallel with the Mobile Marketing

Strategic Lens discussed on page 15.

• Does it use your social media arsenal? Which

assets do you have that could resonate well across

mobile social media (digital content, physical or

Bravo rewards “real housewives” with Foursquare badges.

H&M’s real products offer virtual rewards in MyTown.

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virtual goods, celebrity spokespeople, etc.)?

• Does it follow best practices for social media

– and specifically mobile social media? Does

it fit in with how consumers are using

mobile social services and technologies?

Does it take advantage of the

functionality of mobile devices (voice,

location, SMS, camera, the iPhone’s

accelerometer, etc.)?

• Does it provide a value exchange between

the consumer and the marketer?

Or to put it simply, what’s in it for the consumer?

Do consumers gain information, exclusive access,

social currency or physical goods? Why will

they care?

• Does it meet your marketing objectives?

What are you looking to accomplish, and how

does this play a role in it?

Answering all of these questions will help ensure the

program is a success, and just as important, it will

help avoid some common pitfalls.

ConclusionSocial media is driving much of the growth of mobile

media, just as it has fueled much of the growth in online

pageviews and content. New sites and applications seem

to sprout daily, while business models of existing players

continually evolve to meet marketers’ needs. Marketers

should continue to turn to the strategic lens to evaluate

opportunities, as it can increase the chances of success

for any social marketing program, mobile or otherwise.

Does it leverage your

arsenal?

Does it follow the rules

of the road?

Does it provide a value

exchange?

Does it meet your

objectives?

360i’s Social Marketing Strategic Lens

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MOBILE MARKETING PLAYBOOK Mobile Social Marketing48

THE NAIL FOR SOCIAL MEDIA’S

HAMMERINTERVIEW WITH MICKEY ALAM KHAN

EDITOR IN CHIEF, MOBILE MARKETER

ickey Alam Khan is the Editor in Chief of Mobile Marketer, the leading publisher of news, analysis and

opinions on mobile marketing, media and commerce with the goal to help marketers understand how

the mobile channel can be used alone or in conjunction with other channels for branding, as well as for

customer acquisition and retention. Following he weighs in on mobile social media, and how marketers can

approach their customers in the mobile social landscape.

M

What characteristics of mobile devices lend

themselves well to social media?

The anytime-anywhere-always-on nature of mobile

phones lends itself well to social media, which is all

about connectivity and openness. The phone is with

the user at all times, and is especially used for social

and personal occasions if it’s not a company device.

So mobile’s the perfect nail to social media’s hammer.

How much of mobile social media involves

extensions of online social media (e.g.,

Facebook, Twitter, etc.) versus offerings unique

to mobile devices?

I think online social media services such as Facebook

and Twitter rule mobile social media simply because

of brand awareness and ease of use. Of course, there

are strong social media brands such as MocoSpace,

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...Marketers must try to be friendly via social media, but not friends. Let consumers feel that they are part of the brand-building experience.

Gowalla, Flirtomatic and Foursquare that are mobile

phenomena.

Facebook and Twitter are easier to use on mobile

devices since the handset constraints require simple

design and cut to the chase. How they can monetize

social media on mobile devices is another story.

Why should marketers care about mobile social

media?

Buzz thrills – or kills. In this day and age when mobile

consumers set the tone for communications, it is

key for marketers to understand how to manage

their reputation on social media sites and services.

Anything that smacks of marketing overkill will slow

the enthusiasm for the brand.

Indeed, marketers must try to be friendly via social

media, but not friends. Let consumers feel that they

are part of the brand-building experience. Let them

feel they can personalize the relationship to the brand.

Also, I don’t think we should think of online social media

and mobile social media. They’re one – it’s the Internet

on different devices, but it’s still interactive. People have

relationships with brands regardless of channel.

What challenges can marketers expect, and are

there any ways to mitigate those challenges?

Marketers can expect consumers to be in even more

control of what marketing and communications they

prefer. Newer mobile devices and better sites and

applications will raise expectations of the quality of

messages delivered, authenticity of experience, value

delivered and privacy offered.

To avoid any social media mishaps, marketers must

understand that social media is first and foremost a

medium for consumers to communicate with each

other and shoot the breeze. Any marketing interruption

has to be a whisper, not a yell.

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ILE

APPLICA

TION

S

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Mobile app usage trendsOne of the biggest drivers of app usage is smartphone

penetration. Nielsen reports that by Q3 2011, roughly

half of U.S. mobile subscribers will use smartphones,

and smartphone market share will only increase from

there. comScore reports that U.S. mobile subscribers

are about as likely to have used a mobile browser as

they are to have downloaded apps, with both activities

growing fast quarter over quarter.

Apple’s leadership here is uncontested. More than

5 billion apps have been downloaded across Apple

mobile devices as of June 2010, and over 225,000

apps are currently available. The second largest app

market, GetJar, is an independent provider offering

apps across various platforms; it has recorded more

than 1 billion downloads.

How marketers can use mobile appsMarketers have three primary options for reaching

consumers through mobile applications:

• Advertise: Ad networks such as AdMob, Quattro

Wireless, Millennial Media, Medialets, Greystripe,

Celtra and countless others can run ads within

applications. It’s also possible to run custom

promotions directly with many app publishers and

developers. Major publishers such as top news

and weather apps may offer app ads bundled into

a broader cross-channel deal. Ad formats include

text, video, polls, lead generation forms, click-to-

call, store locators and games.

• Integrate: Marketers can work with select app

publishers and developers to create custom,

integrated experiences that are far more involved

MOBILE APPLICATIONSKEY FACT More than 5 billion apps have been downloaded from the iTunes Store

GOALS IT ACHIEVES Engagement, branding, customer retention

BEST INTEGRATION POINTS Search, display, in-store, digital word of mouth

Applications have become an enduring form of mobile media, thanks in large part to the ease of buying apps from Apple’s App Store and the increased usage of apps on Google Android handsets. The growing popularity of apps creates new challenges for marketers, as consumers’ attention is split between apps and the mobile web. Marketers will have to prioritize and make tough decisions when allocating finite resources.

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MOBILE MARKETING PLAYBOOK Mobile Applications52

than ad buys. Several such examples are included

in the Mobile Social Marketing chapter. Some apps

even reject standard ad units and will only run

custom promotions. These are of course harder to

develop and scale than running a mobile banner

across thousands of apps, but the impact can be

considerable, as marketers may find deeper ways

to connect with their target audiences.

• Build: Building applications is an option for

marketers, and the examples below show how

apps have successfully been developed to fit in

with a marketer’s overarching goals. There are

several challenges though:

- Most popular apps are for gaming and

entertainment, which may be a fit for certain

entertainment and CPG brands but

is often not in line with objectives for

other marketers.

- Marketers will need to allocate

sufficient budget to build the app

and promote it. Without a strong

commitment to promotion, the app

may never gain enough visibility to

break through the tens or hundreds of

thousands of other apps. Marketers

should also consider what channels

they have available for promoting the

app, from email to in-store to branded

social profiles.

- App development requires an ongoing

commitment. The best apps, branded

or unbranded, go through constant iterations as

they improve based on consumer input, internal

ideas and changes in the technological capabilities

of mobile operating systems and handsets.

Updates also encourage consumers – who may

have moved on to other apps – to return and give

it another shot. This kind of commitment takes

strong leadership and buy-in to muster the time

and budget required to keep it going, especially if

the app takes time to gain traction.

How marketers are using branded appsMarketers have already deployed thousands of custom-

built apps. The application examples provided here are

for the iPhone, since marketers tend to follow the lead

of both consumers and developers in starting with the

most app-friendly platform, but marketers have also

found success creating apps for Android, BlackBerry

and other operating systems.

KraftKraft’s iFood Assistant, one of the first

and still most popular branded mobile

apps, helps grocery shoppers decide

what to buy and offers recipe ideas for

home cooks. The most entertaining

content, cooking videos, still serves a

very functional purpose, and consumers

are willing to pay $0.99 for the privilege –

money they can potentially earn back by

reviewing the “budget wise” suggestions

within the app.

Kraft’s dedication to fulfilling home cooks’ needs has made the iFood Assistant a perennial top seller.

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Tiffany & CoConsumers shopping for products with higher price

points than a typical grocery list can also find relevant

apps. Tiffany & Co created an app that lets marriage-

minded consumers browse engagement rings and

schedule expert consultations via phone or in-store.

The app includes a tool, shown below, that lets users

place a ring on the screen to determine what size it is.

What about the iPad?The iPad is on track to be one of the fastest selling

mobile devices ever, if not the fastest. In short, it

matters. Yet it’s not a mobile device in the traditional

sense. It’s more of a stationary device, used in

situations where one is sitting in one place, whether

it’s at home, at work, at a coffee shop, or on the train.

Silicon Alley Insider analyzed the top 50 apps for the

iPhone and iPod Touch and compared them to the top

iPad apps. Games and utilities were popular for both

groups, but iPad users also showed strong interest in

content and productivity apps. iPad users are more

inclined to lean back and consume content or lean

forward and get to work.

The iPad may in time resemble the iPhone more,

presumably with a front-mounted camera in a future

edition to enable video chat and other app interactions.

But it will never be as portable as a device someone

can stick in their pocket. Click-to-call won’t matter at

all, and location won’t matter as much. For a marketer

targeting an audience that’s using the iPad or sees

how the iPad fits into ways to achieve marketing

objectives, the options of advertising, integrating and

building remain relevant. Additionally, publishers and

marketers will continue to mine the possibilities for

using the iPad to distribute digital content and adapt

traditional media such as books, magazines and

feature-length videos. The device is the best format

to date for adapting the aesthetics and intuitive format

of traditional content, while providing enhancements

such as interactivity and portability.Tiffany’s little blue (and white) app helps consumers shop for gifts in little blue boxes.

Utilities

Games

UtilitiesGames

Productivity

Content

Top 50 Apps by Category

iPhone/iPod Touch

Includes top 25 paid and top 25 free apps for each deviceCategory determined by SAI, not by iTunes categorization

Source: Sillicon Alley Insider

iPad

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MOBILE MARKETING PLAYBOOK Mobile Applications54

Evaluating mobile platforms for developing appsThe mobile landscape is fragmented into an

alphabet soup of competing technologies, platforms

and standards. Should you build for the iPhone,

Android and BlackBerry, or should you concentrate

on just one platform? Should you support both the

iPhone and iPad? What about the different versions

of Android?

There isn’t one, simple answer – and there won’t be

anytime soon. The key to developing a successful

mobile app or website is to select the devices and

technologies that make the most sense for your brand

and consumers.

There’s no question that iPhone and Android apps

get the most buzz. They’re sexy, slick and run on the

latest, most powerful devices backed by technology

titans Apple and Google. However, there is a gap

between the number of apps available for these

growing platforms and the number of people who

actually own the devices.

In the chart below, at first glance, it may seem that

Java, Flash Light and Symbian are the natural choices

Mobile Devices vs. Apps Available

Device Installed Base (est. Q2 2010, in millions) Number of Apps Available in App Stores (Q2 2010)

3500 3000 2500 2000 1500 1000 500 0 0 50,000 100,000 150,000 200,000 250,000

Symbian

iPhone (iOS)

Android

Java ME

BlackBerry

Flash Lite

WindowsPhone

Source: VisionMobile, licensed under Creative Commons Attribution 3.0 License. Any use or remix of this work must retain this notice.

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for app development with their large install base.

However, it’s worth noting several points about this

data:

• Older platforms (such as BlackBerry and Windows

Phone) lacked app stores until very recently, which

accounts for the low number of available apps.

• It took the Java ME platform (which represents

the majority of “flip” phones) more than 7 years to

build its library of 45,000 apps, while the iPhone

took just 2 years. Development activity on Java ME

platform has slowed significantly as consumers

turn their attention to smartphones.

• Some platforms are easier to develop for than

others. iPhone OS and Android are developer-centric

platforms, while developing for the BlackBerry or

Windows Phone is much more complicated.

Developers are definitely paying more attention to

the newer platforms. More importantly, iPhone and

Android users are much more likely to download

and use apps than users of all other platforms. This

makes these two platforms (and, to a lesser extent,

the BlackBerry) the current platforms of choice.

The difference between mobile websites and appsA mobile website is much the same as a regular

website. Both are viewed inside a browser, but mobile

websites are built to run on the smaller screens of

mobile devices.

There are two ways to approach mobile websites. First,

it could be a mobile version of your existing website.

This typically provides the same content and close

to the same functionality available on your existing

website. The primary difference is that the content

and functionality is optimized to display in a mobile

browser. This is something all companies should

consider doing. The fact is that mobile browsing is

growing by leaps and bounds, and providing a mobile-

optimized experience is fast becoming a requirement.

The second type of mobile website is more like an app

in that it provides specific functionality. For example,

a car insurance company may have a mobile website

that allows users to begin the insurance quote process,

but does not provide every other service available on

the company’s website.

A mobile app is an actual program that’s installed on

a mobile device – the same way Microsoft Word is

installed on your computer.

Mobile App Mobile Website

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MOBILE MARKETING PLAYBOOK Mobile Applications56

Mobile App Mobile Website

Required Platform Must be developed for each platform individually (such as iPhone, BlackBerry, Android)

Runs on all mobile devices with a browser (though there can be different requirements for different browsers)

Development Costs Can be more expensive if developing for multiple platforms

Often less expensive if limited to standard mobile browsers

Barrier to Entry Apps must be downloaded and installed on a device before use

Like regular websites, users need only link to the mobile website to use it

Marketing A well-defined strategy is required to break into the top apps lists on app stores

Marketing options for mobile websites are similar to those for regular websites: SEO, traditional media, blogs, Twitter and other social media. Additionally, mobile websites can be impacted by viral links.

Approvals &

Distribution

With a few exceptions, apps must be approved before they can be distributed via an app store.

Mobile websites have no external approvals, but also have no highly trafficked distribution channels

Market Size Limited to the number of users on the selected platform(s)

Any mobile device with a web browser

Usage of Native

Device Capabilities

Able to use all device capabilities (such as the GPS, camera, voice, Bluetooth, RFID, address book and calendar)

It is possible to use features like GPS, offline data storage and video from within mobile websites using the latest mobile browsers, which support HTML5.

Access from the web to some native capabilities of mobile devices is still limited due to security and privacy concerns (e.g., access to address book or calendar)

Upgrades More effort is required to release app upgrades due to app store approval processes; therefore, making quick, small changes can be challenging

Upgrades are simpler to release due to lack of external approval process

There are some important differences that should be understood when making a decision on whether to build a

mobile app or website, as shown in the table below, adapted from DudaMobile:

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Methodology for mobile app and website developmentIt’s critical to have a process for evaluating whether a

mobile app or website is best for you. The questions

below dovetail with the Mobile Marketing Strategic

Lens (see Planning in Mobile Marketing, page 15) but

go into far more detail for this scenario.

1 Define the value propositionFor every successful mobile website and app,

there are thousands that aren’t used or languish

in app stores. Make sure that your mobile website

or app has the potential to rise to the top by

validating the concept.

• Is it useful to consumers?

• Are there existing apps or mobile websites

that do the same thing? If so, what are your

differentiators?

• How will it benefit your brand and business?

2 Determine your target audienceIf it’s too broad, your mobile website or app may try

to do too many things poorly instead of a handful

of things well. If it’s too niche, there might not be a

large enough audience to be worth the effort. The

key is to determine the audience that will get the

most benefit from the mobile website or app, and

then tailor functionality to meet their needs.

Mobile App Mobile Website

Entry Costs Some app stores charge extra fees for publishing or certifying your app (Apple charges developers $99 and enterprises $299; Research in Motion charges $200)

None

Revenue Share Need to share sales revenue with the app stores (Apple takes 30%, Research in Motion takes 20%)

100% publisher/owner

User Experience Full control of user interface; ability to build rich user experience

Limited to the capabilities of HTML/CSS. User experience will largely depend on how the mobile website is designed and rendered in the browser

Performance Able to achieve high performance through app code that runs locally on the device

Depends on website design and data connection speed, but generally less immersive and responsive than apps

Offline Browsing Apps allow to download content and work offline

HTML5 enables it to some extent, but only on select devices

(continued from previous page)

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MOBILE MARKETING PLAYBOOK Mobile Applications58

3 Choose a vehicleThere are several decisions to make when

selecting a platform for mobile development.

First decide whether to build a mobile website

or app.

Build an app if your concept requires any of the

following:

• Rich, interactive graphics and user interface

• High performance

• Usability without an Internet connection

• Use of native device capabilities (such as the

GPS or camera)

• Access to other applications on the device

(such as the address book or calendar)

Build a mobile website if your concept requires

any of the following:

• More frequent updates

• Shorter development times (in most cases)

• Less need for an immersive user interface,

and more focus on presenting data

• Lower barrier to entry (no installation required)

Mobile websites can work perfectly well for product

information, comparison shopping, store or venue

location, basic information about entertainment

properties and commerce. Advanced elements

such as games and barcode scanners don’t work

as well, or at all, on mobile sites. If you want to

provide immersive entertainment or rich product

demos, such experiences may only be possible

through apps.

If building an app, choose a platform

Your first step toward a decision should be

taking a look at the web server logs of your

existing website. You may find that you’re

already receiving traffic from mobile devices,

and understanding which devices can help

guide your platform decision. Developing for

multiple platforms at once is generally a risky

decision – especially if the concept for your app

is unproven. Instead, marketers can mitigate risk

by picking one platform to focus on and learning

from and applying any lessons into the releases

for subsequent platforms.

4 Select trackingTracking is critical to your mobile app’s success.

Understanding how users are interacting with

your app will guide future releases. Established

tracking and analytics vendors such as

Omniture, CoreMetrics, WebTrends and Google

Analytics have solutions for tracking mobile

websites, although these solutions aren’t always

appropriate for apps. A number of services have

sprung up to fill this gap, tracking everything from

the number of installations, geographical location

of app users, app revenue, and app usage and

behavior. Select vendors include:

• Pinch Media (http://pinchmedia.com)

• AppClix/Mobilytics (http://appclix.com)

• Localytics (http://localytics.com)

• appFigures (http://appfigures.com)

• Flurry (http://flurry.com)

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Beyond tracking your mobile app or site, also

keep an eye on your main website’s analytics to

determine if significant numbers are arriving from

mobile devices, and view the trends over time.

An influx of mobile visitors may help justify the

investment in a more robust mobile presence. Be

sure to take a good first-hand look at the experience

on your sites for visitors using the mobile operating

systems represented in your reports.

5 Decide price pointThere are several ways to approach app store

pricing:

• Free: If your goal is to encourage as many

downloads as possible, then a free app is

the way to go. Marketers looking to generate

buzz should almost always select this option.

• Minimal Initial Charge with In-App

Payments: Both the iOS and Android

platforms allow for the distribution of low-cost

apps (generally $0.99) that contain in-app

opportunities for up-selling. For example,

Apple’s own iBook e-reader app is free, but

users can then purchase individual books

from within the app. Many games also use

this functionality, allowing users to buy game

items or access to advanced levels.

• Paid: App Store pricing trends change over

time, although $0.99 is still the de facto

standard. More complex apps generally fall

between $2.99 and $9.99. A small number of

specialized applications (such as navigation

apps) can be upwards of $50, but these

apps are rare.

Below is a table of the price point distribution for

the 200 most downloaded paid apps on Apple’s

App Store as of July 2010:

# of Apps Price

126 $0.99

33 $2.99

21 $1.99

14 $4.99

3 $6.99

2 $3.99

1 $7.99

1 $14.99

1 $49.99

• Free and Paid Version: An option that’s

been widely adopted over the past year is to

release both free and paid versions of apps.

This strategy allows users to experience

your app with limited functionality, and then

upgrade to the full-featured version once

they’re hooked.

6 Integrate advertisingSee the chapter on Mobile Advertising to learn

more about how marketers can run advertising in

mobile applications.

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MOBILE MARKETING PLAYBOOK Mobile Applications60

Best Practice Mobile Website or Mobile App

Mobile devices have different screen sizes and resolutions; create an interface that

scales to fit

Both

Quick startup or load time Both

Sideload content as-needed instead of all at once Both

For forms, use vertical scrolling instead of multi-page steps Both

Plan space for advertising elements Both

Use a clear, concise taxonomy that avoids jargon Both

Keep copy and marketing messaging succinct Both

Convert large graphics, charts and graphs to list-based data for easy viewing Both

Refrain from using Flash as even platforms that support it do so poorly Mobile Website

Use fewer images for faster loading Mobile Website

Use a subdomain rather than a .mobi top-level domain (such as m.yourbrand.com

instead of yourbrand.mobi)

Mobile Website

Allow time for app store approval processes Mobile App

Plan for licensing fees Mobile App

Include support for native device features where appropriate (such as GPS or the

camera)

Mobile App

Best Practices for Mobile Websites and Apps

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7 Plug in social networksUsers are increasingly engaging with social

networks via mobile devices. Marketers can take

advantage of this trend by embedding social

technology inside mobile websites or apps.

The largest and most obvious option is using

Facebook. Facebook’s API allows you to share

app activity (such as a high score in a game, a

purchase or an event) back through the social

network.

A good rule of thumb is that any social network

API available to a traditional website is also

available to a mobile website or app. Some social

networks have created mobile-specific APIs to

ease integration for developers.

8 Refine over timeFinally, users expect apps to be updated over

time. Evaluate user feedback, tracking data and

changing business goals to create a roadmap for

app updates.

Most importantly for both mobile websites and

apps – remember that you are designing an

interface for a finger, not a mouse. Positioning of

elements on the screen, and control gestures such

as pinch, zoom, and drag are unique to mobile.

Flash vs. HTML5The rise of the mobile web and smartphones set

the stage for an unexpected conflict: Adobe’s Flash

platform vying for relevance against HTML5 and other

related web technologies.

BackgroundFor years, Flash has been a de facto standard for web

content, with a market penetration of 95% to 99%.

No other technology competed with its support for

animation, interactivity, and video, or with its browser-

agnostic and cross-platform availability.

The iPhone, however, has never supported Flash, and

Steve Jobs has declared it never will. Apple instead

has cited that much of the web’s content was available

on its phone, and content providers can use an

alternative: HTML5.

A new challenger arrivesHTML5 is the newest version of the language that

powers the web. It represents an attempt to adjust to

the dramatic changes the web has undergone in the

decade since the last major revision. Most significantly,

it offers developers built-in tools to handle animation,

interactivity and video — all the areas in which Flash

has a virtual monopoly.

Apple has a huge amount of influence over HTML5’s

immediate fate, because of WebKit — the rendering

engine that powers not just the iPhone browser, but

most other “full” mobile browsers. Because WebKit is

so widely used, any technology it supports will achieve

market penetration extremely rapidly.

The impact on marketersAs new technologies grow in popularity, marketers

must find ways to take advantage of them. Flash’s

long-time dominance on the web has provided the

time to develop a variety of ways to use its capabilities

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MOBILE MARKETING PLAYBOOK Mobile Applications62

to create effective and interesting advertisements.

But the mobile space is still in its infancy, and it remains

to be seen how much of the technology that’s already

been developed will be transferable to it. Without

question, HTML5 is going to be an important tool, and

the first companies to master it will reap the benefits.

Developers and creatives will need to learn new skills

to take advantage of the opportunity.

Don’t get lost in the hypeIf HTML5 displaces Flash on the web, it will inevitably

begin to do so on the desktop as well, over time. But

Flash is hardly dead yet. There are still many things

that Flash can do that can’t be duplicated with HTML5,

and Flash has the additional advantage of a huge

developer base and a mature suite of development

tools. Even in the worst-case scenario, Flash won’t be

going anywhere soon.

ConclusionFor the foreseeable future, both apps and the mobile

web will keep taking up more of consumers’ time and

attract wider audiences, especially as smartphone

penetration takes off. The competition for attention within

the app market is daunting, and standing out requires a

marketer’s steadfast commitment. If creating a branded

experience isn’t the best fit for a marketer’s plans and

goals, there are still other ways to reach consumers.

Some of the toughest decisions will be whether to

prioritize mobile app or website development, as both

figure prominently into mobile users’ consumption

habits. Use the criteria in this chapter to evaluate which

option will best achieve your goals.

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alerie Brown is the Director of Consumer Marketing at BRAVO where she is responsible for the advertising

and promotion of BRAVO’s slate of original programming across all platforms, including broadcast, print,

radio, out of home and digital media. During her six-year tenure with BRAVO, she has forged consumer-driven

marketing partnerships and content promotions with major digital media firms such as Twitter, Facebook

and Foursquare. 360i sat down with Valerie to learn more about BRAVO’s mobile marketing objectives, the

challenges of building versus integrating in the crowded mobile app space and more.

v

What are BRAVO’s goals when it comes to

mobile marketing? How do you approach this

channel as it ties into your overall marketing

and business objectives?

The greatest challenge facing television marketers

today is the decrease in live viewing, and the increase

of what we call time-shifted viewing or DVR viewing.

Mobile marketing presents a unique opportunity in our

daily task of engaging the consumer before, during

and after our show, wherever the user is. We would

be remiss to not factor in such a personal device

into our marketing strategy given its ever-increasing

importance in the consumer’s lifestyle. Our goal and

challenge is to engage the influential BRAVO viewer

who is affluent, engaged and tech forward. 80% of our

mobile users are on smartphones, a valuable insight

that validates numerous successful applications on

the iPhone and iPad such as BRAVO Now, Top Chef

Foodie Fight and Guides by BRAVO, to name a few.

HOW MOBILE MARKETING CAN FUEL BUZZ ENGAGEMENT

FOR ENTERTAINMENT BRANDS

INTERVIEW WITH VALERIE BROWN

DIRECTOR OF CONSUMER MARKETING

BRAVO

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MOBILE MARKETING PLAYBOOK Mobile Applications64

Mobile marketing presents a unique opportunity in our daily task of engaging the consumer before, during and after our show, wherever the user is.

Finding deeper levels of engagement extends and

strengthens our brand identity off-air. Our iPhone

application, Guides by BRAVO, offers nightlife,

dining and shopping recommendations, including

suggestions from our BRAVO-lebrities. In addition,

live experiences such as the BRAVO Talk Bubble

encourage viewers to tune-in live for a chance

to tweet with their favorite BRAVO-lebrities. Our

emerging media team maintains a consistent

dialogue with the consumer, pushing messages via

SMS/MMS, introducing them to several successful

initiatives such as our mobile clubs as well as to on-

air experiences such as live voting to engage fans

deeper into BRAVO content and experiences.

BRAVO was one of the first brands to partner with

the location-based social platform Foursquare.

Why did you decide to be part of the initial test

with Foursquare, and how did this align with your

objectives?

Foursquare’s mission of ‘go out and do something’ fit

seamlessly into our mission to engage and create a

deeper bond with the consumer on a local level, as

well as a medium to offer tips and recommendations

from our stars such as Isaac Mizrahi.

It was also an opportunity to reinforce BRAVO as an

innovator. In being the first entertainment partner,

we created meaningful mobile content and rewards

for viewers. Recently, we partnered with Sephora,

a like-minded brand in offering Foursquare Real

Housewives badge holders coveted, tangible

rewards that were endemic to the show. The buzz

generated exceeded expectations. In addition,

Foursquare provides a unique opportunity

for advertising partners in reaching influential

consumers such as Real Housewife or Top Chef

badge holders who are more likely to recommend

a new product or venue. Imagine checking into a

department store and being rewarded as a Top

Chef badge-holder with a 20% discount. This is

the potential we see for Foursquare, and why we

partnered with them. Our next steps are exploring

opportunities for scale.

When do you look to integrate with apps such

as Foursquare versus building your own, such as

your iPhone Application, Guides by BRAVO?

It’s a parallel path. Tremendous challenges exist in

building a custom application such as timing, cost

and resources in creating and refreshing content. A

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65blog.360i.com twitter: @360i

partnership with an existing application with scale

allows us to reach digital influencers in the most timely

and cost-effective fashion. In addition, we develop

proprietary apps that speak to the core viewer where

we can leverage existing efficiencies.

How much of mobile marketing is about

promoting the TV programs and driving tune-in

as opposed to staying top of mind wherever your

viewers are and whatever they’re doing?

Until sufficient metrics demonstrate how mobile

marketing can affect a rating, our philosophy is to

be relevant, buzzy and ubiquitous. Being top of mind

is first base, and home plate is always the rating.

Custom applications, innovative partnerships and

inventive, integrated advertising allow us to achieve

this goal.

What are you finding most exciting among what’s

emerging in mobile marketing?

Mobile social applications such as BUMP are on our

radar as well as emerging opportunities in the location

aware space. With digital leaders such as Google,

Twitter and Facebook now investing in this space,

location-aware marketing and mobile marketing

overall can no longer be ignored.

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How consumers shop via mobile devicesThere are three primary ways consumers use their

mobile devices to shop:

1 As part of the research process before they are ready to make a purchase

2 In-store when ready to make a purchase decision

3 Completing transactions directly from the handset

Compete illustrated mobile’s role in research in a

study of the travel industry. It reported that less than

1% of consumers use mobile exclusively for travel

research and booking, but 30% of consumers use

mobile in conjunction with online research, and 22%

use mobile in conjunction with online booking. Even

if it will take time for consumers to be comfortable

planning and booking trips using mobile devices, it’s

already playing a role in the process, a role that will

only grow as marketers develop and enhance their

mobile offerings.

MOBILE COMMERCE SH0PPINGKEY FACT 44% of smartphone users have downloaded shopping apps

GOALS IT ACHIEVES Sales (online, mobile and offline), purchase consideration

BEST INTEGRATION POINTS Search, display, in-store, print, out-of-home, online

Mobile commerce is in its infancy, with relatively few consumers making purchases directly

from their mobile devices, and relatively few retailers and marketers offering an easy way for

consumers to do so. Yet consumers are increasingly shopping via mobile handsets, as they

research products and services before completing transactions in stores or online. Coupons

delivered via mobile media are sending more consumers to stores, and several competing

formats of mobile barcodes are delivering product information largely to smartphone users.

The accelerated intersection of mobile, local, social and commerce is erasing the distinction

between online and offline environments.

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MOBILE MARKETING PLAYBOOK Mobile Commerce & Shopping68

Compete further broke down all the ways smartphone

users shop. The greatest numbers use their phones

to get second opinions while they shop (62%) and

look up store locations or hours (53%). Another 44%

have downloaded a shopping application to their

phone, and 39% seek retailer or product coupons.

Compete noted 44% of consumers with smartphones

use their devices to check prices of items while

shopping in stores. eMarketer Senior Analyst Jeffrey

Grau recently cited this trend as well, noting, “Until

now, researching online and buying in a store have

been sequential activities that take place hours, days

or even weeks apart. But customers who bring their

web-enabled mobile phones with them into a store

can do online research at the point of a purchase

decision.”

Scott Dunlap, CEO of mobile shopping service

NearbyNow, recommended to eMarketer what

retailers should do. He said, “Mobile shoppers are

simultaneously in the physical world and in the

online world at all times… They just don’t want to

feel stupid by finding out later that [a product is]

30% off on an online shopping site. I think it’s very

smart for a retailer to put a mobile shopping app in

front of consumers because if they end up going to

Amazon.com, that retailer is going to get underbid—

guaranteed. Retailers need to reward people for

showing up in their stores.”

Mobile commerce is starting to become more

commonplace, as well. A Mobile Marketing

Association Survey from May conducted with Luth

Research noted that 17% of U.S. adult mobile phone

owners used their phone to purchase apps, ringtones

and other content. Another 6% received coupons

or discounts from their phone, and 6% purchased

physical goods or non-mobile content from their

handsets.

A Forrester Research study in conjunction with

Shop.org released in June indicates the progress

being made, noting 74% of U.S. online retailers

have a mobile strategy or are developing one. Yet

retailers say consumers using mobile web browsers

account for less than 3% of total site traffic and 2%

of revenue.

(Behaviorally targeted survey, Jan-Feb 2010, n=1246)

Mobile Phone Use for Travel Research and Bookings

Mobile Only

Both

Online Only

Research Booking Total

100%

80%

60%

40%

20%

0%

0.4%

30%

69%

0.2%

22%

78%

0.3%

26%

73%

Source: Compete.com

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Mobile coupon usageCouponing is already a booming industry in a global

economy bouncing back from a recession. The

New York Times cited retail technology firm Inmar’s

figures showing 50 million coupons were redeemed in

2009, up 263% over the previous year. Coupons are

attracting even more interest now thanks to advents

in mobile marketing. Borrell Associates forecasts that

U.S. mobile coupon spending will climb from $90

million in 2009 to $6.53 billion in 2014, though it’s still

well below Internet coupon spending, which will grow

from $4.2 billion to $22.6 billion over that span.

Mobile couponing is promising in that it rewards

consumers for trekking to retail stores. Like the age-

old store-distributed paper coupon, mobile coupons

incentivize purchases, but go one step further to

Mobile Shopping-Related Activity

How often did you perform each of the following shopping-related activities on your smartphone while shopping and away from your computer?(Percent of smartphone owners who perform the following activities at least once a month, n=1246)

Call, text, or send a picture message to someone to get their opinion on a product while in a store

Look up the address of a store or the store hours

Check the price of an item while at a store

Review a product description

Check the status of an order that I originally placed online

Look for retailer or product coupons

Look up shipping information of an item that I am considering purchasing online

Check to see if an item is available for in-store pickup

Make a purchase on my smartphone

Read a review while in a store

Check the status of a rebate I recently submitted

62%

53%

44%

44%

41%

39%

37%

37%

35%

35%

29%

Source: Compete.com

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MOBILE MARKETING PLAYBOOK Mobile Commerce & Shopping70

capture handset data for future marketing efforts.

Creating a mobile-friendly environment is crucial for local

store managers, who should ensure that signal levels

on all major carriers are strong within their floorspace.

Otherwise, prospects may leave to find a signal.

360i Vice President of Retail & ECommerce David

Randolph wrote about coupons on 360i’s blog in April

2010, saying, “This is the time for retailers to be in

full testing mode. Mobile is a long way from mass

penetration, but growing in its importance as a staple

of marketers’ plans.”

How mobile coupons workMobile couponing can be effective for customer

retention, driving consumers to the store or reaching

consumers when they’re in the store. A benefit of mobile

coupons compared to their print counterparts is that

consumers always have their mobile devices with them.

There are many ways to allow consumers to sign up

for coupons:

• Set up an SMS program for consumers to retrieve

coupons through their mobile devices. IHOP

offered consumers a free short stack of pancakes

to anyone who texted “IHOPFREE” to a certain

shortcode.

• Allow consumers to sign up online to receive

offers to the phone – through a website, a deal or

coupon site or a branded presence elsewhere such

as through a social network.

• Partner with location-based ad networks and

technologies such as Placecast, iLoop Mobile and

NearbyNow, along with other mobile ad networks

discussed in the Mobile Advertising chapter, to

target consumers with offers in specific locations.

Consumers can receive offers directly from the

mobile ads.

• Offer coupons through out-of-home technologies

such as Blue Bite that deliver coupons in select

stores or outdoor environments via Bluetooth or

Wi-Fi networks.

Coupons can generally be redeemed in stores at a

register by having the consumer show the cashier

the coupon, and the cashier can enter the code. It’s

also possible to scan the phone directly. A pioneer in

the space is Target, which in March 2010 claimed to

Mobile coupons can be delivered via text message, custom apps, barcodes or other formats.Image source: joepemberton on Flickr

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be the first national retailer offering scannable mobile

coupons. Consumers can sign up online, at Target’s

mobile site, or by texting “coupons” to 827438

(TARGET). Consumers are then directed to a landing

page with multiple offers available at the nearest

Target, all of which can be redeemed by scanning a

single barcode at checkout.

Other forms of coupons are evolving through social

media. Foursquare reported that when Starbucks

offered $1 off any size Frappuccino for its mayors,

there were 50% more check-ins at its locations.

Milwaukee hamburger restaurant AJ Bombers

offered a free cookie to any Foursquare user that

added a tip and a free burger for mayors, and it

netted a 30% increase in purchases. During summer

2010, Twitter launched its @earlybird account

to deliver exclusive offers from marketers, and

marketers should expect the program to expand

to local and mobile versions if it’s successful.

Mobile applications can also connect with

marketers’ loyalty programs. For instance, dessert

chain Tasti D-Lite allows consumers to earn points

(and ultimately free products) by broadcasting

their check-ins and orders across Foursquare,

Twitter and Facebook. The CardStar mobile app

for smartphones provides a way for consumers to

manage their reward cards for a range of marketers

while also offering coupons and deals.

The technology behind mobile couponing is still in

its early stages but is progressing rapidly. The New

York Times covered an IBM product called Presence,

reporting, “Shoppers who sign up can be detected

as soon as they set foot in a store. That enables

Presence to offer real-time mobile coupons. And

tracking shoppers’ spending habits and browsing

time in various departments can help the system

figure out who might be moved to suddenly buy a

discounted item.” IBM further noted it is employing

“predictive analytics,” a field that has developed

rapidly online. Through mobile media, analytics can

connect online and offline behavior.

Target consumers can redeem multiple coupons with a single mobile barcode.

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Mobile payment optionsAs consumers increasingly complete transactions

directly from their mobile devices, there are many

overlapping and competing ways to pay for purchases:

• Credit cards: While credit cards are ubiquitous

for most mobile phone owners, entering a 16-digit

credit card number on a tiny keyboard or touch-

screen can try consumers’ patience, especially

when consumers must also enter billing and

shipping information.

• Stored registration by site or application: Sites

such as Amazon have many users’ registration data

on file, and billing and shipping preferences carry

over to their mobile sites and applications. It’s a major

time saver for users, but only for loyal customers who

already made a purchase through that site.

• Stored registration by handset: The defaults for

making purchases for applications via the iPhone

and Android respectively are through iTunes and

Google Checkout payment services. These make

it easy to buy mobile content, but also consumer

products, as Apple demonstrated with its Apple

Store app that accepts payment via iTunes logins.

• Credit card applications: Visa developed its

In2Pay application that works with a custom

iPhone case that can be scanned at retailers’

contact-free terminals to instantly process the

transaction. Rival MasterCard is letting developers

use its payment technology in their mobile and

web apps and launched its MoneySend app as a

PayPal rival. Going forward, look out for a program

reported by Bloomberg where Discover Financial

Services and Barclays are working with AT&T, Verizon

and T-Mobile to develop a way for consumers to pay

by swiping their smartphones over terminals.

• Pay via phone bill: Services like Boku allow

charges to appear on a consumer’s mobile phone

bill after opting in via SMS.

• Peer-to-peer payments: PayPal created an app

incorporating Bump Technologies that allows users

to pay one another by tapping their iPhones together;

payments can also be sent from the app via email.

Startups like Venmo also allow mobile money transfers.

• Scan credit cards with mobile devices: Square,

launched by Twitter co-founder Jack Dorsey,

allows any merchant or user to accept credit

card payments directly from the mobile device.

Retailers could provide these devices to their sales

associates or collect payments at events.

Square turns any smartphone into a credit card terminal

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Mobile barcodes Another quickly developing technology within mobile

marketing is the use of mobile barcodes, and there

are many competing formats. While most barcodes

require applications to read them and are much more

accessible via smartphones, they’re often an efficient

vehicle for linking the physical world with mobile media.

Some barcode scanning applications like ShopSavvy

and RedLaser center around standard UPC (1D)

barcodes that are commonly printed on product

packages. 1D barcodes have the advantage of already

existing on countless consumer products, but they’re

more difficult to create and customize.

There has also been traction with 2D barcodes, often

thought of as QR codes (beyond QR, there are other

similar formats such as data matrix). Additionally,

there are many propriety barcode formats built on 2D

technologies, several of which are discussed below.

2D barcodes tend to be easy to create, and they can

bring up a range of content such as links to mobile

websites, text messages, click-to-call phone numbers

and multimedia.

Google in particular is especially bullish about QR

codes, incorporating them into Google Places. Local

businesses can download QR codes that link to a

mobile edition of their Google Place listing, or a mobile

coupon. The business can then use these codes in

stores, in print ads or on other promotional materials.

Additionally, Google has emphasized QR codes to

promote apps for its Android devices. Since Google

currently has no app store online, app developers use

QR codes to link to their mobile applications, as Yahoo

did to promote its suite of apps.

Barcode case studiesUniversal Pictures and RedLaserTo promote the release of the Jude Law film “Repo

Men” that included barcode scanning as an integral

(and gruesome) part of its plot, Universal Pictures

Yahoo! promoted its mobile apps with QR codes.

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MOBILE MARKETING PLAYBOOK Mobile Commerce & Shopping74

incorporated barcodes into its print movie posters

in a program developed in conjunction with 360i.

When accessed with the popular barcode scanner

RedLaser, a landing page appeared with exclusive

content related to the film. This was a rare example of

1D barcodes leading to entertainment content instead

of product information.

Bosch and QR codesTo promote its VitaFresh refrigerators in Germany,

Bosch placed oversized, wrapped packages of meat

purportedly coming from dinosaurs, mammoths and

saber-toothed tigers in supermarket freezers. The

packages included QR codes that linked to product

information for its appliances, garnering 75,000 views

from customers in the stores.

Unilever and JagtagWhen Unilever launched its new men’s grooming

product Axe Twist, it created custom branded barcodes

with Jagtag. The codes could be photographed

and sent via MMS (multimedia messaging service)

to 524824. Consumers in return received exclusive

video clips that Axe produced with comedy site

Funny Or Die.

Select barcode scannersThere’s more than one way to scan a barcode. Here

are some of the more interesting scanners to consider

for marketing programs, included because of their

consumer popularity, marketing applications, technical

capabilities or all of the above.

JagtagSupports: Proprietary format, which can be branded

Features: Consumers take a picture of the Jagtag

barcode and send it via MMS to receive special links,

content, deals or other information.

Microsoft TagSupports: Proprietary format, which can be branded

Features: Microsoft emphasizes the control

marketers have over creating and tracking barcodes

through this format that must be scanned with a

proprietary reader. Microsoft

reported that more than 1

billion tags have already been

printed. A range of marketers

and publications are using tags,

from the Mall of America to Get

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75blog.360i.com twitter: @360i

Married magazine. Scan the microsoft tag on the

previous page to access a must-read blog.

RedLaser (acquired by eBay in June 2010)

Supports: 1D

Features: Scan product barcodes to look for local

and online retailers, food allergens, nearby libraries,

and other information.

ScanLife Supports: 1D, 2D and proprietary EZcode

Features: The reader scans a range of barcodes,

including its own EZcode (pictured at right). Anyone

can create EZcodes for free, but for a fee, business

accounts have more options for what actions can be

taken with the code. Premium

accounts also include analytics

for the number of scans, unique

users, time of scan, handset,

carrier and demographics

(where available).

ShopSavvy by Big in JapanSupports: Primarily used for 1D, but also works with 2D

Features: With a user base of more than 5.5 million,

the app includes inventory and pricing information

from over 20,000 retailers. Big in Japan also offers

AdOns – ads targeted based on the product scanned

and its location. Ads can include content such as

product information and video, and its offerings in

the works include food and allergy information, comic

book previews, event tickets, coupons, trailers and

product reviews. Ads are sold on an auction basis for

popular barcodes or locations.

Stickybits Supports: 1D and proprietary barcodes

Features: The Stickybits scanner, powered by

RedLaser, allows anyone scanning a product’s

barcode to leave comments with text or multimedia

and view every “bit” others have recorded. The

scanner also works with Stickybits codes available

for free on the site or as stickers that can be ordered

for a fee. Brands can work with Stickybits to have

their own content listed first when their products

are scanned.

ConclusionThe good news for retailers, packaged goods

brands, travel marketers and others is that there

are no longer technological hurdles to deliver

product information, offer coupons and complete

transactions through mobile devices. All of this is

especially easy to accomplish with smartphones,

and in 2011, smartphone penetration should

handily surpass the more limited feature phones in

the United States.

However, other hurdles are numerous. Coupon

scanners can be difficult to implement at the point of

sale. Staff in stores must be trained how to accept

mobile barcodes or SMS-based coupon codes.

The wide variety of barcodes – including the names

(1D, 2D, UPC, QR, etc.) – create confusion among

marketers and consumers alike, and both seek a

more consistently reliable experience. With completing

transactions, the challenges trigger flashbacks to

online retailing in the 1990s; security concerns, on-

site usability issues and widely varying capabilities by

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merchants create a chicken-and-egg dilemma.

Mobile shopping in many ways will be easier for

marketers and retailers than the 1990s migration to the

web. First, consumers and marketers have become

far more technologically savvy. Mobile devices are also

much more convenient for some aspects of shopping.

Coupons can be delivered directly to devices rather

than requiring the intermediary step of printing when

offering them online. It’s also much easier to create a

seamless experience for consumers with mobile media

to fulfill immediate needs based on exactly where they

are. Barcodes themselves are evolving from a novelty

to a necessity, delivering detailed product information,

discounts and relevant content, and the value proposition

is starting to catch on with consumers.

Mobile shopping by many measures has arrived. For the

vast majority of marketers working with major brands,

the question is not whether consumers are engaging

in mobile shopping. Marketers instead need to ask

how their consumers are shopping with their mobile

devices and how they can reach these audiences as

behavior and technologies rapidly evolve.

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77blog.360i.com twitter: @360i

uring the past decade, Japan has been at the

forefront of innovating in the mobile space,

pioneering QR codes, mobile payment systems,

location-based services, mobile couponing, front-

facing cameras and mobile social networking. These

advanced functionalities and services have moved

from innovative technologies to integral parts of

people’s daily lives in Japan.

As the mobile industry takes off in the United States,

here are a few takeaways that we can learn from the

mobile phone industry in Japan:

LESSON ONE: Collaboration is key

One of the main drivers of innovation in the mobile phone

industry in Japan has been a spirit of collaboration

among key stakeholders, including governmental

policy makers, operators, device manufacturers,

content providers, marketers and agencies. Together,

these key stakeholders have helped each other grow

the overall industry as well as drive consumers to

engage with the mobile space.

By agreeing on common technologies that all

competitors can leverage, the Japanese mobile phone

industry was able to collectively focus on innovating

on platforms, instead of focusing on driving platform

and technology adoption.

LESSON TWO: Competition is the driver of

innovation

At the same time, while the spirit of collaboration has

turned key stakeholders into partners, competition is

still the primary driver of innovation, with consumers

D

by NAOKI MURAMATSUVP, DIGITAL BUSINESS DEVLOPMENT

DENTSU HOLDINGS USA

MOBILE INNOVATION:WHAT THE U.S. CAN

LEARN FROM JAPAN

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MOBILE MARKETING PLAYBOOK Mobile Commerce & Shopping78

being the primary beneficiaries. Operators continuously

lowered pricing plans to acquire more subscribers,

content providers developed more attractive offerings

to increase traffic, and marketers tried to maximize

the power of the new channel by delivering innovative

engagement vehicles.

Two characteristics really helped drive this growth –

direct billing structure and channel positioning. First,

since the beginning, direct operator billing has been

widely adopted in Japan, which enabled users to easily

subscribe and unsubscribe to paid content; content

providers, in turn, can monetize their content without

hustle. Second, marketers have utilized mobile both

as a media vehicle and as a tool to promote sales.

This channel positioning made mobile an intersection

of consumers, marketers and content providers,

which evolved itself from supplemental media outlets

to generate revenue.

...Now is the best time for us in the U.S. to review what Japan has done for the industry and to evolve for the needs of our market.

This “collaborative competition” dynamic has resulted

in a truly unique ecosystem within the Japanese mobile

industry in which growth and innovation flourish.

LESSON THREE: Focus on the behavior, not the

technology itself

While QR codes have taken off in the Japanese market,

we all know that QR codes have yet to substantially

gain popularity and usage in the Western market. Yes,

technological treasures are there. From little trials to

large-scale projects, now is the best time for us in the

United States to review what Japan has done for the

industry and to evolve for the needs of our market.

The point, however, isn’t just to focus on the technology

itself, but to focus on the consumer need. By taking

a more consumer-centric approach to developing

mobile, we’ll ensure the needs of both marketers and

consumers are met.

The world is certainly becoming more “flat.” We’ll soon

move away from regional mobile platforms to global

ones. With overall mobile growth being accelerated by

the emergence of the smartphone, we must take the

spirit of “collaborative competition” from Japan and

apply it around the world to drive mobile innovation

forward.

Eugene Chung, Strategic Development Director at

Dentsu Holdings USA, contributed to this article.

Page 79: 360i Mobile Marketing Playbook

9PA

RTIN

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MOBILE MARKETING PLAYBOOK Parting Thoughts80

1 Insights are often less accessible. Some research firms have beefed up their

mobile offerings during the past year, but such

information often isn’t as robust as what’s

available for websites and Internet users.

2 It’s another source of data to monitor. Marketers need to analyze how mobile users

are accessing their mobile sites and how

those behavior patterns match up with what

users are doing online. This can be even more

complicated if there are separate mobile sites

and applications.

3 Fragmentation will be one of the more persistent mobile marketing challenges. Which devices and operating systems are used

by your target customer base? How does your

target audience divide their time across various

mobile channels? How can you find them across

a jumbled array of publishers and ad networks?

PARTING THOUGHTS

How do you develop enough creative units that

work across all of the devices included in a media

plan? Fragmentation becomes a hurdle at so

many stages of the process.

4 Scale will continue to be a challenge in the short-term. Consider mobile search projections from RBC

Capital Markets that ran in Silicon Alley Insider.

Over the coming years, mobile search will grow at

a faster pace than global web searches, but even

in 2012, mobile volume will be about a quarter

of web search. The issue of scale pops up

everywhere, and it’s closely correlated with the

fragmentation issue. Do you target consumers

on the iPhone where mobile media consumption

is robust, or do you go broader across different

devices and operating systems to achieve the

maximum reach? Scale issues will ease as more

publishers, networks and devices ramp up their

users, usage and inventory.

OVERCOMING THE CHALLENGES OF MOBILE MARKETING

If this Playbook has been largely bullish on mobile marketing, that’s because marketers can be doing more to reach consumers who are increasingly turning to mobile as the first screen, not the third. This Playbook has addressed challenges that marketers face, and those are enumerated here. By understanding the challenges, marketers can plan for them and, in the best case scenarios, use them to their advantage.

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5 Many marketing opportunities are entirely new for mobile. From SMS ads to location-based check-in deals

and mobile barcodes, these new opportunities

require new creative and new thinking for how

to best use them. The biggest challenge is the

learning curve to understand how these very new

marketing opportunities can tie in with marketers’

overarching strategies.

6 Costs tend to be too high or too low. Advertising rates tend to be higher than what

marketers are used to paying for similar inventory

online, sometimes exponentially so. These costs

can often be justified (refer to mobile’s brand

impact in the Mobile Marketing Overview for some

rationale), but it makes mobile more difficult to

sell. Alternatively, marketers will often run mobile

campaigns with miniscule trial budgets so the

impact underwhelms, and there isn’t a chance to

optimize the campaign. Disheartened, marketers

can wind up dismissing mobile as ineffective

before fully understanding how to best use it.

7 Integration is imperative.Given how seamlessly consumers use their

mobile devices to navigate between digital and

traditional experiences, marketers need to tell a

cohesive story. Email and radio can build SMS

lists, in-store messaging and Sunday circulars can

Total Searches on Smartphones and PCs (in billions)

Global Web Searches

2009E 2010E 2011E 2012E

2500

2000

1500

1000

500

0

Searches on Smartphones

Source: Silicon Alley Insider Chart of the DayData: RBC Capital Markets Corp.

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MOBILE MARKETING PLAYBOOK Parting Thoughts82

promote mobile shopping apps, and barcodes

on packaging can drive video views of a trailer.

This requires coordination across marketers’

organizations and agencies that wasn’t always

managed with online marketing, and wasn’t

always necessary in the same way it is for mobile.

8 The ownership of mobile in a marketer’s organization is often unclear. Is the owner a digital marketing lead, even if mobile

has major traditional marketing implications? Is

mobile used strategically or more tactically? Which

agencies can handle which elements of mobile

marketing? Top-down buy-in can elevate mobile’s

visibility within an organization, but it also needs to

be clear who will execute on the vision.

9 The pace of innovation and change continues to accelerate. Quick, name the latest “iPhone killer” Android

phone being released this week. Name the

top paid and free apps in the iTunes store.

Name the hot mobile ad network that just got

funding. Whatever the answers are, they’ll be

different next week. Some of what’s new and

improved will matter, and much of it won’t.

Even established companies may be under

the radar for marketers with limited experience

in mobile. Companies like 4INFO, Greystripe,

InMobi, Millennial Media, NearbyNow, Nexage,

SCVNGR, Square, ShopSavvy and Whrrl

all sound like some alphabetic jumble until

marketers understand how they fit in with mobile

advertising, shopping and social media.

0 Mobile shopping can try the patience of marketers and consumers. Coupon scanners can be difficult to implement at

the point of sale. Staff in stores must be trained

how to accept mobile barcodes or SMS-based

coupon codes. The variety of barcodes adds to

the confusion. With completing transactions, the

challenges include security concerns, on-site

usability issues and widely varying capabilities by

merchants.

All of these challenges can and will be overcome.

Some require a learning curve, from marketers

figuring out how to run integrated mobile programs

to consumers learning how and why to scan a

barcode. Many just take time, as the trends of

smartphone adoption, mobile search usage and

mobile shopping are all accelerating at a fast clip.

Marketers have an incredible opportunity today to

address these issues head on: ramping up adoption

by educating their colleagues and their consumers,

pushing their research vendors, agencies and

publishers to address their needs and continually

optimizing their mobile programs to better achieve

objectives.

ConclusionWe’re now at a turning point, where mobile usage

is prominent enough for it to be a viable marketing

channel for any kind of marketer or brand. At some

point, mobile media usage will likely rival and then

surpass Internet usage, and this will fundamentally

change how marketers find and build relationships

with their target audiences.

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83blog.360i.com twitter: @360i

There are tremendous opportunities within mobile. The

perspectives throughout this Playbook can help make

the case to expand your mobile marketing initiatives,

from the market norms to the shopping habits to the

best practices for a range of mobile advertising tactics.

Beyond all this, there’s the opportunity to experiment,

learn, optimize, lead and serve consumers in ways

that competing brands aren’t able to do yet. These

benefits can further add to mobile’s returns.

Granted, mobile marketing has its challenges, from

fragmented handset and operating system markets to

evolving metrics and pricing standards. And the last

thing any marketer should do is to allocate a few dollars

to some mobile add-on just to be able to say they’re

doing mobile marketing; that only sets up such programs

to underwhelm the marketer – and the consumer.

Such obstacles, though, shouldn’t get in the way of

incorporating mobile when and how it makes sense.

With all of the opportunities mobile offers today, at

this point mobile should be included in any major

integrated campaign or marketing program, and it

should always be part of the consideration set.

As much information as you may have pored over

here, it’s meant to be a starting point. We welcome

any thoughts and questions that arise as we

collectively work to address the opportunities and

challenges ahead.

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MOBILE MARKETING PLAYBOOK Glossary84

GLOSSARYTerm Description

1D Barcodes Also considered linear barcodes, with UPC being the most common example

2D Barcodes A barcode format that can hold more data than 1D formats; QR codes are the best known example

3G A mobile communication standard, that allows simultaneous use of speech and data services at higher data transmission rates (14Mbit/s)

4G Fourth generation of cellular wireless standards, allows for even higher data transmission speed than 3G; currently only available in select markets on certain devices

Android Google’s Linux-based operating system for mobile devices. Latest version 2.2 (nicknamed FroYo) was released on May 20, 2010

BlackBerry A line of smartphones developed by RIM, primarily known for its ability to send and receive emails. Second most popular smartphone after Nokia’s Symbian OS worldwide

Bluetooth An open wireless technology standard for exchanging data over short distances (using short length radio waves) from fixed and mobile devices

BREW Binary Runtime Environment for Wireless, a mobile application development platform originally designed for CDMA mobile phones by Qualcomm; primarily seen on old-style “flip” phones

Flash Lite A version of Adobe Flash Player for mobile phones and devices

GPS Device A device that receives Global Positioning System (GPS) signals to determine its present location

HTC A Taiwan-based manufacturer of mobile devices. The HTC Dream device (known as T-Mobile G1) was the first phone to use Android mobile platform

HTML5 Newest, in-progress HTML standard; includes native audio and video playback in a browser, geolocation support and offline storage database

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Term Description

iOS Mobile operating system developed by Apple that runs on the iPhone and iPad

iPad A tablet computer developed by Apple, includes multi-touch screen, runs iOS operating system. Applications are distributed via Apple’s app store

iPhone A line of Internet and multimedia-enabled smartphones designed and sold by Apple. The user interface is built around the multi-touch screen and includes a virtual keyboard; also runs iOS

Java ME Java Platform, Micro Edition – a platform designed for mobile devices by Sun Microsystems. Commonly found on old-style “flip” phones

Less Framework An HTML5 powered CSS framework for building smart website layouts for varying screen widths

MMS Multimedia messaging service, a standard for sending multimedia to and from mobile handsets

Mobile Web Refers to the use of Internet-connected applications, or browser-based access to the Internet from a mobile device - such as a smartphone or tablet PC

QR Codes See 2D Barcodes

Samsung Bada A mobile operating system developed by Samsung Electronics. Designed to cover both low-end feature phones and smartphones.

SMS Short message service, or text messaging

Symbian OS One of Nokia’s mobile operating systems for mobile devices and smartphones. Devices running Symbian OS account for 46.9% of smartphone sales, making it world’s most popular mobile OS.

WebOS Palm’s mobile operating system, runs on Linux kernel; recently sold to Hewlett-Packard

Windows Phone Microsoft’s operating system for mobile devices and smartphones. Currently fifth most popular mobile OS worldwide

Source: Adapted from Wikipedia

(continued from previous page)

Page 86: 360i Mobile Marketing Playbook

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