dilemma of pervasive connectivity

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The dilemmaof pervasive connectivity

IMMAPAugust 2011

Barney Loehnis@barneylo

Head of Digital, Ogilvy Asia PacificChairman, Asia Pacific, MMA

Monday, 29 August 2011Without apology I want to gaze into the future to help inform us here in the Philippines of what we need to do now to be best preparedLast time I was in Philippines this year I talked about the 6 opportunities to leverage mobile across communications - 6 ways that marketers could use the power of the mobile device to help engage consumersI started off by talking about the the last dawn of the digital revolution...... and about the beginning of the new revolution -one of Augmented Humanity

today I want to talk about something slightly different. I want to start off with our consumerWe know that the consumer is ahead of agencies and clients in terms of their behaviors and use of technologythis latest shift, this new dawn of augmented humanity is fascinating and has deep implications for building brands

this is a primarily mobile story. but make no mistake all content is now digital, all digital now social and all content, digital and social is now mobile

The dilemma of pervasive connectivity is this

1. weʼve been willing this to happen for years, but it only makes our life more complicated2. Pervasive connectivity was something that was meant to make us smart, but it might just be make us dumb3. If you never start the race you cannot win. If you start you cannot stop. Do not go into this aiming to experiment, go into aiming to win. But accept some some of your efforts will end up as experiments to a future success.

The consumer is more dangerous than ever. Armed with a little bit of knowledge that can easily disarm an unsuspecting sales assistant and start bullying store managers!Tweet power is like a grenade that they can lob into the social space and let it rip some havoc

The only way for brands to retain control is to take control of th customer experience and enable it in the mobile space. BEcause it is here when our consumers are most vulnerable themselves to brilliantly crafted communications and utilities that marketers conjure up

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Augmented Humanity

Pervasive Connectivity

Mobile First

Monday, 29 August 2011this is the end of the digital revolution We are now in an era where all the potential of digital and mobile that we dreamed of 20 years ago is now a reality.Pervasively connected. Digital delivering an augmented reality to physical real life experiencesThink about the mobile platform as the primary platform for development

ALSO - need to move away from using mobile as a tactical add-on. We need to use mobile as a strategic opportunity to develop and omnipresence for the brand

Mobile is the narrative “thread” of communications

Monday, 29 August 2011The “red thread” in Zhang XiaoGang’s series “Bloodlines” always struck me as performing the same function for his paintings as Mobile does for brands.

It creates a bloodline between the people portrayed. An intimate connection to people that are relatedIt provides connectedness from one moment to the next - for me a sort of connectedness between emotional connectionsIt represents that people are never out of touch, that there needs to be some bridging from one moment to the next.It implies that what we are looking at, is simply one of a multiple series of engagements, connected by the red thread. the thread is a device that transcends moments, and acts as a continual connection.Actually, this stands not only as a metaphor for mobile, but as a metaphor for digital communications.Mobile must be seen as a strategic thread that plays through and across all brand communications and touch points, and not simply as a tactical instance.

I want to introduce the idea of a mobile platform. A platform in this sense is a way to connect one brand experience to another. It could be an app, or a web site, or a phone, or a prepay card. It is the “red thread” on which we can hang campaigns and communications. It a platform that can serve multiple communications, and help bring them together as a coherent whole to consumers.

Desktop Internet Users

Mobile Internet Users

by

2014More people will access the internet via a mobile device than a PC

Source: Morgan Stanley Research

Monday, 29 August 2011

59% in INdia44% in indonesia30% in China

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Monday, 29 August 2011End of boredom.. something really game changing... farmers in mid west... OFW’s, taxi drivers in durban.. thugs in london ...

Mobile is used to ill time. What effect is that having on society? Is it healthy? Do you ever think about the time spent building relationships between co-workers and friends, which is now spent head down in the mobile phone?

There is a real need for brands to deeply understand consumer’s behaviour when using the mobile device. How is it supporting, accelerating or acting as a deterrent to SALES?

Monday, 29 August 2011This is ANGRY BLACK MAN. A famous vLogger from the US who creates videos about brands and things that make him angry.

Any brand is vulnerable to the ABM, particularly Fast Food chains, and in this example McDonalds. His videos have huge numbers of subscribers, and many millions of page views.

it represents to me the task that many brands have of managing their reputation. The all powerful consumers - whether they are right or wrong - can have a huge impact on other people's POV on a brand. Brands need to be mindful of how to use the mobile device to their advantage and ho to protect themselves against more malicious activities on social media and other web sites.

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How do mobile devices impact shopping?


Tesco


Source: OgilvyOne Study, U.S., U.K., Singapore. Sample size=1,500.

Innovators5% 15% 20%30% 30%

OpinionLeaders

EarlyMajority

LateMajority

Laggards

When will the chasm be crossed?

Trusted?Learned?Needed?Simplifying?

WTF will I make some money from my mobile expertise?


HOT DATA FROM

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85% 55% 24%

40% among smartphone owners

9% 4%

InnovatorsLate

MajorityEarly

MajorityOpinionLeaders Laggards

SEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT

Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore

United Kingdom

Singapore

84% 83% 69%


54% 20%

InnovatorsLate

MajorityEarly




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85% 55% 24%


9% 4%

InnovatorsLate

MajorityEarly




United Kingdom

Singapore

84% 83% 69%


54% 20%

InnovatorsLate

MajorityEarly




Q: SEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT?


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67% 40% 13%


5% 0%

InnovatorsLate

MajorityEarly


SCANNED A BAR CODE OR QR CODE WITH MOBILE PHONE


United Kingdom

61% 37% 33%


6% 0%

InnovatorsLate

MajorityEarly




Singapore

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Similarly, 77% of Innovators used a mobile device to scan a QR code or bar code while shopping. Nineteen percent of the Early Majority has also adopted this behavior (40% of the smartphone set). Once again, the numbers are broadly similar for the U.K., but Singapore, where QR penetration is higher, shows a higher proportion of this

behavior among smartphone users.

77% 38% 19%


3% 0%

InnovatorsLate

MajorityEarly




United States

!e adoption of commerce on the mobile is much quicker than people had anticipated.

"#$%& '()'*(+Managing Director, O2 Media

Q: SCANNED A BAR CODE OR QR CODE WITH MOBILE PHONE?


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90% 69% 76% 69% 50%

InnovatorsLate

MajorityEarly


LOOKED AT A PRODUCT IN-STORE AND ORDERED FROM PHONE IMMEDIATELY

LOOKED AT A PRODUCT IN-STORE AND THEN ORDERED IT ONLINE

64% 27% 14% 7% 3%


United Kingdom

83% 69% 59% 47% 34%

InnovatorsLate

MajorityEarly




67% 51% 27% 15% 0%


Singapore

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90% 69% 76% 69% 50%

InnovatorsLate

MajorityEarly




64% 27% 14% 7% 3%


United Kingdom

83% 69% 59% 47% 34%

InnovatorsLate

MajorityEarly




67% 51% 27% 15% 0%


Singapore

Q: LOOKED AT A PRODUCT IN-STORE AND WENT ONLINE OR ORDERED FROM PHONE?


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68% 35% 35% 26% 17%

InnovatorsLate

MajorityEarly


ASKED A RETAIL STORE TO MATCH PRICE BY SHOWING COMPETITOR’S PRICE ON PHONE

ASKED A RETAIL STORE TO MATCH PRICE BY SHOWING A PRINTOUT OF COMPETITOR’S PRICE

60% 32% 16% 10% 3%


United Kingdom

62% 50% 35% 12% 3%

InnovatorsLate

MajorityEarly



ASK A RETAIL STORE TO MATCH PRICE BY SHOWING A PRINTOUT OF COMPETITOR’S PRICE

58% 44% 29% 6% 3%


Singapore

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Similarly, both Innovators and the Early Majority ask stores to price-match based on a web printout, but Innovators ask stores to price-match based on information displayed on a phone much more often than do the Early Majority. !e spread between the Innovators’ behavior and the Early Majority’s behavior makes clear that this area is about to grow tremendously.

79% 55% 45% 30% 24%

InnovatorsLate

MajorityEarly




71% 28% 12% 10% 8%


United States

Probably 30 to 40 percent of smartphone users are doing a lot of comparison shopping, particularly for hard goods, electronics, toys — things that are easily categorizable. You’re not seeing as much for apparel or groceries, which are much more frequent purchases.

"#$%&"' %()*Senior Product Manager

Mobile Commerce, Google

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68% 35% 35% 26% 17%

InnovatorsLate

MajorityEarly




60% 32% 16% 10% 3%


United Kingdom

62% 50% 35% 12% 3%

InnovatorsLate

MajorityEarly



ASK A RETAIL STORE TO MATCH PRICE BY SHOWING A PRINTOUT OF COMPETITOR’S PRICE

58% 44% 29% 6% 3%


Singapore

Q: ASKED A RETAIL STORE TO MATCH PRICE VIA PRINTOUT OR PHONE?


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“Customers are tired of bargain hunting, tired of having to give the emotional benefits of purchasing away.”

seth farbman Chief Marketing Officer, Gap


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INTERVIEWS


Old Marketplace Rules, New Shopper Tools


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What is the Shopper Journey?


Mobile Shopping Journey

Plan

Planning the purchases

In-StoreBetter decisions regarding prices and characteristics of the products

Research - On the

Go

Use of mobile to research and location services

ConsumeExtend the value of products

Share Sharing opinions

about the experience

Can Control Can Influence Can Monitor


The Shopping Journey - Planning

57% who used a mobile coupon would not have bought the item*36% of customers would like to receive grocery coupons on the smartphones*

*source: Juniper Research

Plan

*source: Juniper Research


Shopping listEpicurious

A plethora of services available

Google Product Search

Scoutmob App

On-the-go

The Shopping Journey - Research


On average, 27% of all Yelp searches come from their iPhone App. In May 2010 over half a million calls were made to local businesses directly from the Yelp iPhone App and nearly one million people generated point-to-point directions to a local business from their Yelp iPhone App in the same period where Yelp for iPhone has had over 1.4 million visitors.

Google is once again trying to change the way we use the internet to shop for products, with a new tool that searches local inventories. This isn't the Google Maps Store View we heard about earlier, but an extension to Google Product Search. When logging on to Google from a mobile, location aware device, Product Search can use that data to query stores in the area and check if the products the consumer is interested in buying are in stock or not.

And of course there are apps to push users information on special deals and opportunities. TheDealMap application serves up an interactive map that shows users sales and promotions near where they are shopping. The app offers a variety of filters to customise the types of deals users want to see, such as restaurants, kid-oriented promotions or shopping.

Shopkick is an application that uses an innovative technology - they work with the retail stores to install an in-store hardware that consists of a box emitting a special-pitch sound that's inaudible to humans but that your phone can hear. This allows for the consumer - which does not even notice any difference and does not need to install or configure any features - to be surprised when they walk inside the store.

A more classic approach to this problematic is to serve consumers with real-time location-based coupons, which serve the same purpose and may be simpler for retailers to instal. Woot, the online coupons system, developed Scoutmob - the mobile version of Woot, but reaching a much wider scale of retailers due to the local nature of the service.

InStore

Google Product Search TheFind

Scan/Compare/Buy

The Shopping Journey - In-StoreBarcode scanning usage indicators

Nutritional Info comes 3rd in click-through ratesGroceries and Personal Care lead the charge

What types of goods users scan, and what for:


Numerous possibilities - little data

The Shopping Journey - ConsumeConsum

e

Extend theProduct

Subway, iPhone AppNespressoUsage - Hack

Brand Platforms


From twits to video review

The Shopping Journey - Share

Twitteron Kitkat

Video ConsumerReviews

Deisel Storecam / Facebook

StatusUpdates

Share


- 53% of people on Twitter recommend companies and/or products in their Tweets (ROI Research for Performance, June 2010) - 40% of all tweets are made from mobile devices according its CEO Dick Costolo revealed at AllThingsD event at CES.

- Mobile devices are used by 32% of consumers to browse or research products or services at least once a month (ATG, March 2010)

- 64% of respondents who had watched a user-generated video review, and more than three-quarters of that group said it helped them make a purchase decision—either for or against a product or brand. (ATG, March 2010)

- 81.3% listed the ability to see the product in action as their favourite thing about video reviews. (Internet Retailer, June 2010)

- YouTube is now serving over 200 million video views per day to mobile devices (YouTube, Jan 2011)

Subhead

A digital retail experience


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Isob

ar

1. Shoppers are on a constant journey - deliver throughout 2. Location! Influence preference & trigger purchase3. Warning: shoppers come armed. Give transparency they crave4. Shoppers want value beyond promotions.5. Data delivers context and intent. 6. Empower your staff to augment mobile experiences.7. Keep focus. Collaborate with innovators: serve the mass 8. Earn the intimacy of the device.

My eight areas of further exploration....


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Thank you.

For a copy of Ogilvy’s research on Mobile Shoppers:

@barneylo

Questions?


dilemma of pervasive connectivity

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