nihal mehta - future of mobile advertising

8/7/2019 Nihal Mehta - Future of Mobile Advertising

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The unstoppable rise ofmobile marketing.

april2011

@nihalmehta


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mobile is

putting nearly everything withinthe arms reach of desire

along the customers journey

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Can you

imagine livingwithout it?

Why mobile?


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6.8 billion people

5+ billion mobile

subscriptions 3+ Billion unique

US 277 millionsubscriptions

233 million unique

The rest of the world cant


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ConvergenceEconomyMarketing

opportunitiesSpeed

HandsetsData tariffs

Industry promotion

The drivers for growth

Consumer behavior


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more than a phonemobile is a cornerstone to the daily

lives to the vast majority

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is about convenience

&needmobile is an access point

Consumer channel choice


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Mobile 3rd Most Used MediaChannel

Source: Microsoft Advertising Mobile Consumer Vertical Study - TheFutureofMobile Advertising, Nov. 11,2009

Average number of hours per week spent with:


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PrintRecordings

CinemaRadio

TVInternetMobile

The 7th mass media

Source: TomiAhonen (2010)


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The convergence of media

TV Radio Recordings Comms. Print Cinema

Source: Ahonen (2007)

Internet


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The many paths of mobile

Content

Source: comScore (Feb. 2010)


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U.S. Text Messaging Growth

0

20

40

60

80

100

120

140

160

Dec00Dec01

Dec02Dec03

Dec04Dec05

4.6 9.7

18.7

48.1

110.4

152.6

Source: CTIA Semi-Annual Wireless Survey; Tomi Ahonen,2010

Worldwide est: 5.5 trillion messages in 2010

(Billionsofmessages)


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ChaCha is #1 in Mobile SMSSearch

14Source: Nielsen. July, 2010

1.8+ million answers daily, representing 63% of domestic SMS answers market

Growing at a rate of over 12% week over week in mid 2010


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15


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Mobile App Proliferation

Source: Sharma Consulting (2010)


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Social Networking has surpassed

emailing


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Mobile Social Networking

~80mm by 2015


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Mobile Users Access a WideRange ofContent

49%

44%

36%

34%

31%

29%

24%

22%

21%

21%

20%

18%

18%

17%15%

13%

13%

12%

12%

12%

weather

search

news

maps

sports information

entertainment news

movie information

stock quotes or financial news

bank accounts

tech news

restaurant information

traffic reports

business directories

general referenceclassifieds

television guides

gaming information

electronic payments

auction sites

online retail

Top 20 Mobile Content Categories

Reach Among Active Users

(Browsing, Apps, SMS), April 2010, US

Product:comScore MobiLens

Data: Threemonthaverageending April2010


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Customers want to use their mobile phone in store to help themresearch and buy

Please rate how useful the different pieces of information

would be to you when you are shopping in store. (% very

helpful)

Feb Communispace In Store Mobile Experience Survey

ItisnotallItisnotall

aboutabout

commercecommerce


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MobileInternet Growth


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Myriad of DevicesFeature

20% - 25% of theUS Market

75% - 80% of theUS Market

Smartphone

Connected in other ways


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Tomorrow (U.S.)


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Future of mobile platforms

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The Long View - Deloitte Predictions - Mobile Media World


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Android is now top selling smartphoneglobally (Q4 2010)

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Growth in Mobile Media ParallelsIncreased Tech Fragmentation

1168 handsets in US alone

40 handsets with installed base >1 million

195 smartphone models

Multiple smartphone platforms with multiple OS versions

RIM, Android, Apple, Windows, WebOs, Palm, Symbian, Meego,Bada

No standard user interaction model

Source: comScore 2010

Vast array of different medium for unique user experiences


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Defining Mobile Marketing

Mobile Marketing is a set of practices thatenables organizations to communicate and engage

with their audience in an interactive and relevant

manner through any mobile device or network.(Mobile Marketing Association, 2009)


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Two Approaches to MobileMarketing

Direct Mobile Marketing (push/pull marketing)

Marketer Initiated (push)

e.g. SMS, MMS, Voice alerts (requires consumer opt-in & consent)

Consumer Initiated (pull)

Search,A

pplications, Mobile Web, etc.

Mobile and Mobile-enhanced Products and Services

Mobile capabilities may also be integrated in with the marketersproduct, customer services or related offers, where mobile can be an enablingvalue added capability or the primary services channel.

Mobile Enabled Cross Media, Integrated, Marketing

Mobile enhancement of traditional media & retail environments requiringconsumer initiated interaction with the marketing initiative (print, TV, radio, outdoormedia, direct mail, email, point-of-sale, Internet, mobile Internet, etc.)

Mobile AdvertisingTA9


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ConsumerAcceptance

One in Five U.S. Adult Consumers Now

Using Mobile Commerce (MMA, 2010)

17% purchase applications, ringtonesand other content

6% receive coupons or discounts 6% purchase physical goods or non-

mobile content or services


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Soft Drink Mobile Ad Displays are 3.2 timesmore likely to be found in the Entertainment

Publisher vertical; followed by Search

Source: Ad Metrix Mobile June2010

*


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Marketer Engagement

We see Tide as the authority in stain removal, and weve had stain solutionson our Web site for some time, and we wanted to extend out of home to reachconsumers. The iPhone application allowed us to do that, offering on-the-go

tips at consumers fingertips. Were really looking at the iPhone as anextension of our stain-removal realm, not focusing on one demographic or

another, but trying to make our brand more accessible. Anyone whos lookingto remove a stain can use the app and find out how to get it out..

Amanda Treevy, Tide at Procter & Gamble (Mobile Marketer, November

13, 2009)


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Acquisition

Retention

Brand Building

Mobile Advertising

Direct ResponsePermission MarketingSamplingCompetitionsOn-pack

Up-sellSelfServiceCustomerCaremCRM

Mobile InternetGamesBranded Utilities


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Mobileadvertising

DirectResponse

Permission SamplingCompeti-

tionsOn-pack

ACQUISITION

Increased use of mobile internet

Increase in available inventory

Pressure on marketing budgets

New formats richer experience

Merger & acquisition

Commercial success


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Upsell Self-service CRM

RETENTION

Growing consumer acceptance andexpectation

The on-demand consumer

Mobile as an access point

Cost effectiveness


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games utilities promotion

BRANDBUILDING

Growth of app stores

Instant interaction with consumers

Consumer expectation

Permanent brand presence

New formats richer experience

Better understanding of the advantages of mobile

Commercial success


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Point ofSales DisplayPromotions


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Code Promotion 2D, QR MSFT Tag

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Billboards Packaging

Print Material

Signs


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Mobile Couponing & Discounting

Source: MoneyMailer,mDot Networks


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Physical & Digital Integration


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Newspaper insert


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Loyalty Programs

Promocodeundercap

Common Short Code

and instructions onbottle

Webportalmanagement Results


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LBS and Social Media


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VW GTi Real Racing app for 10 model

$500,000 spend

5m plus downloads

More cars sold

Brand Building VW GTI Launch


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POS Redemption: Customer and QR Codes

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Source: http://bit.ly/9ZTqM5 (Target, Aug. 8,2010)

Source: http://bit.ly/cJ5R0T

(Starbucks, Aug. 8,2010)

Source: http://bit.ly/aB5ECJ

(NeoMedia, Aug. 8,2010)

Source: http://bit.ly/d5quIU

(bCode, Aug. 8,2010)


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Text 4 Offer

Local cleaning service sponsored alloutgoing messages for a text to winfor Brad Paisley tickets

RESULTS: 700 text responded withCLEAN with over 80% close rate(560+ new customers)

Daisy Maids signed up to sponsor allticket giveaways through the end of

the year

Source: Hip Cricket


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OMNITURE SITE CATALYST:(All Devices)

55k visitors (March) 340k mobile views 450 orders

Consumer Engagement: Results Priorto Launching Mobile Optimized Experience


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OMNITURE SITE CATALYST:(All Devices)

117,142k visitors (May) 497k mobile views 908 orders

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Consumer Engagement: Results PostLaunching Mobile Optimized Experience

Ste e Madden Facebook Like


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ABOUT THE

PROMO:Steve Maddens Facebook fan held a

competition between 2 different shoes.(ex. Caryssa vs. Trinitie shoe). The first shoe to 1,000 Facebook likes winsand all Facebook fans are offered a significantdiscount on that shoe for24 hours.

GOALS

Drive mobile site awareness.To make the mobile site more like a socialplatform and let people share what they like.

RESULTS

A viral product promotion that:Increased mobile site traffic 30% within 24hours.Gained hundreds more Facebook fans within24 hours.

* Thiscampaignwasfeatured in MobileMarketer.com:

http://www.mobilemarketer.com/cms/news/commerce/6567.html

Steve Madden Facebook PageSteve Madden Mobile Site

Steve Madden: Facebook LikePromotion


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Carrabbascurrently offers Specials to their Mayors on Foursquare at all 232 locations

Foursquare @ Carrabbas Italian Grill

Source: WebsterLewin, MMA Forum,2010


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6,987 total check-ins

178 mayors, nationwide

NY and FL are the mostcompetitive regions for the

competition of Mayors

Metrics include: Check-ins by time of day Gender Where people are

coming from

Redemption Analytics

L ti E bl d Ad


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Location Enabled Ads:SMSAlerts & Banners

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Source: Placecast

Source: Navteq

Info and price comparison


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Info and price comparison(w/application) - UPC

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Example: Redlaser (www.redlaser.com)


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Kraft iFood Assistant: LeveragingMobile Media

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http://link.brightcove.com/services/player/bcpid1543292789?bctid=111702111001

iPadiPhone


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ESPN: Best of Breed

ESPN is the Clear Leader in Mobile Sports

#1 Sports Mobile Website: 11M uniques/month #1 Sports Alerts Service: 200M+ messages/month iPhone / iPad Apps (free and paid) 11MM downloads Mobile TV>1,000 live events/games in 2010

Th Gl b M il T ki M bil


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The Globe Mail Taking MobileSeriously

Created dedicated mobileteam to innovate and focuson the space

Experimented withadvertising placements andpackages

Increased speed of productlaunches

BlackBerry app iPad app

Source: Mobile Innovation Week (2010)

If b ild it th ill


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If you build it they will come

503% increase inmobile traffic insingle year

(monthly pageviews)

Mobile revenue229% of plan

More than 250Kdownloads ofiPhone app


And the re j st getting started


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And theyre just getting started

Mobile growth a formal company priority incoming year

Increased focus on new products

Anticipate growth in 2011 to exceed 2010 bysignificant margin


Mobile Affects Every Customer


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Mobile Affects Every CustomerInteraction

Source: MMA Mobile & Retail Webinar (June2010)


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Mobile is the New Portable Store

m.bestbuy.com BBY phone app BBY android app


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Understanding the role of mobile in themarketing mix

Take advantages of the new contextualbenefits of mobile; need, location & time

Dealing with consumers as individuals

Ensuring relevance

Issues for marketers


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5 conclusions1. Mobile is about customer engagement: acquisition,

retention and brand building.

2. Map the customer journey and all the touch points

3. Mobile allows consumers to act at the point of impulse

4. Mobile works best when integrated into campaignsfrom the start

5. You will all be mobile marketers

nihal mehta - future of mobile advertising

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