The State of Mobile Marketing and Its Role in the Multichannel Mix

Matthew Valleskey, NeustarJosh Herman, Acxiom

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Evolution of “Computing”:

Mainframe1960s

Mini1970s

Personal1980s

Laptop1990s

MobileNow

Computing continues to become smaller, more connected and more personal.

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Marketing today is no longer about reaching the masses..its using mass media to engage individuals one-on-one

Today’s mobile phones can do much more then just make phone calls. This includes text messaging, the mobile web, streaming media and mobile

apps. These features are becoming viable media channels as they carry both content and advertising.

Mobile offers many of the same media attributes as Interactive and has unique attributes that make it a powerful platform to connect one on one with consumers:

• Personal user experience, allowing access to richer consumer data• Portable pocketable platform, always up to date content & services• Ubiquitous always with the customer, promise of location marketing• Trackable user activity is highly measurable

Mobile: personal, portable and ubiquitous

Market: Mobility Extends and Builds Internet StrengthsMobile: Fastest Growing Advertising Medium, 300% Growth (2008 -2013)

Marketing & Advertising Spend ($Billions)

Informa 2009, Carat Interactive 2008, Kelsey Group 2009, PWC, Wilkofsky Gruen Assoc, 2009

More ubiquitous (expect greater than 100% penetration within 5 years in many regions)

More personal (functionality encourages customization – as personal as a wallet); worth premium relative to traditional media

More available (mobility IS the Internet in most of the world)

More response (higher click throughs) (getting 3-5% click through rates vs. .2%-.4% on internet)

• Overall spend remains fairly stable while percentage allocations to media change

• Internet growing from 10% share to 15% share

• New media provides more effective ROI (conversion) which is direct response value

Strengths of Mobile vs. Personal Computer

• Mobile can integrate easily with all traditional media

• No other medium has the reach or response potential of the mobile device (More mobile devices than TV and Computers combined)

• Over 270 million mobile subscriber in US alone

How Brands/Direct Marketers BenefitAs Mobile Channel Evolves, Advertisers Use Personalization Power To Drive Customer Loyalties

Evolu

tion of

Adv

ertis

ing M

edia

Evolution of Media & Marketing Value Chain

Print

Radio

TV

Internet

Mobile

Grab attention with greater context/relevancy

Increase interest with user simplicity, immediacy & ease

Enhance desire by tuned content, more qualified offer with Metadata

Ease of payment and POS tie ins for Prospect to takes action on the offer

Ease of address book/community tie ins promote viral return for brand

Mar

ketin

gVa

lueCha

in

Awareness

Interest

Desire

Action

Loyalty

Mobility has the potential to improve advertiser reach & ROI with targeted

and personalized campaigns, reducing time between customer “awareness”

and “sale”

Mobility has the potential to improve advertiser reach & ROI with targeted

and personalized campaigns, reducing time between customer “awareness”

and “sale”

Worlds Collide – Mobile + Advertisers & Marketers

• Traditional mobile players are looking for new revenue streams

• Advertisers want to reach the mobile subscriber– One to one situation– Personalized content– Anywhere in context– On demand

• This intersection represents a unique opportunity

• New medium has entered the marketplace

Who are the players in Mobile Marketing

• Wireless Carriers• Connection Aggregators• Application Providers• Traditional media

companies and agencies• Mobile ad networks• Content providers

Mobile Media Value Chain:

Media Planning/Buying

Advertising Enablers

Publishers

Mobile Operators

Devices

Consumers

Advertisers

Creative Agencies

Cam

paig

nD

evel

opm

ent

Mob

ileD

eliv

ery

9

Mobile Media Engagement:

Abbreviated

Dialing

Codes

Downloadable Content/

Mobile Apps

MobileWebSites

MobileSearch

BannerAdvertisingMessaging

2D Barcodes

MobileEmail

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• In the US, 75% of wireless users engage in text messaging, and 100% of devices are SMS capable.

• 73% of college students in the US use text messaging daily.

• Worldwide, there are more than twice as many SMS users as there are e-mail users.

• As of June 2007, over 8 billion text messages are sent every month – and that number has grown by 300% over the last two years.

• Over the next 3 years, Gartner forecasts a compound annual growth rate of over 33% in SMS volume in the US.

Messaging & Common Short Codes:Short Message Service (SMS or texting) is the most widely used messaging

vehicle available for mobile marketing.

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Benefits:• Broad device capability – nearly 100% of mobile devices are SMS enabled.• High attention level – users rarely delete messages without opening and reading• Push SMS offers contextual targeting based on content subscribed.• Message resides on the phone and is available immediately (no wait to load).• Allows marketer to reach opted-in audiences wherever they are.• Interactive capabilities can engage users• Parallel to direct mail / marketing

Challenges:• Reach limited to opt-ins• Non-graphical text format. Multi-media messaging capability has less penetration,

but is growing. Carriers are adding more resources.• Long provisioning times

Pre-requisites:• Short code (e.g. PIZZA/74992)• Aggregator to handle delivery across networks• Mechanism for user acquisition (SMS ad network, tv contest, print advertisements,

outdoor advertising, etc.)

Messaging:

How data flows from a Common Short Code

Application and/orContent ProviderAggregatorMobile

SubscriberCarriers

(18 participating)

(c) 2008 NeuStar, Inc. Confidential and Proprietary

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Mobile Web:

• More than 83MM US wireless customers subscribe to the mobile web.

• More than 32 million US wireless subscribers regularly go on-line with their cell phones.

• The number of mobile web users increased >20% CAGR.

• CTRs range from .75% to 3% (reflective of creative messaging and call to action)

Marketing via display ads on mobile web pages. Ads can be banners or text links.

DMA Education © 2009 Direct Marketing Association, Inc.

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Mobile Web:Benefits:• Interactive and richer visual experience. • Proven viability for brand and direct response campaigns• Broad reach and use.• Leverages many assets from existing Interactive campaigns.• Viable means to reach to target consumers• Leverage the unique capabilities of the mobile medium to engage consumers:

– Click-to-Mobile Web Site– Click-to-Call– Click-to-Locate– Click-to-Download– Click-to-Buy

Challenges:• Fragmented buying experience.• Mobile web site to support campaign goals.• Limited text-entry capabilities.• New creative formats and assets. Best practices still emerging.

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Downloadable Content:

• The introduction of devices like the iPhone, Google Phone, and Android based phones have accelerated the mobile application space

• Over 50,000 downloadable apps available• Over 1B apps have been downloaded on

IPhone alone. • Growth will continue as new phones hit

the market and unlimited data plans increase.

* Source: January 2007 M:Metrics

Any content that the user downloads to their device. Includes songs, ringtones, themes, wallpapers and applications.

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Downloadable Applications and Content:Benefits:• Relatively inexpensive for certain types of content• Brand can benefit from perception of offering mobile content (I.e. being trendy)• Can communicate offer across multiple mediums• Great method to drive online users to branded mobile experience

Challenges:• Market penetration is only slightly over 10%• Frequency of app usage diminishes after first use• Not a great use for direct immediate direct response• Need to have data plan to download

Development Time and Cost:• Varies based on the type of downloadable content you plan to offer

Best Practices:• Content most commonly delivered via WAP• Need to understand specific carrier environments when delivering content

RESOURCES

www.usshortcodes.com

www.mmaglobal.com

www.ctia.org

www.mobilemarketer.com

Matthew Valleskey

571-434-5397

matthew.valleskey@neustar.biz

www.neustar.biz

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