Mobile Marketing Playbook - IAB

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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

The Future of Mobile Content & Commerce p.11 by Noah Elkin, Senior Analyst, eMarketer The Nail for Social Media’s Hammer p.48 Inverview 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 by BRYAN WIENER CEO, 360

I

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

Mobile is perhaps one of the most exciting and

proclamation has turned out to be premature, giving

revolutionary forms of media to flourish over the

marketers ample reason to be skeptical. The difference

last decade, as it builds exponentially on the

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

groundbreaking changes brought on by search and

consumer behavior and mobile platforms have reached

social. While the PC Internet is completely divorced

sufficient scale for mobile to move beyond an emerging

from the physical world, mobile breaks down these

media tactic for mainstream marketers.

walls and brings the power of the Internet into the real world in real time.

Mobile is finally experiencing its tipping point as one of the critical components of the digital marketing

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

landscape, much like search marketing experienced

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

in the early 2000s and social marketing during the

products in the aisles with those in neighboring stores,

past few years. Nielsen reports that within a year,

check other customers’ reviews, and see how popular

smartphone adoption will exceed the adoption of

a product is with other shoppers in your area. This

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

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

where the majority of phones – and consumers – will

has access to information anytime and anywhere, how

have Internet connectivity wherever they go.

does that change the way consumers think about

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3

your brand and the way you have to interact with them

Mobile Marketing Playbook is to help marketers:

as a marketer? This brings both opportunities and

•

the Internet did.

Work within a framework for establishing a set of clear objectives for their mobile marketing strategy

challenges to existing business practices – much like •

Move beyond the checklist approach with a filter for evaluating the myriad of opportunities within mobile

Rather than seeing this as a daunting prospect, consider

•

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

Think of ways to use mobile to merge online and offline strategies, as a hub that bridges the gap

that mobile allows consumers to bring their digital lives •

Encourage a dialogue about what matters in

longer have to silo our marketing efforts; the opportunity

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

for cross-channel integration and truly rich multiplatform

exciting medium

brand experiences has never been greater. As always, we welcome comments, critique, debate, The accelerated intersection of mobile, local, social

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

and commerce across the online and offline worlds

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

means things are going to change incredibly quickly.

blog (blog.360i.com).

That’s why we’ve put together this Playbook – to provide a foundation and framework for approaching

Happy reading,

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

Bryan Wiener

for the innovations ahead. Specifically, the aim of the

CEO, 360i

4

MOBILE MARKETING PLAYBOOK

Foreword

ACKNOWLEDGEMENTS 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. Share the Mobile Marketing Playbook:

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er vi

ov

1 ew

OVERVIEW 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.

customers most likely own and use 1 Your mobile devices.

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

Market research firm comScore reports that as

to connect mobile with their digital marketing

of May 2010, 234 million Americans age 13 and

programs. eMarketer reports that there are more

older are mobile subscribers. That’s more than

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

90% of the U.S. population.

about half of mobile phone users will use the mobile Internet within a few years.

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

4 Smartphone penetration is increasing

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

to the point where brand marketers can deliver

according to comScore, while the Pew Internet

rich experiences through pocket-sized devices.

& American Life Project reports teens 12 to 17

Nielsen reports that within a year, smartphone

communicate each other daily with texting more

adoption will roughly match adoption of feature

than through any other channel – including talking

phones (the more basic, functional phones with

face-to-face or on the phone.

limited web and app capabilities).

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U.S. Smartphone Penetration & Projections 90% 80%

Feature Phones

70% 60%

( Projections)

50% 40% 30%

Smartphones

20% 10% 0% 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

Source: Nielsen

martphone competition is expanding the 5 S audience that can access rich content. Mobile

ad

network

AdMob

noted

U.S.

ad

impressions on Google’s Android operating system

Along with the integration of the various channels

reached 46% of the total in March, compared to

within mobile, to be most effective mobile should

39% for the iPhone operating system, marking

integrate with as many other kinds of media as

the first time Android surpassed the iPhone. Also

are included in a campaign or program, including

consider Myxer, which has served 34 million

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

consumers 1.3 billion downloads of free mobile

devices are always on and accessed everywhere,

content. Skewing toward a younger audience, it has

and the portability alone makes mobile unlike any

seen a disproportionate share of downloads and

other form of media. Mobile marketing has near

traffic coming from BlackBerry devices. BlackBerry

limitless potential to contribute to and build on

has proved especially popular with this demographic

other marketing programs.

in large part thanks to the interest in BlackBerry Messenger (BBM), its instant messenger service.

8

obile is designed to be the most 6 M integrated marketing medium the world has ever known.


Overview

7 Mobile is great for branding

line. InsightExpress further quantified some of these

thanks to several factors: deep engagement,

effects, showing strong performance across brand

minimal ad clutter and new and constantly

metrics for marketers in six vertical industries.

evolving

advertising

experiences.

Dynamic

Logic found that its mobile MarketNorms across various brand metrics consistently surpassed online norms.

obile marketing is more than just a single 9 M marketing channel. Consider online marketing, where search, video and social media are all very different disciplines.

8 Mobile marketing matters in any vertical,

The same is true of mobile, and these various

with any goal. A consumer packaged goods

forms tend to intersect. Coupons can be delivered

marketer can use mobile display and video ads for

via text messages that link to mobile barcodes.

branding, SMS for couponing and applications for

Mobile display ads often promote applications.

consideration. Retailers can similarly use mobile

Mobile social marketing programs can include

in different ways, whether they’re trying to drive

video and mobile search, and tend to run in

consumers to the store or launch a new product

conjunction with a range of other promotions.

Mobile vs. Online 25% Mobile

Online

Percent Impacted Delta (∆)

20% 15% 10% 5% 0% Aided Brand Awareness

Advertising Awareness

Message Association

Brand Favorability

Purchase Intent

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 respondents Delta (∆)=Exposed-Control

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9

he twenty-first century is the century of 0 T mobile.

as the number of text messages sent annually

The “year of mobile” phrase is played out,

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

but it has been true for some time now. The

innovation have brought the iPhone with its continual

International Telecommunication Union wrote

improvements, pervasive Android devices and

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

mobile social services that have consumed much

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

of the bandwidth of the mobile Web. The milestones

Since then, there have been several milestones

will keep coming at a breathtaking pace.

rises well into the trillions and mobile ad spending

Campaign Effectiveness – Brand Metrics by Vertical Mobile Index Against Online November 2007- December 2009 20% CPG

Entertainment

Travel

Technology

Automotive

Retail

15%

10%

5%

0% Unaided Awareness

Aided Awareness

Mobile Ad Awareness

Brand Favorability

Purchase Intent Source: Insight Express

10


Overview

THE FUTURE OF MOBILE CONTENT COMMERCE by NOAH ELKIN SENIOR ANALYST EMARKETER

R

emember when ringtones were all the rage? No

access to that content ecosystem within a few clicks.

one thought twice about dropping $3 to get 15

But carrier decks were walled gardens by another

seconds of a song because it was a quick and easy

name, and ultimately that translated into constraints

way to personalize your phone. Indeed, through

for the end user.

2007, revenues piled up for music publishers and wireless carriers alike thanks to the rush to

The launch of the iPhone in June 2007 made those

personalization, peaking at more than $700 million,

constraints more apparent. Although it was by no

according to SNL Kagan.

means the first web-enabled phone, the iPhone broke new ground as a content-consumption

Much of this purchasing activity took place “on

device. The built-in Safari browser brought a

deck”– the categorized links that came bundled with

desktop-like experience to mobile, unlocking a

web-enabled phones. Carrier decks offered benefits

world of media experiences that previously had

to users and marketers alike. First, they enabled

been imperfectly realized at best. Integration with

marketers to place content and applications with easy

first the iTunes Store and subsequently the App

reach, meaning users did not have to engage in long

Store gave consumers new options for accessing

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

music, games and video on their mobile devices,

music, games, news or weather. Second, purchases

and new modes for marketers to engage their

conveniently went right on users’ phone bills, putting

audience with branded applications.

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

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

12


Overview

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

At the same time, the combination of increasingly

the web from their mobile devices in 2014, up from

ubiquitous broadband access and the steady migration

85.5 million in 2010.

of content to the “cloud” means that mobile consumers are moving more in the direction of “accessing” content

Content consumption will likewise increase at a

rather than owning it, emulating a trend begun on

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

the desktop with software and services. Paid and

mobile gamers, music listeners and video viewers

ad-supported streaming services such as Pandora,

will number 94.9 million, 52.2 million and 56.7

YouTube and Hulu offer access to vast content libraries

million, respectively. Moreover, what these mobile

that would be far costlier to replicate through purchases.

content consumers buy and how they buy it is

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

also evolving, driven in part by advances in mobile

use payment plans and boosts the potential of ad-

devices and networks and in part because of

supported and hybrid monetization models.

broader secular developments in digital content. For example, mobile users are talking less than ever

Bottom line: Consumers will continue to pay for

before and using more data-centric functions such

content on mobile devices. But whom they pay, what

as texting and social networks to communicate.

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

The decline in voice calling has hurt ringtone sales.

as quickly as the devices on which they consume it.

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Pl IN AN MA MO NIN RK BIL G ET E IN G

2

Planning in Mobile MARKETING 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.

are your goals for mobile 1 What 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

Answering these questions at the onset will

What are your GOALS for mobile marketing?

Does it follow mobile marketing BEST PRACTICES?

help ensure mobile fulfills its potential as part of your marketing plan.

How is your AUDIENCE using mobile?

is your audience 2 How using mobile? Beyond talking, what are consumers doing with their mobile devices? Which

does the end result look like if the mobile program is successful? What kind of commitment will you make upfront in terms of

How can you use your ARSENAL in mobile?

the staffing and budget allocated? Do you have the time to fully optimize the program? Are you seeking massive

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

scale for impressions, clicks, engagement or

other media, including traditional media, does

app downloads within a brief campaign flight?

your target audience engage? It’s critical to

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15

understand your audience and how they are utilizing mobile when creating your plan.

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

3 How can you use your arsenal in mobile?

firm needs a mobile strategy.” Understanding the

What assets do you have that might make sense to

current mobile landscape, relevant consumer trends,

incorporate? Do you have stores or other channel

and what competitors are doing will help you avoid

partners? Do you have apps or a mobile-friendly

wasted dollars and increase the impact your program

website? What other digital branded experiences

has on the target audience.

do you have, perhaps across social networks? Mobile bridges digital and physical worlds, so

Consumer insights

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

As consumers increasingly rely on their mobile devices,

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

understanding audiences’ motivations in mobile and aligning strategies to these new and changing behaviors

it follow mobile marketing best 4 Does practices?

will result in the most effective programs. Specifically, this means defining the mobile persona of your target.

Does the program adhere to how consumers

With limited screen real estate to leverage, having a deep

are using mobile media? Does it use the

understanding of your customers’ mobile usage and

functionality of mobile devices? Does the

motivations will allow you to offer true value exchange

experience translate well both to the smaller

that will delight - rather than distract - your audiences.

screen size and then the broader real-world landscape where consumers use their mobile

The types of intelligence that will help paint a picture of

devices? What kind of value does it provide to

your consumer’s mobile persona include:

the consumer – information on a new product or service, entertainment, or a discount on

•

The size and composition of your mobile audience:

merchandise, among many other options?

-- How many consumers can you reach within your target demographic?

Marketers who have read 360i’s Social Marketing

-- What are trends for how your target audience

Playbook may notice some similarities between

indexes with mobile usage?

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

•

Operating system and handset usage: -- Does your target use iPhone, BlackBerry or Android devices?

address the specific demands of its respective marketing discipline. 16


-- How are adoption rates trending for each?

Planning in Mobile Marketing

Understanding Mobile Usage Mobile Activity for Moms Online 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%

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

•

Usage insights - understanding how your consumers use their devices: -- Which mixture of SMS, e-mail, mobile web, applications and other mobile channels do

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

they use? -- When are consumers engaging with mobile?

Blackberry, 46%

What days and dayparts show the most activity?

Apple, 25%

-- How much time do consumers spend using their

Android, 12%

mobile devices?

Windows Mobile, 9%

-- What are their go-to mobile sites and

Palm, 6%

applications?

Symbian, 2%

-- 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

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

(music, video, etc.) to mobile?

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Resources for gathering syndicated research include

is evolving, new marketing models are being

comScore, Nielsen//NetRatings, the Mobile Marketing

developed, and devices are quickly acquiring new

Association and Forrester Research.

features and functionality. When planning a mobile program, look at the most recent data, but also

Competitive intelligence

try to discern trends at least six months ahead to

Given the nascent nature of mobile marketing tools

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

and techniques, it can be very beneficial to study what

release, offers from different mobile providers,

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

new entrants in the tablet market and fast Android

yourself to direct competitors either. It may be just as

growth can be taken into account when developing

valuable to learn from others in the category as well as

a forward-looking mobile program. Testing new

from other industries to see how various marketers are

opportunities now can lead to a sizable advantage

reaching their audiences via mobile channels.

in the longer term.

Syndicated tools such as comScore offer detailed

Conclusion

perspectives on what other marketers are doing in

The near ubiquity of mobile has made it necessary

mobile. These tools often include information on

for any brand that regularly interacts with consumers

brands and industries that are the most active in

to consider a mobile marketing strategy. But mobile

mobile, with overviews of the creative they’re running

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

and what publishers they partner with.

time to investigate the landscape, examine consumer interactions with their devices and monitor competitive

Staying ahead of the curve

moves will reduce the unknowns and provide a solid

Research, especially in an emerging arena such

base on which to launch, test and optimize an effective

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

mobile program.

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Planning in Mobile Marketing

MO SE BI AR LE CH

3

Mobile sEARCH KEY 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

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 paid search

•

According to the Kelsey Group’s Mobile Market View Report, nearly 60% of all activities on mobile devices

demands for relevancy and understanding intent. •

are search-related, making search one of the best ways to reach consumers in mobile.

Shorter search queries means there are greater The constantly accessible devices lead to greater immediacy with consumers’ needs.

•

Shorter creative means marketers must get their point across faster.

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,

Mobile search is evolving in several different ways: •

Mobile search is especially useful for local queries.

but there are also fewer ads per page across both

Whether they include local modifiers (such as a city

feature phones and smartphones.

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

Calls to action and user experience can vary based

on their mobile phone will expect to find one in their

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

area. The Kelsey Group reported that about one in

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

three mobile searches has local intent.

20


Mobile Search

•

No matter how much better mobile phone

•

SMS search is still relevant for feature phones,

keyboards get, mobile users will keep their

where users text a query such as for business

queries shorter when they can. Optimization

listings or stock quotes and then receive results.

in natural and paid search around higher volume

Given that there’s a brief delay between the query

keywords will be especially competitive.

and response, these queries will diminish as smartphones dominate the market.

•

Voice search is making an impact, and all the major search engines incorporate it. A range of other

•

On Google Android-powered devices, a search

companies have developed offerings here, including

button is built into the phone’s hardware, making

Jingle Networks’ FREE-411 directory assistance,

it possible to conduct searches instantly no

Naturally Speaking’s Dragon Search application

matter what the consumer does within the mobile

and Apple’s Siri. Expect renewed innovation in this

experience. Mobile search listings can in turn

area during the next two to three years.

appear during a wide range of activities beyond

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

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 0

5

10

15

20

Source: Kelsey Mobile Market View for 2009

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21

searching from a mobile engine, such as when searching for driving directions or using various

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

applications. • •

Retail/QSR marketers

The results pages themselves will continue to

For marketers trying to drive in-store traffic

evolve to showcase more mobile-specific content.

and sales, mobile search is a great starting

For instance, in June, Google added application

point. According to Google’s Retail Advertising

links to its mobile search results, with links to

Blog, 54% of users who researched online

download apps directly from Apple’s App Store or

but bought offline used their mobile device to

Google’s Android Market.

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.

22


Mobile Search

Mobile paid search best practices

“As a marketer you need to be there when a user needs you most. There’s a huge payoff in terms of

mobile campaigns separately. 1 Group

emotional connection with a brand if you’re right

They tend to perform differently from online

there at the top of the listings and help the user

search campaigns, and you’ll often want to adjust

accomplish their task easily when they’re highly

the rules accordingly.

motivated to connect with you.”

2 Broaden your scope.

Mobile search engine optimization

Mobile search volume tends to be significantly

Search

lower than online search for most keywords, so

significantly over the last two years, extending beyond

to achieve the best reach you’ll want to target

commonplace activities such as title and META tag

queries more broadly, include more high-volume

optimization to include diverse methods that keep

queries and possibly include additional keywords.

pace with the changing search landscape. Mobile

engine

optimization

(SEO)

has

evolved

search builds on the basic techniques, though it

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

involves many new considerations to capitalize on mobile devices’ design and functionality.

search, it’s going to be vital for mobile. Optimizing a mobile website, regardless of the

mobile functionality into the 4 Incorporate creative.

markup language, still centers around the core tactics one applies to traditional HTML websites. Core

Click-to-call was somewhat useful online, but it’s

optimization techniques such as title tag creation,

poised to play a pronounced role in mobile search.

proper use of META tags, sufficient keyword density in

Anytime a consumer would benefit by talking to

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

a person, from a booking agent to someone at a

development remain vital for greater natural search

local store, click-to-call can potentially improve

visibility. With core onsite factors in mind, brands

conversion rates.

should focus on efforts that impact smartphones and the next generation of mobile users.

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

When managing multiple versions of a website through

search users complete their task after one hour,

one content management system, many of the on-

compared to 30% on the PC. Make sure copy

site SEO best practices incorporated into a traditional

and landing pages are useful for consumers

website can be ported to the mobile version. However,

looking to meet their needs right at that moment.

due to the prevalence of dynamic content types such

Microsoft’s Doug McMillen told Mobile Marketer,

as maps or mobile applications, there are several

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23

SEO considerations that are specifically applicable to

•

mobile search.

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,

Mobile SEO considerations •

consider focusing on the primary three keywords

W ith smartphones and other mobile devices

and limit your mobile site titles to 50 to 70

maintaining full browser capabilities (with

characters in length.

JavaScript), brands should look to optimize mobile sites for the future. XHTML Basic 1.1, XHTML MP

•

Build dedicated landing pages for mobile

1.2 and HTML5 are good choices for new mobile

applications that auto-detect browsers and

site development.

devices and can automatically load the appropriate application storefront. This will make it easier for a

•

Utilize browser/user agent detection methods to

user to download and install the app. It can even

redirect mobile users to the appropriate mobile

prove to be beneficial for non-mobile users.

version of your website. • •

Evaluate where social media content is influencing

How fast a website loads can impact how well

the mobile audience and develop a participation

your site ranks. Web browsing speeds can in turn

and value exchange strategy to gain more real-time

impact click-through and abandonment rates on

exposure or links.

mobile devices. Providing users with a simplified mobile version (WAP, XHTML, etc.), which limits

•

If your website utilizes a significant amount of rich

the use of large images and other elements

Internet applications or suffers from congestion of

that slow page load, can greatly improve user

information, consider building a mobile version that

interaction and time spent on site.

simplifies navigation and provides access to the most recent content.

•

Searching for local information such as business locations and directions is one of the most popular

Looking to the future with HTML5

mobile activities. Local directory submissions are

As

critical for brands to maintain accurate listings

definitions and features will allow for simplified site

within map applications such as Google Maps.

management and may lead to the extinction of mobile

more

brands

adopt

HTML5,

new

markup

markup languages such as WAP. While they’re several •

As mobile naturally aligns with a searcher’s

years away from becoming mainstream, HTML5 and

location, more emphasis will be prioritized on

CSS3 (cascading style sheets) can allow webmasters

geotargeted landing page development and

to create and manage one website that performs

customization.

efficiently on mobile and traditional desktop devices.

24


Mobile Search

Less Framework, an HTML5-powered CSS framework

HTML5 is found later in this Playbook on page 61.

for building smart website layouts for varying screen widths, is one way to build a flexible multi-column

Conclusion

website that intelligently collapses into a single column

Marketers with experience in paid search and SEO can

for small screen devices such as smartphones. As

maintain their competitive advantage by constantly

we collectively move closer to an HTML5-rich world,

applying the latest mobile search best practices.

mobile and desktop experiences will become less

Waiting until mobile search mirrors the scale of online

fragmented and the application of SEO will become

search could make it harder to catch up later.

much more efficient as the lines dissolve. More on

Traditional Site

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).

Mobile Version

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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25

SM MA S RK ET IN

4 G

SMS MARKETING KEY 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


In-store, out-of-home, TV, radio

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. For marketers, SMS marketing has the lowest

Anyone who’s encountered a teenager in the past

barrier to entry. Once the messaging platform is

few years won’t be surprised that texting is especially

in place, there is no creative development needed

popular with younger consumers. The Pew Internet

beyond copywriting.

& American Life Project reports that American teens

Mobile Content Usage 3 Month Avg. Ending Apr. 2010 vs. 3 Month Avg. Ending Jan. 2010 Total 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 Source: comScore MobiLens

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27

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

unique name. Facebook has tried out offering physical

any other communication channel, including calling on

decals for marketers to place in their store windows

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

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

interacting via email (11%).

messaging in other channels, such as email. With either form of shortcode use, the biggest advantage

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

is the integration potential. SMS callouts can appear

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

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

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

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

adults have opted in to receive commercial messages

In that sense, shortcodes are the most adaptable

on their mobile phones with an average of three

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

companies sending them mobile messages monthly.

How SMS fits in with marketing plans There 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 communication Branded 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

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

text message to that number to opt in to updates or engage with the marketer. Marketers benefit from

SMS contest entries: Brands can offer users the

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

option to text in exchange for a contest entry. Universal

a lengthier setup process compared to other forms of

Home

SMS marketing.

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

Entertainment

ran

an

SMS

remarketing

Fight to the Finish.” Website visitors were encouraged Shared

shortcodes:

run

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

campaigns on shared codes. For instance, Facebook

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

enables marketers to have consumers become a fan

for an SMS reminder when the DVD went on sale.

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

This is a great example of how brands can drive SMS

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

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

with millions of pages, as each page has its own

OOH or digital).

28

Marketers


can

also

SMS Marketing

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

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

or a theatrical new release targeting entertainment

SMS Advertising: Marketers can append their

Marketers can use SMS to align their brand with

messages to content that consumers subscribe to via

an activity that appeals to their target audience.

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

In late 2009, State Farm sponsored a SMS-driven

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

game at a University of Kansas football game. Fans

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

were encouraged to text in to show their school

driving traffic or engagement.

allegiance. State Farm was able to follow up with

questions).

participants later via mobile. When considering Marketers can also buy ad space

SMS, marketers should limit the focus

from mobile search providers such as

of their programs to content that

ChaCha, a service that allows users to

aligns with their target consumer’s

text questions in to “242242” (ChaCha)

mobile behavior.

and receive answers back via SMS. The questions are categorized (e.g. travel, entertainment, local geographies) and

question. This type of program can

Ads appended to SMS alerts allow consumers to opt in to marketing promotions and content

work for any brand looking to align with

Image source: 4INFO

brands can append their message to the answer the user receives to their

specific content (e.g. health insurance marketers targeting health questions,

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29

•

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 relevant 1 Stay

When targeting content with any SMS publisher, ensure that your message belongs there.

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

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

Marketing options for text message content

before messaging to users. SMS messages can

Even with the limited character space, marketers

cost money, so it’s important that the recipients

have many options for the content they distribute and

know what they’ve signed up for and understand

promote via SMS:

the implications.

•

Text content, such as product information, informative tips, polls or trivia questions

3 Offer something of value

•

Links going to a mobile website

The last thing users want is spam on their phones.

•

Links to maps, such as for store locators

Offer something they care about in exchange for

•

Click-to-call links, leading

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

consumers to retail stores or

code or a link to exclusive content).

call centers •

it for time sensitive events 4 Use

Multimedia, such as images,

Interested users will appreciate the reminder.

videos or ringtones

Conclusion SMS can work well for time-sensitive promotions, such as in this American Idol tune-in reminder

SMS provides a turnkey way for marketers to tie

Image source: iPhonematters.com

conjunction with other types of media, creative and

together a variety of programs. On its own, SMS may not create a large impact, but when used in content, it can create a path through which users can become more deeply engaged with your brand.

30


SMS Marketing

MO

AD BI VE LE RT ISI N

5 G

MOBILE ADVERTISING KEY 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


Online display, apps, video

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.

This chapter will provide an overview of mobile

Geolocation

advertising opportunities, explore how each media

•

Marketers can locate users in several ways, such

tactic compares to its desktop counterpart, offer

as through GPS or wireless tower signals, check-

frameworks for evaluating when to include each in your

ins at local businesses through social applications,

plan and review overall best practices. Finally there will

and by using ZIP codes or localities entered in

be an overview of what can be measured to gauge

search or weather queries.

success based on the goals of your campaign.

Carrier •

Targeting options

Marketers can specify which mobile providers they would like to target.

Mobile marketing offers various ways to help advertisers

Handset/Operating System

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

•

based on location, demographic information, content

Marketers can select if they want to target users of the iPhone or select BlackBerry devices, or users

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

of the Android operating system.

particular devices and carriers. Here are some targeting

Demographic

methods that you can employ across many forms of

•

mobile advertising:

32


By tapping into non-personally identifiable information provided by the carriers, marketers can

Mobile Advertising

select if they want to target men or women in a

Mobile display

certain age range.

Mobile display encompasses any type of banner

Contextual •

Marketers can display ads next to relevant content

applications. According to ABI Research, spending on

within the app or site.

mobile display is expected to grow from $313 million

Behavioral •

advertising that takes place on mobile websites or within

B ehavioral targeting is still in its infancy due to

today to $1.2 billion by 2015, fueled by the growth of U.S. adult Internet usage.

limitations on tracking users from app-to-app and app-to-WAP. However, companies like

Buying mobile display

Millennial Media offer solutions that can track

Mobile display can be priced on CPM (cost per thousand

users’ movements from WAP-to-WAP. Millennial

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

MYDAS™ Audience utilizes user profiles, opt-in

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

survey data and publisher-provided meta-data

buying traditional online media, brands should consider

to create audience segments. Furthermore, it

which type of pricing will help them accomplish their goals.

is widely speculated that eventually marketers will be able to tap into iTunes-rendered user

•

CPM – buying guaranteed impressions: CPM media

behaviors and run an iAd campaign to target

is good for branding campaigns where it’s important

users. Despite these advances, mobile browsing

to achieve a specific impression level and/or run on

behaviors differ from online, and currently there

specific sites.

is no way to track or target users from online to mobile or vice versa.

•

Publisher-created targeting •

CPC – buying clicks: CPC media works for marketers who want to guarantee traffic to their mobile landing

Publishers often offer their own custom targeting

page, but who may not be as concerned with where

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

their advertisements run.

example, Pandora launched its own iPad app that enables marketers to target ads by gender, age,

•

CPE or CPD – buying ad engagement or downloads

location, type of music and time of day. Similar

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

to full-screen rich media units such as iAd and

CPD ensures that a mobile program will deliver the

Greystripe’s Immersion Ads, when a user clicks on

exact action that a marketer is seeking. This type

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

of pricing is good for brands that have invested in

page without interrupting the streaming music.

interactive creative and want their target audience

Some of the initial sponsors include Starbucks,

to interact with their brand within the unit. It also

Lexus and Budweiser.

works for marketers who have mobile apps and are interested in driving downloads.

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33

Smartphone Banner Ad

Smartphone Text + Tile Ad

Banner Ad

Text Ad

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

The majority of mobile inventory is currently sold

are able to sell mobile inventory on their own. This

through mobile ad networks. Similar to the early

works for marketers looking to round out an existing

days of online display advertising, networks provide

offline or online buy with that publisher, or for marketers

a way for publishers to sell inventory on their mobile

who have custom offerings. It is difficult to scale with

sites without dedicating a sales force to it. As mobile

publisher-direct buys because inventory levels are still

inventory and advertiser interest in the medium

relatively low.

increases, however, more publishers may opt to sell

Mobile banners

it on their own.

Mobile banners can be targeted across various Mobile ad networks provide reach and scale to

channels

and

categories

of

mobile

sites

and

marketers looking to buy within the channel. Because

applications. In addition, marketers can also target

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

mobile banners against behavioral and demographic

specs or sizes. Mobile ad networks help marketers

attributes.

navigate the landscape and serve as a one-stop shop. As with any ad network, the trade-off for marketers is

One of the major benefits of mobile banners is

less control over where the ads run, but marketers can

that campaigns can be built around the post-click

mitigate this by excluding sites or specific content that

experience of the banner and do not need to drive the

isn’t appropriate for their brand.

user to a mobile site.

There are a handful of publishers such as The New

A major challenge facing mobile banner advertising

York Times, CNN, Weatherbug and Photobucket that

is the lack of standards across the various ad sizes.

34


Mobile Advertising

Marketers are often required to develop ad sizes for

Mobile video

a number of devices ranging in size from 120x20

According to Nielsen’s Three Screen Report, more

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

than 20 million users watched a mobile video in Q1

third-party tracking technologies are still a work in

2010, which represents an increase of more than

progress. Marketers must often resolve discrepancies

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

that arise between mobile publishers and third-party

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

reported numbers.

billion in 2014.

Does this mean marketers should stay away from

Mobile video opportunities include pre-, mid- and

mobile banners? Definitely not. While mobile banners

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

may require more upfront work, they can still be used

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

to meet campaign objectives such as awareness,

as well as full-page video interstitials that take over

traffic and engagement.

the entire screen prior to content. Marketers can also create custom video companion ads or customized

Mobile banner advertising best practices

video channels to promote their brand.

into account the various operating systems 1 Take 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).

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

about where you want your mobile 4 Think banners to show up, such as on mobile webpages or within applications.

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35

Best practices for mobile video that the aspect ratio for the video is 1 Ensure

correct, as it will differ from the web and varies across mobile devices.

sure the video will work on a small screen; 2 Make 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 Carousel ad: On a custom landing page, consumers can scroll through multiple video ads or clips. Source: AdMob

uncomfortable delays in video load times. to the post-click experience, think about 4 Similar what the post-viewing experience should be.

use online benchmarks. Instead, create 5 Don’t

new ones for mobile, as the user experience will vary. Certain publishers and networks will have benchmarks for various verticals.

Mobile in-game ads According 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. MMS video ad: Marketers can send video ads via multimedia messaging service.

Similar to PC or console-based video game advertising,

Source: Mogreet, via mocoNews

brands utilizing mobile in-game advertising have the opportunity to reach a rapt audience before or during a transition in gameplay.

36


Mobile Advertising

1

2

3

4

5

Game reaches a natural transition point (example: end of level)

Ad is displayed

Ad menu is displayed

User selects ad action

Selecting “Done” returns user to game where they left off

Ads within games can be games themselves Source: Greystripe

The sequence above is an example of an advertising campaign on Greystripe’s mobile network. While playing

your investment until you’re sure your target 2 Temper

audience will engage in gaming. Most in-game

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

advertising is sold on a CPM basis, and branded

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

games usually require a development cost.

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

3 Understand the audience of the game before Many advertisers have seen great success with mobile

choosing to advertise on a specific game. Gaming

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

audiences differ dramatically, as a casual gamer

audience and if they engage with gaming on or off the

will likely be very different from someone who

mobile phone.

plays a first-person shooter action game.

Best practices for mobile in-game ads

4 Provide

value

through

entertainment

or

interactions that appeal to your audience. It’s not

if your target audience is likely to 1 Determine

just about getting your message out there, but

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

rather providing an experience that makes the

ads can work best for marketers who have had

distraction from the game worth it.

success with other gaming programs.

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37

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

Prestitial ad: Step Up 3D

user’s attention with these ads:

Image source: Photobucket

•

Expandable ads are banners that load as

app or site in order to reveal more information. The

standard-sized ad units, and then when the user

expanded portion of the ad can contain anything from

scrolls over them, they expand over the content of the

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 Expandable ad: Best Buy

choosing iAd as of summer 2010. Marketers should

Source: Greystripe

check to see if Apple has addressed any of the

38


Mobile Advertising

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

Interstitial ad: 90210 Image source: Jumptap

prices or even for free. interactivity, and click actions without leaving the Cons: •

•

actual application. Greystripe’s technology allows

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

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

monetary commitment up front.

Flash and transcode them into HTML5 format that is

At first, these units may have high bounce rates

readable on iPhone and iPod Touch.

from people clicking just to play around and

•

experience the ads but not actually have any

Beyond iAd and Greystripe, other ad networks

interest in the brand or the campaign. On the

such as AdMob, Millennial Media, and Medialets

flipside, this could benefit some advertisers who

can deliver immersive creative experiences within

are running a brand awareness campaign and seek

applications. Marketers should consider a number

to capture early adopters.

of factors when evaluating such networks, including

Apple is solely selling, developing and hosting iAd.

reach, audience demographics, creative offerings,

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

targeting capabilities, transparency of placements,

house or use your creative agency.

development time required and the responsiveness of account personnel.

Greystripe’s Full Screen Immersion Ads (formerly iFlash Custom Ads) are an alternative to iAd and offer a

Measuring mobile advertising campaigns

similar experience that involves rich media animation,

Depending on the objective of your campaign, you

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39

will want to consider how to best measure success.

•

Impressions are generally recorded in aggregate.

For instance, a branding campaign may involve

However, it is important to consider unique

measuring awareness or lift, impression volume, or

impression data in order to accurately determine

engagement. Direct response campaigns, meanwhile, may measure clicks, conversions, calls received or

the true reach of a campaign. •

Engagement reflects how users interact with a marketer’s ad unit or messaging. Interactions can

coupon redemption.

include mouse-overs, clicks, video plays, and

Brand metrics •

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

Brand awareness and lift can be measured using marketing research companies such as Insight

Direct response metrics

Express, Dynamic Logic or comScore to conduct

•

Clicks are a meaningful measurement metric if site or

studies. These studies typically require a specific

app traffic is the main marketing objective. In order

budget and multiple ad units in order to reach a

to gauge the value of the clicks, marketers should

significant impression level. Marketers can apply

consider the bounce rate, which represents the

what they learn from these studies to optimize

percentage of initial visitors to a site who “bounced” away rather than interacting with the site.

creative concepts and messaging. •

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 experiences Image source: Erica Ogg/CNET

40


Mobile Advertising

•

•

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

publishers. If tracking application downloads through

when clicked, populates the phone’s dialpad with

the iTunes store, the developer needs to install a code

the number. If properly set up, marketers can track

snippet that enables the publisher to record conversions.

how many calls were received, the duration of the

Since discrepancies often exist among ad servers, we

calls, and if the desired action was taken.

recommend using third-party ad server click trackers

Couponing offers a convenient way to target

and standard tags to compare click and impression

promotions to a medium that is always on and

data. Third-party tracking capabilities should evolve

can act as a redemption tool. Marketers can track

quickly to meet the pressing advertiser demand.

coupon redemption and see revenue generated by each individual code to capture granular ROI.

Conclusion

Phones enable users to consolidate customized

Advertising models for mobile have evolved to be

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

very similar to desktop advertising models, yet it’s

to trace use of coupons to prevent multiple

important to consider how people use their mobile

redemptions and also track redemption rates.

devices compared to how they use their desktop

(See more on couponing in the section on Mobile

or laptop computers, and how mobile campaigns

Shopping, page 69.)

should differ in light of this.

Tracking mobile advertising

A mobile device is unique to an individual, whereas a

Although marketers can track clicks and impressions

computer may be shared at home. A mobile device

using third-party ad servers such as DART, tracking

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

conversions via third-party tags remains a challenge.

unlike computers that get turned off or put away.

Therefore, as these ad servers focus on building

Understanding the nature of how a mobile phone

out tracking and reporting capabilities, the burden

fits into someone’s life allows marketers to devise

of providing the analytical data rests mainly on the

strategies that make the most of this channel.

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41

MO SO BI L C MA IA E RK L ET IN G

6

MOBILE SOCIAL MARKETING KEY FACT

More than 150 million people access Facebook from mobile devices each month

GOALS IT ACHIEVES

Branding, engagement, drive to store


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. Preparing for mobile social’s challenges

Marketers, agencies, publishers, technology providers

Marketers who start learning what works with mobile

and others will need to overcome these challenges to

social media can wind up well ahead of their peers and

keep pace with the consumers and where they are

provide added value for consumers in the process. On

increasingly spending their time.

the other hand, there are plenty of hurdles with mobile social marketing: •

•

•

•

Mobile social media by the numbers

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

comScore’s April 2010 data reveals that social

clear ownership within marketers’ organizations.

networking is the fastest growing mobile content

There’s a higher learning curve in both mobile

category, whether accessed by mobile applications

marketing and social media as neither offers

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

clear-cut application of the media buying skills that

users ages 13+ engaged with social networking via

marketers have honed in other media.

applications, up 240% over the previous year, and

Metrics are still a work in progress, as are the

30 million users engaged with social networking via

business models of many vendors in the space.

mobile browsers, up 90%.

Budgets are often too small to gauge the real impact of a campaign, and the process can turn off some

Facebook reports that more than 150 million active users

who want immediate results on a large scale.

access the network through their mobile devices. Users

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43

accessing its mobile services are more than twice as

heavily on social features. For instance, Words With

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

Friends by developer Newtoy is an asynchronous form

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

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

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

recorded more than 6.5 million downloads. Gaming

usage was on social networking sites.

company Ngmoco has developed a number of mobile social games where users derive in-game benefits by

Categories of mobile social media

cooperating with each other.

Mobile social media comprises a broad field, but here are some of the key forms it takes:

Mobile web-based sharing: Any mobile-optimized webpage can include various calls to action to share

Mobile extensions of online social networks: The

content and offers with friends.

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 44


Mobile Social Marketing

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

App-based

sharing:

Many

applications

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

utilize

Facebook Connect to make it easy to share updates or photos directly through the social network. Apps

•

MyTown is more of a game than a utility. Players

will often allow users to find and invite their friends

can buy locations and collect rent as they upgrade.

through Facebook, Twitter and other networks.

For example, H&M offers branded virtual goods to players who check in at their stores. These goods

Location-based check-in services

provide large point boosts in the game to help

An emerging field within mobile social media is location-

players level up. Advertising Age reported, “During

based check-in services, where consumers use mobile

the campaign, H&M was the most searched location

devices to say where they are, often to earn virtual

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

rewards such as badges and virtual goods. The crowded

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

field of these services includes Foursquare, Gowalla, MyTown, Whrrl, Buzzd, Loopt, Brightkite, SCVNGR

•

CauseWorld encourages consumers to scan select

– and most recently, Facebook Places. Google and

Kraft products in stores to earn “karma points” that

Yelp have also incorporated check-ins into their mobile

can be donated to charity.

applications. CauseWorld has turned these actions into acts of kindness with a philanthropic hook, and

•

IHG (InterContinental Hotels Group) partnered

FoodSpotting lets consumers upload photos of what

with Gowalla to extend its Hit It Big promotion.

they’re eating wherever they go.

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.

Most of these services don’t have the scale to attract marketers looking for mass reach, but many have growing and dedicated audiences with

•

Loopt launched its companion app Loopt Star to

disproportionate numbers of digital influencers,

reward consumers’ loyalty for checking in to local

and there are opportunities to reach consumers

businesses. Promotions include Gap offering 25%

with the right psychographics and demographics

discounts for consumers checking in twice to

for certain brands.

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

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

TV network Bravo offers branded badges on

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

Foursquare for those who engage in activities

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

mirroring the characters on their reality shows. Checking into a New York City restaurant, one might earn the martini glass badge that says, “Way

•

Brightkite ran a promotion with Starbucks that used augmented reality to locate grocery stores

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45

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

Developing a mobile social marketing strategy

be tapped for more information and mulitmedia

When planning a mobile social marketing program,

content, including videos.

marketers don’t have to reinvent how they go about

that sell the company’s VIA products. When

developing a strategy or determining whether opportunities Now is a good time for marketers to experiment

make sense. There are four criteria in particular you can

with location-based social promotions, as there are

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

opportunities to build fun, creative promotions that meet

which comprise the Social Marketing Strategic Lens.

a brand’s objectives. Marketers should find a balance

These operate in parallel with the Mobile Marketing

between spending their consumer dollars on reaching

Strategic Lens discussed on page 15.

a mass audience with digital, as well as experimenting with smaller bets that can pay off in a big way to reach

•

Does it use your social media arsenal? Which

influencers who can help spread the brand message

assets do you have that could resonate well across

organically. Influence, not just scale, matters.

mobile social media (digital content, physical or

Bravo rewards “real housewives” with Foursquare badges.

46



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

virtual goods, celebrity spokespeople, etc.)? •

Does it leverage your arsenal?

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 follow the rules of the road?

Does it meet your objectives?

Does it provide a value exchange between

Does it provide a value exchange?

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

360i’s Social Marketing Strategic Lens

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.

Conclusion Social 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.

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47

THE NAIL FOR SOCIAL MEDIA’S HAMMER INTERVIEW WITH MICKEY ALAM KHAN EDITOR IN CHIEF, MOBILE MARKETER

M

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.

What characteristics of mobile devices lend

How much of mobile social media involves

themselves well to social media?

extensions of online social media (e.g., Facebook, Twitter, etc.) versus offerings unique

The anytime-anywhere-always-on nature of mobile

to mobile devices?

phones lends itself well to social media, which is all about connectivity and openness. The phone is with

I think online social media services such as Facebook

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

and Twitter rule mobile social media simply because

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

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

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

are strong social media brands such as MocoSpace,

48



...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

What challenges can marketers expect, and are

phenomena.

there any ways to mitigate those challenges?

Facebook and Twitter are easier to use on mobile

Marketers can expect consumers to be in even more

devices since the handset constraints require simple

control of what marketing and communications they

design and cut to the chase. How they can monetize

prefer. Newer mobile devices and better sites and

social media on mobile devices is another story.

applications will raise expectations of the quality of messages delivered, authenticity of experience, value

Why should marketers care about mobile social

delivered and privacy offered.

media? To avoid any social media mishaps, marketers must Buzz thrills – or kills. In this day and age when mobile

understand that social media is first and foremost a

consumers set the tone for communications, it is

medium for consumers to communicate with each

key for marketers to understand how to manage

other and shoot the breeze. Any marketing interruption

their reputation on social media sites and services.

has to be a whisper, not a yell.

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.

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49

MO

NS

AP BI PL LE ICA TIO

7

MOBILE APPLICATIONS KEY FACT

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

GOALS IT ACHIEVES

Engagement, branding, customer retention


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.

Mobile app usage trends

How marketers can use mobile apps

One of the biggest drivers of app usage is smartphone

Marketers have three primary options for reaching

penetration. Nielsen reports that by Q3 2011, roughly

consumers through mobile applications:

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

•

Advertise: Ad networks such as AdMob, Quattro

and smartphone market share will only increase from

Wireless, Millennial Media, Medialets, Greystripe,

there. comScore reports that U.S. mobile subscribers

Celtra and countless others can run ads within

are about as likely to have used a mobile browser as

applications. It’s also possible to run custom

they are to have downloaded apps, with both activities

promotions directly with many app publishers and

growing fast quarter over quarter.

developers. Major publishers such as top news and weather apps may offer app ads bundled into

Apple’s leadership here is uncontested. More than

a broader cross-channel deal. Ad formats include

5 billion apps have been downloaded across Apple

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

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

call, store locators and games.

apps are currently available. The second largest app market, GetJar, is an independent provider offering

•

Integrate: Marketers can work with select app

apps across various platforms; it has recorded more

publishers and developers to create custom,

than 1 billion downloads.

integrated experiences that are far more involved

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51

•

than ad buys. Several such examples are included

ideas and changes in the technological capabilities

in the Mobile Social Marketing chapter. Some apps

of mobile operating systems and handsets.

even reject standard ad units and will only run

Updates also encourage consumers – who may

custom promotions. These are of course harder to

have moved on to other apps – to return and give

develop and scale than running a mobile banner

it another shot. This kind of commitment takes

across thousands of apps, but the impact can be

strong leadership and buy-in to muster the time

considerable, as marketers may find deeper ways

and budget required to keep it going, especially if

to connect with their target audiences.

the app takes time to gain traction.

Build: Building applications is an option for

How marketers are using branded apps

marketers, and the examples below show how

Marketers have already deployed thousands of custom-

apps have successfully been developed to fit in

built apps. The application examples provided here are

with a marketer’s overarching goals. There are

for the iPhone, since marketers tend to follow the lead

several challenges though:

of both consumers and developers in starting with the

-- Most popular apps are for gaming and

most app-friendly platform, but marketers have also

entertainment, which may be a fit for certain entertainment and CPG brands but

found success creating apps for Android, BlackBerry and other operating systems.

is often not in line with objectives for other marketers.

Kraft

-- Marketers will need to allocate

Kraft’s iFood Assistant, one of the first

sufficient budget to build the app

and still most popular branded mobile

and promote it. Without a strong

apps, helps grocery shoppers decide

commitment to promotion, the app

what to buy and offers recipe ideas for

may never gain enough visibility to

home cooks. The most entertaining

break through the tens or hundreds of

content, cooking videos, still serves a

thousands of other apps. Marketers

very functional purpose, and consumers

should also consider what channels

are willing to pay $0.99 for the privilege –

they have available for promoting the

money they can potentially earn back by

app, from email to in-store to branded

reviewing the “budget wise” suggestions

social profiles.

within the app.

-- App development requires an ongoing commitment. The best apps, branded or unbranded, go through constant iterations as they improve based on consumer input, internal 52


Mobile Applications

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

Tiffany & Co

The iPad may in time resemble the iPhone more,

Consumers shopping for products with higher price

presumably with a front-mounted camera in a future

points than a typical grocery list can also find relevant

edition to enable video chat and other app interactions.

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

But it will never be as portable as a device someone

minded consumers browse engagement rings and

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

schedule expert consultations via phone or in-store.

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

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

targeting an audience that’s using the iPad or sees

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

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

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

of traditional content, while providing enhancements such as interactivity and portability.

Top 50 Apps by Category 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

iPhone/iPod Touch

iPad

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.

Utilities

Utilities

Games Games

Silicon Alley Insider analyzed the top 50 apps for the

Productivity Content

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

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

inclined to lean back and consume content or lean

Source: Sillicon Alley Insider

forward and get to work.

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53

Evaluating mobile platforms for developing apps

technologies that make the most sense for your brand and consumers.

The mobile landscape is fragmented into an alphabet soup of competing technologies, platforms

There’s no question that iPhone and Android apps

and standards. Should you build for the iPhone,

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

Android and BlackBerry, or should you concentrate

latest, most powerful devices backed by technology

on just one platform? Should you support both the

titans Apple and Google. However, there is a gap

iPhone and iPad? What about the different versions

between the number of apps available for these

of Android?

growing platforms and the number of people who actually own the devices.

There isn’t one, simple answer – and there won’t be anytime soon. The key to developing a successful

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

mobile app or website is to select the devices and

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)

Symbian iPhone (iOS) Android Java ME BlackBerry Flash Lite Windows Phone 3500

3000

2500

2000

1500

1000

500

0

0

50,000

100,000 150,000 200,000 250,000

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

54


Mobile Applications

for app development with their large install base.

to the same functionality available on your existing

However, it’s worth noting several points about this

website. The primary difference is that the content

data:

and functionality is optimized to display in a mobile

•

•

Older platforms (such as BlackBerry and Windows

browser. This is something all companies should

Phone) lacked app stores until very recently, which

consider doing. The fact is that mobile browsing is

accounts for the low number of available apps.

growing by leaps and bounds, and providing a mobile-

It took the Java ME platform (which represents

optimized experience is fast becoming a requirement.

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

•

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

The second type of mobile website is more like an app

took just 2 years. Development activity on Java ME

in that it provides specific functionality. For example,

platform has slowed significantly as consumers

a car insurance company may have a mobile website

turn their attention to smartphones.

that allows users to begin the insurance quote process,

Some platforms are easier to develop for than

but does not provide every other service available on

others. iPhone OS and Android are developer-centric

the company’s website.

platforms, while developing for the BlackBerry or Windows Phone is much more complicated.

A mobile app is an actual program that’s installed on a mobile device – the same way Microsoft Word is

Developers are definitely paying more attention to

installed on your computer.

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 apps A 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

Mobile App

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Mobile Website

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55

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: 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 &

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

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.

Distribution

Device Capabilities

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

56

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


Mobile Applications

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

(continued from previous page)

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

Methodology for mobile app and website development

•

Is it useful to consumers?

•

Are there existing apps or mobile websites that do the same thing? If so, what are your

It’s critical to have a process for evaluating whether a

differentiators?

mobile app or website is best for you. The questions below dovetail with the Mobile Marketing Strategic

•

How will it benefit your brand and business?

Lens (see Planning in Mobile Marketing, page 15) but go into far more detail for this scenario.

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

the value proposition 1 Define

to do too many things poorly instead of a handful

For every successful mobile website and app,

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

there are thousands that aren’t used or languish

large enough audience to be worth the effort. The

in app stores. Make sure that your mobile website

key is to determine the audience that will get the

or app has the potential to rise to the top by

most benefit from the mobile website or app, and

validating the concept.

then tailor functionality to meet their needs.

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57

a vehicle 3 Choose

If building an app, choose a platform

There are several decisions to make when

Your first step toward a decision should be

selecting a platform for mobile development.

taking a look at the web server logs of your

First decide whether to build a mobile website

existing website. You may find that you’re

or app.

already receiving traffic from mobile devices, and understanding which devices can help

Build an app if your concept requires any of the

guide your platform decision. Developing for

following:

multiple platforms at once is generally a risky

•

Rich, interactive graphics and user interface

decision – especially if the concept for your app

•

High performance

is unproven. Instead, marketers can mitigate risk

•

Usability without an Internet connection

by picking one platform to focus on and learning

•

Use of native device capabilities (such as the

from and applying any lessons into the releases

GPS or camera)

for subsequent platforms.

•

Access to other applications on the device (such as the address book or calendar)

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

Build a mobile website if your concept requires

Understanding how users are interacting with

any of the following:

your app will guide future releases. Established

•

More frequent updates

tracking

•

Shorter development times (in most cases)

Omniture, CoreMetrics, WebTrends and Google

•

Less need for an immersive user interface,

Analytics have solutions for tracking mobile

and more focus on presenting data

websites, although these solutions aren’t always

Lower barrier to entry (no installation required)

appropriate for apps. A number of services have

•

and

analytics

vendors

such

as

sprung up to fill this gap, tracking everything from Mobile websites can work perfectly well for product

the number of installations, geographical location

information, comparison shopping, store or venue

of app users, app revenue, and app usage and

location, basic information about entertainment

behavior. Select vendors include:

properties and commerce. Advanced elements

•

Pinch Media (http://pinchmedia.com)

such as games and barcode scanners don’t work

•

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

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

•

Localytics (http://localytics.com)

provide immersive entertainment or rich product

•

appFigures (http://appfigures.com)

demos, such experiences may only be possible

•

Flurry (http://flurry.com)

through apps. 58


Mobile Applications

Beyond tracking your mobile app or site, also

Below is a table of the price point distribution for

keep an eye on your main website’s analytics to

the 200 most downloaded paid apps on Apple’s

determine if significant numbers are arriving from

App Store as of July 2010:

mobile devices, and view the trends over time. An influx of mobile visitors may help justify the

# of Apps

Price

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

126

$0.99

on your sites for visitors using the mobile operating

33

$2.99

21

$1.99

14

$4.99

3

$6.99

2

$3.99

1

$7.99

1

$14.99

1

$49.99

investment in a more robust mobile presence. Be

systems represented in your reports.

5 Decide price point There 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,

•

•

Free and Paid Version: An option that’s

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

been widely adopted over the past year is to

users can then purchase individual books

release both free and paid versions of apps.

from within the app. Many games also use

This strategy allows users to experience

this functionality, allowing users to buy game

your app with limited functionality, and then

items or access to advanced levels.

upgrade to the full-featured version once

P aid: App Store pricing trends change over

they’re hooked.

time, although $0.99 is still the de facto standard. More complex apps generally fall

6 Integrate advertising

between $2.99 and $9.99. A small number of

See the chapter on Mobile Advertising to learn

specialized applications (such as navigation

more about how marketers can run advertising in

apps) can be upwards of $50, but these

mobile applications.

apps are rare.

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59

Best Practices for Mobile Websites and Apps

Best Practice

Mobile Website or Mobile App

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

Both

scales to fit 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

Mobile Website

instead of yourbrand.mobi) 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

Mobile App

camera)

60


Mobile Applications

7 Plug in social networks

Background

Users are increasingly engaging with social

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

networks via mobile devices. Marketers can take

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

advantage of this trend by embedding social

No other technology competed with its support for

technology inside mobile websites or apps.

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

The largest and most obvious option is using

agnostic and cross-platform availability.

Facebook. Facebook’s API allows you to share app activity (such as a high score in a game, a

The iPhone, however, has never supported Flash, and

purchase or an event) back through the social

Steve Jobs has declared it never will. Apple instead

network.

has cited that much of the web’s content was available on its phone, and content providers can use an

A good rule of thumb is that any social network

alternative: HTML5.

API available to a traditional website is also available to a mobile website or app. Some social

A new challenger arrives

networks have created mobile-specific APIs to

HTML5 is the newest version of the language that

ease integration for developers.

powers the web. It represents an attempt to adjust to the dramatic changes the web has undergone in the

8 Refine over time

decade since the last major revision. Most significantly,

Finally, users expect apps to be updated over

it offers developers built-in tools to handle animation,

time. Evaluate user feedback, tracking data and

interactivity and video — all the areas in which Flash

changing business goals to create a roadmap for

has a virtual monopoly.

app updates. Apple has a huge amount of influence over HTML5’s Most importantly for both mobile websites and

immediate fate, because of WebKit — the rendering

apps – remember that you are designing an

engine that powers not just the iPhone browser, but

interface for a finger, not a mouse. Positioning of

most other “full” mobile browsers. Because WebKit is

elements on the screen, and control gestures such

so widely used, any technology it supports will achieve

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

market penetration extremely rapidly.

Flash vs. HTML5

The impact on marketers

The rise of the mobile web and smartphones set

As new technologies grow in popularity, marketers

the stage for an unexpected conflict: Adobe’s Flash

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

platform vying for relevance against HTML5 and other

long-time dominance on the web has provided the

related web technologies.

time to develop a variety of ways to use its capabilities

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61

to create effective and interesting advertisements.

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

But the mobile space is still in its infancy, and it remains to be seen how much of the technology that’s already

Conclusion

been developed will be transferable to it. Without

For the foreseeable future, both apps and the mobile

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

web will keep taking up more of consumers’ time and

the first companies to master it will reap the benefits.

attract wider audiences, especially as smartphone

Developers and creatives will need to learn new skills

penetration takes off. The competition for attention within

to take advantage of the opportunity.

the app market is daunting, and standing out requires a marketer’s steadfast commitment. If creating a branded

Don’t get lost in the hype

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

If HTML5 displaces Flash on the web, it will inevitably

goals, there are still other ways to reach consumers.

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

Some of the toughest decisions will be whether to

Flash is hardly dead yet. There are still many things

prioritize mobile app or website development, as both

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

figure prominently into mobile users’ consumption

and Flash has the additional advantage of a huge

habits. Use the criteria in this chapter to evaluate which

developer base and a mature suite of development

option will best achieve your goals.

62


Mobile Applications

HOW MOBILE MARKETING CAN FUEL BUZZ ENGAGEMENT FOR ENTERTAINMENT BRANDS INTERVIEW WITH VALERIE BROWN DIRECTOR OF CONSUMER MARKETING BRAVO

v

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.

What are BRAVO’s goals when it comes to

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

mobile marketing? How do you approach this

be remiss to not factor in such a personal device

channel as it ties into your overall marketing

into our marketing strategy given its ever-increasing

and business objectives?

importance in the consumer’s lifestyle. Our goal and challenge is to engage the influential BRAVO viewer

The greatest challenge facing television marketers

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

today is the decrease in live viewing, and the increase

mobile users are on smartphones, a valuable insight

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

that validates numerous successful applications on

Mobile marketing presents a unique opportunity in our

the iPhone and iPad such as BRAVO Now, Top Chef

daily task of engaging the consumer before, during

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

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63

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

It was also an opportunity to reinforce BRAVO as an

strengthens our brand identity off-air. Our iPhone

innovator. In being the first entertainment partner,

application, Guides by BRAVO, offers nightlife,

we created meaningful mobile content and rewards

dining and shopping recommendations, including

for viewers. Recently, we partnered with Sephora,

suggestions from our BRAVO-lebrities. In addition,

a like-minded brand in offering Foursquare Real

live experiences such as the BRAVO Talk Bubble

Housewives

encourage viewers to tune-in live for a chance

rewards that were endemic to the show. The buzz

to tweet with their favorite BRAVO-lebrities. Our

generated exceeded expectations. In addition,

emerging

Foursquare

media

team

maintains

a

consistent

badge

holders

provides

a

coveted,

unique

tangible

opportunity

dialogue with the consumer, pushing messages via

for advertising partners in reaching influential

SMS/MMS, introducing them to several successful

consumers such as Real Housewife or Top Chef

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

badge holders who are more likely to recommend

air experiences such as live voting to engage fans

a new product or venue. Imagine checking into a

deeper into BRAVO content and experiences.

department store and being rewarded as a Top Chef badge-holder with a 20% discount. This is

BRAVO was one of the first brands to partner with

the potential we see for Foursquare, and why we

the location-based social platform Foursquare.

partnered with them. Our next steps are exploring

Why did you decide to be part of the initial test

opportunities for scale.

with Foursquare, and how did this align with your objectives?

When do you look to integrate with apps such as Foursquare versus building your own, such as

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

your iPhone Application, Guides by BRAVO?

seamlessly into our mission to engage and create a deeper bond with the consumer on a local level, as

It’s a parallel path. Tremendous challenges exist in

well as a medium to offer tips and recommendations

building a custom application such as timing, cost

from our stars such as Isaac Mizrahi.

and resources in creating and refreshing content. A

64


Mobile Applications

partnership with an existing application with scale

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

allows us to reach digital influencers in the most timely

Custom applications, innovative partnerships and

and cost-effective fashion. In addition, we develop

inventive, integrated advertising allow us to achieve

proprietary apps that speak to the core viewer where

this goal.

we can leverage existing efficiencies. What are you finding most exciting among what’s How

much

of

mobile

marketing

is

about

emerging in mobile marketing?

promoting the TV programs and driving tune-in as opposed to staying top of mind wherever your

Mobile social applications such as BUMP are on our

viewers are and whatever they’re doing?

radar as well as emerging opportunities in the location aware space. With digital leaders such as Google,

Until sufficient metrics demonstrate how mobile

Twitter and Facebook now investing in this space,

marketing can affect a rating, our philosophy is to

location-aware

be relevant, buzzy and ubiquitous. Being top of mind

overall can no longer be ignored.

marketing

blog.360i.com

and

mobile

twitter: @360i

marketing

65

8 CO MM SH E OP RC PIN E G

MOBILE COMMERCE SH0PPING KEY FACT

44% of smartphone users have downloaded shopping apps

GOALS IT ACHIEVES

Sales (online, mobile and offline), purchase consideration


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.

How consumers shop via mobile devices

Compete illustrated mobile’s role in research in a

There are three primary ways consumers use their

study of the travel industry. It reported that less than

mobile devices to shop:

1% of consumers use mobile exclusively for travel research and booking, but 30% of consumers use

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

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

when ready to make a purchase 2 In-store decision

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

transactions directly from the 3 Completing handset

mobile offerings.

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67

Mobile Phone Use for Travel Research and Bookings

web-enabled mobile phones with them into a store can do online research at the point of a purchase decision.”

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

100% 80%

0.4% 30%

Mobile Only Both Online Only 0.2%

0.3%

22%

26%

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]

60% 40%

Scott Dunlap, CEO of mobile shopping service

30% off on an online shopping site. I think it’s very 69%

78%

73%

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—

20%

guaranteed. Retailers need to reward people for 0%

Research

Booking

Total

Source: Compete.com

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 Compete further broke down all the ways smartphone

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

users shop. The greatest numbers use their phones

owners used their phone to purchase apps, ringtones

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

and other content. Another 6% received coupons

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

or discounts from their phone, and 6% purchased

have downloaded a shopping application to their

physical goods or non-mobile content from their

phone, and 39% seek retailer or product coupons.

handsets.

Compete noted 44% of consumers with smartphones

A Forrester Research study in conjunction with

use their devices to check prices of items while

Shop.org released in June indicates the progress

shopping in stores. eMarketer Senior Analyst Jeffrey

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

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

have a mobile strategy or are developing one. Yet

now, researching online and buying in a store have

retailers say consumers using mobile web browsers

been sequential activities that take place hours, days

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

or even weeks apart. But customers who bring their

of revenue.

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Mobile Commerce & Shopping

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

62% 53%

Look up the address of a store or the store hours Check the price of an item while at a store

44%

Review a product description

44% 41%

Check the status of an order that I originally placed online

39%

Look for retailer or product coupons Look up shipping information of an item that I am considering purchasing online

37%

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

37%

Make a purchase on my smartphone

35%

Read a review while in a store

35%

Check the status of a rebate I recently submitted

29%

Source: Compete.com

Mobile coupon usage Couponing is already a booming industry in a global

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

economy bouncing back from a recession. The

well below Internet coupon spending, which will grow

New York Times cited retail technology firm Inmar’s

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

figures showing 50 million coupons were redeemed in 2009, up 263% over the previous year. Coupons are

Mobile couponing is promising in that it rewards

attracting even more interest now thanks to advents

consumers for trekking to retail stores. Like the age-

in mobile marketing. Borrell Associates forecasts that

old store-distributed paper coupon, mobile coupons

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

incentivize purchases, but go one step further to

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69

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

Mobile coupons can be delivered via text message, custom apps, barcodes or other formats.

coupon site or a branded presence elsewhere such

Image source: joepemberton on Flickr

as through a social network.

capture handset data for future marketing efforts.

•

Partner with location-based ad networks and

Creating a mobile-friendly environment is crucial for local

technologies such as Placecast, iLoop Mobile and

store managers, who should ensure that signal levels

NearbyNow, along with other mobile ad networks

on all major carriers are strong within their floorspace.

discussed in the Mobile Advertising chapter, to

Otherwise, prospects may leave to find a signal.

target consumers with offers in specific locations. Consumers can receive offers directly from the mobile ads.

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

•

Offer coupons through out-of-home technologies

full testing mode. Mobile is a long way from mass

such as Blue Bite that deliver coupons in select

penetration, but growing in its importance as a staple

stores or outdoor environments via Bluetooth or

of marketers’ plans.”

Wi-Fi networks.

How mobile coupons work

Coupons can generally be redeemed in stores at a

Mobile couponing can be effective for customer

register by having the consumer show the cashier

retention, driving consumers to the store or reaching

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

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

also possible to scan the phone directly. A pioneer in

coupons compared to their print counterparts is that

the space is Target, which in March 2010 claimed to

70



be the first national retailer offering scannable mobile

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

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

Milwaukee hamburger restaurant AJ Bombers

mobile site, or by texting “coupons” to 827438

offered a free cookie to any Foursquare user that

(TARGET). Consumers are then directed to a landing

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

page with multiple offers available at the nearest

netted a 30% increase in purchases. During summer

Target, all of which can be redeemed by scanning a

2010, Twitter launched its @earlybird account

single barcode at checkout.

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

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

Other forms of coupons are evolving through social

rapidly online. Through mobile media, analytics can

media. Foursquare reported that when Starbucks

connect online and offline behavior.

offered $1 off any size Frappuccino for its mayors,

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71

Mobile payment options

PayPal rival. Going forward, look out for a program

As consumers increasingly complete transactions

reported by Bloomberg where Discover Financial

directly from their mobile devices, there are many

Services and Barclays are working with AT&T, Verizon

overlapping and competing ways to pay for purchases:

and T-Mobile to develop a way for consumers to pay by swiping their smartphones over terminals.

•

Credit cards: While credit cards are ubiquitous for most mobile phone owners, entering a 16-digit

•

Pay via phone bill: Services like Boku allow

credit card number on a tiny keyboard or touch-

charges to appear on a consumer’s mobile phone

screen can try consumers’ patience, especially

bill after opting in via SMS.

when consumers must also enter billing and shipping information.

•

Peer-to-peer payments: PayPal created an app incorporating Bump Technologies that allows users

•

Stored registration by site or application: Sites

to pay one another by tapping their iPhones together;

such as Amazon have many users’ registration data

payments can also be sent from the app via email.

on file, and billing and shipping preferences carry

Startups like Venmo also allow mobile money transfers.

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.

•

Scan credit cards with mobile devices: Square, launched by Twitter co-founder Jack Dorsey, allows any merchant or user to accept credit

•

Stored registration by handset: The defaults for

card payments directly from the mobile device.

making purchases for applications via the iPhone

Retailers could provide these devices to their sales

and Android respectively are through iTunes and

associates or collect payments at events.

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

72


Square turns any smartphone into a credit card terminal


Mobile barcodes

currently has no app store online, app developers use

Another quickly developing technology within mobile

QR codes to link to their mobile applications, as Yahoo

marketing is the use of mobile barcodes, and there

did to promote its suite of apps.

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

Yahoo! promoted its mobile apps with QR codes.

thought of as QR codes (beyond QR, there are other similar formats such as data matrix). Additionally,

Barcode case studies

there are many propriety barcode formats built on 2D

Universal Pictures and RedLaser

technologies, several of which are discussed below.

To promote the release of the Jude Law film “Repo

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

Men” that included barcode scanning as an integral

bring up a range of content such as links to mobile

(and gruesome) part of its plot, Universal Pictures

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

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73

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 codes To promote its VitaFresh refrigerators in Germany, Bosch placed oversized, wrapped packages of meat

Select barcode scanners

purportedly coming from dinosaurs, mammoths and

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

saber-toothed tigers in supermarket freezers. The

are some of the more interesting scanners to consider

packages included QR codes that linked to product

for marketing programs, included because of their

information for its appliances, garnering 75,000 views

consumer popularity, marketing applications, technical

from customers in the stores.

capabilities or all of the above.

Jagtag Supports: 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 Tag Supports: Proprietary format, which can be branded Features:

Microsoft

emphasizes

the

control

Unilever and Jagtag

marketers have over creating and tracking barcodes

When Unilever launched its new men’s grooming

through this format that must be scanned with a

product Axe Twist, it created custom branded barcodes

proprietary

with Jagtag. The codes could be photographed

reported

and sent via MMS (multimedia messaging service)

billion tags have already been

to 524824. Consumers in return received exclusive

printed. A range of marketers

video clips that Axe produced with comedy site

and publications are using tags,

Funny Or Die.

from the Mall of America to Get

74



reader.

that

more

Microsoft than

1

Married magazine. Scan the microsoft tag on the

Stickybits

previous page to access a must-read blog.

Supports: 1D and proprietary barcodes Features: The Stickybits scanner, powered by

RedLaser (acquired by eBay in June 2010)

RedLaser, allows anyone scanning a product’s

Supports: 1D

barcode to leave comments with text or multimedia

Features: Scan product barcodes to look for local

and view every “bit” others have recorded. The

and online retailers, food allergens, nearby libraries,

scanner also works with Stickybits codes available

and other information.

for free on the site or as stickers that can be ordered for a fee. Brands can work with Stickybits to have

ScanLife

their own content listed first when their products

Supports: 1D, 2D and proprietary EZcode

are scanned.

Features: The reader scans a range of barcodes, including its own EZcode (pictured at right). Anyone

Conclusion

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

The good news for retailers, packaged goods

accounts have more options for what actions can be

brands, travel marketers and others is that there

taken with the code. Premium

are no longer technological hurdles to deliver

accounts also include analytics

product information, offer coupons and complete

for the number of scans, unique

transactions through mobile devices. All of this is

users, time of scan, handset,

especially easy to accomplish with smartphones,

carrier

and in 2011, smartphone penetration should

and

demographics

(where available).

handily surpass the more limited feature phones in the United States.

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

However, other hurdles are numerous. Coupon

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

scanners can be difficult to implement at the point of

the app includes inventory and pricing information

sale. Staff in stores must be trained how to accept

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

mobile barcodes or SMS-based coupon codes.

AdOns – ads targeted based on the product scanned

The wide variety of barcodes – including the names

and its location. Ads can include content such as

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

product information and video, and its offerings in

marketers and consumers alike, and both seek a

the works include food and allergy information, comic

more consistently reliable experience. With completing

book previews, event tickets, coupons, trailers and

transactions, the challenges trigger flashbacks to

product reviews. Ads are sold on an auction basis for

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

popular barcodes or locations.

site usability issues and widely varying capabilities by

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75

merchants create a chicken-and-egg dilemma.

are. Barcodes themselves are evolving from a novelty to a necessity, delivering detailed product information,

Mobile shopping in many ways will be easier for

discounts and relevant content, and the value proposition

marketers and retailers than the 1990s migration to the

is starting to catch on with consumers.

web. First, consumers and marketers have become far more technologically savvy. Mobile devices are also

Mobile shopping by many measures has arrived. For the

much more convenient for some aspects of shopping.

vast majority of marketers working with major brands,

Coupons can be delivered directly to devices rather

the question is not whether consumers are engaging

than requiring the intermediary step of printing when

in mobile shopping. Marketers instead need to ask

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

how their consumers are shopping with their mobile

seamless experience for consumers with mobile media

devices and how they can reach these audiences as

to fulfill immediate needs based on exactly where they

behavior and technologies rapidly evolve.

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MOBILE INNOVATION : WHAT THE U.S. CAN LEARN FROM JAPAN by NAOKI MURAMATSU VP, DIGITAL BUSINESS DEVLOPMENT DENTSU HOLDINGS USA

D

uring the past decade, Japan has been at the

policy makers, operators, device manufacturers,

forefront of innovating in the mobile space,

content providers, marketers and agencies. Together,

pioneering QR codes, mobile payment systems,

these key stakeholders have helped each other grow

location-based services, mobile couponing, front-

the overall industry as well as drive consumers to

facing cameras and mobile social networking. These

engage with the mobile space.

advanced functionalities and services have moved from innovative technologies to integral parts of

By agreeing on common technologies that all

people’s daily lives in Japan.

competitors can leverage, the Japanese mobile phone industry was able to collectively focus on innovating

As the mobile industry takes off in the United States,

on platforms, instead of focusing on driving platform

here are a few takeaways that we can learn from the

and technology adoption.

mobile phone industry in Japan: LESSON TWO: Competition is the driver of LESSON ONE: Collaboration is key

innovation

One of the main drivers of innovation in the mobile phone

At the same time, while the spirit of collaboration has

industry in Japan has been a spirit of collaboration

turned key stakeholders into partners, competition is

among key stakeholders, including governmental

still the primary driver of innovation, with consumers

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77

...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

being the primary beneficiaries. Operators continuously

United States to review what Japan has done for the

lowered pricing plans to acquire more subscribers,

industry and to evolve for the needs of our market.

content providers developed more attractive offerings to increase traffic, and marketers tried to maximize

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

the power of the new channel by delivering innovative

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

engagement vehicles.

a more consumer-centric approach to developing mobile, we’ll ensure the needs of both marketers and

Two characteristics really helped drive this growth –

consumers are met.

direct billing structure and channel positioning. First, since the beginning, direct operator billing has been

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

widely adopted in Japan, which enabled users to easily

move away from regional mobile platforms to global

subscribe and unsubscribe to paid content; content

ones. With overall mobile growth being accelerated by

providers, in turn, can monetize their content without

the emergence of the smartphone, we must take the

hustle. Second, marketers have utilized mobile both

spirit of “collaborative competition” from Japan and

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

apply it around the world to drive mobile innovation

This channel positioning made mobile an intersection

forward.

of consumers, marketers and content providers, which evolved itself from supplemental media outlets

Eugene Chung, Strategic Development Director at

to generate revenue.

Dentsu Holdings USA, contributed to this article.

78



PA TH RT OU ING GH TS

9

PARTING THOUGHTS 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.

are often less accessible. 1 Insights

How do you develop enough creative units that

Some research firms have beefed up their

work across all of the devices included in a media

mobile offerings during the past year, but such

plan? Fragmentation becomes a hurdle at so

information often isn’t as robust as what’s

many stages of the process.

available for websites and Internet users.

2 It’s another source of data to monitor.

cale will continue to be a challenge in 4 S the short-term.

Marketers need to analyze how mobile users

Consider mobile search projections from RBC

are accessing their mobile sites and how

Capital Markets that ran in Silicon Alley Insider.

those behavior patterns match up with what

Over the coming years, mobile search will grow at

users are doing online. This can be even more

a faster pace than global web searches, but even

complicated if there are separate mobile sites

in 2012, mobile volume will be about a quarter

and applications.

of web search. The issue of scale pops up everywhere, and it’s closely correlated with the

ragmentation will be one of the more 3 F persistent mobile marketing challenges.

80

fragmentation issue. Do you target consumers on the iPhone where mobile media consumption

Which devices and operating systems are used

is robust, or do you go broader across different

by your target customer base? How does your

devices and operating systems to achieve the

target audience divide their time across various

maximum reach? Scale issues will ease as more

mobile channels? How can you find them across

publishers, networks and devices ramp up their

a jumbled array of publishers and ad networks?

users, usage and inventory.


Parting Thoughts

Total Searches on Smartphones and PCs (in billions) 2500

2000

Global Web Searches

1500

1000

500

0

Searches on Smartphones

2009E

2010E

2011E

2012E

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

any marketing opportunities are entirely 5 M new for mobile.

impact in the Mobile Marketing Overview for some rationale), but it makes mobile more difficult to

From SMS ads to location-based check-in deals

sell. Alternatively, marketers will often run mobile

and mobile barcodes, these new opportunities

campaigns with miniscule trial budgets so the

require new creative and new thinking for how

impact underwhelms, and there isn’t a chance to

to best use them. The biggest challenge is the

optimize the campaign. Disheartened, marketers

learning curve to understand how these very new

can wind up dismissing mobile as ineffective

marketing opportunities can tie in with marketers’

before fully understanding how to best use it.

overarching strategies.

7 Integration is imperative. 6 Costs tend to be too high or too low.

Given how seamlessly consumers use their

Advertising rates tend to be higher than what

mobile devices to navigate between digital and

marketers are used to paying for similar inventory

traditional experiences, marketers need to tell a

online, sometimes exponentially so. These costs

cohesive story. Email and radio can build SMS

can often be justified (refer to mobile’s brand

lists, in-store messaging and Sunday circulars can

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81

promote mobile shopping apps, and barcodes on packaging can drive video views of a trailer.

obile shopping can try the patience of 0 M marketers and consumers.

This requires coordination across marketers’

Coupon scanners can be difficult to implement at

organizations and agencies that wasn’t always

the point of sale. Staff in stores must be trained

managed with online marketing, and wasn’t

how to accept mobile barcodes or SMS-based

always necessary in the same way it is for mobile.

coupon codes. The variety of barcodes adds to the confusion. With completing transactions, the

he ownership of mobile in a marketer’s 8 T organization is often unclear. Is the owner a digital marketing lead, even if mobile

challenges include security concerns, on-site usability issues and widely varying capabilities by merchants.

has major traditional marketing implications? Is mobile used strategically or more tactically? Which

All of these challenges can and will be overcome.

agencies can handle which elements of mobile

Some require a learning curve, from marketers

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

figuring out how to run integrated mobile programs

visibility within an organization, but it also needs to

to consumers learning how and why to scan a

be clear who will execute on the vision.

barcode. Many just take time, as the trends of smartphone adoption, mobile search usage and

he pace of innovation and change 9 T continues to accelerate.

mobile shopping are all accelerating at a fast clip. Marketers have an incredible opportunity today to

Quick, name the latest “iPhone killer” Android

address these issues head on: ramping up adoption

phone being released this week. Name the

by educating their colleagues and their consumers,

top paid and free apps in the iTunes store.

pushing their research vendors, agencies and

Name the hot mobile ad network that just got

publishers to address their needs and continually

funding. Whatever the answers are, they’ll be

optimizing their mobile programs to better achieve

different next week. Some of what’s new and

objectives.

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

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Even established companies may be under

Conclusion

the radar for marketers with limited experience

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

in mobile. Companies like 4INFO, Greystripe,

is prominent enough for it to be a viable marketing

InMobi, Millennial Media, NearbyNow, Nexage,

channel for any kind of marketer or brand. At some

SCVNGR,

Whrrl

point, mobile media usage will likely rival and then

all sound like some alphabetic jumble until

surpass Internet usage, and this will fundamentally

marketers understand how they fit in with mobile

change how marketers find and build relationships

advertising, shopping and social media.

with their target audiences.

Square,

ShopSavvy


and

Parting Thoughts

There are tremendous opportunities within mobile. The

doing mobile marketing; that only sets up such programs

perspectives throughout this Playbook can help make

to underwhelm the marketer – and the consumer.

the case to expand your mobile marketing initiatives, from the market norms to the shopping habits to the

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

best practices for a range of mobile advertising tactics.

incorporating mobile when and how it makes sense.

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

With all of the opportunities mobile offers today, at

learn, optimize, lead and serve consumers in ways

this point mobile should be included in any major

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

integrated campaign or marketing program, and it

benefits can further add to mobile’s returns.

should always be part of the consideration set.

Granted, mobile marketing has its challenges, from

As much information as you may have pored over

fragmented handset and operating system markets to

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

evolving metrics and pricing standards. And the last

any thoughts and questions that arise as we

thing any marketer should do is to allocate a few dollars

collectively work to address the opportunities and

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

challenges ahead.

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83

GLOSSARY Term

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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Glossary

(continued from previous page)

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

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85

ABOUT 360 360i is an award-winning digital marketing agency that drives results for Fortune 500 marketers through insights, ideas and technologies. 360i helps its clients think differently about their online presence and evolve their strategies to take advantage of the new world of marketing communications – one where brands and consumers engage in interactive and multi-directional conversations. Current clients include Kraft Foods, JCPenney, Coca-Cola, NBC Universal and H&R Block, among others. For more information and to discover industry insights and trends, please visit blog.360i.com or follow the agency on Twitter @360i.

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