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MOBILE –
MAKING SENSE
BlackRock
CURRENTS

OF THE MOST
PERVASIVE
CHANNEL

+44 207 612 1910 / INFO@SPONGEGROUP.COM
1. WHO WE ARE


                                           Founded in 2002.
WE                                         Pure-play agency for mobile

KNOW                                       and tablet activity.
                                           Offices in London, West

MOBILE                                     Africa and East Africa.
                                           Led by insight and creativity,
                                           powered by in-house
                                           technology.
                                           Multi-award winning.
                                           Alex Meisl, Sponge Chairman:
                                           Also Chairman of the Mobile Marketing Association.

                                           Jo Rabin, CTO:
                                           Co-chair of the W3C committee on mobile
                                           standards.

 +44 207 612 1910 / INFO@SPONGEGROUP.COM                                                  2
ABOUT SPONGE



WE’VE
DONE
GREAT
WORK
WITH…



 +44 207 612 1910 / INFO@SPONGEGROUP.COM              3
+44 207 612 1910 / INFO@SPONGEGROUP.COM   4
LONDON2012.COM STATS

  431m visits
  109m unique users
  15m app downloads
  4.73bn page views
  4.7m social followers.

  60% via mobile
  +44 207 612 1910 / INFO@SPONGEGROUP.COM   5
THE PARADOX OF MOBILE




  +44 207 612 1910 / INFO@SPONGEGROUP.COM   6
THE GOOD, BAD AND THE UGLY


   On average, the time difference between first
   search and purchase is one month on the web
             and one hour on mobile




   +44 207 612 1910 / INFO@SPONGEGROUP.COM         7
THE GOOD, BAD AND THE UGLY


    34% of US smartphone users cancelled their
   planned purchase in store, due to information
        they got from their mobile phone.




   +44 207 612 1910 / INFO@SPONGEGROUP.COM         8
THE GOOD, BAD AND THE UGLY



      70 % of smart phone users research products
                       in store
       over 15% of online Christmas shopping via a
                     mobile device
                      > 50% smartphone penetration


   +44 207 612 1910 / INFO@SPONGEGROUP.COM           9
THE GOOD, BAD AND THE UGLY



        80% of companies advertising on Google in
          the UK do not have a mobile optimised
                 version of their website




   +44 207 612 1910 / INFO@SPONGEGROUP.COM          10
THE GOOD, BAD AND THE UGLY



            488 million smartphones were shipped
           during 2011, compared to 415 million PCs




   +44 207 612 1910 / INFO@SPONGEGROUP.COM            11
THE GOOD, BAD AND THE UGLY



        4 out of 10 shops will shut in the next five years
          as consumers turn their backs on traditional
               stores in favour of online shopping




   +44 207 612 1910 / INFO@SPONGEGROUP.COM                   12
THE MOBILE CONUNDRUM

               Mobile is the ultimate personal
        device. ItIt can drive loyalty better
         device. can drive disloyalty better
                           than any other channel




  +44 207 612 1910 / INFO@SPONGEGROUP.COM           13
MOBILE STRATEGY

 Don’t Develop a mobile
        strategy
    Develop a strategy for
    your mobile audience

  +44 207 612 1910 / INFO@SPONGEGROUP.COM   14
Mobile has both caused and enabled
an irrevocable change in consumer
behaviour




 +44 207 612 1910 / INFO@SPONGEGROUP.COM   15
‘The end of lying?’




                                             Gerd Leonhard – Media Futurist
   +44 207 612 1910 / INFO@SPONGEGROUP.COM                                    16
AND
YET…..

+44 207 612 1910 / INFO@SPONGEGROUP.COM   17
VAST MAJORITY OF CMOs ARE
UNDERPREPARED TO MANAGE THE
IMPACT OF KEY CHANGES IN THE
MARKETING ARENA




   +44 207 612 1910 / INFO@SPONGEGROUP.COM   18
Consumers don’t need (want) marketing




                                            Source: Strange PR
  +44 207 612 1910 / INFO@SPONGEGROUP.COM                19
PREFERRED
SOURCE OF
PRODUCT
AND
SERVICE
INFORMATIO
N
% social media
users

 Source Nielsen 2011

        +44 207 612 1910 / INFO@SPONGEGROUP.COM   20
MOBILE AMPLIFIES
THE POWER OF
CUSTOMER REVIEW
SITES



  +44 207 612 1910 / INFO@SPONGEGROUP.COM   21
MOBILE CHANGES
THE WAY WE
INTERACT WITH
OUR
ENVIRONMENT…


  +44 207 612 1910 / INFO@SPONGEGROUP.COM   22
Case Study - Nike




….AND INFLUENCES
OUR DECISIONS
BASED ON THAT
LOCATION



     +44 207 612 1910 / INFO@SPONGEGROUP.COM   23
DON’T THINK IN SILOS…THE DANGERS
OF ATTRIBUTION

AOV is c. 20% lower

3 x as many visits to Store Finder than
desktop site




       +44 207 612 1910 / INFO@SPONGEGROUP.COM   24
BUT: INTEGRATION IS ESSENTIAL




   +44 207 612 1910 / INFO@SPONGEGROUP.COM   25
MOBILE IS THE GLUE IN THE SHOPPER
JOURNEY




   +44 207 612 1910 / INFO@SPONGEGROUP.COM   26
SHAPING A MOBILE APPROACH
  Longer = CRM
  Longer




                  Wider = mobile web

      +44 207 612 1910 / INFO@SPONGEGROUP.COM   27
RECOGNITION OF THE NEED FOR
QUALITY
 80% of branded applications get less than 1,000 downloads

         “Let’s build an app”
  "When brands get it right, the returns can be huge." The
   problem appears to be that most are getting it wrong.
             Howard Davies, Media Partner




   +44 207 612 1910 / INFO@SPONGEGROUP.COM                   28
OPTIMISED SITES DELIVER IMMEDIATE
TRAFFIC GROWTH




                                                      2014-2015: Mobile web traffic will
                           Desktop           Mobile   exceed desktop traffic

   +44 207 612 1910 / INFO@SPONGEGROUP.COM                                                 29
CHALLENGE OF CONTEXT AND
ATTRIBUTION


Its not just about screen size but about
device type and context for device
content




      +44 207 612 1910 / INFO@SPONGEGROUP.COM   30
BUILDING A RELATIONSHIP

 Did you know 5
 Birds Eye
 Chicken
                                  Have you tried
 Dippers have
                                  making a Birds
 less saturated
                                  Eye Fish
 fat than one
 sausage?
                                  Finger Pie?       ….. Crispy
                                  Layer fish        Chicken &
                                  fingers, beans    Birds Eye Soya
                                  & mash!           Beans = a tasty
                                                    meal!



 Nutritional

                               Recipe Ideas

      +44 207 612 1910 / INFO@SPONGEGROUP.COM      Cross Category     31
2. WHAT WE DO



CREATE EXCITEMENT
Sponge developed the Monopoly game for
McDonalds to build the largest retail gaming
proposition in the UK


It drove participation and created data capture
opportunities with over 16m entries in 2011, and
30% via mobile (vs 9% in 2010)


Success of campaign has resulted in extending to
other EU territories, including France, Spain, Italy
and Switzerland for 2012


       +44 207 612 1910 / INFO@SPONGEGROUP.COM                     32
ADD FURTHER VALUE
1. Collect to win game – Users collected
   properties and could enter when they have
   full set (2, 3 or 4 pieces). Prizes linked to rarity
   of the property set.
2. Daily bonus game – chance to win 28 x
   €10,000 over a total of 15m draws across
   promotion.
Recognition
3. Badging – Enter the highest number of codes
   relating to a specific property on the board
   can become ‘Mayor’ receive other awards.
4. Facebook heat map – to show the distribution
   of prizes won/claimed throughout France

        +44 207 612 1910 / INFO@SPONGEGROUP.COM           33
CASE STUDY



INTERFACE AND
CATALYST FOR SOCIAL
MEDIA SHARING
Sponge helped Bacardi drive sales of
Mojito cocktails in Revolution bars
by 264% through a Facebook check-
in promotion

Promotion now re-launched in
Novus bars to include mobile
vouchers redeemed in bars and an
SMS prize draw



       +44 207 612 1910 / INFO@SPONGEGROUP.COM            34
CASE STUDY



INTERACTIVE RICH
CONTENT
Sponge has built a mobile hub for Adidas
across web and apps allowing teens to
showcase videos of their sporting abilities,
and discuss and check out the achievements
of their peers

Enables multi-layered CRM across SMS,
email, push notifications, check-ins to build
dialogue, affinity and ultimately sales




        +44 207 612 1910 / INFO@SPONGEGROUP.COM            35
CONNECTING WITH CUSTOMERS ALL
YEAR LONG

Local services
Traffic information
Mechanical data
Services reminder
Breakdown and insurance
claim support




      +44 207 612 1910 / INFO@SPONGEGROUP.COM   36
CASE STUDY



M-COMMERCE
Sponge helped Dyson design and
build an m-commerce site that
beautifully reflected their brand
values

Adhered rigorously to high standards
of design at Dyson whilst creating a
unique experience and navigation
for mobile and tablet devices




        +44 207 612 1910 / INFO@SPONGEGROUP.COM            37
CASE STUDY



DIGITISING THE
PHYSICAL
ENVIRONMENT
Sponge helped Evans apply QR
codes to price tickets and print
campaigns to send users to
mobile web pages

These pages contained extra
information to provide a rich,
informative experience and
drive high value purchases



        +44 207 612 1910 / INFO@SPONGEGROUP.COM            38
Hype vs Substance


  Hype                                       Substance
  QR codes
  App creation tools
  (most) Branded Apps
  Being a Mayor




   +44 207 612 1910 / INFO@SPONGEGROUP.COM               39
Hype vs Substance


  Hype                                       Substance
  QR codes                                   NFC
  App creation tools                         Location
  (most) Branded Apps                        Image Recognition
  Being a Mayor                              Vouchering
                                             SMS



   +44 207 612 1910 / INFO@SPONGEGROUP.COM                       40
THANK
YOU

+44 207 612 1910 / INFO@SPONGEGROUP.COM

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Sponge - Mobile Making Sense of the Most Pervasive Channel

  • 1. MOBILE – MAKING SENSE BlackRock CURRENTS OF THE MOST PERVASIVE CHANNEL +44 207 612 1910 / INFO@SPONGEGROUP.COM
  • 2. 1. WHO WE ARE Founded in 2002. WE Pure-play agency for mobile KNOW and tablet activity. Offices in London, West MOBILE Africa and East Africa. Led by insight and creativity, powered by in-house technology. Multi-award winning. Alex Meisl, Sponge Chairman: Also Chairman of the Mobile Marketing Association. Jo Rabin, CTO: Co-chair of the W3C committee on mobile standards. +44 207 612 1910 / INFO@SPONGEGROUP.COM 2
  • 3. ABOUT SPONGE WE’VE DONE GREAT WORK WITH… +44 207 612 1910 / INFO@SPONGEGROUP.COM 3
  • 4. +44 207 612 1910 / INFO@SPONGEGROUP.COM 4
  • 5. LONDON2012.COM STATS 431m visits 109m unique users 15m app downloads 4.73bn page views 4.7m social followers. 60% via mobile +44 207 612 1910 / INFO@SPONGEGROUP.COM 5
  • 6. THE PARADOX OF MOBILE +44 207 612 1910 / INFO@SPONGEGROUP.COM 6
  • 7. THE GOOD, BAD AND THE UGLY On average, the time difference between first search and purchase is one month on the web and one hour on mobile +44 207 612 1910 / INFO@SPONGEGROUP.COM 7
  • 8. THE GOOD, BAD AND THE UGLY 34% of US smartphone users cancelled their planned purchase in store, due to information they got from their mobile phone. +44 207 612 1910 / INFO@SPONGEGROUP.COM 8
  • 9. THE GOOD, BAD AND THE UGLY 70 % of smart phone users research products in store over 15% of online Christmas shopping via a mobile device > 50% smartphone penetration +44 207 612 1910 / INFO@SPONGEGROUP.COM 9
  • 10. THE GOOD, BAD AND THE UGLY 80% of companies advertising on Google in the UK do not have a mobile optimised version of their website +44 207 612 1910 / INFO@SPONGEGROUP.COM 10
  • 11. THE GOOD, BAD AND THE UGLY 488 million smartphones were shipped during 2011, compared to 415 million PCs +44 207 612 1910 / INFO@SPONGEGROUP.COM 11
  • 12. THE GOOD, BAD AND THE UGLY 4 out of 10 shops will shut in the next five years as consumers turn their backs on traditional stores in favour of online shopping +44 207 612 1910 / INFO@SPONGEGROUP.COM 12
  • 13. THE MOBILE CONUNDRUM Mobile is the ultimate personal device. ItIt can drive loyalty better device. can drive disloyalty better than any other channel +44 207 612 1910 / INFO@SPONGEGROUP.COM 13
  • 14. MOBILE STRATEGY Don’t Develop a mobile strategy Develop a strategy for your mobile audience +44 207 612 1910 / INFO@SPONGEGROUP.COM 14
  • 15. Mobile has both caused and enabled an irrevocable change in consumer behaviour +44 207 612 1910 / INFO@SPONGEGROUP.COM 15
  • 16. ‘The end of lying?’ Gerd Leonhard – Media Futurist +44 207 612 1910 / INFO@SPONGEGROUP.COM 16
  • 17. AND YET….. +44 207 612 1910 / INFO@SPONGEGROUP.COM 17
  • 18. VAST MAJORITY OF CMOs ARE UNDERPREPARED TO MANAGE THE IMPACT OF KEY CHANGES IN THE MARKETING ARENA +44 207 612 1910 / INFO@SPONGEGROUP.COM 18
  • 19. Consumers don’t need (want) marketing Source: Strange PR +44 207 612 1910 / INFO@SPONGEGROUP.COM 19
  • 20. PREFERRED SOURCE OF PRODUCT AND SERVICE INFORMATIO N % social media users Source Nielsen 2011 +44 207 612 1910 / INFO@SPONGEGROUP.COM 20
  • 21. MOBILE AMPLIFIES THE POWER OF CUSTOMER REVIEW SITES +44 207 612 1910 / INFO@SPONGEGROUP.COM 21
  • 22. MOBILE CHANGES THE WAY WE INTERACT WITH OUR ENVIRONMENT… +44 207 612 1910 / INFO@SPONGEGROUP.COM 22
  • 23. Case Study - Nike ….AND INFLUENCES OUR DECISIONS BASED ON THAT LOCATION +44 207 612 1910 / INFO@SPONGEGROUP.COM 23
  • 24. DON’T THINK IN SILOS…THE DANGERS OF ATTRIBUTION AOV is c. 20% lower 3 x as many visits to Store Finder than desktop site +44 207 612 1910 / INFO@SPONGEGROUP.COM 24
  • 25. BUT: INTEGRATION IS ESSENTIAL +44 207 612 1910 / INFO@SPONGEGROUP.COM 25
  • 26. MOBILE IS THE GLUE IN THE SHOPPER JOURNEY +44 207 612 1910 / INFO@SPONGEGROUP.COM 26
  • 27. SHAPING A MOBILE APPROACH Longer = CRM Longer Wider = mobile web +44 207 612 1910 / INFO@SPONGEGROUP.COM 27
  • 28. RECOGNITION OF THE NEED FOR QUALITY 80% of branded applications get less than 1,000 downloads “Let’s build an app” "When brands get it right, the returns can be huge." The problem appears to be that most are getting it wrong. Howard Davies, Media Partner +44 207 612 1910 / INFO@SPONGEGROUP.COM 28
  • 29. OPTIMISED SITES DELIVER IMMEDIATE TRAFFIC GROWTH 2014-2015: Mobile web traffic will Desktop Mobile exceed desktop traffic +44 207 612 1910 / INFO@SPONGEGROUP.COM 29
  • 30. CHALLENGE OF CONTEXT AND ATTRIBUTION Its not just about screen size but about device type and context for device content +44 207 612 1910 / INFO@SPONGEGROUP.COM 30
  • 31. BUILDING A RELATIONSHIP Did you know 5 Birds Eye Chicken Have you tried Dippers have making a Birds less saturated Eye Fish fat than one sausage? Finger Pie? ….. Crispy Layer fish Chicken & fingers, beans Birds Eye Soya & mash! Beans = a tasty meal! Nutritional Recipe Ideas +44 207 612 1910 / INFO@SPONGEGROUP.COM Cross Category 31
  • 32. 2. WHAT WE DO CREATE EXCITEMENT Sponge developed the Monopoly game for McDonalds to build the largest retail gaming proposition in the UK It drove participation and created data capture opportunities with over 16m entries in 2011, and 30% via mobile (vs 9% in 2010) Success of campaign has resulted in extending to other EU territories, including France, Spain, Italy and Switzerland for 2012 +44 207 612 1910 / INFO@SPONGEGROUP.COM 32
  • 33. ADD FURTHER VALUE 1. Collect to win game – Users collected properties and could enter when they have full set (2, 3 or 4 pieces). Prizes linked to rarity of the property set. 2. Daily bonus game – chance to win 28 x €10,000 over a total of 15m draws across promotion. Recognition 3. Badging – Enter the highest number of codes relating to a specific property on the board can become ‘Mayor’ receive other awards. 4. Facebook heat map – to show the distribution of prizes won/claimed throughout France +44 207 612 1910 / INFO@SPONGEGROUP.COM 33
  • 34. CASE STUDY INTERFACE AND CATALYST FOR SOCIAL MEDIA SHARING Sponge helped Bacardi drive sales of Mojito cocktails in Revolution bars by 264% through a Facebook check- in promotion Promotion now re-launched in Novus bars to include mobile vouchers redeemed in bars and an SMS prize draw +44 207 612 1910 / INFO@SPONGEGROUP.COM 34
  • 35. CASE STUDY INTERACTIVE RICH CONTENT Sponge has built a mobile hub for Adidas across web and apps allowing teens to showcase videos of their sporting abilities, and discuss and check out the achievements of their peers Enables multi-layered CRM across SMS, email, push notifications, check-ins to build dialogue, affinity and ultimately sales +44 207 612 1910 / INFO@SPONGEGROUP.COM 35
  • 36. CONNECTING WITH CUSTOMERS ALL YEAR LONG Local services Traffic information Mechanical data Services reminder Breakdown and insurance claim support +44 207 612 1910 / INFO@SPONGEGROUP.COM 36
  • 37. CASE STUDY M-COMMERCE Sponge helped Dyson design and build an m-commerce site that beautifully reflected their brand values Adhered rigorously to high standards of design at Dyson whilst creating a unique experience and navigation for mobile and tablet devices +44 207 612 1910 / INFO@SPONGEGROUP.COM 37
  • 38. CASE STUDY DIGITISING THE PHYSICAL ENVIRONMENT Sponge helped Evans apply QR codes to price tickets and print campaigns to send users to mobile web pages These pages contained extra information to provide a rich, informative experience and drive high value purchases +44 207 612 1910 / INFO@SPONGEGROUP.COM 38
  • 39. Hype vs Substance Hype Substance QR codes App creation tools (most) Branded Apps Being a Mayor +44 207 612 1910 / INFO@SPONGEGROUP.COM 39
  • 40. Hype vs Substance Hype Substance QR codes NFC App creation tools Location (most) Branded Apps Image Recognition Being a Mayor Vouchering SMS +44 207 612 1910 / INFO@SPONGEGROUP.COM 40
  • 41. THANK YOU +44 207 612 1910 / INFO@SPONGEGROUP.COM

Notas do Editor

  1. Maybe its what Gerd Leonhard calls the end of lying. He spoke about this at an MMA event earlier this year. The idea that the internet and in particular the mobile internet means it will be almost impossible for brands to make false claims, hide poor service records, product recalls etc.
  2. The answer is because is bloody hard. Take a look at the top four concerns of CMO’s globally according this study released last week by IBM and The IDM. Marketers are unprepared for a world of data, social media, mobile and the demands of Millennials and Generation Y
  3. There are plenty of other places to go to get information and views about products
  4.  Social Networking The NIKE Way True City - make the hidden visiblehttp://www.mobiadnews.com/?p=4289#more-4289 It seems as though the Nike brand has always been about more than just sportswear and sneakers. People are passionate about the brand, and with products like the Nike Plus, Nike has become a regular part of their customers’ lives.Now Nike is taking this one step further with their mobile app campaign Nike True City. This is a location-based city guide - with a social media component - for six of Europe’s most interesting cities, all done with Nike style and flair. Check it out.London, Paris, Berlin, Milan, Amsterdam, and Barcelona - six of the most interesting and culturally active cities in the world. There is so much happening in each of these locations that the real question is how to find what matches your interests. This is where Nike’s True City app comes in. The True City app was created by agency AKQA, and tries to “make the hidden visible” through the knowledge and insight of Nike Insiders - local tastemakers who pride themselves on being at the forefront of things happening in their cities. City InformationThe app covers a wide range of content from food and drink to art, shopping, culture, music, and sport. The information is geo-tagged and displayed on a local map with icons. You can also use a filter to only display content entries of a certain type to help focus your activity.When you touch one of the items, you get a small window with more details about that place, some personal comments from the contributor, the location, photos, etc. And to support the social network aspects of the app, you can leave a comment, share it with a friend, add more information, or add it to your favorites.There is also a special QR code reader, which will let consumers “unlock” special content in certain locations.Curators and Crowd-sourcingThe information comes from two sources: “Nike Insiders” as well as the general public.The Nike Insiders are designated people in each city that share their favorite places and hidden treasures. According to Nike, “these cultural authorities take pride in owning their cities and sharing their knowledge with likeminded Nike lovers.”The Nike Insiders also each have a personal profile page so you get to know them a bit, their lives, their interests.And of course anyone from the general public is also able to register and add their own unique perspective and discoveries about the city. The best of these citizen contributors, as judged by their peers, will have the chance to become Nike Insiders themselves.Product engagementAs this is after all a marketing app, Nike has also included a fair amount of information to keep people engaged with the products.Naturally - since it’s a city guide - there is a store finder with click to call, website links, and a way for consumers to add comments.Even more interesting is what Nike calls the Buzz Filter. This provides previews of upcoming events and product launches. A lot of Nike fans are passionately interested in each new model that Nike releases. This app provides not only photos of upcoming products, but also a launch date countdown time, plus information about the design and designer. Marketing the appNike has launched a widespread PR campaign to get the message out to Nike fans, and is advertising the True City app on its website. They have also Some produced a very slick video that introduces the app and gives a flavor of what to expect. It’s worth watching.Conclusionpeople in the blogoshere have questioned the usefulness of a city guide from a brand such as Nike, and suppose that consumers will prefer to get their information from companies whose entire business is providing data.However, I think this view misses the point entirely. A consumer’s real problem these days is not in finding enough information, rather it is finding the most relevant information. We all know that one of the best ways to find relevant information is through the recommendations of people who share your interests. The Nike community is exactly that: a group of people that share some common interests, values, and activities. In my view, brand focused social apps such as this may well prove to be an excellent source of great recommendations for the people in the community
  5. As is having a multi-channel solution because…..