Mobile Marketing B O N U S1 P D F

MOBILE MARKETING
LEADERSHIP BONUS REPORT

http://www.mobilemarketingleadership.com

1
(C) 2010 www.MobileMarketingLeadership.com All rights reserved.

Legal Notice

COPYRIGHT:

Copyright 2010 MobileMarketingLeadership.com and HowMark Mobile, LLC. All rights reserved.

LIMITS OF LIABILITY / DISCLAIMER OF WARRANTY:

This report is NOT legal or accounting advice. You need to do your own due-diligence to determine if the
content of this report is right for YOUR business. No earnings claims are being made anywhere in this
report or in the marketing of this report. The publisher of this report is not liable for any damages or
losses associated with the content in this report.

In English: You are a business person, I am a business person – you need to be responsible for your
own marketing and actions online.

2

Mobile Marketing 2010

In opening the Mobile Marketer's Mobile Outlook 2009, Mickey Alam Khan
wrote:

“Several trends are emerging as mobile matures into a medium that,
while not without flaws, is a more palatable option than other
marketing channels in use. The emphasis, however, should be on
mobile’s complementary nature – it gives legs to other channels,
including retail, online, television, print, coupons, radio, outdoor,
direct mail and insert media.

“Top of the trends list is the consumer’s growing comfort with
consuming news and content on mobile phones, along with
exchanging SMS text messages, shopping for products and services,
checking email, playing games, conducting mobile banking
transactions and searching for retail locations or driving directions.

“Indeed, the mobile channel’s use as a location-enabling tool is
quickly becoming evident to brands, ad agencies, retailers and, most
importantly, consumers.”

3

People had been predicting the boom of mobile since 2007. And they had all
the reasons to believe that the golden age of mobile was indeed upon us.

On September 18, 2008, Nielsen released a report which indicated, among
others, that active mobile Internet users were on the rise in the U.S., with the
May 2008 figure almost double that from two years earlier.

The report also indicated that, at the time, 60% of mobile internet users were
found to be likely to accept mobile advertising.

The report also pointed out the following:

1. according to CTIA, the wireless industry trade group, there were 254
4

million US mobile subscribers in the first quarter of 2008

2. according to Nielsen, 144 million (57%) US mobile subscribers were
“data users” in the first quarter of 2008 (“data users” are defined as
those subscribers who used their phone for any data use, be that SMS
text messaging or accessing the mobile Internet)

3. 95 million or 37 percent of all US mobile subscribers paid for access to
the mobile Internet, either as part of a subscription or transactionally

4. 40 million subscribers (15.6 percent in May 2008) were active users of
mobile Internet services, using those services at least once on a monthly
basis

5. Mobile Internet use accounted for $1.7 billion in revenue in the first
quarter of 2008 (2007 saw a total of $5 billion in mobile Internet use
revenue)

A month after Nielsen released its report, ComScore released its own
indicating that the response rate for SMS advertising (particularly those for
food, restaurants and fashion) among Europeans was growing.

5

However, things didn't happen exactly the way marketers saw it would.

In his article “Will 2010 Be the Real Year of Mobile?” (December 10, 2009), Jason
Steinberg laid down the possible reasons why the past three years didn't turn
out to be the year(s) of mobile as many have predicted. Steinberg writes:

“There are 270 million mobile subscribers in the U.S. Ninety-one
percent of them keep their phone within three feet of themselves 24
hours a day, 365 days per week. Thirty-three percent would rather
lose their wallet than their phone. And, most tantalizing, there are
29.1 million smartphone users waiting to be engaged with our
marketing. Surely, this is a medium that is ready to explode with an
influx of ad dollars.

6

“But no, it isn't. Although the graph lines are going up, mobile
advertising is still lagging behind the robust predictions of years
past. Let's look at the reasons why.”

One of the reasons that Steinberg raised is that mobile (known as the seventh
mass media) is just too complex. The mobile world is flooded with too many
platforms, too many browsers, and too many markup languages. We have, for
operating systems, RIM, Microsoft, Apple, Palm, Symbian, Danger, and
Android. For browsers, we have Safari, Opera, Fennec, the native OS browsers
for RIM, Android, Windows, and about 15 or so lesser known ones. Add to
those the various markup languages, the countless devices, and the varying
specifications--all these makes for a production nightmare for advertisers.
There are just too many things to consider to make mobile marketing easily
scalable.

Steinberg also thinks that there's a lack of planning tools. Steinberg says: “Too
often, a lack of proper measurements have eliminated otherwise promising
channels from marketing mixes.”

According to Steinberg, the planning tools that were currently available were
still in their early stages of development. These include tools from Millennial
Media, Nielsen, and comScore, among others. Steinberg says: “New tools must
be sold to clients before they are accepted in the planning process. These aren't

7

standard fare at agencies, nor do they provide the robustness of their online or
analog counterparts.”

Steinberg also thinks that, although the charts are showing huge numbers, the
scale still isn't quite there—there are still a lot of mobile subscribers (sixty-
eight percent) who have not yet accessed the Internet on their mobile device.
Because of this, many marketers resort to SMS in their attempts to connect
with their audience. And here's where it gets even worse... at the time, thirty-
five percent of mobile users weren't texters also.

Another reason is that mobile is a challenging and limiting platform. Mobile is
very good for catching all the mobile users' attention because there's no
clutter in the mobile space. One page, one ad... that surely makes for a very
high click-through rate and recall. However, advertising decisions are largely
influenced by the “wow” factor.

“If a Flash banner ad is a hard sell compared to a TV spot, how is a
mobile ad going to compete?" Steinberg writes. "I've yet to meet a
creative director who gets truly excited about mobile display
advertising. This affects the ability to sell it, resulting in the mobile
budget being cut.”

Lastly, the infrastructure is still lacking. Although it has more than a quarter of
a century's worth of history behind it, mobile is still very new, especially when
it comes to marketing. As such, many of the basic components that media
8

buyers rely on to track their activities are still non-existent. To make up for
that, media buyers have to expend more of their resources (manpower, time,
and money) just to get the information they need. For example, they need to
collect basic campaign results from a wide range of sources from ad servers,
ad networks, portals, niche sites, and vendors. Additionally, the lack of
standardization across partners limits the depth of reporting.

“Limited integration of third-party ad-serving often means that if it
hasn't been seen with our own eyes, it's impossible to even verify that
a campaign ran.”

However, Steinberg sees the light at the end of the tunnel. After all, mobile
devices are continuously evolving and all the problems are actively being
addressed. The marketing potentials of mobile lie in the fact that there's
nothing else other than mobile devices that could enable marketers to:

“...close the loop between consumer action and out-of-home
advertising, provide location-based messaging, or engagement on
the go. And if a consumer invites your brand into their life via a
branded app, that's worth all the hassles and more.”

“If ever there was a cutting-edge medium bursting with potential for
a forward thinking brand to play in, mobile is it. And the rules
haven't yet been written. I'm looking forward to expanding the
space.
9

“Maybe 2010 will be the year of mobile after all.”

And, it seems, he's not the only one who thinks so.

In opening the Mobile Marketer's Mobile Outlook 2010, Mickey Alam Khan
wrote:

“It is quite clear from recent market activity – Google buying AdMob
and Apple absorbing Quattro Wireless, Apple iPad and Google Nexus
One launches, eBay’s record $500 million in mobile commerce last
year – that mobile is no longer considered a niche medium.

“Buoyed by results of mobile campaigns initiated last year, many
brands are expected to ramp up their spending from six figures to
seven. Richard Ting, mobile chief at No. 1 interactive agency R/GA,
projects that mobile budgets will grow this year between 100
percent and 150 percent.”

and

10

“Retailers and marketers will discover fresh uses of SMS, mobile sites,
applications and mobile coupons to drive traffic in-store. Opted-in
SMS databases will continue to build.”

Richard Ting, VP/executive creative director of mobile & emerging platforms
at R/GA (and also one of the contributing writers for Mobile Marketer's
Mobile Outlook 2010), predicts that mobile budgets will grow by 100 to 150%
in 2010. The increase in budget, according to Ting, will be due to funding of
better planning, strategy, creative work and analytics which should allow for
more quality and integrated work to take place in the medium. Along with the
budget, Ting also predicts the doubling in mobile staff size and number of
projects that agencies will produce by the end of the year.

Additionally, Ting predicts that retailers will continue to leverage mobile to
convert shoppers into buyers. He went on to provide statistical evidence to
support his claim.

“The statistical evidence so far is staggering. According to a recent Deloitte
survey, 55 percent of users said that they will use their mobile device to find
store locations and 45 percent of users will use their devices to research prices.”
Ting says.

11

The Deloitte survey he was pertaining to is one that was released on November
11, 2009. A portion of it reads:

“The mobile phone is another emerging digital tool for the holidays
and is expected to be used by nearly one in five consumers (19
percent) to assist with their holiday shopping. Those consumers plan
to find store locations (55 percent), research prices (45 percent), find
product information (40 percent), get discounts and coupons (32
percent) and read reviews (31 percent). One in four (25 percent)
even expect to make a holiday purchase with their phone.”

The Deloitte survey aside, there's indeed evidence that mobile response rates
are higher than online norms.

During the Mobile Ad Summit, Phil Armstrong (senior vice president of digital
media at Bank of America, Charlotte, NC.) who was one of the panelists,
mentioned that mobile ad campaigns had in some cases doubled the response
rates achieved by online campaigns.

“We’re able to target leveraging contextual search and using display ads to drive
people to our mobile site, and we’re seeing numbers that blow online response
and click-through rates away,” said Armstrong. “We learned by trial advertising
within other mobile applications.”

12

“In certain applications we’re seeing double the response rates we see from
online,” he said. “For us, our mobile ad campaigns are very targeted.”

“By adopting mobile, we ask “Did that change consumer behavior, did it bring us
more customers and bring us more deposits?’ and the answer is yes,” Mr.
Armstrong said.

On February 4, 2010, InsightExpress, a leading digital marketing research
firm, released the results of its Mobile InsightNorms study conducted during the
fourth quarter of 2009. The report included a comparison of mobile media
types and verticals.

The firm's findings indicated that mobile campaign norms were 4.5 to 5 times
higher than online norms against measures of unaided awareness, aided
awareness, ad awareness, message association, brand favorability and
purchase intent.

13

The study also found that among the three different mobile media types
(Mobile Internet, SMS and Mobile video), Mobile Internet is currently the most
effective. As InsightExpress's press release puts it:

“Mobile Internet campaigns resulted in increases of 9 percentage
points for unaided awareness, 9 percentage points for aided
awareness and 24 percentage points for ad awareness. SMS is also
effective at increasing upper level purchase funnel metrics such as
awareness measures. SMS campaigns generated increases of 5
percentage points for unaided awareness, 10 percentage points for
aided awareness and 18 percentage points for ad awareness.”
14

Furthermore, the study also examined mobile brand metric norms by vertical
(CPG, Entertainment, Automotive, Travel, Technology and Retail), comparing
mobile norms to online norms. The findings are as follows:

 Mobile CPG Purchase Intent effect is 3 times higher than online CPG
Purchase Intent

 Mobile Entertainment Purchase Intent effect is 4 times higher than

15

online Entertainment Intent
 Mobile Travel Purchase Intent effect is 5 times higher than online Travel
Purchase Intent

 Mobile Technology Purchase Intent effect is 7 times higher than online
Technology Purchase Intent

 Mobile Automotive Purchase Intent effect is 4 times higher than online
Automotive Purchase Intent

 Mobile Retail Purchase Intent effect is 8 times higher than online Retail
Purchase Intent

16

During the Mobile Ad Summit, Phil Armstrong (senior vice president of digital
media at Bank of America, Charlotte, NC.) who was one of the panelists,
mentioned that mobile ad campaigns had in some cases doubled the response
rates achieved by online campaigns.

“We’re able to target leveraging contextual search and using display ads to drive
people to our mobile site, and we’re seeing numbers that blow online response
and click-through rates away,” said Armstrong. “We learned by trial advertising
within other mobile applications.”

17

“In certain applications we’re seeing double the response rates we see from
online,” he said. “For us, our mobile ad campaigns are very targeted.”

What You Need To Know To Succeed in Mobile Advertising in 2010

In November 2009, AdMob released a report indicating that iPhone and
Android users currently account for 82% of US mobile web traffic. There's no
doubt that the two platforms have radically changed the marketplace.

18

Here are the things you need to know about how iPhone and Android have
changed mobile advertising and why you, the marketers, need to make the call
now.

19

Your customers are on more than one carrier – A complete mobile
marketing strategy must consider reaching audiences subscribed with all the
various mobile carriers (e.g., Verizon, Sprint, AT&T, and T-Mobile).

Marketing begins and ends with numbers - The mobile marketing platform
has lagged behind the web in terms of the ability to provide advertisers with
critical metrics and control to measure and optimize their ad campaigns.
Expect Google’s acquisition of AdMob to have tremendous implications for
mobile advertising. AdMob serves ads for more than 15,000 mobile sites and
applications worldwide and openly shares the mountain of actionable data
they are collecting. AdMob has announced that it is supporting the Palm
Pre/Web OS phones, demonstrating their cross-platform capabilities.

You don’t necessarily need to have an app - A recent WhitePages and
MediaVest study showed that advertising performance is just as strong on the
mobile web as it is on an app. The downside of apps is that consumers need to
upgrade to get new versions of the apps, while a mobile site can simply be
updated. A mobile site does not necessitate the consumers to do anything for
it to update, all the burden is on you, the marketer, and that is good. As long as
mobile carriers can scale their 3G networks to meet demands, the future of
wireless is very likely to go back to the mobile web.

Location demands persistence and endurance - While location will be a
key driver in the future of mobile advertising, the mobile industry will need to
overcome a few challenges in order for location-based marketing to truly take
off. One, the popularity of applications requires persistence and the ability to
20

run more than one application at a time (Apple needs to wake up on this one).
And two, battery drain from frequent GPS/location requests and poor cell
tower coverage.

A different call to action - The key to the success of any marketing campaign
is to make it easy for the consumer to react. For one, easy click-to-call actions
have been seen to have contributed to +5% conversion results for advertisers.

It does NOT end here . . .

This Report Is ONLY The Beginning:
http://www.mobilemarketingleadership.com

21

Mobile Marketing B O N U S1 P D F

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Destaque

Destaque (6)

Semelhante a Mobile Marketing B O N U S1 P D F

Semelhante a Mobile Marketing B O N U S1 P D F (20)

Mais de Anna

Mais de Anna (12)

Mobile Marketing B O N U S1 P D F