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Mobile ROI




Michael de Souza
General Manager, Mobext / Singapore & Malaysia
Agenda

•     The mobile landscape
        –  It’s hard to define ROI, let alone achieve it


•     A new paradigm
        –  The rules of marketing and advertising are changing.


•     Examples
        –  Who’s doing it right?




© Mobext 2012                                      mobext.com     2
THE MOBILE LANDSCAPE
THE MOBILE LANDSCAPE




What you already know

1.  Mobile’s really, really big.

2.  It’s changed how we communicate and interact.

3.  It’s breathtakingly efficient, cheap and offers a better user experience then ever.

4.  The future is already here.
        –  It’s just not yet evenly distributed




© Mobext 2012                                     mobext.com                             4
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
So, why’s it so difficult to make a business model work?

•     For publishers?

•     For advertisers?




© Mobext 2012              mobext.com                     7
Publishers

•     Many competing businesses ‘trying to eat the publisher’s lunch’

        –       Platforms
        –       Operating systems
        –       Device manufacturers
        –       Ad networks

                 •    All trying to ‘own’ the consumer / ‘own’ the advertiser experience

                 •    Many players are duplicating efforts, while ignoring other areas altogether




© Mobext 2012                                                mobext.com                             8
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
The dismal state of mobile monetisation

•     Potential catastrophe awaits publishers who don’t get their business models right.

•     Only a few players getting it right.




© Mobext 2012                                mobext.com                                    11
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
HTML5

FT.com learnings

•     Didn’t just disappear when they abandoned the app store
•     Discoverability was no problem
        –  In fact, it was easier for them to promote the app


•     You can forge your own direction is you are prepared to do so.




© Mobext 2012                                     mobext.com           15
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Advertisers

•     Brands spend very little on mobile
        –  1% of total ad spend (BUT, this excludes non-media expenditure)
        –  Most marketing departments have no dedicated mobile resources / time


•     The budgets barely cover the basics
        –  App / mobile site development
        –  Limited marketing campaigns to support these


•     Work is therefore limited to adaptation of PC services / content to the small screen
        –  Almost no chance of developing for mobile
        –  Let alone device-specific strategies




© Mobext 2012                                  mobext.com                                    21
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
And yet…



                "It's not about the size of the screen,
                          or the size of the ad,
                   it's the size of the audience, and
                       the depth of engagement.”

                     - Rohit Dadwal, MMA Apac




© Mobext 2012                   mobext.com                24
A Self-fulfilling prophecy?

•     Achieving ROI with no investment is impossible

        –       A recent example from a travel client.

                  •    Total media budget: $3.4m (4 countries, 4 weeks)

                  •    Mobile budget: $80k (2.4%)
                          –    No mobile booking function yet, so client unwilling to allocate more than that.

                  •    Addressable market (3G connectivity / 20-49 years / mobile & tablet)
                          –    CN: 51.7m
                          –    ID: 11.2m
                          –    MY: 2.9m
                          –    SG: 2.3m

                  •    Weighted budget
                          –    CN: $61k
                          –    ID: $13.1k
                          –    MY: $3.1k
                          –    SG: $2.7k




© Mobext 2012                                                        mobext.com                                  25
So what’s the optimal budget allocation, then?




© Mobext 2012              mobext.com            26
So what’s the optimal budget allocation, then?




                7% on mobile
                 (September’s MMA / Marketing Evolution study)




© Mobext 2012                       mobext.com                   27
Around 7% (adjusting per goal and category)




© Mobext 2012             mobext.com          28
Michael de Souza, Mobext 20121012
SIRFs




© Mobext 2012   mobext.com   30
Methodology




© Mobext 2012   mobext.com   31
Share of the mix




© Mobext 2012      mobext.com   32
Using mobile at launch




© Mobext 2012            mobext.com   33
Yet, “the 7% answer” is still not entirely clear

•     The myth: “Mobile campaigns reach everybody”
        –  Don’t mix up numbers (eg SMS reach) in campaign planning
        –  Each mobile channel is a distinct market


•     Mobile can’t be a convenient anytime / any place extension of your other campaigns

•     There are numerous distinct communities and behaviours within mobile

        –       Social networks
        –       Mobile gaming
        –       Web content
        –       In-app content
                  •    …and many more




© Mobext 2012                                 mobext.com                                   34
The challenge

•     To ‘overinvest’ your time and energy in mobile now
        –  Even if you have far less budget to work with


•     Stop looking at your media budget for answers
        –  Mobile should form part of the actual brand experience, not just advertising


•     The Risk: failing to stop and think will damage your brand
        –  We see it all the time.




© Mobext 2012                                    mobext.com                               35
THE MOBILE LANDSCAPE




The industry’s plagued by antisocial practices

•     A property developer walks into a bar…

        –  10,000 SMSs > 2 sales
                •    Interruptive, disrespectful, unsustainable


        –  These guys aren’t alone
                •    Mobile carriers, banks, many others…




© Mobext 2012                                               mobext.com   36
THE MOBILE LANDSCAPE




© Mobext 2012          mobext.com   37
THE MOBILE LANDSCAPE




Swamped




                       peakwater.org
THE MOBILE LANDSCAPE




Why are these problems so prevalent?

•     Mobile interaction is one-to-one

        –  That gives cover for otherwise respectable companies to pass the ‘red face’ test
        –  Marketing heads plead ignorance (or turn a blind eye)
        –  Brand guidelines don’t yet cater for mobile

        –  Recipients tend to ‘avoid the noise’




© Mobext 2012                                     mobext.com                                  39
THE MOBILE LANDSCAPE




Insidious damage

•     Bad practices are usually not bad enough to cause torrents of complaints
        –  It’s a gradual erosion of trust


•     The damage done is seldom intentional
        –  Usually, it’s the result of someone taking a shortcut

        –  Although sometimes, lack of consideration is acknowledged and intentional…




© Mobext 2012                                     mobext.com                            40
THE MOBILE LANDSCAPE




‘Spray and pray’

•     Mass is no excuse for lack of appropriateness

        –  “With this many impressions, we’re bound to reach someone in our target market!”

                •    Is that really what you want?




© Mobext 2012                                        mobext.com                               41
THE MOBILE LANDSCAPE




No time to think!

•     Oh no! They asked for ‘something mobile’!

        –  Can you put down some quick ideas by lunchtime?




© Mobext 2012                                 mobext.com     42
THE MOBILE LANDSCAPE




Enough, already

•     The industry badly needs to
        –  Stop shouting at a faceless crowd
        –  And start having respectful conversations


•     Decide that we’re in it for the long haul
        –  Build relationships
        –  Establish trust
        –  Earn a customer’s lifetime value




© Mobext 2012                                   mobext.com   43
THE MOBILE LANDSCAPE




Mobile’s personal

•     Everything we do affects customers intimately and immediately
        –  There’s no escape!


•     It requires that brands form a new kind of relationship
•     It requires an authentic, personal conversation




© Mobext 2012                               mobext.com                44
THE MOBILE LANDSCAPE




We need to redefine ‘R’

•     It’s no longer this easy:


                         Carrier



                                                                 Licensing




                                                        Media cost

                          Revenue

                                    Billing provider


© Mobext 2012                              mobext.com                        45
THE MOBILE LANDSCAPE




So, how to redefine ROI?

•     We’re playing a longer game now

•     We need new measures for success

•     It’s getting more complicated
        –  No longer just about instant revenues


•     A reputation built slowly can be damaged very quickly




© Mobext 2012                                      mobext.com   46
THE MOBILE LANDSCAPE




The new model… is something like the old model?




© Mobext 2012            mobext.com               47
THE MOBILE LANDSCAPE




It’s an ongoing conversation

A deliberate, considered approach spans a range of brand activities:

•     Brand exposure
•     User engagement
•     Building a permission database
•     Gaining consumer insight (user data)
•     Making a sale




© Mobext 2012                                mobext.com                48
THE MOBILE LANDSCAPE




© Mobext 2012          mobext.com   49
THE NEW PARADIGM
THE NEW PARADIGM




The new paradigm > A new set of rules

1.    Listen
2.    Interrupt gracefully (if at all)
3.    Reduce the noise
4.    Be authentic
5.    Whisper, don’t shout
6.    Understand context
7.    Build a platform




© Mobext 2012                            mobext.com   51
THE NEW PARADIGM




1. Listen

•     It starts with listening.

        –  Who are your customers?
        –  How do they interact (with you, with each other)?
        –  How do they use technology?

        –  If unsure about their motivations, ask!

        –  Ask ‘Why?’ – a lot.


•     The result:

        –  Respectful, relevant interaction.




© Mobext 2012                                        mobext.com   52
THE NEW PARADIGM




The new paradigm > A new set of rules

1.    Listen
2.    Interrupt gracefully (if at all)
3.    Reduce the noise
4.    Be authentic
5.    Whisper, don’t shout
6.    Understand context
7.    Build a platform




© Mobext 2012                            mobext.com   53
THE NEW PARADIGM




2. Interrupt gracefully (if at all)

•     Advertising has always been brash, but we’ve reached a watershed:

        –  Shouting for attention is no longer a virtue (especially such a personal, direct channel)
        –  It’s exhausting, and it makes your brand appear insecure and desperate


•     Make sure that interruption is a
      conscious choice, not a default setting.

•     “It’s not advertising if it’s relevant and
      useful”
      – focus group respondent.




© Mobext 2012                                     mobext.com                                           54
THE NEW PARADIGM




                "Marketing by interrupting people isn’t cost-effective anymore.
                     You can’t afford to seek out people and send them
                    unwanted marketing messages, in large groups, and
                            hope that some will send you money.”

                                         - Seth Godin




© Mobext 2012                               mobext.com                            55
THE NEW PARADIGM




The new paradigm > A new set of rules

1.    Listen
2.    Interrupt gracefully (if at all)
3.    Reduce the noise
4.    Be authentic
5.    Whisper, don’t shout
6.    Understand context
7.    Build a platform




© Mobext 2012                            mobext.com   56
THE NEW PARADIGM




3. Reduce the noise

•     Customers everywhere have access to more data and stimulus than ever.

•     We face a wall of white noise – people shouting for our attention.
        –  Impinging on us in the physical and digital world.




© Mobext 2012                                     mobext.com                  57
THE NEW PARADIGM




Filtering out the noise makes us happier

•     We’ll even pay for it.

        –  Not just in premium / ad-free versions of sites and apps,
        –  But to remove ads from our devices themselves...




© Mobext 2012                                    mobext.com            58
Michael de Souza, Mobext 20121012
THE NEW PARADIGM




Filtering tools are evolving

•     There are more tools than ever to protect us from unwanted noise
        –  And there will be more on the way
                •    … especially with a wide market willing to pay $15 per user per device!


•     So, if you’re contributing more noise than value, customers will filter you out,
        –  and then, you simply won’t exist in their world.




© Mobext 2012                                               mobext.com                         60
Caveat: Less noise ≠ less information

•     The problem isn't the amount of data that we're receiving.
        –  More useful information is a good thing.
        –  It's that data needs to be presented more intelligently.




© Mobext 2012                                     mobext.com          61
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Simple sells
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
THE NEW PARADIGM




The new paradigm > A new set of rules

1.    Listen
2.    Interrupt gracefully (if at all)
3.    Reduce the noise
4.    Be authentic
5.    Whisper, don’t shout
6.    Understand context
7.    Build a platform




© Mobext 2012                            mobext.com   73
THE NEW PARADIGM




4. Be authentic

•     Consumers are looking for authenticity
        –  Brands with a back-story
        –  Artisan-made / natural over artificial /
           ethics over profits


•     Accept that you don’t own your brands,
      your consumers do.




© Mobext 2012                                    mobext.com   74
THE NEW PARADIGM




Right now, just two groups connect with mobile users in an authentic way:

1.  A handful of global corporations

2.  A multitude of small, nimble brands
        –  They can't help but speak with an authentic human voice
        –  They have genuine conversations
        –  There's no corporate firewall to hide them from view




© Mobext 2012                                   mobext.com                  75
THE NEW PARADIGM




•     Learning to speak in a human voice isn’t some trick.
        –  Lip service about "listening to customers" won't do the job either.


•     Intelligent, approachable humans exist in (almost) all companies.
        –  Real human beings with Twitter followings and meaningful Facebook connections.
        –  Humans who are imminently qualified to make contact with the outside world.


•     Don’t handicap your organisation’s ability to deliver genuine knowledge,
        –  Don’t crank out sterile happy-talk that insults the intelligence of markets who are too smart
           to buy it.




© Mobext 2012                                     mobext.com                                           76
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
THE NEW PARADIGM




The new paradigm > A new set of rules

1.    Listen
2.    Interrupt gracefully (if at all)
3.    Reduce the noise
4.    Be authentic
5.    Whisper, don’t shout
6.    Understand context
7.    Build a platform




© Mobext 2012                            mobext.com   102
THE NEW PARADIGM




5. Whisper, don’t shout


                   “In a room full of people shouting,
                    It’s the person who’s whispering
                    Who becomes most interesting.”




© Mobext 2012                    mobext.com              103
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
THE NEW PARADIGM




The new paradigm > A new set of rules

1.    Listen
2.    Interrupt gracefully (if at all)
3.    Reduce the noise
4.    Be authentic
5.    Whisper, don’t shout
6.    Understand context
7.    Build a platform




© Mobext 2012                            mobext.com   108
THE NEW PARADIGM




6. Understand the power of context

… and learn to spot opportunities for value exchange.

•     We can be reached at work, on holiday, in a meeting, in bed
        –  at moments of boredom, excitement, loneliness, inspiration…


•     Understand these contexts,
        –  then identify moments of value exchange.




© Mobext 2012                                  mobext.com                109
THE MOBILE LANDSCAPE




For the first time ever, advertisers have to ask:



                       ‘Why might this person
                        care about my brand
                          at this moment?’




© Mobext 2012                  mobext.com          110
Put another way…


                          Mobile has enabled you
                to be closer than ever to your consumers.

                       As marketers, we’ve never
                       had this kind of potential.




© Mobext 2012                    mobext.com                 111
THE NEW PARADIGM




The new paradigm > A new set of rules

1.    Listen
2.    Interrupt gracefully (if at all)
3.    Reduce the noise
4.    Be authentic
5.    Whisper, don’t shout
6.    Understand context
7.    Build a platform




© Mobext 2012                            mobext.com   112
THE NEW PARADIGM




7. Build a brand platform

•     Campaigns: episodic outbound messages across a channel
        –  Goal: “tell people about that”


•     Platforms: fuelled by the campaigns
        –  Must be utilitarian
        –  Must serve a community
        –  Goal: To be interesting / useful enough to adopt
                •    Never a hard sell




© Mobext 2012                                    mobext.com    113
Commodification

•     Consumers are spoilt for choice, and better informed that ever.

•     Overwhelmed with equivalent goods and services.
        –  Is your hamburger / hatchback / fizzy drink really better than the others?


•     Brands need to work harder to differentiate
        –  They need something more than a great brand story.




© Mobext 2012                                    mobext.com                            114
The remedy

•     Platforms provide:
        –  A community, a niche, a sense of belonging
        –  An identity
        –  A set of behaviours




© Mobext 2012                                   mobext.com   115
Platforms start with permission

•     … which is the nicest thing a customer can give you.




© Mobext 2012                               mobext.com       116
Michael de Souza, Mobext 20121012
Michael de Souza, Mobext 20121012
WRAPPING UP
WRAPPING UP




Wrapping up

1.    Listen
2.    Interrupt gracefully (if at all)
3.    Reduce the noise
4.    Be authentic
5.    Whisper, don’t shout
6.    Understand context
7.    Build a platform




© Mobext 2012                            mobext.com   120
WRAPPING UP




Where to start?

•     Start by allowing customers to grant you permission to talk to them

        –  And please, don’t be anything like that property developer.




© Mobext 2012                                    mobext.com                 121
WRAPPING UP




One final thought



                “You don’t do mobile because it’s big and
                     because it’s growing. You do it
                           because it works.”

                            - Brian Colbert.




© Mobext 2012                    mobext.com                 122
WRAPPING UP




We’re a small, nimble tribe of mobile specialists
Thank you



                      Michael de Souza
                 General Manager / @mobext
                    Singapore & Malaysia
                        +65 9783 4092
                michael.desouza@mobext.com




© Mobext 2012             mobext.com         124

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Michael de Souza, Mobext 20121012

  • 1. Mobile ROI Michael de Souza General Manager, Mobext / Singapore & Malaysia
  • 2. Agenda •  The mobile landscape –  It’s hard to define ROI, let alone achieve it •  A new paradigm –  The rules of marketing and advertising are changing. •  Examples –  Who’s doing it right? © Mobext 2012 mobext.com 2
  • 4. THE MOBILE LANDSCAPE What you already know 1.  Mobile’s really, really big. 2.  It’s changed how we communicate and interact. 3.  It’s breathtakingly efficient, cheap and offers a better user experience then ever. 4.  The future is already here. –  It’s just not yet evenly distributed © Mobext 2012 mobext.com 4
  • 7. So, why’s it so difficult to make a business model work? •  For publishers? •  For advertisers? © Mobext 2012 mobext.com 7
  • 8. Publishers •  Many competing businesses ‘trying to eat the publisher’s lunch’ –  Platforms –  Operating systems –  Device manufacturers –  Ad networks •  All trying to ‘own’ the consumer / ‘own’ the advertiser experience •  Many players are duplicating efforts, while ignoring other areas altogether © Mobext 2012 mobext.com 8
  • 11. The dismal state of mobile monetisation •  Potential catastrophe awaits publishers who don’t get their business models right. •  Only a few players getting it right. © Mobext 2012 mobext.com 11
  • 15. HTML5 FT.com learnings •  Didn’t just disappear when they abandoned the app store •  Discoverability was no problem –  In fact, it was easier for them to promote the app •  You can forge your own direction is you are prepared to do so. © Mobext 2012 mobext.com 15
  • 21. Advertisers •  Brands spend very little on mobile –  1% of total ad spend (BUT, this excludes non-media expenditure) –  Most marketing departments have no dedicated mobile resources / time •  The budgets barely cover the basics –  App / mobile site development –  Limited marketing campaigns to support these •  Work is therefore limited to adaptation of PC services / content to the small screen –  Almost no chance of developing for mobile –  Let alone device-specific strategies © Mobext 2012 mobext.com 21
  • 24. And yet… "It's not about the size of the screen, or the size of the ad, it's the size of the audience, and the depth of engagement.” - Rohit Dadwal, MMA Apac © Mobext 2012 mobext.com 24
  • 25. A Self-fulfilling prophecy? •  Achieving ROI with no investment is impossible –  A recent example from a travel client. •  Total media budget: $3.4m (4 countries, 4 weeks) •  Mobile budget: $80k (2.4%) –  No mobile booking function yet, so client unwilling to allocate more than that. •  Addressable market (3G connectivity / 20-49 years / mobile & tablet) –  CN: 51.7m –  ID: 11.2m –  MY: 2.9m –  SG: 2.3m •  Weighted budget –  CN: $61k –  ID: $13.1k –  MY: $3.1k –  SG: $2.7k © Mobext 2012 mobext.com 25
  • 26. So what’s the optimal budget allocation, then? © Mobext 2012 mobext.com 26
  • 27. So what’s the optimal budget allocation, then? 7% on mobile (September’s MMA / Marketing Evolution study) © Mobext 2012 mobext.com 27
  • 28. Around 7% (adjusting per goal and category) © Mobext 2012 mobext.com 28
  • 30. SIRFs © Mobext 2012 mobext.com 30
  • 31. Methodology © Mobext 2012 mobext.com 31
  • 32. Share of the mix © Mobext 2012 mobext.com 32
  • 33. Using mobile at launch © Mobext 2012 mobext.com 33
  • 34. Yet, “the 7% answer” is still not entirely clear •  The myth: “Mobile campaigns reach everybody” –  Don’t mix up numbers (eg SMS reach) in campaign planning –  Each mobile channel is a distinct market •  Mobile can’t be a convenient anytime / any place extension of your other campaigns •  There are numerous distinct communities and behaviours within mobile –  Social networks –  Mobile gaming –  Web content –  In-app content •  …and many more © Mobext 2012 mobext.com 34
  • 35. The challenge •  To ‘overinvest’ your time and energy in mobile now –  Even if you have far less budget to work with •  Stop looking at your media budget for answers –  Mobile should form part of the actual brand experience, not just advertising •  The Risk: failing to stop and think will damage your brand –  We see it all the time. © Mobext 2012 mobext.com 35
  • 36. THE MOBILE LANDSCAPE The industry’s plagued by antisocial practices •  A property developer walks into a bar… –  10,000 SMSs > 2 sales •  Interruptive, disrespectful, unsustainable –  These guys aren’t alone •  Mobile carriers, banks, many others… © Mobext 2012 mobext.com 36
  • 37. THE MOBILE LANDSCAPE © Mobext 2012 mobext.com 37
  • 39. THE MOBILE LANDSCAPE Why are these problems so prevalent? •  Mobile interaction is one-to-one –  That gives cover for otherwise respectable companies to pass the ‘red face’ test –  Marketing heads plead ignorance (or turn a blind eye) –  Brand guidelines don’t yet cater for mobile –  Recipients tend to ‘avoid the noise’ © Mobext 2012 mobext.com 39
  • 40. THE MOBILE LANDSCAPE Insidious damage •  Bad practices are usually not bad enough to cause torrents of complaints –  It’s a gradual erosion of trust •  The damage done is seldom intentional –  Usually, it’s the result of someone taking a shortcut –  Although sometimes, lack of consideration is acknowledged and intentional… © Mobext 2012 mobext.com 40
  • 41. THE MOBILE LANDSCAPE ‘Spray and pray’ •  Mass is no excuse for lack of appropriateness –  “With this many impressions, we’re bound to reach someone in our target market!” •  Is that really what you want? © Mobext 2012 mobext.com 41
  • 42. THE MOBILE LANDSCAPE No time to think! •  Oh no! They asked for ‘something mobile’! –  Can you put down some quick ideas by lunchtime? © Mobext 2012 mobext.com 42
  • 43. THE MOBILE LANDSCAPE Enough, already •  The industry badly needs to –  Stop shouting at a faceless crowd –  And start having respectful conversations •  Decide that we’re in it for the long haul –  Build relationships –  Establish trust –  Earn a customer’s lifetime value © Mobext 2012 mobext.com 43
  • 44. THE MOBILE LANDSCAPE Mobile’s personal •  Everything we do affects customers intimately and immediately –  There’s no escape! •  It requires that brands form a new kind of relationship •  It requires an authentic, personal conversation © Mobext 2012 mobext.com 44
  • 45. THE MOBILE LANDSCAPE We need to redefine ‘R’ •  It’s no longer this easy: Carrier Licensing Media cost Revenue Billing provider © Mobext 2012 mobext.com 45
  • 46. THE MOBILE LANDSCAPE So, how to redefine ROI? •  We’re playing a longer game now •  We need new measures for success •  It’s getting more complicated –  No longer just about instant revenues •  A reputation built slowly can be damaged very quickly © Mobext 2012 mobext.com 46
  • 47. THE MOBILE LANDSCAPE The new model… is something like the old model? © Mobext 2012 mobext.com 47
  • 48. THE MOBILE LANDSCAPE It’s an ongoing conversation A deliberate, considered approach spans a range of brand activities: •  Brand exposure •  User engagement •  Building a permission database •  Gaining consumer insight (user data) •  Making a sale © Mobext 2012 mobext.com 48
  • 49. THE MOBILE LANDSCAPE © Mobext 2012 mobext.com 49
  • 51. THE NEW PARADIGM The new paradigm > A new set of rules 1.  Listen 2.  Interrupt gracefully (if at all) 3.  Reduce the noise 4.  Be authentic 5.  Whisper, don’t shout 6.  Understand context 7.  Build a platform © Mobext 2012 mobext.com 51
  • 52. THE NEW PARADIGM 1. Listen •  It starts with listening. –  Who are your customers? –  How do they interact (with you, with each other)? –  How do they use technology? –  If unsure about their motivations, ask! –  Ask ‘Why?’ – a lot. •  The result: –  Respectful, relevant interaction. © Mobext 2012 mobext.com 52
  • 53. THE NEW PARADIGM The new paradigm > A new set of rules 1.  Listen 2.  Interrupt gracefully (if at all) 3.  Reduce the noise 4.  Be authentic 5.  Whisper, don’t shout 6.  Understand context 7.  Build a platform © Mobext 2012 mobext.com 53
  • 54. THE NEW PARADIGM 2. Interrupt gracefully (if at all) •  Advertising has always been brash, but we’ve reached a watershed: –  Shouting for attention is no longer a virtue (especially such a personal, direct channel) –  It’s exhausting, and it makes your brand appear insecure and desperate •  Make sure that interruption is a conscious choice, not a default setting. •  “It’s not advertising if it’s relevant and useful” – focus group respondent. © Mobext 2012 mobext.com 54
  • 55. THE NEW PARADIGM "Marketing by interrupting people isn’t cost-effective anymore. You can’t afford to seek out people and send them unwanted marketing messages, in large groups, and hope that some will send you money.” - Seth Godin © Mobext 2012 mobext.com 55
  • 56. THE NEW PARADIGM The new paradigm > A new set of rules 1.  Listen 2.  Interrupt gracefully (if at all) 3.  Reduce the noise 4.  Be authentic 5.  Whisper, don’t shout 6.  Understand context 7.  Build a platform © Mobext 2012 mobext.com 56
  • 57. THE NEW PARADIGM 3. Reduce the noise •  Customers everywhere have access to more data and stimulus than ever. •  We face a wall of white noise – people shouting for our attention. –  Impinging on us in the physical and digital world. © Mobext 2012 mobext.com 57
  • 58. THE NEW PARADIGM Filtering out the noise makes us happier •  We’ll even pay for it. –  Not just in premium / ad-free versions of sites and apps, –  But to remove ads from our devices themselves... © Mobext 2012 mobext.com 58
  • 60. THE NEW PARADIGM Filtering tools are evolving •  There are more tools than ever to protect us from unwanted noise –  And there will be more on the way •  … especially with a wide market willing to pay $15 per user per device! •  So, if you’re contributing more noise than value, customers will filter you out, –  and then, you simply won’t exist in their world. © Mobext 2012 mobext.com 60
  • 61. Caveat: Less noise ≠ less information •  The problem isn't the amount of data that we're receiving. –  More useful information is a good thing. –  It's that data needs to be presented more intelligently. © Mobext 2012 mobext.com 61
  • 73. THE NEW PARADIGM The new paradigm > A new set of rules 1.  Listen 2.  Interrupt gracefully (if at all) 3.  Reduce the noise 4.  Be authentic 5.  Whisper, don’t shout 6.  Understand context 7.  Build a platform © Mobext 2012 mobext.com 73
  • 74. THE NEW PARADIGM 4. Be authentic •  Consumers are looking for authenticity –  Brands with a back-story –  Artisan-made / natural over artificial / ethics over profits •  Accept that you don’t own your brands, your consumers do. © Mobext 2012 mobext.com 74
  • 75. THE NEW PARADIGM Right now, just two groups connect with mobile users in an authentic way: 1.  A handful of global corporations 2.  A multitude of small, nimble brands –  They can't help but speak with an authentic human voice –  They have genuine conversations –  There's no corporate firewall to hide them from view © Mobext 2012 mobext.com 75
  • 76. THE NEW PARADIGM •  Learning to speak in a human voice isn’t some trick. –  Lip service about "listening to customers" won't do the job either. •  Intelligent, approachable humans exist in (almost) all companies. –  Real human beings with Twitter followings and meaningful Facebook connections. –  Humans who are imminently qualified to make contact with the outside world. •  Don’t handicap your organisation’s ability to deliver genuine knowledge, –  Don’t crank out sterile happy-talk that insults the intelligence of markets who are too smart to buy it. © Mobext 2012 mobext.com 76
  • 102. THE NEW PARADIGM The new paradigm > A new set of rules 1.  Listen 2.  Interrupt gracefully (if at all) 3.  Reduce the noise 4.  Be authentic 5.  Whisper, don’t shout 6.  Understand context 7.  Build a platform © Mobext 2012 mobext.com 102
  • 103. THE NEW PARADIGM 5. Whisper, don’t shout “In a room full of people shouting, It’s the person who’s whispering Who becomes most interesting.” © Mobext 2012 mobext.com 103
  • 108. THE NEW PARADIGM The new paradigm > A new set of rules 1.  Listen 2.  Interrupt gracefully (if at all) 3.  Reduce the noise 4.  Be authentic 5.  Whisper, don’t shout 6.  Understand context 7.  Build a platform © Mobext 2012 mobext.com 108
  • 109. THE NEW PARADIGM 6. Understand the power of context … and learn to spot opportunities for value exchange. •  We can be reached at work, on holiday, in a meeting, in bed –  at moments of boredom, excitement, loneliness, inspiration… •  Understand these contexts, –  then identify moments of value exchange. © Mobext 2012 mobext.com 109
  • 110. THE MOBILE LANDSCAPE For the first time ever, advertisers have to ask: ‘Why might this person care about my brand at this moment?’ © Mobext 2012 mobext.com 110
  • 111. Put another way… Mobile has enabled you to be closer than ever to your consumers. As marketers, we’ve never had this kind of potential. © Mobext 2012 mobext.com 111
  • 112. THE NEW PARADIGM The new paradigm > A new set of rules 1.  Listen 2.  Interrupt gracefully (if at all) 3.  Reduce the noise 4.  Be authentic 5.  Whisper, don’t shout 6.  Understand context 7.  Build a platform © Mobext 2012 mobext.com 112
  • 113. THE NEW PARADIGM 7. Build a brand platform •  Campaigns: episodic outbound messages across a channel –  Goal: “tell people about that” •  Platforms: fuelled by the campaigns –  Must be utilitarian –  Must serve a community –  Goal: To be interesting / useful enough to adopt •  Never a hard sell © Mobext 2012 mobext.com 113
  • 114. Commodification •  Consumers are spoilt for choice, and better informed that ever. •  Overwhelmed with equivalent goods and services. –  Is your hamburger / hatchback / fizzy drink really better than the others? •  Brands need to work harder to differentiate –  They need something more than a great brand story. © Mobext 2012 mobext.com 114
  • 115. The remedy •  Platforms provide: –  A community, a niche, a sense of belonging –  An identity –  A set of behaviours © Mobext 2012 mobext.com 115
  • 116. Platforms start with permission •  … which is the nicest thing a customer can give you. © Mobext 2012 mobext.com 116
  • 120. WRAPPING UP Wrapping up 1.  Listen 2.  Interrupt gracefully (if at all) 3.  Reduce the noise 4.  Be authentic 5.  Whisper, don’t shout 6.  Understand context 7.  Build a platform © Mobext 2012 mobext.com 120
  • 121. WRAPPING UP Where to start? •  Start by allowing customers to grant you permission to talk to them –  And please, don’t be anything like that property developer. © Mobext 2012 mobext.com 121
  • 122. WRAPPING UP One final thought “You don’t do mobile because it’s big and because it’s growing. You do it because it works.” - Brian Colbert. © Mobext 2012 mobext.com 122
  • 123. WRAPPING UP We’re a small, nimble tribe of mobile specialists
  • 124. Thank you Michael de Souza General Manager / @mobext Singapore & Malaysia +65 9783 4092 michael.desouza@mobext.com © Mobext 2012 mobext.com 124