Dilemma of pervasive connectivity

The
dilemma
of pervasive

connectivity

IMMAP Barney Loehnis
August 2011 @barneylo

Head of Digital, Ogilvy Asia Paciﬁc
Chairman, Asia Paciﬁc, MMA

1
Monday, 29 August 2011
Without apology I want to gaze into the future to help inform us here in the Philippines of what we need to do now to be best prepared
Last time I was in Philippines this year I talked about the 6 opportunities to leverage mobile across communications - 6 ways that marketers could use the power of the mobile device to help engage
consumers
I started off by talking about the the last dawn of the digital revolution...
... and about the beginning of the new revolution -one of Augmented Humanity

today I want to talk about something slightly different. I want to start off with our consumer
We know that the consumer is ahead of agencies and clients in terms of their behaviors and use of technology
this latest shift, this new dawn of augmented humanity is fascinating and has deep implications for building brands

this is a primarily mobile story. but make no mistake all content is now digital, all digital now social and all content, digital and social is now mobile

The dilemma of pervasive connectivity is this

1. weʼve been willing this to happen for years, but it only makes our life more complicated
2. Pervasive connectivity was something that was meant to make us smart, but it might just be make us dumb
3. If you never start the race you cannot win. If you start you cannot stop. Do not go into this aiming to experiment, go into aiming to win. But accept some some of your efforts will end up as experiments to a
future success.

The consumer is more dangerous than ever. Armed with a little bit of knowledge that can easily disarm an unsuspecting sales assistant and start bullying store managers!
Tweet power is like a grenade that they can lob into the social space and let it rip some havoc

The only way for brands to retain control is to take control of th customer experience and enable it in the mobile space. BEcause it is here when our consumers are most vulnerable themselves to brilliantly
crafted communications and utilities that marketers conjure up

Pervasive Connectivity

Augmented Humanity

Mobile First

2

this is the end of the digital revolution
We are now in an era where all the potential of digital and mobile that we dreamed of 20 years ago is now a reality.
Pervasively connected. Digital delivering an augmented reality to physical real life experiences
Think about the mobile platform as the primary platform for development

ALSO - need to move away from using mobile as a tactical add-on. We need to use mobile as a strategic opportunity to develop and omnipresence for the brand

Mobile is the narrative “thread” of communications

The “red thread” in Zhang XiaoGang’s series “Bloodlines” always struck me as performing the same function for his paintings as Mobile does for brands.

It creates a bloodline between the people portrayed. An intimate connection to people that are related
It provides connectedness from one moment to the next - for me a sort of connectedness between emotional connections
It represents that people are never out of touch, that there needs to be some bridging from one moment to the next.
It implies that what we are looking at, is simply one of a multiple series of engagements, connected by the red thread. the thread is a device that transcends moments, and acts as a continual connection.
Actually, this stands not only as a metaphor for mobile, but as a metaphor for digital communications.Mobile must be seen as a strategic thread that plays through and across all brand communications
and touch points, and not simply as a tactical instance.

I want to introduce the idea of a mobile platform. A platform in this sense is a way to connect one brand experience to another. It could be an app, or a web site, or a phone, or a prepay card. It is the “red
thread” on which we can hang campaigns and communications. It a platform that can serve multiple communications, and help bring them together as a coherent whole to consumers.

Mobile

Internet

Users

Desktop
Internet

Users

by

2014
More
people
will
access
the

internet
via
a
mobile
device
than

a
PC
Source: Morgan Stanley Research


59% in INdia
44% in indonesia
30% in China

5

End of boredom.. something really game changing... farmers in mid west... OFW’s, taxi drivers in durban.. thugs in london ...

Mobile is used to ill time. What effect is that having on society? Is it healthy? Do you ever think about the time spent building relationships between co-workers and friends, which is now spent
head down in the mobile phone?

There is a real need for brands to deeply understand consumer’s behaviour when using the mobile device. How is it supporting, accelerating or acting as a deterrent to SALES?

This is ANGRY BLACK MAN. A famous vLogger from the US who creates videos about brands and things that make him angry.

Any brand is vulnerable to the ABM, particularly Fast Food chains, and in this example McDonalds. His videos have huge numbers of subscribers, and many millions of page
views.

it represents to me the task that many brands have of managing their reputation. The all powerful consumers - whether they are right or wrong - can have a huge impact on
other people's POV on a brand. Brands need to be mindful of how to use the mobile device to their advantage and ho to protect themselves against more malicious activities
on social media and other web sites.

How
do
mobile

devices
impact

shopping?
7


Tesco


When
will
the
chasm
be
crossed?
me money from my mobile expertise?
W TF will I make so

Trusted?
Learned?
Needed?
Simplifying?

5% 15% 30% 30% 20%
Innovators Opinion Early Late Laggards
Leaders Majority Majority

Source: OgilvyOne Study, U.S., U.K., Singapore. Sample size=1,500.

HOT DATA FROM

Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500,
United States, United Kingdom, Singapore

Q: SEARCHED GOOGLE FROM PHONE TO
GET INFORMATION ON A PRODUCT?

Singapore
United Kingdom

Opinion
Opinion Early
Early Late
Late
Innovators
Innovators Leaders
Leaders Majority
Majority Majority
Majority Laggards
Laggards

84%
85% 83%
55% 69%
24% 54%
9% 20%
4%

75% among smartphone owners

SEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT



Singapore
8

Opinion Early Late
Innovators Leaders Majority Majority Laggards

84% 83% 69% 54% 20%




behavior among smartphone users.

Q: SCANNED A BAR CODE OR QR CODE
WITH MOBILE PHONE?

Singapore
United States

Opinion
Opinion Early
Early Late
Late
Innovators
Innovators Leaders
Leaders Majority
Majority Majority
Majority Laggards
Laggards

77%
61% 38%
37% 19%
33% 3%
6% 0%
0%


SCANNED A A BAR CODE OR QR CODE WITH MOBILE PHONE
SCANNED BAR CODE OR QR CODE WITH MOBILE PHONE

Source: OgilvyOne andand OgilvyAction Global Mobile Retail Study, March 2011, n=1,500,
Source: OgilvyOne OgilvyAction Global Mobile Retail Study, March 2011, n=1,500,


10

9


Q: LOOKED AT A PRODUCT IN-STORE AND
WENT ONLINE OR ORDERED FROM PHONE?

United Kingdom
Singapore

Opinion Early Late
Late
Innovators Leaders Majority Majority
Majority Laggards
Laggards

83%
90% 69% 59%
76% 47%
69% 34%
50%
LOOKED AT A PRODUCT IN-STORE AND THEN ORDERED IT ONLINE
AND THEN ORDERED IT ONLINE

67%
64% 51%
27% 27%
14% 15%
7% 0%
3%
LOOKED AT A PRODUCT IN-STORE AND ORDERED FROM PHONE IMMEDIATELY
ORDERED FROM PHONE IMMEDIATELY



Singapore
12

Opinion Early Late

83% 69% 59% 47% 34%
LOOKED AT A PRODUCT IN-STORE AND THEN ORDERED IT ONLINE


Q: ASKED A RETAIL STORE TO MATCH
PRICE VIA PRINTOUT OR PHONE?

United States
United Kingdom
Singapore

Opinion
Opinion
Opinion Early
Early
Early Late
Late
Late
Innovators
Innovators
Innovators Leaders
Leaders
Leaders Majority
Majority
Majority Majority
Majority
Majority Laggards
Laggards
Laggards

79%
68%
62% 55%
35%
50% 45%
35%
35% 30%
26%
12% 24%
17%
3%
ASK A RETAIL STORE TOTO MATCH PRICE BY SHOWING PRINTOUT OF COMPETITOR’S PRICE
ASKED A A RETAIL STOREMATCH PRICE BY BY SHOWING A PRINTOUT OF COMPETITOR’S PRICE
ASKED RETAIL STORE TO MATCH PRICE SHOWING A A OF COMPETITOR’S PRICE

60%
71%
58% 32%
28%
44% 16%
12%
29% 10%
10%
6% 3%
8%
3%
ASKED A A RETAIL STORE TO MATCHPRICEBY SHOWING COMPETITOR’S PRICE ON PHONE
ASKED RETAIL STORE TO MATCH PRICE BY SHOWING COMPETITOR’S PRICE ON PHONE
STORE TO MATCH PRICE BY SHOWING COMPETITOR’S PRICE ON PHONE

United States, United
Kingdom, Singapore


Singapore
14

Opinion Early Late

13
62% 50% 35% 12% 3%
ASK A RETAIL STORE TO MATCH PRICE BY SHOWING A PRINTOUT OF COMPETITOR’S PRICE

58% 44% 29% 6% 3%
ASKED A RETAIL STORE TO MATCH PRICE BY SHOWING COMPETITOR’S PRICE ON PHONE

“Customers are tired of bargain
hunting, tired of having to give the
emotional beneﬁts of purchasing
away.”

seth farbman Chief Marketing Ofﬁcer, Gap

14


INTERVIEWS

15


Old
Marketplace
Rules,

New
Shopper
Tools


What
is
the

Shopper

Journey?
17


Mobile Shopping Journey
Can Control Can Inﬂuence Can Monitor

Planning the
purchases

Plan

Sharing opinions Research Use of mobile to
about the Share - On the research and location
experience Go services

Better decisions
Consume In-Store
Extend the value of regarding prices and
products characteristics of the
products


Plan

The Shopping Journey - Planning

57% who used a mobile coupon would not have bought the item*
36% of customers would like to receive grocery coupons on the smartphones*
*source: Juniper Research
*source: Juniper Research

Shopping list
Epicurious

The Shopping Journey - Research On-
the-go
A plethora of services available

Google Product Search

Scoutmob App

On average, 27% of all Yelp searches come from their iPhone App. In May 2010 over half a million calls were made to local
businesses directly from the Yelp iPhone App and nearly one million people generated point-to-point directions to a local business
from their Yelp iPhone App in the same period where Yelp for iPhone has had over 1.4 million visitors.

Google is once again trying to change the way we use the internet to shop for products, with a new tool that searches local inventories. This
isn't the Google Maps Store View we heard about earlier, but an extension to Google Product Search. When logging on to Google from a
mobile, location aware device, Product Search can use that data to query stores in the area and check if the products the consumer
is interested in buying are in stock or not.

And of course there are apps to push users information on special deals and opportunities. TheDealMap application serves up an
interactive map that shows users sales and promotions near where they are shopping. The app offers a variety of ﬁlters to customise
the types of deals users want to see, such as restaurants, kid-oriented promotions or shopping.

Shopkick is an application that uses an innovative technology - they work with the retail stores to install an in-store hardware that consists of
a box emitting a special-pitch sound that's inaudible to humans but that your phone can hear. This allows for the consumer - which does not
even notice any difference and does not need to install or conﬁgure any features - to be surprised when they walk inside the store.

A more classic approach to this problematic is to serve consumers with real-time location-based coupons, which serve the same purpose
and may be simpler for retailers to instal. Woot, the online coupons system, developed Scoutmob - the mobile version of Woot, but reaching
a much wider scale of retailers due to the local nature of the service.

The Shopping Journey - In-Store
Barcode scanning usage indicators
InStore

Google
Product Search TheFind
Scan/Compare/Buy

What types of goods users scan, and what for:

Groceries and Personal Care lead the charge Nutritional Info comes 3rd in click-through rates


The Shopping Journey - Consume
Numerous possibilities - little data
Consum
e

Extend the Brand Platforms
Product

Nespresso
Subway, iPhone App
Usage - Hack


The Shopping Journey - Share Share

From twits to video review

Twitter Video Consumer
on Kitkat Reviews

Deisel Storecam /
Facebook

Status
Updates


- 53% of people on Twitter recommend companies and/or products
in their Tweets (ROI Research for Performance, June 2010)
- 40% of all tweets are made from mobile devices according its CEO Dick Costolo revealed at
AllThingsD event at CES.

- Mobile devices are used by 32% of consumers to browse or research products or services at least
once a month (ATG, March 2010)

- 64% of respondents who had watched a user-generated video review, and more than three-quarters of
that group said it helped them make a purchase decision—either for or against a product or brand. (ATG,
March 2010)

- 81.3% listed the ability to see the product in action as their favourite thing about video reviews.
(Internet Retailer, June 2010)

- YouTube is now serving over 200 million video views per day to mobile devices (YouTube, Jan 2011)

A digital retail experience
Subhead


My eight areas of further exploration....

Isobar
1. Shoppers are on a constant journey - deliver throughout
2. Location! Inﬂuence preference & trigger purchase
3. Warning: shoppers come armed. Give transparency they crave
4. Shoppers want value beyond promotions.
5. Data delivers context and intent.
6. Empower your staff to augment mobile experiences.
7. Keep focus. Collaborate with innovators: serve the mass
8. Earn the intimacy of the device.


Thank you.

For a copy of Ogilvy’s
research on Mobile
Shoppers:

@barneylo

Questions?
27

Dilemma of pervasive connectivity

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