Stephen Surman, former VP of Digital Strategy, Anheuser-Busch, talks about how Marketing Trumps Mobile at the MobiU2012 Summit, 9/24. He opened the Summit with his "Engagement Marketing" model that can be used to ensure your digital/mobile investments are worthwhile from a marketing viewpoint.

1. Marketing Trumps Mobile
Stephen Surman
@stephensurman
Event hashtag #MobiU2012
Presented by the Heartland Mobile Council

2. #MobiU2012, @stephensurman
Marketing Trumps Mobile
• Achieving scale – a challenge for all marketers, but
especially mobile marketers
• Mathematics
• Awareness
• What we can learn from marketing history
• Avoiding tangents – using engagement strategies to
drive relevancy and build your brand
• Fundamentals of digital marketing

3. #MobiU2012, @stephensurman
Good news: Mobile is BIG, getting BIGGER.
Mobile subscribers (B) Mobile apps in Apple app store
7.00 700000
6.00 600000
5.00 500000
4.00 400000
3.00 300000
2.00 200000
1.00 100000
0.00 0
2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
US text messages (B) US mobile data usage (PB)
3000.0 60
2500.0 50
2000.0 40
1500.0 30
1000.0 20
500.0 10
0.0 0
2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
International Telecommunications Union - http://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.html
Apple Q3 2012 report
CTIA - http://www.ctia.org/advocacy/research/index.cfm/aid/10323
Coda Research Consultancy - http://techcrunch.com/2010/03/30/mobile-data-traffic-rise-40-fold
eMarketer 2011

4. #MobiU2012, @stephensurman
Bad news: Mobile is BIG, getting BIGGER.
• By 2015, mobile usage will surpass desktop usage
• Global data usage will exceed 107 Exabytes per year by
2017
• 98 billion apps will be downloaded in 2015
• US text message volume to approach 4 trillion texts per
year in 2015
> Most brand apps never reach scale and
30% of all downloads fail to achieve repeat
usage
StatCounter projections, ABI Research, Berg Insight report
CTIA projection - http://www.ctia.org/advocacy/research/index.cfm/aid/10323
Localytics research, January 11

5. #MobiU2012, @stephensurman
How not to be a stalker
Scale: How not to be a victim to math
Used under Creative Commons license

6. #MobiU2012, @stephensurman
Digital math: shampoo marketers dilemma
# downloads High use Low use Network Total return
return return effect
25,000 10% (2500) x 15% (3750) x 5000 x 1 @ $56,138
2 @ 4.99 ea 1 @ 4.99 4.99
= $24,950 = $18,713 = $12,475
50,000 $112,275
100,000 $224,550
You don’t need a guarantee, only a reasonable expectation of a
return greater than alternative options

7. #MobiU2012, @stephensurman
Develop and deploy your own model
Owned Paid
Facebook & Email Digital Trad. POS Other
Web media media
Impressions 2.6MM 1.3MM 300MM 300MM 500K 500K
Click rate 1% 2% .5% 1% .25% .25%
Audience 26K 26K 1500 3000 1250 1250
Part. rate 10% 10% 10% 10% 10% 10%
Engagement 2600 2600 150 30 125 125
Direct engagement: 5630 Audience return: 1% at 1 unit
+ shares: 285 Part. return: 10% at 2 units
Earned
Total: 5915 Effectiveness: $10,636 incr sales

8. #MobiU2012, @stephensurman
Bad news: Mobile is getting BIGGER.
Awareness: How not to be a needle in a haystack
Photo by BrokenSphere - http://commons.wikimedia.org/wiki/File:Yunnan_haystack.JPG

9. #MobiU2012, @stephensurman
A quick look at the history of marketing
1920s 1980s

10. #MobiU2012, @stephensurman
When you isn’t enough, be a better you

11. #MobiU2012, @stephensurman
Add babies, bunnies, and bodies

12. #MobiU2012, @stephensurman

13. #MobiU2012, @stephensurman
A quick look at the history of marketing
Today: Buy me, I have an app
1920s 1980s

14. #MobiU2012, @stephensurman
Relevancy: Supporting your brand and your consumer
Photo by BrokenSphere - http://commons.wikimedia.org/wiki/File:Yunnan_haystack.JPG

15. #MobiU2012, @stephensurman
Start with an engagement strategy
Red Bull gives you the energy to tackle any challenge
and permission to do the unthinkable
Charmin helps make life’s unpleasant moments a
little bit more pleasant
Pampers helps you care for the happy, healthy
development of your baby
Harley Davidson gives you the freedom to ride
wherever life may take you

16. #MobiU2012, @stephensurman
What is an engagement strategy
An engagement strategy describes the brand story and
HOW the brand story will come to life.
A good engagement strategy:
• articulates the value proposition
• defines roles for the brand and the consumer
• illustrates shared values
• is active – the consumer participates alongside the
brand beyond in fulfilling the value proposition
• is rooted in authenticity and consistent with brand equity

17. #MobiU2012, @stephensurman
Example: Charmin Sit or Squat app

18. #MobiU2012, @stephensurman
Fundamentals of digital marketing
What is the value proposition? How does the consumer engage?
Why should the consumer care? • Are the steps to engage clear? Does the
Will it scale? consumer need to be trained?
• How much time and effort is required?
• Facilitate existing behaviors , basic needs
• Does the investment justify the value
• Enhance experience of existing behaviors
proposition?
• Reduce barriers to desired experiences
• Enable new experiences
Should we Will they
How can the experience best be Is there a reason for consumers
delivered? to share?
• What are the right channels? • How is the experience enhanced through the
• How do online and offline tactics support participation of friends and family?
each other? • Is there a sense of urgency
Can we Will others

19. #MobiU2012, @stephensurman
Marketing first, then mobile
• Do a scale check – execute mobile as a platform
• Make sure your brand has a solid engagement strategy,
including a relevant value proposition
• Identify your concept and check the digital fundamentals. Use
the framework.
• Should we
• Can we
• Will they
• Will others
• Execute and measure