The unstoppable rise of

mobile marketing.

april 2011
@nihalmehta
 mobile is
putting nearly everything within
“the arms reach of desire”

along the customer’s journey

3
Why mobile?
Can you imagine
living without it?
 The rest of the world can’t

– 6.8 billion people

– 5+ billion mobile
subscriptions
• 3+ Billion unique
– US – 277 million
subscriptions
• 233 million unique
The drivers for growth
Convergence
Economy
Marketing opportunities
Speed
Handsets
Data tariffs
Industry promotion
Consumer behavior
 more than a phone…
mobile is a cornerstone to the daily
lives to the vast majority

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Consumer channel choice

is about convenience
& need
mobile is an access point
 Mobile 3rd Most Used Media Channel
Average number of hours per week spent with:

Source: Microsoft Advertising Mobile Consumer Vertical Study - The

Future of Mobile Advertising, Nov. 11, 2009
The 7th mass media
Print
Recordings
Cinema
Radio
TV
Internet
Mobile
Source: Tomi Ahonen (2010)
 The convergence of media

TV Radio Recordings Comms. Print Cinema Internet

Source: Ahonen (2007)

 The many paths of mobile

Content

Source: comScore (Feb. 2010)

U.S. Text Messaging Growth
Worldwide est: 5.5 trillion messages in 2010
(Billions of messages) 160
152.6

140

120
110.4

100

80

60
48.1

40
4.6 18.7
9.7
20

Source: CTIA Semi-Annual Wireless Survey; Tomi Ahonen, 2010

 ChaCha is #1 in Mobile SMS Search

• 1.8+ million answers daily, representing 63% of domestic SMS answers market
• Growing at a rate of over 12% week over week in mid 2010

Source: Nielsen. July, 2010

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15
 Mobile App Proliferation

Source: Sharma Consulting (2010)

Social Networking has surpassed emailing
Mobile Social Networking
~80mm by 2015
 Mobile Users Access a Wide Range of Content

Top 20 Mobile Content Categories

Reach Among Active Users
(Browsing, Apps, SMS), April 2010, US
online retail 12%
auction sites 12%
electronic payments 12%
gaming information 13%
television guides 13%
classifieds 15%
general reference 17%
business directories 18%
traffic reports 18%
restaurant information 20%
tech news 21%
bank accounts 21%
stock quotes or financial news 22%
movie information 24%
entertainment news 29%
sports information 31%
maps 34%
news 36%
search 44%
weather 49%

Product:comScore MobiLens
Data: Three month average ending April 2010
 Customers want to use their mobile phone in store to help them research and buy

Please rate how useful the different pieces of information would

be to you when you are shopping in store. (% very helpful)

It is not all
about
commerce

Feb Communispace In Store Mobile Experience Survey

Mobile Internet Growth
Mobile Internet Growth
Mobile Internet Growth
 Myriad of Devices
Feature
75% - 80% of the
US Market

Smartphone
20% - 25% of the
US Market

Connected in other ways

Tomorrow (U.S.)
Future of mobile platforms

The Long View - Deloitte Predictions - Mobile Media World

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Android is now top selling smartphone globally
(Q4 2010)

28
 Growth in Mobile Media Parallels Increased
Tech Fragmentation
• 1168 handsets in US alone
• 40 handsets with installed base >1 million
• 195 smartphone models
• Multiple smartphone platforms with multiple OS versions
– RIM, Android, Apple, Windows, WebOs, Palm, Symbian, Meego,
Bada
• No standard user interaction model

Vast array of different medium for unique user experiences

Source: comScore 2010

 Defining Mobile Marketing

Mobile Marketing is a set of practices that

enables organizations to communicate and engage with
their audience in an interactive and relevant manner
through any mobile device or network.
(Mobile Marketing Association, 2009)
 Two Approaches to Mobile Marketing

• Direct Mobile Marketing (push/pull marketing)

– Marketer Initiated (push)
• e.g. SMS, MMS, Voice alerts (requires consumer opt-in & consent)

– Consumer Initiated (pull)

• Search, Applications, Mobile Web, etc.

– Mobile and Mobile-enhanced Products and Services

• Mobile capabilities may also be integrated in with the marketers product, customer
services or related offers, where mobile can be an enabling value added capability or
the primary services channel.

• Mobile Enabled Cross Media, “Integrated,” Marketing

– Mobile enhancement of traditional media & retail environments requiring consumer
initiated interaction with the marketing initiative (print, TV, radio, outdoor media, direct
mail, email, point-of-sale, Internet, mobile Internet, etc.)
– Mobile Advertising TA9
Consumer Acceptance

One in Five U.S. Adult Consumers Now Using

Mobile Commerce (MMA, 2010)

• 17% purchase applications, ringtones and

other content
• 6% receive coupons or discounts
• 6% purchase physical goods or non-
mobile content or services
Soft Drink Mobile Ad Displays are 3.2 times more
likely to be found in the Entertainment Publisher
vertical; followed by Search

Source: Ad Metrix Mobile June 2010

*
 Marketer Engagement

“We see Tide as the authority in stain removal, and we’ve had stain solutions on our
Web site for some time, and we wanted to extend out of home to reach consumers.
The iPhone application allowed us to do that, offering on-the-go tips at consumers’
fingertips. We’re really looking at the iPhone as an extension of our stain-removal
realm, not focusing on one demographic or another, but trying to make our brand more
accessible. Anyone who’s looking to remove a stain can use the app and find out how
to get it out..”
Amanda Treevy, Tide at Procter & Gamble (Mobile Marketer, November 13,
2009)
Mobile Advertising
Direct Response
Permission Marketing
Sampling Acquisition
Competitions
On-pack

Up-sell
Self Service
Customer Care Retention
mCRM

Mobile Internet
Games Brand Building
Branded Utilities
ACQUISITION

Increased use of mobile internet

Increase in available inventory
Pressure on marketing budgets
New formats – richer experience
Merger & acquisition
Commercial success
RETENTION

Growing consumer acceptance and

expectation
The ‘on-demand’ consumer
Mobile as an access point
Cost effectiveness
BRAND BUILDING

Growth of app stores

Instant interaction with consumers
Consumer expectation
Permanent brand presence
New formats – richer experience
Better understanding of the advantages of mobile
Commercial success
Point of Sales Display Promotions
 Code Promotion – “2D, QR MSFT Tag”

Print Material

Billboards
Packaging

Signs
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 Mobile Couponing & Discounting

Source: MoneyMailer, mDot Networks

Physical & Digital Integration
Newspaper insert
 Loyalty Programs

Promo code under cap

Common Short Code

and instructions on bottle

Web portal management Results

LBS and Social Media
Brand Building – VW GTI Launch

VW †GTi Real Racing app for ‘10 model

$500,000 spend
5m plus downloads
More cars sold
 POS Redemption: “Customer and QR Codes”

Source: http://bit.ly/aB5ECJ
(NeoMedia, Aug. 8, 2010)
Source: http://bit.ly/9ZTqM5 (Target, Aug. 8, 2010)

Source: http://bit.ly/cJ5R0T (Starbucks,

Aug. 8, 2010)

Source: http://bit.ly/d5quIU (bCode,

Aug. 8, 2010)
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 Text 4 Offer
– Local cleaning service sponsored all outgoing
messages for a text to win for Brad Paisley
tickets
– RESULTS: 700 text responded with CLEAN
with over 80% close rate (560+ new
customers)
– Daisy Maids signed up to sponsor all ticket
giveaways through the end of the year
Ur in 2 win! For
more contests &
concerts reply
"JOIN" 2 be an
Insider! This text
powered by Daisy
Maids-reply CLEAN
4 a free home
clean quote.

Source: Hip Cricket

 Consumer Engagement: Results Prior
to Launching Mobile Optimized Experience

OMNITURE SITE CATALYST:

(All Devices)
• 55k visitors (March)
• 340k mobile views
• 450 orders
 Consumer Engagement: Results Post
Launching Mobile Optimized Experience

OMNITURE SITE CATALYST:

(All Devices)
• 117,142k visitors (May)
• 497k mobile views
• 908 orders
6
 Steve Madden: Facebook Like Promotion
ABOUT THE PROMO:
•Steve Madden’s Facebook fan held a competition
between 2 different shoes.
(ex. Caryssa vs. Trinitie shoe).
• The first shoe to 1,000 Facebook “likes” wins and
all Facebook fans are offered a significant discount
on that shoe for 24 hours.

GOALS
•Drive mobile site awareness.
•To make the mobile site more like a social platform
and let people share what they like.

RESULTS
A viral product promotion that:
•Increased mobile site traffic 30% within 24 hours.
•Gained hundreds more Facebook fans within 24
hours.

Steve Madden Mobile Site

Steve Madden Facebook Page

* This campaign was featured in MobileMarketer.com:

http://www.mobilemarketer.com/cms/news/commerce/6567.html
 Foursquare @ Carrabba’s Italian Grill
Carrabba’s currently offers Specials to their Mayors on Foursquare at all 232 locations

Source: Webster Lewin, MMA Forum, 2010

 Redemption Analytics
 6,987 total check-ins

 178 mayors, nationwide

 NY and FL are the most

competitive regions for the
competition of Mayors

 Metrics include:
• Check-ins by time of day
• Gender
• Where people are
coming from
 Location Enabled Ads:
SMS Alerts & Banners

Source: Placecast

Source: Navteq
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 Info and price comparison
(w/application) - “UPC”

Example: Redlaser (www.redlaser.com)

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 Kraft iFood Assistant: Leveraging Mobile
Media

iPhone iPad

http://link.brightcove.com/services/player/bcpid1543292789?bctid=111702111001
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 ESPN: Best of Breed

ESPN is the Clear Leader in Mobile Sports

• #1 Sports Mobile Website: 11M uniques/month
• #1 Sports Alerts Service: 200M+ messages/month
• iPhone / iPad Apps (free and paid) – 11MM downloads
• Mobile TV >1,000 live events/games in 2010
 The Globe Mail Taking Mobile Seriously

• Created dedicated mobile team

to innovate and focus on the
space
• Experimented with advertising
placements and packages
• Increased speed of product
launches
– BlackBerry app
– iPad app

Source: Mobile Innovation Week (2010)

 If you build it they will come

• 503% increase in
mobile traffic in
single year (monthly
page views)
• Mobile revenue
229% of plan
• More than 250K
downloads of
iPhone app

Source: Mobile Innovation Week (2010)

 And they’re just getting started…

• Mobile growth a formal company priority in

coming year
• Increased focus on new products
• Anticipate growth in 2011 to exceed 2010 by
significant margin

Source: Mobile Innovation Week (2010)

Mobile Affects Every Customer Interaction

Source: MMA Mobile & Retail Webinar (June 2010

 Mobile is the New Portable Store

m.bestbuy.com BBY phone app BBY android app

Issues for marketers

Understanding the role of mobile in the

marketing mix
Take advantages of the new contextual benefits
of mobile; need, location & time
Dealing with consumers as individuals
Ensuring relevance

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5 conclusions
1. Mobile is about customer engagement: acquisition,
retention and brand building.
2. Map the customer journey and all the touch points
3. Mobile allows consumers to act at the point of impulse
4. Mobile works best when integrated into campaigns
from the start
5. You will all be mobile marketers

Confidential