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Mobile Marketing: Brand in the Hand

Fareena Sultan

Professor of Marketing Marketing Group College of Business Administration Northeastern University, Boston, MA, f.sultan@neu.edu

Presented at WCAI conference Marketing on the Move: Understanding the Impact of Mobile on Consumer Behavior Wharton, UPenn, Philadelphia, PA February 27, 2012

People Use Mobile Phones in Different Situations!

Mobile Marketing
Definition: Mobile Marketing is a set of practices that enable organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network. (MMA 2009) Brand in the Hand: The convergence of mobile handsets and the Internet creates new opportunities for e-commerce and interactive marketing. It is the potential for branding, mobile communications, and e-commerce to be delivered in the pocket, in the car, in the hand. (Sultan and Rohm 2005, Adidas)

Uniqueness of Mobile: Interactivity and Location Specificity!

The Mobile Frontier is Here and Now!


Wireless subscriber connections in the U.S. reached 322.8 Million in 2011 (CTIA) 31% of all U.S. households have only a wireless phone. (CTIA) U.S. smartphone usage is 48% of all mobile phones as of Jan 2012 (Nielsen); 42% (comScore) There were 400 different models of smart phones on the U.S. market, at end of 2011 Android and iOS account for 3 in 4 smartphones in the U.S. (comScore) The annualized U.S. wireless industry total revenue for 2011was $164.6 billion, $55.4 billion coming from data. (CTIA)

U.S. Mobile Internet Usage


By 2015 mobile internet usage in the U.S. will overtake PC web usage.
This means more people will access the web through a mobile phone or a tablet than through a PC! (IDC)

Mobile Ad Revenue
Total U.S. mobile ad revenue = 1.45 Billion Google leads in mobile advertising revenue with $750 million in 2011 U.S. Revenue from ad-supported mobile content was $284 million in 2011(20% of all mobile content revenue) Projected to grow to $1.08 billion in 2015 Mobile advertising expected to increase significantly especially for geo-targeting/location-based marketing
(Source: eMarketer)

M-Commerce is Here!
U.S. M-Commerce was worth $6.7 Billion in 2011 - Includes travel and event ticket sales, but excludes digital downloads (eMarketer) U.S. M-Commerce will grow from 2% of all e-Commerce sales in 2011 to 7% in 2015 (Forrester Research) U.S. Mobile Game Revenue was $1.53 billion in 2011 (SNL Kagan)

U.S. Mobile Users Behavior


In 2011
An average U.S. adult spent 1 hour 5 minutes per day on their mobile phone, more than on reading magazines and newspapers combined (eMarketer) 5.2% of all Internet traffic in the U.S. came from a mobile phone (comScore)

Of U.S. mobile subscribers:


74% sent a text message 48% downloaded an app 47% used mobile Internet 35% accessed social networking site via a mobile phone (comScore)
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U.S. Mobile Shopping Behavior


In 2011,14.6% of all online shopping traffic in U.S. came from a mobile device, double from 2010 (IBM). U.S. Mobile Shoppers Activity:
38% compared prices online while shopping in a store 38% browsed for products through mobile sites or apps 32% read online reviews for products 24% searched for online coupons on their phones 22% of smartphone owners have scanned a barcode to find additional product information. 18% used GPS capability to locate a store 22% purchased merchandise or mobile content
(Nielsen, Q3 2011 Study, past 30 days behavior)
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Global Mobile Penetration: Growth is Greatest in Emerging Markets


Global Mobile Phone Users = 6 Billion, end of 2011 Global Mobile Penetration almost 90% (International Telecomm Union) Offers Great Potential for Global Brands! e.g. Global Mobile App Revenue in 2011 was $7.3 Billion (Canalys)

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Points to Ponder
Drivers of Brand in the Hand Mobile Marketing? Barriers to integration of mobile into crossplatform Marketing Strategies? The time to act is now!

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