Dilemma of pervasive connectivity

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Consumer are pervasively connected to everyone and everything through the mobile device. It is brain draining, and a constant distraction; it is also enlightening and empowering. Here I present some Ogilvy research on how consumers use the mobile device while shopping to help decision making.

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Dilemma of pervasive connectivity

  1. 1. Thedilemmaof pervasiveconnectivity IMMAP Barney Loehnis August 2011 @barneylo Head of Digital, Ogilvy Asia Pacific Chairman, Asia Pacific, MMA 1Monday, 29 August 2011Without 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 preparedLast 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 engageconsumersI started off by talking about the the last dawn of the digital revolution...... and about the beginning of the new revolution -one of Augmented Humanitytoday I want to talk about something slightly different. I want to start off with our consumerWe know that the consumer is ahead of agencies and clients in terms of their behaviors and use of technologythis latest shift, this new dawn of augmented humanity is fascinating and has deep implications for building brandsthis 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 mobileThe dilemma of pervasive connectivity is this1. weʼve been willing this to happen for years, but it only makes our life more complicated2. Pervasive connectivity was something that was meant to make us smart, but it might just be make us dumb3. 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 afuture 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 havocThe 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 brilliantlycrafted communications and utilities that marketers conjure up
  2. 2. Pervasive Connectivity Augmented Humanity Mobile First 2Monday, 29 August 2011this is the end of the digital revolutionWe 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 experiencesThink about the mobile platform as the primary platform for developmentALSO - 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
  3. 3. Mobile is the narrative “thread” of communicationsMonday, 29 August 2011The “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 relatedIt provides connectedness from one moment to the next - for me a sort of connectedness between emotional connectionsIt 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 communicationsand 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 “redthread” 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.
  4. 4. Mobile   Internet   Users Desktop  Internet   Users by 2014 More  people  will  access  the   internet  via  a  mobile  device  than   a  PC Source: Morgan Stanley ResearchMonday, 29 August 201159% in INdia44% in indonesia30% in China
  5. 5. 5Monday, 29 August 2011End 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 spenthead 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?
  6. 6. Monday, 29 August 2011This 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 pageviews.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 onother peoples 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 activitieson social media and other web sites.
  7. 7. How  do  mobile   devices  impact   shopping? 7Monday, 29 August 2011
  8. 8. TescoMonday, 29 August 2011
  9. 9. 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.Monday, 29 August 2011HOT DATA FROM
  10. 10. 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 40% among smartphone owners SEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT SEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore United States, United Kingdom, SingaporeMonday, 29 August 2011 Singapore 8 Opinion Early Late Innovators Leaders Majority Majority Laggards 84% 83% 69% 54% 20% 75% among smartphone owners SEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore
  11. 11. behavior among smartphone users. Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore 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% 40% among smartphone owners 62% among smartphone owners 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, United States, United Kingdom, Singapore United States, United Kingdom, SingaporeMonday, 29 August 2011 10 9
  12. 12. Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore 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 Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore United States, United Kingdom, SingaporeMonday, 29 August 2011 Singapore 12 Opinion Early Late Innovators Leaders Majority Majority Laggards 83% 69% 59% 47% 34% LOOKED AT A PRODUCT IN-STORE AND THEN ORDERED IT ONLINE
  13. 13. Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore 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 Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore United States, United Kingdom, Singapore United States, United Kingdom, SingaporeMonday, 29 August 2011 Singapore 14 Opinion Early Late Innovators Leaders Majority Majority Laggards 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
  14. 14. “Customers are tired of bargain hunting, tired of having to give the emotional benefits of purchasing away.” seth farbman Chief Marketing Officer, Gap 14Monday, 29 August 2011
  15. 15. INTERVIEWS 15Monday, 29 August 2011
  16. 16. Old  Marketplace  Rules,   New  Shopper  ToolsMonday, 29 August 2011
  17. 17. What  is  the   Shopper   Journey? 17Monday, 29 August 2011
  18. 18. 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 productsMonday, 29 August 2011
  19. 19. 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 ResearchMonday, 29 August 2011Shopping listEpicurious
  20. 20. The Shopping Journey - Research On- the-go A plethora of services available Google Product Search Scoutmob AppMonday, 29 August 2011On average, 27% of all Yelp searches come from their iPhone App. In May 2010 over half a million calls were made to localbusinesses directly from the Yelp iPhone App and nearly one million people generated point-to-point directions to a local businessfrom 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. Thisisnt the Google Maps Store View we heard about earlier, but an extension to Google Product Search. When logging on to Google from amobile, location aware device, Product Search can use that data to query stores in the area and check if the products the consumeris 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 aninteractive map that shows users sales and promotions near where they are shopping. The app offers a variety of filters to customisethe 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 ofa box emitting a special-pitch sound thats inaudible to humans but that your phone can hear. This allows for the consumer - which does noteven 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 purposeand may be simpler for retailers to instal. Woot, the online coupons system, developed Scoutmob - the mobile version of Woot, but reachinga much wider scale of retailers due to the local nature of the service.
  21. 21. 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 ratesMonday, 29 August 2011
  22. 22. The Shopping Journey - Consume Numerous possibilities - little data Consum e Extend the Brand Platforms Product Nespresso Subway, iPhone App Usage - HackMonday, 29 August 2011
  23. 23. The Shopping Journey - Share Share From twits to video review Twitter Video Consumer on Kitkat Reviews Deisel Storecam / Facebook Status UpdatesMonday, 29 August 2011 - 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)
  24. 24. A digital retail experience SubheadMonday, 29 August 2011
  25. 25. 25Monday, 29 August 2011
  26. 26. My eight areas of further exploration.... Isobar1. Shoppers are on a constant journey - deliver throughout2. Location! Influence preference & trigger purchase3. Warning: shoppers come armed. Give transparency they crave4. 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 mass8. Earn the intimacy of the device.Monday, 29 August 2011
  27. 27. Thank you. For a copy of Ogilvy’s research on Mobile Shoppers: @barneylo Questions? 27Monday, 29 August 2011

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