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Mobile marketingpresentation pdf

  1. 1. Mobile Marketing A “Marketing in Your Pocket” Presentation from Second Wind Desktop Learning10/15/2009 © Second Wind Ltd. 1
  2. 2. Imagine this….10/15/2009 © Second Wind Ltd. 2
  3. 3. Imagine this….10/15/2009 © Second Wind Ltd. 3
  4. 4. Buy one chicken sandwich, get Buy one chicken sandwich, get Imagine this…. the second free! McDonald’s at the second free! McDonald’s at Freeway Mall Food Court. Next Freeway Mall Food Court. Next exit 2 miles ahead on the right. exit 2 miles ahead on the right.10/15/2009 © Second Wind Ltd. 4
  5. 5. Imagine this….10/15/2009 © Second Wind Ltd. 5
  6. 6. Imagine this….10/15/2009 © Second Wind Ltd. 6
  7. 7. Imagine this….10/15/2009 © Second Wind Ltd. 7
  8. 8. Hi Liz - We just stocked Imagine this…. Hi Liz - We just stocked new fall sweaters new fall sweaters in size 10. Eight great in size 10. Eight great colors. Save 20%! colors. Save 20%!10/15/2009 © Second Wind Ltd. 8
  9. 9. Imagine this….10/15/2009 © Second Wind Ltd. 9
  10. 10. Imagine this…. Enter our Sweepstakes for Enter our Sweepstakes for a chance to win a $100 a chance to win a $100 gift card! gift card! Text code 14426 to enter now! Text code 14426 to enter now!10/15/2009 © Second Wind Ltd. 10
  11. 11. Imagine this….10/15/2009 © Second Wind Ltd. 11
  12. 12. Imagine this…. Hi Liz - it’s Kate. @ East entrz. Want 2 du lunch?10/15/2009 © Second Wind Ltd. 12
  13. 13. Imagine This…. Hi Kate. Meet U @ McD’s. 5 min.?10/15/2009 © Second Wind Ltd. 13
  14. 14. Imagine This…. Hi Kate. Meet U @ McD’s. 5 min.? Buy One Get One! Order any chicken sandwich, get second one FREE!10/15/2009 © Second Wind Ltd. 14
  15. 15. Mobile Marketing Agenda Background The Mobile Web, Mobile Advertising, SMS Text, Location Based Advertising, Social Networking Best Practices Case Studies Conclusions10/15/2009 © Second Wind Ltd. 15
  16. 16. Mobile Marketing Rapidly growing, personal and portable, but must be permission-based10/15/2009 © Second Wind Ltd. 16
  17. 17. Mobile Marketing The third screen Goes where you go Highly personal Ubiquitous Targeted Measurable10/15/2009 © Second Wind Ltd. 17
  18. 18. Mobile Marketing Mobile is still only a small fraction of total marketing budgets, at 1.8% Average mobile marketing budgets will increase 26% in 200910/15/2009 © Second Wind Ltd. 18
  19. 19. Early Adopters Are Testing It: The MMA found that about half of brands and advertising agencies polled were doing some type of mobile marketing: 66% running SMS text campaigns 53% have mobile website 33% testing mobile email marketing10/15/2009 © Second Wind Ltd. 19
  20. 20. Your Clients Like Mobile Brands are more comfortable with mobile marketing than agencies. About half of agencies said they viewed mobile marketing as still being part of experimental spending, compared to 36% of brands.10/15/2009 © Second Wind Ltd. 20
  21. 21. Mobile Marketing Works: March 2008 Nielsen research: Half of all US mobile phone subscribers (58 million people), had seen ads on their phones in the past 30 days. About half of those 58 million said they responded to a mobile ad in some way.10/15/2009 © Second Wind Ltd. 21
  22. 22. Mobile Usage  In September 2008, Nielsen Mobile reported that the typical U.S. mobile subscriber sent and received more text messages (SMS) than phone calls.  According to the Kelsey Group, 54.5 million people in the U.S. have web-capable phones.  CSS Insight reports one-third of young adults access Facebook or Twitter via mobile phones.  In North America, 69% of those using email on mobile phones use it daily – worldwide that number is only 43%.10/15/2009 © Second Wind Ltd. 22
  23. 23. Buying Habits of Mobile Users  A 2008 Nielsen Mobile poll found that only 9.2 million US mobile subscribers purchased goods or services with their handsets.  Consumers are starting to grow comfortable with the idea of m-commerce.  According to a poll conducted by Harris Interactive, 71% of US adults felt that it was safe to make a purchase via mobile phone.  BUT… An Internet Retailer survey found that only 7% of online retailers had m-commerce sites in late 2008.10/15/2009 © Second Wind Ltd. 23
  24. 24. Mobile Marketing Reaches out to the end user’s most personal device. Messages delivered to mobile devices must have purpose and reason without being intrusive. Deliver customized, highly relevant advertising to users at point of purchase.10/15/2009 © Second Wind Ltd. 24
  25. 25. 10/15/2009 © Second Wind Ltd. 25
  26. 26. Mobile Websites  Number of websites geared for mobile devices will likely increase dramatically in the next few years.  Some top mobile websites include, Google, Twitter, Flickr, Moviefone, Answers, etc.  eMarketer reports 26.3% of North American mobile subscribers regularly use the Mobile Web, and…  Predicts Mobile Internet penetration will grow to 43% of phone subscribers by 2013.10/15/2009 © Second Wind Ltd. 26
  27. 27. Top 10 Brands and Mobile10/15/2009 © Second Wind Ltd. 27
  28. 28. The Mobile Web  Mobile web sites are the foundation for mobile advertising campaigns.  For example, a mobile ad banner campaign will drive traffic to a landing page with details of a specific promotion such as a brand awareness-generating sweepstakes.10/15/2009 © Second Wind Ltd. 28
  29. 29. The Mobile Web  Many leading brands do not have a mobile presence.  Regular websites are not tailored to mobile consumers.  MediaPost Sept. 2009 – Just 1 in 3 brands has a usable, easily accessible, mobile optimized site.  Garbled, nonfunctioning menus and poor navigation equal a bad mobile consumer experience.10/15/2009 © Second Wind Ltd. 29
  30. 30. Purina Mobile Page Typical brand mobile page10/15/2009 © Second Wind Ltd. 30
  31. 31. APP10/15/2009 © Second Wind Ltd. 31
  32. 32. Toyota Mobile Experience Customized user experience10/15/2009 © Second Wind Ltd. 32
  33. 33. 10/15/2009 © Second Wind Ltd. 33
  34. 34. SMS Text  What is SMS? “Short Messaging Service”  Simplest form of mobile marketing: 160 character message.  Useful for entering sweepstakes, receiving sponsored news, or delivering offers.  More than 160 million people in the U.S. are on a text plan.  Average age of a "texter" is 38.10/15/2009 © Second Wind Ltd. 34
  35. 35. SMS Text - Shortcodes  Short codes let mobile subscribers send SMS to a short and easy-to remember number.  Telecommunications and Internet Association (CTIA) reserved a set of five- and six-digit numbers that can be assigned as short codes in mobile advertising campaigns.  Text messaging platform is a more efficient, automated way to hold a sweepstakes.10/15/2009 © Second Wind Ltd. 35
  36. 36. SMS Text - Shortcodes  Anheuser-Busch tested a regional text-based sweepstakes in July  Text BUD to 839863 to enter the "Gas Up & Go" sweepstakes  Winners get free gas for a year  Campaign boosted Anheuser-Busch awareness, and (they hope) sold more beer10/15/2009 © Second Wind Ltd. 36
  37. 37. Is SMS effective?  16 percent of text messagers nationwide see some form of text message advertising every month (Nielsen’s second-quarter 2008 Mobile Advertising Report).  Teens are the most likely to engage with SMS advertising —35 percent of teen texters say they see some form of text message advertising every month.  African-American and Hispanic mobile subscribers are also more likely to engage.  45 percent of those who saw SMS advertising say they have responded. (Neilsen White Paper: The Short Code Marketing Opportunity, © Second Wind Ltd. 37
  38. 38. Mobile Advertising  Subscribers with web-capable phones can receive highly targeted banner ads; i.e., ads on mobile content sites such as; redirected to mobile websites  Mobile advertising is a tiny segment of overall advertising spending.  eMarketer Sept. 2009: Mobile marketing ad spending will reach 416 million by year-end; could top 1.56 billion by 201310/15/2009 © Second Wind Ltd. 38
  39. 39. Wiley Publishing Case Study Publisher of "For Dummies" books used mobile banners over 3 months Delivered more than 1.3 million impressions at 1.4% CTR FOUR TIMES that of traditional internet banner ads10/15/2009 © Second Wind Ltd. 39
  40. 40. Mobile Ads must be: Useful Timely Functional Entertaining Interactive… …To the User!10/15/2009 © Second Wind Ltd. 40
  41. 41. Effectiveness of Mobile Ads  Measurement based on click-through rate (CTR).  Mobile ads drive more consumers to click on ads than on the wired Internet.  A $10,000 media buy at a $10 CPM = approx. 1 million impressions.  Based on the average CTR for online ads (as reported by comScore), 0.01 percent of consumers will click on an Internet ad for a total of 1,000 engaged consumers.  For the same 1 million impressions in mobile, at a CTR of .05 percent, you engage with 5,000 consumers.10/15/2009 © Second Wind Ltd. 41
  42. 42. Location Based Advertising  Allows marketers to reach a specific target audience based on users’ geographic locations  Gives advertisers better opportunities to target and engage  Offers compelling calls-to-action, and a new way for brands to engage customers that is only possible on mobile10/15/2009 © Second Wind Ltd. 42
  43. 43. Location-based Advertising  Retailers say 96% of customers come to the store with mobile phones in hand. In future, phones could flash a retailer’s daily offers  Ability to improve local directory assistance or localize the contents of an old format such as the Sunday circular  Twitter-based directories are launching, including (Twitter-based local yellow pages) and LocalTweeps (local directory service now in beta, keyed to cities and zip codes)10/15/2009 © Second Wind Ltd. 43
  44. 44. Example:  Naked Pizza of New Orleans - Healthful pizza shop  Tested a Twitter-fueled campaign for generating local traffic in April 2009.  Targeting people within a 3-mile store radius, they tweeted offers and updates, then tracked every call to see where their orders came from.  Their exclusive-to-Twitter promo brought in 15% of a single days business.  Now put their Twitter address (@NAKEDpizza) on billboards and signage, and are working with Twitter to beta-test new business applications.10/15/2009 © Second Wind Ltd. 44
  45. 45. Example Berry Chill - Chicago-based yogurt chain “Sweet Tweets" promo offers go out to stores registered followers Campaign gained 700 followers in one month People standing in line at store attracts more new customers10/15/2009 © Second Wind Ltd. 45
  46. 46. Mobile Social Networking  In January 2009 alone, comScore reported more than 27 million people accessed a social networking site from their mobile phones.  A third of young adults are regularly accessing Facebook and Twitter from their mobile phones.  By creating a branded Facebook page, agencies can help clients connect with consumers, giving them a chance to engage with brands they care about as well as other “fans,” all through mobile.10/15/2009 © Second Wind Ltd. 46
  47. 47. Mobile Marketing Best Practices 6 Cs of Mobile Marketing10/15/2009 © Second Wind Ltd. 47
  48. 48. Mobile Marketing Best Practices  Choice. Consumers must “opt-in” to a mobile marketing program and have a right to privacy, with a clear “opt-out.”  Control. Consumers should have control of when and how they receive marketing messages on mobile phones – Pull, not push messaging.  Customization. Marketing should be tailored to the interests of consumers. Restrict messages to those categories specifically requested.10/15/2009 © Second Wind Ltd. 48
  49. 49. Mobile Marketing Best Practices  Consideration. Consumers must receive or be offered something of perceived value in return for receiving the communication (product and service enhancements, entry into competitions, etc.).  Constraint. Marketers must effectively manage and limit mobile messaging programs to a reasonable number of programs.  Confidentiality. Commitment to not share consumer information with non-affiliated third-parties.10/15/2009 © Second Wind Ltd. 49
  50. 50. Mobile Marketing Best Practices  Gaining a customer’s permission to send ads/promotions from brands unlocks the largest, most interactive marketing/advertising channel  Delivering ads based on a customer’s preference creates relevance that drives increased response rates and customer satisfaction  Marketers and operators have a responsibility to ensure that mobile advertising does not morph into another “spam machine” like email10/15/2009 © Second Wind Ltd. 50
  51. 51. Mobile Budgeting  Analyze current consumer tactics  Does your client already have a mobile web site? If not, include cost in your mobile budget.  How are you going to drive traffic to your mobile campaign? May include mobile advertising, traditional media, your website, signage, etc.  Your first mobile effort will cost more. Once you have consumers opted into your mobile list, the cost of subsequent programs goes down.10/15/2009 © Second Wind Ltd. 51
  52. 52. Case Study  Consumers text to join IKEA Mobile.  Program advertised in-store, FSI, radio, email blasts and store web page.  Members of IKEA Mobile are sent Member-Exclusive secure SMS offers up to twice monthly.  Secure codes sent via plain-text SMS, so there is near- 100% coverage on mobile phones. Over 1 trillion codes per offer, in effect delivering “bar codes” to mobile phones without using bar codes.  Customers are driven by attractive offers to visit the store to redeem and make purchases.10/15/2009 © Second Wind Ltd. 52
  53. 53. Case Study  In store, customers input their code at touch-screen interactive kiosks, select the desired offer and print a paper coupon to use at Check-Out  Kiosks are located in prominent in-store locations: main entrance area, IKEA Restaurant  Scan and redemption data are person-specific, location- specific and offer-specific, and accessible in real-time online  Examples: 20% off special products, or class of products, restaurant food offers, $X off certain purchase size, etc.10/15/2009 © Second Wind Ltd. 53
  54. 54. Case Study  Mobile coupon campaigns are changing behavior; i.e., actually driving consumers into the store and increasing revenues.  Touch-screen interactions provide a timely opportunity to up-sell and cross-sell customers on relevant, personally- profiled additional offers  Customers that used mobile coupons spend 50%-150% more on average than customers that have not scanned  Over 23,000 members joined IKEA Mobile at the Seattle location alone10/15/2009 © Second Wind Ltd. 54
  55. 55. Case Study  J. C. Penney Co. Inc. testing brand new 2D bar code coupon program  Customers download and carry coupons on their mobile phones that can be scanned directly from the phones display screen at the point of sale  Cellfire is managing the initiative; claims it is a first-of- its-kind program for a U.S. retailer.  Cellfire is a mobile coupon and discount offer service that lets consumers access deals from brand-name merchants nationwide via their mobile phones10/15/2009 © Second Wind Ltd. 55
  56. 56. QR codes vs. Bar Codes:10/15/2009 © Second Wind Ltd. 56
  57. 57. Case Study  2D mobile coupons are a convenient way for consumers to receive and redeem coupons at point of purchase  Mobile coupons are immediate and put the consumer in control  New imaging scanners from Motorola capable of reading 2D bar-code coupons have been deployed at point-of-sale registers in 16 JCPenney stores in the Houston metro area10/15/2009 © Second Wind Ltd. 57
  58. 58. Case Study  JCPenney makes coupons available in newspaper circulars, postcard mailers to consumers in its database, email communication and now mobile  Consumers don’t have to cut out a coupon or download it and print it  Purchase can become more spontaneous  JCPenney’s digital efforts primarily target women 25- 39, extending to consumers in their mid-40s  JCPenney is in the process of integrating 2D bar codes into its JCP Rewards loyalty program10/15/2009 © Second Wind Ltd. 58
  59. 59. Case Study  Consumers who download the Cellfire/JCPenney application have access to the same coupons on their mobile phones as they would receive from JCPenney by mail.10/15/2009 © Second Wind Ltd. 59
  60. 60. Case Study  Burger King sponsoring CBS College Sports’ on-air polls and quizzes urging viewers to text in to engage with the network  CBS hired Txtstation to power on-air SMS voting platform, currently running during all CBS-televised NCAA football games.  Questions come on screen two or three times per game. Fans choose between responses, each of which has a dedicated short code, and text in their preferred response to the short code 55333.10/15/2009 © Second Wind Ltd. 60
  61. 61. Case Study  Burger King’s logo appears on-screen with the SMS poll graphic  As fans text in to the on-air short code, Txtstation updates results in real time while the BK poll graphic is on-screen, giving viewers live results to the poll  Provides instant gratification, engagement and brand awareness  Keeps viewers “in seats,” unlike TV ads when they may leave the room, talk or otherwise ignore ads10/15/2009 © Second Wind Ltd. 61
  62. 62. Case Study  Jiffy Lube, Los Angeles, launched a geotargeted mobile ad campaign offering coupons for oil changes in March 2009  Mobile ad initiative was part of a larger multichannel campaign and achieved a 0.2 percent response rate, outperforming its Web counterpart  Twenty-eight percent of respondents texted in their ZIP code for a list of oil-change stores closest to them  More than 200 coupons were redeemed at Los Angeles stores, equating to around 10 percent of original respondents10/15/2009 © Second Wind Ltd. 62
  63. 63. Mobile Marketing: What’s Next  Text a code to get more content. Example: Sports  Illustrated Swimsuit Issue might offer a text short  code for more pictures sent to your phone  Subscribers will be able to make purchases and put  the bill on their monthly tab, moving beyond  purchases of ringtones, wallpaper and game  applications  Mobile coupons that can be scanned in stores,  directly from your phone10/15/2009 © Second Wind Ltd. 63
  64. 64. Conclusions  Mobile is still in its experimental stage – ripe for innovation  Users want a customized mobile experience, not exactly what the “desktop web” offers  Mobile connects to users in a different context (place, time, network speed, interface, mindset); behavior and response will be different, too10/15/2009 © Second Wind Ltd. 64
  65. 65. Conclusions  Mobile can offer smarter, simpler and more cost-effective digital advertising solutions  Integrated strategies cover multiple screens, platforms and devices  Marketers’ goals should be to provide their audiences with empowering, engaging and entertaining mobile experiences on-the-go10/15/2009 © Second Wind Ltd. 65
  66. 66. Conclusions  Mobile advertising helps agencies and their clients target customers and prospects more directly through an entirely new channel  Mobile advertising is another sign of the shift of ad budgets from traditional marketing media, such as TV and radio, to more direct formats, such as direct mail, email and the Internet  Agencies and their clients can take mobile marketing as far as the technology will allow  Being at the front of mobile with ideas that work for your clients is just another way your agency can strengthen your strategic partnerships and client relationships10/15/2009 © Second Wind Ltd. 66
  67. 67. Resources Mobile Marketing Association Mobile Marketer Mobile Marketer – Classic Guide to Mobile Advertising10/15/2009 © Second Wind Ltd. 67
  68. 68. Thank you for joining Second Wind for “Marketing in Your Pocket: Mobile Marketing” Please join us next week for “Mobile Apps” Oct. 22 at 2:00 pm10/15/2009 © Second Wind Ltd. 68
  69. 69. For more information about Second Wind seminars, desktop learning, publications, DVDs and services, or to learn about Second Wind membership, please visit: www.secondwindonline.com10/15/2009 © Second Wind Ltd. 69