Internet World
mobile marketing: internet or “App”?

             Jason Cross
             27th April 2010
Agenda

    •   Market overview


    •   Which route to choose?


    •   Technology – what will the near-future look lik...
Market Overview (UK)
Context


       Mobile marketing is still in its early stages but growing
       rapidly
       - Currently there are 76m...
“The mobile phone will become the primary means
     of accessing the Internet worldwide by the year
     2020.”
         ...
Messaging volumes continue to grow (UK)
    Data revenues are now larger than those from voice

    Billions of Messages s...
Mobile internet usage now significant (40% UUs)
    Strong growth in mobile internet usage driven by fall in data costs

 ...
50% of unique internet users have ordinary phones
    However smartphone owners are heavier users of mobile internet

    ...
Smart-phones are the fastest growing handset type
    Smart phones represent nearly a quarter of the market – but UK still...
Smart phone growth in the UK
     the strong growth of smart-phones continues – taking approx. 3 years for a
     new mobi...
Text and picture msgs reach twice as many UUs
     However messaging is not transactional like mobile internet and apps


...
More msgers in 55+ group than any other
     25-34 age band are the most prolific users of mobile media features

      Nu...
Internet accessed on mobiles by all age groups
     internet sites are increasingly looked at “on the go” across devices

...
Mobile reaches all social segments
     Mobile has greater geo-demographic reach than fixed line internet

     Percentage...
Email accessed on mobiles by all age groups
     Emails is read “on the go”: ensure your emails and links are mobile frien...
Which route to choose?
What IS an “app”?

• An “app” (short for application) is a specially designed program for mobile phones

• Popularised by ...
The great debate: pros and cons of apps
     But will HTML5 do away with need for apps?


                                ...
“Since many apps are never launched after being
      downloaded, judging success purely by the
      number of downloads ...
Internet access is going against the grain
     Less about “snacking”, more about “real web” access

     Q9 For each of t...
Mobile experience
     44% of mobile internet users blame brands for a bad mobile experience

     Q16. When a website doe...
Mobile game makes recycling fun




                                    The Solution:
                                    ...
Marks & Spencer mobile internet site: “Wallace & Gromit”



                                           The Solution:
     ...
Jaguar XJ Launch Mobile Campaign



                                           The Solution:
                             ...
Tesco store finder iPhone app
     Released 5 January 2010




                                                         Ap...
Tesco Clubcard iPhone app
     Released 8 February 2010




      Future plans
      • Launching apps for Blackberry & Nok...
iPhone App                                            ocado
     ‘Ocado on the Go’ m-commerce app




       Homepage of “...
Sears mobile internet site & apps: “Shop Your Way”




 Client: Sears
 Project: Full Mobile Platform    The Solution:
    ...
Starbucks payment card app
     Accepted at 1,020 Starbucks stores




                                    Top up your car...
Base your mobile strategy on consumer need
     …not on the latest fashionable PR fad

     Q22. So thinking of websites t...
Technology – what will the near future
look like?
Pay-Buy-Mobile (mobile wallet – cash & credit)
 •   52 mobile operators, serving over 1.7 billion subscribers, are support...
Use of mobile barcodes to become ubiquitous?

• The technology is already being used across the world
      - “Today, almo...
Augmented Reality examples
     AR combines features such as GPS location and camera with app/web

        Pizza Hut      ...
Augmented Reality examples
     AR combines features such as GPS location and camera with app/web

        IKEA           ...
Thank You
     Any questions?


      jasonc@incentivated.com
           @jcmobile10
       www.incentivated.com




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Internet world mobile marketing 270410

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Presentation given at Internet World, Earl's Court, London on Tuesday 27th April, 2010

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Internet world mobile marketing 270410

  1. 1. Internet World mobile marketing: internet or “App”? Jason Cross 27th April 2010
  2. 2. Agenda • Market overview • Which route to choose? • Technology – what will the near-future look like? 2
  3. 3. Market Overview (UK)
  4. 4. Context Mobile marketing is still in its early stages but growing rapidly - Currently there are 76m mobile devices in use in the UK by 13+ population of 48m - There are more mobiles worldwide (4bn) than any other consumer electronic good except radios (1.5bn TVs, 1.4bn internet PCs etc) - One in ten of all UK internet pages is viewed on a mobile device - As adults we each send an average of six text messages (SMS) per day; a figure which shows no sign of slowing - The vast majority of brands engage in some form of mobile marketing, e.g. CRM texts, apps or a presence on the mobile internet - Few brands are fully leveraging the opportunity on mobile across marketing/loyalty, customer service and m-commerce 4
  5. 5. “The mobile phone will become the primary means of accessing the Internet worldwide by the year 2020.” Pew Internet & American Life Project 5
  6. 6. Messaging volumes continue to grow (UK) Data revenues are now larger than those from voice Billions of Messages sent SMS (Left hand scale) MMS (Right Hand Scale) Growth Rate 100 1.0 90 28% 0.9 80 0.8 70 0.7 60 0.6 50 165% 0.5 40 0.4 30 0.3 20 0.2 10 0.1 0 0.0 2003 2004 2005 2006 2007 2008 2009 Source: OFCOM August 2009. 6
  7. 7. Mobile internet usage now significant (40% UUs) Strong growth in mobile internet usage driven by fall in data costs Subscribers accessing mobile internet 14,000,000 24% year on year 13,000,000 growth between 12,000,000 2008 and 2009 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Source: Comscore 3 month rolling average 7
  8. 8. 50% of unique internet users have ordinary phones However smartphone owners are heavier users of mobile internet Mobile internet access amongst all phone subscribers in the UK (Adults 13+ for the 3 months ended Jan 10) GooglePalm MS 2% 0% RIM 5% 10% Apple 14% Non Smart Phone 50% Smart OS used by Nokia, SonyEricsson etc Symbian 19% Source: ComScore. Note, Operating Systems: Microsoft or Palm or RIM or Symbian or Apple or Google 8
  9. 9. Smart-phones are the fastest growing handset type Smart phones represent nearly a quarter of the market – but UK still dominated by older handsets (which CAN still access the internet) %age of Smart Phones in the UK Breakdown of Smartphone operating systems in the UK (Adults 13+ for the 3 months ended Jan ‘10) (Adults 13+ for the 3 months ended Jan ‘10) Google Palm Microsoft 3% 0% 11% Symbian 46% (5.1m) RIM Non Smart Smart 19% Phone Phone (2.1m) 77% 23% (11m) Apple 21% (2.3m) Smart-phones, of which there are 11m in use in UK, are defined by particular operating systems and have specific platforms for developers Source: ComScore Jan 10 9
  10. 10. Smart phone growth in the UK the strong growth of smart-phones continues – taking approx. 3 years for a new mobile technology to become market dominant Number of Smart Phones subscribers in the UK (000s) (Average number of subs for the 3 month ended) 14,000 +39% 4M Jan 10 12,000 10,000 +41% YOY 8,000 6,000 4,000 2,000 0 Sept 07 Sept 08 Sept 09 Jan 10 Source: ComScore. Note, Operating Systems: Microsoft or Palm or RIM or Symbian or Apple or Google 10
  11. 11. Text and picture msgs reach twice as many UUs However messaging is not transactional like mobile internet and apps • Text (SMS) and picture messaging 50,000 (MMS) are used by 92% and 58% 45,000 respectively 40,000 35,000 • Apps and the mobile internet used 30,000 by 30-35% but growing rapidly 25,000 • Many apps are games and come 20,000 pre-installed 15,000 • Downloading new apps or 10,000 allowing apps to update content or 5,000 transact requires the mobile 0 internet Apps Mobile LBS MMS SMS Internet 11
  12. 12. More msgers in 55+ group than any other 25-34 age band are the most prolific users of mobile media features Number of subscribers in the UK (000s) Index vs population as a whole (Average number of subs for the 3 month ended Jan 10) (Average number of subs for the 3 month ended Jan 10) 13-17 18-24 25-34 35-44 45-54 55+ 13-17 18-24 25-34 35-44 45-54 55+ 14,000 0 100 200 12,000 Apps 10,000 Mobile 8,000 Internet 6,000 LBS 4,000 ` 2,000 MMS 0 Apps Mobile LBS MMS SMS SMS Internet 2.3% of all mobile users visited a mobile internet retail site in last 3 months of 2009 Source: ComScore 12
  13. 13. Internet accessed on mobiles by all age groups internet sites are increasingly looked at “on the go” across devices Percentage of subscribers in each age and sex band who access mobile internet 70% 61% 61% 60% 50% 48% 47% 44% 40% 38% 31% 29% 30% 27% 20% 16% 13% 10% 6% 0% 13-17 18-24 25-34 35-44 45-54 55+ Female Male Data: Three month average ending Jan 10 Country: UK - N= 15,824 mobile phone users 13
  14. 14. Mobile reaches all social segments Mobile has greater geo-demographic reach than fixed line internet Percentage of UK Population take-up 100% 90% 90% 85% 82% 80% 76% 72% 60% 57% 40% 35% 20% 0% AB C1 C2 DE Own a mobile phone Have fixed internet at home Source: Ofcom, 2008 14
  15. 15. Email accessed on mobiles by all age groups Emails is read “on the go”: ensure your emails and links are mobile friendly Percentage Accessed email (work or personal) from mobile 50% 45% 39% 40% 32% 30% 27% 27% 22% 20% 18% 16% 14% 11% 10% 10% 5% 0% 13-17 18-24 25-34 35-44 45-54 55+ Female Male Data: Three month average ending Jan 10 Country: UK - N= 15,824 mobile phone users 15
  16. 16. Which route to choose?
  17. 17. What IS an “app”? • An “app” (short for application) is a specially designed program for mobile phones • Popularised by Apple for their iPhone, these programs have, in fact been around for many years, and are available for most recent phones (e.g. the games that come pre- loaded on your Nokia or Sony-Ericsson, are “apps”). • They range in size and complexity from a simple flashlight to a complex navigational GPS system or a medical reference guide • Some apps, such as those drawing on real-time prices for a retailer, actually require internet access to be fully functional. • The “app” button on your handset window is actually akin to a visual internet bookmark 17
  18. 18. The great debate: pros and cons of apps But will HTML5 do away with need for apps? Most apps need to connect to the Richer experiences not currently web to make them truly useful. served through mobile internet. Mobile web is growing rich interactive functionality and may Users download & install an app, soon render apps obsolete for onto their desktop. everything apart for games. Most affluent target demographic With apps, developers have to and the greatest possible stream consider handset compatibility of revenue, but a tiny minority of across all platforms, possibly people. facing budget constraints. pros cons 18
  19. 19. “Since many apps are never launched after being downloaded, judging success purely by the number of downloads can overstate the success of your mobile objectives. “In order to achieve the highest return from this channel, you must also have an understanding of its adoption and effectiveness over time.” Jascha Kaykas-Wolff, vice president of marketing at Webtrends, New Orleans 19
  20. 20. Internet access is going against the grain Less about “snacking”, more about “real web” access Q9 For each of the following, please indicate the length of your average mobile internet session? Length of internet session? 100% < 5 Mins 5 Mins + 80% 77% 60% 40% 39% 20% 23% 0% Source: Appetite, Yahoo! March 2010 20
  21. 21. Mobile experience 44% of mobile internet users blame brands for a bad mobile experience Q16. When a website doesn’t work on your mobile phone, which of the following do you tend to blame? Reason for bad mobile experience? 60% Brand Network The The Phone (site) Provider User 40% 44% 34% 29% 20% 0% 5% Source: Appetite, Yahoo! March 2010 Base: all those who access internet on mobile (n=1,240) 21
  22. 22. Mobile game makes recycling fun The Solution: A mobile game was developed for Java enabled phones as well as the Apple iPhone. It was promoted via the iTunes App Store, in mobile Advertising and through PR. Business Need: Users could text BIN to 62967 to launch a mobile internet site To extend “Starve your bin”, from where they could RfL’s fully integrated download the game. Functions: campaign, to a younger audience in a fun and The aim is to collect recyclable materials in the • Game engaging way which recycling bin and leave non-recyclable items for • Forward to friend educates users about what the bin bag (the ‘Evil Bin’). • Over 20,000 can and cannot be recycled downloads and encourages them to tell A score leaderboard encourages competition (>12,000 of Java others. and ‘send to a friend’ functionality makes it viral. game) INSPIRATION GUIDE: ACQUISITION beinspired@incentivated.com 22 Public Sector: Recycle for London www.incentivated.com/publicsector
  23. 23. Marks & Spencer mobile internet site: “Wallace & Gromit” The Solution: Offering a family- oriented fun, quirky, inventive and traditionally British twist to the “Christmas wouldn’t be Christmas without…” positioning, Results? we developed a mobile wapsite based 31% of profiles were upon a typically “Heath forwarded to friends/ Robinson”-style family Business Need: Wallace & Gromit 21% CTR from outbound invention to help customers choose what SMS M&S wanted an to ask for from friends and family as a 28% of new visitors innovative mobile Christmas gift. A viral mechanic supplied an email address element, to add to their encouraged the spread of the site to M&S broader Christmas amongst family & friends The long tail – over 5,000 campaign, that would and people attempted to visit the could engage all their Voila – Wallace & Gromit’s Cracking site in the week AFTER customers. Christmas Contraption Christmas! CASE STUDY: Wallace & Gromit’s Cracking Contraption 23 Sector: Retail wag.mands.mobi/demo (on your mobile or in Firefox)
  24. 24. Jaguar XJ Launch Mobile Campaign The Solution: Created a ‘luxury’ mobile experience using the latest mobile technology to showcase XJ and generate leads for test drives and sales The mobile internet site is a beautiful, innovative and creative custom made site, designed for high end phones (based upon analysis of phone types from previous Jaguar mobile advertising). Business Need: It is among the first to start delivering specific Android UE to complement iPhone functions. Building on the success of The site allows prospective Jaguar owners to register via the 2009 mobile advertising their phones for exclusive (mobile-first) updates and campaign in creating invitations to view the XJ. Registration also unlocks quality leads for test exclusive content for your phone. drives that converted to The wapsite is fully integrated into the campaign to Results? efficient sales, Jaguar maximise fully tracked sales opportunities, with leads requested a “luxury” delivered into the central test drive database. www.jaguar.mobi/xj mobile solution for the Site and campaign still The site is designed to allow future re-purposing as a launch of its new XJ destination for mobile advertising (post-launch activity) and live (LA and NY city model. to cope with a long tail of visits. takeovers in NY) CASE STUDY: Jaguar XJ model launch (USA) 24 Sector: Automotive www.jaguar.mobi/xj (on ANY mobile phone)
  25. 25. Tesco store finder iPhone app Released 5 January 2010 App locates products from Locate any Tesco Create a Shopping your shopping list store in the UK List to use in store according to aisle iTunes & Tesco.com 2010 25
  26. 26. Tesco Clubcard iPhone app Released 8 February 2010 Future plans • Launching apps for Blackberry & Nokia (Symbian and Java) • Include scannable vouchers in Tesco Clubcard app • Update Tesco Clubcard app to include the Tesco Credit Card as a scannable payment method This does not work in some stores, no Express stores or self service checkouts 26 iTunes & Tesco.com 2010
  27. 27. iPhone App ocado ‘Ocado on the Go’ m-commerce app Homepage of “On Choose how you wish Add items to the Go” app to find products shopping basket 27
  28. 28. Sears mobile internet site & apps: “Shop Your Way” Client: Sears Project: Full Mobile Platform The Solution: & apps Mobile internet site offers bespoke local information and offers. All information are optimised for mobile phones. Offers include gift cards and mobile vouchers. Business Need: Customers can also shop on the wapsite to pick up in-store. Sears Forerunner in mobile and offers a ‘pick-up in 5 minutes’ named 3rd mobile retailer of guarantee. Other services include a the year in USA (Mobile store locator. Commerce Daily ’10) Mobile internet site Personal Shopper iPhone app: Functions: customers take a photo of an item SMS services on their phone, send to Sears iPhone Applications • Full Mobile platform for Personal Shoppers and receive back mCommerce on all mCommerce, SMS, CRM, other suggested items via email or platforms and iPhone apps phone. THIRD PARTY INSPIRATION GUIDE 28 Sector: Consumer Goods
  29. 29. Starbucks payment card app Accepted at 1,020 Starbucks stores Top up your card Use your Starbucks card via Pay using 2D barcode iPhone scanning 29
  30. 30. Base your mobile strategy on consumer need …not on the latest fashionable PR fad Q22. So thinking of websites that you access on your mobile phone – if there were an app available instead, would you prefer to download the app or would you still prefer to use the website? How do you prefer to access a website on your phone? 60% Don’t mind Via browser Via app 55% 40% 33% 20% 12% 0% Source: Appetite, Yahoo! March 2010 Base: all who access the internet on mobile (n=1,240) 30
  31. 31. Technology – what will the near future look like?
  32. 32. Pay-Buy-Mobile (mobile wallet – cash & credit) • 52 mobile operators, serving over 1.7 billion subscribers, are supporting the Pay-Buy- Mobile (“PBM”) project worldwide. There are live trials and launches in operation right now. • PBM will enable the mobile phone to be used, instead of cash or plastic credit card, at point of sale to enable purchase of goods and services • A Near Field Communication (“NFC”) chip installed on the phone allows the credit card (stored securely within the mobile’s SIM) to be ‘swiped’. The customer confirms their transaction by inputting PIN at POS. • More than one credit or debit card can be stored in the same SIM • Data transfer uses the same secure process as for conventional credit or debit card transactions. 32
  33. 33. Use of mobile barcodes to become ubiquitous? • The technology is already being used across the world - “Today, almost every Japanese mobile is pre-installed with a barcode reader as standard which means that everyone can scan the codes which is one important reason why it is so popular in Japan”* • Three has started embedding a reader in their phones in the UK, Orange plans to follow in early 2010 • Samsung started to embed a reader in all phones in Italy and Belgium • M&S was the first major retailer in the UK to place 2D Barcodes on-pack *Source: http://www.telegraph.co.uk – Mobile phone bar code scanners coming to Britain by Danielle Demetriou in Tokyo 33
  34. 34. Augmented Reality examples AR combines features such as GPS location and camera with app/web Pizza Hut GRAZIA • Launched 8 March 2010 in • iPhone app Australia • Launched March 2010 • GPS store locator • UK edition • Promoting performer How it works: Florence Welch • iPhone camera, GPS and compass are used to display, in situ, Pizza How it works: Hut store locations on top of the real-world view. • Using your iPhone you can take pictures or videos and overlay Florence’s dancing or posing image in different high-fashion outfits. 34
  35. 35. Augmented Reality examples AR combines features such as GPS location and camera with app/web IKEA Rightmove • Application available in-store, on posters, online and via bluetooth • Launched 17 October 2009 stations • UK service • Launched 2 November 2009 at • GPS functionality my.ikea.com • Portable planner for interiors How it works: How it works: • Customers input their current • Uses the phone camera to impose locations to the app and can search home furniture onto your real-time homes by type in the nearby area. home for live product trial 35
  36. 36. Thank You Any questions? jasonc@incentivated.com @jcmobile10 www.incentivated.com 36
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