Mobile Distribution - No it's not Billboards and Neon Vacancy Signs

Mobile DistributionNo, It’s Not Billboards andNeon Vacancy Signs
Robert Cole
Founder, RockCheetah
rockcheetah.com/blog

Presentation Overview
Why Mobile is Important
Why Mobile is Challenging
Why Mobile Travel is Complicated
Mobile Web v. Mobile Apps
Mobile Business Considerations
Mobile Development Considerations
Location Based Services
Disruptive Mobile Innovations
June 23, 2010 - Orlando, Florida
HITEC 2010 - Mobile Distribution
Robert Cole | RockCheetah · Page 2

In the Good Ol’ Days…
Billboards
Vacancy Signs
Mobile Distribution Was Pretty Much Limited to:
and
Image Credit: BGLewandowski on Flickr | 28flavors on YouTube

Then, the Internet Changed Everything
Robert Cole | RockCheetah · 4
Image Credit: Thomas Hawk on Flickr

15 Years Later, Mobile Changes It All Again

Why Mobile is Important
Extends Most Important Web Attributes
Device Follows the User – Mobile
GPS Provides Geographic Context - Local
Supports Many Forms of Communication – Social
Devices are Typically Not Shared – Personal
Smartphones Extends the Senses
Sight (Camera)
Sound (Microphone)
Feeling (Touch-screen)
Balance (Accelerometer)

Google’s Perspective on Mobile
Google’s New Credo:
Mobile First

Why Mobile Can Not Be Ignored
Smartphone use is on the rise.
Mobile web adoption is ramping up 8x faster than Internet in the mid-90s.
In the Travel vertical, purchase intent on Mobile ads is 5x higher than on desktop ads.
Mobile Travel bookings are projected to grow 700% in 2 years.
$20M
2008
$160M
2010 Projection
Data Sources: : Forrester, 2009. Google Internal Data, February 2010. InsightExpress, February 2010. PhoCusWright, January 2010

New Devices Impact Mobile Hotel Queries
Android Nexus One
Significant Growth in 3 Years
Moto Droid & Eris
Google Mobile “Hotel” Category Query Growth
Device Launches
Android myTouch
iPhone 3GS
Blackberry Storm
Android G1
Palm Pre
iPhone 3G
iPhone
Data Source: Google Internal Data

Mobile Advertising & Booking is Real
Google / Vegas.com Case Study
Click-through rates may be a lot higher for mobile ads than desktop
Impressive returns on the iPhone with campaign CTR nearing 20%
Google Travel Booking Recommendations
Purchase intent on Mobile Travel ads is 5x Higher than desktop ads
Target efforts
Drive-up bookings
Incremental night stays
Last minute flight changes
Highlight promotions
Motivate consumers to interact and spend with your brand

Need More Convincing?
Apps Work Well for Highly Engaged Users
25% of iPhone & Android Users 2 hours per day on Apps
Booking Functionality is Expected by Consumers
Support Branded Assets by Driving Downloads & Usage
Let Travelers Use The Phone!
Adding Phone Number to Ad Text Increased CTR5-30%!
Google Mobile Calls 22% More Likely to be Relevant & 31% More Likely to Result in Bookingthan calls other lead sources
1 Out of 3 Mobile Searches Has ‘Local Intent’

Mobile Travel Booking Is Different
Booking Window is Shorter. More Last Minute
Search Queries are 2-3 Words
Requires Create Mobile Landing Pages for SEO
Separate Campaigns Required for Mobile
Must Reflect Different User Behaviors
Geo-location is Important, but not Everything
Time of User Access is Important
Lunch-time / Evening

Travel Process is More Complex -Impacts Traveler Goals & Perceptions
Guest’s
Perception of Web/Mobile
Travel Experience
Source: RockCheetah Proprietary , Seven-Step Travel Process

Guest Relationship is More Complex -Multiple Traveler Personas
Individual Maintains Same Demographic, but
Purpose of Travel Dictates Decision Processes
Multiple Traveler Personas Exist
Business Meeting
Industry Conference
Family Vacation
Romantic Getaway
Weekend with College Friends

Hotel Distribution Channels Shifting

Please, Let Them Book the Reservation
Data Source: iPerceptions 4Q09 Hospitality and Tourism Industry Report

Mobile Challenges – Fragmentation
Siloed Operating Systems
Apple iOS v. Google Android v. BlackberryOS v. Symbian 3 v. Windows Phone
Different Hardware Capabilities
Varied Power, Features & Screen Sizes
Mobile Web v. Apps
Provide Different User Experiences
Politics v. Rich Internet Applications
Flash / Silverlight / HTML 5 & H.264

Technology is More Complex - Welcome to the Splinternet*
Golden Age of the Web Ending
Information Sharing Was Based on Compatible Formats
Now, the Age of Walled Gardens
Content Controlled by Platform Owner
Content Hidden From Search Engines by Passwords
Apple – iStore
Excludes Flash Applications
Bars Google AdMob Advertising
Facebook – Friends & Likes
Social Graph Exists Only After Facebook Login
*Term “Splinternet” coined by Josh Bernoff, Forrester Research Senior VP - Idea Development

SplinternetPlatform Characteristics
Source: Forrester Research

SplinternetAd & Experience Characteristics
Source: Forrester Research

Operating System EvolutionInnovation or Fragmentation?
Android – One Year Old / 4 Different Versions
Version 1.5 – 24.9% Share
Version 1.6 – 25.1%
Version 2.1 – 50.0%
Version 2.2 – Available for Nexus One
Google Approach
“Google treats partners equally, but will not slow the rate of innovation so weaker players can keep up”
“By constantly raising the bar, both in terms of reference devices and software, Google aims to keep innovating and drive that innovation as a differentiator”
“Android isn't a summer camp for handset vendors and not everyone gets a trophy for showing up”
Source: Michael Gartenberg Altimeter Group

Mobile Web Benefits
Open Standards
Cross Platform Functionality
No Proprietary APIs
Cross-Application Integration
No 3rd Party App Stores
No Revenue Sharing

Mobile App Benefits
More Robust GUI Options
Does Not Require Online Access
Access to Phone “Senses” & Native Data
App Store Marketing Opportunities
Clear Monetization Model

4P’s of Mobile Strategy Development
People
Who is the Target User?
Purpose
What Do the Users Want to Accomplish?
Platform
What Types of Devices Are They Using?
Process
Define Most Efficient Navigation & Workflow

Most Important Questions:
What Are Your Mobile Objectives?
Bookings
Ancillary Revenue
Customer Service
How Can You Create Value For the Guest?
Save Time?
Save Money?
Enhance Experience?

Mobile Apps – Business Considerations
Business Models
Applications – Technology (Revenue Share with App Store)
Subscriptions – Unique Content (Rev Share with App Store)
Publishing – Advertising (Share Revenue with Ad Network)
Monetization Methods
Free
Freemium – “Light” Version Free, “Deluxe” Version is Paid
Full Retail Price

Mobile Apps – Marketing Considerations
Perfect World: Volume Drivers
Good Device
Good Network
Good Browser
Promotion
Must Be Differentiated – Provide Unique Benefits
Greatest Challenges
Breaking Through Clutter – Must be Found
Maintaining Engagement / Avoiding Deletion

iStore Page of Popular Travel Apps
Top 20 Travel Apps
Google Earth
Free Translator
Urbanspoon
Yelp
MapQuest 4 Mobile
Trapster speed trap alerts
USA TODAY
KAYAK Flight, Hotel Search
Free Wi-Fi Finder
AppBox Lite
OpenTable
FREE Spanish Tutor
Currency
foursquare
Southwest Airlines
USA TODAY for iPad
MotionX GPS Drive
OpenTable for iPad
Cheap Gas!
CheckPlease Lite - Tip Calculator

Mobile Development Considerations
REMEMBER
Your Website IS NOT a Mobile Site
MUST
Provide Information Quickly
Focus on Specific Tasks
Direct Path to Data
Leverage Device Features

Mobile Functionality – Best Practices
One-click Driving Directions
Know Phone Location / Know Destination
Click to Talk
Provide Phone Number in Mobile Ads
Include Context Appropriate Phone Numbers
Integrate Social Networks
Help Customers Promote Your Brand / Location
Negotiate Development Costs Aggressively
Restaurant Group: 23 Sites = $8,000 (Orig. $37K)

Mobile Promos: Ground Rules Apply
Protect Guest Privacy
Opt-In for Promotional Message Delivery
Are Offers Relevant?
Popular or High Demand Product/Features?
Appropriate for Individual?
Provides Consumer Value?
Simple to Convert?
Avoid Bait & Switch Offers and Trailer-plays
Provide Options to Engage Their Social Network
In Destination Engagement May Not Be Forever

Mobiata – StayHip (For TravelClick)

Can Your iPhone App Compete?
“I was in downtown Orlando for MegaCon this weekend and bid for a last minute three-star room for $75 – all while in line for a panel.”

A New Location, Location, Locationfor the Hospitality Industry
Image Credit: geoftheref on Flickr

Location Based Services
Foursquare
Enables Free Setup & Custom Badges
Mayor, Check-In, Frequency, Wildcard Specials
Yelp!
Monetizing Setup , Plus $300-$1,000 Monthly
Heavily Food & Beverage Oriented
Gowalla
IHG Partnering for “HIT it Big” Promotion
Check-in on Weekend Stay, Register for Bonuses

Location Based Services - Continued
Best Prospects for Offers
Frequent Guest Program Members
Returning Guests (Non-Program Members)
First Time Guests (Not Familiar with Property)
Types of Specials
Most Frequent Visitor (Mayorship)
Check-In (Discount / Value Add for Visit)
Frequency (Bonus for Nth Check-In)
Wildcard Offer (Special Offer for Having a Badge)

Disruptive Mobile Innovations
Yelp! Monocle - Augmented Reality
Point Camera Down Street, See Reviews
Kayak Connect - Booking
Mobile Meta-search Gets Transactional
Google Store Views
Google Maps Street Views Goes Indoors
Apple iTravel
Streamlining the Travel Experience
Openways
Innovative Mobile Door Locking System

Yelp! Monocle

Kayak Connect

Apple iTravel – Booking Transactions

Apple iTravel – Traveler Identification

Apple iTravel– Revolutionary Air Experience?

iTravel – Revolutionizing Event Merchandising

iTravel – Revolutionizing Conferences?

Openways – Doors or Distribution?
Uses Mobile Phone as Room Key
Engages Guest Prior to Arrival / Kept through Stay
Does not Require Replacement of Door Locks
Device Added to Existing Lock Set
Smartphone
App Downloads Unique Audio Code From Cloud
Feature Phone
SMS Text Message / Calls Servcer / Plays Code
Will Support NFC in Future

Every Innovative Mobile Ideais Not Always a Good Idea…

Robert Cole
RockCheetah LLC
robert@rockcheetah.com
http://rockcheetah.com/blog/
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Mobile Distribution - No it's not Billboards and Neon Vacancy Signs

by Robert Cole on Jun 23, 2010

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Mobile Distribution - No it’s not Billboards and Neon Vacancy Signs — Presentation Transcript