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Why Mobile marketing is important and important trends in mobile marketing

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A report by NBC and Forrester

A report by NBC and Forrester


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  • 1. Adobe Online Marketing Suite Webcast Guide Smart marketing for smartphones— why mobile marketing mattersPresented jointly by: Mobile is becoming one of the most important channels in the marketer’s arsenal, not only because of theBrandon Casenave opportunities that exist today but also because of its expected potential over the next few years with theNBC Universal widespread adoption of smartphones. This guide explores mobile usage and innovative ideas for marketers who want to incorporate mobile into their marketing strategies. Like other marketing channels, mobileThomas Husson marketing should be measured to help marketers create, optimize, and target content.Forrester Research The mobile marketplace Let’s begin with the way consumers are interacting with mobile devices today and how their behavior is likely to evolve over time. We’ll look at what some companies are doing to tap into these emerging opportunities and examine best practices and successful strategies for creating engaging mobile experiences.The growth in How consumers are using mobiles­ martphone adoptionpresents new marketingopportunities.
  • 2. In 2007, only 7% of mobile subscribers in the United States owned a smartphone. By the end of 2009, thatnumber had grown to almost 17% (one in six). However, the primary use remains communication. ComparingForrester surveys of U.S. adults conducted in 2006 and 2009, SMS text messaging went up from 32% to 63%,and MMS multimedia messaging increased from 16% to 45%. A growing number of users said that they werealso using their smart devices for other activities as well:• Accessing the Internet• Playing games• Checking the weather• Listening to music• Reading news• Accessing social networks• Accessing telephone directories and maps• Sending text messages• Taking pictures and making videos• Performing online banking and other financial transactions• Researching products for purchase• Receiving coupons and promotionsAs more consumers buy smartphones, these activities will eventually reach critical mass. Mobile Internet wasavailable on 21% of mobile devices in 2009, but that number is estimated to reach 40% by 2014. Mobile use isespecially widespread within the 18–24 year-old demographic. New consumer behaviors are emerging veryquickly as mobile devices become a larger part of our everyday lives, moving from niche products to massmarket adoption.The emergence of mobile marketingAs more and more people use mobile devices for a variety of everyday activities, mobile is evolving into aconstant digital hub. The smartphone phenomenon has made the business world take notice. Retailers expectto generate sales of $1.5–2 billion this year alone via mobile phones. Adobe Online Marketing Suite Webcast Guide 2
  • 3. Where marketing executives once turned to mobile devices to create audiences for their products and delivervalue-added services, they now hope to achieve other goals as well:• Increase customer engagement – 52%• Improve customer satisfaction – 36%• Appear innovative – 30%• Build loyalty – 28%Many companies use standard SMS text messages in their marketing, while others are using (or plan to use)banner ads, mobile video, and other online tools. One recent example is the Calvin Klein launch of a newfragrance. The objective was to promote awareness of the ckiN2U fragrance among young men and womenthrough mobile marketing and distribute samples to drive traffic to Boots stores where the fragrances wereavailable for purchase. The response rates for this smartphone campaign hit an amazing 39%. Adobe Online Marketing Suite Webcast Guide 3
  • 4. How marketers are tapping into the mobile opportunityAlthough communication will remain the backbone, mobile will eventually be the digital hub for messaging,content creation, consumption, web access, and online transactions.Most likely, the mobile marketing space will consist of a new crop of applications created specifically for mobiledevices. iPhone® users already have a wide range of applications available, and Google and Apple® have spent acombined $1 billion on mobile application networks. The most popular applications deliver games, music, andsocial networking to mobile phones, but many others are available, and this number is growing daily. Adobe Online Marketing Suite Webcast Guide 4
  • 5. Although not yet in widespread use, downloading mobile applications is gradually becoming more popular asthe smartphone market grows. In a survey of European users, 15% of smartphone users said that theydownloaded applications at least once a month, as compared with only 4% of all mobile users. In anotherEuropean survey that compared iPhone users with non-iPhone users, the iPhone users downloadedapplications much more frequently than those using other mobile devices. Some of this might be because notall smartphones have access to an embedded application store, but as new models come on the market and asthe networks improve, the gap between the iPhone and other smartphones will close.CouponsCoupons is an emerging mobile application trend. While research shows that 70% of U.S. consumers prefer notto receive money-saving coupons over their phone, younger consumers (18–24) have shown a definite interest.We can expect mobile coupons to become a larger part of mobile marketing in the future.Applications as a serviceApplications provide a unique opportunity to offer your brand as a service. Some recent examples includeNestle, which designed an application for moms-to-be that delivers relevant content and value-added servicesspecific to that target audience. Similarly, Kraft created a recipe-based application that 60% of users were stillenjoying six months after downloading. These businesses created applications that deliver relevant content toa targeted mobile audience, and they have the tools in place to track usage and find out how consumers areusing the content and services. Adobe Online Marketing Suite Webcast Guide 5
  • 6. Can you think of situations in your business where you might employ this strategy? Convergence of mobile and social networking With the success of companies like Facebook, there is a natural convergence of mobile and social networking. Facebook’s global mobile audience went from 65 million in September 2009 to 100 million in February 2010, to more than 150 million active users by July 2010.Social location is an Social locationemerging enabler ofsocial and marketingservices. Social location (or SoLo) is becoming an enabler of social and marketing services. As an extension to social networks, Foursquare, a web and mobile application that allows registered users to connect with friends and update their location, has leveraged one of mobile’s unique advantages: the ability to pinpoint exactly where users are in the world and share that information with others. Through Foursquare, users can also share information about a particular establishment with their contacts, generating buzz, and attracting additional customers for businesses. Foursquare has started partnering with retailers and different media brands to make their offerings more visible across the web. Adobe Online Marketing Suite Webcast Guide 6
  • 7. Forrester believes that this is another good indication of where mobile marketing is heading. Location-based application users tend to be heavy mobile researchers, very likely to check online information before making key decisions and purchases. They are also heavy social networking users, more than willing to share their opinions with their networking contacts. Does social location offer opportunities within your mobile marketing agenda? Challenges to mobile applications Despite the success of early mobile applications, marketers need to be aware of the pitfalls. For one thing, mobile applications, like all applications, must provide a clear benefit to the company using them. A lot of businesses have developed applications that look great and are fun, but don’t provide a clear strategic advantage for the brand. Developers were more focused on the number of downloads they could achieve rather than return on investment (ROI) and other meaningful business metrics.Fifty-seven percent of The main reason for this disconnect is that mobile marketing is still new and, therefore, not yet tightlymarketing executives say integrated with overall marketing strategies.that they either have nomobile strategy in placetoday or are just starting Thinking about your mobile marketing initiatives, are there disconnects where more integration is needed?to develop one. One of the challenges is that mobile tracking tools aren’t as informative as they need to be. For instance, the companies cited earlier put tracking codes in their applications so that they could see how customers were engaging and whether those engagements were having a financial impact. But generally, the tools didn’t correlate with larger business goals. Most of them measured traffic patterns, but only 30% measured customer satisfaction. Adobe Online Marketing Suite Webcast Guide 7
  • 8. As more consumers download more mobile applications, marketers will need to follow the basic rules ofmarketing. They will need to know which applications are being downloaded, who’s downloading them, howthey are being used, and how frequently. In short, mobile marketing strategies must become more mature ifcompanies are going to see the full benefit that they offer.Mobile marketing trendsAlthough mobile marketing is still a new field, researchers have identified a few emerging trends and theirimpact on marketers.Increased adoptionMobile marketing isn’t as widely employed as more established marketing tactics, such as email and searchengine optimization (SEO), but a growing number of marketers say that they are planning to add it to theirmarketing programs in the next 12 months. Certain barriers exist, like limited audiences and emerginganalytical tools, but those barriers will diminish over time.While the audiences are small today, it is expected that by 2014, 39% of mobile users will be employing theirdevices to access the Internet, following the same growth trends that PC Internet access experienced. Adobe Online Marketing Suite Webcast Guide 8
  • 9. Increased spendAs the audience grows, so will mobile marketing budgets. Brands are now in the process of developingapplications for iPhones and other devices, which means that they will need to invest in promoting thoseapplications to drive traffic. Global mobile marketing spend is expected to rise from $0.5 billion in 2010 to $1.5billion by 2014.Mobile media metricsAs mobile spending increases, companies will want to know whether that spend is yielding the returns theyexpect. They will want to know the size and relevance of their audiences and the difference that mobilemarketing is making to business results. Many companies can already measure the number of visitors, numberof page views, and time spent on mobile Internet. These measurements will extend not only to other countries,but to applications and other mobile functions.Metric tools are being developed or acquired by companies like Adobe (with its 2009 acquisition of Omniture,a market leader in web analytics, measurement, and optimization technologies). Many startups are also gettinginto this field, so marketers who once had trouble measuring the success of their applications are beginning tohave many more tools to choose from.Mobile as a customer-interaction enablerAs mobile becomes a more important part of the consumer’s daily life, we will see it enabling customerinteraction as an extension of the Internet, a cross-channel tracking mechanism, and a more contextualenabler of “always in my pocket” communication.Although there will be more interaction between mobile phones and other channels, mobile has some distinctadvantages over more established media. Mobile devices provide quicker access to time-sensitive information.And, as more consumers buy things via mobile phones, companies have more opportunities to upsell or Adobe Online Marketing Suite Webcast Guide 9
  • 10. cross-sell, build loyalty, and make location a part of their sales strategy. With mobile marketing, they can deliver more personalized content based on location and behavior, and even pick the best time of day to interact with their customers.It is important to But when devising a mobile marketing strategy, marketers need the technology and metrics to measure andi­ntegrate your mobile refine their overall mobile marketing strategies to justify their mobile spend. Because mobile devices will bestrategies with the rest of interacting with more traditional marketing channels (online, print, TV), marketers must also integrate theiryour marketing program. mobile strategies with the rest of their marketing efforts. With mobile emerging as an innovative and effective opportunity to engage with consumers, keep these things in mind: • While mobile will become a bigger part of your marketing mix, it will still be only a small percentage of your overall marketing spend. • Mobile marketing should be a part of your larger marketing strategy, not separate from the other things that you are doing. • Define your mobile presence and know what you want to achieve before you plan and implement your mobile marketing strategy. • To measure mobile’s effectiveness, you must have the analytical tools to help you refine your programs and show their impact on your business. Emerging trends in analytics: NBC Universal Analytics is an important part of any marketing program, whether mobile, online, or more traditional. But for a company like NBC Universal (NBCU), which can be accessed via TV screen, computer screen, and mobile screen, it’s important that content is available and accessible across all possible customer touchpoints, and that traffic patterns be quantified for its clients. Adobe Online Marketing Suite Webcast Guide 10
  • 11. NBCU has more than 20 million mobile viewers, some watching over seven hours per month via their mobiledevices. These viewers are influential, young, and affluent, and they often respond to the ads they see, soclients that buy online ad time are able to reach these potential customers through a number of venues.Mobile video is popular on the move and at home, particularly among younger viewers. They might not wantto watch something on a larger screen with their families, so they take their devices into their rooms and watchvideos there. Also, like more traditional channels, it has a “prime time” from 7 p.m. to 12 a.m.At the moment, NBCU offers only short-form video on its mobile sites, but its presence there has grown substantially.Its properties have garnered 800 million page views so far this year, a 48% increase over 2009. Mobile videos thatwere once available on only one brand in 2009 are now available on nine, including all of NBC’s cable properties andwebsites like iVillage. As a result, the number of clips has grown 59% since the second quarter of 2009. Adobe Online Marketing Suite Webcast Guide 11
  • 12. Most people view these videos at home, due in part to the content itself and to the times of day they’re being watched. Mobile videos outperform online videos, with 3–5 times greater awareness, favorability, and purchase intent. This media spread first became evident during the Winter Olympics, when video was made available in applications and through the website. The number of videos available via mobile was six times higher than it was for the 2008 Summer Olympics. NBCU launched its first mobile application in 2008, and now it offers more than 70 fully trackable iPhone applications. NBC iPhone apps have been downloaded over two million times since last year’s launch, and the CNBC real-time iPhone app has generated more than 700,000 downloads and tens of millions of opens since launch. Moreover, the company is currently developing applications for the Android that cover financial news, local media, entertainment, and sports. Analytics using Adobe® Omniture® technology The Adobe Online Marketing Suite, powered by Omniture, has helped NBC Universal monitor its mobile marketing programs, and it has played a significant role in helping to solve the mobile metrics challenges that NBCU faced. If you just look at the number of downloads on iTunes, you see that they tend to spike at the beginning and then tail off over time. But success doesn’t lie in the number of downloads, so it’s important that you track the number of users actually using your app. In fact, some applications have usage rates that are 10–12 times higher than the download rates.It’s important to look But along with higher engagements come analytical challenges. When NBCU started playing in this space, itat the entire applica- had to deal with the fact that a lot of phones didn’t accept cookies. The company had to find a way totion profile, not just the accurately identify each user and quantify the number of unique visitors. To solve that problem, NBCU firstnumber of downloads. created a customized tracking tool and then transitioned to Adobe’s superior out-of-the-box, tag-based solution, which is now employed for user tracking. Are you satisfied with your current analytics solution? In what areas might it be falling short? Adobe Online Marketing Suite Webcast Guide 12
  • 13. Good2Go Mobile Campaign Good2Go is a Dove sponsorship designed to leverage traffic across various NBCU mobile properties. Targeting an 18–49 aged female audience, this application was designed to create a mobile experience on NBC’s websites, showing where users go within the NBC world and identifying cross-usage between Bravo, iVillage, Oxygen, and its other sites. Because Good2Go is tracking links across multiple sites, NBCU needed a robust tracking application. NBCU uses two different vendors across properties, so there were some special challenges blending content and data together so that the Adobe applications could evaluate them collectively. But after these data challenges were solved, Adobe technology proved to be crucial for measuring the overall success of the campaign. This space is quickly evolving, and analytics applications need to be evolving as well. The Good2Go initiative gives a clue as to where the future of tracking and measuring is headed. What began as pure page views has now moved from unique visitors to link tracking. It also shows that as the needs of advertisers evolve, analytics will need to evolve with them. NBCU is taking this idea one step further with NBC Live, which allows users to interact with NBC simultaneously via computer Internet, Wi-Fi WAP, or TV. Again, the goal is to create an experience that goes across TV, web, and mobile platforms, engaging the customer at each and every touchpoint. Key takeaways • Mobile marketing provides many opportunities as smartphones move from niche products to mass market adoption. • It’s important to integrate mobile into your overall marketing strategy, not just treat it as a separate entity. • When developing applications, define your strategic objectives carefully, along with expected deliverables for your business and brand. • Select a strong technology partner like Adobe to help manage your analytics and optimization efforts. • Look at the entire application profile, not just the number of downloads. • Optimize content using analytics that can measure across mobile platforms. • Mobile viewing takes user engagement to a whole new level. To view this webinar, visit www.omniture.com/offer/958 For more information To learn more about SEM solutions from the Adobe Online Marketing Suite, contact your Adobe or Business Unit account manager or call 877-722-7088. For businesses outside of North America, visit Omniture.com for the office nearest you. Obtain additional resources: 877-722-7088 View recorded Webcast: www.omniture.com/webinars Learn more: webcasts@adobe.comAdobe Systems Incorporated Adobe, the Adobe logo, Omniture, and Test&Target are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.345 Park AvenueSan Jose, CA 95110-2704 © 2010 Adobe Systems Incorporated. All rights reserved. Printed in the USA.USAwww.adobe.com 91033897 10/10
  • 14. Notes Adobe Online Marketing Suite Webcast Guide 14
  • 15. Notes Adobe Online Marketing Suite Webcast Guide 15