5 Thoughts on Mobile Marketing

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    5 Thoughts on Mobile Marketing - Presentation Transcript

    1. 5 Thoughts on Mobile Marketing Dave Sloan 4/07/09
    2. Agenda: Provide a snapshot of mobile marketing today •  What does the mobile landscape look like in 2009? –  What phones do people have? What is the potential reach? –  What are forecasts for mobile advertising in 2009? •  Is there opportunity in mobile marketing? –  What are best practices? –  What are some good case studies? •  Is mobile a good advertising vehicle? –  SMS, WAP sites, applications, video •  Case studies –  Volkswagen, BofA, Kraft, MTV, MySpace, BMW Germany
    3. Some background on mobile: •  Mobile has 90% penetration in the US. 270M subscribers! •  But, are these users really reachable? Usage breakdown: –  SMS: 25%, Mobile web: 18%, Social networking: 8%, Video: 8% •  Some impressive mobile growth stats… –  1 trillion SMS message sent in the US in 2008 (CTIA) –  Admob served over 6B mobile banner ads in February 09. –  Apple has sold over 17M iPhones plus 13M iPod Touches –  MTV streamed 100M mobile videos in 2008 –  Smartphone growth: 139M in 2008, 295M forecasted for 2010 (Gartner)
    4. Mobile: Opportunity and Barriers Opportunity Barriers •  The most personal, ubiquitous, •  Price sensitivity engaging device •  Data plan adoption •  “pull” rather than push •  Fragmentation –  Kill time, save time •  Stalled mobile •  Hyper target customer segments payment market •  Secure, less likely to share with •  Privacy, trust others •  Devices are rapidly improving
    5. Thought #1: Mobile is important (but messy) • 3rd screen Reach • Growth • Social / Sharing • Devices improving Mobile marketing Engage Interact
    6. Thought #2: Think beyond classic advertising There’s potential in direct response marketing: banner ads and SMS •  SMS –  Great for voting and interaction (10x better than online voting) –  Careful of Spam, over-charging, privacy, opt-in experience, carrier fees. •  Mobile web sites (WAP) –  Great for a catch-all approach –  Awkward discovery and usability. Lacks elegant model to acquire customers •  Apps –  Great for enhanced mobile user experiences that can leverage strengths of a mobile platform (address book, GPS, accelerometer, camera) –  Limited reach and stickiness •  The next step: Mobile provides new and exciting ways to interact with brands. Let users connect on their terms. Create new interactive experiences that leverage the power of mobile environments.
    7. The reality of mobile advertising •  Brutal facts: Reduced prospects –  Over 90 companies specialize in mobile advertising. •  Don’t try to recreate web advertising models •  Consider the mobile user experience –  Conversion is awkward –  Banner ads: Ad quality. 1-2% CTR –  Limited screen space, navigation • A better strategy is to create great branded mobile experiences that drive interactive usage and brand awareness –  Mobile is the engagement tool
    8. Thought #3: Your customers are already mobile • Your users are already mobile –  MTV. Millenials already prefer mobile –  Mini Cooper: Customer segment overlaps with iPhone –  MySpace: 400% mobile growth. Extends communication • Is my brand a good “fit” for mobile? –  Mobile can strengthen brand attributes • Reach your users where they are, but… –  Create new value. Mobile should offer a level of interaction that is better than desktop. –  Consider freemium models. Mobile is not a good place to charge a premium. –  Launch integrated campaigns. Mobile is not a stand alone screen. Measure mobile as a component of a larger campaign
    9. Thought #4: Mobile is part of a larger media convergence • The 3rd screen –  “My content” on my terms Place-shifting –  Any screen, any time • Best practices –  Run multi-platform campaigns –  Innovate with the goal of making content access simple from any screen • Revenue models Time-shifting –  Mobile users are open to advertising in exchange for high quality content Social / WOM –  Use mobile to drive customers to other channels; retail, online
    10. Thought #5: The secret is the user experience •  Innovate! But…. –  Consider fragmentation. Fail gracefully –  Don’t over-design the mobile experience –  Consider slow connections, small screens –  Focus on reliability, speed to market •  Don’t treat mobile like the next Internet –  New experiences. New levels of engagement –  New success metrics •  ROI should be a top goal, but mobile is an opportunity to raise the bar. The winners will be creative, improve their brand equity via mobile, and focus on execution.
    11. Summary…and case studies! 1.  Mobile is important (and messy) 2.  Think beyond classic advertising Next steps 3.  Your customers are already mobile Start by designing a •  4.  Mobile is part of a larger media fantastic mobile brand convergence experience 5.  The secret is the user experience Focus on engagement, •  reliability and reach Measure overall lift, not •  just mobile response.
    12. Case studies: Volkswagen Polo •  Goal is to innovative the brand, drive interest in test drives –  820,000 downloads in the first week •  Focus on iPhone –  Leverages accelerometer and GPS –  Fun, free racing game –  Low budget •  Bottom line: Lots of press on success of popularity of app. Source: mobilemarketer.com
    13. Case studies: Bank of America •  The goal is to give users access any where, any time. Must be on all platforms –  Added value is at point-of-sale: check account balance –  Good fit for security requirements •  Lesson learned: The pace of mobile is FAST. You need to be there first and react quickly. •  Bottom line: Very successful in achieving the goal of increased engagement and activity. Universal access is important to the BoA. Source: Dow Jones Wireless Innovations, 3/24/09
    14. Case studies: Kraft •  The goal is to innovate and be a leader in their space –  Start with iPhone, then apply to other smartphones –  Target specific customers: Millenials and men. Overlap with iPhone users –  Marketing goal is to increase LTV –  Mobile increases brand attributes like “fun” and “cool” •  Bottom line: Mobile has helped Kraft grow engagement, improve their brand equity, and target new users. Source: Dow Jones Wireless Innovations, 3/24/09
    15. Case study: MTV •  The goal is to drive revenue and create ubiquity. –  Must be able to track metrics. Show value to advertisers. –  Top mobile growth areas are mobile video, mobile web, and iPhone •  MTV’s users are already on mobile –  Give them access from anywhere –  SMS increases engagement. Text messaging is the best way to get votes (10 times better than online) •  Bottom line: Mobile allows MTV to offer multi-platform access and drive additional revenue streams •  100 million mobile videos streamed in 2008 Source: Greg Clayman, CTIA 4/1/09
    16. Case study: MySpace •  Goal: Drive higher engagement, give users mobile access, and add revenue •  Mobile is strategic: Forecast 50% in 2-3 years –  Grew from 5M to 20M users in 1 year (130mm online) –  75% WAP / 25% on apps –  Requirement: Apps must be very intuitive, no learning curve –  How monetize? Ads, but careful of the user experience •  Bottom line: Focus on mobile is allowing MySpace to grow, increase engagement with key demographics and add revenue streams Source: Dow Jones Wireless Innovations, 3/24/09
    17. Case study: BMW Germany •  Goal: Drive sales of BMW tires through an MMS campaign •  The message was sent to 1,200 customers –  30% conversion rate •  Focus on simplicity •  Mobile allows targeting and customized messaging •  The MMS contained all important information. –  No need to click for next steps •  Bottom line: “the results were amazing” Source: Mobilemarketer.com
    18. Thank you •  Contact Dave Sloan at dave.sloan@gmail.com –  Dave has been working in mobile since 2002. He has a passion for creating fantastic mobile experiences and helping companies understand the potential of mobile. He has a background in product management and marketing with experience at T-Mobile USA, Microsoft, Palm, and Avot Media.

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