5 Thoughts on Mobile Marketing
Dave Sloan
4/07/09

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

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)

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

Thought #1: Mobile is important (but messy)
• 3rd screen
Reach • Growth
• Social / Sharing
• Devices improving
Mobile
marketing
Engage Interact

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.

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

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

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

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.

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.

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

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

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

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

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

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

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.