Mobile Marketing 101

MOBILE 101 LUNCH ‘N’ LEARN: The Most Seen Screen June 11, 2009

Introduction

BRIEF HISTORY OF MOBILE
Early 90’s mobile phone providers began offering customization to users
Device covers, ringtones, wallpapers
As customization became widely popular, mobile providers began charging customers for these assets
Mobile providers began pushing large collections of ringtones, banners, wallpapers, etc. via offline media
With the advancement of digital media, mobile companies developed ways to offer ad-supported mobile content to consumers
SMS, applications, banners, and more
Today, mobile phones are practically portable PCs (as opposed to traditional telephones) and thus have much of the same advertising potential as other forms of digital media
Dr. Martin Cooper of Motorola, made the first US analogue mobile phone call on a larger prototype model in 1973.

THE CONVERGED DEVICE “ Always with you”

WHY MOBILE?

Who is Using Mobile?

MASS REACH
US is going mobile…
305 million people in the US
267 million mobile phone subscribers
115 million subscribe to mobile web
49.7 million actively use the mobile web each month
Worldwide, there are 4.3 billion mobile phone subscribers
Source: Nielsen Mobile, May 2008

MONTHLY MOBILE INTERNET UNIQUE AUDIENCE Data is in millions 28.1% YTY Increase in Mobile Unique Audience Source: Nielsen Mobile, May 2008 Jan 2009 Feb 2009

EXPECTED GROWTH OF MOBILE INTERNET USERS By 2013, there will be 134 million+ mobile internet users Worldwide SMS volumes are expected to grow from 2.6 trillion in 2007 to 5.5 trillion in 2013

STRONG ADOPTION OF UNLIMITED DATA PLANS 53.0% Increase YTY (US) Source: comScore m:metrics, December 2008

US MOBILE INTERNET USER PROFILE Source: Nielsen Mobile, May 2008 Key Facts Demographically diverse: Approximately 50/50 split between those above age 35 and those under 35 Slight male skew: 56% are male; 44% female. The male skew is consistent with findings across markets (i.e. Europe, Brazil, India, Russia) Not just for high HH income: 24% have HH income > $100k+; 26% have HH income < $50k

CONSUMER MOBILE ACTIVITIES BY AGE P13+ Text Get Maps Check Weather Read News 13-17 18-24 25-34 35-44 45-54 Email Picture Message 58% 80% 84% 74% 64% 50% 18% 20% 26% 28% 21% 13% 29% 48% 51% 41% 29% 20% 6% 6% 8% 9% 7% 4% 9% 9% 13% 14% 12% 7% 8% 6% 10% 13% 11% 7% 55-64 33% 9% 14% 3% 6% 6% 65+ 50% 3% 6% 1% 2% 1% Source: comScore m:metrics, September 2008

MOBILE GROWTH AMONG CONTENT CATEGORIES 2009 AdMob, Inc. Confidential & Proprietary % Growth Among Top Internet Categories from 2008 to 2009

MOBILE PROVIDES LIFT IN KEY METRICS
Over 3 times more powerful than online for raising purchase intent, brand favorability and ad awareness
Source: Dynamic Logic AdIndex July 08 2.6 5.6 23.9 3.0 12.2 1.7 5.4 1.5 4.7 6.9 Aided Brand Awareness Ad Awareness Message Association Brand Favorability Purchase intent

Mobile Opportunities

OPPORTUNITIES OVERVIEW
Mobile works at a very personal level, allowing brands to develop an on- going dialogue with their customers to build brand loyalty
Used for either branding or direct response
Branding: full-screen interstitials, expandables, mobile video with pre-, mid-, post-roll or live event production, and original branded content in branded channels
DR: mobile clubs, loyalty programs, mobile CRM, contests, sweepstakes, on-pack, retail POS, hook-ins to supply chain management system on retail level
Integration of traditional and digital media
Mobile marketing campaigns can be optimized and uniquely measured (via SMS) across all media formats – TV, print, OOH, online, mobile, etc.

MOBILE OPPORTUNITIES
Internet Banners
Internet Textlinks
Internet Pre-Roll Video
SMS/MMS
3 rd Party Application Sponsorships
Search
Proximity/Location-Based
Lead Generation > CRM
m-Commerce
Proprietary Applications
Downloads
Bookmarks
Device Customization
Couponing
COOL TOOLS Watch Cool Tools on DIY Network. *Reply Y for show reminder App Name: ESPN X GAMES Version: 1.0 Size: 10630 SMS Reply Click to WAP Voice Reply Click to Video Click to App

INTERNET BANNERS/TEXTLINKS/PRE-ROLL VIDEO
Similarly to online advertising, purchase banners, textlinks, or pre-roll video to run across publishers’ mobile sites
Buying done at the site/publisher and network levels

SMS/MMS
SMS (Short Message Service): common term for the sending of "short" (160 characters or fewer, including spaces) text messages to mobile phones
MMS (Multimedia Messaging Service): can include not just text, but also sound, images and video
Allows advertisers to:
Promote the brand and create an opportunity to interact with the audience
Evaluate the effectiveness of campaigns through response rates
Get instant response at points of interest and collect valuable customer data
DonQ Ringtone
DonQ Video
DonQ Recipes
DonQ Events!
From: 44636 From: 44636 NFL NE:38 NYG:35 F 12/29 * Premium rum needs to be enjoyed! Reply Don Q Don Q quality comes from aging that takes 2-3 years. This makes the flavor of Don Q rum shine. Find out more by visiting http://m.DonQ.com

SMS/MMS (cont.)
SMS/MMS can also be integrated with other forms of digital media such as console gaming

3 RD PARTY APPLICATION SPONSORSHIPS
Reach a captivated audience of mobile consumers within trusted applications
Can choose applications and devices

SEARCH
5.2 million US mobile search users
Expected to grow to 56.3 million by 2013
Source: eMarketer, April 2009

PROXIMITY MARKETING
Bluetooth: global standard for wirelessly connecting devices such as mobile phones, computers, cars, MP3 players and more
When consumers walk by kiosks, enter shopping centers, or attend events, marketers can push branded video games, mp3s, in-store specials and promotions (content is sent directly to mobile phone)
Location-Based Services (LBS): utilize the geographical position of the mobile device
Location based maps of user’s current location, routing services to provide directions
Real time information about traffic conditions
Identification of particular points of interest based on user preferences

PROXIMITY MARKETING (cont.)
Interactive POS/POI: interactive screen on store front showing a 3D ‘virtual reality store’ and product promotions
Users can find out more about particular products, their functionality and their price
Can text a short code on their mobile to receive a discount voucher for any product promotions, to redeem when the shop reopens

LEAD GENERATION > CRM
Lead Generation
Capture user data through sign-ups, requests for information, sweepstakes entries
Email addresses, phone numbers, names, etc.
Ability to implement mobile CRM once the leads are captured
Mobile customer relationship management is a combination of processes, and strategies implemented by an organization that unifies its customer interaction and provides a mechanism for tracking customer information
Identify target groups within the customer base according to selected criteria or demographics
Send mobile campaign-related material (e.g. information on special offers) to selected recipients
Track, store, and analyze campaign statistics, including tracking responses and analyzing trends

M-COMMERCE
Ability to conduct financial transactions using mobile devices
Currently, mobile content purchase and delivery mainly consists of the sale of ringtones, wallpapers, and games for mobile phones
Nokia is working to develop phones that will allow consumers to pay for items (or pay each other) via text messages or other cell phone applications, similar to Exxon Mobile’s Speedpass where consumers can “swipe ‘n’ go”

PROPRIETARY APPLICATIONS
Software programs that are downloaded, installed and perform specific tasks on a mobile device
(Multi)media and entertainment
Games
Social networking
Productivity
Utilities
Education and reference

DOWNLOADS
Ringtones
Wallpaper
Music
Games
Videos

BOOKMARKS
Advertisers buy a link to their brand’s mobile site on select handsets
Unique inventory
Can be purchased by device and/or country
Long lead times

DEVICE CUSTOMIZATION
Allows companies to brand a device/handset and packaging
Has not yet made it to the US, but is prominent in Brazil

COUPONING
Lack of infrastructure is currently holding back growth of mobile coupons in Western Europe and North America
Coupons delivered and redeemed via mobile phones are forecast to be used by 200 million mobile subscribers globally by 2013
As well as increased redemption rates, mobile coupons have a number of advantages over their paper cousins including:
Real-time offers
Geo-targeting
Time-of-day redemption tracking
Stimulate impulse purchases
Cost efficiency

Opportunities to Integrate Mobile with Traditional Media

INTEGRATION ACROSS MEDIA
Integrating mobile with traditional media allows for measurability and tracking of offline media
Print ads have the opportunity to incorporate SMS text messing into their advertising message
Live NFL scores on your cell phone! Send a text message to 44636 (4INFO) with EXPRESS TEAM NAME (EXPRESS JETS) to sign up for team scores & news.

OUT OF HOME
Brands have opportunity to engage consumers through SMS text messaging as they pass out of home messages
Incorporate an SMS short code to message for consumers to receive updates, coupons, etc.

ON-AIR
SMS programs work by prompting viewers to send their votes and opinions to their favorite shows via text messaging, and is especially popular with the youth demographic
SMS TV is increasing program viewership and loyalty

ON-PACKAGE
The most straightforward form of mobile marketing is on–package marketing, the imprinting of short codes and keywords directly on packaged goods
Consumers text these keywords to short codes to receive rebates, enter contests or simply interact with the brand
Large volume on–package promotions have produced response rates ranging from 8-20%

VENUE
Brands/Venues can foster engagement and interaction with consumers while attending various events using SMS/MMS
Attendees can send personal messages to a short code (promoted at the venue) which will then be displayed on the jumbotron or LED screen
At sporting events, send fans text alerts about player injuries and breaking news, or allow them to vote for their favorite players and highlights

Targeting, Tracking, and Reporting

TARGETING Behaviors: Categories of high-propensity Individuals. Based on mobile web browsing activity & premium mobile content purchase
Content Categories:
Search & Directories
News & Finance
Entertainment
Mobile Communications
Premium Content & Downloads
Sports
Weather
Demographics:
Age
Gender
HH Income
Geography
Education
Presence of Children
Ethnicity
Marital Status
Dayparts:
Time of Day
Day of Week

TARGETING (cont.)
Geographic
Zip code, DMA, state, country
Location-based targeting
Target users based on their exact location and serve them ads for restaurants, attractions, stores, etc. in their nearby vicinity
Device Targeting
Target based on type of device as well as mobile carrier
Ex. Target only iPhone users
Custom Targeting
Many publishers can work with advertisers to provide a combination of traditional targeting options

TRACKING AND REPORTING
Mobile publishers have the ability to track and report on a number of key digital metrics
Impressions, clicks, conversions/ROI, click-to-calls, SMS replies, and other types of user engagement
WAP/mobile site activity can also be measured and analyzed
3 rd party tracking and reporting is possible with some (but not all) publishers
Allows us to pixel creative, which will track in our system and provide us with immediate access to campaign data
If 3 rd party tracking is not feasible, we are unable to include mobile in path-to-conversion measurement and reporting
Ability to track mobile campaigns allows on-going optimization
At the site, placement, and creative levels
Based on typical metrics such as CTRs, CRs, CPCs, etc.

Mobile is no longer an “emerging media”…
… it is here.

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Mobile Marketing 101

by KSM Digital on Jun 18, 2009

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