Mobile MarketerTHE NEWS LEADER IN MOBILE MARKETING, MEDIA AND COMMERCETMwww.MobileMarketer.comClassic Guide toMobileAdvertisingA CLASSIC GUIDEDecember 2012$495
CONTENTSMobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 2PAGE3 INTRODUCTION: Budgets go up and up for mobile adertising By Mickey Alam Khan4 Mobile marketing: Not just a brand’s game By Carine Zeier6 Apps vs. mobile Web: A marketer’s how-to By Marci Weisler8 Mobile marketing in the participation age By Daina Middleton10 Making mobile ads engaging By Doug Stovall12 Serving targeted ads: The needle in a mobile haystack By Anthony Iacovone14 The success of commerce-enabled mobile ads By Kathleen Goodwin16 Building a digital presence that attracts mobile customers By Anthony Bratti18 Home cooking starts with mobile shopping By Alicia Cervini20 The mobile consumer: Remapping the pathway to purchase By John Lim22 Understanding mobile intent, usage key to mobile monetization By Bill DinanPAGE24 How brands can find the right talent to revolutionize their mobile presence By Corey O’Brien26 SMBs and mobile: An opportunity for agencies, pubishers By Anthony Bratti27 From rags to riches: The future of mobile advertising By Ales Gabrovec29 Mobile retargeting: Four things you need to know By Heather Sears31 Social is mobile and vice versa By Marko Muellner33 Integrating SoLoMo marketing into mobile efforts By Timo Platt35 The Goldilocks analytics strategy: Surviving and mastering big data By Victor Milligan37 What can mobile marketers learn from digital advertising’s failures? By Jeff Arbour40 Mobile phones are the ultimate direct marketing device By Michael Levinsohn42 Do not hang up on technology, focus on experience By Jeff Gunderman45 The rise of intelligent mobile messaging By Brendan O’Kane
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 4Mobile marketing: Not just a brand’s gameBy Carine ZeierMobile marketing has evolved. It has been thedomain of big brands, larger budgets andbroadly targeted campaigns. Now, things haveThe mobile consumer is far ahead of most brands, aspercentage spent from the marketing budget on mo-bile does not match time spent on mobile by consumers.Why are SME brands lagging behind?evolved significantly, letting a broader range of compa-nies - including small to mid-sized enterprises - to drivetargeted campaigns.• Agency rejection. SMEsusually spend less across theboard than big brands andtheir business is regarded ahassle with little earning po-tential amongst some agencies- creative, media buying andad networks.Therefore, SMEs get reject-ed as agencies do not wanttheir business.There are enough bigger clients that agencies ratherwould like to focus on.• Uncertainty on where to begin. Mobile marketing iscomparatively new and most marketers are unsure howto approach it.With agency rejection, SME brands are left on their ownor in the hands of aggressive cowboys looking for a quickwin in a new and booming industry.SMEs who face this situation need not despair.Here are five concrete ideas on how to get started:1. What do you want to go mobile with? Design yourbusiness case and ask yourself what you think mobilecan help you with achieving.Many marketers would like a mobile-optimized Web sitethat represents their company so customers can findthem more easily.Others launch a new brand or product and would like toinclude mobile in the mix.It is important that marketers fully optimize the mobileexperience.There is nothing more frustrating than taking consum-ers to a non-optimized landing page where they have toCarine Zeier
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 5pinch-and-zoom.While that may have been the norm a while ago, that isno longer the case.2. Look at it from the consumer’s point-of-view. Startwith the lowest-hanging fruit.Where does mobile first help your target market? You donot have to do it all from the start.Think how you can integrate mobile with your othermarketing efforts.Adding a QR code to print ads, in-store or on outdoorbillboard is one way to easily ensure value-added inter-action with your brand.3. Segment, segment, segment. Mobile is the mostpersonal marketing channel there is – so should yourmessages be.Leverage tools and services that easily let youtweak messages and pinpoint the distribution to fitdifferent segments.Use location-based ad networks or direct relations withpublishers rather than blind networks.4. Use DIY tools to save cost and increase agility. DIYtools have matured, and offer agency-free solutions re-quiring zero coding knowledge.If you can build your own Facebook page and work withdigital images on your camera, you can also leverage DIYmarketing tools. They should be just as easy to operate.5. Build your own customer loyalty club. Nurture yourcustomer data as your most treasured asset.It is important to capture your customer’s data throughmarketing activities and in every transaction.A local watch store quickly added 4,000 mobile phonenumbers to its customer database by asking in-storecustomers if they wanted to receive special dealsand offers.Via SMS with a URL that linked to a mobile-opti-mized landing page, their latest SMS campaign re-sulted in a click-through rate of 11.7 percent and 11watches sold.The conversion rate was 2.5 percent, and proves thatSMS marketing is still a good route to go.The barriers between smaller businesses and the enor-mous potential of mobile on marketing’s fastest-growingfrontier do not seem so large after all.Carine Zeier is global head of strategy at BoostCommunications, Oslo, Norway. Reach her firstname.lastname@example.org.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 6Apps vs. mobile Web: A marketer’s how-toBy Marci WeislerWe live in an application economy, but that doesnot mean that apps and the mobile Web aremutually exclusive.Studies have shown consum-ers prefer mobile browsers forsearching, quick bits of infor-mation and news.However, they choose applica-tions for better navigation, deepimmersion and offline usage.According to Nielsen Smart-phone Analytics, four outof five users will choose theapp over mobile Web, but themobile Web can be browsed anytime, with the caveatof connectivity.At the end of the day, there are important uses for bothapps and the mobile Web, which will co-exist for theforeseeable future.Immersion versus quick hits: Apps do a much better jobof engagement, whereas the mobile Web is more aboutquick hits.The immersion in apps has been shown to be greaterthan both mobile and desktop Web combined, and theengagement is much higher.Speed: Apps are typically faster than the mobile Web.They have more functionality on the device it-self and the processing and local access can mean asuper-fast experience.Content in either case is often dependent on the networkand coverage.Native device functionality: Apps do the best job oftapping into device functionality and creating a moreseamless experience for users.Push notifications can drive app usage.Apps can integrate cameras and photo rolls.Local content access is also critical for many who spendtime in transit without coverage and want preloaded ac-cess to information, as well as gaming capabilities.As time goes on, some of these functions will be openedfor browsing users as well, but it is currently a much bet-ter option on the app side.Marci Weisler
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 7Reach: Mobile Web definitely wins the reach battle. Itenables you to reach users not only on iPhone or An-droid, but also those using platforms such as BlackBerryand Windows.It also means capturing those searching for subjectsor products.Discovery: How will users find you? For brands, publish-ers and marketers driven by social media, links shouldeasily connect into the mobile Web.The mobile Web can then be used to drive into a deeperexperience via apps or can push the site. App stores arefragmented and many lack good search capabilities.However, if marketers have their own channels to useto promote theirs apps, then they can potentially drivestrong downloads.Monetization: Both apps and the mobile Web canbe monetized via advertising, but apps offer addi-tional opportunities through paid downloads and in-app purchase.Decisions on this front need to be based on yourown goals and whether or not this is a driver for you.Note, however, that apps require approval, at leaston Apple’s end, plus a revenue split, so there aremultiple considerations.Budget: Typically, developing for the mobile Web isless expensive than creating apps, since they con-tain much more customization in terms of featuresand functionality.Remember, though, sometimes if something seems to betoo good to be true, it may be just that, and investing ina more immersive experience within an app may enableyou to better reach your goals.At the end of the day, there is no one size fits all.You need to decide which formats match your audience,your budgets and enable you to deliver ROI.Additionally, multiple implementations may be com-plementary and enable you to capture your us-ers via whichever means they choose to interact withyour brand.Keep in mind that no matter which direction you go, orif you choose to go broad and do both apps and mobileWeb, you need to create quality experiences that trulycapture users and usage in order to deliver on the prom-ise of your brand.Marci Weisler is chief operating officer of EachScape,New York. Reach her at email@example.com.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 8Mobile marketing in the participation ageBy Daina MiddletonAmobile device is the ultimate tool for partici-pants. It is a simple technology vehicle that pro-vides competence and autonomy in the palmA majority of mobile phone users report that they con-sider the device to be so personal that they do not allowit to stray more than a foot away from their person 24hours a day, seven days a week.A mobile device is more thanjust a communication tool.It provides instant access tofriends and family, informa-tion, brands, celebrities, news,entertainment and an endlesssupply of content. More thanin any other environment, par-ticipants expect to engage intwo-way conversations withbrands and each other.of one’s hand. The speed at which the mobile devicehas proliferated globally demonstrates its ability toactivate participation.In this new age of participation, mobile devices area primary enabler to increased connectivity andimproved relationships. In fact, 60 percent of active socialnetwork users have a smartphone and expectations foramped-up performance and unique brand experiences.Consider this: according to the 2012 Life on Demandstudy conducted by Performics and ROI Research,people expect to be able to do the following from amobile device:• 71 percent - banking• 64 percent - order food• 55 percent – make a restaurant reservations• 51 percent – check public transportation schedules• 51 percent – book travel/check-in for travel• 50 percent – make a doctor’s appointmentChannels such as search and social mobility ultimatelyfuel the participation revolution, one that requires mar-keters to adopt a new philosophy.So, how can brand marketers engage in the age of par-ticipation, turning the handheld device into television,computer, book, instruction manual, sales associate,map and more? Here are six considerations for effectivemobile marketing.Embrace social and mobile participation. Social net-working and mobile use, in concert, are integral partsDaina Middleton
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 9of the participant shopping experience pre-, during andpost-purchase. IDC predicts mobile users to outnumberPC users by 2015 and, according to Performics and ROI:• 60 percent of participants search how to use a productpost-purchase• 56 percent share a photo post-purchase• 44 percent comment about a purchase on a social net-work after buyingStrategically manage mobile paid search. Marketersshould embrace an agile and adaptive marketing cul-ture that promotes participation while balances it withperformance goals.• Desktop and mobile paid search programs managedindependently deliver cost savings and performanceimprovements• Mobile campaigns can produce twice the click-through-rates as desktop-based paid search programsand diminish costs by as much as 60 percent• Mirror desktop keyword, copy, bid and landing pagebest practice as a basis for optimizing mobile campaignsCustomize for mobile, think local. As its name sug-gests, the mobile phone is designed for on-the-go useand one in three mobile searchers uses a location in theirsearch query. Given the local dynamic, marketers should:• Test location-specific keywords• Consider hours of the day that drive significantly high-er mobile trafficEncourage and enable participant action. Click-to-call and click-to-download mobile search ads effectivelyhelp users find what they need while providing market-ers customizable means to suit their goals. For example,during a ten-month period after launching a mobileclick-to-call campaign, a Performics client saw mobile:• Sales increase by 54 percent• ROI improve by 52 percentDedicate budgets to mobile. In August 2012, Performicsaggregate client group dedicated more than one quarterof total paid search spend to mobile, a new record best-ing even the height of the 2011 holiday shopping season.Increased spend led to increased impressions and clicksand in August:• Mobile impressions were 29.2 percent of all impres-sions• Mobile impression volume is now up 300-plus percentyear-over-yearCreate seamless experiences across channels anddevices. Participants want – and expect – a remark-able experience with your brand, whether on a desk-top, mobile device or in-store. While brands maythink in silos, participants do not, so create a seam-less experience for increased customer satisfactionand conversion.The age of participation is upon us and, ready or not,there has never been a more optimal time for marketersto understand and harness the power of the people todeliver optimal performance.Daina Middleton is CEO of Performics, Chicago. Reach herat firstname.lastname@example.org.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 10Making mobile ads engagingBy Doug StovallArecent study published by Forrester Research’sJulie Ask titled, “The State of Mobile TechnologyAdoption,” found that the majority of organiza-This spend includes mobile sites, applications and othermobile-specific activities.A separate survey from the Mobile Marketing Associa-tion recently found that companies are currently spend-ing just 1 percent of their total marketing budgets ontions surveyed have less than $500,000 annually to de-vote to developing mobile services.mobile, but the associationrecommends increasing this to7 percent to take full advan-tage of the medium.These reports paint a prettyclear picture of the mobilemarketing and advertisinglandscape, one in which orga-nizations have small budgetsand must learn to optimizeresults from mobile programs.The novelty of running the first set mobile ads has passed,and brands and agencies must now shift their focus onhow to create engagement and encourage sales.The old theory of spray-and-pray is not only outdated,but completely at odds with mobile’s greatest strengthas an advertising medium, which is personalization.German mobile app maker Trademob recently claimedthat 40 percent of mobile ad clicks are either accidentalor fraudulent.Should this deter marketers from embarking on mobileinitiatives? Absolutely not, and here is why.Mobile ads are good, but mobile ads plus engagementare better.We, as advertisers, must promote the right kinds of clicks,and be able to prove it.Mobile ads rely on impressions to reach a broad audienceacross a number of platforms, devices, operating systemsand screens.Proper rendering is essential to delivering a positivebranding experience and encouraging the all-powerfulclick.However, it does not end there. After the click is themake-or-break moment for a mobile ad.Doug Stovall
Apps are vulnerable to a similar fate – many brands bragabout how many times their app has been downloaded,but what does it mean if it is never opened again?A survey from Localytics found that 26 percent of appsare opened only once. Does that really help branding?The problem with many mobile programs is that the storyends here – with a click or a download. However, it doesnot have to be that way.Clicks and downloads should no longer be primary keyperformance indicators.Here is an example of how brands can take their mobilead programs a step further.A national fast food chain recently ran a mobile ban-ner ad across a variety of mobile content target-ing its key consumer demographics, advertising a newcombo meal.When clicked, the ad offered multiple means of engage-ment including social integration via Facebook and Twit-ter, a restaurant location finder, a link to nutritional in-formation, an offer to join the restaurant’s loyalty cluband a coupon.This was a smart approach because the restaurant wasemploying a number of strategies to engage the customerpost-click and encourage ongoing engagement and sales.The ad was an overwhelming success, generating 29 mil-lion impressions in just 30 days, a 0.97 percent click-through rate, a $4.99 cost-per-action and an outstand-ing 18 percent opt-in rate for the company’s mobileloyalty club.This post-activity action is about re-engagementthrough permission-based marketing and represents realopportunities to develop long-lasting relationships withcustomers. By keeping these interactions contextual andrelevant, they will be appealing to consumers and profit-able for brands.As our fast food chain examples proves, there are manyways to continue the conversation with consumerspost-click.Try offering a coupon, a deal or promotion, an opportu-nity to sign up for your newsletter or loyalty program.Incent them to sign up for continued interactions.When integrated with traditional CRM systems, this opt-in data is invaluable and a big missed opportunity forbrands that focus solely on that initial click or impression.Make everything after the click or install count, so con-sumers actually enjoy the process of being marketed to— so they are looking forward to hearing from you ontheir mobile device.Doug Stovall is executive vice president of sales andservices at Hipcricket, Kirkland, WA. Reach him email@example.com.Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 11
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 12Serving targeted ads: The needle in a mobile haystackBy Anthony IacovoneAs mobile marketers, we are now in the secondgeneration of advertising to mobile consumers,and we are shedding older methodologies thatThe notion of user experience, once an arcane conceptonly relevant to technology and design industry workers,is now in the common parlance, thanks in no small partto the Apple versus Samsung patent battle.It also matters to every consumer with a smartphone, asthe conversation around how to advertise to consumersbegins and ends with the en-tire user experience.In the first generation of mo-bile ad networks, the goal wasto adopt the standard digitaladvertising model and graft itonto the mobile ad space.This makes sense, until one re-alizes that ads designed for thewere more appropriate to the PC industry.PC do not easily conform to amobile device.By tweaking ads to fit smaller screens and combiningmobile ad inventory to make it available to advertisers,the idea was to have a ready-made audience.And for this reason, first-generation ad networks haveworked well enough - $1.2 billion in sales this yearwould attest to this. And, yet, a growing backlashagainst mobile advertising has ensued, with companiescomplaining about the questionable return on mobileadvertising investment.For us to make progress in this second genera-tion of mobile advertising, we need to look at thereasons for why mobile ads have not worked inprevious generations:Ad creative and formats: The immediacy of mobile,and the smaller real estate involved in smartphonescreens, requires creative to leverage the experience inefficient ways.Mobile search and geo-location services enhance a user’saccess to commercial services, and ads should comple-ment, not distract from, this reality.Tracking, or lack thereof: While tracking, targeting,and retargeting is the secret sauce and true potential ofdigital advertising, this digital advertising ecosystem hasbeen built atop the lowly cookie file, a system that doesnot work on mobile devices.Anthony Iacovone
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 13Fifteen years of ad technology has been seriously ham-pered by the mobile platform.Many companies are working on new post-click trackingsystems for mobile devices.However, those mobile tracking systems are still in theirrelative infancy.Given the problems of first-generation mobile adnetworks that we just outlined, what does second-generation mobile advertising offer for the future ofmobile advertising?Mobile advertising is in the midst of great innovationsand constant changes, but there are several second-gen-eration mobile advertising trends that we see.CPMs are not the way to go. The merits of CPM digitalad buys can be argued.However, for the future of mobile advertising, the CPMjust does not work.For mobile ads to truly be effective, targeted and rel-evant, they need to be bought on the individualimpression level.Big Data. Big Data is critical for second-generationmobile advertising.If advertisers are going to purchase targeted ads onan individual impression level, the mobile ad net-works will be crunching massive amounts of data –location, demographic or behavioral – and will be ableto react to changes within that data through real-timemachine learning.Post-click conversion tracking. Advertisers and pub-lishers need metrics to determine the ROI of mobile ad-vertising. We think focusing on the click is short-sighted.What will truly move the needle for mobile advertising isto have strong post-click conversation tracking.If the person clicked, did she ultimately convert or do theaction that the advertiser wanted – purchase, register anemail or download an app?Offering a better user experience through real-timelearning is the proverbial needle in the haystack of BigData, but this is where the mobile customer requires theindustry to move.As marketers and brands increase their mobile ad spend,targeting these precious intelligent impressions is howwe will better serve ourselves in this evolving second-generation scenario.Anthony Iacovone is cofounder and CEO of AdTheorent,New York. Reach him at firstname.lastname@example.org.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 14The success of commerce-enabled mobile adsBy Kathleen GoodwinMobile devices, specifically tablets, offer theunique ability to deliver rich digital contentwithout sacrificing portability or convenience.As such, publishers and advertisers have turned their at-tention to mobile and are taking full advantage of thesedevices by delivering relevant ads to an audience that isalready immersed in a related mobile experience such asonline shopping, reading a digital magazine or perusinga digital catalog.Reaching this qualified audience provides a distinct ad-vantage to the mobile marketer and those that enablecommerce through these mobile ads will be the real win-ners when it comes to inspiring transactions.Why it worksThe success of commerce-enabled mobile advertisementsstems from the interactive andconvenient experience thatmobile provides.These capabilities exceedthose of other mediums.For example, an advertise-ment in a print magazinemay ask the reader to make acall or send an email to makea purchase.Because the reader has to complete the task through an-other venue, chances are, she will not follow through.With mobile, however, the user can click straight throughto the advertiser’s homepage or ecommerce site.Kathleen Goodwin
Users can then easily get detailed product informationthrough detailed descriptions, photos and peer reviewsbefore opting to pay for anything.In addition, mobile allows users to create digital profilesthat allow for personalized communication and targetedexperiences where print media can not.Comparatively, print advertisements are based on ablended audience demographic rather than individualdemographics and purchasing behavior.Recently, Harper’s Bazaar partnered with American Ex-press to launch ShopBazaar, an iPad store enabling read-ers to move from the inspiration of seeing desirable itemsin the magazine’s pages to acquiring them in a fully inte-grated experience, directed in its entirety by its editors.Through the digital catalog, The Bazaar Book, shoppersare able to browse as they would a regular magazine, buthave the ability to purchase items advertised by variousretailers and brands straight from the catalog.As showcased below, shoppers can shop the variousstyles without ever leaving the Bazaar Book experience.Another example of successful mobile advertisements isthe use of native advertising. Also known as extreme ads,these are custom-made to the app or page that the con-sumer is viewing instead ofa standard banner ad.In the example below, Black-Berry sponsored the bot-tom of the comments pagewith an ad targeted to us-ers who have already showninterest in mobile tech-nologies through their pastsearch histories.Facebook users are easilyable to skip over the ad asit is integrated into the rightside of the page inline withthe comments.This causes less adversity and increases the chances forinterested consumers to click on the link.Takeaways to implementToday’s connected consumer is bombarded with adver-tisements wherever they go.Therefore, mobile ads that are not contextually rel-evant or tailored to the consumer’s interests areeasily dismissed.To be successful, marketers need to exceed these expec-tations by delivering ads with the right message, in theright place and at the right time.As the examples above demonstrate, this can be achievedthrough mobile advertising.If you reach your audience with the right ad at the righttime but fail to commerce-enable these ads, your effortscould be totally wasted.Commerce-enabled mobile advertisements present aninvaluable opportunity to increase ROI by enabling pur-chase decisions, and missing this opportunity would be amajor loss for any marketer.Kathleen Goodwin is director of marketing at Zmags, Bos-ton. Reach her at email@example.com.Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 15
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 16Building a digital presence that attracts mobile customersBy Anthony BrattiBy 2015, 50 percent of Web sales will be gener-ated from social and mobile applications, accord-ing to research firm Gartner. It is no longer enoughDevelop a mobile sitethat is simple and easyto navigate.The latest data from SMBDigitalScape indicates 98percent of SMB Web sites arenot mobile-optimized — that ispractically all SMB Web sites.Relying on a standard Website that has been designed forviewing on a desktop or laptopcomputer is not a good strat-merely to have a digital presence. Small and mid-sizedbusinesses need to optimize their digital assets to reachmobile customers.SMBs should consider taking a few basic steps to ensurea positive mobile consumer experience before they beginmarketing to mobile customers.egy for building relationships with mobile consumers.Information renders differently on mobile sites.Also, today’s savvy mobile consumers have high expecta-tions for mobile sites.Consumers want a fast, simple site that pro-vides them with the information they need and arewarding experience.Offering mobile users a poor experience will not onlydrive them away from your site, it will also drive them toyour competition.According to Google, 61 percent of mobile customersturned to a competitor’s site after a bad mobile Web ex-perience and 57 percent would not recommend a busi-ness with a bad mobile site.Allow customers to get in touch with your business.SMBs should have a mobile presence to better engagewith current and potential customers.But being mobile is not enough.Among the essential elements of an effective mobilepresence is providing mobile customers with the oppor-tunity to get in touch with your business.A business phone number, email address, links to yoursocial media channels and a simple way to request moreAnthony Bratti
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 17information should be easy for mobile customers to findand use.Confirm mobile customers can find your location.SMBs want their customers to find them easily and inthe right location.Location-aware devices and apps make it easier thanever for mobile customers to find your exact loca-tion — as long as your business is listed correctly inthe wide range of online directories and databasesavailable today.Marketers should make it a priority to monitor how theirbusiness is listed in online directories. From there, theyshould make corrections when needed.This can be a challenging task for busy SMBs.The good news is there are lots of online services avail-able to do this — often available through trusted mar-keting partners, such as local media companies whereyou advertise.Tap into trusted resources and partners tobecome mobile.Most media companies that provide local advertising forsmall businesses such as Yellow Pages publishers, localTV and radio stations and local newspapers also providea range of online and mobile marketing tools and ser-vices, such as cost-effective mobile apps.Mobile apps allow SMBs to engage directly with cus-tomers through email and social links, conduct mobiletransactions and schedule appointments.If SMBs select a media partner they already do busi-ness with to help them become mobile-optimized,it can streamline the process and remove some ofthe trepidation that comes with adopting a newmarketing technology.SMBs should ask their marketing representative how heor she could help their business get mobile.By 2014, 580 million consumers will be purchasing goodsvia mobile devices, an increase of 50 percent over thisyear, according to Juniper Research.Therefore, SMBs should feel the urgency to be-come mobile-optimized and engage with local cus-tomers if they want to get their share of mobilecommerce dollars.Anthony Bratti is senior vice president ofvSplash, Lyndhurst, NJ. Reach him firstname.lastname@example.org.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 18Home cooking starts with mobile shoppingBy Alicia CerviniOur mission at Allrecipes is to help home cooksaround the world succeed with their everydaycooking goals, no matter the size or scope.While these final triumphs take place in the kitchen,more of the planning and preparation occurs when theyare on the go and in stores.Due to this need for convenience and connectivity, con-sumers in record numbers are relying on their smart-phones as a trusted grocery-shopping companion.The move to mobileAllrecipes.com traffic trends illustrate this new reality. Alittle more than two years ago, less than one percent ofAllrecipes.com traffic came from mobile devices.Now, as smartphone penetration in the United States hascrested the 50 percent mark, more than 40 percent of allallrecipes.com visits are coming from a mobile device.Our community’s adoption of mobile is outpacing indus-try averages, and we project our mobile visits will reachnearly one in two of total visits by early 2013.As a result of this very clear shift in the needs of ourcommunity, we now think of ourselves as a mobile-firstcompany, providing cooks with resources and inspirationat all points of need.The mobile resources we offer to our community include:• Newly optimized mobile sites for all 18 countries weserve.• A suite of top-rate mobile apps across all the majorplatforms, including Allrecipes Dinner Spinner with UPCgrocery scanner, Allrecipes Your Kitchen Inspiration tab-let app, and the revolutionary Allrecipes Video Cookbook.We enable home cooks to move effortlessly from de-vice to device, enjoying seamless access to our collec-tion of recipes, reviews, videos and photos, as well astheir personal recipe box and shopping list. Meanwhile,we have been paying close attention to when and howour community is tappinginto mobile.It is clear that our communityuses different devices at dif-ferent times throughout theirpath-to-purchase.Understanding these patternsensures Allrecipes continuesto provide relevant and usefulresources to our community, inaddition to engaging and ef-fective advertising solutions for brands.Last-mile marketingMobile is the fastest-growing technology used for mealplanning and grocery shopping.In a recent study, 70 percent of the Allrecipes communitywho own smartphones shared that they are using theirdevices while grocery shopping to search for recipes - 50percent - or access a digital shopping lists - 42 percent.According to the Point of Purchase Advertising Interna-tional’s 2012 Shopper Engagement study, 76 percent ofshoppers make their final purchase decision while in-store, offering an unprecedented opportunity for mobileadvertisers to reach consumers and influence purchasingdecisions at the exact point of need.Allrecipes’ mobile solutions therefore offer brands theopportunity to engage with consumers on each step ofthe path to purchase.As media consumption habits shift, advertisers are un-sure how to accelerate brand advocacy, brand sentimentand utility.To make it easy for brands to adapt to evolving industrytrends, and reach consumers on the last mile of the pathto purchase, we prioritized the implementation of stan-dard mobile ad products, IAB Mobile Rising Stars andcustomized HTML5 solutions.Alicia Cervini
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 19Allrecipes also provides brands the option to incorporateour Add to Recipe Box and/or Add to Shopping List func-tionality directly into a mobile banner.As a result, Allrecipes provides a seamless multiscreenexperience that connects our community to our content,and enables advertisers to make their content immedi-ately useful to the consumer.Additionally, content becomes contextually-relevantthrough channel targeting solutions on our mobile sitesthat mimic our core sites. For example, Acme Chicken Co.elects to run its ad on the m.allrecipes.com site targetedto the chicken channel.This means the Acme Chicken Co. placement will onlyrun on recipes containing chicken, and become an im-mediately relevant and useful piece of content for homecooks as they build their meal plans and make their pur-chase decisions. Each of these elements serve to lowerthe barriers to advertiser participation, and reduce thefriction between advertiser and consumer, making the ada welcome and memorable part of a consumer’s planningand shopping experience.The mobile ads have built-in relevance and utility for theconsumer at the exact moment they are trying to answerthe age-old question, “What’s for dinner?”Mobile offers exciting new ways to serve consumers andadvertisers alike, and the potential continues to growas the platform blossoms into a more powerful adver-tising medium. As the technology evolves, Allrecipes isuniquely positioned to place increasingly relevant anduseful messages in the hands of engaged consumers atall points of need – from planning to preparation andultimately purchase.Alicia Cervini is director of mobile monetization at All-recipes, Seattle. Reach her at email@example.com.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 20The mobile consumer: Remapping the pathway to purchaseBy John LimThe mobile device has created a new breed of con-sumer: the mobile consumer. We have not seenthis type of change in human behavior since theAs a society, we are more aggressive and less vocal.We do not hesitate when pulling out our phones dur-ing meetings and dinners. We are starting to change ourforms of communication. Mobile-originated emails andSMS messages often replace phone calls.This new mobile consumer is also affected by thereal-world conditions sur-rounding them, especiallythe weather and, for the firsttime, has the ability to be inboth the physical and digitalworld simultaneously.So, how do we effectivelyhandle this new consumer?The one who will wait in lineto get into a store, but refusesadvent of the automobile. While the Web changed con-sumer behavior, it did not change human behavior theway mobile has.to wait in line after getting in-side? The one who has instantaccess to almost any information needed in the palm ofher hands?The key is to understand that these new consumers re-quire more intelligent, highly relevant communicationand stronger engagement opportunities.Mobile touchpoints, such as QR codes, SMS, NFCand photo recognition allow us to instantly connectthe consumer in the physical world to content in thedigital world.These touchpoints help turn otherwise static items suchas mailers and product packaging into interactive expe-riences, extending the life of the items and delivering amore enhanced experience to the consumer.Allowing these touchpoints to drive consumers to a tai-lored experience in real-time is one of the most powerfulways to successfully monetize the mobile medium.Knowing this, there is a basic set of guidelines when us-ing mobile touchpoints.The first is the actual mobilization of all your traditionalmeans of marketing. Billboards, packaging, print materi-als, email links: all of these should be mobilized.Using this underutilized real estate is the easiest wayto effectively integrate mobile into your marketing mix,with the opportunity for a high return on investment.John Lim
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 21Not only that, but with mobile touchpoints, you can nowtrack all of these traditional touchpoints in one place.Every single touchpoint accessed by a consumer is aninteraction that would have previously been missed and,therefore, is a win.After the consumer interaction, make sure you pro-vide a positive mobile experience by covering all ofyour assets.This is often forgotten, but is crucial.Consumers are using mobile to interact with your brandthrough email, social, Web and more.In fact, many of these touchpoints, including email andFacebook are accessed more frequently from a mobiledevice than online.Therefore, you need to ensure all these work correctlywhen accessed via mobile.If they are not mobilized, the user is like-ly to have a bad experience and because of that,might not interact with your company again inthe future.In the end, it is about the en-tire mobile consumer expe-rience, both traditional anddigital. To ensure success, wemust be more intelligent withour message.It is important to take into ac-count what is affecting the con-sumer when your message isdelivered, including real-worldconditions surrounding them,such as the time of day, theweather and their location, aswell as their past interactionsare important factors in deliv-ering the right experience todrive monetization.Using this information, you can guide consumers to a re-tail or online store based on what is most profitable andlikely to result in a sale. In order to successfully monetizeyour mobile efforts, you must engage this new mobileconsumer, and tailoring the consumer journey is the keyto doing that.John Lim is CEO of Life in Mobile, New York. Reach him firstname.lastname@example.org.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 22Understanding mobile intent, usage key to mobile monetizationBy Bill DinanMarketers are missing out on key mobile mon-etization opportunities because they have notyet put the right strategies in place to track andWhile mobile provides advertisers and publishers atremendous opportunity, marketers should beware oftreating mobile advertising like other ad channels. Toeffectively reach and monetize the mobile audience,marketers must understand mobile searchers’ purchase-timing needs, what factors impact their ad viewing andtheir typical resulting actions.Location mattersAmong the key differencesin how consumers inter-act with mobile versus otherdigital channels, consumersare more ready to make pur-chases with as many as 90percent of all smartphone-based local searches, de-pending on the category,leading to consumer actionwithin the day, according toxAd-Telmetrics.value the calls and leads that are resulting from mobilead programs.Demonstrating the importance of location, up to 84 per-cent of mobile consumers look up a business location,maps or driving directions and up to 73 percent look foror use phone numbers to contact businesses.Location also factors in mobile consumers’ openness toad content.The top reasons that mobile consumers engage with mo-bile ads are local relevancy and local offers, such as cou-pons and promotions.To monetize mobile ad campaigns, marketers must in-clude location information upfront to drive these highquality, ready-to-buy consumers toward a final purchaseand use location-based performance metrics – phonecalls, reservations, map and directions views – to helpmeasure success and ROI.Mobile search behavior differsUnderstanding mobile consumer motivations and cate-gory-specific intent is also important when deciding howand where to best engage with mobile searchers.In the Mobile Path to Purchase Study, we examined mo-bile consumer behavior within three of the top mobilesearch categories: travel, restaurants and auto.While all three categories demonstrate strong mobilepurchase intent, with an average conversion rate of 60-Bill Dinan
plus percent, the timing varied by vertical.Mobile travel searchers focused heavily on price com-parison research and took longer to make a purchase,whereas mobile restaurant searchers were looking tomake an immediate local purchase decision with 87 per-cent visiting the restaurant the same day.Interestingly, mobile auto searchers demonstrated aneven mix of both quick conversions and research.The key takeaway is that mobile ad strategies must con-sider these category-specific behavior and motivationdifferences to reach the right types of buyers with theright ad messages during the purchase cycle.Device nuancesSmartphone and tablet search activities vary.It is also important to consider how mobile consum-ers are using smartphones versus tablets when makingbuying decisions.The Mobile Path to Purchase study revealed that smart-phones are generally used more to find and contact busi-nesses, whereas tablets are used more for researching,price comparisons and reviews.The findings also showed that 68 percent of smart-phone users mostly use their device when on the go,while 72 percent of tablet users mostly use their deviceat home.However, these overall findings can vary by type ofbusiness, so marketers should consider the nuancesof category-specific device usage patterns when de-veloping distribution channel strategies, promotionsand content.Another interesting finding is that search methods dif-fered based on devices used.Local directory apps were most popular with restaurantand auto smartphone searchers, whereas travel smart-phone searchers prefer brand Web sites.Furthermore, tablet users showed a greater preferencefor accessing brand Web sites across all three verticals.There are many things that marketers must do to maxi-mize mobile ad program results, such as understand-ing mobile consumers as a distinct media segment andtailoring their campaigns based on mobile users’ pur-chase-focused behaviors, strong need for local informa-tion and distinct actions based on vertical category anddevice used.With these elements in mind, marketers have an im-mense opportunity to generate tangible mobile ad re-sponse data – both online and offline – and optimizetheir overall mobile ad programs for more targeted,high-quality leads.Bill Dinan is president of Telmetrics, Toronto, Canada.Reach him at email@example.com.Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 23
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 27From rags to riches: The future of mobile advertisingBy Ales GabrovecMobile advertising has always strived to createa meaningful connection between brands andconsumers, but has struggled along the way as itRich media mobile ads, on the other hand, have time andagain proven significantly greater value for advertisers.Rich media worksRecent research analyzing 60 mobile campaigns acrossdifferent formats and devices, hones in on several keymetrics that prove effectiveness of rich media mobile adsacross various industry verticals.Highlights:• Engagement rates for mobile rich media ads average inthe double-digits (12.8 percent), with video and gamingexperiences being the most engaging.• Gaming experiences are highly effective for enter-tainment, with (16.6 percent) of users responding to agaming element.• Users are engaging with social media through mobileads, sharing branded content on Facebook (8.7 percent)and Twitter (12.6 percent).• Direct response features are present in most ads.A click to an external service, such as app store or Web-site is almost always included in an ad.Designing effective adsWhile rich media ads are proven to be effective, thereinitially had little to offer through click-to-site bannersthat are, in many aspects, not very mobile.are several best practices thatwill ensure your next rich me-dia mobile campaign is a suc-cess and even goes beyond thisbaseline of ad performance.Using rich media mobileplatformsThe mobile rich media ecosys-tem can be daunting with dif-ferent operating systems, de-vices screens, mobile Web andin-app publishers, presenting awhole set of challenges that can affect performance.There is no better way to build effective ads than touse a rich media mobile platform, which can be in-dispensable in providing excellent creation tools,guarantee ad reliability, provide reach and offerextensive analytics.Know your goals and pick appropriate verticalfeatures. Having clearly defined goals will help you pin-point the features your ad requires.Picking ad features that drive high engagement in a spe-cific industry vertical will boost the quality and perfor-mance of your ads.• Drive purchase intent through engagement. Gamingworks very well in entertainment.Engagement rate is nearly 17 percent, with 90 percent ofusers completing the games.After playing, users are more than twice as likely to click-through to a site. In retail, product showcases are a must.Youcanexpectengagementratesofmorethan25percent.Showcases keep the audience engaged for longer andget consumers closer to making a purchase.• Leverage the user’s location to direct her to thenearest store.Ales Gabrovec
A store locator is a simple, yet effective way to get usersinto stores as more than 10 percent of users will searchfor the local store within the ad.In entertainment, location awareness can be even moreeffective as up to 15 percent of users will look for ticketsfor their local theater, music show, or sports event.• Use social media ad features to fuel engagement andextend your reach.If packaged correctly, users like to share branded contentfrom ads.Do not forget to include Facebook page or Twitterprofile buttons.It is an easy and effective first step toward bringing so-cial media into your ads - typically 3-10 percent of userswill tap them.Do not stop once your ad goes live. Measure, gain in-sight then optimize your media buy and creative when-ever possible.Optimize placements and targeting, but also the creative.Even simple call-to-action tweaks can result in bigperformance boosts.For example, in expandable ad formats, having tap-to-expand can raise your expansion rates by up to50 percent.Ales Gabrovec is vice president of products at Celtra,Cambridge, MA. Reach him at firstname.lastname@example.org.Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 28
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 29Mobile retargeting: Four things you need to knowBy Heather SearsWhile the promise of mobile advertising has yetto be realized by many brands, the failure hasbeen mostly in the approach, not the medium.Mobile retargeting identifies users and connects themwith personalized ads based on recent activity.This provides brands with the ability to, for example,identify shoppers who have been to their store and retar-get these shoppers with timely and relevant mobile ads.Retargeting also lets brands continuously target pros-pects who are frequently near their store and meet theirunique behavioral targeting priorities, helping retailersattract and convert new customers.The most innovative marketers are also using social andlocation data to uncover user intent, which can be de-rived from what people tweet on their phones and add totheir Facebook posts.Instead of firing ads to mobile users walking down thestreet, brands needs to consider a more strategic ap-proach, such as mobile retargeting.Marketers are alsostarting to use locationdata to identify regularshopping patterns andas an indicator that aconsumer is in the mar-ket for a product.Brands are looking toretargeting to uncoverintent and take advan-tage of the low-costmobile medium to driveloyalty and sales.Let us examine howmarketers are retarget-ing consumers, whatis possible and whatis not.In-app retargeting: Accordingto Google data, the averageAmerican has 28 applicationson their smartphone.Within apps, marketers canidentify current customers aswell as new app visitors anddeliver retargeted ads.Due to the presence of uniqueIDs within apps, and acrossapps within mobile ad net-works, this approach is ideal for increasing conversionthrough multiple touches.However, retargeting across mobile apps and the mobileInternet is nascent due to the lack of consistent IDs.Location retargeting: Using location retargeting, brandscan identify shoppers who frequent a store and connectthem to increase loyalty. It is also an ideal way to findhigh-value prospects who are frequently near a storeHeather Sears
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 30and offer a trial for a product or service.Results show that retailers who engage customers im-mediately after shopping at their location – such aswithin the next 24 hours – and reach shoppers in ad-vance of their next purchase, will receive higher click-through-rates.While some retailers and marketers have relied on a ring-fencing approach, which involves targeting consumersonce they are at the store, retailers that retarget shop-pers when the shopper is thinking, “Where should I go fora new pair of shoes?” and then act on the mobile shoedeal they were offered yesterday, will ultimately win.Social retargeting: Leveraging social data is ideal forunderstanding a consumer and inferring intent. For ex-ample, the difference between someone searching for“Vegas deals” and posting a Twitter update, “I’m goingto Vegas,” is vast.With online search, a consumer could be daydreamingabout a trip to Vegas, with no real intention to hit upsin city. Information posted via social media can providevaluable, timely insights into a consumer’s behavior anduncover marketing opportunities when consumers aretaking serious action.Cross-channel retargeting: Ideally marketers wouldknow what a consumer was searching for on their desk-top and cross-reference that information with theirmobile data.However, challenges still exist in cross-channel targetingacross mobile and desktop use.No persistent cookie or tracking device has been devel-oped, but companies are working on advancing technol-ogy, while still keeping privacy in mind.While all of these approaches will advance the goals ofretailers and brands, consumer privacy practices needto be continually put into place as retargeting becomesmore sophisticated.Heather Sears is vice president of market-ing at Sense Networks, Boston. Reach her email@example.com.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 31Social is mobile and vice versaBy Marko MuellnerNearly 50 percent of users access social media viatheir mobile phones, which means that social au-diences are becoming increasingly synonymousIn fact, with more than 400 million Facebook users ac-cessing the site monthly on their mobile device, it is littlewonder that social network use has eclipsed games asthe number one mobile phone activity and the trend ofsocial on mobile continues to grow.Gartner research finds that there will be 1 billion peopleaccessing social networks via mobile by 2014.While it is clear that the social-mobile customer willsoon be one and the same, knowing how to reach, en-gage and convert them remains far from clear.However, in an effort to streamline the discussion, letus focus on a single, yet important challenge within thisdynamic marketplace - moving social-mobile customersfrom product discovery to exploration and conversion.Most digital marketers think of social as a place for brandbuilding, content and conversation and for increasingloyalty.It is all of these things, but with the launch of FacebookTimeline, all sorts of new rich post types, and the ex-plosion of Pinterest and Instagram, social streams havequickly become fantastic places to promote productsas well.Lesson 1: Product lensWhen marketers start looking at social mobile marketingthrough a product lens they quickly realize that thingslook differently.Customer behavior and expectations are different. Thepath to purchase is different and the way we measuresuccess is different. A product-centric approach requiresa different set of strategies, expertise and tools.A product lens benefits marketers and consumers becausewith mobile audiences.it allows social mobile custom-ers to explore and engage withproducts without leaving theirplatform of choice, all whileoffering a deep, engaging ex-perience that naturally helpsmove customers toward apurchase decision.Lesson 2: Common featuresLet us step away from theidea that social is Facebook orTwitter and begin to considerhow these platforms connect us to our friends, influenc-ers and favorite brands in common ways.When we do this we start to see behavior that makes upa set of social features. The common social features are:• Following/friending• Browsing streams• Commenting, liking and sharing• Posting updates of copy, links, photos and videosThese features should be integrated into every social-mobile experience.Have you ever been in the car and heard a song or a storyon the radio and wanted to share but could not? Beenlistening to a podcast and wanted to follow the guestand leave a comment but could not?Customers get frustrated when they do not have instantaccess to their social features.As customers spend more time on their mobile de-vices, integration of social features into the mo-bile experiences and tools you create becomesmore important.Lesson 3: Customer journeyThe path to purchase for social mobile custom-ers is a bit different than offline or even traditionalecommerce paths.Marko Muellner
The key phases look like this:• Awareness and discovery• Exploration and amplification• Consideration and conversionOften, the path is not linear and customers do all ofthese things across the Web, in social networks, and onmobile devices.Because of these complexities, it is essential that social-mobile marketers make sure that their efforts work wellacross these phases and, ideally, are optimized for Web,social and mobile.Much of the time, adhering to responsive design princi-ples and styles will enable Web-based experiences to re-spond to smaller and smaller screens without degrading.Additionally, many social features are already built-in tomobile operating systems, making sharing from mobileproduct experiences much easier.Yet, the further you go down the path towards conver-sion, the more important it is to remember that tradi-tional ecommerce checkout, for example, just is not areasonable expectation on a smartphone in most cases.When developing strategies and experiences that enablesocial-mobile customers to explore and purchase prod-ucts on mobile devices, it is important to consider alter-native conversions such as:• Add to wish list• Checkout later• 1-click checkout• Mobile coupons and incentives that drive to retailWe have passed the tipping point and there is no turn-ing back. Brands focused on driving discovery and salesdirect to customers, especially 18-35-year-olds, under-stand social-mobile customer behavior and expectationsand the ecosystems is now essential to survival.Marko Z. Muellner is senior director of market-ing at ShopIgniter, Portland, OR. Reach him firstname.lastname@example.org.Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 32
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 33Integrating SoLoMo marketing into mobile effortsBy Timo PlattThe basics include mobile di-rectory and map listings, andoptimizing your Web sitefor mobile.The next level includes mo-bile email and text messag-ing campaigns, QR codesand strategizing for mobilesearch rankings.These first two levels are goodfor display ads and couponing,Mobile marketing changes everything, again.However, as with every new big thing, mobileoffers lots of promise, but is burdened by noise,hype, complexity and uncertainty.but suffer from ineffective conversion rates and erodingprofit margins.Furthermore, marketing that deploys email and text mes-saging is limited to existing contacts in your database orrented lists.Once you have these mobile ad channels covered, brands,retailers and marketers can move on to the hard stuff –mobile apps and social, local and mobile engagement.While these are the most challenging, they are alsothe most lucrative, because they offer the mostpotential ROI.Mobile challengesMobile apps present three challenges.To be useful, a brand’s mobile app must be different fromits Web site and sufficiently entertaining and engagingto be sticky so that your customers will keep the appopen and in the foreground.Mobile apps are expensive and time-consum-ing because they must be developed for numer-ous platforms such as Apple, Windows 8, AndroidTimo Plattand BlackBerry.Finally, because many mobile users have app fatigue, itwill be difficult and slow to develop a growing and loyaluser base.So it is not surprising that many marketerswant to capitalize on the intersection of social,location and mobile services, which has taken on themoniker, SoLoMo.SoLoMo offers a lot of promise, with benefits such asend-to-end personalization, the ability to deliver cus-tomized marketing to targeted audiences, engaging userwith content contextually relevant to their immediate
activity, finding out what they want to buy, guiding themthrough the purchase decision and providing superiorcustomer service.Some of these SoLoMo services are available today fromglobal names such as Google, Facebook and Twitter.More complete services have recently come on the mar-ket from nimbler startups, such as PoKos, foursquare andPinterest.Before selecting a SoLoMo strategy and vendor, market-ers and their clients must balance many factors. Thesefactors include mobile user expectations and businessmeasurement metrics.Marketers must look at how SoLoMo complements or in-tegrates with the other elements of the brand’s market-ing campaign and mobile strategy.Always mobileIt is critical to remember the three A’s mobile devicesare: always on, always near and always dear.The corollary is that users have an intimate and deep re-lationship with their mobile device and they do not wantmarketers to disrupt that relationship.SoLoMo rule No. 1 is to respect user privacy.Rule No. 2 is acknowledging that the user is in chargeof when to engage with your brand. So, in evaluatingvendors, ask yourself these four questions:• Is the user’s phone number or email address used forcommunications?• Is the user’s personal data shared with third parties?• Are the user’s preferences, purchasers or habits usedby the vendor or made available to the merchant orthird party?• Can the user elect to block communications based ontime, place or identity?The original mobile offerings suffered from the sameproblem as early Internet advertising – eyeballs and evenclicks did not grow sales or profits.Brands should also look for SoLoMo tools that can trackand deliver legitimate business metrics, including num-ber of new customers created, incremental revenues,profitable sales and customer satisfaction.It is also important that SoLoMo, as a new mobile chan-nel, complement the other elements of the brand’s over-all marketing campaign.Therefore, marketers should press their internal and ex-ternal social, digital and ad teams first to review howtheir SoLoMo choices will coordinate with plans for ad-vertising and engagement via social networks and otherdigital media.Finally, SoLoMo’s promise has an attendant cost. End-to-end customer engagement carries with it implicitlabor costs.Some of these may be shifted from current departments,such as in-store and online sales, customer support,product specialists and social media staffers.Other costs may be incremental, such as additional FTEs.SoLoMo itself is not driving these new incremental costs,nor is it causing shifts in workplace skills and responsi-bilities. In the big picture, these changes are necessaryfor a brand to reap the benefits of mobile commerce.SoLoMo is simply the channel through which brands cancapitalize on these benefits.So a brand is well-advised to develop financial models toidentify, track and allocate these costs across its existingbusiness.Yet, at the same time, it is both fair and imperative foryour brand to require your SoLoMo vendors to identifyand deliver on their mobile metrics.Timo Platt is founder/CEO of PoKos Communications,Boston. Reach him at email@example.com.Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 34
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 35The Goldilocks analytics strategy: Surviving and mastering big dataBy Victor MilliganWorlds are colliding. OK, maybe not worlds, butcertainly two massive and highly touted trendsare colliding, producing the requisite excite-The first megatrend is big data,and it is all the rage. It is theopportunity to find the needlein the haystack. It is the meth-od to identify the patterns thatsignal the best path forward.The second megatrend is thehyper-growth of mobile ad-vertising, fueled by the mas-sive consumer shift to allthings mobile.Mobile advertising is nowment, hype, overwrought predictions, fear and loathing.living in big data and is the likely beneficiary of bigdata capabilities.So let us cut through the hype and get to the practi-cal realities and possibilities of harnessing big data inmobile advertising.The first part of the story is a cautionary tale.In nearly all big data industries such as finance and tele-communications, the first effect of big data is to over-whelm systems, people and decision-making.It has altered the optimistic strategy of exploiting datato a moderated view of:1. Do not drown in data, such that the recourse is tofund infrastructure to store and manage data, but realanalytic or business gains are limited or deferred.2. Do not surf the data, such that choosing samples thatare too small means that your samples distort results orminimize analytic impact, or that you can rely on ag-gregate data only, missing the extraordinary value ofatomic-level data.Before we talk about the role that analytics has in har-nessing and exploiting the value of big data, it is worthmaking a simple, but important observation: analytics isone of those capabilities that has its own language. Withthat said, let us talk about how mobile advertising canexploit analytics to create value.Goldilocks analytics strategyIn any industry, the goal of analytics is to lever-age big data to guide decisions that accelerate orimprove business.In our example of running a mobile advertising exchange,big data analytics means being able to discover and ana-lyze rapidly scaling impression volumes and more thanVictor Milligan
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 36500 million auctions per day.With our just right logic, we developed a combined dataand analytics strategy to exploit our own big data.This enables us to work at the bid or auction level,uncover patterns that would otherwise be hidden tous, and model different scenarios to use data to makebetter decisions.All of this is done with the expressed goal of driving ma-terial and persistent business improvements for our cus-tomers and ourselves.The resultant analytic model may appear to be a paradox- the ability to discover, analyze and model hundreds ofmillions of auctions per day and the ability to drill downto a single bid at the individual auction level.The paradox is resolved by several key techniques andassets, including:1. A metadata management structure that enables us tomanage big data volumes, while understanding the at-tributes and dimensions of atomic-level data.2. An adaptive cube environment that allows us tocorrelate, slice and dice and find patterns acrossany data.3. Leverageable analytic nodes, essentially commonanalytic functionality such as predictive models, thatwe are able to reuse across our efforts to drive rigorand efficiency.4. A two-pronged visualization capability that allows ourexpert analysts and business users to see, understand,and take action on analytic outputs.The analytic porridgeThe big idea is that mobile advertising, and all marketparticipants, significantly benefit from greater visibility,understanding and control of this market.With that in mind, we organized our analytics to explore:1. Composition: What are the trends and dynamics ofthe different ways we can slice and dice mobile advertis-ing - OS, geography, ad unit type or targeting data at-tribute? What does that tell us?2. Liquidity: What is the level of liquidity inmobile advertising?This could include measures such as the num-ber of bidders, the level of competition per auc-tion, and the correlation of specific types of supplywith demand.3. Valuation: What are the trends as to how buyers val-ue different types of supply? How does that valuationchange due to the scarcity or excess and composition ofdifferent inventory?4. Comparative benchmarks: How do we analyze aset of comparative cohorts and associated benchmarksto understand relative performance and performanceover time?Animating GoldilocksWe, as an industry, have much to gain by greatly increas-ing the level of visibility, understanding, operational con-trols and confidence in the mobile advertising market.Too many business leaders with real intent and needto capitalize on mobile see the industry as complexand opaque.And big data can be a double-edged sword. One cancapitalize on data to really understand how the marketworks, cause and effect and patterns that convert to sus-tainable business gains.One can also drown in data or surf the data withoutgaining any real insight and value.Our Goldilocks plan and just-right logic uses rigor-ous and adaptive analytics to harness big data andget to the specific insights and patterns that empow-er our customers to achieve more and enable high-value liquidity.Victor Milligan is chief marketing officer of Nexage,Boston. Reach him at firstname.lastname@example.org.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 37What can mobile marketers learn from digital advertising’s failures?By Jeff ArbourIf you are a marketer looking at mobile, social and digi-tal as three separate silos, it is time to change yourpoint-of-view.Today’s consumers are a walking digital portal but thatdoes not mean they completely care or understand thedifferences between mobile or Web-based products.If the experience is poor, they may go elsewhere, orworst-case scenario, leave for good.That said, if we do our jobs well, taking care to ensurethat their social and mobile experiences are holistic butdifferent enough to maximize the value of the medium,there is a huge opportunity.But where there is opportunity, there are also huge chal-lenges ahead and it should be noted here that there isfar less room for error in mobile and social than in otherdigital media.Take, for example, the fact that there are 1 billion peopleon Facebook, three times the reach of Super Bowl everyday, but the 30-second spots during the Super Bowl stillsell out every year for $3.8 million dollars each.Mobile is encountering a lotof the similar issues. The audi-ence is there, but the ad dol-lars are not. According to techqueen Mary Meeker, mobileholds 10 percent of a consum-ers’ time but only 1 percent ofthe spend.Similar to Facebook, there isa huge built-in audience, butbrands are still trying to find away to maximize the effective-ness of their ad and marketing campaigns across socialand mobile.Teachable pastWe have already experienced the first wave of $100million-plus mobile ad company exits with Third ScreenMedia, Enpocket, AdMob and Quattro all being acquiredby Web giants that are still trying to see the return ontheir investments.This is shocking to some, considering that social andmobile both now offer scaling and targeting capabilitiesbetter than any other medium and consumers are indi-cating their willingness to interact with brands.Look at the astonishing 87 percent of Facebook userswho have “Liked” a brand.So what seems to be the problem?If you look at the first wave and early days of theWeb, you will see a lot of similarities to what we arefacing now.How do we properly measure brand awareness and howdo we define success?Furthermore, will the lessons learned from Web banneradvertising help us build smarter and more effective me-dia targeting campaigns? And, perhaps most important,how do we engage consumers after they click the ad?Jeff Arbour
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 38From my experience, being able to track clicks is the bestand worst thing to ever happen to digital.We now have a metric to define effectivenessbased on consumer reaction not available in anytraditional medium.However, studies actually show that most people thatclick on ads do so accidentally. So given this, howcan we increase the spend-to-time ratio if we cannotdefine success?One of the greatest aspects of digital is how one canseamlessly follow a user from impression to acquisition.This works well enough for ecommerce companies, butless so for brands or clients that do not sell products.While most brands understand that they need to trackclick-through rates, time-on-site and pages-per-vis-it, they should also be treating all digital propertiesas separate products and looking at user engagement,churn and virality – all the same metrics used in thestartup ecosystem.Once we have the measurement and KPIs defined, let uslook at how we are going to get branded messages infront of the right audience. The next wave of mobile adcompanies are leveraging the unique characteristics ofdevices and the digital zeitgeist to create a unique solu-tion for a new medium.
Two companies that I am looking at carefully are Local-Response and Kiip and how they have created ad serv-ing solutions unique to mobile technology and consumerusage habits.Both companies focus on moments and I love how theyuse technology to identify emotional opportunitiesand then serve appropriate messages - a very humanapproach to solving a technical problem.Connecting consumers and ads based on interests andengaging those users on behavior is the next step in me-dia, but prompting consumer engagement is a differentbattle altogether.In 2006, when mobile was young, we would re-ward users for their interaction with ringtones andwallpapers and see dramatic increases on engage-ment. Rewarding users for their time has been a partof advertising since the dawn of advertising itself.In the early days, consumers were rewarded with written,verbal and, later, video content in exchange for brand-sponsored messaging.The evolution of rewarding users for taking digital ac-tions is now being extended into the mobile medium.Each of these companies are devoting time to exploringhow loyalty programs and CRM can be extended beyondthe cash register.The opportunity is great, but the inevitable success willdepend on the execution, ability to remain sticky anda concentration on being value-focused for allparties involved.Nobody wants another Scamville on their hands, so au-thenticity and transparency will be key in winning backconsumer trust.Jeff Arbour is cofounder/chief marketing officer of Plyfe,New York. Reach him at email@example.com.Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 39
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 40Mobile phones are the ultimate direct marketing deviceBy Michael LevinsohnAt 6 billion and climbing, more people use mobilephones today than own a television, have a creditcard, connect to the Internet, or use a tooth-Given the sheer numbers, mobile phones should be theperfect channel through which multinational brands candirect billions of advertising dollars.However, there is a huge disconnect in the market.According to eMarketer, mobile consumers in the U.S.,spend 11.7 percent of their time on their phones, but ad-vertisers are only spending 1.6 percent of their budgetson mobile advertising.Also, according to eMarketer, the U.S. market for mobileadvertising will be worth $2.61 billion in 2012 and totalmedia spend will be about $116 billion.Simply put, mobile is being shortchanged by around$16.8 billion. Why the big disconnect?Firstly let us look at where the bulk of that spend is go-ing. According the IAB, 34.1 percent of mobile advertis-ing spend in North America is being spent on display ads,48.3 percent on search and 17.6 percent on messaging.Nearly half of the spend is going towards delivering in-app advertisements. The problem is that small ads onsmall screens do not offer a compelling user experience,especially when you did not ask for them. Average mo-bile eCPMs are around 75 cents and on desktop comput-ers, $3.50. Click-through-rates on mobile phone advertsare less than 1 percent.The facts appear to speak for themselves. If mobile ad-verts were performing better, then the eCPMs would befar higher.Apple’s iOS offers around 700,000 apps and the GooglePlay Store around 600,000. Dig deeper and you will seethat games represent 70 percent of the top 200 highest-grossing apps on the iOS plat-form. In the Google Play store,this figure is 75 percent. Appleand Google understand theirbusiness model well and theyare doing a great job of creatinga market and channel for theburgeoning apps market. Buthow is that going to help retail-ers who want to drive user en-gagement and traffic throughtheir stores?brush. There are officially, now more mobile phones inthe United States than there are people.Mobile phones are best used as direct marketing devices,not advertising platforms.The sooner brand owners realize that the key to successlies in following the tried and tested tools developed bydirect marketers, the sooner they will see that mobilephones are the most effective, personal marketing deviceever developed.Here are the fundamental steps to follow, if you want tosucceed in mobile marketing.1. Build a database of opted-in mobile subscribers andintegrate that database with your company’s CRM plat-form, so that you gain meaningful insights into your cus-tomer’s wants, needs and expectations.2. Create marketing messages for your customers thatare designed to work on mobile devices. Do not taketelevision content or online campaigns and try tomobilize them.3. Personalize your mobile marketing campaigns. Usingreadily available technology, you can send a MMS videoto a million customers, with their name in the message.The power of the mobile phone lies in reaching individualcustomers, not in mass marketing.4. Test your ideas first. Producing and airing televi-sion commercials is very expensive, and requires aMichael Levinsohn
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 41large audience.Mobile offers the opposite.Create different campaigns and test them on small audi-ences. Then, when you know what works, invest morebudget in expanding your audience.5. Use mobile as a push marketing channel, not a pullmarketing medium. Use outbound marketing to commu-nicate the value proposition and then direct the custom-er to the best environment for them to access the offer.6. Choose the most appropriate format for the market-ing campaign that you want to run. The options includeSMS, MMS and push notifications.Creating an app and then hop-ing that customers will find itamongst the 1.2 billion appsthat are available does notmake sense.7. Half of mobile subscribers inthe U.S. have smartphones. Donot ignore the other half whostill rely on feature phones.8. Mobile marketing is com-plex. There are thousands ofdifferent handset makes andmodels, and there are five ma-jor operating systems.Work with specialists whounderstand these com-plexities and can guide youthrough them.9. Mobile offers measurabil-ity. Make sure that all mobilecampaigns are tracked andmeasured, then use that datato plan and execute the nextmobile campaign.Mobile phones enable advertisers to send personalizedmessages to a defined audience, measure the responseand hold the agency of record accountable for the per-formance of the entire process.Mobile marketing is also well-regulated, with campaignsrequiring upfront certification and approval. This shouldkeep our mobile inboxes from filling up as fast as ouremail inboxes with unwanted spam. No device has mademore difference to the ways in which we communicatewith one another than the mobile phone, and we areonly just getting started.Michael Levinsohn is executive chairman of ArcherMobile, Seattle. Reach him at firstname.lastname@example.org.
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 42Do not hang up on technology, focus on experienceBy Jeff GundermanMedia convergence is happening, and agencies,clients and media companies are scrambling forthe mobile solutions to enable the extension ofClients that had been happy inthe past with an out-of-homecampaign that was based onshopper traffic, airline passen-gers or cars that drove by thebillboard are now looking forbetter measurement of successand more dynamic ways to en-gage the consumer.Mobile offers both with real-time analytics and sight, soundand motion.their out-of-home campaigns onto mobile devices.Mobile is the great enabler of media convergence be-cause the mobile device is a portal into the digital world.It enables the creation of dynamic digital content toextend the experience with static ads by using sight,sound and motion. It enables a greater user engage-ment, sharing through social media and even redemptionat retail.Technology is too new and is changing too quickly to gethung up on one method of delivery versus another.The fact is, there is no standard and without a standard,the technologies both old and new need to co-exist.In the out-of-home environment you have the ability todeliver content many ways.Content deliery channels include SMS, QR, NFC, Blue-tooth, Wi-Fi and the new StarStar number.You also have the ability to enrich the experience throughaugmented reality and the mobile Web.All of these options have sparked many debates on whichone is best.With the lack of one clear winner, brands would be bestserved by embracing as many as possible in most cases.Instead of focusing on which technology is best, I rec-ommend you focus on how to use as many as possibleto reach your target audience and understand what thereal opportunity is. Let us take a look at key technologyoptions to extending your out-of-home campaign ontomobile devices and enabling integration with both theWeb and social media.Jeff GundermanThis chart above attempts to show you how many con-sumers can engage with each technology based on theirphones and industry stats on usage.• There are more than 311 million people in the UnitedStates and 237 million are 18 years of age or older, ac-cording to the US Census Bureau.• There are more than 327 million mobile devices in theUnited States, per CTIA: Wireless Association.• Eighty-eight percent of adults own a mobile deviceand 53 percent of those own a smartphone as of Feb-ruary 2012, according to Pew Internet and AmericanLife Project.• Seventeen percent of all U.S. mobile phone users nowmostly use their devices to go online as opposed to desk-tops, laptops or tablets, per Pew Internet and AmericanLife Project.• Eighty-six percent of U.S.-owned smartphones are
Mobile Marketer CLASSIC GUIDE TO MOBILE ADVERTISING PAGE 43iPhones or Androids, according to Nielsen.• Twenty-five percent of American adults own a tabletcomputer, per Pew Internet and American Life Project.• Fifty-five percent of adult mobile phone owners go on-line using their phones, according to Pew Internet andAmerican Life Project.An overview of the technologies commonly used without-of-home advertising and some of the value versuschallenges with each:Bluetooth enables you to pro-actively deliver contentwith an opt-in message directly to phones that haveBluetooth set to discoverable.When in an area outfitted with a Bluetooth (proxim-ity marketing) transmitter, compatible phones will sim-ply vibrate or ring and show a prompt on the screento opt-in.It works with most feature phones and with most smart-phones - except iPhones - making it a valuable tech-nology to target the 50 percent of the population witholder style devices -non-smartphones - and more than50 percent of smartphone users.Wi-Fi: Wi-Fi is typically part of a proximity marketingnetwork and from a marketing standpoint, it is often ei-ther a closed site enabling access to only content forthe marketing campaign or it is used by offering freeWi-Fi access and serving ads during your login andusage experience.The biggest challenge is that it requires hardwareinstalls, so is only available in environments that areoutfitted with transmitters.With the high number of Wi-Fi sites available in manypublic places such as shopping malls and airports, theactual usage to access marketing delivery is more lim-ited than with Bluetooth when part of a proximitymarketing network.However, it is advantageous because it does not requireBluetooth and is compatible with more phones. Therefore,combined with Bluetooth as part of a proximity networkmakes complete sense and will help guarantee moreconsumer engagement.SMS: SMS enables you to create campaigns and haveconsumers text to a short code to trigger a return mes-sage that can be a promotion, offer code or URL link to amobile-enabled Web site.It works with all phones, but the end user experience islimited if not a smartphone.One common use is to sign-up for informational mes-sages such as sports scores and weather.In this case banner advertising is often served with theinformational message.QR codes: QR codes once scanned direct you to digitalcontent on the Web.QR codes had a rough start with many versions requiringdifferent applications to read them.