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Ad:Tech New York 2012 Mobile Marketing Masters Opening Session 1
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Ad:Tech New York 2012 Mobile Marketing Masters Opening Session 1

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My opening presentation, focusing on the state of the industry and the challenge to the industry to close the gap for more growth in advertiser investment. Pls contact me for a version that includes …

My opening presentation, focusing on the state of the industry and the challenge to the industry to close the gap for more growth in advertiser investment. Pls contact me for a version that includes all the builds.

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  • Ladies and Gentlemen, good morning.Let me first of all thank you for coming. Not just because Ad:Tech is one of the industry’s most important platforms where sharing and learning are at the top of the agenda. But also because, as you can see from this picture, we very nearly did not make it.I don’t know exactly where the JavitsCtr is in this picture, but that is because it is hidden in the dark… Yet, just like after 9/11, New York is back and is open for business. And hopefully all other still affected area’s will be back on their feet soon as well.
  • My name is Maarten Albarda, and I like to say that I live my life in full disclosure. I can be easily found on any one of the major platforms and networks, as well as the more obscure ones like So.CL or Google Plus. Sorry, that was a cheap joke…The reason I am on all these platforms is because I am a firm believer of learning by doing. And you can not learn if you are not involved.
  • Until last month I had the pleasure of being VP, Global Connections at Anheuser Busch InBev, the world’s largest beer brewer. I oversaw all consumer touch points, meaning media, digital, sports & entertainment marketing, CRM, licensed merchandise and the like. This meant that a day could involve negotiations with the world’s soccer governing body FIFA about our World Cup contract, discussions with measurement partners like Syncapse or Marketing Evolution, negotiations with ESPN or Facebook about our global presence, etc.And yes, somewhere in there we also talked about mobile.Before AB-InBev, I was at The Coca-Cola Company for over 10 years in a variety of roles and in a variety of places around the world.
  • Today, in my segments, we are going to explore one of the most incredible mass media of our time. With now over 1 billion smart phones worldwide, and with countries like Brazil having more phones than people, we can truly say that the phone is a true personal mass medium.CLICKAnd this medium is beginning to represent a significant business, with IAB reporting an increase in mobile generated revenues of 95% to $1.2 billion dollars, CLICKand mobile shopping representing $ 580 million in sales value. So many are calling this FINALLY the year of mobile.CLICKSome even call it the DECADE of mobile, as consumer penetration has far outpaced Advertiser and Commerce value for a number of yearsCLICKPersonally, I call this the ERA of mobile, because to me it is less about commercial value or the number of phones sold, or us being smart about how we use this fabulous new touch point as a medium to connect brands with consumers and consumers with brands. It is the ERA of mobile because we are unhinging ourselves from cables and desks at an unprecedented rate and carry more computing power in our pocket today then we had on our desks not so long ago.
  • The medium also shows all sorts of promising qualities, such as gender equality. Obviously certain content will drive certain audiences, but in principle, you can get to all of them through mobile platforms.And because of the rise of multi-tasking, mobile is turning people onto, or perhaps even back to old media like TV, where mobile becomes the new instant water cooler.CLICKThe same for print media, who are discovering new ways to bring quality journalism to audiences, with, apparently, as a positive side effect more engagement for the ads as well.CLICKAll of this is driving advertisers in even larger numbers to mobile this year.
  • At the same time, not all is rosy in mobile land. The advertising industry, and especially the kind of advertisers I represent, meaning Fast Moving Consumer Goods companies, who typically have very large budgets at their disposal, have still to truly understand the mobile opportunity.CLICKAccording to a study from the CMO council, 37% of advertisers are still evaluating if the medium offers anything of value to them as an advertising medium. Does this mean that General Motors will soon denounce mobile as something that does not work, like they did with Facebook?CLICKColgate sheds some very honest light on the problem by declaring that it will take time before mobile will be woven into their marketing activities.CLICKThe publishers are also very honest when they say they still have quite a bit of work to do to sort out their self proclaimed messCLICKSo we are all still very much learning, or as the Times put it, re-learning advertising in the Mobile Era.
  • Mobile Ad Spend is now at $ 2.6 BLN, and growing double digitBut that is still about 2% of total ad spend
  • So there is a discrepancy between the mobile world according to consumers and the ad industry.As said before, as consumers we have mobile already figured out.Apart from gas and water, during the Sandy disaster people were scouting their neighborhoods for electricity to charge their devices or to find a signal, indicating their dependence and attachment to mobile as un-missable. Gyms were offering free access to their facilities with “power and shower” offers for displaced citizens.Mobile is with us, always, everywhere, always on.
  • But advertisers are still trying to figure out how to use mobile as a viable advertising platform.I want to share with you the two main reasons for this. Both mistakes originate in the same fundamental thinking mistake regarding mobile.
  • The first problem is that the industry is incredibly silo-ed.One can argue that advertisers are very much part of doing this to themselves. At the same time, agencies large and small are peddling their strategies for connecting with consumers, as are mobile ad networks and large mobile players like Google, Facebook and Microsoft.As a result, as an advertiser you now have to orchestrate a large number of agencies and others who all step forward with slides that state we are now living in the mobile decade, that the time to invest is now, and here is how we propose you, the advertiser, should do that.And I haven’t even touched yet on agencies you might have for sports and entertainment marketing, traditional media owners with a significant digital play like ESPN, the TV networks or even the NYT. Confused? You will be after agency presentation number 5.
  • A second reason, or perhaps the first and foremost reason is that advertisers ask, nay demand, to see the ROI of mobile to their business.Never mind that we have lived through decades of TV advertising without the merest of ROI to brand results. That has changed somewhat since the early 2000’s especially thanks to large advertisers such as P&G and Coca-Cola. But I would like to quote my friend Joseph Jaffe, who when he was asked by a major advertiser to proof that his proposed digital strategy was going to work, answered by asking if the advertiser had any proof that his non-digital strategy was working. It remained eerily quiet in the room.I am of course not saying that we don’t need proof. But I don’t think we can single out lack of proof as the main reason why, as Colgate put it, it is taking so long to weave mobile into the fabric of marketing.
  • There is a challenge around defining ROI, and that is what can we agree is the right definition of ROI.And here, we have to accept that the answer is “It depends”…
  • Sadly, it seems that either set of KPI’s is mostly largely ignored in favor of eye ball counting. That to me sounds like the old days of reach and frequency on TV.
  • As said before, consumers know what they use their mobile device for. It is not a stand alone platform, tool or activity as is shown in this data point from Google’s Multi Screen World research.As you can see, many activities that are started on a mobile device seamlessly continue onto another device. There are similar slides that proof the reverse.
  • And to agencies and advertisers alike, I warn all of you: Think before you app! If you decide that an app is truly going to be so compelling that you can compete successfully with about 1.4 million apps available today across Apple and Android, then Android should be your first stop as Android phones outnumber Apple phones significantly and is growing very, very fast.
  • So, again, as consumers we have this medium figured out. Seamless, easy access, everywhere, anytime, on any one of their devices. And what we need to add to that as to ensure we offer engaging and true two way opportunities to connect.CLICKSo in this entire morning of mobile marketing I am going to start by saying: STOP thinking about it as “mobile”. I have a rule that any proposal that states something like “mobile”, “mobile strategy” or “mobile plan” has to leave the room. Immediately. Having a mobile strategy is about as dumb as saying you have an internet strategy.Yes, we need to ensure we offer the consumer to full access of all we offer in digital through a mobile device. That means that if we plan a website activity, it needs to be fully mobile friendly. If search is part of the plan, it needs to work through any device, mobile included. If we are activating through social media, then functionality and ease of use should have the same low threshold whether accessed on a laptop, tablet or mobile phone device.So that is, to me, the real challenge. Can we, as representatives of the mobile platform, move beyond thinking of ourselves as a silo, and move into thinking of ourselves as an extension of the consumer’s life, and use that as a starting point.
  • So that is how I curated the first two sessions with Ad:Tech. ………..(slide)………….Thank you very much.
  • So onto session one now:
  • Transcript

    • 1. Mobile Marketing:Best Practices for Cracking Today’s Most Intimate Channel
    • 2. Nice to meet youmalbarda: always on
    • 3. Background
    • 4. The year of Mobile Marketing?
    • 5. And it works!
    • 6. At the same time…
    • 7. This might explain:• The good news: – Mobile Ad Spend: $ 2.6 BLN• The not-so-good news: – That is less than 2% of total Ad Spend
    • 8. The discrepancy• Consumers: – 1 billion smart phone users – Always on, always there iPass Infographic
    • 9. The discrepancy• Consumers know how to • Advertisers don’t know how to use mobile: use mobile: – 1 billion smart phone users – 47% of advertisers “dissatisfied” with mobile marketing progress – 9% of all search is thru mobile – 37% still evaluating effectiveness of mobile programs – $850 million spend globally on mTrade – Only 14% of advertisers “happy” with mobile ad results – (CMO Council, Fall 2012)
    • 10. Media AgencyMobile AgencyDigital AgencyCreative Agency Problem #1 Mobile Ad Network
    • 11. And the consumer? I want to be able to find what I need when I need it I want to be able to share what I want when I want toI want to be able to do what I want to do when I want to do it
    • 12. Problem 2: ROI(or lack thereof)
    • 13. ROI – two worldsDirect Sales Indirect Sales• KPI’s (typically): • KPI’s (typically) – Actual sales – Brand Health – Conversion – Brand Love – Value per touch point – Relationship to sales – Etc. – Etc.
    • 14. What “you” are offering
    • 15. What “we” are far more interested in Source: Google The new Multi-Screen World
    • 16. Think before you App!
    • 17. The ChallengeConsumersthinking about easy Stop want seamless and it asaccess. “mobile”.Surely, that is what we shouldprovide. Start thinking about theWith “engaging” and “true two way” interaction opportunities thatthrown in for good measure. the consumer is seeking.
    • 18. With that…• Session 1: – State of the industry – Trends and Expectations – Will we solve The Challenge?• Session 2: – Advertiser experience showcase – Have they solved The Challenge?
    • 19. Breakout Session Presentation:Mobile Marketing: Best Practices forCracking Today’s Most Intimate ChannelSESSION LEADER:• Maarten L. AlbardaSPEAKERS:• Eric Ferguson, Vice President of Digital Client Services for Nielsen• Peter Marx, VP of Business Development, Qualcomm Labs• Mary Sheehan, ESPN

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