Mobile and “phone” used to be synonymous because in recent history, voice was the only way that you could be “reached” on-the-go. First it was beepers, then it was phones and our minutes were incredibly precious. Many families started with one cell phone to take with them in case of an emergency.
Then it became SmartPhone, then the addition of the iPad, GPS, mobile TV apps and social nets so we’ve really moved from a single device to a universe of technologies that enable personal “Mobility.” Think about if I asked your family to go back to one cell phone. “Mobile” has come to mean something very personal and liberating. It has become the platform of our physical and virtual lives.
Today “Mobile” is in fact, really “Mobility” What’s the difference? Mobile is about having the ability to move. Mobility is about the quality of that movement. We’re at a point where almost everything has the ability to move. Thanks to the “cloud” we’re no longer tied to one device or one location for our information, data and services. The next step will be about improving the quality of the experiences we have while on the move. Mobile, as we’ve known it, is no longer. “Mobile” is dead, and onto the era of MOBILITY Everything from Tablets to TVs are getting Android and iOS. Mac OS X got an app store this year. Smart phones will outnumber feature phones in the US this year. The line between “mobile” and “online” is eroding. Mobile data speeds will be equivalent to Wi-Fi speeds in many areas for all of the major U.S. wireless carriers. (They’re all advertising 4G capabilities. Plus, Wifi is becoming ubiquitous).
We’ve reached a place where decreasing costs, increased adoption, ubiquitous connectivity, and improved experiences have pushed mobile – and mobility -- beyond the tipping point. Let me give you the size and scope of the area we’re talking about right now The iPhone costs 178.96 for Apple to produce. The iPhone 3G was advertised at $199, and later $99. Carriers eat the majority of the costs (up to $550) and recoup it through two year contracts. In developing countries, the mobile device replaces other costly infrastructure. In both cases, it means consumers are adopting the mobile devices (and behaviors) at a quickened pace. STATS: 6 in 10 people on the planet having a mobile device (from 1 in 10 in 2000)*; in 2011, smartphone adoption will reach 50% globally and by 2015, mobile users will surpass desktop users. Speed of change to a “mobile” lifestyle is happening faster than PC Web adoption
And the heart of mobility is location. Location is the new keyword. More than 100 million people are already using Google Maps. Foursquare grew by 3400% -- that’s not a typo – in 2010. The company logged more than 381 Million check-ins.
With so many new ways to connect with others and transact in the real world (through mobile devices), consequently, we are now carrying and transmitting and immense amount of data as we move through the physical world. Humans generated more data in 2009 than in the previous 5,000 years. In the next few years, these services will take on even more importance as we synchronize them to emerging opportunities such as mobile couponing, 2D bar-coding, and even in-store comparison shopping
The Promise of Mobility: Companies will be judged not by how they execute a mobile strategy on phones, but on their competency across all screen sizes. When everything in our lives becomes mobile – from behaviors to devices – our definition of mobile will fundamentally change, as will the ways in which we use it. The opportunity is ours, specifically the people in this room. Because the future is mobility – the experience of mobile – and when it’s combined with location-based marketing. It will be the most powerful transactional force we’ve seen.
TRANSITION: New platforms and technologies have unlocked the digital identity of otherwise disconnected objects. We are now living in an entirely “connected” world where we represent our physical selves in virtual ways with constant cross-pollination of the two worlds. This is where the rich opportunity for mobility in the local sphere becomes real and has created a new neighborhood , defined by multiple technologies and platforms that are mobile and location-based. So what is a “neighborhood” anymore?
Redefining the Neighborhood We need to redefine the neighborhood..and our neighbors. Previously, we defined a neighborhood as a physical location. It was the people that surrounded us, the places we frequented close to our homes and what we see outside our windows. Today, the idea of “the neighborhood” is changing. Thanks to mobility the new neighborhood is a combination of the physical zips and neighborhoods around the store, and the virtual neighborhood full of dynamic and changing “neighbors” by day and hour.
As we move our digital persona’s into the new neighborhood, our households have become mobile with us . When I am standing in the middle of North Michigan Ave in Chicago, I’m not just a random body looking in the window of Ralph Lauren. I’m Sean Finnegan, from 60602 zip code, who just checked-in for lunch at SushiSamba, and is on the look-out for a great blazer before my trip to Florida to keynote at Mobile Insider Summit.
Our Neighborhood has become both physical and virtual with the movement of our personal data through time and space. It’s time to act upon the powerful combination of physical and virtual neighborhoods, which are real today. How many of you “checked in” to this hotel physically and virtually? (ALISA TO PULL STATS ON SITE, generate percentage that did both)
Our Neighborhood has become both physical and virtual with the movement of our personal data through time and space. It’s time to act upon the powerful combination of physical and virtual neighborhoods, which are real today. How many of you “checked in” to this hotel physically and virtually? There’s about 120 of you in the room—all of you had to check in physically, but looking across the digital neighborhood, I’m guessing at least 40-50% of you account for these numbers on FourSquare and Facebook Places and Gowalla. I see some of you went to the pool…some of you probably stopped by the bar…
You put yourself out there willingly. This new neighborhood is open to brand engagement: Check out the stats 30% of all social media activity comes from smartphones (50% of Facebook updates come from mobile devices) (Flowtown) 51% of mobile users say they’d share their location with a brand in exchange for a reward of some kind (JiWire) 69% say a bad mobile experience gives them a bad impression of a brand (Harris Interactive). 76% of mobile users say they expect brands to have mobile applications (Harris Interactive).
The New Neighborhood is Ready to Engage: Local is the Arena of Opportunity We work with some of the largest retailers in the country, and discovered that a whopping 80% of retail sales come from within a 14 minute drive of a store. Mobile and “Mobility” have become the “closer” of the local media space. It is targetable, personal, engaging and has the unique ability to produce a local action or transaction. It is typically the only time a consumer is actively “looking” for help, a deal, a benefit from anyone who will give it to them. We have the opportunity to be that connection point between “need state” and “transaction.” TRANSITION : With a new neighborhood that transcends the physical, the local marketing dynamic has suddenly become more complex, but also more engaging and innovative. Imagine that. Local is actually “cool.” The new local decision path crosses physical and virtual, every step of the way. Mobility has fundamentally changed the way we make decisions from home to register.
The New Local Equation is 14-10-3 Mobility’s location capabilities give marketers the opportunity to reach consumers at varied points within their local purchase consideration. We’ve broken this down as “14-10-3.” With constant exchange of data, mobility is the connective tissue that can tell people what’s happening within 14 minutes of where they are right now, offer them deals within 10 yards and help them with what we call the last “three-feet of retail,” where the purchase actually happens.
We now not only know the zips around a store location, but we could also in theory know who’s standing outside the store – or even who’s traveling in our general geographic region -- based on the information they’ve opted to share on their mobile devices. The fourteen minute drive radius is critical to driving awareness and consideration. 14 minutes is not only a timed distance, but it’s the fact that you’re outside of the scope of transaction. You’re getting a service and a value in terms of what’s available, product price.
OnStar - OnStar is an application with a series of services that allow for a variety of benefits to a user to effectively fall in love with the brand and appreciate its value through the utility. It’s directions. Unlocking your car. If your car gets stolen, it can slow your car down. Vehicle diagnostics of your car. By design you’re effectively starting a new, unspoken love for the product. It helps your life. Groupon – Groupon is more precise and tactical. It can give you a daypart delivery in an Opt-In capacity. You know you’re getting a Groupon, and there’s a regional proximity, and behavioral consideration. Groupon delivers deals related to what you’re interested in, all beginning with the mapping of your location, which informs the messaging and the deal that you receive.They’ve expanded into the virtual neighborhood, allowing users to share the daily deals through a variety of social media. Finally, Groupon’s smartphone app, uses the device’s location-based service to list a user’s purchased deals based on their current locations. It truly brings the virtual neighborhood into reality.
10 yards - Learning, playing, deciding In the last ten yards, Mobility becomes part of the interactive process of learning and growing brand love. Our connected mobility acts as a facilitator of brand experiences in the physical neighborhood.
AR Door created layer Audi A1 for Layar Augmented Reality _Audi Russia – AR Door and a Russian advertising agency ‘Rodnaya Rech’ created and published a layer for an augmented reality browser Layar to promote a new model of the car Audi A1. Layar provided real-time digital information about a person’s surroundings simply by pointing a mobile phone in different directions. Facebook friends were able to map the location of the cars using their Faсеbook account and a mobile phone with GPS, a camera and a motion sensor based on iPhone OS or Android . When going to the locations and putting their phones up, they were able to find the AR Audis before they were on the market. http://ar-door.com/en/2010/09/ar-door-razrabotala-layar-sloy-dlya-audi-a1/ http://www.youtube.com/watch?v=xV-euU8hZGM The map with the location of the car is available in the Facebook application. 5 Russian cities take part in the competition: Moscow, St. Petersburg, Kazan, Ekaterinburg and Nizhny Novgorod.
Airwalk : Y&R created a mobile campaign that directed to kids to their favorite skateboarding parks to find a “virtual pop-up store,” in Venice Beach and Washington Square Park. Once they took a photo of the AR shoe, they receive an exclusive promo code to purchase Airwalks online or in store. http://www.psfk.com/2010/11/mobile-platform-goldrun-allows-airwalk-to-execute-the-worlds-first-invisible-pop-up-store.html Venice Beach and Washington Square Park, they were instructed to take a photo and receive an exclusive promo code for purchase.
L’Oreal / Brand advertiser + Superdrug L’Oreal promoting launch of new hair care line Elvive Geofences around 700 Superdrug stores in the UK Promotional offer sent to O2 customers that have opted-in to receive location-based Health & Beauty offers
Magic Window Have any of you been to the Emerging Media Lab? It’s a Smart House based in LA that is dedicated research and development in the latest communications technologies. If you haven’t been there, come find me after—they do tours which you should definitely get when you are in LA. The Lab developed “Magic Window,” a technology that enables customers to interact with a brand or product without even going into the store. They can “try on” clothes, “like” a product on Facebook, or make a purchase using mobile payment.
Ralph Lauren Rugby Window is an example of this 10 yard concept. Through both the app and the store windows, you can customize a shirt from the Rugby line with patches and lettering, then buy it, email it, post it to Facebook or save it. Perhaps the coolest part is that you can actually see what the shirt would look like on you by uploading a photo. It lets you adjust your skintone, or switch your hairstyle by shaking the app. Once you create your avatar and shirt, you can put them on a “crest” (above) and submit it to be shared in a public gallery, where you can also view and rate other people’s creations. http://www.psfk.com/2009/09/make-your-own-ralph-lauren-rugby-shirt-through-new-app-interactive-window.html
The last three feet – transact, purchase In the last three feet, our mobility makes the transaction process seamless, informed and even fun. We’re looking at 2011 to become the year of the mobile wallet.
In the coming year, we’re likely to see an explosion in the increase of payments through the cell phone. The introduction of Near Field Communications, which lets smart phones talk directly with cash registers, will come close to eliminating the credit card completely. We are already seeing national brands adopt on-the-go payment methods to grow consumer brand loyalty through convenience. Starbucks announced recently that they will introduce a mobile payment system in 6,800 stores throughout the US.
STATS: 2010 holiday season saw huge leaps in mobile usage indicating shoppers increased comfort with mobile apps and platforms. Mobile barcode scanning TRIPLES on Black Friday Paypal cites 310% increase in mobile shopping on Black Friday 73% of mobile users prefer to use their smartphones for simple tasks rather than interact with an employee 2D Barcodes and Mobile Couponing are just simple examples of how mobility is bringing ease and even “fun” to the last three feet of retail. Eliminating the need to clip coupons, print your airline ticket or ask for help with product information.
Speaking of Mobile wallets, anyone remember Pay-by-Touch? Perhaps one of the greatest ideas and fails in the last decade. Pay-by-Touch debuted in Chicago grocery stores and gas stations in 2006 and enabled people to link up credit cards with their fingerprint; essentially creating a device free mobile wallet. But America just wasn’t ready for it. I think Pay-by-Touch was just a little ahead of its time, but the technology is there for biometric payments, interactions and mobile experiences—It’s a little “Minority Report,” but something to be aware of as the “last three feet of retail” continues to be changed by technology. So keep in mind that there may be a point where the personal device is no longer necessary for mobility of information.
TRANSITION: Within that 14 minute drive time of a sale, there’s a myriad of opportunities to engage the “new neighborhood” across traditional and digital/mobile platforms.
This is how we do it. As a Marketer, where do you start? A New View of the Neighborhood Just as an example, here’s how we’re taking a location-based planning approach that accounts for the variability of the “new neighborhood.” We begin right in the heart of the trade area, where 80% of sales are generated.
FIND: We identify the right potential customers and areas of high performance, working with our client’s most valuable customer profile. This helps us to determine where the physical and virtual neighborhoods combine to create a powerful arena for marketing that drives a local transaction.
FIND: We identify the right potential customers and areas of high performance, working with our client’s most valuable customer profile. This helps us to determine where the physical and virtual neighborhoods combine to create a powerful arena for marketing that drives a local transaction. Enhanced Profiling provides an interpretative understanding of Target Customers - in terms of geographic proximity, competitive impact and demographic & psychographic characteristics – by building predictive models at the ZIP Code level and below that “solve for sales” .
The next step is to uncover the media types that customers are most responsive to by connecting demographics, lifestyle/lifestage variables and attitudinal factors with media usage and advertising utility, enabling us to target media in the local market where it is most relevant and least intrusive . Media Receptivity uncovers the media types customers are most responsive to by connecting demographics, lifestyle/lifestage variables and attitudinal factors with media usage and advertising utility, allowing you to target media in the local market where it is most relevant and least intrusive.
Technology: Through our technology, we’re able to scale this process across thousands of stores, and importantly, optimize the local mix using real-time sales feedback to ensure the local marketing is dynamic, time-sensitive and successfully driving transaction. We account for things like weather, drive-time, competitive couponing, local economy and local media opportunities (such as Geo-fencing networks, geo-social, local search etc). Just as each customer wants a unique experience, each store is faced with a unique virtual and physical neighborhood.
Matching up “Local Mobility” and the “New Neighborhood.” How can mobile planners and providers change to succeed in this new local space where mobility creates a new neighborhood of shoppers and potential sales?
Start with Geography: Assess the physical and virtual neighborhood and build out from there. Recognize that every step of the local path may have a unique engagement that drives brand love and store sales. Keep utility at the core– The most used and most beloved mobile brands provide value. When I’m on-the-go, I want information, entertainment, insight and maybe some tips about where to get some great Chinese food. Recognize that in the local space, consumers are “pulling” messages – applications, texts, deals, what have you – to them. We have to give them something relevant and practical. Organize Planning Teams to Meet the New “Mobility” ANA Stats. According to the ANA/MMA study, only ¼ of mobile campaigns are “successful.” Largely due to the inability to measure or understand success. Store-level measurement is key in the local arena, and frankly, with the 14-10-3 format, you should be able to align the local mobility strategy and the desired transaction. The study also revealed that Mobile planning is done by the digital team, in a lot of cases, versus a mobile specialist. This is the wrong kind of “integration.” Mobile used as a distribution platform is gross underutilization in the local sphere. You need your team to see the opportunity of the new mobility as a dynamic builder of brand engagement, utility and transaction. monitor your local effectiveness in the local sphere, measurement doesn’t have to end at “engagement.” partner with your client to take it all the way to sales. Treat customers like guests. Just because they’ve opt-ed in, doesn’t mean you’re relevant or wanted at all times. When you are “let in,” messaging, relevance and timeliness are of the utmost importance. Have a real-time presence: Refresh content and keep customers coming back for more. You don’t want to be in the pool of apps that are used once and then forgotten. Use Mobile as the “closer:” When putting a multi-media plan together, inter-weave the capability with the rest of your plan, knowing that local mobile is the closest to the consumer and to the point of sale. Use this to your advantage.
own the neighborhood! moving from mobile to “mobility” Sean Finnegan, CEO, Geomentum
L’Oreal: new product introduction <ul><li>L’Oreal promoting launch of new hair care line </li></ul><ul><li>geofences around 700 Superdrug stores in the UK </li></ul><ul><li>promotional offer sent to O2 customers that have opted-in to receive location-based health & beauty offers </li></ul>
1. Find the right local customers <ul><li>enhanced profile index </li></ul><ul><ul><li>Store Location </li></ul></ul><ul><ul><li>140 Plus </li></ul></ul><ul><ul><li>110 to 139.99 </li></ul></ul><ul><ul><li>75 to 109.99 </li></ul></ul><ul><ul><li>40 to 74.00 </li></ul></ul><ul><ul><li>Less than 40 </li></ul></ul>
building the neighborhood media plan by channel Medium Media Plan Rationale Newspaper Focus highly targetable insert in Hispanic pubs Online ZIP targeted using PPC models Mobile + “ On sale today” shopping list apps OOH + Use for mobile activation