Michael de Souza, Mobext 20121012

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Presentation at the Mobile Engagement and Experience Conference, Hong Kong, 12 October 2012

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Michael de Souza, Mobext 20121012

  1. 1. Mobile ROIMichael de SouzaGeneral Manager, Mobext / Singapore & Malaysia
  2. 2. Agenda•  The mobile landscape –  It’s hard to define ROI, let alone achieve it•  A new paradigm –  The rules of marketing and advertising are changing.•  Examples –  Who’s doing it right?© Mobext 2012 mobext.com 2
  3. 3. THE MOBILE LANDSCAPE
  4. 4. THE MOBILE LANDSCAPEWhat you already know1.  Mobile’s really, really big.2.  It’s changed how we communicate and interact.3.  It’s breathtakingly efficient, cheap and offers a better user experience then ever.4.  The future is already here. –  It’s just not yet evenly distributed© Mobext 2012 mobext.com 4
  5. 5. So, why’s it so difficult to make a business model work?•  For publishers?•  For advertisers?© Mobext 2012 mobext.com 7
  6. 6. Publishers•  Many competing businesses ‘trying to eat the publisher’s lunch’ –  Platforms –  Operating systems –  Device manufacturers –  Ad networks •  All trying to ‘own’ the consumer / ‘own’ the advertiser experience •  Many players are duplicating efforts, while ignoring other areas altogether© Mobext 2012 mobext.com 8
  7. 7. The dismal state of mobile monetisation•  Potential catastrophe awaits publishers who don’t get their business models right.•  Only a few players getting it right.© Mobext 2012 mobext.com 11
  8. 8. HTML5FT.com learnings•  Didn’t just disappear when they abandoned the app store•  Discoverability was no problem –  In fact, it was easier for them to promote the app•  You can forge your own direction is you are prepared to do so.© Mobext 2012 mobext.com 15
  9. 9. Advertisers•  Brands spend very little on mobile –  1% of total ad spend (BUT, this excludes non-media expenditure) –  Most marketing departments have no dedicated mobile resources / time•  The budgets barely cover the basics –  App / mobile site development –  Limited marketing campaigns to support these•  Work is therefore limited to adaptation of PC services / content to the small screen –  Almost no chance of developing for mobile –  Let alone device-specific strategies© Mobext 2012 mobext.com 21
  10. 10. And yet… "Its not about the size of the screen, or the size of the ad, its the size of the audience, and the depth of engagement.” - Rohit Dadwal, MMA Apac© Mobext 2012 mobext.com 24
  11. 11. A Self-fulfilling prophecy?•  Achieving ROI with no investment is impossible –  A recent example from a travel client. •  Total media budget: $3.4m (4 countries, 4 weeks) •  Mobile budget: $80k (2.4%) –  No mobile booking function yet, so client unwilling to allocate more than that. •  Addressable market (3G connectivity / 20-49 years / mobile & tablet) –  CN: 51.7m –  ID: 11.2m –  MY: 2.9m –  SG: 2.3m •  Weighted budget –  CN: $61k –  ID: $13.1k –  MY: $3.1k –  SG: $2.7k© Mobext 2012 mobext.com 25
  12. 12. So what’s the optimal budget allocation, then?© Mobext 2012 mobext.com 26
  13. 13. So what’s the optimal budget allocation, then? 7% on mobile (September’s MMA / Marketing Evolution study)© Mobext 2012 mobext.com 27
  14. 14. Around 7% (adjusting per goal and category)© Mobext 2012 mobext.com 28
  15. 15. SIRFs© Mobext 2012 mobext.com 30
  16. 16. Methodology© Mobext 2012 mobext.com 31
  17. 17. Share of the mix© Mobext 2012 mobext.com 32
  18. 18. Using mobile at launch© Mobext 2012 mobext.com 33
  19. 19. Yet, “the 7% answer” is still not entirely clear•  The myth: “Mobile campaigns reach everybody” –  Don’t mix up numbers (eg SMS reach) in campaign planning –  Each mobile channel is a distinct market•  Mobile can’t be a convenient anytime / any place extension of your other campaigns•  There are numerous distinct communities and behaviours within mobile –  Social networks –  Mobile gaming –  Web content –  In-app content •  …and many more© Mobext 2012 mobext.com 34
  20. 20. The challenge•  To ‘overinvest’ your time and energy in mobile now –  Even if you have far less budget to work with•  Stop looking at your media budget for answers –  Mobile should form part of the actual brand experience, not just advertising•  The Risk: failing to stop and think will damage your brand –  We see it all the time.© Mobext 2012 mobext.com 35
  21. 21. THE MOBILE LANDSCAPEThe industry’s plagued by antisocial practices•  A property developer walks into a bar… –  10,000 SMSs > 2 sales •  Interruptive, disrespectful, unsustainable –  These guys aren’t alone •  Mobile carriers, banks, many others…© Mobext 2012 mobext.com 36
  22. 22. THE MOBILE LANDSCAPE© Mobext 2012 mobext.com 37
  23. 23. THE MOBILE LANDSCAPESwamped peakwater.org
  24. 24. THE MOBILE LANDSCAPEWhy are these problems so prevalent?•  Mobile interaction is one-to-one –  That gives cover for otherwise respectable companies to pass the ‘red face’ test –  Marketing heads plead ignorance (or turn a blind eye) –  Brand guidelines don’t yet cater for mobile –  Recipients tend to ‘avoid the noise’© Mobext 2012 mobext.com 39
  25. 25. THE MOBILE LANDSCAPEInsidious damage•  Bad practices are usually not bad enough to cause torrents of complaints –  It’s a gradual erosion of trust•  The damage done is seldom intentional –  Usually, it’s the result of someone taking a shortcut –  Although sometimes, lack of consideration is acknowledged and intentional…© Mobext 2012 mobext.com 40
  26. 26. THE MOBILE LANDSCAPE‘Spray and pray’•  Mass is no excuse for lack of appropriateness –  “With this many impressions, we’re bound to reach someone in our target market!” •  Is that really what you want?© Mobext 2012 mobext.com 41
  27. 27. THE MOBILE LANDSCAPENo time to think!•  Oh no! They asked for ‘something mobile’! –  Can you put down some quick ideas by lunchtime?© Mobext 2012 mobext.com 42
  28. 28. THE MOBILE LANDSCAPEEnough, already•  The industry badly needs to –  Stop shouting at a faceless crowd –  And start having respectful conversations•  Decide that we’re in it for the long haul –  Build relationships –  Establish trust –  Earn a customer’s lifetime value© Mobext 2012 mobext.com 43
  29. 29. THE MOBILE LANDSCAPEMobile’s personal•  Everything we do affects customers intimately and immediately –  There’s no escape!•  It requires that brands form a new kind of relationship•  It requires an authentic, personal conversation© Mobext 2012 mobext.com 44
  30. 30. THE MOBILE LANDSCAPEWe need to redefine ‘R’•  It’s no longer this easy: Carrier Licensing Media cost Revenue Billing provider© Mobext 2012 mobext.com 45
  31. 31. THE MOBILE LANDSCAPESo, how to redefine ROI?•  We’re playing a longer game now•  We need new measures for success•  It’s getting more complicated –  No longer just about instant revenues•  A reputation built slowly can be damaged very quickly© Mobext 2012 mobext.com 46
  32. 32. THE MOBILE LANDSCAPEThe new model… is something like the old model?© Mobext 2012 mobext.com 47
  33. 33. THE MOBILE LANDSCAPEIt’s an ongoing conversationA deliberate, considered approach spans a range of brand activities:•  Brand exposure•  User engagement•  Building a permission database•  Gaining consumer insight (user data)•  Making a sale© Mobext 2012 mobext.com 48
  34. 34. THE MOBILE LANDSCAPE© Mobext 2012 mobext.com 49
  35. 35. THE NEW PARADIGM
  36. 36. THE NEW PARADIGMThe new paradigm > A new set of rules1.  Listen2.  Interrupt gracefully (if at all)3.  Reduce the noise4.  Be authentic5.  Whisper, don’t shout6.  Understand context7.  Build a platform© Mobext 2012 mobext.com 51
  37. 37. THE NEW PARADIGM1. Listen•  It starts with listening. –  Who are your customers? –  How do they interact (with you, with each other)? –  How do they use technology? –  If unsure about their motivations, ask! –  Ask ‘Why?’ – a lot.•  The result: –  Respectful, relevant interaction.© Mobext 2012 mobext.com 52
  38. 38. THE NEW PARADIGMThe new paradigm > A new set of rules1.  Listen2.  Interrupt gracefully (if at all)3.  Reduce the noise4.  Be authentic5.  Whisper, don’t shout6.  Understand context7.  Build a platform© Mobext 2012 mobext.com 53
  39. 39. THE NEW PARADIGM2. Interrupt gracefully (if at all)•  Advertising has always been brash, but we’ve reached a watershed: –  Shouting for attention is no longer a virtue (especially such a personal, direct channel) –  It’s exhausting, and it makes your brand appear insecure and desperate•  Make sure that interruption is a conscious choice, not a default setting.•  “It’s not advertising if it’s relevant and useful” – focus group respondent.© Mobext 2012 mobext.com 54
  40. 40. THE NEW PARADIGM "Marketing by interrupting people isn’t cost-effective anymore. You can’t afford to seek out people and send them unwanted marketing messages, in large groups, and hope that some will send you money.” - Seth Godin© Mobext 2012 mobext.com 55
  41. 41. THE NEW PARADIGMThe new paradigm > A new set of rules1.  Listen2.  Interrupt gracefully (if at all)3.  Reduce the noise4.  Be authentic5.  Whisper, don’t shout6.  Understand context7.  Build a platform© Mobext 2012 mobext.com 56
  42. 42. THE NEW PARADIGM3. Reduce the noise•  Customers everywhere have access to more data and stimulus than ever.•  We face a wall of white noise – people shouting for our attention. –  Impinging on us in the physical and digital world.© Mobext 2012 mobext.com 57
  43. 43. THE NEW PARADIGMFiltering out the noise makes us happier•  We’ll even pay for it. –  Not just in premium / ad-free versions of sites and apps, –  But to remove ads from our devices themselves...© Mobext 2012 mobext.com 58
  44. 44. THE NEW PARADIGMFiltering tools are evolving•  There are more tools than ever to protect us from unwanted noise –  And there will be more on the way •  … especially with a wide market willing to pay $15 per user per device!•  So, if you’re contributing more noise than value, customers will filter you out, –  and then, you simply won’t exist in their world.© Mobext 2012 mobext.com 60
  45. 45. Caveat: Less noise ≠ less information•  The problem isnt the amount of data that were receiving. –  More useful information is a good thing. –  Its that data needs to be presented more intelligently.© Mobext 2012 mobext.com 61
  46. 46. Simple sells
  47. 47. THE NEW PARADIGMThe new paradigm > A new set of rules1.  Listen2.  Interrupt gracefully (if at all)3.  Reduce the noise4.  Be authentic5.  Whisper, don’t shout6.  Understand context7.  Build a platform© Mobext 2012 mobext.com 73
  48. 48. THE NEW PARADIGM4. Be authentic•  Consumers are looking for authenticity –  Brands with a back-story –  Artisan-made / natural over artificial / ethics over profits•  Accept that you don’t own your brands, your consumers do.© Mobext 2012 mobext.com 74
  49. 49. THE NEW PARADIGMRight now, just two groups connect with mobile users in an authentic way:1.  A handful of global corporations2.  A multitude of small, nimble brands –  They cant help but speak with an authentic human voice –  They have genuine conversations –  Theres no corporate firewall to hide them from view© Mobext 2012 mobext.com 75
  50. 50. THE NEW PARADIGM•  Learning to speak in a human voice isn’t some trick. –  Lip service about "listening to customers" wont do the job either.•  Intelligent, approachable humans exist in (almost) all companies. –  Real human beings with Twitter followings and meaningful Facebook connections. –  Humans who are imminently qualified to make contact with the outside world.•  Don’t handicap your organisation’s ability to deliver genuine knowledge, –  Don’t crank out sterile happy-talk that insults the intelligence of markets who are too smart to buy it.© Mobext 2012 mobext.com 76
  51. 51. THE NEW PARADIGMThe new paradigm > A new set of rules1.  Listen2.  Interrupt gracefully (if at all)3.  Reduce the noise4.  Be authentic5.  Whisper, don’t shout6.  Understand context7.  Build a platform© Mobext 2012 mobext.com 102
  52. 52. THE NEW PARADIGM5. Whisper, don’t shout “In a room full of people shouting, It’s the person who’s whispering Who becomes most interesting.”© Mobext 2012 mobext.com 103
  53. 53. THE NEW PARADIGMThe new paradigm > A new set of rules1.  Listen2.  Interrupt gracefully (if at all)3.  Reduce the noise4.  Be authentic5.  Whisper, don’t shout6.  Understand context7.  Build a platform© Mobext 2012 mobext.com 108
  54. 54. THE NEW PARADIGM6. Understand the power of context… and learn to spot opportunities for value exchange.•  We can be reached at work, on holiday, in a meeting, in bed –  at moments of boredom, excitement, loneliness, inspiration…•  Understand these contexts, –  then identify moments of value exchange.© Mobext 2012 mobext.com 109
  55. 55. THE MOBILE LANDSCAPEFor the first time ever, advertisers have to ask: ‘Why might this person care about my brand at this moment?’© Mobext 2012 mobext.com 110
  56. 56. Put another way… Mobile has enabled you to be closer than ever to your consumers. As marketers, we’ve never had this kind of potential.© Mobext 2012 mobext.com 111
  57. 57. THE NEW PARADIGMThe new paradigm > A new set of rules1.  Listen2.  Interrupt gracefully (if at all)3.  Reduce the noise4.  Be authentic5.  Whisper, don’t shout6.  Understand context7.  Build a platform© Mobext 2012 mobext.com 112
  58. 58. THE NEW PARADIGM7. Build a brand platform•  Campaigns: episodic outbound messages across a channel –  Goal: “tell people about that”•  Platforms: fuelled by the campaigns –  Must be utilitarian –  Must serve a community –  Goal: To be interesting / useful enough to adopt •  Never a hard sell© Mobext 2012 mobext.com 113
  59. 59. Commodification•  Consumers are spoilt for choice, and better informed that ever.•  Overwhelmed with equivalent goods and services. –  Is your hamburger / hatchback / fizzy drink really better than the others?•  Brands need to work harder to differentiate –  They need something more than a great brand story.© Mobext 2012 mobext.com 114
  60. 60. The remedy•  Platforms provide: –  A community, a niche, a sense of belonging –  An identity –  A set of behaviours© Mobext 2012 mobext.com 115
  61. 61. Platforms start with permission•  … which is the nicest thing a customer can give you.© Mobext 2012 mobext.com 116
  62. 62. WRAPPING UP
  63. 63. WRAPPING UPWrapping up1.  Listen2.  Interrupt gracefully (if at all)3.  Reduce the noise4.  Be authentic5.  Whisper, don’t shout6.  Understand context7.  Build a platform© Mobext 2012 mobext.com 120
  64. 64. WRAPPING UPWhere to start?•  Start by allowing customers to grant you permission to talk to them –  And please, don’t be anything like that property developer.© Mobext 2012 mobext.com 121
  65. 65. WRAPPING UPOne final thought “You don’t do mobile because it’s big and because it’s growing. You do it because it works.” - Brian Colbert.© Mobext 2012 mobext.com 122
  66. 66. WRAPPING UPWe’re a small, nimble tribe of mobile specialists
  67. 67. Thank you Michael de Souza General Manager / @mobext Singapore & Malaysia +65 9783 4092 michael.desouza@mobext.com© Mobext 2012 mobext.com 124

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