Mobile Marketing Dependence Day

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  • 1. INTRODUCTION SUBSCRIBERS, FANS, & FOLLOWERS is an ongoing series of research reports that sets aside theories, assumptions, and widely held beliefs to discover the truth about consumer preferences and behaviors as they interact with brands through Email, Facebook, and Twitter. These unique reports draw on the experience of real consumers, collected through extensive research, consumer focus groups, and online surveys. To date, SUBSCRIBERS, FANS, & FOLLOWERS has explored why and how consumers engage– and disengage—with brands across the most popular one-to-one marketing channels: Email, Facebook, and Twitter. We’ve identified the unique characteristics of each channel and shared key strategies for building an effective, integrated marketing program. In this report, we’ll explore: • The rise of mobile and the growth of the mobile market • The arrival of “Mobile Dependence Day” for consumers as they embrace smartphones • The impact of consumers’ new smartphone dependence on channel preferences and purchasing behavior By taking a closer look at the mobile phenomenon, we hope to provide you with valuable insight into how the landscape of interactive marketing is changing, the importance of engaging users in the mobile environment, and how marketers can position themselves to take advantage of this new platform.2 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 2. OVERVIEW: mobile dependence dayFor years now, we’ve heard proclamations that newfound power and freedom is quicklythat this year will be the “Year of Mobile”… replaced by complete and utter smartphonethen the next year…then the next. Expecting dependence. And for that reason, the arrivalthis highly-touted revolution to arrive with a of each user’s “Year of Mobile” is far lessBANG, we failed to recognize that the “Year of important than their inevitable “MobileMobile” is happening all around us—not as a Dependence Day”—and its impact on ourunified cultural experience, but in a moment culture and our businesses. of personal awakening for each individual, To function effectively in this brave new world,triggered by a single purchase: the smartphone. marketers must embrace one fact: mobileFor more than 40% of the US population, is not a channel—it’s a platform. Or, morethe “Year of Mobile” has already arrived, the accurately, a series of platforms (smartphones,moment the screen on their first smartphone tablets, etc.)—through which marketers canflickered to life. Like fireworks on the Fourth engage consumers in real time, from textingof July, each smartphone lights up its to calling, apps to email, Facebook to Twitter,user’s life with unprecedented functionality, and beyond. As gatekeepers of the cross-connectivity, and productivity. Ironically, channel mobile platform, consumers control your ability to market through these channels. The question is whether your marketing team is prepared to serve the unique needs of these mobile dependents and their devices. © 2011 ExactTarget | www.ExactTarget.com/sff 3
  • 3. the mobile market Just 15 years ago, personal cell phones were a relative novelty. In that short timeframe, mobile technology has advanced dramatically, service and equipment have become extremely affordable, and consumers have been drawn to mobile like ants to a picnic. The fact is, the smartphone market has seen explosive growth in recent years—and, based on market trends, we expect it will continue. In February 2011, comScore reported1 that US smartphone usage had grown by an astounding 60% in the previous 12 months. In addition, the total number of Americans using smartphones rose to 63.2 million in 4Q 2010. artphone o f sm According to the International Data Corporation (IDC)2, the worldwide smartphone market is expected to grow by 49.2% in 2011. This is more than four times faster than the expected o wn growth of the overall mobile phone market—which seems to indicate that current pe ed feature phone owners are rapidly switching to smartphones, while non-cell phone owners are jumping directly to smartphones with their first cell phone purchase. ty According to our own May 2011 survey: • 89% of US online consumers age 15+ own a cell phone • 41% own a smartphone (with email capabilities, web access, and other advanced functionality) • 48% own a feature phone (typically limited to calling and text messaging) • Just 11% don’t own a cell phone Although Blackberry pioneered the development of smartphones, the industry landscape is changing rapidly. As feature-rich competitors like Apple’s iPhone and—most recently—Google’s Android platform have emerged, feature phone makers have struggled to maintain market share. In fact, although Android is a relative newcomer to the smartphone market, its popularity eclipses even the iPhone—likely due to its relative affordability. (Many Android models are offered free with a long-term service contract, while iPhones are not.) Overall, one-third (33%) of US smartphone owners have an Android phone, followed by iPhone at 25% and Blackberry at 19%. Android Windows 33% iPhone Other 5% 25% Blackberry 18% 1. “2010 Digital Year in Review” http://www.comscore.com/Press_Events/Presentations_Whitepapers/2011/2010_US_Digital_Year_in_Review 19% 2. IDC Worldwide Quarterly Mobile Phone Tracker http://www.idc.com/getdoc.jsp?containerId=prUS227628114 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 4. Although Android isa relative newcomer,its popularityeclipses even theiPhone. Overall,33% ofUS smartphoneowners have anAndroid phone,followed by iPhoneat 25%and Blackberry at19%.© 2011 ExactTarget | www.ExactTarget.com/sff 5
  • 5. HOW OFTEN DO YOU USE EACH OF THE FOLLOWING ON YOUR SMARTPHONE? Constantly Several About At Least At Least Less Than Never Throughout Times Once Weekly Monthly Monthly the Day a Day a Day Telephone 1% 2% 31% 38% 18% 10% Text Message 3% 38% 28% 11% 13% Email 29% 24% 13% 11% 5% 4% 13% Browse the Internet 18% 22% 19% 17% 8% 6% 11% Facebook 17% 18% 15% 11% 4% 6% 29% 6% Listen to Music 12% 12% 12% 16% 8% 11% 29% Games 9% 11% 15% 18% 11% 11% 26% Branded Applications (e.g., ESPN, Groupon, Amazon) The smartphone has become 9% 10% 16% 8% 9% 42% a modern day Swiss Army Watch Video 6% 6% 8% 19% 13% 14% 33% knife, putting marketers Maps not only in a multi-channel 4% 4% 10% 22% 19% 12% 29% environment, but a multi- Twitter 2% purpose environment as well. 5% 5% 5% 4% 4% 74%6 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 6. smartphone usage and activitiesWe all know that a smartphone is so much more than a phone. It’s a web functionality? As it turns out, a surprising number of them are—and this multi-browser, an email device, and a social media portal. It can be a mini stereo, functional usage is likely contributing to the arrival of Mobile Dependencea gaming console, a GPS device, an alarm clock, a shopping cart, and a Day in households nationwide.personal flotation device—okay, maybe not that last one…but it’s only a According to a new survey from Prosper Mobile Insights, some 52.9% ofmatter of time, right? smartphone owners say they use all the functions of their smartphone—toThe smartphone has become a modern day Swiss Army knife, putting such an extent that they say, “It’s my life.” Another 30.4% say they use allmarketers not only in a multi-channel environment, but a multi-purpose the basic functions of their device, plus a few apps. And just 16.7% use theirenvironment as well. But how many people are actually using all that smartphones exclusively for calling, text messaging, and email. According to a new survey from Prosper Mobile Insights, some 52.9% of smartphone owners say they use all the functions of their smartphone—to such an extent that they say, “It’s my life.” © 2011 ExactTarget | www.ExactTarget.com/sff 7
  • 7. the smartphone’s big five Five common smartphone functions are far-and-away the most popular among smartphone owners: 1 Calling 2 Texting It’s true! People actually use their Texting seems to be something of smartphones to make phone an “all or nothing” proposition— calls. In fact, calling is actually the people who text tend to do so most common smartphone use. quite frequently. • 31% of consumers say they use their • 38% of consumers surveyed use their smartphones to make calls “constantly smartphone to text “constantly throughout the throughout the day,” while 69% make several day,” and 67% say they text at least several times phone calls each day. In total, 87% report making per day. A total of 78% report texting at least once at least one call per day. per day. • Women 18-24 are actually the least likely to • Only 6% report texting less than once a month. use their smartphones for calling—only 56% say they make calls at least several times per day. “I use all three of these (Facebook, Twitter, and Email). up with my huge family and all my friends, lol). Of course8 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 8. 3 Email 4 Internet 5 Facebook Email is the third most common Web browsing on-the-go is Although not as popular as the among smartphone activities. also a common activity among smartphone functions mentioned smartphone owners. previously, Facebook is the only • More than half of consumers social media outlet used by a (53%) use their smartphone to • 18% of smartphone owners majority of smartphone owners on a daily basis. check email at least several times per day. 29% use their smartphones to browse the Internet report they check email “constantly throughout “constantly throughout the day,” and 58% do so • 17% of those surveyed use their smartphones the day,” and a total of 66% check email at least at least once per day. to check Facebook “constantly throughout the once per day. day,” and 35% check Facebook at least several • Interestingly, web surfing is more common times a day. In total, 50% check Facebook at • Although teens are the least likely to check among 18-24 year olds than among their younger least daily. email on their smartphones, a majority still do counterparts. This is likely due to the limitations so regularly. 20% of smartphone-owning teens placed on teens during the school day—it’s • Both men and women check Facebook report checking email throughout the day, 41% much easier to sneak a text or check an email frequently—approximately two thirds of check email at least several times per day, and than browse your favorite website. smartphone-owning men and women age 34 65% check email at least once per day. and under use their smartphones to check Facebook at least once per day.However, I use Facebook the most—I check it several times a day (gotta keepI have a Facebook app on my phone, and I can’t live without it.” – Kelsey (female, age 23) © 2011 ExactTarget | www.ExactTarget.com/sff 9
  • 9. emerging mobile activities As we all know, smartphone capabilities are constantly expanding. New features, Quick Response (QR) Codes and Barcodes functions, and applications are introduced on a near-daily basis. And although not QR codes—those black-and-white pixilated symbols that seem to be all of these are readily adopted by smartphone owners, our research shows a few popping up everywhere—are just slightly less popular than check-ins. 24% front-runners that seem to be gaining popularity. of smartphone owners (10% of the overall online population) report having Location-Based Services (LBS) scanned a QR code or similar barcode to obtain more information about a product, business, or event. “Checking in” using location-based services on a mobile phone is still not a mainstream activity, but adoption is definitely increasing—and the levels of Comparison Shopping reported usage are somewhat unexpected. Retailers should take note of this relatively new trend, as consumers are • 28% of smartphone owners have used their phone at least once to check embracing the ability to compare prices while shopping in a brick-and- in using location-based services like Foursquare, Gowalla, and Facebook mortar store. 20% of smartphone owners report having done this, and Places. This represents 12% of the overall US online population. utilization is fairly universal for all consumer groups—both men and women in all age brackets. • Women are more likely to use check-in services—37% of female smartphone owners have checked in, compared to 21% of males. Mobile Coupons Along the same vein, 15% of smartphone owners (6% of the overall online • Within the 35-54 age group, 13% of men have ever checked in while population) report having redeemed a mobile coupon, with women being more 38% of women have done so. The difference is likely due to the fact likely than men to utilize this capability (18% vs. 12%). that these women are also in the demographic most likely to consider themselves “Deal Seekers” (as described in SUBSCRIBERS, FANS, & PUSH NOTIFICATIONS FOLLOWERS report #3, THE SOCIAL PROFILE). This emerging capability allows companies to send messages directly to their • This data suggests—contrary to early speculation that check-in services app users, even when the app is closed. Push notifications are especially would be embraced mainly by young hipsters on the prowl—that deal-seekers useful for conveying timely information like breaking news, exclusive sales, are now eagerly gravitating to Foursquare and other LBS providers who offer and sports updates. savings based on proximity.10 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 10. 28% of smartphone owners have used their phone at least once to check inusing location-based services like Foursquare, Gowalla, and Facebook Places.This represents 12% of the overall US online population. which of the following things have you done on your smartphone? Checked the Balance on a Bank Account 34% “Checked In” Using Location-Based Networking (i.e., Facebook Places, Foursquare, Gowalla) 28% “Liked” a Company on Facebook 27% Scanned a QR Code or Barcode 24% Paid a Bill 23% Shopped for Competitive Prices While in a Store 20% Shared an Article via Email 20% Read a Book 17% Watched a Movie or TV Show (e.g., Netflix, Hulu) 16% Checked in for a Plane Flight 15% Redeemed a Mobile Coupon 15% Purchased Tickets to an Event 12% Rated a Restaurant 11% Shared an Article via Twitter 5% © 2011 ExactTarget | www.ExactTarget.com/sff 11
  • 11. PUrchasing behavior Calling and texting and surfing the Web…It’s all well and good, but as marketers, we want to know three things about consumers in the mobile marketplace: • Who’s buying? • What’s prompting them to buy? • How are they making the purchase? Overall, 16% of smartphone users say they’ve made a purchase as the result of a marketing message they received on their smartphone. Android users are the most likely to report making a purchase after receiving a message on their smartphones (21%), followed by Windows smartphone owners (19%), iPhone owners (17%), and Blackberry users (10%). When it comes to figuring out the types of messages that are most likely to drive purchases, four sources lead the way: email, text messages, Facebook, and shopping-related apps (e.g., apps specific to Amazon, eBay, Groupon, etc.). • Without question, email is the most effective mobile purchase trigger. Marketing messages delivered through email and read on a smartphone have driven more consumers to purchase than any other method. 55% of those who’ve made at least one purchase based on a mobile message report acting on an email. • Text messaging (41%), Facebook (35%), and shopping apps (32%) also show a strong ability to drive purchasing behavior.12 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 12. HOW did you receive the message(s) that led to the purchase?* Email 56% Text Message 41% Facebook 35% Shopping Related Application (e.g., Amazon, eBay, Groupon) 32% Twitter 20% Telephone 18% Location-Based Social Networking (i.e., Facebook Places, Foursquare, Gowalla) 15% Non-Shopping Related Application (e.g., Game, News, Weather) 11% *Percentages are based on the 16% of consumers who have completed a purchase as a direct result of a marketing message received on their smartphone.When it comes to figuring out the types of messages that are most likely to drivepurchases, four sources lead the way: Email, Text Messages, Facebook, andShopping-Related Apps (e.g., apps specific to Amazon, eBay, Groupon, etc.). © 2011 ExactTarget | www.ExactTarget.com/sff 13
  • 13. how CONSUMERS MAKE SMARTPHONE-PROMPTED PURCHASES Some interesting and unexpected data surfaces when we investigate the ways purchases can be difficult and expensive, so misattribution will likely continue to consumers choose to complete their smartphone-prompted purchases. plague mobile marketers. Through the Smartphone In Person More than half of the 16% of consumers who’ve made a purchase after receiving 35% of these consumers (about 5.5% of all US mobile consumers) report a mobile message (about 9% of the total US online population) report that they’ve completing their purchase in person. This aligns closely with the original notion completed at least one purchase on their smartphone itself. (This includes of mobile shopping, in which people could receive messages on the go, and purchases made through the smartphone’s browser, directly through an app, or these messages would prompt a visit to a physical store where the purchase through the app store.) This is a critical point for marketers, as it illustrates could be completed in person. how consumers’ comfort level with mobile purchases is increasing, while It’s both fascinating and instructive to explore the correlations between how also highlighting the fact that people who buy as a result of mobile messages are messages are received and how purchases are completed. By looking at how likely to complete these purchases through multiple channels. messaging channels and purchasing channels line up, we gain insight into the On a Computer specific types of messages that are likely to drive specific types of purchases. 43% of these consumers (about 7% of all US mobile consumers) have completed Email Messages their purchase on a desktop, laptop, or tablet computer. This makes tracking Email is most likely to drive purchases either through a browser (the smartphone purchases very difficult, as many effective marketing messages received on browser or a computer browser) or through the app store (as when companies smartphones are leading to purchases from a computer—a fact that may be promote the launch of new smartphone applications). Email isn’t as effective at causing marketers to unfairly attribute purchases to search or direct navigation driving in-person or in-app purchases. activity. Unfortunately, the analysis necessary to properly attribute these14 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 14. 43% Through the App Store on my Smartphone Called the Company to Place the Order 35% Through an App on my SmartphoneFacebook and Twitter Messages 34% Web Browser on my SmartphoneBoth Facebook and Twitter tend to drive purchases that can easily 31% In Person (e.g., In a Store) be tracked on the phone itself, including purchases made throughthe smartphone browser, through apps installed on the phone, and On my Computerthrough the app store. People who act on Facebook and Twittermessages are less likely to go back to their computer to complete 19% 18%the purchase—and neither of these platforms is as effective atdriving in-person purchases.Text MessagesText messages are the most likely to drive in-person purchases—even more so than messages delivered through location-basedsocial networks like Foursquare and Gowalla. A well-timed text candrive store traffic—but marketers should use restraint with this tactic,as texting is still considered a sacred space by many consumers.AppsThere’s no doubt about it—apps drive purchases through apps.Apps represent a closed system on the smartphone, and messagesdelivered through apps don’t tend to prompt purchases throughother channels. However, in-app purchases have the distinct HOW DID YOU COMPLETE THE PURCHASE?*advantage of providing simple, straightforward purchase tracking. *Percentages are based on the 16% of consumers who have completed a purchase as a direct result of a marketing message received on their smartphone. Email is most likely to drive purchases either through a browser or through the app store. Email isn’t as effective at driving in-person or in-app purchases. © 2011 ExactTarget | www.ExactTarget.com/sff 15
  • 15. DECLARATION OF APP DEPENDENCE Do shopping apps Smartphone owners are notoriously “app-happy.” It seems there’s an app—or twenty—for every possible need, and every smartphone owner has a few favorite apps they just can’t cause people to buy live without. more, or are the people Half of all smartphone owners have more than ten apps on their phones—iPhone and Android owners lead the way with an average of 24 and 21 apps, respectively. In contrast, who install these apps Blackberry owners average only nine apps—a figure that may be explained by the fact that relatively few apps are available on the Blackberry platform. already predisposed Shopping apps have become increasingly common as smartphones gain popularity. 56% of smartphone owners have at least one shopping-related to purchase? app on their phones, and 15% have more than five shopping apps currently on their phones. Not surprisingly, those who install shopping apps are also the most likely to have ever made a purchase using a smartphone. • Only 2% of people with no shopping apps installed on their smartphones report having ever made a purchase as the result of a message they received on their smartphone. • Among people who’ve installed six to ten shopping apps on their smartphone, 39% report having made a purchase because of something they saw on their phone. • 70% of people with 11 or more shopping apps on their phone report having made a purchase. The big question is… which is the chicken and which is the egg? Do shopping apps cause people to buy more, or are the people who install these apps already predisposed to purchase? While we can’t get a definitive answer from the data collected, it’s logical to assume that a bit of both are true. People who install shopping apps are by nature “handraisers,” who identify themselves as mobile shoppers when they download and install these applications. Nevertheless, shopping apps provide a convenient purchasing channel; as a result, handraisers are likely buying with greater frequency.16 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 16. Disuse“Apptrophy”While our survey results are in line withother smartphone research, there are somedifferences worth noting. Our survey askedabout currently installed apps, which yieldedan average of 24 for iPhone users and 21for Android users. By contrast, Nielsen’sSeptember 2010 report asked about thenumber of apps downloaded—whichyielded an average of 40 for iPhone usersand 25 for Android users. The differencesuggests that consumers download farmore apps than they ultimately keep.Whether through deletion or disinterest,this “apptrophy”—the death of an app dueto consumer disuse—is clearly a challengefor app developers. It’s not enough to getthe download. Companies that rely on appsas a critical part of their business must alsoget permission from purchasers to continuecommunications through other channels.While in-app communications reachonly active app users, email, text, andsmartphone “push” notifications reach bothactive and inactive users, giving developersthe ability to increase app usage and upsell/cross-sell other products. In the increasinglycrowded space of the smartphone (andtablet) screen, developers who engagein direct, out-of-app communicationswith their customers will have a distinctadvantage over those who don’t. The curefor apptrophy begins with YOU! © 2011 ExactTarget | www.ExactTarget.com/sff 17
  • 17. IMPACT ON EMAIL, FACEBOOK, & TWITTER email facebook twitter Despite the fact that consumers Similarly, use of Facebook— With its real-time nature, Twitter By their very nature, smartphones put tend to view email as a means whether as a social tool or a time- is a natural fit for smartphones. the internet in your pocket and the world of conducting more “formal” or filler—goes up with the purchase And while cause-and-effect is at your fingertips. With such power in important communications, email of a smartphone. Those with unclear (are Twitter users more the palm of your hand, it’s no wonder usage increases with the purchase smartphones are: likely to own smartphones, consumers rely on these tiny devices of a smartphone. Those who have or are smartphone owners for every aspect of daily digital life. In • Twice as likely to check a smartphone are: more likely to use Twitter?), it’s keeping with the SUBSCRIBERS, FANS, & Facebook “constantly no surprise that smartphone FOLLOWERS focus of this research series, • 47% more likely to throughout the day” owners are the most avid we asked consumers to tell us about the check email “constantly • 58% more likely to check users of Twitter. Those with impact smartphone ownership has had on throughout the day” Facebook at least several smartphones are: their use of Email, Facebook, and Twitter. • 30% more likely to check times a day email at least several times • Five times more likely to At a high level, smartphones are • 44% more likely to check a day check Twitter “constantly driving increased utilization of digital Facebook at least once a day throughout the day” communication across every channel. • 8% more likely to check Email, Facebook, and Twitter are all seeing The impact of smartphones on • More than three times email at least once a day increased activity due to the convenience Facebook use is less dramatic more likely to check Twitter and immediacy afforded by smartphones. Interestingly, this trend is even more for teens, although teens with at least several times a day pronounced among teens. While smartphones do check Facebook ª More than twice as likely to teens are likely to check Facebook more often than those without. check Twitter at least once “I use Twitter almost slightly more often than they check their email, smartphone ownership (80% of teens with smartphones report checking Facebook at a day exclusively on my increases teen utilization of email dramatically. While only 50% of least daily, as compared to 69% for those without a smartphone.) While the overall impact of smartphone ownership is phone. It just seems teens without smartphones check email at least once a day, 77% of This may be due, in part, to the important role of Facebook in even more dramatic for Twitter than Email or Facebook, it’s more immediate that teens with smartphones do so. In fact, teens with smartphones are teens’ social lives, which makes them likely to check Facebook important to keep the relative numbers in perspective, way.” – Michael (male, age 20) nearly as likely to check email every day as they are to check Facebook regardless of whether or not they have a smartphone. as Twitter’s user base is significantly smaller. every day (80%).18 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 18. Multi-Channel Approach Helps Scotts Customer Base GROW Through their innovative multi-channel features and benefits of the email program, giving marketing program, Scotts Miracle-Gro has them a reason to sign up. achieved remarkable growth in customer Scotts invites Facebook fans to become email engagement and loyalty. Their creative use of subscribers by incorporating registration info on email, social media, SMS, and mobile apps their company Facebook page—and 50% of has helped them become—and remain—the fans convert! world’s largest marketer of branded consumer lawn and garden products, with an email Scotts has also entered into a unique partnership subscriber base in the millions. with Major League Baseball. In addition to allowing customers to buy the same grass seed “Email is the backbone of our marketing that’s used in their favorite ballpark, Scotts program,” says Kip Edwardson, Director of is able to connect with fans on-site at Interactive Marketing at Scotts. “We’ve got baseball stadiums across the country proven ROI on our email program, so our using big screen video vignettes and overarching goal is to get people signed up for SMS text-in registration campaigns. email by any means necessary.” Need personalized lawncare advice on That proven ROI is no accident. Scotts’ the go? Scotts has an app for that! The robust monthly email program includes My Scotts Lawn app provides personalized highly personalized content based on the advice based on location, a custom lawn care consumer’s grass type, geographic location, calendar, links to coupons and offers, access to and any self-identified weed or insect live customer care, and much more. The app has problems. In addition, Scotts sends seasonal been wildly successful—in fact, users spend an reminder emails designed to drive repeat purchases, and average of seven minutes on the mobile app. other timely messages that create cross-sell opportunities for plant food, weed killer, grass seed, and other products. “For us, it’s all about giving people what they want through their preferred communication medium,” With so much riding on email, Scotts understands the importance of Edwardson tells us. “For many people who like Scotts, email is enough. making it easy for customers to register for their email program through a Others who REALLY like Scotts will download our app. Then there are variety of channels. those people who just rely on our robust web content. And those are all On the Scotts website, visitors receive detailed information about the just fine with us—as long as they keep buying Scotts.” © 2011 ExactTarget | www.ExactTarget.com/sff 19
  • 19. THE EVOLUTION OF MOBILE EMAIL You thought it was tough competing for mindshare email. So we decided to evaluate today’s mobile improvements in smartphone technology and user when laptops were a novelty? Today, your messages email experience relative to the user experience in experience are creating greater parity between are vying for attention on a device that supports not the recent past. We asked our survey participants to mobile devices and desktop/laptop computers. only email, but also text messaging, web browsing, rate the degree to which they agree or disagree with social networking, shopping, gaming, and endless the following statements—the same statements we 2 “I spend less time looking at an individual email on my mobile device than I would other attention-grabbing applications. The good asked about in June 2009, just two short years ago. if I looked at the same email on my desktop/ news is, smartphones make it possible to reach your “My use of email on a mobile device laptop computer.” subscribers via email anytime, anywhere. The bad 1 differs significantly from my use of email news is, now you’re trying to get your message across In 2009, 67% of people agreed that the time spent on a desktop/laptop computer.” on a screen that’s roughly the size of a Post-It note! looking at an individual email on their mobile devices In June 2009, 64% of survey respondents agreed was less than if they looked at the same email on a We’ve already noted that smartphone ownership that their use of email on a mobile device was computer. In 2011, that number dropped to 44%. actually drives increased usage of mobile email—but significantly different from their use of email on a why? And how can marketers use this development First, this suggests that the improved user interface of desktop or laptop computer. In response to that to improve their interactive marketing strategy? mobile email is prompting people to spend more time same statement in May 2011, only 51% agreed. looking at individual emails on their mobile devices. Given the recent improvements in smartphone text While there are still differences in how people use Second, it suggests that while some people may still entry and navigation, we speculated that an improved email on a smartphone versus a computer, the treat mobile email as a tool for inbox triage and quick user experience may play a role in the growth of mobile20 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 20. check-ins, this is becoming less common as more andmore smartphones become a primary email device. This is further evidence that smartphones are no longer viewed as an email triage tool. Instead, 4 “I am as likely to read commercial email (such as newsletters, promotions, etc.) on smartphone users increasingly address emails at my mobile device as I am on my laptop or desktop.”This is especially significant from an email design the point of exposure (i.e., on the smartphone) ratherperspective. Many companies are seeing up to There was relatively little change in how consumers than waiting until they’re on their laptops, as in years30% of their emails opened on smartphones. responded to this statement. In 2009, 53% disagreed past. Smartphones have become an efficient meansConsideration for the small screen is no longer with this statement, while in 2011, 48% disagreed. of both receiving and responding to email—and theoptional for email designers—it’s a necessity. Despite improvements to the user interface, people still user experience on a smartphone has improved to won’t spend as much time reading commercial email the point that it’s no longer worthwhile to wait and 3 “I flag or note (mentally or otherwise) email I read on my cell phone with the intent of act on the email from a desktop/laptop. on their smartphones as they will on their computers.looking at it later on a desktop/laptop computer.” This emphasizes the importance of email design It’s still important for designers to consider the that renders well regardless of the device usedIn 2009, 59% of people agreed that they use their laptop/desktop experience when designing emails. to open the email. Email design must be cross-smartphones as a mental note or flagging tool for While users are more likely to deal with email at the platform compliant—ensuring that the design isemails, with the intent to respond later when they had initial point of exposure, they may access the same engaging and readable whether it’s viewed on a 21”a chance to open their laptop or sit in front of their email from both a computer and a smartphone. monitor or a 2.5” smartphone screen.desktop. In 2011, that number dropped to 38%. (This is cloud computing at its finest!) © 2011 ExactTarget | www.ExactTarget.com/sff 21
  • 21. MOBILE DEPENDENCE DAY Are you getting dirty looks (or worse) from your significant other because your phone is permanently affixed to your hand? Finding yourself more interested in your text conversation than the live one taking place around you? Waking up throughout the night to check your email? You’re not alone. You’ve experienced your own personal Mobile Dependence Day—and once you’ve crossed that line, it seems there’s no going back. People have undeniably become dependent on (or even addicted to) their smartphones, finding it nearly impossible to “unplug.” As we move into the heart of the summer travel season, more and more of us will discover that “vacation” just doesn’t have the same meaning it used to. To put this dependence in perspective, we decided to find out what people would be willing to give up in order to keep their smartphones. In a “desert island” scenario, we asked survey respondents to tell us whether they would choose their smartphone over various other modern amenities, including their car, refrigerator, HDTV, and more. “I am constantly on both Twitter and Facebook and at the computer or my phone pretty much all day. I cannot even guess how many times I check or post because it is constant. I look at email every time I get the alert. I check in on Twitter whenever I can, or when I get a new follower or new reply. That’s mostly on my phone…Definitely this addiction is growing.” – Judi (female, age 32)22 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 22. Percentage of people who would keeptheir smartphone over the following itemsGame Console (e.g., Xbox, Playstation, Wii) 72%Tablet Computer 69%Dishwasher 46%Laptop Computer 40%Microwave 34%Cable/ Satellite 32%TV ProgrammingHD Television 32%Refrigerator 13%Car 8% © 2011 ExactTarget | www.ExactTarget.com/sff 23
  • 23. ly items that won out s (age 15-17), the on :highlights Among teen d r car, a refrigerator, an nts said they over the smartphone were thei2% of all responde ne over artphowould keep their sm among teens, 16% w ould ing their car, satellite TV. H Evenanything else—includ cable/ visi on, cable orrefrigerator, HD tele e ultimate symbol ing, microwave, keep their smar tphone over a car—thsatellite TV programm r, tablet shwashe laptop computer, di the choice between ming console. ult freedom! H Given computer, and ga of young ad just smartphone These folks aren’t rator, 46% of teens wou ld dependent—th ey’re addicted! their sm artphone and a refrige artphone. H in order to keep their sm s would give up Xbox eat out indefin itely. H 72% of teen eir beloved phone. row ave burritos to keep th addictive flavor of mic 70% of te ens would forego the markable dedication to on ses, but both show re red slightly in their resp H Adul t men and women diffe their smartphone to watch en would give up their of men and 65% of wom the creature comforts: 74% ne for a fridge ld ha nd over their smartpho . H 85% of men wou favorite TV sh ows in high definition top priority for both e roadtrip is evidently a 95% of women. H Th to keep th e beer cold—as would vor of a smartphone. H ld give up their car in fa and 3% of women wou gender s—only 10% of men24 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 24. Among teens(age 15-17), theonly items thatwon out overthe smartphonewere their car, arefrigerator, andcable/satellite TV.Even among teens,16%would keep theirsmartphone over acar—the ultimatesymbol of youngadult freedom! © 2011 ExactTarget | www.ExactTarget.com/sff 25
  • 25. conclusion Mobile Dependence Day has arrived, at least for a significant percentage Ongoing evolution of devices and networks will continue to of US consumers. So now what? 6 shape mobile marketing. Domination by smartphones seems almost inevitable in the near future, but consider this… It’s easy to get caught up in the statistics, but the key takeaways for marketers are pretty simple: If US mobile carriers continue their move away from unlimited data plans, consumers will likely become more conscious of their usage Mobile is not a channel. As explained earlier, mobile is a series 1 of platforms that allow for on-the-go communications through and conservative in their use of data-heavy mobile activities like web browsing and shopping. As a result, marketers should be HUGE Email, Facebook, Twitter, SMS, apps, etc. When developing your mobile proponents of more liberal data plans, broader Wi-Fi networks, and any strategy, remember that each of these channels plays an important role. other measures that would ensure that mobile dependents continue Email, Facebook, and Twitter are more important than ever. to have the level of connectivity they desire. The greater the mobile 2 With their convenience and immediacy, smartphones are driving connectivity and reach for consumers, the better marketers will be able increased utilization of Email, Facebook, and Twitter. These channels should to use mobile platforms to drive the interactions that translate into sales be major components of your interactive marketing strategy—but remember opportunities—across both online and offline channels. to consider both the mobile and traditional user experience of each. 3 Comprehensive planning is critical. Today’s consumers aren’t committed to one method of viewing—or acting on—messages, so marketers must respect the variety of mobile experiences and meet people where they are. That means designing “I have apps for Facebook, Twitter, and for both the small screen (smartphones) and the large screen (laptop, tablet, or desktop). Similarly, smartphone owners are making email on my phone, and I check them purchases on their phones AND online AND in stores. Make buying easy for them, regardless of how they choose to purchase. throughout the day. I check Facebook Fight apptrophy! Smartphone users love apps—but they vie for 4 attention in a very crowded screen. Creating an app and getting downloads is not enough—your strategy should include ongoing email every two hours. I check Twitter every and text communications to foster repeat engagement with the app and increase your ability to upsell/cross-sell. half hour for news and sports updates, 5 We’re in a period of transition—albeit rapid transition. Just because YOU have a smartphone doesn’t mean everyone has and my email every two hours or so.” one. Smartphone owners are still the minority—at least for now—so don’t forget to include texting to/from feature phones in your strategy to reach – Gordon (male, age 27) the mobile masses.26 © 2011 ExactTarget | www.ExactTarget.com/sff
  • 26. Ongoing evolution of devices and networks will continue to shape mobilemarketing. Domination by smartphones seems almost inevitable in thenear future.... © 2011 ExactTarget | www.ExactTarget.com/sff 27
  • 27. reach Mobile-dependent customersanytime, Anywhere!As consumers become more dependent on their smartphones, theyincreasingly expect information—including marketing messages—to beportable. So you need to meet consumers wherever they are—at home, inthe office, or on the go. You need a mobile solution that’s sophisticated, yeteasy to use. You need ExactTarget Mobile.From SMS to full campaign support, ExactTarget Mobile makes it possibleto execute mobile programs using the same data set as your email, social,and website programs. Maximize the value of your data, boost your ROI,and reach your mobile-dependent customers with ExactTarget Mobile!Learn more at www.exacttarget.com/mobileThis document may not be copied without the prior written consent of ExactTarget. © 2011 ExactTarget.