A CLASSIC GUIDE
 Mobile Marketer
 THE NEWS LEADER IN MOBILE MARKETING, MEDIA AND COMMERCE
                                ...
CONTENTS


     PAGE                                                   PAGE
     3      EDITOR’S NOTE: Mobile marketing ga...
EDITOR’S NOTE
    Mobile marketing gains stature
    By Mickey Alam Khan
       he outlook for mobile marketing, media and...
LIFE’S GOOD

Expect 100-150 percent growth in mobile budgets
By Richard Ting
      oodbye, 2009 – you were a great year fo...
As an industry first, Volkswagen decided to forego traditional      The return of marketing in mobile marketing
advertising...
IPhone applications work for some audiences, but SMS and            payments experienced a 650 percent increase from that ...
Monday
                                                                      through
                                     ...
AD NETWORKS
Mobile ad networks can expect more consolidation
By Dan Butcher
   n 2010, the mobile ad networks space will c...
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Agencies, brands prepare for mobile advertising clutter
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BANKING AND PAYMENTS
Financial institutions to embrace mobile services
By Chris Harnick
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CARRIER NETWORKS
Wireless carriers to ramp up on-deck advertising
By Dan Butcher

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COMMERCE
Mobile commerce to evolve consumer shopping habits
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CONTENT
Struggling to stand out in the mobile content arena
By Chris Harnick

      s more applications stream into the va...
COUPONS
Mobile coupons will make the cut for consumers
By Jim Buckley

     he current economic climate has changed the sp...
(multimedia messaging service) couponing facing advertisers          By tracking coupon use and redemption, as well as lev...
Mobile coupon applications that use          U.S. smartphone adoption increased 63 percent to more than
                  ...
DATABASE/CRM
Mobile database/CRM initiatives to help drive sales
By Dan Butcher
      rands large and small are using the ...
EMAIL
Email marketers to focus more on the small screen
By Dan Butcher
      rands and marketers will be more focussed on ...
GAMING
Monetization strategy key issue for game developers
By Chris Harnick
    he mobile gaming sector, dominated by the ...
INTERNATIONAL
A global snapshot of mobile marketing’s evolution
By Draftfcb

    he world will be a more hospitable place ...
Overall, there has been an increase in the acceptance of ad-      percent are using their phone solely for its talk capabi...
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
Mobile Outlook 2010
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Classic Guide from Mobile Marketer on Mobile Development (February 2010)

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Mobile Outlook 2010

  1. 1. A CLASSIC GUIDE Mobile Marketer THE NEWS LEADER IN MOBILE MARKETING, MEDIA AND COMMERCE TM $395 www.MobileMarketer.com Mobile Outlook 2010 TM Sponsored by
  2. 2. CONTENTS PAGE PAGE 3 EDITOR’S NOTE: Mobile marketing gains stature by Mickey Alam Khan 25 GAMING: Monetization strategy key issue for game developers 4 LIFE’S GOOD: Expect 100-150 by Chris Harnick percent growth in mobile budgets by Richard Ting, R/GA 26 INTERNATIONAL: A global snapshot of mobile marketing’s evolution by Draftfcb 8 AD NETWORKS: Mobile ad networks can expect more consolidation 37 LEGAL: Expect additional legal challenges as by Dan Butcher mobile matures by Gonzalo E. Mon, Kelley Drye & Warren 10 ADVERTISING: Agencies, brands prepare for mobile advertising clutter 38 MANUFACTURING: Will all mobile phones be by Giselle Tsirulnik smartphones in 2010? by Dan Butcher 12 BANKING AND PAYMENTS: Financial institutions to embrace mobile services 39 MEDIA: Mobile will not save the print industry by Chris Harnick in 2010 by Chris Harnick 14 CARRIER NETWORKS: Wireless carriers to ramp up on-deck 40 MESSAGING: Nothing compares advertising to ubiquity of SMS marketing by Dan Butcher by Giselle Tsirulnik 16 COMMERCE: Mobile commerce to evolve 41 MUSIC: Mobile will continue to drive consumer shopping habits innovation in music by Giselle Tsirulnik by Chris Harnick 18 CONTENT: Struggling to stand out in the 42 SEARCH: Will 2010 be the year of content arena mobile search marketing? by Chris Harnick by Giselle Tsirulnik 43 SOCIAL NETWORKS: Social media networks and 19 COUPONS: Mobile coupons will mobile go hand-in-hand make the cut for consumers by Chris Harnick by Jim Buckley, Valpak 44 SOFTWARE AND TECHNOLOGY: Augmented reality, smartphones and bar codes by Dan Butcher 22 DATABASE/CRM: Mobile database/CRM 45 TELEVISION: 2010 will be about keeping up initiatives to help drive sales with the audience by Dan Butcher by Chris Harnick 23 EMAIL: Email marketers to focus more on the 46 VIDEO: Mobile video gets into marketing’s small screen big picture by Dan Butcher by Giselle Tsirulnik PAGE 2 Mobile Marketer MOBILE OUTLOOK 2010
  3. 3. EDITOR’S NOTE Mobile marketing gains stature By Mickey Alam Khan he outlook for mobile marketing, media and commerce in 2010 of mobile commerce. Better phones, easily navigable mobile sites T is just like this edition’s cover: peachy. with transaction capabilities, more confidence in mobile payment security and hyperbolic press will simply boost the prospects for As Mobile Marketer editors and reporters Giselle Tsirulnik, Dan mobile shopping and buying. Butcher and Chris Harnick explain in their succinct analysis of mobile marketing, brands and agencies are now completely alert Retailers and marketers will discover fresh uses of SMS, mobile to the potential of the medium to influence branding and cus- sites, applications and mobile coupons to drive traffic in-store. tomer acquisition and retention. Opted-in SMS databases will continue to build. Mobile Marketer’s Mobile Outlook 2010 is designed to supply Overseas, mobile marketing is at various stages of development, brands, agencies, publishers, retailers and mobile marketing firms as Draftfcb’s excellent international roundup shows. That chapter with the necessary intelligence to make smart decisions to include is a must-read. mobile into the multichannel marketing and retailing mix. … but tears as well It is quite clear from recent market activity – Google buying AdMob With all the hype and exuberance, expect some pinpricks. and Apple absorbing Quattro Wireless, Apple iPad and Google Nexus One launches, eBay’s record $500 million in mobile commerce last Concerns over privacy and targeting will be further heightened. year – that mobile is no longer considered a niche medium. Carriers will need more pushing to accelerate the common short code provisioning process. Carrier networks will strain to bear data Buoyed by results of mobile campaigns initiated last year, many traffic that is growing almost in line with Moore’s Law. brands are expected to ramp up their spending from six figures to seven. Richard Ting, mobile chief at No. 1 interactive agency R/GA, Also, Apple, Amazon, Google, Microsoft, Nokia, Dell and other projects that mobile budgets will grow this year between 100 per- manufacturers and software companies will vie to promote their cent and 150 percent. own walled-garden mobile devices. So standards for mobile con- tent and commerce will rend apart. On a tear … Of course, with growth comes upheaval and a change in status And let’s not forget the maze of lawsuits that these same manu- quo. So expect some mobile sectors such as ad networks to un- facturers are lobbing at each other, crying foul over copyright law. dergo more consolidation. Expect more legal wrangling. Wireless carriers will face even more pressure with the increased In other words, mobile is beginning to look just like a regular mar- consumption of mobile Web. The jury is still out whether con- keting medium. sumers will pay for mobile news content, while not hesitating to fork out 99 cents for a song or application. We hope you enjoy this read, and are emboldened to take the next step in mobile marketing. Phones from all sorts of manufacturers, new and old, will domi- nate headlines. So will new mobile devices such as the Apple iPad Many thanks to our editorial staff, Mobile Outlook 2010 colum- and others of its ilk. nists and ad sales director Jodie Solomon, as well as art director Rob DiGioia, who worked on this edition and, as usual, summed The big story this year will be the growing consumer acceptance this effort best: “It’s not Outlook – it’s look out!” 401 Broadway, Suite 1408 Rob DiGioia New York, NY 10013 Mickey Alam Khan Dan Butcher Jordan Crook Director, Editorial Tel: 212-334-6305 Editor in Chief Staff Reporter Editorial Assistant Development Fax: 212-334-6339 mickey@ dan@ jordan@ rob@ Email: news@mobilemarketer.com mobilemarketer.com mobilemarketer.com mobilemarketer.com mobilemarketer.com Web site: www.MobileMarketer.com For newsletter subscriptions: http://www.mobilemarketer.com/ newsletter.php Giselle Tsirulnik Chris Harnick Jodie Solomon Senior Editor Editorial Assistant Director, Ad Sales For advertising: giselle@ chris@ ads@ http://www.mobilemarketer.com/ mobilemarketer.com mobilemarketer.com mobilemarketer.com cms/general/1.html For reprints: reprints@mobilemarketer.com Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com, Classic Guides, webinars, events and awards. ©2010 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission. February 4, 2010 PAGE 3 Mobile Marketer MOBILE OUTLOOK 2010
  4. 4. LIFE’S GOOD Expect 100-150 percent growth in mobile budgets By Richard Ting oodbye, 2009 – you were a great year for the mobile The iPhone also gave industry cre- G industry. The amount of chatter, buzz and general awareness of the arena skyrocketed to previously unseen levels. atives reason to pause and imagine the infinite possibilities of this bur- geoning medium. As more brands began to better understand the strength, ef- Who would have thought that one fect and ubiquity of mobile, they also began to reserve thin year ago I would be using a mobile slices of marketing budgets specifically for the medium. phone to shop for clothes through the Gilt Groupe application, watch On top of that, technological advances in handsets and carrier live baseball games through the network speeds, along with the proliferation of application Major League Baseball application, stores, helped to open the doors of a once-creatively stagnant and unlock rental cars using the Richard Ting, VP/executive arm of advertising. Zipcar application? creative director of mobile & emerging platforms, R/GA Let us reflect on the monumental progress the industry has The progress is mindboggling, inspi- made over the past 12 months, and spend a moment looking rational and incomparable. forward to what may come in 2010. Brands building digital ecosystems My top thoughts for 2009: Gone are the days when mobile was treated as just a stand- alone medium. Smart brands and agencies understand the im- R.I.P. dumbphones portance of creating fully integrated and complementary In 2009, smartphone growth was unprecedented. experiences across various digital mediums. Every major carrier nationwide now has a go-to smartphone By integrating channels, brands can get more bang for their with access to an application store, enhanced browsing fea- buck through the re-use of media assets, which leads to easier tures, GPS capability, an unlimited data plan and connectivity long-term maintenance. into existing social networks such as Twitter and Facebook. Marketers want consistency of brand message and experience Even non-smartphones (also known as “dumbphones”) have across each digital channel. begun to deliver on these more advanced features, thus fos- tering an even more widespread adoption of mobile Web and Consumers now expect to be able to type in a brand’s Web mobile application services. address into their mobile browser and view a fully mobile-op- timized site. Brands that are not delivering on this base-level Price points for smartphones have also significantly dropped, experience risk alienating their mobile-savvy consumers. making the barrier of entry into the smartphone world almost non-existent. Mobile can outperform other mediums Due to increased recessionary pressures in 2009, marketers IPhone application explosion began to shift budgets from traditional advertising to more There is not much that can be said here that the general pop- measurable digital mediums such as mobile. ulation does not already know. More than 3 billion downloads, 140,000-plus applications – the numbers speak for themselves. Accountability and ROI were paramount this past year, and countless case studies emerged from the mobile landscape to However, the iPhone revolutionized the mobile industry and showcase the industry’s ability to outperform other mediums. forced the hand of everyone – from handset manufacturers and carriers to application developers – to be more creative One important case study to highlight was the launch of the and innovative in order to stay in the game. 2010 Volkswagen GTI. PAGE 4 Mobile Marketer MOBILE OUTLOOK 2010
  5. 5. As an industry first, Volkswagen decided to forego traditional The return of marketing in mobile marketing advertising, relying solely on an iPhone application to promote For the last few years, the mobile industry has mostly relied on and launch the new model. To date, the application has seen standalone, one-off mobile campaigns based on ill-funded re- more than 2.1 million downloads. quests by clients with surplus budgets at year’s end. Whether or not this is a trend for the industry remains to be As mobile gains in strategic importance, we will begin to see seen, but it could be the campaign that leads to more copycat sounder, insight-driven mobile marketing campaigns that tie executions in the near future. back into the larger strategic and creative brand experience. Google buys AdMob, Apple nabs Quattro Wireless The discourse in the mobile marketing industry will shift from The effect of Google’s purchase of mobile ad network AdMob being overly focused on carriers and technology vendors to and Apple’s buy of Quattro Wireless remains to be determined. more focused on creative and marketing strategy. But at $750 million and $275 million respectively, it is hard to ignore the importance of With that said, I am not discounting the importance of under- Google’s third-largest ac- standing carrier restrictions, standards and the various assort- quisition and Apple’s first ments of technology platforms out there. mobile ad buy. But the No. 1 question we all need to ask ourselves in 2010 is, Mobile display advertising “What is the best experience that we can build for consumers is growing, and while it that creates a deeper brand engagement for that consumer?” still faces challenges cen- tered on effectiveness, this It is a question that has been ignored for too long by mobile acquisition serves as vali- marketing practitioners. dation to the industry-at- large that there is a future Larger budgets for mobile for paid display advertising In terms of growth, 2009 was unprecedented for the industry, in mobile – an idea that but it was just the beginning. In 2010, I predict close to 100 has caused tremen- percent to 150 percent growth in mobile budgets. dous excitement in the mobile realm. Brands will begin to increase their mobile marketing spend to fund better planning, strategy, creative work and analytics – Google sees the future of allowing for more quality, integrated work to take place in mobile advertising taking the medium. off. However, in my opinion, brands in the mobile space must look beyond paid media and embrace owned and earned By the end of 2010, expect to see a doubling of mobile staff media, as well. size, budgets and the number of projects that agencies will produce. Overall, 2009 was a great year, but we have barely scratched the surface of what is possible in mobile. Create fluid solutions Massive fragmentation still exists across the industry. There Top predictions for 2010 are still many different platforms, devices, carriers and varied While mobile has been slow to take hold for several years now, regional mobile adoption rates. 2009 saw the perfect convergence of factors that encouraged the industry to feverishly embrace this next great medium. Providing multiple entry points into a mobile campaign will Expect to an even greater explosion of growth in 2010. Here allow brands to access larger audiences. Brands must provide are my top predictions for what to expect: the right solutions for the appropriate audience. PAGE 5 Mobile Marketer MOBILE OUTLOOK 2010
  6. 6. IPhone applications work for some audiences, but SMS and payments experienced a 650 percent increase from that of the mobile Web need to be leveraged for those without iPhones or previous year. other smartphones. Owned and earned media emerge for mobile Understand your audience and design and build accordingly. Despite the Google/AdMob and Apple/Quattro Wireless deals, There is rarely a one-size-fits-all solution available for mobile. paid media is not the only game in town for mobile. In 2010, expect more brands to embrace owned and earned media. Mobile and commerce converge and grow Expect retailers to continue to leverage mobile to convert In the same way that brands have owned destinations for the shoppers into buyers. Web, I predict that the same will be true for mobile, as more brands build out their mobile site platforms. The ability to influence and aid a purchase decision at that crucial point of sale will drive growth in this area. In addition, expect more social brand experiences in mobile to drive mobile-initiated earned media for a brand. The statistical evidence so far is staggering. According to a recent Deloitte survey, 55 percent of users said that they will Rise of non-iPhone applications use their mobile device to find store locations and 45 percent We are starting to see a bit of competition from Android and of users will use their devices to research prices. Research In Motion as both platforms closed out 2009 on a strong note. Recent case studies and user studies point to even more suc- cess in this area in 2010. Motorola is on track to sell the one millionth Android-pow- ered Droid, which has surprised many by quickly developing In 2009, eBay CEO John Donahoe said that he expected eBay such a large following in a matter of months. to generate more than $500 million in mobile- based commerce. The iPhone may still be king of the hill, but as more brands de- velop strategies to connect with wider audiences, not devel- On Black Friday of 2009, eBay’s PayPal announced that mobile oping applications for the Android and BlackBerry platforms PAGE 6 Mobile Marketer MOBILE OUTLOOK 2010
  7. 7. Monday through Friday. Click HERE for your free subscription to the Mobile Marketer Daily e-newsletter. And HERE for Mobile Commerce Daily. will not be an option by the end of 2010. For every ad agency out there, now is the time to invest. Grow your existing creative teams so that they are diverse TM enough to create and design for mobile. Mobile Marketer THE NEWS LEADER IN MOBILE MARKETING, Start converting your Web-based programmers so that they MEDIA AND COMMERCE can also handle mobile programming duties. The demand is there and the growing pains needed to handle this demand will pay huge dividends in 2010 and beyond. Market researcher Berg Insight predicts that mobile will ac- Mobile count for 11.7 percent of the total digital ad spend by 2014. Commerce From where I sit, I think those numbers are conservative, and I am sure others in the mobile industry will agree. I Daily THE NEWS LEADER IN MOBILE COMMERCE Richard Ting is vice president and executive creative director AND RETAIL for mobile and emerging platforms at R/GA, an Interpublic Group-owned interactive agency in New York. Reach him at richard.ting@rga.com. PAGE 7 Mobile Marketer MOBILE OUTLOOK 2010
  8. 8. AD NETWORKS Mobile ad networks can expect more consolidation By Dan Butcher n 2010, the mobile ad networks space will continue to feel Mr. Johar said. I the after-effects of Google’s acquisition of AdMob and Apple’s purchase of Quattro Wireless. Besides AdMob, Quattro Wireless, Jumptap and Greystripe, other major players in the mobile ad networks space include Expect more consolidation in the space. Moves such as the Millennial Media, Microsoft’s MSN Ad Network, Mojiva, Nokia Google-AdMob and Apple-Quattro deals could encourage Interactive Advertising, AOL’s Advertising.com and InMobi. more online players to join the mobile advertising space. Brands rely on networks to attract eyeballs and publishers rely “Both deals highlight the need for any strategic player in dig- on them to fill their inventory. ital media to have a mobile advertising solution in place,” said Michael Chang, CEO of Greystripe, San Francisco. The world’s biggest brands are working with mobile ad net- works for campaigns. For example, Adidas, Nike, Coca-Cola “We expect big media and carriers who have been on the side- Co., PepsiCo, Jaguar, Procter & Gamble Co.’s CoverGirl and lines for mobile advertising to increase their in- Comedy Central all tapped mobile ad networks terest in the space along with the digital media in 2009 for their ad campaigns. companies like online ad networks and portals,” he said. “The mobile space is evolving quickly as new competitors enter the space and new devices Deals such as these make big brands aware and operating systems gain traction,” said that mobile advertising dollars are no Nicole Leverich, director of corporate commu- small potatoes. nications at AdMob, San Mateo, CA. “This pres- ents our industry with great opportunities, and “As [Google chairman/CEO] Eric Schmitt has 2010 will certainly be an exciting year said in the past, mobile advertising will net big- in mobile.” ger revenues than online,” Mr. Chang said. “Every company needs to make a bold play on Ads add up mobile or risk being left behind.” With new devices hitting the market and con- sumer adoption of smartphones rapidly grow- Networks in play ing, ad networks are going to see more While there are parallels between mobile and interest from marketers in the mobile online, mobile is a medium unto itself, and the advertising space. ad networks can help provide brands with ed- ucation, as well as reach. While the various mobile ad networks may disagree about who the top player is in the space, they all agree on one thing: Google’s acquisition of AdMob was significant because a lead- the outlook for mobile advertising in 2010 is bullish. ing Internet company decided it did not have the mobile ex- pertise it needed in-house. “We foresee continued growth in mobile advertising in 2010, which will benefit all members of the ecosystem—advertisers, Paran Johar, chief marketing officer of Jumptap, New York, agencies, publishers, app developers and networks,” said Lynn forecasts that Microsoft and Yahoo will also acquire mobile Tornabene, New York-based chief marketing officer of ad networks. Quattro Wireless. “The carrier play can help them become a more media-centric “No matter whom you are trying to reach—gamers, moms, organization, the Apple play can help them monetize unpaid business execs, in-market auto buyers—you can target them free apps, while Microsoft and Yahoo recognize that to effectively on the mobile Web and in applications, at scale,” compete with Google they need experts in the field,” she said. I PAGE 8 Mobile Marketer MOBILE OUTLOOK 2010
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  10. 10. ADVERTISING Agencies, brands prepare for mobile advertising clutter By Giselle Tsirulnik dvances in targeting, in- budgets across nearly all A creased browser and device capabilities, and richer met- rics are what will drive the mobile category ranges. In 2009 some of the largest advertising industry forward brands used mobile to reach their in 2010. target audience. Advertisers and publishers created mobile destina- In 2009 some of the largest brands tions, as mobile delivers perform- in entertainment, consumer pack- ance on brand impact, interaction aged goods, retail and telecommu- and conversion. nications integrated mobile advertising into their media plans. A vast developer community grew, Expect to see even more brands which propelled smartphone man- jumping onto the mobile advertis- ufacturers to quickly react to con- ing bandwagon in 2010. sumer demand, causing disruption in the device industry. “We are bullish on mobile adver- tising, as we’ve been year over And, when Google and Apple year since our inception in 2006,” said Mack McKelvey, vice chose to buy versus build a mobile ad network, it confirmed president of marketing at Millennial Media, Baltimore. “There that mobile is a distinct market from the wired Web, with an won’t be a year of mobile because mobile is here.” enormous opportunity for advertisers. In 2010 brands will integrate mobile into their media spend, New entrants as it was an effective and efficient medium to reach and en- Some expectations for 2010: gage consumers in 2009. • Rich media ad units will proliferate For example, automaker Honda's mobile banner advertising • Augmented reality will become popular campaign to promote the launch of the Insight hybrid model • Number of campaigns will increase achieved a click-through rate of 27 percent. Honda was able • More multichannel efforts will include mobile advertising to build a mobile database of interested consumers and drive • Mobile Web will become more cluttered with ads them to its mobile site via the mobile banners. • Metrics and measurement will become better • Consistency and screen issues will continue to be challenges Bigger budgets A Millennial Media study found that agencies and brands are “Entering into 2010, we already see huge demand from new confident in the mobile campaigns they execute. When asked entrants into mobile, as well as those advertisers who have whether their mobile campaigns met or exceeded expecta- run successful campaigns this year,” Ms. McKelvey said. “Ad- tions, 87 percent of agencies answered yes. vertisers will benefit from network buys that help them access more than 70 million unique users, with either precise or Additionally, 97.8 percent of agencies surveyed said that mo- broad targeting solutions. bile advertising is a valuable or indispensible part of the media plan, and all the brands felt the same. “There are numerous roles that mobile can play in advertisers’ overall media planning, several that no other medium can When probed for specifics, 25 percent of brands anticipate match,” she said. “In 2010, mobile will take its place as a spending less than $5 million on mobile advertising in 2010, prominent and permanent component of the digital up from 12.5 percent in 2009. Agencies expected increased media spend.” I PAGE 10 Mobile Marketer MOBILE OUTLOOK 2010
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  12. 12. BANKING AND PAYMENTS Financial institutions to embrace mobile services By Chris Harnick n 2010, consumers and financial institutions will become your mobile phone in the United States via Near Field Com- I even more comfortable with mobile banking and payments technology. munication, as chip-prices, handset turnover and point-of- sale build-out will continue to push the vision of buying a soda with your mobile phone to 2011 or 2012,” said Ron Hir- Consumers continue to adopt the son, cofounder and senior vice president of products and mar- services, but security is still an issue. keting at Boku, San Francisco. Mobile banking and payments will continue to give global access to un- Small businesses and merchants will continue to benefit from derbanked and unbanked consumers. services such as Verifone’s iPhone mobile credit card reader. “We believe the mobile banking and Last year saw smaller financial institutions such as Texas’ Frost payments industry is a massive mar- Bank and CU*Answers, a credit union organization, roll out David Schwartz, head of ket opportunity that has the poten- mobile banking services such as alerts. corporate and product tial to continue to take off in 2010,” marketing, Obopay said David Schwartz, head of corpo- Macrogrowth to micropayments rate and product marketing at Obopay, Redwood City, CA. It is obvious this sector is poised for growth, but will the car- riers continue to miss out? “Mobile technology is already impacting the banking industry, and in the area of payments we believe it can have transfor- The carrier networks do not want to become banks, but con- mational consequences for people of all economic back- sumers are using micropayment services for virtual goods and grounds,” he said. “Adding mobile payments to the mobile social networks. The huge response to SMS appeals for Haiti banking offerings in the market will do for mobile banking relief efforts are proof. what bill pay did for online banking. Obopay’s Mr. Schwartz said in 2010 one of the biggest chal- “Mobile banking will be a useful tool that people frequently lenges companies in this market face will be the adoption and take advantage of in their daily lives, and it provides banks increased use of micropayment services and keeping up with a sticky service to increase their customer satisfaction with demand. and reduce their churn. Mike Dulong, cofounder and Banking on mobile senior vice president of busi- The global mobile banking market will hit $202 billion by ness development at Billing 2012, per Edgar and Dunn. More consumers will use mobile Revolution, Seattle, said 2010 banking than online services by 2015, according to Mercatus. will be a period of explosive growth for the mobile Mercatus also found that banks can improve customer acquisi- commerce space. tion by 60 percent by including mobile in their suite of services. “Consumers will adopt mobile Given the growth the mobile banking and payments sector credit-card-based commerce has seen in 2009, more developments will be introduced as much more quickly than mar- the technology continues to improve. ket researchers have fore- casted — this is going to Near Field Communication use has slowly been growing na- move very quickly,” Mr. Du- tionwide, but do not expect consumers to fully embrace the long said. “Retailers will technology this year. scramble to create secure, commerce-enabled “This will not be the year for physical-world purchases using mobile stores.” I PAGE 12 Mobile Marketer MOBILE OUTLOOK 2010
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  14. 14. CARRIER NETWORKS Wireless carriers to ramp up on-deck advertising By Dan Butcher he biggest opportunity for wireless carriers in 2010 will “It should be part of every marketer’s integrated advertising T be to generate revenue by ramping up on-deck advertis- ing. If they do so, mobile advertising will experience an explosion. mix,” he said. One trend to look out for this year is the rise of emerging mar- kets. The sheer number of subscribers cannot be ignored. Carriers face many challenges, not the least of which is deal- ing with the double-edged sword of surging mobile Web “In 2010, we expect that in emerging markets, mobile operators, usage, which drives data revenues but at times pushes their who are under top-line pressure due to declining ARPU and in- networks beyond capacity, affecting the user experience neg- creasing customer churn, are going to aggressively pursue sub- atively. Carriers expect the upgrade to 4G networks—WiMax scriber data-driven marketing strategies to promote the right and LTE—to eventually solve those issues. products to the right customer segments at the right time,” said Vinod Vasudevan, CEO of Flytxt, Trivandrum, Kerala, India. “The increased acceptance and usage of smartphones, includ- ing the iPhone, combined with advertisers’ increased sophis- “They realize that acquiring more customers no longer guar- tication in using these devices to reach their customers, is antees higher revenue, as evident from third-quarter revenue something we’re very excited about and see as a growing reporting of Indian operators,” he said. “Focus will be on gen- trend,” said Greg McCastle, senior vice president of advanced erating incremental revenue from existing subscribers.” ad solutions at AT&T, Dallas. ROI proof “Mobile is becoming a line-item in marketing budgets—mobile In the end, it all comes down to measuring results and quan- advertising is now on the table and an integral part of the tifying return on investment. mix,” he said. “The outlook for 2010 is exciting.” “Be it in emerging or Western markets, the value of mobile Carriers want to avoid becoming a dumb pipe at all costs, and marketing will be fully appreciated only if operators have an they must diversify their revenue streams to compete. accurate method to track responses across channels and measure ROI,” Mr. Vasudevan said. Additionally, carriers have an unbelievable amount of sub- scriber data to offer brands in terms of targeting options. “Once operators are able to demonstrate the intrinsic value of mobile as a marketing channel, mobile advertising as in Provisioning bugbear third-party brands using mobile as a channel for their adver- There are issues that need to be resolved, for instance, short- tising will also take off in a big way,” he said. I ening the approval process for SMS short code provisioning— the long lag times have been a common gripe of marketers for a while. Vinod Vasudevan, CEO of Flytxt Carriers have started to cast a wider net out of necessity, tak- ing on the role of publisher and content provider, in addition to advertiser and network operator. While there are no shortage of challenges and issues that need to be faced, maybe the carriers are actually starting to get it. “Marketers need to engage with consumers the way they ob- tain and use information—that’s on the go,” Mr. McCastle said. “Mobile advertising is here. PAGE 14 Mobile Marketer MOBILE OUTLOOK 2010
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  16. 16. COMMERCE Mobile commerce to evolve consumer shopping habits By Giselle Tsirulnik xpect leading retailers to enter the mobile commerce Consumers are already used to making micropayments for E space in 2010 through click-to-buy advertising, SMS drivers and transaction- and shopping-friendly mobile sites and applications. ringtones and donations in times of crises, so the resistance to transacting on the phone will wear away with more use and confidence of transaction security. In 2009 big brands such as Polo Ralph Lauren launched appli- “2009 was definitely the year of mobile but what we find is cations and sites, turning the mobile medium into an addi- that a lot of retailers felt as if they needed to take off from tional sales channel. In 2010, smarter phones with more mobile in 2009 because of the economy,” said Nikki Baird, user-friendly Web browsing will move the needle for Denver-based managing partner at RSR Research. mobile commerce. “But consumer expectations are going to drive most of these “From our perspective, the suc- companies into the mobile commerce space in 2010,” she said. cess of mobile commerce will be “Expect to see a lot of the latecomers moving into the mobile dependent on the evolution of commerce space in the first half of 2010.” smartphone technology, the speed of the mobile Web, a richer In 2009, Polo Ralph Lauren, Tommy Hilfiger, Gilt Groupe and Web-like user experience, the American Eagle Outfitters entered mobile commerce. Target, convenience of one-click, stored- Amazon, eBay and Best Buy were among the leaders who ac- account checkout and a brand’s celerated their mobile efforts to provide a seamless willingness to invest in an exclu- shopping experience. sive, branded content experience, merchandising strategy and offer Bridging PC and store strategy,” said David Lauren, sen- In 2010, retailers and brands will employ mobile coupons, bar David Lauren, SVP of ior vice president of advertising, codes, product comparisons and user reviews to help con- advertising, marketing and marketing and corporate com- sumers make purchase decisions. corporate communications, munications at Polo Ralph Lau- Polo Ralph Lauren ren, New York. Brands and retailers will realize that mobile bar codes are an easy and measurable way to mobilize any traditional media “We expect to see a big trend toward more robust mobile CRM from print to packaging. The key to driving results is to give programs – a brand’s ability to leverage consumer data to the consumer something of value and communicate clearly drive relevant messages, products and offers to your mobile with a strong call-to-action. device,” he said. However, the limitations of screen size, device capability and Impulse purchase channel the user experience on mobile sites and applications will de- Without doubt, mobile commerce is going to change the way termine the growth trajectory of mobile commerce. Consumer that consumers shop in 2010 and beyond. expectations of digital media are high thanks to ecommerce. Impulse purchases and in-store price comparisons with mobile “The biggest challenge we see for mobile commerce is its in- commerce-enabled sites and applications will determine the ability to deliver a simple, Web-like user experience and the fate of multichannel retail this decade. technology behind most U.S. phones,” Mr. Lauren said. Mirroring ecommerce’s growth in the last decade, apparel and “The biggest opportunity for mobile in the near-term will ac- accessories, entertainment, books, music and travel will be tually be its ability to leverage customer data to successfully among the key sectors to migrate to mobile. Items that require bridge the digital commerce and physical retail experiences, steady replenishments are also good candidates for like its ability to influence multichannel commerce versus just mobile commerce. mobile commerce,” he said. I PAGE 16 Mobile Marketer MOBILE OUTLOOK 2010
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  18. 18. CONTENT Struggling to stand out in the mobile content arena By Chris Harnick s more applications stream into the various smartphone finally start making smartphones that are going to be really A marketplaces, the challenge for mobile discovery grows exponentially. revolutionary in every respect and, as a result, we’re likely to see a much more competitive and level playing field,” said Patrick Mork, vice president of marketing at GetJar, In 2010 companies and marketers San Mateo, CA. will continue to struggle to find their footing, making search ca- “The battle of the app stores will culminate in a dramatic pabilities all the more important. change to the market over the next 12-18 months,” he said. Now that major brands are get- ting into the game, discovery of Many application stores may fail because they will not have mobile content will be the solved the main issues of billing, discovery by consumers and trickiest issue. providing adequate return on investment for developers. “I think 2010 is going to be a Conquering the trinity great year for mobile content, In 2010, mobile marketers will need to attack the challenges particularly in the United States,” of reach, privacy and retention. Scott Dunlap, CEO, said Scott Dunlap, CEO of Near- NearbyNow byNow, Mountain View, CA. The dam will not break on mobile advertising until there are “Smartphones have reached crit- multiple vendors with a reach of more than 10 million users, ical mass, the tablet is changing the game and we’re seeing or the advertising industry begins to focus on personalized media and gaming companies responding with more mobile- messages optimized for conversion and engagement rather optimized content.” than reach. Mobile privacy is also going to be tested and refined. NearbyNow has developed numerous applications for various media companies including GQ and Seventeen. Most applications are abandoned within 60 days and mobile Web sites have a hard Because of the proliferation of applications and other mobile time retaining and content such as ringtones, content developers are finding it lengthening visits. easier to get paid for their work thanks to ad-supported mod- els and paid content. In 2010, there will be a struggle for eyeballs Sideliners will get nowhere as content and de- Media companies know the rules have changed. Standing on vices hit the market. the sidelines is no longer an option with Google and Apple aggressively investing in research and development. “My first advice to content developers “The level of innovation in mobile devices will be staggering would be start with in 2010 and the rate of adoption will be faster than ever,” the iPhone and iPod Mr. Dunlap said. touch,” Mr. Dunlap said. “It’s a great This will be the year of the handset. Manufacturers will focus platform, the user on features, design and other aspects based on the success of base is well aware of the iPhone. Devices will need more memory for more capacity how to download and because of the expanding content market. use apps, and it’s showing no signs “2010 is when we should expect handset manufacturers to of stopping.” I PAGE 18 Mobile Marketer MOBILE OUTLOOK 2010
  19. 19. COUPONS Mobile coupons will make the cut for consumers By Jim Buckley he current economic climate has changed the spending use, SMS texting, smartphone T behavior of American consumers. As people adapt to re- cessionary times by cutting spending and tightening belts, a new type of consumerism has been born. adoption and mobile applications leveraging the promotional vehicle as part of a content offering. Top economists believe this shift to conservative spending is SMS text and MMS rich not a passing trend but will actually become the “new nor- media couponing mal,” much like the change that occurred in consumer spend- Harris Interactive conducted a ing after the Great Depression of the 1930s. survey and discovered that 42 percent of adults ages 18-34 and The ranks of Americans who state they have permanently re- 33 percent of 35-to-44-year- duced spending are continuing to rise, pointing toward a more olds are interested in getting frugal consumer environment once the current recession ends. opt-in mobile alerts from their Jim Buckley, new media favorite places. business owner at Valpak/ A June 2009 Business Wire survey showed that 20 percent of Cox Target Media Americans say they have cut back for good on spending. To The study also revealed that about 90 percent of mobile users capitalize on the demand for savings, businesses are increas- have made impulse purchases while shopping due to a sale, ingly using coupons as a promotional tool to maintain or in- with 22 percent of these shoppers doing so on a weekly basis. crease market share, attract consumers to their locations and introduce new products and services in this new economy. The findings of the study pose implications for advertisers as these businesses can build their database of consumer con- In addition to their attractiveness to consumers, coupon pro- tacts in the form of opt-in mobile numbers and additional in- motions are also winning favor with marketers who are being formation captured from registrations which can then be used held accountable to track and measure program effectiveness to advertise new products, specials and promotions. and demonstrate the return on investment for programs. To be successful in this space, a recent Valpak study of Echo The trackability of coupons helps marketers use their budget Boomers, also known as Generation Y or millennials, suggests dollars efficiently and with clear, tangible results at a time that adults ages 18-27 are extremely interested in mobile when ad spend is more closely scrutinized. marketing – but with some reservations. Beyond traditional print couponing, mobile couponing has When asked about mobile marketing in a Valpak-sponsored been growing along with other forms of digital coupons in- survey managed by Cox Enterprises Inc. and Communispace cluding emailed coupons, online coupon Web sites and even through its shared Project Echo program, respondents reported discount offers marketing by social media channels. some fear of disclosing their personal mobile number, handing strangers their mobile phone and the potential expense to According to Experian Simmons 2009, since last summer, the them if they are too heavily messaged. However, more than growth in digital coupons has increased markedly: some 44 half said they would be interested in receiving offers from million adults printed coupons from the Internet, which is a 21 businesses that they frequented or were of interest to them. percent increase from the same period last year. Study participants stated that dining and entertainment In 2010, Yankee Group expects the number of mobile coupons coupons were among their most preferred categories. Overall, redeemed in North America to rise tenfold, with triple-digit the quality of the text offer and its relevance to their lifestyle increases to follow in 2011 and 2012. were key to their satisfaction and willingness to participate in mobile marketing. Mobile couponing is on pace to continue to increase in distribution, use and redemption. This is largely due to the increase in Internet The challenges associated with both SMS and MMS PAGE 19 MOBILE OUTLOOK 2010
  20. 20. (multimedia messaging service) couponing facing advertisers By tracking coupon use and redemption, as well as leveraging is how to reach consumers with their messages and offers. customer-provided preferences collected at registration, ad- vertisers can tailor their messaging to provide customers the Legal restrictions surrounding messaging can hinder busi- right offer, at the right time, at the right location. nesses, so a pull-strategy with double opt-in is the best prac- tice to avoid pushing unwanted messages to consumers. By measuring redemptions, businesses can monitor and track time-of-day and day-of-week to see peak use of the offer and Used in conjunction with a print ad campaign, getting the correlate that information to the success of an SMS pull campaign out to consumers has the added critical advertising campaign. advantage of an integrated media effort, which helps increase ROI and response result. Redemptions can also reveal promotional success by looking at upsells and cross-sells as a result of the coupon or offer. Mobile campaign challenges and opportunities The first challenge to any mobile messaging campaign is ob- SMS text message coupons will continue to grow in their taining mobile opt-ins. This can be achieved by leveraging a usage. But as more consumers adopt smartphones, the trend best-practice approach with pull campaigns and using common toward providing rich media coupons – electronic versions of marketing channels such as direct mail, print ads, point-of-sale print coupons, bar coding or video ads with offers – such as display and email messages. those provided with mobile applications will also continue to grow. Providing a targeted, com- pelling and relevant offer to a According to Scarborough Research, 8.6 million, or 8 percent, targeted audience which of U.S. households currently acquire coupons via text mes- clearly understands what mo- sages or email. bile messaging they will re- ceive and how often they will Whether businesses use SMS texts, MMS images or videos to receive it is the key to building provide coupons that incentivize consumers to make pur- a qualified and receptive opt- chases at their locations, mobile couponing is here to stay. in mobile database. But perhaps the most important aspect is that businesses can learn more about their customers to develop loyalty programs Budget and frequency are po- based on customer-provided information and track response tential challenges when it and redemptions associated with mobile coupons. comes to planning. In short, it is best to expect the unexpected. Mobile application growth Market research firm IDC projects the number of applications It is critical to consider the for the iPhone will nearly triple to an estimated 300,000 by number of customers and mes- the end of 2010 and that there will be 50,000 to 75,000 saging frequency when there is a limited budget for Google Android applications, up from 17,000 in 2009. SMS/MMS messaging. And if businesses are paying for each response with a double opt-in, they must be sure to budget for Mobile coupon applications should see similar growth rates a better-than-expected response. as retailers and other industries look to reach consumers closer to the point of sale. These issues should be planned for in advance by the media firm, agency or messaging service provider, which should pro- Location-based services (LBS) use GPS to serve consumers vide an adequate estimate of response and thus help with po- coupons, offers and discounts within a given location and are tential staffing, product and service delivery and other a logical fit for businesses looking to increase their advertising planning issues. reach and target consumers with intent-to-purchase behavior. PAGE 20 Mobile Marketer MOBILE OUTLOOK 2010
  21. 21. Mobile coupon applications that use U.S. smartphone adoption increased 63 percent to more than geotargeting are an effective way for 33 million users and touch-screen mobile phone adoption businesses of all sizes to promote their grew 159 percent to 23.8 million users in August 2009 from products and services to consumers the year-ago period. looking to save at their favorite stores. Media buyers are using mobile advertising more, as it is inter- Mobile applications featuring coupon active and allows them to do more with less. content have the added advantage of being able to track when and where of- BIA/Kelsey predicts that mobile local search ad revenues will fers are searched for, served up, viewed grow to $130 million by 2013, and that mobile local searches and redeemed. will increase to 35 percent of all searches by 2013. The mobile application market is currently highly fragmented More companies are leveraging mobile couponing as a vehicle and is complicated by a combination of closed and open for engaging consumers, given that they are highly desired in- source mobile operating systems, device-dependent systems centives that drive transactions at the point of sale. and applications, and wireless carrier rules and control desires. According to a November 2009 Juniper Research study, the Many other mobile applications will increasingly incorporate availability and convenience of digital coupons are attracting coupon content as a content value-add as platforms become a newer and younger base of consumers, many of whom use more open. Twitter, Facebook and other forms of social media. In the future, as mobile coupon, discount and offer data feeds These trends are expected to contribute to a projected 300 are implemented across open platforms, these data pushes million global coupon users, who will generate close to $6 bil- will help drive the growth in mobile applications. lion globally in retail redemption value by 2014. Coupon clickers The outlook for mobile couponing is bright due to the new According to a December 2009 Borrell Associates study, some economy, growing consumer demand for mobile coupons, the 400 billion coupons will have been distributed nationwide in increased availability of mobile messaging platforms and 2009, with a 2 percent average redemption totaling $40 bil- emerging technological trends. lion in consumer savings – $87 million of that from mobile couponing – and resulting total purchases exceeding that As more rich media applications such as Adobe Flash – pro- value by a large factor. jected to be supported on most smartphones by the third quarter of 2010 – are distributed, and the number of open The increase in coupon use will likely outlast the economic source operating systems such as Android increases to facili- downturn as marketers gain a deeper understanding of how tate mobile application development, technology and com- coupons affect shopping behavior and as more companies munications innovations will undoubtedly increase the learn how to successfully employ them. application and use of mobile coupons. Local businesses are embracing coupons this year, with the Also aiding in the growing acceptance of mobile coupons is value of their coupons jumping more than 50 percent, accord- the role of broadband 4G/LTE wireless networks deployed to ing to Borrell Associates. support HD video, gaming and more powerful mobile applica- tions. Expect mobile coupons to grow at a fast clip. I Consumers are interacting more with mobile marketing as they learn their phone capabilities and acquire newer technology. Jim Buckley is new media business owner at Valpak/Cox Target In November 2009, a comScore MobiLens study revealed that Media, Largo, FL. Reach him at jim_buckley@valpak.com. PAGE 21 Mobile Marketer MOBILE OUTLOOK 2010
  22. 22. DATABASE/CRM Mobile database/CRM initiatives to help drive sales By Dan Butcher rands large and small are using the mobile channel as Despite fast growth in the space, there will be challenges. B a customer relationship management tool to build their opt-in database and inspire consumer loyalty, and that trend will increase exponentially in 2010. Retailers with a trusted brand and pre-existing relationships with consumers will have an advantage over lesser- known brands. When used properly, mobile enhances the database/CRM ini- tiatives of every business sector, from consumer packaged Businesses and consumers are still going to have trust and se- goods, food-and-beverage and hospitality companies to big- curity concerns about opting into mobile marketing and mo- box retailers, sports teams and high-fashion labels. bile payment programs. “We expect to see mobile marketing and mobile commerce First and foremost, marketers must follow the Mobile Mar- continue to grow in importance and adoption as retailers keting Association’s best practices to make sure their mes- focus on their most loyal customers and sages are not perceived as spam. stickiness,” said Kevin Grieve, CEO of Moca- pay, Denver. “The industry experts are pre- Another challenge is to understand ROI, dicting mobile commerce and SMS which typically means some level of inte- marketing are going to take off in 2010, and gration with the point of sale during con- given our own indicators, we do too.” sumer redemption of an offer. Database-building and CRM are two essen- “A challenge will come from how to migrate tial aspects of marketing, and both fit nat- a customer from a one-time mobile market- urally with the mobile medium. When ing campaign to an ongoing relationship,” executed properly, database/CRM initiatives Mr. Grieve said. “This can be accomplished drive sales in a big way. by rewarding profitable consumer behavior with incentives, which can easily be Mobile CRM tactics range from asking con- wrapped into their loyalty program.” sumers to opt-in to an SMS club via a key- word and a short code to receive promotions Consumer control and alerts, mobile coupons and virtual mo- To overcome these challenges, marketers bile loyalty cards, which are often associ- need to make sure they put control into the ated with VIP clubs or frequent-buyer programs. consumers’ hands — allow them to adjust the frequency of messages that they receive from the retailer or brand. Loyalty plays So what are the vital components of a multichannel data- As a direct channel that people opt into, marketers must be base/CRM strategy? The answer is seamless integration across sensitive to their mobile messages so they are not wearing each channel and consistent consumer experience. out their welcome to the point where a customer chooses to opt out. Marketers must avoid making mobile an island or standalone medium. Make mobile part of the overall marketing mix. It is Marketers need to make sure the providers they work with are also important integrate mobile with a brand’s social focused on the end-consumer experience. media strategy. “Consider what reporting will you receive, how often can you Another tried-and-true piece of advice is to keep it simple for touch the customer and what innovative services can you add consumers, especially when it comes to database registration into the mix to build and retain customers to ultimately in- and redemption of coupons. crease your sales,” Mr. Grieve said. I PAGE 22 Mobile Marketer MOBILE OUTLOOK 2010
  23. 23. EMAIL Email marketers to focus more on the small screen By Dan Butcher rands and marketers will be more focussed on mobile- Marketers need to consider whether their customers are read- B optimizing their email campaigns in 2010. This will ensure better customer experiences and higher response rates. ing emails on a smartphone. Additionally, the device and op- erating system of choice is also important to know. A Radicati Group study found Based on that, marketers need to figure out if their email cam- that 139 million people around paigns are designed to look well and perform well on the the world accessed email via their small screen. handhelds in 2009 and this num- ber is going to grow to more than “By always being on, and with the customer, mobile is rein- 1 billion users by 2013. With mo- venting email as the killer app,” said Deirdre Baird, bile phone owners outnumbering president/CEO of Pivotal Veracity, Phoenix. “Marketers who PC owners four to one, marketers leverage the efficiency and convenience afforded to con- that do not mobile-optimize sumers by mobile email will be able to use the channel to drive emails will be left in the dust. significant incremental Web and in-store sales. Deborah Hall, managing director, Web2Mobile “The mobile email space is keep- “The time to optimize email campaigns for mobile devices is ing pace with the explosive now — both in terms of design and the customer experience,” growth of mobile Web browsing,” said Deborah Hall, manag- she said. ing director at Web2Mobile, Toronto. More marketers are expected to identify mobile users and im- “The first companies that em- plement mobile email marketing de- brace optimizing their content for sign and coding best practices. mobile will not only improve the performance of their communica- Smart email tions, but also gain insight as to Many marketers in the space believe what platforms users are con- that mobile has the ability to over- suming content on their sites — come the difficulties facing PC-cen- Research In Motion, iPhone and tric email marketing. Android,” she said. “We at Yesmail are optimistic that Measurement is important be- mobile email adoption will only in- cause analytics that tell mar- crease in the coming year,” said keters what devices are visiting Manny Ju, director of product man- these properties help to shape a agement at Yesmail, Portland, OR. strategy for application “All industry studies have shown that platform choices. reading of email remains among the top data usages of smartphones. Email is killer app When 80 percent of the traffic to “As the market for smartphones con- an email newsletter comes from tinues to expand worldwide, we see iPhone devices, it might make the importance of marketers to sense to optimize for this plat- properly address mobile email not form and look at building an only in terms of screen layout, but iPhone application or iPhone- also in terms of timeliness of offer,” friendly Web presence. he said. I PAGE 23 Mobile Marketer MOBILE OUTLOOK 2010
  24. 24. GAMING Monetization strategy key issue for game developers By Chris Harnick he mobile gaming sector, dominated by the Apple iPhone in Playstation’s parent company Sony has gotten into the mobile T 2009, will continue to battle its biggest problem in 2010: monetization. gaming application arena with various properties, but Nin- tendo is nowhere to be seen. There is no Super Mario Brothers application for the iPhone. The iPhone changed the face of mobile gaming with applica- tions from brands such as Volkswagen and video game man- As devices gain in popularity and capabilities, could they even- ufactures including Electronic Arts. But the question for many tually act as the video game system controller? Not in 2010, still remains: Do consumers prefer free, ad-supported games but it is a possibility. or pay-per-download? Stepping up to the plate “Without a doubt 2010 will be a rocket ship for mobile gaming Greystripe said 2010 is already starting off with a bang. It has and we will see the continued growth of mobile gaming com- seen first-quarter bookings grow even after the holiday sea- panies that nail the platform and user experience,” said son. More brands are recognizing the space, especially mobile Michael Chang, founder/CEO of Greystripe, San Francisco. games, and budgets are reflecting it. “All through 2009 we saw thousands of developers jump into Growth comes from fundamentals such as more brands allo- mobile with incredible innovation,” he said. “Hit games like cating online and traditional media budgets into mobile. Tower Bloxx 3D by Digital Chocolate, Sheep Launcher by Kro- nos and Tower Madness by Limbic were both simple and Mr. Chang said companies hugely addictive. in the industry should be looking at convergence “Gaming will be the tip of the spear for broader app genres strategies in 2010. and content types in mobile.” As mobile joins with on- Greystripe is a mobile ad network and game developer. line, companies that just think of themselves as Brands in-hand pure mobile advertising In 2009, Electronic Arts’ EA Games division launched mobile services are going to be versions of several well-known games such as Connect 4 in trouble. and Monopoly. “Mobile advertising has fi- Paid game applications that acted as brand extensions dom- nally become about buying inated the charts of Apple’s App Store. an audience and delivering rich media,” Mr. Chang In 2009 movie studios used the mobile gaming space to mar- said. “Greystripe’s opportu- ket films with both paid and free applications and that trend nity in 2010 is that we can will continue as more entertainment entities go mobile to demonstrate to brands promote properties. that mobile advertising can be more effective and EA and fellow game publisher Glu Mobile will continue to engaging than their online cannibalize the demographic, but where are the traditional media buys. video game big players such as Microsoft and Nintendo? “Mobile advertising is a Sony has the Playstation Portable and Nintendo has the Nin- huge opportunity for brand tendo DSi, but Microsoft is missing from the dedicated hand- advertising,” he said. “2010 held gaming device world. is looking bright.” I PAGE 25 Mobile Marketer MOBILE OUTLOOK 2010
  25. 25. INTERNATIONAL A global snapshot of mobile marketing’s evolution By Draftfcb he world will be a more hospitable place for mobile ad- High-speed mobile broadband coverage has also been ex- T vertising, marketing, media and commerce in 2010. The reasons are obvious: better handsets, more affordable data plans, wireless carrier efforts and growing marketer ac- panded to many regional centers in Australia. In 2009 there were roughly 25 million mobile subscriptions in ceptance of evolving consumer behavior on the go. Australia for a population of around 22 million individuals. The country’s mobile industry roughly generated $15.5 billion Challenges remain, as this international sweep of the outlook in revenue in 2009, and a stronger infrastructure for mobile for mobile will show. But that is only expected as mobile finds has meant mobile media has continued to grow. a place on the marketing table, with the requisite elbowing from skeptics. With iPhones now offered by all major network providers and retailers in the Australian market, the uptake of the device To create a snapshot of the current mobile scene around the has been swift and will continue. world, select experts in advertising agency Draftfcb’s global network offered perspectives on the current and expected Users are becoming accustomed to 3G services and content state of mobile advertising, marketing, media and commerce and downloading iPhone applications, with many local brands in their respective markets. The questions asked included: now producing applications for their product or service. • What is the state of mobile marketing and media in Official figures show that 45 percent of phone owners have your market? 3G-enabled phones. Over half use their mobile phone to get • Are consumers receptive to mobile advertising information at least once a month and 51 percent use it to and marketing? source entertainment content. • What are the local challenges for mobile marketing, media and commerce? There are growing opportunities for brands to provide branded • What is next for mobile in your country? content around search. Here are responses from Draftfcb executives in key markets That said, one-third of 3G handset users type URLs directly in engaged in mobile advertising, marketing, media and com- to the phone browser with maps being the main information merce. Thank-you to the Draftfcb executives for their time they seek. This all points to huge opportunities for clients to and insight. – Mickey Alam Khan integrate mobile marketing into their campaign activity as people become more comfortable with using their mobile phone to seek information. Figures show 50 percent of users purchased content for their mobile phones in the last 12 months. Browsing the mobile Internet from a handset is in its infancy in Australia relative to other advanced economies, but 3G handset uptake in the last 12 months is growing – now at AUSTRALIA around 60 percent of users – and mobile browsing and mobile Alex Roper content will soon be an expectation for most mobile Head of digital & direct users here. Draftfcb Melbourne Network providers are seeing the trend and are making data Major mobile services providers have recently completed up- packages more affordable – one-third of users now have data grades to their mobile networks based on High Speed Packet included in their plan – to win customers over after making Access (HSPA) technologies. data packages unaffordable for some time. PAGE 26 Mobile Marketer MOBILE OUTLOOK 2010
  26. 26. Overall, there has been an increase in the acceptance of ad- percent are using their phone solely for its talk capabilities. vertising on mobile devices since 2007 and the numbers are SMS, videos, photos, music, Internet surfing, emailing and set to continue upward. even paying with the mobile device is becoming much more common. Users of mobile devices are happy to receive advertising in ex- change for free mobile content or special offers. It is very In a few instances, performance-based mobile marketing has much about a fair exchange with brands. Users want some- been very successful and is beginning to influence thing of value if marketers are going to contact them on their traditional thinkers. personal communication device. Consumers in Austria have become very receptive to mobile The primary challenge for mobile marketing is in competing advertising and marketing, especially if marketers are able to with the Internet and television, both which continue to be provide them with an added value through special promotions. the primary portals for information. Austria’s digital market seems to be behind other international With users still coming to terms with relying on their handsets markets and, therefore, it will take more time to increase the to conduct many of the day-to-day tasks they still assign to awareness of the importance and impact of mobile the Internet, mobile marketing must still gain traction marketing investments. in Australia. Meanwhile, due to the rise of smartphones and iPhones pro- As more key information, banking and news sites become op- moted through very attractive provider packages, an increase timized for mobile, it will become an increasingly effective in mobile applications and mobile data traffic can be expected channel for marketers. And the outlook is extremely positive. in the coming months. Although mobile service subscription rates are now between 110 percent and 115 percent of the population, growth is likely to continue for the foreseeable future. Australian carriers are likely to have more than 25 million mo- bile subscribers in 2011 as migration and business adoption continue to drive these figures. BRITAIN Leo Ryan Planning director for digital Draftfcb London The state of mobile marketing and media in Britain could best be described as “developing.” Despite years of interest and enthusiasm, it is really only the AUSTRIA recent advent of all-you-can-eat data plans that has made Florian Zelmanovics-Perl mobile affordable for consumers to access the Web regularly Chief operating officer and for longer periods of time. Draftfcb Partners Consumer reception levels seem to reflect those of other There are 10.68 million mobile users in Austria and a mere 4 media. Banners receive low click-through rates, but surely that PAGE 27 Mobile Marketer MOBILE OUTLOOK 2010

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