This ppt is on mobile apps which are created by company in place of adds as their communication strategy so as to reach to customers and engage with them for long term.

1. For Mobile Devices think apps not ads
Harvard business review
PRIYANKA GOYAL
MNNIT ALLAHABAD

2. What
company
thinks and
what the
reality is ?

4. Consumers just don’t like them .

5. So , What the company should do to reach
consumers and engage them?

6. Why mobile adds don’t work?
People just Don’t Like Them
Surveys show that people find mobile ads more intrusive than
desktop ads, because mobile is a more private venue. In fact, fully
four in five say that mobile ads are “unacceptable.”
There’s No Right Side
PC users are conditioned to find ads in the right margin of the screen—they
appear that way on Face book and in Google search results, for example. But
mobile screens are too small to have a usable right margin, so ads pop up in
unexpected places.
The “Fat Finger” Effect
Advertisers closely track how many users tap on an ads. But
many of those taps are inadvertent, because the ads are
tiny—so it’s difficult to judge an ad’s effectiveness.

7. Therefore , Smart marketers go for effective Apps

8. Survey shows that beyond calling , e- mailing and texting ,apps dominate .Users
spend ,on average , 82% of their mobile minutes with apps and just 18% with web
browsers.
They download about 40 apps to their phone and regularly
use 15 of them.

9. Even Yelp , Tripadvisor and Flixster ,nike and red bull
use mobile apps to reach to consumers.

10. So, what is the challenge for brand marketers?

11. The challenge is that to create effective apps that add value to
consumers’ lives and enhance long-term engagement with
their brands.
To do so company marketers need to
understand how and why users choose apps.

12. Effective apps do one of the following

13. 1) Add convenience
Banking apps, for example, let people pay their bills online, and airline
apps let them check in and monitor the status of their flights.

14. 2) Offer unique value
In South Korea, commuters can use an app to order groceries from
Tesco’s Home Plus while waiting for their trains.

15. 3) Provide social value
Apps on Facebook and other sites let users send gifts to their friends.

16. 4) Offer incentives
Apps that give away mobile minutes, for instance, can entice
customers.

17. 5) Entertain
•Red Bull and other companies have devised
popular games focused on their brands.

18. How an app drives revenue
Tesco’s Home Plus lets commuters use a Smartphone app to scan the
QR codes of the groceries they want to buy and to have delivered to
their homes.
Within three months of the system’s rollout, registered users of the
delivery service rose by 76%, and revenue increased by 130%.
Nike, similarly, has capitalized on mobile’s distinctive abilities. In 2006 it
unveiled Nike+, an app (originally for iPods, now available for most smart
phones) that works with a special chip in runners’ shoes to monitor speed,
distance, and calories burned
Although the app itself is free, people must buy either a sensor-equipped
Nike sneaker or a shoe-mounted sensor in order to use it. Nike credits the
app with having driven growth of 30% in its running division as of 2012, and it
has expanded Nike+ to include apps and accessories that track other
activities, from playing basketball to sleeping.

19. Neither the Home Plus app nor Nike+ feels like a traditional
marketing communication—and that’s exactly the point.

20. Mobile users don’t want ads;
they want apps that deliver
unique benefits.

21. Recap
1) Company go for mobile adds to reach more number of consumers but there is
growing consensus that ads do not work for mobile devices.
2)There are three main reasons why mobile apps don’t work
a)people just don’t like them because mobile is more private venue.
b) there is no right side because ads pop up at unaccepted places.
c) the fat finger affect because the adds are tiny so its difficult to judge its effect.
3) Smart marketers go for effective ads.
4) Surveys show that users spend 82% of their mobile minute with apps and less
than 18% with web browsers.
5) Even yelp ,trip advisor , flixster , red bull and nike use mobile app to reach
customers.
6)The challenge for brand marketers is to develop effective apps that add value to
consumers life and enhance long term relationship.

22. 7) Effective apps do one of the following thing:
a) add convenience
b) offer unique value
c) provide social value
d) offer incentives
e) entertain
8)App derives lots of revenue .For example : Tesco's home plus app was
downloaded by many consumers and it rose to 76% and revenue increased to
130%.
9) Neither the Home Plus app nor Nike+ feels like a traditional marketing
communication—and that’s exactly the point.
10)Mobile users don’t want add they want app that delivers unique benefits.