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Mobile in 2011: How Today’s Marketers Are Cashing In


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Mobile in 2011: How Today’s Marketers Are Cashing In

  1. 1. In association with:Mobile in 2011: How Today’s Marketers Are Cashing InDevelopments in smartphones have finally made mobile a viable revenue-generating channel formarketers. Phones are increasingly the gateway to the online world, now that consumers readily usethem to download video clips, listen to music, network, play games and search the internet. This year, imobile internet users are predicted to eclipse 1 billion worldwide with mobile commerce expected to iireach $2.4 billion in sales .Yet while most marketers understand and appreciate the emerging and accelerating opportunities forrelevant, real-time, on-the-go engagement between their brands and their customers, mobile marketingremains a story of great, untapped potential, according to recent research.Mobile Marketing Potential Understood - But UntappedmROI: Mobile measurement belongs alongside other online marketing channels when evaluatingperformance, return on investment and, ultimately, investment allocation. Close to 80 percent ofmarketers believe the return on investment on mobile marketing will be higher or considerably higherthis year, according to the study of almost 250 marketers, including 83 agencies and 162 client-sideexecutives, conducted by Coremetrics, a leading provider of web analytics.Whether it is a £10 million budget or a £10,000 budget, having a mobile presence is a must to ensurethat every opportunity is taken to engage with customers. Yet a majority of the marketers surveyed hadyet to launch either a dedicated mobile-friendly version of their website or mobile app. Have you created a mobile friendly version of your website? Response Answer Options Response Count Percent Yes 42.8% 105 No 57.5% 141
  2. 2. Have you built a mobile app for your product? Response Answer Options Response Count Percent Yes 34.2% 84 No 66.1% 162Understand Site Visitors And Customer BehaviourmStrategy: However, mobile marketing must be more than a me-too exercise. Each brand mustunderstand what it wants and needs its mobile marketing channel to deliver. Just under 30 percent ofmarketers see mobile as a means of driving more web traffic, according to the research, but a majoritysee increased audience interaction as the primary benefit of their mobile marketing strategy. Just over20 percent see mobile as a means of driving traffic to a store or other point of purchase, leveraginghigher conversion rates through handheld devices.Brands, however, should attempt to understand existing mobile activity on their websites beforeformulating a strategy. In particular, they should move beyond simple session-based metrics to toolswhich enable them to study the behaviour of visitors accessing their websites on mobile devices.Devices: For example, it is important to understand which devices are being used to access yourwebsite. It is clear that at present iPhones and iPads are by far the dominant devices across all sectors,followed by Blackberry and Google and all other devices at just 20 percent. With the different operatingsystems on mobile devices, marketers should understand how their customers are distributed acrossthe different platforms and then focus their mobile strategy accordingly. For example, some operatingsystems do not support Flash on a web site and different application stores require separatedevelopment efforts. Which device is most important for you in reaching your audience? Response Answer Options Response Count Percent iPhones 69.5% 170 Blackberries 30.0% 74 iPads 32.1% 79 Google phones 22.7% 56 Other Smartphone brands 20.1% 49
  3. 3. No idea 10.5% 26Understanding visitor behavior, overlaid with knowledge of which devices they are using, will uncoverareas of improvement and optimisation, such as page design, navigation and loading times andopportunity, such as launching a mobile site or app aimed at certain devices or behaviour types.For example, do you know how many of your customers are using their mobile devices simply as aresearch tool? And how many are using them for transactions? What are the search terms they areusing? For example, customers who search for “discount” and “cheap” can and ought to be treateddifferently to those who type in “quality” and “luxury”. How do Blackberry users navigate around your sitecompared with customers using an iPhone?On average, the bounce rate for site visits from a mobile device is nearly 10 percent higher than onlinesite visits. A user interface designed for smaller screens and easy navigation are necessary features toattract visitors and keep their attention. Having the ability to track how mobile visitors interact with thesite is the first step in understanding what areas may need improvement.Integrate Mobile Into The Marketing MixToo many brands still treat mobile marketing in isolation, when it ought to be considered as anotherchannel alongside email, paid search, natural search and social media. Have you integrated mobile into your marketing mix in 2011? Response Answer Options Response Count Percent Yes 38.0% 93 Not yet but will shortly 41.4% 101 No 20.8% 51Social media: Integrating mobile marketing with social media activity is a must. Around half of Twittertraffic, for example, now comes from mobile phonesiii. Apple recently announced deeper integration withTwitter in its upcoming iOS 5, the operating system for iPhones and iPads. Yet while 43 percent ofrespondents say they have an integrated mobile strategy with social media activity, the majority ofmarketers have done so tentatively or not at all. Have you integrated mobile with your social media activity? Response Answer Options Response Count Percent Yes 43.5% 107 No 26.4% 65 Slightly 31.2% 76For brands, this is an area of growing opportunity but also challenge. Increasingly consumers are usingsocial networking services such as Twitter and Facebook as a means of not only sharing news of offersand discounts, but also as customer service channels for expressing positive and negative opinionsabout a brand. The areas of responsibility for marketing and customer services departments are blurring– which means the necessity for an integrated mobile and social media strategy grows ever stronger.mPayment: Security concerns – on the part of brands as well as their consumers – remain the primarybarrier to greater transaction activity on mobile devices.
  4. 4. Only 10 percent of survey respondents say they have a mobile payment mechanism. Yet Amazon isreporting annual global revenue from mobile devices of around $1 billion. One item is sold via eBayMobile every two seconds. Global brands know that acceptance of m-commerce and mobile paymentsin emerging markets such as India and Brazil, where at-home broadband penetration is lower, is alsoalready racing ahead of customer behaviour in developed economies.If security issues are managed, customers will move beyond using their phones as simple researchtools, while at the same time brands can move beyond basic SMS campaigns and build loyalty as theylisten and engage with customers through this increasingly effective channel.SummaryThe time for “soft pedaling” on mobile is over and the smartest brands are already experimenting withlocation, augmented reality and QR technologies to leap ahead to the next stage of mobile marketingand commerce.For example, Homebase, a home and garden retailer, uses QR codes to enable customers browsingproducts in-store to watch advice and tips videos on their devices. Tesco deploys location-based toolsthat understand where customers are in their stores and can advise shoppers, via their mobiles, towhere the discounted products are on each aisle. Ikea’s augmented reality iPhone app allowscustomers to select a piece of furniture from its catalogue and use the phones camera to place itanywhere inside the room around them, and then change its size to fit the perspective.The challenge to brands of adding yet another new marketing channel are numerous – in manyorganisations, marketing and IT departments are already overloaded and overspent – but marketersmust understand the mobile environment or risk losing the race.                                                        i IDCii ABI Researchiii Pew Internet Project