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Craig Daitch Mobile Marketing Presentation To MENG February 4, 2011

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Over a decade of experience in and around nascent technologies. Co-Founder of Simplewire, the world’s first SMS infrastructure and software provider. Negotiated the first pure mobile media upfront between Verizon and Discovery Communications. Former SVP Innovation PHD, Director Emerging Channels Digitas. Currently Partner, SVP Activation at Converseon

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Definition of Marketing: Management process through which goods and services move from concept to the customer.

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^ Mobile Definition of Marketing: A set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network.

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The “set of practices” includes “activities, institutions, processes, industry players, standards, advertising and media, direct response, promotions, relationship management, CRM, customer services, loyalty, social marketing, and all the many faces and facets of marketing.” To “engage” means to “start relationships, acquire, generate activity, stimulate social interaction with organization and community members, [and] be present at time of consumers expressed need.” Furthermore, engagement can be initiated by the consumer (“Pull” in form of a click or response) or by the marketer (“Push”).

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(mobile engagement is always initiated by the consumer)

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EXAMPLE CHARACTERISTICS & INSTANCES

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KEY CONTRIBUTORS 5 MOBILE TO IMPACT

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1. It’s Pervasive 2. It’s Ubiquitous 3. It’s Asynchronous 4. It’s Spontaneous 5. It’s Here

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327 Petabytes Per Month By 2015 Average per-user data usage went from around 90 MB per month in the first quarter of 2009 to nearly 300 MB in 2010. That's a 230% jump . Real 4G is still at least 2-3 years away from full commercial deployment. The amount of data traffic going over cellular networks is expected to grow 40-fold over the next five years.

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Mobile connectivity ubiquity will become reality as people go from using mobile devices for specific tasks to expecting that they can use their mobile devices when they are on the go – just as they use PCs, TVs, radios and movie theaters when they are stationary. Companies are no longer going to be successful simply by releasing a ‘mobile solution’ that allows them to be a participant in the mobile space. Now, companies need to release well-conceived products that are highly useable and allow customers to access information and conduct business in a mobile environment. More than 50 million tablet devices will be sold in 2011, according to a recent study by Goldman Sachs.

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Asynchronous communication lends itself to scale. Asynchronous Synchronous text messaging voice calls check-ins “ face time” email blogging MMS tweets IM

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<ul><li>Look beyond Twitter, and expect Gen Y & Millennial consumers to voluntarily opt in to passively and continuously sharing their location, in return for truly smart, real time suggestions about what they could be doing or who they could be meeting up with. </li></ul><ul><li>This in sense will create a groundswell of unexpected congregating as the mobile experience becomes faster and more feature laden. </li></ul>

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61.5 million people in the U.S. owned smartphones during the three months ending in November. 67.1 percent of U.S. mobile subscribers used text messaging on their mobile Browsers were used by 35.3 percent of U.S. mobile subscribers Subscribers who used downloaded applications comprised 33.4 percent of the mobile audience Accessing of social networking sites or blogs represented 23.5 percent of mobile subscribers Playing games attracted 22.6 percent of the mobile audience while listening to music attracted 15.0 percent.

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PRACTICES BEST

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Social media creates brand engagement and mobile is the fastest growing interface to reach those users. It’s critical that you incorporate the rich experiences social media connects brands to. HOW?

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Ad Serving QR Codes SMS Aggregators Application Developers LBS Platforms

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95% of the apps get approved 7 days after submitting the to the app store. Costs range between $10-$60,000 depending on complexity Can exceed 160 hours to develop

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12 WEEKS FOR SMS CAMPAIGN APPROVAL

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<ul><li>Whether we’re talking about the wired web, or mobile web, there are of course the standard things we all want to know. </li></ul><ul><li>Visits </li></ul><ul><li>Unique Visitors </li></ul><ul><li>Pageviews </li></ul><ul><li>Popular pages </li></ul><ul><li>Referrers </li></ul><ul><li>Search terms </li></ul><ul><li>Bounce rate </li></ul><ul><li>Conversion rate </li></ul><ul><li>and so on… </li></ul>What’s great about mobile analytics is that we add new segments that we can view the standard data by. We can now analyze visitor behavior not only based on where they are from, when they visit, and how they got there. We can now analyze the behavior based on the phone and it’s features, and how it impacts your conversions.

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<ul><li>With mobile analytics, you can now slice the data in new dimensions, and you have new kinds of data to work with. </li></ul><ul><li>What percentage of my visitors support streaming video? </li></ul><ul><li>What is the average screen size of my mobile visitors? </li></ul><ul><li>Which handset owners spend the most per visit? </li></ul><ul><li>How long do smartphone users spend on site compared to smaller flip phones? </li></ul>

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STUDIES CASE

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What: As a 2010 super sponsor of SXSW, Chevy used the event as a showcase for the Volt and the Cruze and test bed for mobile marketing. How: Chevy affixed QR codes on pre-production models of the Volt and Cruze. The codes, when photographed with a camera phone, launch a microsite highlighting key vehicle features. For example, attendees could use their smartphone to scan the QR code on the hood of the Volt and information on the vehicle’s battery life would appear on-screen. Between the Volt and the Cruze, Chevy offered 15 codes for scanning. Results: Chevy reported that 2% of the SXSW Interactive attendees interacted with QR codes and 8.5% of that 2% scanned the QR codes on more than one vehicle. “ We recognized that to be effective with a digital, social media audience you can’t just go in and put a logo all over something. That’s not engaging and it wasn’t an automotive event,” said Christopher Barger, General Motors’ director of global social media

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What: Kraft Foods launched the iFood Assistant in late November 2008 and released the upgraded iFood Assistant 2.0 a year later. The $0.99 app offers access to more than 7,000 recipes, cooking tips, a shopping list builder and how-to videos commingled with ads for Kraft brands. How: Promoted across all Kraft properties, also concentrated on mobile ad network giving Kraft the ability to track conversion. Results: Kraft is experiencing over 60% of continued user engagement. They have 25% men using the platform and over 90% of the people signing in to the iFood Assistant are new to the Kraft Foods environment

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QUESTIONS ?

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THANK YOU