Leveraging Mobile for Bricks-and-Mortar Retail

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  • Which brings us to our work of the past year…
  • Bricks and mortar has been getting their asses handed to them by desktop computing…
  • This is a typical response to new technology.
  • What I’m about to show you is how mobile favors retailers, and how we are leveraging this.
  • Unlike every other form of retaileradvertising
  • Leveraging Mobile for Bricks-and-Mortar Retail

    1. 1. Leveraging Mobile forBrick-and-Mortar Retailers
    2. 2. Michael RubinHead of Mobile Gaming Products, CloudMadeAuthor, Educator, Filmmaker, Product Architect30 Years in Industry Disruptions and Creative Business © 2012 CloudMade, Inc. Patents Pending.Last 3 Years Focused on the Opportunitiesin Consumerization of GPS
    3. 3. CloudMadeGlobal leader in mapping, navigation andlocation-based products serving automotivecompanies, mobile and web developers.Founded in 2008$16M in venture from Sunstone Capital, Greylock © 2012 CloudMade, Inc. Patents Pending.Partners, Intel Capital
    4. 4. CloudMade Expertise© 2012 CloudMade, Inc. Patents Pending.
    5. 5. Which brings us to the problem we set out to solve: How can new location toolsbenefit bricks-n-mortar retailers?
    6. 6. © 2012 CloudMade, Inc. Patents Pending.
    7. 7. favors ecommerce… The desktop computer© 2012 CloudMade, Inc. Patents Pending.
    8. 8. Top Online Advertisers (US) • Retail © 2012 CloudMade, Inc. Patents Pending. • Financial Services • Telecom • Automotive
    9. 9. Then along comes mobile…
    10. 10. Bad News =Bad News =eCPMs 5x Lower on Mobile than DesktopeCPMs 5x Lower on Mobile than Desktop Bad News Effective CPM, Desktop Internet* vs. Mobile Internet** Effective CPM, Desktop Internet* vs. Mobile Internet** Desktop Internet* $3.50 DesktopInternet** Mobile Internet* $0.75 $3.50 Mobile Internet** $0.75 Mobile eCPM by Category Mobile banners are in Mobile eCPM by Category general not effective Weather $1.24 Weather Education $1.24 $1.17 Education Lifestyle $1.17 $0.89 Lifestyle Utilities $0.89 $0.68 Utilities Health & Fitness $0.68 $0.68 Health & Fitness Entertainment $0.68 $0.68 Entertainment Medical $0.68 $0.63 Medical Reference $0.63 $0.55 Reference Games $0.55 $0.51 Games Navigation $0.51 $0.49 Navigation $0.49 $- $1 $2 $3 $4 $- $1 $2 $3 $4 Note: * Desktop Internet is a weighted average CPM calculation based on comScore Display ad share data and Vivaki CPM by category data as of Q3:11. **Mobile Internet is a simple average eCPM calculation based on Mobclix Exchange USA data as of 3/12. 19 Note: * Desktop Internet is a weighted average CPM calculation based on comScore Display ad share data and Vivaki CPM by category data as of Q3:11. **Mobile Internet is a simple average eCPM calculation based on Mobclix Exchange Mary data as of 3/12. May19 Source: USA Meeker, KPCB, 2012
    11. 11. Banner Ads on Mobile Don’t Work.Not the same as on the desktop
    12. 12. The problem isn’t mobile. The problem is from moving whatworked on the desktop and thinking it would work the same on mobile.
    13. 13. Many CPG, QSR and retailer brands have significant investment in real-estate and consumer experience. © 2012 CloudMade, Inc. Patents Pending.And have found it difficult to leverage the desktop Internet.
    14. 14. Mobile Favors Physical Retailers Mobile isn’t so hot for ecommerce, but because of the GPS it’s a godsend for bricks and mortar.
    15. 15. For mobile to drive foot-traffic to aretail location a few key conditions need to exist:
    16. 16. 1 Target consumers using mobile devices2 Applications with broad reach and use3 You need a different kind of ad in those applications.What kind of applications? What kind of ad?
    17. 17. 1
    18. 18. Mobile Games
    19. 19. Mobile Game Users Notplaying, 3 Playing Male, 48% 8% Female, 5 weekly, 62 2% % 46-55 10% 13-17 21% 36-45 23% 18-25 22% 26-35 24%
    20. 20. • Broad reach (Millions of DAUs). No other apps have this kind of penetration. Games are played everywhere, and by definition, near retail locations.• They’re fun. Games!
    21. 21. 2
    22. 22. Ads that are not “Ads”
    23. 23. Brand presentations performsignificantly better when they are not perceived as ads Facebook and Sponsored Stories
    24. 24. Brand presentations performsignificantly better when they are not perceived as ads Newspaper ads mimic font/style of articles Faux News Stories
    25. 25. Brand presentations performsignificantly better when they are not perceived as ads Theatrical Product Placement
    26. 26. Messaging has to be woven into the fabric of the game and gameplay.
    27. 27. 3
    28. 28. Give People Something They Want Virtual Goods
    29. 29. What are Virtual Goods?• Items (poker chips, weapons, hints, too ls) used INSIDE a game that gives the player an advantage (more playtime, more lives).• Game developers sell these virtual things for real money.• People will do a lot for “Free.”
    30. 30. Game players may or may not be Game Developers KNOW game players interested in this offer. want these items. (They’d want it more if it was free.)
    31. 31. Game Developers WANT their users to have virtual goods: – They improve retention and engagement – They don’t take users out of the game experience or clutter the game’s creative.
    32. 32. 4
    33. 33. Location TriggersThe phone has a GPS. Use it.
    34. 34. GPS = Verified ROI• Produces actionable analytics— – Know exactly how many times a msg has been seen and when, and how often it converts to a store visit. – Analytics: Store foot-fall, the time between presentation and arrival, starting location, the distance traveled, store destination, return visits
    35. 35. 1. Retail locations reward consumers for coming to their stores.2. Game developers get virtual goods in their customer’s hands.3. Consumers get virtual goods for free. Retailers, by sponsoring in-game © 2012 CloudMade, Inc. Patents Pending. items, pay game companies fordelivering customers to their doorstep.
    36. 36. Strategic ObjectivesWant free games andrewards Increase store visitors (and unit sales)Increase game revenues © 2012 CloudMade, Inc. Patents Pending.per user; game retention& cust. satisfaction
    37. 37. Strategic ObjectivesWant free games andrewards Increase store visitors (and unit sales)Increase game revenues © 2012 CloudMade, Inc. Patents Pending.per user; game retention& cust. satisfaction
    38. 38. When Retailers sponsor in-game items it’s a win-win-win.
    39. 39. Retailers Rewarding VisitsA new kind of broadcast spectrum
    40. 40. Sponsors select a geofence around stores that triggers messaging. © 2012 CloudMade, Inc. Patents Pending.
    41. 41. Every participating retailer becomes a virtual beacon… © 2012 CloudMade, Inc. Patents Pending.
    42. 42. …a short-range broadcaster…© 2012 CloudMade, Inc. Patents Pending.
    43. 43. And a game player is sitting at thecenter of “channels” that lead to a nearby store: © 2012 CloudMade, Inc. Patents Pending.Which changes dynamically as they move…
    44. 44. Not fundamentally different fromtypical shopping options by location… © 2012 CloudMade, Inc. Patents Pending. Except…
    45. 45. Location risk is minimized. No more line- of-sight limitations. © 2012 CloudMade, Inc. Patents Pending.Impulse shopping potential when close- but-hidden stores are revealed.
    46. 46. © 2012 CloudMade, Inc. Patents Pending.Unlock newMonkey Starlevel atToffeeCoffee!

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