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Marketing Trumps Mobile
        Stephen Surman
        @stephensurman

  Event hashtag #MobiU2012




  Presented by the Heartland Mobile Council
#MobiU2012, @stephensurman


              Marketing Trumps Mobile
•   Achieving scale – a challenge for all marketers, but
    especially mobile marketers
       •   Mathematics
       •   Awareness
•   What we can learn from marketing history
•   Avoiding tangents – using engagement strategies to
    drive relevancy and build your brand
•   Fundamentals of digital marketing
#MobiU2012, @stephensurman


Good news: Mobile is BIG, getting BIGGER.
                     Mobile subscribers (B)                                                                     Mobile apps in Apple app store
7.00                                                                                                  700000
6.00                                                                                                  600000
5.00                                                                                                  500000
4.00                                                                                                  400000
3.00                                                                                                  300000
2.00                                                                                                  200000
1.00                                                                                                  100000
0.00                                                                                                       0
         2006       2007         2008        2009         2010        2011        2012                               2006      2007     2008    2009    2010   2011   2012



                   US text messages (B)                                                                               US mobile data usage (PB)
3000.0                                                                                                60
2500.0                                                                                                50
2000.0                                                                                                40
1500.0                                                                                                30
1000.0                                                                                                20
 500.0                                                                                                10
   0.0                                                                                                  0
          2006         2007        2008        2009        2010        2011       2012                          2006         2007     2008     2009    2010    2011   2012

                International Telecommunications Union - http://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.html
                Apple Q3 2012 report
                CTIA - http://www.ctia.org/advocacy/research/index.cfm/aid/10323
                Coda Research Consultancy - http://techcrunch.com/2010/03/30/mobile-data-traffic-rise-40-fold
                eMarketer 2011
#MobiU2012, @stephensurman


    Bad news: Mobile is BIG, getting BIGGER.
•   By 2015, mobile usage will surpass desktop usage
•   Global data usage will exceed 107 Exabytes per year by
    2017
•   98 billion apps will be downloaded in 2015
•   US text message volume to approach 4 trillion texts per
    year in 2015

     > Most brand apps never reach scale and
       30% of all downloads fail to achieve repeat
       usage
        StatCounter projections, ABI Research, Berg Insight report
        CTIA projection - http://www.ctia.org/advocacy/research/index.cfm/aid/10323
        Localytics research, January 11
#MobiU2012, @stephensurman




                                        How not to be a stalker


Scale: How not to be a victim to math




Used under Creative Commons license
#MobiU2012, @stephensurman


Digital math: shampoo marketers dilemma
# downloads    High use        Low use      Network        Total return
                return          return       effect
  25,000      10% (2500) x   15% (3750) x   5000 x 1 @      $56,138
              2 @ 4.99 ea      1 @ 4.99        4.99
               = $24,950      = $18,713     = $12,475


  50,000                                                    $112,275


  100,000                                                   $224,550

   You don’t need a guarantee, only a reasonable expectation of a
   return greater than alternative options
#MobiU2012, @stephensurman


      Develop and deploy your own model
                               Owned                           Paid
                  Facebook &       Email   Digital         Trad.         POS        Other
                     Web                   media           media
 Impressions        2.6MM          1.3MM   300MM           300MM        500K        500K
  Click rate          1%            2%      .5%              1%         .25%        .25%
  Audience            26K           26K    1500             3000        1250        1250
  Part. rate          10%           10%     10%             10%          10%        10%
 Engagement          2600          2600     150              30          125        125


         Direct engagement: 5630             Audience return: 1% at 1 unit
                  + shares: 285                      Part. return: 10% at 2 units
Earned
                     Total: 5915                  Effectiveness: $10,636 incr sales
#MobiU2012, @stephensurman


                          Bad news: Mobile is getting BIGGER.
Awareness: How not to be a needle in a haystack




Photo by BrokenSphere - http://commons.wikimedia.org/wiki/File:Yunnan_haystack.JPG
#MobiU2012, @stephensurman


   A quick look at the history of marketing




1920s                                         1980s
#MobiU2012, @stephensurman


When you isn’t enough, be a better you
#MobiU2012, @stephensurman


Add babies, bunnies, and bodies
#MobiU2012, @stephensurman
#MobiU2012, @stephensurman


   A quick look at the history of marketing




Today: Buy me, I have an app
1920s                                         1980s
#MobiU2012, @stephensurman




                                                                                 Relevancy: Supporting your brand and your consumer




Photo by BrokenSphere - http://commons.wikimedia.org/wiki/File:Yunnan_haystack.JPG
#MobiU2012, @stephensurman


Start with an engagement strategy
    Red Bull gives you the energy to tackle any challenge
    and permission to do the unthinkable


    Charmin helps make life’s unpleasant moments a
    little bit more pleasant


    Pampers helps you care for the happy, healthy
    development of your baby


    Harley Davidson gives you the freedom to ride
    wherever life may take you
#MobiU2012, @stephensurman


      What is an engagement strategy
An engagement strategy describes the brand story and
HOW the brand story will come to life.

A good engagement strategy:
   • articulates the value proposition
   • defines roles for the brand and the consumer
   • illustrates shared values
   • is active – the consumer participates alongside the
    brand beyond in fulfilling the value proposition
   • is rooted in authenticity and consistent with brand equity
#MobiU2012, @stephensurman


Example: Charmin Sit or Squat app
#MobiU2012, @stephensurman


          Fundamentals of digital marketing
What is the value proposition?                  How does the consumer engage?
Why should the consumer care?                   • Are the steps to engage clear? Does the
Will it scale?                                    consumer need to be trained?
                                                • How much time and effort is required?
• Facilitate existing behaviors , basic needs
                                                • Does the investment justify the value
• Enhance experience of existing behaviors
                                                  proposition?
• Reduce barriers to desired experiences
• Enable new experiences

               Should we                                       Will they

How can the experience best be                  Is there a reason for consumers
delivered?                                      to share?
• What are the right channels?                  • How is the experience enhanced through the
• How do online and offline tactics support       participation of friends and family?
  each other?                                   • Is there a sense of urgency


                 Can we                                       Will others
#MobiU2012, @stephensurman


             Marketing first, then mobile
•   Do a scale check – execute mobile as a platform
•   Make sure your brand has a solid engagement strategy,
    including a relevant value proposition
•   Identify your concept and check the digital fundamentals. Use
    the framework.
        • Should we

        • Can we

        • Will they

        • Will others

•   Execute and measure

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MobiU2012 Summit Opening Keynote - Stephen Surman, former VP Digital Strategy, Anheuser-Busch, on how Marketing Trumps Mobile

  • 1. Marketing Trumps Mobile Stephen Surman @stephensurman Event hashtag #MobiU2012 Presented by the Heartland Mobile Council
  • 2. #MobiU2012, @stephensurman Marketing Trumps Mobile • Achieving scale – a challenge for all marketers, but especially mobile marketers • Mathematics • Awareness • What we can learn from marketing history • Avoiding tangents – using engagement strategies to drive relevancy and build your brand • Fundamentals of digital marketing
  • 3. #MobiU2012, @stephensurman Good news: Mobile is BIG, getting BIGGER. Mobile subscribers (B) Mobile apps in Apple app store 7.00 700000 6.00 600000 5.00 500000 4.00 400000 3.00 300000 2.00 200000 1.00 100000 0.00 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 US text messages (B) US mobile data usage (PB) 3000.0 60 2500.0 50 2000.0 40 1500.0 30 1000.0 20 500.0 10 0.0 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 International Telecommunications Union - http://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.html Apple Q3 2012 report CTIA - http://www.ctia.org/advocacy/research/index.cfm/aid/10323 Coda Research Consultancy - http://techcrunch.com/2010/03/30/mobile-data-traffic-rise-40-fold eMarketer 2011
  • 4. #MobiU2012, @stephensurman Bad news: Mobile is BIG, getting BIGGER. • By 2015, mobile usage will surpass desktop usage • Global data usage will exceed 107 Exabytes per year by 2017 • 98 billion apps will be downloaded in 2015 • US text message volume to approach 4 trillion texts per year in 2015 > Most brand apps never reach scale and 30% of all downloads fail to achieve repeat usage StatCounter projections, ABI Research, Berg Insight report CTIA projection - http://www.ctia.org/advocacy/research/index.cfm/aid/10323 Localytics research, January 11
  • 5. #MobiU2012, @stephensurman How not to be a stalker Scale: How not to be a victim to math Used under Creative Commons license
  • 6. #MobiU2012, @stephensurman Digital math: shampoo marketers dilemma # downloads High use Low use Network Total return return return effect 25,000 10% (2500) x 15% (3750) x 5000 x 1 @ $56,138 2 @ 4.99 ea 1 @ 4.99 4.99 = $24,950 = $18,713 = $12,475 50,000 $112,275 100,000 $224,550 You don’t need a guarantee, only a reasonable expectation of a return greater than alternative options
  • 7. #MobiU2012, @stephensurman Develop and deploy your own model Owned Paid Facebook & Email Digital Trad. POS Other Web media media Impressions 2.6MM 1.3MM 300MM 300MM 500K 500K Click rate 1% 2% .5% 1% .25% .25% Audience 26K 26K 1500 3000 1250 1250 Part. rate 10% 10% 10% 10% 10% 10% Engagement 2600 2600 150 30 125 125 Direct engagement: 5630 Audience return: 1% at 1 unit + shares: 285 Part. return: 10% at 2 units Earned Total: 5915 Effectiveness: $10,636 incr sales
  • 8. #MobiU2012, @stephensurman Bad news: Mobile is getting BIGGER. Awareness: How not to be a needle in a haystack Photo by BrokenSphere - http://commons.wikimedia.org/wiki/File:Yunnan_haystack.JPG
  • 9. #MobiU2012, @stephensurman A quick look at the history of marketing 1920s 1980s
  • 10. #MobiU2012, @stephensurman When you isn’t enough, be a better you
  • 13. #MobiU2012, @stephensurman A quick look at the history of marketing Today: Buy me, I have an app 1920s 1980s
  • 14. #MobiU2012, @stephensurman Relevancy: Supporting your brand and your consumer Photo by BrokenSphere - http://commons.wikimedia.org/wiki/File:Yunnan_haystack.JPG
  • 15. #MobiU2012, @stephensurman Start with an engagement strategy Red Bull gives you the energy to tackle any challenge and permission to do the unthinkable Charmin helps make life’s unpleasant moments a little bit more pleasant Pampers helps you care for the happy, healthy development of your baby Harley Davidson gives you the freedom to ride wherever life may take you
  • 16. #MobiU2012, @stephensurman What is an engagement strategy An engagement strategy describes the brand story and HOW the brand story will come to life. A good engagement strategy: • articulates the value proposition • defines roles for the brand and the consumer • illustrates shared values • is active – the consumer participates alongside the brand beyond in fulfilling the value proposition • is rooted in authenticity and consistent with brand equity
  • 18. #MobiU2012, @stephensurman Fundamentals of digital marketing What is the value proposition? How does the consumer engage? Why should the consumer care? • Are the steps to engage clear? Does the Will it scale? consumer need to be trained? • How much time and effort is required? • Facilitate existing behaviors , basic needs • Does the investment justify the value • Enhance experience of existing behaviors proposition? • Reduce barriers to desired experiences • Enable new experiences Should we Will they How can the experience best be Is there a reason for consumers delivered? to share? • What are the right channels? • How is the experience enhanced through the • How do online and offline tactics support participation of friends and family? each other? • Is there a sense of urgency Can we Will others
  • 19. #MobiU2012, @stephensurman Marketing first, then mobile • Do a scale check – execute mobile as a platform • Make sure your brand has a solid engagement strategy, including a relevant value proposition • Identify your concept and check the digital fundamentals. Use the framework. • Should we • Can we • Will they • Will others • Execute and measure