Good morning everyone.Today we are going to explore how to harness the mobile opportunity through paid search.My hope today is that end of the session, you have some insights and practical ideas that you can take away to help develop and improve your mobile strategy – in ppc and also more broadlyFirst for those of you who don’t know us, 2 mins about us
3 things to know about NMP:We are specialists (know our subject inside out and back to front) – in our tech and methodology - and that focus has led to several prestigious awards including Econsultancy Finalist 2 years running, Revolution Award finalist this yearWe are passionate about results – that’s what get’s us excited/get’s us up in the morning, and clients see it – latest client saw 100% improvement in the first 3 months yoy We do it everywhere– so in terms of biddable media - services across search, display, retargeting and social advertising in over 50 countries and over 35 languages
And some of the brands we work with in the UK and globally
Situation:Mobile growth from 2010-2011 in the uk is 584% 46% of all mobile phones in the uk are smartphones – that’s 24.6M smartphonesTablets are set to overtake laptop sales by 2015So mobile is clearly important and a fast growing marketing channelComplication:With a new channel you also get a new layer of complexity …because of 2 reasons:
This new dimension called LocationPeople arent stationary, attached to a cable anymorePeople are:-On the move-At home on their mobiles-Shopping on the high street And with this new dimension called Location, we don’t understand fully how customers are behaving on their mobiles – because it’s a new channelBut whilst we don’t understand the new customer behaviours:
We do understand what the mobile users wants (and its different to desktop user):On my mobile deviceI wants 3 things:Simplicity – it’s just got to work – click, pinch, scroll, checkout …(nice simple buttons that he can press with his thumb)Immediacy – I expect Information at my finger tips’ – literally – eg just as I’ll call on my mobile and not wait till I get home to my landline, I will expect immediacy in my online world tooContext – relevant to where I am,what I am looking for, who I amQuestion:So how does the savvy marketer break through this new layer of complexity? – the new dimension of location and understand how customers behave on mobile?
Answer:I think it comes down to 4 things:It’s through putting the customer at the centre – just as you would for any market approachTaking a granular approach – so being willing to get into the detail/invest time and effort to seek out opportunity (this is more work, more complex – more dimensions)And being really creative / ideas leadAnd iteratively testing – its new so we have to keep testing and learningSo today is about looking at examples from our clients and a few other good ones of where this approach/these principles are applied with a clear view of the client’s strategic objectives and how mobile can achieve it
So first lets look at the mobile customer who is - on the moveThis man could be a commuter (possibly commuting to and from work – he’s got a few minutes spare, interested in connecting with friends - finishing some emails, checking his FB/Twitter, doing some researching of goods, maybe completing some purchases if it’s simple enough on the site/app (eg 1 click purchase). Or maybe ordering some food.
That leads me quite well into my first example forour client Papa John’s pizza where our objective was to improve their bottom line profitsThis campaign was part of a wider strategy beyond mobile that lead to the Econsultancy Finalist and Revolution Finalist this year (2012).Situation:PJ 3rd largest pizza delivery company in the UKTheir market is highly competitive and dominated by promotions and discount offers.But Discounting does drive volume – so seen as required across the pizza delivery industryComplication: Discounting hurts franchisee profits.Question:How could we move away from discounting but without hurting sales volumes?(drive the revenues that discounting brings but without the discount)Answer:And for us mobile became a crucial part of this strategy
Our approach Fundamentally we needed to communicate with customers at the right time and right place when they were hungriest and price lower in their priority list (connect with people when they are hungriest(hungry, want it, want it now) when price isnt their no. 1 consideration)And that was based on pizza industry research that told us that the no. 1 reason people buy pizza is because they are hungry and cant be bothered to cookAnd that’s very much about targeting them at the right time and place – choice of devices, certain time, certain geographies onlyFor example, The hungry man leaving the pub is on his mobile – peak time is at 1030-1130pmThe commuter leaving london on the train browsing his mobile – peak time is at 630-730pm2. Careful product selection to maintain revenue (slide of sides vs dessertsChallenge for us was that Some people are so used to discounting - Not discounting will drive down conv rateBut if we increased aov that could compensateBut people already purchased xlarge pizza and no extra cost for toppings, so focussed on promoting sides and desserts3. Connect with them - to use messaging (that would tap into the need-state hunger (ie that need-state) ) with appetite appealJust like in restaurants when they share their today’s specials board – higher aov dishes, copy with appetite appeal
Analysts and copy writers sitting down eating the prods to see the types of adjs that were appropriateOozy - wingsCreamy - sauceGooey - sauceArmed with these adjectives, the copywriters were tasked with coming up with ads with appetite appeal all in less than 35 characters.And specifically here we are testing against using national standard discounts but not BOGOFAds specific to mobile
Firstly this worked across all channels.On mobile specifically, revenue without discounting was better than with discounting (at certain times/days)And the ultimate aim was to drive up bottom-line profit for franchisees – and we achieved this too – comparable to BOGOF tuesdaysAnd a crucial strategy of driving up AOV to support the primary objectives - by selling side order also workedSo clearly when you tap into a customers true need state at a time and place that it resonates for them, it worksSo that was a good example of where we had to be granular in our approach (partic to achieve targeting of time/geo/message), creative and iterative testing
And following the same logic of being really granular, creative and testing loads, The second example I would like to share with you is for O2.Situation:O2 Ireland’s strategic objective as no.2 player in the market was to drive new customer acquisition of students through promotion of free sim productsthe target mobile customer is still on the move. This time they are young people 18-34 – particularly the student demographicComplication:Question:Answer:And our approach was 3 fold
The three steps we took were to:Targetnon 02 customers only – if you are granular, you can run campaigns on googleadwords that include only specific mobile networks. So here we included Vodafone Ireland and exc O2 IrelandCreate messaging that was specific to mobile - not desktop copy , and tapping into the mobile customer’s need for simplicityLastly a simplified order process where the user went to the mobile page, provided an email address and that was it. They were in the system
And you can see here on the left, the best performing mobile ad that had a 35% higher CTR than using desktop adsROI by not targeting O2 networks was 15% higher (ie – so there was a cost saving)Mobile click to sale was x3 shorter an on desktop – that means that on a mobile device, the time taken from first click through to a sale was x3 shorter than on desktop device – stressing just how immediate mobile customers are
And if we move from ‘on the Move’ to ‘at home’, the mobile user/customer is very differentThis person is quite often a tablet user.He’s relaxed, in his own safe environment – the homeHe’s predominantly lying back on the couch, he’s in bed and he’s in the kitchenAnd according to google data on tablet users:He is a multitasker, 42% of what he does is whilst doing something else, typically watching tv.
And if he’s multitasking, he’s distracted.When he’s searching, he typically only clicks pos 1 and 2 on his mobile device (in paid search)So if you want to own the real estate on tablets from a search perspective (for these people at home), you need to be at the top of the page
What’s also interesting for tablets is that- 55% of all sales on tablet devices happen between 6pm to 8amThat tells us that from a sales perspective that the tablet customer (more than half the time) isnt always truelly mobile.So 2 recommendations out that:Recognise that lots of tablet sales are coming from the home. So target these tablet users differently to tablet users on the moveDon’t mixup the tablet consumer in the train station with the tablet consume who’s lying back on his couch watching tv and on his tablet too
2. And secondly validate if this is true for your brand.There’s a new google feature just launched that enables you to target devices that are specifically on wifi – and we can make a reasonable assumption that most tablets used in the home are used on wifiUltimately this means you can communicate/connect with people differently – based on who they are and where they are - on the move or at home
So staying on Tablets specifically, I wanted to share a great example of raising brand awareness on tablet devices.Not our client but a great exampleEbookers have 2 objectives from mobile strategy that tie into their strap line:Book easier- Same experience online/on mobileTravel happier(and this is about the 2nd)
- Ebookers explorer ipad app – mashup of travel content from social media sites- Admob display advertising – targeting ipads only- Objective was to get on the top rankings quickly (rapid rate of downloads pushes you up the rankings)This drive further awareness as it goes viral
And they won the travolution best mobile app award in 2011 alsoFrom search:60% of mobile hotel bookings are made 1 day or less in advance (immediacy)40% of air travel either 1 way or sameday return trips (immediacy)Consumer willing to buy high val products
And lastly lets look at the mobile customer who’s -On the high street More than 50% of smartphone users use them instoreHe/She is trying to find store locations, read product reviews, comparing prices,
For The Perfume Shop our objective was to drive local (to the mobile user) store awareness and footfallSituation:TPS are the 2nd largest perfume retailer in the uk after boots and have 250 stores nationwideAlong with driving mobile sales, interested to drive local store awareness when a mobile user is searching for fragrance and driving footfall instoreBalancing of the two/holistic jointup approach to marketing. Complication:Question:Answer:Our approach to achieving this was to
Did three thingsTarget people who could potentially be interested to find their nearest store– and not bother targeting people who are miles away from a store (10m radius of their nearest store)Increase visibility – a beta trial with Google we used from winter 2011 to drive higher positions (increase ad positions by 60%) when that 10mile radius of store locations) – called proximity biddingMessaging - Provide option of shopping on mobile or directions to the closest stores
As the user got closer to the store, the Ads increased in positionAnd the results of the testing :we saw more traffic and revenue at a critical and high converting time of year – so successful for driving mobile salesImportantly we drove more awareness of closest store locations Not currently possible to measure footfall but with NFC and features like Google offers where an offer seen in ppc can be redeemed in store, this will change.
And like TPS, JL have retail stores nationwide and they’ve taken what appears to be a bold move in their mobile strategy (and embracing mobile) by offering free wifi in their stores to let the mobile customer do his prod research and comparing prices
But if the likes of JL and others get increasingly nervous as mobile grows, services like Shopkick in the US could be really valuable.Shopkick is an app that automatically provides a discount or incentive as I walk into a store. So I am more inclined to walk out having purchased rather than researching and buying elsewhere later.
Ultimately mobile has to drive value in its own right and we’ve talked about examples of where it has done that – and particularly not cannablize traffic from other channelsAnd it is a great enabler for integrating all marketing channels for a brandAnd I think brands who recognise these two things and invest time and resource be the ones that get ahead and stay ahead.
So in closing…
If you’ve enjoyed this seminar / found it useful, pls do drop us a note on what you’d like to have us cover in our next seminar.Questions?
Harnessing the full potential of mobile through paid search