Presenter: Alvin Glay, Sr. Director, Growth Marketing
Smartphone has disrupted the interaction between firms and consumers. People spend more time on their mobile device consuming content than any other platforms. Mobile advertising spend is expected to surpass TV and represents two-thirds of total digital marketing spend. However, there is an engagement problem. People are distracted and hate receiving ads on their phones and brands are spending billions to reach consumers when they're not engaged. Come see what researchers are saying how to solve this problem.
3. About Me
CURRENT ROLE
Sr. Director, Growth Marketing, Realself
EXPERIENCE
12 + years of agency and client side experience in ecommerce, paid media, social
marketing, content marketing, marketing analytics and business development
EDUCATION
D.B.A, Ga. State Univ, MBA, Mercer Univ, BBA, Finance, Ga State Uni
HOBBY
Football (soccer) player & avid Fan, beer Lover
PENDING PUBLICATIONS
Push Mobile Marketing, IoTeM Marketing
6. Mobile Consumption Trends
More than
3-BILLION
people own a smartphone device globally
of the global population
will own one by 202090%
The Physiological Society
revealed that people equate the fear
of losing their smartphone to being to
the fear of a terrorist attack 4.
People are spending more time on
their smartphone devices than any
other technology platform
(Azizuddin, 2014).
7. Mobile Consumption Trends
of all internet activities are now
conducted via smartphone devices
(Fulgoni,2014).
60%
More than
44%
of all personal computing
activity is accounted for by
smartphones (Fulgoni, 2014).
8. Mobile Consumption Trends
IOT phenomenon is expected to exaggerate
the issue with the projection of over
Liquid Consumer:
People are not longer Loyal to a brand
and expect a frictionless experience (Bardhi,
2017).
50 BILLION
connected devices by 2020
(Swan, 2012).
9. Mobile Marketing Trends
Firms are spending
BILLIONS
of marketing dollars to reach consumers on their
mobile device.
of total U.S. digital advertising spending and expected
to surpass $65 billion by 2019 (Surpassing TV in the
U.S. alone).
(Grewal, Bart, Spann, & Zubcsek, 2016)
69.9%
Mobile advertising accounted for
eMarketer also predicts that TV advertising will continue
to decline as firms shift the focus to Mobile****
But there’s a problem: Consumers are not engaged.
More than half of consumers are engaged with multiple-screen activities
and 70% are engaged with a second device during TV programming*
Connected devices per person is expected
to double from 3.45 in 2015 to an estimated 6.5 in 2020**
The avg person attention span is less than eight
seconds*****.
People Hate Advertising: Adblocking technology usage
has increased exponentially from 15.7% in 2014 to 27.5% in 2015
and expected to grow to 30% in 2018***
*https://marketingland.com/microsoft-study-multi-screen-behavior-and-what-it-means-for-marketer-36456
**https://www.statista.com/statistics/678739/forecast-on-connected-devices-per-person
***https://www.statista.com/statistics/804008/ad-blocking-reach-usage-us/
****https://www.emarketer.com/content/us-ad-spending
https://www.mediapost.com/publications/article/307554/engaging-consumers-in-the-era-of-the-eight-second.html
11. Permission
People want some
CONTROL
over the messages that are sent to them
(Godin, 1999;Catherine Watson)
Consumers view unsolicited mobile
messages from businesses as:
Irritating
(Muk, 2007; Samanta, Woods, & Ghanbari, 2009)
An invasion of privacy
(Windham and Orton, 2002)
Brand Intrusion
(Monk et al., 2004)
12. Proximity
Shoppers in the far condition would, on average,
spend more on unplanned purchases than
shoppers in the near–condition.
(Sam K. Hui 13)
Proximity
Temporal targeting on the same day with less
promotional lead time is thus considered to be
an effective strategy in generating mobile sales.
(Andrews, Xueming et al. 2016)
Timing
Geographically, consumers have been shown
to be more responsive to promotional
(Grewal, 2016)
Distance
13. Utility
Topicality, reliability, economic value,
and location are significant direct antecedents
of Mobile marketing
(Wang, Hong et al. 2014)
Perceived usefulness, ease of use, price,
and speed of use are the most important
determinants of adoption of mobile multimedia
services, in that order
(Pagani, 2004)
Effective mobile communication is time sensitive
(Berman 2016)
Consumers who believe mobile services (shopping
assistance) improve their shopping experience are
more likely to use mobile services in shopping than
those who do not share this belief
(Gokhan Karaatli 10)
14. Context Awareness
Individuals view their mobile devices as private and
personal, thus advertising through these mediums
requires context awareness
(Grewal, Bart et al. 2016)
People do not want SMS that have nothing to do
with what they are doing
Emotional attachment does play a role in user
perceptions of mobile advertising and receptiveness
to mobile adverts
(Dakatos et al)
People’s response to mobile ads is that of the
environment – what is going on around people
(Andrews, 2016)
16. Being Present: The Right Moment
+
MINDFULNESS
Focusing on an action that occurs from moment to
moment, anchors attentions in the present and creates
an immersive experience (i.e.. Meditating)
(Brown & Ryan, 2003; Han 1976;Kabat-Zinn 1990)
FLOW
Directing and sustaining attention to activities in the
present, one become in the moment
(Csikszentmihalyi 1977; Fortin and Dholakia 2005, Nakumura and
Csikszentmihalyi 2014)
BEING IN THE MOMENT
Ephemeral messaging
causes consumers to be
in the moment
Ephemeral messaging
fosters greater
interpersonal closeness
by causing consumers to
ruminate less
Being in the moment
enhances consumers
openness and creativity
Consumers rely less
on pass information
and outcomes
Ephemeral text-based
communication between
firms and consumers
increases trust
(Kivetz & He, 2017).
17. Hypotheses:
REASEARCH QUESTIONS
To what extent does real-time context and
relevancy increase consumers engagement
rate in push mobile marketing?
YES
NO
NO YES
LOW
MEDIUM VERY HIGH
VERY LOW
RELEVANCE
REAL-TIME
18. Ephemeral Mobile Communication Framework
Push Mobile
Communication
Consumers
Engagement Rate
Message
Relevance
Messaging
Timing
Consumer engagement rate to ephemeral mobile marketing will be high; however, the
degree of the response is moderated by the messaging timing and the content relevance
19. Summary
Relevance and usefulness (Siau & Shen, 2003;Watson,
McCarthy et al. 2013)
Context Matters
Temporal targeting on the same day with less
promotional lead time is thus considered to be an
effective strategy in generating mobile sales
(Andrews, Xueming et al. 2016)
Timing
Topicality, reliability, economic value, and
location are significant direct antecedents of
Mobile marketing
(Wang, Hong et al. 2014)
Utility
Unsolicited mobile communication are intrusive
(Watson, McCarthy et al. 2013)
Permission
Consumers have been shown
to be more responsive to promotional
(Grewal, 2016)
Proximity
People’s response to mobile ads is that of the
environment – what is going on around people
(Andrews, 2016)
Environment
20. Key Takeaways
Unlike Email, SMS can have a very negative impact
on brand attachment
One bad SMS can create distrust and be seen as an
invasion of privacy
Marketers should engage in SMS marketing with
some fear. You must ensure you do not mess up
your brand
More money than ever will go into this medium, and
you have more responsibility than ever to use it well