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Mobile Marketing:
An Introduction
About me
•   18 years digital marketing, 7 years
    experience in mobile marketing

•   CEO of mobile agency, Formation

•   Mobile strategist and consultant

•   Chair of DMA Mobile Council

•   mark@formatie.com
    020 7490 8779
The mobile marketing challenge

Broadest info technology
Always there, always on
Great engagement & response
Exciting and interactive content




                                   But …
                                   Many standards, technologies and channels
                                   Highly personal
                                   Few measurement standards
                                   Confusing regulatory practices
Why mobile?



              1/2
              of human
              beings are
               ‘mobile’
Why mobile?

89% of UK adults are mobile
    9 billion messages per month
       Over 90% of messages are read
           Almost 100% recall of messages received
             40% of the UK have smartphones
              18m + people use the mobile web each month
               Mobile search has grown 500% in the last two years
Why mobile marketing?

    72% of people would opt-in for the
    right incentive*


         Over  40%       of mobile users have
         used a shortcode to respond to
         adverts in other media**


Mobile advertising spend has   doubled each
year since 2007***


  Response and purchase rates over  30%
  have been generated by mobile campaigns

                                                Sources: * DMA/IAB, 2010 // ** O2, 2009// ***IAB, 2010
Mobile’s Role in Marketing
                                      CRM, retention, loyalty and uplift


Customer response and acquisition
                                          Mobile
                                         Customer
                      Mobile              Service
                     Marketing



                                     Mobile
                                    Commerce

                                                       Transaction
The Mobile Landscape
The Best Selling Handset?




iphone: 65m   Motorola Razr: 110m   Nokia 1100: 200m
The first mobile phones?
1G era          1G mobile telephony transmitted
 1980’s-1991      voice calls as an analogue signal



                  As voice signals were switched to
                   digital, the first SMS was sent in
  2G era              1992, and primitive mobile
  1991-2001
                   internet and download services
                                developed


                  With the emergence of faster data
  3G era          connections, music, content, news
2001 onwards...   and mail services have appeared.
                  Voice is now just a part of the mix
The Mobile Landscape Now
          Smartphone Adopters
           Young affluent mobile
           users have caused a
           massive explosion in
            the market for the
            mobile internet and
                   apps




                    Mass Market
              Many devices are still
               base around simple
              calling and texting with
                small screens and
                 slow connections
…and in the next few years
Smartphones are taking over
Young users, who are addicted to



High digital
                                                      digital products and communities,



   usage
                                                       will place the smartphone at the
                                                         top of their device wish-list,
                                                      leading to near universal take-up
                                                                within two years
               2010                            2013
                      Smartphone penetration
                                                      Adults are the current key market
                                                      for smartphones due to their high
                                                       tariff and previous exclusivity to
                                                        Pay Monthly tariffs. However,
Medium




                                                      fewer habitual users of social and
 digital
 usage




                                                      digital products mean that not all
                                                              adults will want one
               2010                            2013


                                                      Older users who make little use of
digital




                                                        digital platforms, and for whom
usage
Little




                                                          new devices are a source of
                                                        confusion or discomfort, will be
                                                      less likely to acquire a smartphone
               2010                            2013
People used to …


         Text      Call
… now they              Tele-care
           Web                              Gaming                  Fleet
         browsing                                                management
                         Personal
                         organiser
                                                   Call
        Email                                                        Camera +
                                                                      pictures
                     Shopping
                                                     Text
     Mobile TV                                                         Search

                      Music
                                                   Social
     Smart                                        networks           Vouchers +
    metering                                                           tickets
                     Content
                    Download
                                     Navigation            Micro-
    Data Storage                                          payments
It’s a problem for brands
                                        Wha’eva


Brands are used to developing
products in the same silos year after
year
                                                  Social Networks
                                                      Mobile web
                                                          Widgets
    Buy it!                                               Games
    Buy it!
                                                            Mates
                                                            Email
                                                             Apps
              Branches                                       SMS
              Call Centres                                   Viral
              Own-brand web sites                              IM
              TV Advertising
              Direct Mail
              Outbound calling
Who are the mobile media owners?
This is how we used to get our mobile media

                      Now we get it like this …
Mobile’s Role in Social Media

              Up to 150 million users access
              through mobile

                     Mobile users twice as
                     active as non-mobile

                 50% of UK status updates
                 from mobile

                       Twitter saw   62%
                        increase in mobile app
                        use from April-Sept 2010
Understanding Mobile Users

 Innovative
                Immediate
     Trustworthy
           Relevant
   Personal
Mobile is Innovative and Personal
Trust and Permission




          volume/response/opt-out/spam
Mobile. A Spam Free Zone?

66% of UK consumers feel that they have
received mobile spam*

              10% of these messages were phishing attacks**

45% were links included premium rate response numbers to call

       30% of UK consumers blame their network
              operators for it

                                        * Formation/DMA, 2009 // **Cloudmark YouGov
The Most Accessed Channel 12-6pm

                                                 86%
                                                                          90%   TV
                  75%                            73%                      76%   PC
                        71%                59%                                  mobile



                                                                                radio
                                                                                print




midnight to 6am   6am - 9am   9am - noon    noon - 4pm   4pm - 6pm   6pm - midnight
Mobile Marketing Technologies
+ Universal, high response,
                                  low cost
  SMS              - Limited info and interactivity, user
                                permissions
             MMS
                       + High functionality, low cost
Mobile Web             - data connections, usability,
                              response rates

                      + High functionality, engaging
                        content, delivery network
   Apps             - Development cost, compatibility,
                            busy app stores

                       + Network independent, high
                      functionality, instant response
 Bluetooth             - Units in situ, usability, user
                                identification
Mobile Marketing Disciplines
Interaction: response


              JOIN
One CRM campaign we all know
Shelter
Walkers
Interaction: sales promotion
Next day, 78% of entries from
Barbeque Beef packs
Interaction: sampling
Uplift: BMW Winter Tyres
Brand Awareness: AMF
It’s Not Just Text
Or a Picture
Or Even Sound
NatWest: Customer Service
M&S: Transactional
Mobile Advertising
Experiential
So why isn’t everyone doing it?
Lack of understanding

                                         Lack of historic data
      No measurement standards

                       How do we buy mobile media?
       Barriers from regulations and legislation


  ‘Our customers won’t like it’
Mobile is…


...a fast, simple way to communicate
...a way to get connected.




     Integrated mobile and digital communications   © 2009 Mobile Interactive Group Limited. All rights reserved
.. It works where other’s don’t
JOIN



       ... it only takes one word to create
          engagement
Learning more about mobile

Mobile as Media Channel
2 day course
Accredited qualification
Free if you sign up today!
In Conclusion

 Mobile marketing can …
 Generate response and uplift
 Bring immediacy to campaigns
 Work in tandem with other channels



                                  But …
                                  Understand the personalness of mobile
                                  Keep it relevant and immediate
                                  Follow best practice


And remember, not everyone has an iphone!

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BCU Making Mobile Marketing Work Intro: Mark Brill

  • 2. About me • 18 years digital marketing, 7 years experience in mobile marketing • CEO of mobile agency, Formation • Mobile strategist and consultant • Chair of DMA Mobile Council • mark@formatie.com 020 7490 8779
  • 3. The mobile marketing challenge Broadest info technology Always there, always on Great engagement & response Exciting and interactive content But … Many standards, technologies and channels Highly personal Few measurement standards Confusing regulatory practices
  • 4. Why mobile? 1/2 of human beings are ‘mobile’
  • 5. Why mobile? 89% of UK adults are mobile 9 billion messages per month Over 90% of messages are read Almost 100% recall of messages received 40% of the UK have smartphones 18m + people use the mobile web each month Mobile search has grown 500% in the last two years
  • 6. Why mobile marketing? 72% of people would opt-in for the right incentive* Over 40% of mobile users have used a shortcode to respond to adverts in other media** Mobile advertising spend has doubled each year since 2007*** Response and purchase rates over 30% have been generated by mobile campaigns Sources: * DMA/IAB, 2010 // ** O2, 2009// ***IAB, 2010
  • 7. Mobile’s Role in Marketing CRM, retention, loyalty and uplift Customer response and acquisition Mobile Customer Mobile Service Marketing Mobile Commerce Transaction
  • 9. The Best Selling Handset? iphone: 65m Motorola Razr: 110m Nokia 1100: 200m
  • 10. The first mobile phones?
  • 11. 1G era 1G mobile telephony transmitted 1980’s-1991 voice calls as an analogue signal As voice signals were switched to digital, the first SMS was sent in 2G era 1992, and primitive mobile 1991-2001 internet and download services developed With the emergence of faster data 3G era connections, music, content, news 2001 onwards... and mail services have appeared. Voice is now just a part of the mix
  • 12. The Mobile Landscape Now Smartphone Adopters Young affluent mobile users have caused a massive explosion in the market for the mobile internet and apps Mass Market Many devices are still base around simple calling and texting with small screens and slow connections
  • 13. …and in the next few years
  • 15. Young users, who are addicted to High digital digital products and communities, usage will place the smartphone at the top of their device wish-list, leading to near universal take-up within two years 2010 2013 Smartphone penetration Adults are the current key market for smartphones due to their high tariff and previous exclusivity to Pay Monthly tariffs. However, Medium fewer habitual users of social and digital usage digital products mean that not all adults will want one 2010 2013 Older users who make little use of digital digital platforms, and for whom usage Little new devices are a source of confusion or discomfort, will be less likely to acquire a smartphone 2010 2013
  • 16. People used to … Text Call
  • 17. … now they Tele-care Web Gaming Fleet browsing management Personal organiser Call Email Camera + pictures Shopping Text Mobile TV Search Music Social Smart networks Vouchers + metering tickets Content Download Navigation Micro- Data Storage payments
  • 18. It’s a problem for brands Wha’eva Brands are used to developing products in the same silos year after year Social Networks Mobile web Widgets Buy it! Games Buy it! Mates Email Apps Branches SMS Call Centres Viral Own-brand web sites IM TV Advertising Direct Mail Outbound calling
  • 19. Who are the mobile media owners? This is how we used to get our mobile media Now we get it like this …
  • 20. Mobile’s Role in Social Media Up to 150 million users access through mobile Mobile users twice as active as non-mobile 50% of UK status updates from mobile Twitter saw 62% increase in mobile app use from April-Sept 2010
  • 21. Understanding Mobile Users Innovative Immediate Trustworthy Relevant Personal
  • 22. Mobile is Innovative and Personal
  • 23. Trust and Permission volume/response/opt-out/spam
  • 24. Mobile. A Spam Free Zone? 66% of UK consumers feel that they have received mobile spam* 10% of these messages were phishing attacks** 45% were links included premium rate response numbers to call 30% of UK consumers blame their network operators for it * Formation/DMA, 2009 // **Cloudmark YouGov
  • 25. The Most Accessed Channel 12-6pm 86% 90% TV 75% 73% 76% PC 71% 59% mobile radio print midnight to 6am 6am - 9am 9am - noon noon - 4pm 4pm - 6pm 6pm - midnight
  • 27. + Universal, high response, low cost SMS - Limited info and interactivity, user permissions MMS + High functionality, low cost Mobile Web - data connections, usability, response rates + High functionality, engaging content, delivery network Apps - Development cost, compatibility, busy app stores + Network independent, high functionality, instant response Bluetooth - Units in situ, usability, user identification
  • 30. One CRM campaign we all know
  • 34. Next day, 78% of entries from Barbeque Beef packs
  • 45. So why isn’t everyone doing it? Lack of understanding Lack of historic data No measurement standards How do we buy mobile media? Barriers from regulations and legislation ‘Our customers won’t like it’
  • 46. Mobile is… ...a fast, simple way to communicate
  • 47. ...a way to get connected. Integrated mobile and digital communications © 2009 Mobile Interactive Group Limited. All rights reserved
  • 48. .. It works where other’s don’t
  • 49. JOIN ... it only takes one word to create engagement
  • 50. Learning more about mobile Mobile as Media Channel 2 day course Accredited qualification Free if you sign up today!
  • 51. In Conclusion Mobile marketing can … Generate response and uplift Bring immediacy to campaigns Work in tandem with other channels But … Understand the personalness of mobile Keep it relevant and immediate Follow best practice And remember, not everyone has an iphone!