Mobile trends show rapid growth in mobile search driven by an annual holiday peak. Half of all mobile internet sessions start with search. Mobile search queries grew over 200% year-over-year in 2011 for top searches. Marketers are recognizing the need to optimize websites for mobile to improve the customer experience and capture the growing mobile traffic. However, many large companies still do not have mobile-optimized sites, presenting an opportunity for those that make the investment.

1. Mobile Trends
Jason Cross
Marketing Director
Incentivated
May 2012

2. Beyond Talk Consumption Text
Beyond Talk &
Mobile Media
& Text
Mobile Media Consumption
2

3. Mobile search is growing rapidly – driven by annual triple peak each Christmas

5. 50% of all mobile internet sessions start with search
2011 figures: +223% yoy for top 1000 commercial queries via mobile

6. Entertainment queries on mobile

7. Travel queries on mobile

8. Retail queries on mobile

9. Technology queries via mobile

10. Google.co.uk vs total internet
google.co.uk Total UK internet
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
Source: comScore GSMA data, accessed Feb 2012

11. Drive visitors to your website
You’ve
invested in a
mobile site –
tell your
customers
that it’s a
mobile site
when they are
searching!

12. Search on mobile vs desktop
According to Google (and they seem to have spent a lot of time
researching all of this… for good reason, given recent financial
performance figures presented to Wall St etc):
Mobile – tends to be driven by an immediate need.
on average, a search on mobile is “acted upon” within 1 hour
of the request – eg visit a physical location, make a phone call,
buy online etc
Desktop – seems to be the beginning of a more involved research act
on average, a search on desktop takes around 1 week to be
“acted upon”

14. We’re past the peak of inflated expectations

15. We’re on the slope of enlightenment

16. Media consumption & ad spend out of line
Marketers recognise this disparity but risk aversion creates inertia
% of Time Spent in Media vs. % of Advertising Spending, (USA Global Mobile vs. Desktop Internet User Projection, 07 – 15E
2011) (B)
Time Spent Ad Spend 2.5 Mobile internet
50% expected to be larger than
desktop internet by 2014
2.0 Desktop Internet Users
40%
Mobile Internet Users
1.5
30%
1.0
20%
0.5
10%
0%
0.0
Print Radio TV Internet Mobile 07 08 09 10 11 12 13 14 15
Source: eMarketer, Dec 2011
Note: time spent with the internet excludes internet access via mobile, but online ad spending includes mobile internet spending, due to this, the total of the ad spending shares for all media
sums to >100%
Source: Mobile versus Desktop internet user projections: Morgan Stanley Research, April 2010

18. Huge growth in smartphones yet to come
Switch to smartphones drives mobile internet usage
US phone platform installed base (%)
100%
75% NON – SMARTPHONE
50%
25% ANDROID
OTHER
PALM
RIM MICROSOFT
APPLE
0%
12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11
Source: Asymco, ComScore

19. State of the Nation
• It’s clear that people do stuff on mobile
– More than first thought
• Understanding by marketers of the different roles of apps,
sites and messaging
• Recognition that the average mobile browser is more
powerful than the average desktop one
• A realisation that a QR code is a mechanic not a call to
action
• Now that you’ve caught up with the competition how do
you leapfrog them with better UX?

20. Why Mobile?
20

21. What’s so special about mobile?
 Mobiles are always with us and turned on – differentiates mobile from
other channels: allows immediate interaction then and there.
 Highly personal channel – as close to face to face as you can get
 Increasing sophisticated capability blurs channel edges: services
formerly tied to our PCs are now accessible on a range of screens.
 In a way there is nothing special: for consumers, mobile is simply one
part of their digital experience. They expect their mobile to work as
well as their PC.
 Over half of all media activity undertaken by UK 16-24s is
simultaneous (Ofcom).
21

22. What’s so special about mobile?
 Represents a further
step in the shift from
broadcast to multi-
faceted engagement by
enabling brands to
connect with consumers
at numerous touch
points, often
concurrently.
22

23. The Opportunity
 Mobile now presents new opportunities for brands - not just in
communications, but in product, loyalty and as the ultimate one-to-one
relationship tool.
 Not only are marketers now more able to deliver immersive
experiences, but consumers are also progressively more open to
them.
 To engage customers in otherwise ‘dark’ time
 Location time sensitive content can be served to segmented audience
 "The power of apps and location-based marketing are the holy grail for
advertisers” - Sir Martin Sorrell
 Mobile clearly has to play a key part in this landscape but brands must
think how it fits into a wider digital experience.
23

24. Customer is the focus not the channel
 Merely having multiple channels does not translate into a multi-
channel strategy.
 True multi-channel strategy involves each channel playing a core role
and a defined value for the customer. While they exist within a world
containing multiple interaction channels, they are still one consumer.
 Mobile catalyst or facilitator of the process: forging the link between
the offline with the rich and engaging online
 Tap into the instinct to share: Consuming content is an increasingly
social experience – broadcasting what you are doing suits mobile.
 Social commerce is a key driver of sales – allow the audience to do
some of the marketing for you.
24

25. Consumer expectations are rising faster
To date this process of mobilisation has been led by consumers
Source: Mobile Marketer January 2012

26. iPhone is only 8% of the UK population
You’d better be selling jewellery; leave no phone behind

27. BlackBerry still no.2 (by browsing UUs)

28. iPhone a declining proportion of conversions
Percentage of sales by device (from affiliates)
Source: econsultancy (July 2011)

29. “Free” mobile presentation layer
Responsive CSS alone is a false economy
Made for
mobile
Responsive
CSS

30. Mobile users have high expectations
58% of customers expect mobile sites to load more quickly than a desktop site
Mobile users value speed
38% of users are only willing
to wait 30 seconds or less to
complete a simple
transaction.
Source: Compuware, “Why the Mobile Web is Disappointing End-users”. March 2011

31. Who’s not doing so well in mobile?
Laithwaites have attempted to mobilise their site but it doesn’t render properly

32. Who’s not doing so well in mobile?
Although the site renders on iPhone, the check out process (perhaps the
most important) isn’t mobile optimised
Screenshots of Wilkinson - iOS

33. Who’s not doing so well in mobile?
Oxfam key functionality missing
Home Donate now Online shop Store locator
• Every link directs to non-optimised pages

34. Who’s not doing so well in mobile?
Deloitte key functionality missing
• Very basic mobile site
• Contains general static info about graduate and experienced hire, events, how
to apply
• But… to actually view vacancies, you are directed to the desktop Deloitte site…
not a good experience

35. Why invest in a mobile site?
• To boost performance
– 51% are more likely to purchase
from retailers
– 85% show increased engagement
with a retailer
• To keep customers
– 40% would visit a competitor’s site
instead because of a disappointing
mobile experience
Source: Compuware, “Why the Mobile Web is Disappointing End-Users”. March 2011

36. And yet…
79% of large online
advertisers (still) do
not have a mobile-
optimised site
Source: Google GetMo, Jan 12

37. What does your website look like?
Half of UK firms fail to check their own website from mobile devices
• Of those that have
– 41% admit their website has a
reduced appearance
– 36% offer reduced functionality
• The survey ( from 1&1 Internet)
also finds that 65% of firms have
not optimised their websites for
mobile usage
• So…

38. Who’s not doing so well in mobile?
Mobile sites
• Chivas Regal, Loreal (USA site), and Absolut

39. Who’s not doing so well in mobile?
Mobile sites
• Ribena, Lucozade, Smirnoff

40. A better mobile internet site
Save the Children
Home News Donate

41. If you are going to build an app …

43. Barriers to internet on mobile devices
EPiServer study: Developing a mobile strategy - how to deliver mobile sites that truly engage, October 2011
70% 64%
60%
50%
40%
32%
30% 25%
20%
10%
0%
Find mobile sites hard to navigate Will try competitor's site if mobile website Will give a mobile site an average of 3
isn't working chances before moving on
Source: EPiServer (n=1,000)

44. ‘Made-for-mobile’ navigation
This hi-res ‘concertina’ navigation (all content in background) was achieved in
50kb

45. Poor transcoding examples
Transcoding is an integration method; it should not limit design

46. Comparison of app approaches
Hybrid App Web ‘App’
Native App
% native code varies 0%
100%
Offline content   
Access GPS   
Control Camera   Coming
soon

47. Strengths and Weaknesses
Comparison ofmarket, cheaper CMSlong term solution
Option
1. Transcoded Quick to
Mobile
Strengths
Not
options Weaknesses
Can break if web site changes
Not suited to acct mgmt
2. Dedicated mobile Mobile site independent of Need to manage multiple sites
site, static content desktop – mobile specific Separate integration required for
content acct mgmt
3. Template Chooser Maintains existing CMS True responsive design needs
API Templates managed within additional server-side features
CMS Multiple templates required for
different devices
4. CMS Plug-in Single device-independent Requires third party plugin
design
Fully integrated with CMS
5. Mobile CMS Quick to market Relies on third party hosting
Highly cost effective

48. Discovery
In descending order of priority
• Search and direct input of URL (www. with device
detection applied)
– Google
– App stores
• Links from emails opened on a mobile device
– Responsive CSS works very well for email
• QR and shortcode
– Should direct exclusively to mobile not desktop
• Mobile advertising (display)

49. Mobile Search Advertising
42% higher CTR and lower overall CPC
CTR
5.5%
CPC
£1.20

50. British Gas and npower feel the rush
Mobile traffic increasing across suppliers; campaign led and organic growth
Unique users/month in the UK
britishgas.co.uk npower.com
80,000 scottishpower.co.uk southern-electric.co.uk
eon-uk.com scottishpower.com
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
Source: GSMA data, Feb 2012

51. Over 400,000 visits in first 11 wks
11% came from feature phones
Visits to britishgas.mobi
Smart Phone Visits Feature Phone Visits
6th Nov 13th Nov 20th Nov 27th Nov 4th Dec 11th Dec 18th Dec 25th Dec 1st Jan 8th Jan 15th Jan
Source: Incentivated

52. Avg. session length: smart vs feature phone
Feature phone sessions longer than smart phone due to connection speed
Average session length beyond home page – britishgas.mobi
21 33
secs per secs per
session session
Smart Feature phone
Phone
Source: Incentivated

53. Local search
Click to
call

54. App discovery via mobile web
Intelligent download reminders minimise disruption to user journey
Mobile search leads to Visitors offered chance to Not every visit is
‘mobile result’ download app OR use site interrupted with the
separate download screen

55. Can mobile emails be rich and engaging?
This is an example of a British Airways email that has mobile presentation
embedded

56. BA email renders differently on a mobile
Mobile email can be engaging, but always needs to lead to an optimised site
Optimisation eliminates the need to expand or pinch the screen. The ‘Find out more’ button
compresses any extra text, providing a great user experience while the ‘Home’, ‘Log-in’,
‘Flights’ and ‘Contact us’ become conspicuous, one click buttons at the end of the page.

57. Mobile Advertising
Beyond Talk & Text
Marketing spend on mobile display ads &
Mobile Media Consumption (Forrester)
search in 2011: $1 billion
Advertising on mobile devices rocketed by
157% in 2011, to a new high of £203.2 million
(IAB UK, March 2012)
57

58. What is mobile advertising
• Static mobile ads are banners or text ‘snippets’ served to the screen of
a mobile device within a mobile web site, or ‘in-app’
• Rich media mobile ads include video, animations and other interactions
• Most ads perform an action (normally directing to a website, or playing a
video, etc) when clicked
• Ad providers provide ‘tags’ which are inserted into the site or app and
are used to insert or ‘inject’ advertising content
• The ads are monetized on a ‘Pay-per-click’ (PPC) or ‘Cost-per-
thousand’ (CPM) basis
• Ads are automatically chosen using various criteria; country, location,
historical browsing / behaviour, device and other details

59. Ads for apps
• Google has recently
announced a new feature in
which apps can be
downloaded directly from
search results
• This adds immediacy to
search results, reduces the
need for multiple clicks and
vastly improves the
customer experience

60. House ads (‘Heros’)
• Rather than ‘lose’ the user when
they click on an ad, banners can
be used to provide interactive
full-screen graphics, further
encouraging the user
• This type of advertising is
typically aimed at on-site product
promotions such as special offers
/ ‘hero’ items
• Once clicked, videos, clickable
‘hotspots’ on graphics and even
games can be provided in the full
screen ad

61. Apple’s iTunes Store data allows
for highly targeted deployment of
ads using known customer details
and preferences:
 Demographics
 Music passions
 Movie, TV and audiobook
genre interests
 Location
 Application preferences
 Device (iPhone, iPad,
iPod Touch)
61

62. Role of Mobile
Print Poster Mobile Web Site Facebook
SMS short code gives access Entering Competition sends Publishes your activity on Facebook
to mobile site user to Facebook site to your friends’ news feed
62

63. Role of Mobile
iAd Banner iAd Content
Ad placement on 3rd party site Watch the advert, download wallpapers of the Lynx angels and purchase and
download the theme tune Sexy Boys from iTunes, all from within their app.
63

64. Mobile is performing well through the funnel
Cost per acquisition is lower than desktop
• Mobile advertising is outperforming desktop in both
display and search
– At CTR and CPC levels
• Overall bounce is high because most sites are not
optimised
– Optimised sites showing bounce-rates the same as desktop
• Conversion rates are higher
– Overall the average on mobile is a little lower but this is because
of sites which have not been optimised
• But basket sizes are lower on mobile
– Poor navigation and UX
– Few hero promotions
– Slower networks, less ‘window shopping’

65. Conversion rates strong
Conversion rates by device (from affiliates)
Source: econsultancy (July 2011)

66. m-Commerce
66

67. Units of commerce
• Mobile commerce valued at £172bn
globally for 2011 (Informa Telecoms
& Media)
• UK has highest mobile commerce
participation (23%).
• 18-34 yrs driving trend.
• Not afraid of big ticket items: John
Lewis and M&S selling items in
excess of £3,000 via mobile
• 4.30pm is the busiest time for mobile
internet usage in the UK

68. Reinventing the shopping experience
Comparison Shopping
• Consumers use mobile to help make
decisions in-store: 60% use mobile web,
40% use apps, 37% use both
• 47% used their phone to compare prices
• 34% compared products
• 20% looked at product specifications
• 15% compared reviews
• 26% looked at a competitor’s website

69. Reinventing the shopping experience
Social Commerce
• Retailers using social networking tools to boost
retail sales as a speedier identity and
authentication mechanism.
• 2/3 of online retailers said they planned to offer
visitors the ability to use their Facebook log-ons
on their e-commerce sites. Share becomes a
function of buying…

70. Reinventing the shopping experience
POS
• Starbucks ‘mobile wallet’ app to
pay for purchases
• Guess & Disney using mobile POS
to assist customers and execute
sales at the shelves rather than the
registers.
• POS Instant Offers & Lotteries

71. • ASOS’s mobile website revenues topped £1m in the UK during December.
Next it is creating a transactional mobile app as an extension of its Facebook
store.
• John Lewis: Conversion from visitor to sales is now 20% since the launch of
the mobile site. Creating a transactional mobile app after its mobile site saw
a 50% increase in mobile traffic since launch in October.
• M&S site received over 1m unique daily visitors in December 2010
• Ebay’s fashion-themed iPhone app upped its mobile revenue to over $2bn
(£1.27bn) last year, a 300% increase on 2009
• LK Bennett: first commerce app that uses Paypal Mobile. Allows products to
be shared via Facebook / email etc
• The Outnet lets users share the most popular editorial content from its
website, such as their favourite outfits, with their friends via social networks
• New Look mobile commerce site features one-click shopping & integrated
with web commerce engine and user accounts

72. Beyond Talk & Text
Mobile Media Consumption
Mobile Apps
10bn Apple apps downloaded
350,000 apps available – Apple
100,000 apps available - Android
72

73. Timeout / Smirnoff
Branded content partnership to provide a lasting utility for consumers
73

74. World’s Best Bars / Jameson
Branded content partnership to tap bar culture
74

75. Absolut Drinkspiration
Mobile app pulls/pushes content to other channels
 Drink recommendation based on a variety of
contexts
 Seamless styling and complementary
functionality with other brand channels
 World trend list with real time update on what
is ordered around the world
 Post drink choices and locations to Facebook
and Twitter
 Location based features using GPS
75

76. Waitrose Christmas app
Business need The solution Results
To build an innovative yet useful Design requirement: fresh every day
‘kitchen tool’ mobile application which Incentivated utilised Waitrose’s
gives Waitrose’s customers the ability to Christmas brand paper textures to add
organise their Christmas. The app must fun to the real time animation. This
be recognised as part of Waitrose’s element was designed to make the
2010 Christmas campaign. Overall customer want to open the app
design should be themed as charming, again and again.
traditional and seasonal.
Algorithms were written so that return Design requirement: the app must be
users saw refreshed content, while useful to the user and not just a one-
infrequent users saw Waitrose’s most off
important content. download
• We produced a practical Turkey
Design requirement: must be on Timer as part of the kitchen tool kit.
brand This would guide less confident
Incentivated integrated the primary cooks.
colours of the Waitrose Christmas in- • Canapé calculator was really
store and on-pack creative into the core designed for the hard core party
navigation. perfectionist.
• In Big Day Planner they drew upon
They made the user experience fun and intrinsic Apple and Android design
visual by creating a pictorial menu. features.
• The Recipes section was the main
feature of the app including an
extensive number of recipes. The
main draw was Delia and Heston.
Incentivated case study: Apps | Creative services | Location marketing | Acquisition | Retail & automotive: Waitrose

77. Results
• People like to share their recipes Apple gave this app commendation Recipes were viewed 500,000 times;
with their friends, and this was made and praise. It featured in the 10% shared recipes and 10% viewed the
easy by allowing them to connect application store for four weeks and it videos.
with Twitter, Facebook and email. scored highly within App of the Week,
• It wasn’t all about food. A detailed, Lifestyle, Staff Favorites and What’s Hot The app gained positive reviews and
fun gift finder was created that categories. generated excitement online through
inspired shoppers to buy gifts. To Twitter and Facebook. It also gained
avoid being overwhelmed by so The Android Market also featured the positive reviews on Twitter as well as
many options, a ‘shake for app, achieved “app of the week” in leading technology review sites.
suggestion’ function was added. both the Apple and Android app stores
• They allowed automatic look-ups of simultaneously. This is the first The Marketing Society Awards for
the user’s location to make search branded app to achieve this. Excellence 2011 judges' verdict on the
for a branch easy. initiative: 'A really nice app that works
The app was placed in the top 15 of the well and is absolutely on-brand.'
branded app charts for 2010.
Waitrose were 100% behind the
development and marketing of the app 500,000
and featured it on the front cover of recipes
their “Weekend” in-store newspaper, downloaded
on POS throughout the store and in
their staff newsletter.
10%
Almost 100% of unique users peeked viewed the videos
behind the advent calendar doors
during the 24 days.
The app achieved more than 90,000
downloads in one month and averaged
10%
more than three minutes per session
length. shared recipes
Call us on 020 7392 2323 today to see how mobile can be integrated with your marketing strategy.

78. Beyond Talk & Text
Mobile Media Consumption
Location-Based Services
78

79. Location-based Campaigns
 Gillette etc / Nike
‘Getaway’ campaign for the Mini Clubman launch turned Stockholm into a living game board.
Users ‘captured’ the virtual Mini by getting within 50m using GPS on their phone. 11,000 people
participated to win the car.
Airwalk Invisible pop-up store: Extreme ‘sneakerheads’ were targeted through blogs and
directed to download an app which sent them to dedicated locations where only through their
phones and augmented reality were they able to see the new shoe. Taking a picture earned
them an exclusive promo code for purchase.
79

80. SMS helps reduce cab-related sexual assaults by 46%
Business need The solution Results
As part of a print, poster, radio and TV Subscribers text HOME to 60835 • 46% reduction in cab-related sexual
campaign for a safer London, a text (spells “GoTFL) and receive local, attacks on women over five years
message service was created to give out licensed, minicab and taxi booking- (2002 -2007)
booking numbers for licensed minicab office phone numbers for the area they • Just 4% women used unlicensed
and black cab firms in the user’s are texting from. minicabs in 2007 in comparison to
location. 18% in 2003
• 100% year on year increase in
A Location Based Service search is used monthly uptake since new branding
to pinpoint the subscriber’s exact campaign
location, enabling the relevant
information to be identified and sent.
The database of 45,000 licensed
FROM: 60835
Local licensed
minicabs: Reliable
minicab operators and drivers is
updated daily to maximise safety. 4%
Radio cars
02086716666, P&L
Unlicensed cab
Car Service
02077339582. For a
use
Black Cab, call ONE
NUMBER on
46%
08718718710
Reduction in cab-
related attacks
Case study: CRM beinspired@incentivated.com
Travel & Tourism | Public Sector: TfL & Mayor of London www.incentivated.com

81. Interacting with
the physical world
Beyond Talk & Text
Mobile Media Consumption
81

82. QR BP
One of these QR codes got more scans than the other

83. New app review - Halifax
• Halifax released its new Home
Finder smartphone app today,
offering users a new method
of searching for property
information on iPhone and
Android devices.
• The first page you see offers a
search tool, mortgage
calculator, access to your
favourite properties and a
guide to the home buying
process.

84. New app review - Halifax
• A quick search brings up all
the properties in your chosen
area in a list or displayed on a
map, and this can then be
filtered by the number of
bedrooms, price and several
other criteria.
• You can then access all the
usual property details,
including images, but also the
area’s sales history from the
land registry and a repayment
calculator to see if you can
actually afford it.

85. New app review - Halifax
• When you have chosen which
flats you want to view, the app
allows you to add notes to the
property details as you look
round.
• You can even take photos of
the property and add ratings
out of five for various criteria.
All the details, including the
photos, can then be emailed
as a PDF and printed off.

87. QR Codes - Instant Lottery
87

88. QR Codes: Delivering Additional / Enhanced
Content
88

89. QR Codes Triggering ‘Likes’ on Facebook
89

90. Diesel ‘Be Stupid’
 Phone users send photo messages to a short code
 Photos sent by short code became part of ever changing mosaic on
Facebook, outdoor projections and in-store displays
90

91. Augmented Reality
Beyond Talk & Text
Mobile Media Consumption
91

92. Enhanced experiences
An entire issue of the magazine is AR-enhanced to add an interactive
dimension to print
92

93. Translation-on-the-fly
Using text recognition,
the app translates any
text the phone camera
is pointed at.
93

94. Re-arranging Reality
The T-shirt
pattern becomes
a game in which
you re-arrange
the tiles to reveal
the full image
94

95. Extra-sensory perception
95

96. 96

97. Future Trends
Beyond Talk & Text
Mobile Media Consumption
97

98. Tablets
 80 new tablets announced at CES
 More sophisticated smartphones &
tablets means a decline in specialized
technology e.g. GPS units, mp3
players, camera, e-readers.
98

99. Near Field Communications (NFC)
 Android Gingerbread already supports an
NFC API. Nokia to follow suite.
 Retailers will leverage NFC in applications to
facilitate in-store purchase
 O2-commissioned experiment that allowed
users to pay for journeys on the London
Underground.
 Voucher redemption
99

100. ‘Internet of Things’
 The networked interconnection of
everyday objects – TVs, cars,
fridges.
 Mobile sits at the heart of these as
both controller and monitor.
100

101. Conclusions
If you want to get the best from mobile …
• Put more effort into your mobile site than applying
a couple of media queries (responsive CSS)
– Page sizes of 1MB will give you sky-high bounce rates
• Apply responsive CSS to email marketing
• In most cases use sites for acquisition and apps
for customer service
• Build hybrid apps
– Integrate with your desktop/mobile CMS
• Use a combination of SMS and ‘in app (push)
notifications’

102. That’s the way to do it
An integrated mobile strategy requires an integrated marketing strategy

103. Some online resources
• www.tnsglobal.com/mobilelife
• http://statcounter.com/
• http://ready.mobi/launch.jsp?locale=en_EN
• http://www.howtogomo.com/en-gb/d/
• http://mobilemarketingmagazine.com/
• http://www.mobilemarketer.com/

104. Thank You
Jason Cross
Marketing Director
jasonc@incentivated.com
@jcmobile10
Incentivated
23 Curtain Road
London EC2A 3LT
Tel: 0845 130 3985
(No code reader? Text CODE to 62233
for a link to a reader appropriate for
your phone)