Mobile marketing trends, stats, and best practices were discussed over five parts. Key points included: mobile usage is growing rapidly worldwide, with smartphones accounting for over half of US mobile users by 2014; magnetic content that is useful, well-executed, and fun is important; precise targeting and geo-location can enhance mobile campaigns when used judiciously; mobile should be used as an additive channel to integrate with other media; and measurable goals like coupon redemption and a framework that links marketing investments to perceptual, behavioral and financial outcomes are needed to evaluate mobile ROI.

1. September 14, 2011N E W Y O R K N YMobile Marketing: Trends, Stats andBest PracticesMobile Marketing: Trends, Stats andBest PracticesGeoffrey Ramsey@geofframsey

2. What we’lllook atthis afternoon…Part I: Mobile Landscape – Consumer ViewPart II: Mobile Landscape – Marketer ViewPart III: A New Mindset for Marketing: Magnetic ContentPart IV: Five Mobile Marketing StrategiesIdentify and Understand your Mobile AudienceEmploy Precise TargetingConsider Geo-Location TechnologyMake it Measurable and Actionable with Mobile CouponingUse Mobile as an Additive, Integrated ChannelThink Before You App!Part V:Mobile Measurement

3. Part IMobile Landscape: The Consumer View6.9 B World Pop1.6 B home internet users

4. 3.8 B mobile users (55%)Source: eMarketer, 2011 (supported by ABI; BITKOM; Informa; ITU); US Census Bureau, Dec, 2011

5. In many countries, mobile is the 2nd most accessed media, after television viewingIn China, 57% penetration = 763 million mobile usersIn some countries, mobile is #1:ColombiaEstoniaLatviaSaudi ArabiaRussia#2Turkey#2China#2Egypt#2Mexico#2Hong Kong#2Venezuela#2Indonesia#2Australia#2Chile#2Sources: TNS; TGI; Roy Morgan; Sinomonitor; Synovate; GfK; PARC/TGI, 2010

6. Newspapers: 30 minsMagazines:20 minsMobile: 50 minsInternet: 2 hrs, 35 minsTV: 4 hrs, 24 mins

7. US smartphone penetration?(% of US mobile users with a smartphone)67%?8%?38%?27%?

8. UK……...... 42%Spain…….. 41%Italy……… 38%France…… 32%Germany…. 29%--comScore, 2011US smartphone penetration?(% of US mobile users with a smartphone)comScoreDeloitteInsightExpressBIGresearcheMarketerNielsenPewSource: eMarketer, 2011; various as noted

9. Smartphone users will account for over ½ of US mobile users by 201450% growth

10. While only 1/5 of mobile users conduct searches on their phones, 60% of smartphone owners do (Ipsos; ComScore)

11. While over 1/5 (21%) of mobile users are social…Zokem, 2011Edison Research, 2011eMarketer, 2011comScore, 2011… among smartphone owners, it’s closer to 40%Polaris, 2011

12. tabletiPadpenetration will pass 8% this year, and reach nearly 13% next year4Xgrowth inpenetrationvs. 2010

13. Tablets have quickly become daily fixtures for many activities

14. Part IIMarketer View on Mobile

15. Global execs see multiple devices and platforms as a key trend impacting their business

16. ½ of marketers have mobile in their upcoming advertising plans…“Among ANA members, 62% are using mobile”51%51%Source: IAB survey conducted by Ovum among 300 US firms, 2011 Source: Chief Marketer survey among 681 B2B and B2C marketers, 2011

17. “Over the next 2 years, how will you change your mobile ad spending?”Increase 72%Over 1/3 say they plan toincrease spending by50% or moreStay same 26%1% DecreaseJuly 2011 study conductedamong 200 US firms that usemobile advertising

18. Actual ad dollarsspent onmobile?

19. Spending Growth in 201165%--eMarketer, 2011?2011 Growth Rate forMobile Ad SpendingIDC………………….. 117%eMarketer…………… 65%MAGNAGLOBAL…… 57%BIA/Kelsey…………... 51%ZenithOptimedia…… 45%$1.2 B

20. B2B marketers are spending even less, proportionately, in mobile= 2.2% of total B2B digital ad spending20092014

21. = 4.1% of total digital ad spending= 8.9% of total digital ad spendingGlobal Mobile Ad Spending*$3.5 BillionChina**$445 MillionBrazil**...... $24 MillionArgentina***...... $1 Million= 3.4% of total digital ad spendingU.S. Mobile Ad Spending**$1.1 BillionRussia**...... $20 MillionUK****$215 Million= 3.0% of total digital ad spendingSource: *PricewaterhouseCoopers ($3.6 B); MAGNA ($3.4 B); Gartner ($3.3 B); **eMarketer, 2011; ***PricewaterhouseCoopers; ****GroupM ($230 M); PwC ($213 M); MAGNA ($202 M)

22. Why marketers love mobile marketing…“Mobile is not a silver bullet”--Wendy Clark, SVP, Coca-Cola Company“Mobile works best when it plays a supportive, additive role to other media.”

23. Why marketers are challenged by mobile marketing…

24. The biggest obstacle for mobile marketers is also the biggest opportunity:“Excuse me?!”

25. Beware the Trust Factor!76%49%40%35%13%

26. Part IIIA New Mindset for Marketing:Magnetic Content

27. The classic interruption/disruption model of advertising is waning…We interrupt thisprogramming to sellyou stuff!We interruptthis programto sell you stuff“We need to create experiences, not just sponsor content.”--Frank Cooper, CMO, Pepsi“Marketers are focusing on creating Magnetic Content – so entertaining, relevant, informative or useful – it demands the consumer’s time and attention.”“Advertising is no longer about blasting the most messages to the most people. Instead, it’s about this: Ideas that spread, win.”--Seth Godin

28. “It’s more about ATTRACTION, rather than DISTRACTION.”

29. 20% offMens’ Jeans2-for-1Sale!

31. Five Criteria for Magnetic ContentIs the content Unique?Is it Useful?Is it Well Executed?Is it Fun?Does it make good use of the channelin which it appears?

33. Is it Useful?

34. Part IVSix Essential Mobile Marketing Strategies Identify and Understand your Mobile AudienceEmploy Precise TargetingConsider Geo-Location TechnologyUse Mobile as an Additive, Integrated ChannelMake It Actionable with Mobile CouponingThink Before You App!

35. #1. Identify and Understand Your Mobile Audience(41% Get It)(56% are Clueless)

36. #2. Precise Targeting is Essential…Because it’s PersonalAdhere to strict opt-in, permission marketing policiesBecause it’s PossibleWork with top mobile ad networks who have access to rich subscriber data from carriersStore this information in a database so you can create real-time campaigns segmented by interests, intentions and even location

37. Targeting is a top priority for marketers in 2011:

38. #3. Use geo-location technology (but use it judiciously).

39. You are here.“Have you checked in?”

40. “Less than 10%*of mobile/online adults use location services to check-in”--Pew (5%); comScore (7%); InsightExpress (11%); SNL Kagan (14%); Beyond (17%)Location-Based ServicesGeoff Ramsey @ eM BreakfastPresentingRight this secondCarl Fremont@ eM BreakfastFeeling skeptical2 mins ago“But there’s exciting opportunities, too”Noah Elkin@ StarbucksEmailing on my Android3 mins ago“Doesn’t foursquare have only have about 10 million users?”

41. “The company with the richest social graph and the most extensive geo-location information has the upper hand in providing a better value proposition to the consumer.” --Noah Elkin, Mobile Analyst, eMarketerSpaceTime= intentWhile in stores, consumers are using their phones to compare prices, evaluate products and check inwith trusted friends… …This creates richopportunities to reach consumers just when they are at the point of making a decision.

42. Checking in is motivated by the prospect of value exchange: getting useful information and finding deals

43. #4. Make it measurable and actionable with mobile couponing25%

44. #5. Use mobile as an additive, integrated channel…… to alert consumers to your Magnetic Content

45. Use mobile as an additive, integrated channel…… to track, measure and enhance other media efforts50% of those redeeming coupons were new customers

46. Remember, you’re not just competing with other marketers, you’re competing with thousands of app developers for the consumers’ time and attention#6. Think before you app!Think about the consumers’ needsThink Utility, Think Fun!

47. Part VMeasuring Mobile: A Framework for Success

48. The ROI Challenge…Chief Marketer Survey:51% of mobile marketers are relying on clicks to measure campaign success!MMA/Google/Ipsos Survey, 2011:41% of global marketers said they were not investing in mobile because of uncertainty about ROIKing Fish Media Survey, 2011:63% of US marketers either a) hadn’t measured the ROI of their mobile campaigns or b) simply had no idea what it was

49. Mobile Measurement Challenges:Integration with other media

50. Lack of reliable data collection, e.g., cookies

51. Multiple devices, carriers and operating systems Only about a 1/3 of marketers are integrating mobile with their cross-platform media strategies37%29%*Source: IAB survey conducted by Ovum, based on average of seven industry categories, June, 2011Source: Chief Marketer survey among 681 B2B and B2C marketers, May, 2011

52. Start with the measurement frameworkLook at this in terms of Sales “Incrementality”:Increase in # of transactions and transaction size;

53. Increase in # of customers;

54. Additional revenue from m-commerceSome kind of conversion: registration, coupon redemption, trial, email sign-up, purchase, etcFinancialOutcomese.g., ROILINKAGELINKAGEPerceptual & Behavioral Outcomesi.e., End Action RateLINKAGEMarketingInvestmente.g., Qualified Reach49

55. Thank you(Amazon.com)eMail geoff@emarketer.comTwitter @geofframseyCell 201-989-9230