The document discusses the increasing prevalence of mobile devices and apps, highlighting that 96% of adults own internet-connected cell phones and that the mobile app market is rapidly growing. It outlines strategies for businesses to engage customers through mobile platforms, including SMS marketing, custom apps, and proximity marketing. The document emphasizes that mobile marketing is now a mainstream communication method essential for reaching consumers effectively.

1. July 8, 2011 New Media Dayton There IS an app for that! Is an app in your business future?

2. Mobile is now the primary tool for accessing the web Mobile devices are constantly connected and provide immediate access to the web, to text messaging and entertainment. 96% of adults now own an internet connected cell phone. 63.2 million Americans now own a smartphone. Smartphones provide information, entertainment, music & photos. 35% of adults access the internet via their cell phone on a daily basis. The market for mobile apps is exploding. Subscribers downloaded 10.9 billion apps worldwide in 2010. Fortune 500 brands and other top brands are using mobile ads for branding and as a direct response medium. According to eMarketer, U.S. mobile advertising spend was $743.1 million in 2010 and is projected to reach $2.5 billion by 2014. Source: Pew Internet and American Life Foundation

3. “ According to Borrell Associates statistics, more than half a million apps are downloaded every hour and the average smartphone user has 22 of them.” The average smartphone users spends 2.8 hours per day using apps and 3 in 5 people first turn to an app before searching the Web, says Mobclix. “ Consumers in the United States are more likely to buy a smartphone in 2011 than PCs, feature phones, eReaders, media tablets and gaming products, according to a recent survey by Gartner Inc. U.S. smartphone sales are expected to grow from 63 million units in 2010 to 95 million units in 2011. By comparison, mobile PC shipments are forecast to total 50.9 million in the U.S. in 2011, up from 45.6 million in 2010. Report: Top 10 App Trends of 2011 , Read Write Mobile , December 28, 2010 2010 App Game Changers , Mobclix, December 20, 2010 Americans more likely to buy smartphone than any other device: Gartner , Mobile Commerce Daily, February 23, 2011 How fast is the mobile app marketplace growing?

4. Businesses of every size are targeting customers with smartphones as the primary communications medium

5. Mobile marketing is mainstream

6. Every social media site is now accessible through mobile apps. Mobile is the primary vehicle for reaching consumers through social media

7. Apple iPhone/iPad Android Blackberry Apple sole manufacturer 300K+ apps, 9000 developers One app store / common hardware Tight control over distribution Native programming language: Objective C / Cocoa Safari browser Tablet computer: iPad iAd Mobile advertising Network: ATT, Verizon Licensed to 27 manufacturers 100K+ apps Multiple app stores Numerous hardware variants Registered app Native programming language: Java / Android API / SDK Multiple browsers Multiple tablet computers AdMob Mobile advertising Network: many RIM sole manufacturer 10K+ apps Multiple app stores Multiple hardware variants Registered app Native programming language: Java / Blackberry API / SDK RIM browsers AdMob Mobile advertising Network: many News from the front… the platform wars

8. What are some of the solutions available to reach mobile customers? Option Use 2D bar codes to print media and promotions to the firm’s web site Bar code scanning Objective Action Print media can include QR codes to link to web promotions, offers and general information Send SMS messages to customers to trigger customer response Text / multimedia messaging Send SMS messages to trigger a customer response Make web site easily navigable by smartphone users Create mobile friendly website Leverage mobile frameworks to present web data on mobile devices Target customers on mobile devices Use mobile device advertising Provide mobile web access and track web traffic Provide enhanced capabilities to lock in customers (loyalty card, payments) Create a custom app to engage customers Develop custom app and integrate into business processes Develop kiosk solutions and integrate with promotions Drive in-store sales Proximity marketing Cost $ $$$

9. Reaching your Audience via 2D bar codes QR Codes can be used to integrate print media campaigns to your web site. Customers download bar code scanner app to their smartphone and software will link to web site page or load data to phone. Adding QR codes to a print campaigns has no incremental cost. QR code scanner can link to existing web page. A steadily growing percentage of customers understand QR codes and have installed 2D bar code reader software installed in their smartphones. Cost: No Incremental Cost Advantages Disadvantages QR Code use is relatively new to Cincinnati and a smaller proportion of customers know what QR codes are and how to use them Some older smartphones have difficulty scanning QR Codes. There are other formats for 2D barcodes such as Microsoft Tags or EZCodes that are proprietary and require the user to be connected to a website when reading the codes. http://www.i-nigma.com/Downloadi-nigmaReader.html i-nigma QR code reader

10. Reaching your Audience via SMS Text Messaging Services SMS and MMS capabilities are available on almost every mobile device. Most consumers, especially consumers 18 - 34, are very familiar with using text message services. SMS programs are simple to implement and are cost effective. Because the requests are user initiated, response rates are on average about 12% vs. < 2% for other web based advertising. Multimedia Message Services (MMS) is the mechanism to send images, video and audio to a user using extensions to the SMS messaging protocol. Common Short Code (CSC) is a five or six digit number to which a user can send a text message. Common short codes are obtained by registering at the Common Short Code Administration website below. The cost is $500/month for a randomly assigned number or $1000 per month for a specific numeric code. http://www.usshortcodes.com/index.html Cost: $ 500-$1000/month + development costs Advantages Disadvantages SMS Spam is becoming more common. Uses response rates are declining as a consequence. To be effective, SMS campaigns must be coordinated with campaigns that use alternate marketing channels.

11. Reaching your Audience via Mobile Web Applications Development Cost: $5K and up Advantages Web client based solution. App distribution from server. Server can detect mobile device type and map screen data to mobile device view. Frameworks make it possible to emulate native code handling of gestures and touch behaviors. Can be programmed to recognize any smartphone or tablet device. Best option to launch a mobile app based solution. Can test different solutions at lower cost / risk than native app development. Can run Flash vide and Actionscript via Flash plug-in in the browser. Disadvantages Mobile web access does not provide the same level of customer engagement as native apps. Navigation to mobile web app is a multi-step process that is more complicated than clicking on an icon. Smartphone users are less tolerant of websites that do not emulate native mode behavior.

12. Reaching your Audience via Custom Smartphone Apps Cost: $20K and up Advantages Resident on the phone. Generates a higher level of engagement with the customer. Accessed from the smartphone main menu. Icon is always visible. The application guides the user’s interaction with the business. Apps typically provide greater value to the end user and can be used to perform more complex interactions with the business (e.g. banking transactions). Disadvantages Organization must develop and maintain the application. Applications require ongoing maintenance and support, and will need to be updated as user needs change. The software development, distribution and management process is much more complex than traditional web development. Skilled app development resources are very scarce, demand is very high, and development costs are rising quickly.

13. What is the difference between a Mobile Web App and a Custom Smartphone App?

14. Mobile Web vs. Native Apps Mobile Web Mobile Web uses traditional client server approach where screens are mapped via HTML user interaction is managed via Javascript is handled by a browser executing in the mobile device. HTML5 / CSS3 are supported by all mobile browsers. HTML5 provides direct support for features like geolocation, embedded audio and HD video, offline storage and database, vector graphics, etc. Frameworks like JQuery Mobile, Titanium and Phone Gap are used to access the native capabilities of the phone and respond to user gestures. Users expect web sites to be mobile device friendly and format data for display on their device. Native Apps Native apps are downloaded from an app store or proprietary library and remain resident on the device until deleted. Apps are invoked by clicking on the icon on the device main menu page. Native apps are written in the programming language for the device… Objective C for iPhone, Java ME for Android and Blackberry. Apps written for one device family are not portable to any other device family. Native apps use a table driven hierarchical navigation model. Native apps can invoke the browser from within the application to perform functions that are typically performed via web based client server apps, e.g. playing flash video or flash based games, e-store shopping cart.

15. Usage statistics for mobile apps Issues User behavior when using smartphones is different than the user behavior when using workstations or laptops. Users average 20+ apps on their cell phone and there is a high turnover rate in resident apps. Native apps must be programmed to capture and report app usage at a very granular level. Visibility into customer behavior is not as simple as capturing page views via Google statistics. Native app usage counts need to be reconciled with the server side statistics to understand whether the application is being used as expected by the users. The goal is to understand what is not working rather than what is working. Native app analytics are in their infancy. Information that an be captured today via resident apps analytics tools include: session count, session length, new downloads, device type, and the location where the app was used. The most important statistics for native apps include: social media referrals, downloads, uninstalls, abandoned transactions, and counts of specific actions performed via the app. Mobile app statistics providers: Flurry, AdMob, Webtrends

16. Apple’s iAd and Google’s AdMob programs allows mobile ads to be sent to smartphones if the user opts in. Push notifications set an alert notification in the home menu and the messages will be displayed within the target application. Reaching your Audience via Mobile Banner Ads

17. http://www.youtube.com/watch?v=DpLRQy5cNIc&feature=&p=ECE328605D4296AE&index=0&playnext=1 Emerging Solutions on Mobile Devices… Gaming, Lifestyle and Affinity Marketing Gaming, Lifestyle and Affinity apps are emerging tools for engaging prospective customers Games such as Angry Birds and Mafia Wars create a new level of engagement. Gaming and social media have successfully pulled 18-24 demographic away from prime time television to engagement via smartphones and tablets. Gaming and lifestyle strategies create multiple new categories for revenue generation… embedded advertising, virtual goods, paid cheats, character merchandising, product tie-ins, and lots more. Lifestyle marketing strategies with these kinds of innovative channels achieve incredibly high response rates. ROVIO “Angry Birds” App Design and Monetization Strategy

18. Proximity marketing leverages the communications and geolocation capabilities of smartphones to direct targeted ads at mobile users within a limited geographic area, typically the point of purchase. Marketing Solutions Based on Short Range Connection Strategies,.. Bluetooth, Bump, SMS, Audible, QR Codes Proximity Marketing is used for point-of-purchase, kiosk and special event marketing. Marketing strategies include walk-by “talking” shelf tags, in store SMS, 1D/2D bar code scanning, “bump” message exchange, subsonic phone communications Next phone generation will include GPS receivers that will resolve location down to 3 – 5 feet Proximity marketing is an ideal method for engaging customers at public events Proximity marketing has moved from bleeding edge concept to deployment over last 6 months Emerging Solutions for Mobile Devices… Mobile Proximity Marketing

19. Mobile payments via smartphones is fast becoming a reality. Major credit card processors like VISA, MasterCard and major bank consortiums are preparing next generation POS systems. Emerging Solutions on Mobile Devices… Mobile Payments Direct Mobile Billing Billed against customer account balance. Scans 2D code at checkout. Vendors: AT&T, Verizon, T-Mobile, PayPal, Sprint, O2 (Germany) Near Field Communications Mobile App Billing NFC is a short range communications protocol that exchanges payment info. Vendors: AT&T, Verizon, T-Mobile, PayPal, Bank of America, US Bank, Wells Fargo, Google Wallet, Barclays, Orange, ANZ Bank, ABN Amro, NTT Docomo Transportation: NYC Transit, London Underground, DeutscheBahn Billed directly to cell phone subscriber account Vendors: AT&T, Verizon, T-Mobile, PayPal, Sprint, O2 (Germany)

20. Takeaways… Mobile devices are becoming the primary tool through which customers are accessing the internet. They now expect to view sites in a mobile ready format. Customers use mobile devices to find information quickly with a specific objective in mind. Demographic trends and new technologies such as mobile payments will accelerate the trend towards smartphones as the primary platform for customer engagement. Mobile marketing is now mainstream and is rapidly becoming the primary medium through which customers view your business.

21. What Consumers Always Take with Them…

22. Bob McCarthy Biography Bob McCarthy is the President and CEO of ServiceWeb Systems, Inc. a software development and services company based in Cincinnati, Ohio. ServiceWeb Systems is a mobile device and web development services company based in Cincinnati, Ohio. SWSI uses onshore and offshore resources to deliver custom smartphone and tablet apps quickly and cost effectively. Visit the SWSI website to download this presentation or scan the QR code below for contact information and a link to our website. http://www.servicewebsw.com http://www.twitter.com/servicewebsw

23. Bob McCarthy [email_address] 513-527-4886 Thank you…