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Mobile marketing provides many opportunities but also risks of overuse and addiction. Some key points: 1) Mobile usage is widespread globally and in Italy, with people spending many hours daily on their smartphones. 2) Marketers can leverage mobile features to improve customer engagement, but apps must provide clear value to drive downloads and usage. 3) Gamification techniques like points, badges, and leaderboards can boost engagement, as seen in China's WeChat app ecosystem. 4) However, overuse of mobile apps can lead to behavioral addiction, raising privacy and psychological concerns. Brands must avoid intrusive practices that disrupt users' lives.
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- 1. Mobile Marketing: opportunitiesand dark-side Matteo Scarano LUISS Guido Carli09/11/2016Guest Lecture
- 2. Mobile Marketing: overviewand opportunities
- 3. Mobile in theWorld - snapshot 3,8 billions of mobile unique users (51% as worldwide penetration) 39% of total web traffic is on smartphone (21% as year-on-year growth) 83% of Fb users access it also by smartphone (several users are mobile-only) 2GB : monthly data per smartphone (in WE) (forecast 2021:18GB)
- 4. Mobile in Italy- snapshot 30 billions of smartphone (62% as domestic penetration) 2h of daily time are spent on smartphone (on average per mobile user) 50% :YoY growth of data per smartphone (from Q3’2015 to Q3’2016) 87% 85% 84% 84% 82% 81% 81% 78% 77% 72% 64% 52% MOBILE USERS PER COUNTRY ON POPULATION
- 5. Mobile in Italy– market size In Italy, the market value of Mobile Economy will reach €40 billions until the end of this year. Ap. the same value of: GDP of Tunisia 200x Boeing 747 Last SalesVolume of Suning Holdings Group
- 6. Mobile in Italy- use cases Smartphone is becoming more and more relevant.In Italy, we use it for several online actions: SEARCH 26,3M monthly active users (MAU) – 92% penetration on smartphone users (PEN) NEWS,WEATHER,GENERALISTWEBSITES 25,8M MAU – 90% PEN SOCIAL NETWORKS 24,9M MAU – 87% PEN VIDEOS 23,6M MAU – 82,5% PEN MESSAGING PLATFORMS 20,3M MAU – 75,8% PEN MAPS 17,3M MAU – 60% PEN
- 7. Impact of mobileon purchase funnel According to a research by Nielsen in Italy, mobile-connected persons use smartphone to: Find information online about products and services 40% Compare prices of items by different brands 36% Purchase something with online payment 25%
- 8. Marketing implications –change for existing businesses BRAND IDENTITYALWAYS UNDER LENS PARADIGM SHIFT IN COMMUNICATION- ADV MOBILE FEATURES FORA COMPLETE EXPERIENCE Mobile marketing accounts a set of promotional activities that take place via smartphones and mobile devices. Firms use features of modern mobile technology to develop mobile- based campaigns and services too, in order to improve the relationship with customers.
- 9. Marketing implications –mobile-native businesses SMART MOBILITY MESSAGING PLATFORMS INTERNET OF THINGS (IoT) MOBILE WALLET
- 10. All you needis APP…
- 11. But how toeffectively sustain this? • Development costs • Update and maintenance • Fee to app stores -$ +$ • App is absolutely necessary for the business (e.g. carsharing) • Pay per download • Pay per use (subscription, in-app purchases) • In-app adv or fees by third-parties • Boost for selling and re-selling (leverage on customer satisfaction and loyalty mechanisms) • Member-get-member,WOM (in-app social interactions) • Shortcut for up-selling and cross-selling • App as advertising tool for the related-product (buzz generation) • Data monetization
- 12. We have aproblem… The number of apps on the market is dramatically growing. The competition to be on the “first screen” is very hard! Half of smartphone users in USA download zero apps per month. Brands should offer relevant reasons also for this zero-price purchase! Moreover app have to engage users and build an intensive relationship with them. More time spent in app means always more revenues!
- 13. Engagement tools –Gamification Gamification is the craft of deriving all the fun and engaging elements found in games and applying them to real-word services. It engage users and changes behavior with the best ideas from games, loyalty and behavioral economics. User experience have to consider all of these elements. Gamification architecturescan be based on: • Points • Badges • Ledearboards • Team
- 14. Engagement tools –Gamification examples
- 15. Engagement tools –Mobile Ecosystem THE CASE OF WECHATIN CHINA WeChat is a cross-platform istant messaging service developed by Tencent in 2011. The relative app is very relevant in China. 762M montlhy active users 55.2%of that open it more than 10 times per day 36% of that open it more than 30 times per day 200M credit cards uploaded Super-app - several features beyond chat: • Mobile commerce (seamless integration with cross-industries merchants) • Bus tickets, taxi, incident report • Brand channels for marketing initiatives • Offline payments via QR code • And more… Watch the video “How China Is Changing Your Internet” by The New York Times
- 16. The negative sideof mobile usage
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- 18. Addiction – TheoreticalFramework Every addiction is characterized by these features: SALIENCE MOOD MODIFICATION RELAPSE WITHDRAWAL CONFLICT TOLERANCE If this is high, there are two possible evolutions END OF RELATIONSHIP COPING STRATEGIES The addicted person definitely avoids contacts with the object of his addiction The addicted person trying to manage this relationship implementing some mechanisms in order to stem the negative aspects of that.
- 19. My research aboutFacebook RESEARCH METODOLOGY • Screening survey to estimate the level of addiction (395 respondents) • 11 in-depth long interviews GENERAL INSIGHTS • Admission of addiction for several users • Desire to reduce/close the relationship • Feeling of wasted time on Facebook COPING STRATEGIES • Task coping (auto-generated elements to manage the usage) • Avoidance coping (e.g.usage under time restrictions) • Coping with mediation (e.g parents,friends) • Hopeness of physiological closing
- 20. Other “dark feelings”in mobile usage Customers take care of their privacy and often have fears related to data breach without a safety usage of the applications It is important not to be too intrusive in customers’ lifes (e.g. with several in-app notifications). Users dislike to feel under observation by brands everytime and everywhere.
- 21. Which implications forbrands? – examples
- 22. The case ofPokemon Go The application Pokemon Go was launched during the summer reaching in few days more than 90M active users all around the world Despite the addictive usage after launch and the enthusiasm for the VR mechanisms, in October there was a drop of 47% on active users . Which are the reasons for this fast decrease? Which actions would you implement to reverse the trend?
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