Mobile Marketing Slide Deck

WHAT PR PROFESSIONALS NEED

TO KNOW ABOUT MOBILEPresented by Kathryn Koegel, Chief of Insights

Introductions: Kathryn Koegel

Contributor to Ad Age

Primary researcher with work

accepted by ARF and ESOMAR

Consultant on digital marketing

strategy

Cited by: NY Times, Wall Street

Journal, eMarketer, Media Post,

Mobile Marketer, Internet

Retailer, DM News

Currently working on reports on

Mobile Couponing and Mobile

Commerce

2

What does mobile mean to PR

professionals?

Mobile is:

Exciting – consumers love this

Hot – and exceptionally press worthy

Social – it amplifies everything social

Activational – it can enhance any marketing

Stats you need to know

The Excitement

Source: Morgan Stanley, April 2010

Global mobile vs. desktop internet user projection

Internet users in millions

Mobile web usage will surpass ‘tethered’ usage in less than three years

Wireless internet usage will soon surpass wired

Source: Nielsen, 2006-2009; *For 2010, Centers for Disease Control and Prevention, May 2010

U.S. Household Cellular-Only Penetration

The CDC reported in May 2010 that the number was now 24.5%, with 40% of consumers 18-

34 having no landline

15% 15%

18%

21%

24.5%

2006 2007 2008 2009 2010*

Almost ¼ of all US households now have no landline

Source; Mary Meeker, Morgan Stanley, 2010

Mainframe

Minicomputer

PC

DesktopInternet

MobileInternet

0

1

10

100

1,000

10,000

100,000

1,000,000

1960 1970 1980 1990 2000 2010 2020

Millions

New Computing Cycles - 10x more DevicesNew= Reduce Usage Friction Via Better Processing Power + Improved User

Interface + Smaller Form Factor + Lower Prices + Expanded Services

10B+

Units???1B+

Units/

Users100MM+

Units/

Users10MM+

Units/

Users

1MM+

Units/

Users

PCs

TVs

Cars

Radios

Phones

Gaming

Tablets

Appliances

Never before has technology adoptionhappened so fast

There are a lot of devices out there

that can connect to the Internet

85%

59%

52%

47%

42%

5%

4%

Cell phone

Desktop computer

Laptop computer

mp3 player

Game console

e-Book reader

Tablet computer

Source: Pew, Americans and their Gadgets, September 2010

Consumers are armed with in-store portable computers/potential coupon delivery devices

Projected Smartphone PenetrationFEATURE PHONE SMARTPHONE

Based on survey data and projections. Source: Nielsen

10%13% 14% 16%

17%19% 21% 23% 25%

28%31%

34%37% 40%

43%46%

49%54%

90% 87% 86% 84% 83% 81% 79% 77%75%

72%69%

66%63%

60% 57% 54%

51%46%

Smartphones will be the majority in US by Q2 of next year

Who’s mobile and behaviors

Source: 1-Insight Express 4Q 2010 Digital Consumer Portrait. 2-Pew 2010

Mobile phone

penetration1

Internet

penetration2

Gen Y (18-24) 85% 91%

Gen X (25-44) 85% 85%

Younger boomers 81% 79%

Older boomers 76% 72%

Mobile phones have higher US penetration in some demos than Internet

* Statically significant difference. Source: Pew Research

African-Americans and Latinos lead non-Hispanic whites in use of mobile data applications,

including early-adopter activities like purchasing via the phone

All adultsWhite, non-

HispanicBlack, non-Hispanic

Hispanic (English-

speaking)

Own a cell 82% 80% 87% 87%

Send/receive text messages 72% 68% 79%* 83%*

Access Internet 38% 33% 48%* 51%*

Use a social-networking site 23% 19% 33%* 36%*

Purchase product 11% 10% 13% 18%

Minorities are especially enthusiastic about mobile

Mobile Media = Connected Media (except SMS) in MobiLens, defined as used phone browser, applications, or downloaded content.

Three-month average ending September 2010 Country: US, N=32,044 Source: comScore MobiLens

The number of people who are using voice only has declined 17.2% year on year, while

mobile media usage has grown 23%

Mobile

Media:

42.4%

Just Voice:

28.5%

SMS (and not

Mobile Media:

29.1%

42.4% of US mobile phone users use their phones for media

Source: Nielsen

SMARTPHONE OWNERSFEATURE PHONE OWNERSALL SUBSCRIBERS

U.S. mobile media usage (past 30 days), Q4 2010

66%

39% 36%31%

23% 22%18%

60%

32%

20%14%

8%15%

7%

86%

61%

80% 77%

62%

40%

50%

Text Messaging/SMS

Picture Messaging

Mobile Internet Email App Downloads Text Alerts Location-Based Services

152.3 M 90.8M 83.2 M 71.8 M 52.4 M 50.0 M 42.3 M

Note: Location based services here refers to using anything from GPS on a phone to weather and entertainment info that are plotted to

location – not specficically a “check in” service

Mobile media activities have reached critical mass

Younger users buy ringtones, create their own ringtones and listen to music; mobile internet

services (browsing, apps and e-mail) skew 60%-65% male

Three-month average ending September 2010. Country: U.S., N=32,044. Source: comScore MobiLens

40%

45%

50%

55%

60%

25 26 27 28 29 30 31 32 33 34 35

% F

em

ale

Median Age

Demographics of Mobile Media Activities

Made own

ringtone

Purchased

ringtone

Listened

to music

Social

networki

ng

Purchased

game

Ringback

Played

games

E-mail

App

Mobile

Media

Browser

Unlimited

Data Plan

Higher on chart = more female

Further to right = older

Size of bubbles = # of users

What people do on their phones is predictive by age and gender

Apps reach just 24% of the U.S. population, according to

Pew and Nielsen

Source: Pew/Nielsen, The Rise of Apps Culture, September 2010

All adults

82% use cell phones

35% have apps

24%

use apps

Apps are so cool…but in terms of reach of the US population, limited

Three-month average ending October 2010. Country U.S., N=32,397. Source: comScore MobiLens

17.6%

18.6%

18.9%

19.5%

20.7%

21.1%

22.5%

27.6%

27.6%

29.2%

34.0%

35.8%

43.0%

44.3%

48.7%

Bank accounts

Movie information

Stock quotes or financial news

Tech news

Maps

Work e-mail

Photo or video sharing service

IM

Entertainment news

Sports information

News

Weather

Social Networking

Personal e-mail

Search

NEWS AND WEATHER GENRES

COMMUNICATING AND SHARING

OTHER

Top genres for mobile browsing

On the mobile web, search is tops, followed by email and social

Location-aware services like weather, maps, restaurant information, movie information, traffic

reports are all in the top 10

Three-month average ending September 2010 Country: U.S., N=32,044 Source: comScore MobiLens

25.8%

23.8%

20.0%

17.1%

13.8%

12.2%

10.1%

9.2%

8.9%

8.5%

8.2%

8.1%

8.1%

8.1%

7.1%

5.6%

5.6%

4.9%

4.7%

4.7%

Weather

Maps

Social Networking

Personal e-mail

Search

News

Sports information

Work e-mail

Restaurant information

Movie information

Traffic reports

Entertainment news

Bank accounts

Photo or video sharing service

Stock quotes or financial news

Tech news

Business directories

Gaming information

General reference

Television guides

LOCATION-BASED SERVICES

E-MAIL

OTHER

For apps, weather is tops followed by maps and social

The young and mobile are using those phones while shopping

Source: Chadwick Martin Bailey, Consumer Pulse, March 2011, n = 1491, base = smartphone owners

Comparison shopping, checking for locations and discounts most common

Source: Chadwick Martin Bailey, Consumer Pulse, March 2011

Smartphones enable consumers to do a

variety of shopping research in store

Source: Chadwick Martin Bailey, Consumer Pulse, March 2011

Mobile can be do many things…

The Hot Stuff

Mobile phones are sexy and personal

Phones are extension of personal style

Much more 1to 1 communication with marketers than TV, radio or Internet

Ads on them have higher impact than on the Internet

Consumers focus more on the screens

Product Check-ins: People scan products and

collect points…

This man won 1,000 “Karma” points for CauseWorld (consumers donate points to

charity) program operated by Shopkick

Shopkick app: Consumers earn points just by

walking into a store

Geo-Fencing: Messages can be triggered by

location

Geō-fence noun : a field around any location set to trigger a personalized

marketing message to a consumer entering or exiting the defined area.

How it’s created:

•Upload location addresses

•Proprietary translator creates a “Place Profile”

•Program the desired geo-fence around a

locationFlexibility:

•Geo-fences can be created around any

location

• Add, remove & optimize geo-fences

Geo-fencing Strategy:

•Based on program objectives, trade areas, and

customer demographic/psychographic profiles

How this works…Geo-fence is

triggered

Customer is out

shopping in a retail

area, office area

during lunch time,

sporting event,

concert, or any

other location POI

Triggers the geo-

fence set by brand

Dynamic message

delivered

She/he receives an

SMS alert on mobile

Message presents a

personalized offer

Dynamic message-

promotional, branding,

sponsorship or a

reminder

Option to leverage

digital assets & WAP

Consumer Opts-In

Customer opts-in to

alerts program

through your– Web site

– Social Network

– SMS or email program

– Web or mobile banner

– Inside store locations:

window signage, POS

cards, receipts, etc.

Companies doing LBS messaging

Acquisition

• Carrier’s subscribers

• Portal with multiple brands

• Carrier owns the audience

Retention

• White label program for brands

• Integrate into CRM or loyalty

programs

Loopt and Virgin America: A PR Coup with

a Taco Truck Activation

EMAIL

promo

code

QR codes can unlock games, coupons, link to more info

Burger Kind rich media ads reveal promotion and tap to map

Subway: play a

game, find a location

Checkin’ in for Choos

Starbucks mobile payment system now

nationwide

Anybody can still build a top app: Eighth

grader Robert Nay unseats Angry Birds

Dennis Crowley: Dodgeball &

Foursquare founder and PR maven

Is this man 23 or 35?

Are you his PR person?

Pay attention to anything at

South by Southwest

But display healthy skepticism

It is a bubble just like SilliconValley and Sillicon Alley

Will both men and women do this? And do it again?

How much work does it take?

How will it scale for marketers?

Is there a real marketing application?

Well the world is going there….

Should your brand be mobile?

Key considerations

Are you customers mobile?

Balancing desire for smartphone cool with reach

Is your customer an iPhone person or are they happy with their feature phone?

WAP optimization often overlooked

Essential for all with consumer facing brand, retail locations

Branded app…or not

What can be done to enhance your brand, encourage people to interact with it?

Don’t go for the fun gimmick

• The pressure to make top app lists

• Social – even more and faster – 24/7 access to consumer reviews

• Activation and LBS

What PR professionals typically encounter with mobile

Branded apps die every day

75% of all apps gets deleted within 90 days of download – Flurry analytics

Apps have to be marketed just like any other product

PR and making top lists is great but won’t last long…

Click to download ad buys work brilliantly and are cheap

Come up with a real measurement and content strategy:

Is PR generation the primary goal?

Are 10K downloads worth it for a mass market brand?

Look at Not just downloads but usage

How are you refreshing that content?

Do you understand how people use the app?

Does the app also embrace unique attributes of tablets?

Social moves that much faster

How do you understand the conversation when it

moves so fast?

What is the value of a like or a share?

No excuse for no measurement

Measurement tools:

Cymphony

Radian6

ScoutLabs

Trendrr

The sexy stuff that can get so much

press…

LBS

It’s more a PR than a reach play but go for it

Social Couponing and Flash Sales

The Groupon and Gilt phenomenon

But how long can it last now that everyone is doing it?

Activation of Promotions

Done more in ROW, but why?

Any promotion can go mobile

Any outdoor can trigger more information – lead people to a new destination

Data

In the absence of it in mobile, any piece of research can get press – especially as it relates to tablets

My favorite mobile activation/PR

stunt/sampling program

http://www.youtube.com/watch?v=eXI8doq1k5Y

Resources

IAB Mobile Center of Excellence

Research and creative examples

Mobile Marketing Association

Standards

GSMA Awards archive:

Best mobile programs from around the world

Stats:

Comscore: semi-annual update on US usage

Nielsen: US usage, new research on multi-screen behavior

Pew: impact on news consumption, teen usage

Questions?

To understand more about mobile from a

marketer’s perspective: Quarterly Series

from Ad Age on Mobile Marketing

http://adage.com/whitepapers/