Overview of Mobile MarketingOverview of Mobile Marketing

Judd WheelerOctober 2011

How Big Is Mobile?

1.7 billion television sets

How Big Is Mobile?

2 billion Internet users

How Big Is Mobile?

1.2 billion computers(including tablets)

How Big Is Mobile?

4.9 billion combined

How Big Is Mobile?

4.9 billion combined > 5.2 billion paid subscribers

Growing TrendGrowing Trend

• Americans areAmericans are getting rid of landlines

Growing TrendGrowing Trend

• 10 States that have at least 30% of adults rely strictly on cell phones– Arkansas– Mississippi ‐ highest poverty rate at 21.9% in 2009 (Census Bureau)– Colorado– Idaho– Kentucky– Nebraska– North Dakota– Oklahoma– Oregon– Texas

Within Arms Reach 24/7

No9%

Yes91%

Morgan Stanley

ReachReach

• Cell phone penetration is 96% of the USCell phone penetration is 96% of the US population

• That means…O 87% f h U S l i i i hiOver 87% of the U.S. population is within an arm’s reach

Smartphone DemographicsSmartphone Demographics

• Income over $75 000Income over $75,000

• College graduate

/ / li• Men/women: 55/45 split

• Higher percentage African‐Americans and Hispanics than white – URBAN

• Roughly 75% of the users being between age g y g g18 and 54

Mobile ChannelsMobile Channels

• Text Messaging (SMS/MMS)Text Messaging (SMS/MMS)

• 2D Barcodes

• Mobile Web & SearchMobile Web & Search

• Advertising

• Location Based Services (LBS)• Location‐Based Services (LBS)

• Near Field Communications (NFC)

• Augmented Reality (AR)• Augmented Reality (AR)

• Apps

Text May Not Be Sexy, BUT…..Text May Not Be Sexy, BUT…..

• 90% of all text messages read within 390% of all text messages read within 3 minutes of delivery

• 95% within the 1st 15 minutes• 95% within the 1st 15 minutes

• Over 99% read by the recipient• SinglePoint Conversational Advertising

Text May Not Be Sexy, BUT…..Text May Not Be Sexy, BUT…..

• 90% of all text messages read within 3 minutes of delivery• 95% within the 1st 15 minutes• Over 99% read by the recipient

• SinglePoint Conversational Advertisingg g

• Text:– CTR 14.06%  Conversion 8.22%

• Email:Email:– CTR   6.64%  Conversion 1.73% (average 33% change yearly)

• Internet DisplayCTR 0 76% C i 4 43%– CTR   0.76%  Conversion 4.43%

• Direct Mail– Response 1.4‐3.4% (Conversion < 1%)

• DMA 2010 Response Rate Trend Report

Text May Not Be Sexy, BUT…..Text May Not Be Sexy, BUT…..

• Redeemed value of mobile couponsRedeemed value of mobile coupons– 24% higher than Internet and e‐mail coupons

Nearly 50% higher than paper coupons– Nearly 50% higher than paper coupons

SMS AppealSMS Appeal

• Short convenient formatShort convenient format

• Most effective marketing messages = Least amount of thought from the consumerLeast amount of thought from the consumer.

• Permission‐based

Text4NextText4Next

Orange County g yTransportation Authority• Simple & easy

OCTAGO• OCTAGO– Bus– Bus #– Stop #– Route #

G t t 3 i l ti• Get next 3 arrival times• Can preplan by including 

time and date

Polls & PicsPolls & Pics

Courtesy of iMobilize Media

Mobile BarcodesMobile Barcodes

• 1992 – Denso‐Wave (Toyota)

30 characters 3,296 alphanumeric 1,000 characters

( y )• Additional storage capacity accommodates a variety of data beyond 

numbers:– Text

Hyperlink– Hyperlink– Telephone number (Phone call)– SMS/MMS message– Email (Send message)– Contact entry (vCard or meCard)– Calendar entry (vCalendar)

QR Code by the NumbersQR Code by the Numbers

• 14 million Americans14 million Americans = 6.2% total mobile audience

comScore MobiLens study June 2011comScore MobiLens study June 2011

QR Code by the NumbersQR Code by the Numbers

• 14 million Americans14 million Americans = 6.2% total mobile audience

comScore MobiLens study June 2011comScore MobiLens study June 2011

•1200% increase second half of 2010

Mobie Identity Systems report

D l d d idD l d d idDeals, ads and a videoDeals, ads and a video7,581 web site visits (90 days)7,581 web site visits (90 days)

SnapTagSnapTag

• Send MMS – feature phonesSend MMS  feature phones

• Scan with app

Don’tDon t

• Don’t distribute a mobile barcode withoutDon t distribute a mobile barcode without thoroughly testing it

• Don’t link to a• Don t link to a generic webpage

D ’ li k• Don’t link to a webpage that i ’ bil f i dlisn’t mobile‐friendly

Retail Mobile WebRetail Mobile Web

Mobile enabled retail web site

• 54% consumers would shop directly from barcodes in 

i

Mobile‐enabled retail web site

magazines• 12% of retailers offered it Have 

Not40%

• Must break away from traditional channelsE b l ti

Have60%

40%

• Embrace evolution, prepare for future demands OR be left behind

60%

Marks & Spencer (UK)Marks & Spencer (UK)

• 1.2m unique visitors in first 6 months

• Over 10m page views• More than 13 000 orders• More than 13,000 orders 

from site since launch• The most popular handsets:

i il iPh dprimarily iPhones and secondarily Android devices

• 24,000 products purchased range from wide screen TV’s to sofas and clothes

More browser phones than PCs

SearchSearch

iAdiAd• Belgium’s first company to launch iPhone App

• First iAd used in newspapers and magazines

• Ends with product demo (can download)Ends with product demo (can download)

Mobile AdvertisingMobile Advertising

• Opportunity to reach consumers improvingp g

• Mobile ads performMobile ads perform 5 times better than Internet adsInternet ads

Mobile AdvertisingMobile Advertising

• FragmentedFragmented– Over 10 ad networks in U.S. alone– Players like inMobi, AdMob (Google), iAd (Apple), y , ( g ), ( pp ),Microsoft Mobile Advertising, Millennial Media, Greystripe… (none dominate)

• Types of networks– Blind (largest) ‐ awareness– Premium Blind ‐ action– Premium ‐ conversion

Real World Gaming RewardsReal World Gaming Rewards

Kii SDK• Kiip SDK– Rewards in‐gameachievements on mobileachievements on mobilegames with real life rewards

– Raising a level or high score– Rewards based on gamedemographics

• Tap Me• Tap.Me– Redbox ads– Future real‐world rewards– Future real‐world rewards

Location‐Based ServiceLocation Based Service

10,000,000

• Check in

• Find friends• Find friends

• Share on social networks (FREE word of mouth)

• Unlock rewards

Shopkick (Proximity Marketing)Shopkick (Proximity Marketing)

ShopAlertsShopAlerts

• Works with any phoneWorks with any phone (no GPS)

• Opt‐inp

• SMS, Facebook, Twitter, web, in‐store signageg g

• Geo‐fences based off cell towers

SCVNGR – Buffalo Wild WingsSCVNGR  Buffalo Wild Wings

• Go placesp• Do challenges• Earn points

• 720 locations12 week campaign12‐week campaign (March Madness)

• Media & customer engagement

• Improve customer return rate – drive revenuerate – drive revenue

Turn Watching Games into a GAMETurn Watching Games into a GAME

• Take pics of friends, p ,sauciest wing in the basket, fans of rival teams crowd going wildteams, crowd going wild…

• Rewards for completed challenges included: – $5 off (3 points), – a free Coca‐Cola (20 

points) and – free wings (30 points)

• Could share to Facebook& Twitter& Twitter

ResultsResults

• Players generated 20,000+ challenges

• There were 184,000 unique players

• 1 in 3 players returned to play again

• On average, users completed 7 challenges

• 100 million social impressions via Facebook and Twitter.

O l 90• On average, a player spent 90 seconds per challenge, meaning that BWW saw the equivalent of 3.6 years of brand engagement in its locations g gduring the campaign.

Now has an established database of l f184,000 people for its next campaign

Near Field CommunicationNear Field Communication

• Subset of RFID

• 150,000 NFC (+24,000)6 illi t diti l• 6 million traditional

Crone Consulting

NFC PredictionsNFC Predictions

• Chip makers predict 40‐50 million NFC phonesChip makers predict 40 50 million NFC phones by 2011

• ~300 million phones worldwide (20%) phones• ~300 million phones worldwide (20%) phones with NFC by 2014 (Juniper Research)

30% f ll bil h ld id ill b• 30% of all mobile phones worldwide will be NFC enabled in 2015 (HIS research)

People Aren’t WaitingPeople Aren t Waiting

Digital Signage + NFC = mTAGDigital Signage + NFC   mTAG

• CafesCafes

• Health clubs

• AirportsAirports

• Airplanes

• Pharmacies• Pharmacies

• Casinos

Other ExamplesOther Examples

• Purchase rail, metro, airline, movie, concert orPurchase rail, metro, airline, movie, concert or event tickets

• Boarding passBoarding pass• Coupons• Tour guide (AV presentation)• Tour guide (AV presentation)• ID card (students, employee, medical)K d ( h ffi )• Keycard (car, house, office)

• Rental car and hotel keys

Augmented RealityAugmented Reality• Yelp

S t t

• Zagat RETINAC i t t & i t ll– See restaurants

– Click to get ratings and reviews

– Can interact & virtually walk down the street

– Click to get full review gand details

• Create your own AR worldworld

• Open platform• 1.4M active users1.4M active users • Bring digital into reality

QderoPateo Communications (QPC)QderoPateo Communications (QPC)• Articulated Naturality Web• Typical AR “flat”Typical AR  flat• Break barrier of laptop/desktop – convenience of mobile• Weather, museum, hotel, commercial real estate

PSV ConceptPSV Concept

Apps (June 2011)Apps (June 2011)Ave Price: $3.64

Over 7 TBFree, 36%

Pay, 64%64%

$891,982.24

Apps Dirty Little SecretApps Dirty Little Secret

Average: 60 apps downloaded to iPhone or iPad

Paid Free

Average: 60 apps downloaded to iPhone or iPad

• 30% first downloaded

• 5% by day 21

b d

• 20% first downloaded

• 5% by day 25

b d• 1% by day 90 • 1% by day 90

Socialize Inc.

And/OR

+OR

=

IKEA 2010 Interactive CatalogIKEA 2010 Interactive Catalog• Place furniture

– 40 pieces

• Results– PR40 pieces

– Use camera, move, resize, take a picture

Di t l

PR

– WOM

– High downloads

• Discover style– Thru quizzes

North Face (China)North Face (China)• Stake virtual claim

Li k b &

• > 2 million unique visitors to web• Live score kept on web & 

outdoor electronic board

• 18 days

web

• > 651,000 red flags planted

• Champion > 4,00018 days Champion   4,000

McDonald’s Interactive BillboardMcDonald s Interactive Billboard

• Photo Catch– Using cell phone camera– Get one free

• Pick & Play– No app– picknplay se– picknplay.se– Geo‐location– Play on big screen in real‐time

– Last 30 sec get digital coupon w/directionsp /

Cometto Ice Cream (Turkey)Cometto Ice Cream (Turkey)= Word of mouth

B d

• 2 weeks / 2 hours a day

3 illi i i = Brand awareness

Collect 3 ice cream in 45 sec & win

• 3 million unique views

• 3,500 playerswin

“Put your best people on mobile ”people on mobile.

Where in the WorldhAre the Innovations Happening?

• One or two strong innovative companies thatOne or two strong innovative companies that can lead tech change

• Government backing• Government backing

• Consumer willingness to embrace new mobile htech

• Shortage of payment methods or existing NFC systems

October 27 2011October 27, 2011Center for Creativity

http://artofmobile.mobiletulsa.org

Questions?Questions?

Overview of Mobile Marketing

Judd WheelerOctober 2011

jwheeler@comm‐arts.com(918) 493‐5700(9 8) 93 5 00