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THEMOBILE MARKETINGROADMAPHow Mobile is Transforming Marketing forTargeting Next Generation ConsumersBased on interviews with Mobile Marketing Association members,the industry-at-large and the MMA Board of DirectorsWith an introduction by Greg Stuart, CEO,Mobile Marketing Association and a foreword byPaul Palmieri, CEO & Founder, Millennial MediaIn partnership with

FOREWARD BY GREG STUART:CEO OF THE MOBILE MARKETING ASSOCIATIONWhen I look back on the mobile history, starting with the brick cellular phones inthe 80’s to our current smartphones that do everything from reminding us of ourmother’s birthday to playing our favorite TV shows, I am in awe of this channel.We are on a precipice of industry-wide evolution with the spike in mobile adoptiondriving the change.With Facebook, Pandora, ESPN and The Weather Channel all declaring theirbusinesses as mobile-first, this is a clear indicator that companies recognize thevalue of mobile to transform their their brands. They are ready to restructure theirentire business strategies with mobile leading the charge.With the level of immediacy and personalized interactions that mobile offers, Icannot think of a more powerful platform and channel. Mobile devices areomnipresent and the value they pose to consumers is unrivaled. The thought ofnot having a smartphone or tablet has prompted people to consider giving uptheir most treasured activities, or at times people: from vowing off television tosacrificing their spouse, mobile devices are the ultimate necessity to consumersaround the world.At the Mobile Marketing Association, we have recognized this paradigm shiftof the consumer’s relationship with their mobile devices. For marketers, we haveseen mobile positively impact ROI and increase the value of every dollar spentwithin media budgets. There is no longer a question of “why mobile” but anacknowledgement that mobile will empower the marketing community to connectwith consumers to drive awareness, advocacy and transactions on behalf of theirbrands.That is why we are committed to providing irrefutable evidence on the powerof mobile as an indispensable part of the marketing mix. With standards, bestpractices and definitions for current and future mobile trends, we can engage inmore constructive dialogue on how to advance the mobile movement and keeppace with consumer behavior.The MMA is here to promote, advance and support all mobile marketing initiativesto strengthen mobile as a practice. Mobile is the future of all media, and it is abright future for our industry.

INTRODUCTION BY PAUL PALMIERICEO & FOUNDER, MILLENNIAL MEDIAIt’s impossible to go about day-to-day activities without seeing the incredible impact mobiledevices have made on our lives. Mobile devices serve as our alarm clocks, newspapers, wristwatches, Gameboys, MP3 players, portable movie players and much more.The IDC recently reported that by 2016, they expect almost 75 percent of “Smart ConnectedDevice” shipments (smartphones, tablets and PCs), to be made up of smartphones and tablets,this is an international phenomenon that is impacting users and businesses everywhere fromthe US and China to South Africa and India.In this new mobile landscape, consumers have access to information at their fingertips 24hours a day, and they expect their mobile devices to provide utility that will assist them inmaking their lives easier.Going hand-in-hand with this once-in-a-generation shift is a change that is occurring inadvertising. Consumers have changed their media consumption habits, and staples like radioand print don’t have the same pull they once did. Additionally—no matter what medium aconsumer is in, they are multitasking more than ever, showing that advertisers need to take amulti-faceted approach to reaching them.If a consumer happens to be browsing on their tablet instead of paying attention to a TVcommercial, brands need to view this not as a problem, but as an incredible opportunity tocomplement their spend and amplify their message on multiple screens.We are in an age where brands have moved past the traditional DMA/demo targeting of TV,they have moved past the retargeting tools made popular by online ad networks and theyhave begun looking for more.The ability to reach real-world consumer audience segments, and the ability to reach thesepeople at the right time and place, has become the holy grail of advertising, and mobile is thechannel that brands are finding can consistently deliver.Is an in-market car buyer someone who watches Top Gear on BBC? Is it someone who visitedEdmunds.com on the computer? In mobile, an in-market car buyer is someone who we’veseen go to three different car lots in a single day.The next generation of consumers will expect ads to be engaging, they will expect the ads tobe interactive, and perhaps most importantly, they will expect the ads to be relevant to theirpersonal needs.When you combine this fundamental change in advertising with the growth of smartphones,tablets and other connected devices, it becomes clear that if brands approach the mobilespace the right way, they have an opportunity to create the most effective advertising mediumof all time.Whether this is through their own branded apps, or by engaging users through the hundreds ofthousands of great apps that developers are creating and updating every day, the opportunityis truly there.The infrastructure is in place and consumers are ready. The time to deliver is now.

HOW THIS GUIDE IS ORGANIZEDCHAPTER 1MOBILE MARKETING: TRANSFORMING THE WAY BUSINESSES DO BUSINESSCHAPTER 2LAYING THE FOUNDATION FOR YOUR MOBILE CAMPAIGNCHAPTER 3HOW TO THINK LIKE A MOBILE MARKETERCHAPTER 4MOBILE MARKETING TOOLS AND TECHNIQUESCHAPTER 5TARGETING OPPORTUNITIES WITH MOBILECHAPTER 6CONNECTING WITH CONSUMERS VIA MOBILE WEBSITESCHAPTER 7DRIVING DEMAND AND TRANSACTIONS FROM A MOBILE APPCHAPTER 8BUILDING BRAND AWARENESS, GENERATING CLICKS,LEADS AND CONVERSIONS FROM MOBILE DISPLAY ADSCHAPTER 9LEVERAGING THE COMPLETE POWER OF MOBILE USING SMS,PAID SEARCH AND OTHER TOOLSCHAPTER 10THE 7 CHARACTERISTICS OF A SUCCESSFUL MOBILE MARKETING CAMPAIGN

CHAPTER 1MOBILE MARKETING TRANSFORMING THE WAY BUSINESSES DO BUSINESSOnly a few years ago, mobile devices were seen simply as a way to communicate onthe go. The concept of smartphones either did not exist or were in R&D blueprintsand marketers were content with reaching masses of consumers rather than engagingin 1:1 personalized conversation.Fast forward to today, and we are at the precipice of the mobile revolution. Mobile hastransformed from an accessory to a necessity in the eyes of consumers, with 75% ofthe world having at least one phone.Beyond the rapid consumer adoption and usage of mobile phones, is the opportunitythey offer for brands to connect more meaningfully and personally with consumers.Consider it your direct line and immediate connection with audience. Because there isno communications channel tool that offers the same advantage today.Mobile is clearly the future of media, but marketers have some catching up to do withwhere their customers are and to truly optimize marketing, with mobile at the heart oftheir strategy.Most brands spend less than one percent of their marketing budget on mobile. We’veall heard the argument that the one percent spend level is too low, given the fact thatmost consumers devote about 10% of their media attention to their mobile devices1.A study conducted by Marketing Evolution (August 2012) takes this hypothesis onestep further and, through an algebraic formula of measuring reach and frequency withthe installed base of smartphones and other ROI data, found that marketers wouldhave better results if they optimized their marketing mix by allocating an averageof seven percent of their media spend to mobile2. This is the first empirical data thatguides marketers on why they should rebalance their budgets with mobile to achievehigher ROIs.

Many marketers and businesses have realized the value of mobile and have declaredtheir brands and companies as “mobile first.” Marketers are beginning to increasetheir mobile spend allocation, with some marketers way ahead of the pack. There isno doubt companies that continue to spend to the one percent level will be left behindand, eventually, will be forced to play “catch-up,” similar to what happened in the1990s with the rise of the Internet.For the marketers that have realized the power of mobile, there has been a shift fromthe why to the how? How can marketers better integrate mobile as indispensible totheir marketing mix? Some are even one step further and are focused on how theyeffectively integrate the myriad mobile vehicles to achieve their marketing objectivesacross the purchasing funnel.During the 20th century, marketers employed mass-market media channels – TV,radio, print, outdoor and collateral. The result was that brands created marketingmessages that, out of necessity, had to appeal to a broad spectrum of consumers. Forthe most part, marketers were pleased with the results, even though they could neverdirectly measure the effectiveness of their campaigns. As John Wannamaker famouslypointed out, they knew that 50% of their advertising was working, just not which50%.Times have changed and consumer expectation and media consumption behavior haveshifted dramatically. Consumers are moving away from traditional media and the pathfrom awareness to interest to desire to action (AIDA) now has a great deal to do withtheir adoption of multiple screens, especially the smartphone and the tablet. In fact,the new nomenclature replacing AIDA is Path to Purchase.A survey conducted by comScore and Millennial Media indicates that more than half(52%) of respondents use their mobile phones to determine if they need a product.42% stated that they use their phones to conduct deeper research about a product anda staggering 38% use a mobile device when making a purchase4.

Customers are using mobile as a tool to learnmore about products and engage more deeplywith brands to complete the purchase. Theopportunities for brands to leverage theseconnections are significant.What follows is a step-by-step guide designedto help you build a mobile strategy, andlaunch and manage a mobile marketingcampaign, including:“The market is clearly underspending against mobile and itsperformance and usage. If youwent to a CMO and laid out thefacts, the average CMO wouldincrease their spending from 1%to 10% of their total budget.”Cameron Clayton,EVP Digital,The Weather Channel1. Exploring the best ways to lay thefoundation for a successful campaign.2. How to think like a mobile marketer.3. How to use mobile to effectively target your prospects.4. How to leverage mobile websites and mobile apps to drive demand andtransactions.5. How to accomplish marketing objectives like brand awareness, generate clicks,leads and conversions from mobile display ads.6. How to leverage the complete power of mobile.7. How to apply the seven characteristics of successful mobile campaign for yourpurposes.Throughout the guide, we will share with you some successful campaigns that weresubmitted as part of the MMA’s Global SmartiesTM Awards program. Each campaign isa mini-case study on how to implement mobile to meet a defined marketing objective.

If you believe mobile is the future, which data suggests it is, and you believe you canuse mobile to grow your sales and revenue, which it can, then keep reading. Considerthis an introductory guide on how to set-up, launch and manage an effective mobilemarketing campaign.Coca-Cola Uses an Integrated Mobile Campaign to Further Build their Brand atthe London OlympicsCoca-Cola wanted to help make its sponsorship of the London 2012 OlympicGames more relevant to a teen audience, while driving both an increase in brandawareness and a higher frequency of purchase of Coca-Cola.The campaign leveraged mobile apps, mobile web, SMS and a variety of othermobile tools to create an anthem out of the sounds of sport. Nearly one millionimpressions were delivered with a 45% response rate to daily quizzes with digitalcontent prizes. To experience the app, search for Coca-Cola Olympic Games onyour app store or visit http://www.Coca-Cola.com/theolympics/

CHAPTER 2LAYING THE FOUNDATION FOR YOUR MOBILE CAMPAIGNWe’re a nation of multi-screeners – we don’t simply use TVs or computers orsmartphones or tablets to gather information about products or services. Instead,we use TVs and computers and smartphonesand tablets to gather information and learnmore about a product or service. Given this, it’simportant that any mobile campaign integrate“Everywhere that there is aCoke, there is somebody witha mobile phone and we’refinding a way to make thatfact profitable for everybody.”seamlessly into a larger cross-media marketingprogram. There is little benefit to marketers todevelop their campaigns and then try to insertTom Daly,The Coca-Cola Companya mobile component into the larger programretroactively. Integrating mobile as an after-thought does not help optimize or increaseROI and reduces the opportunity to realize better results with the same budget.A more sophisticated approach is to think mobile first. After all, Gartner has famouslypredicted that by the end of 2013, the primary way consumers will connect withbrands is via their mobile devices3. In other words, in the future, mobile will be thefoundation of your marketing program, not justan add-on.When using a mobile-first approach, considerthe environment of your audience. Will theybe buying a cup of coffee with a mobile app?Will they be doing a price-comparison viamobile? Or will they be purchasing tickets to amovie? Will they be at some major moment ofopportunity or context upon which a marketercan capitalize?“I do think it will take theindustry a couple of years tofully grasp the opportunity thatis there (with mobile), but anyagency or brand would havea good competitive advantagebased on all the data thatwe’ve seen.”Norm Johnston, Mindshare

It’s likely that they’ll use their mobile devices in all of the above-mentioned scenariosand many, many more. The power of mobile for marketers is fortified in the fact thatmobile is pervasive (people have their mobile devices with them virtually all the time),mobile is personal (it allows for one-to-one engagement) and mobile is proximity (youcan reach your consumers in a specific context and/or location).It’s your job as a marketer to leverage the power of mobile along every step of the salesfunnel. Mobile can be used in the very early stages of search and discovery as well as inthe later stages of purchase and loyalty. By understanding the unique power of mobile– that it’s a marketing tool, a sales tool, a CRM tool and more – you’ll be in a positionto differentiate your brand, leapfrog the competition and execute campaigns with anincreased ROI.

Chevy Uses Mobile Super Bowl Promotion to Drive Engagement and CreateBrand PreferenceThe Chevy Game Time app, which won a Gold at the SMARTIES awards, createda live second screen experience for Super Bowl watchers. The app gave iOS andAndroid users a chance to win 1 of 20 Chevy cars by matching their unique licenseplate with one of the license plates used in the commercials. If you spotted yourplate, the car was yours.Players could also answer trivia questions about the game and the ads to winthousands of additional prizes. To top it off, the app also included interactionthrough twitter feeds, video streaming, poll results and push notifications.In the end, the app had 700,000 downloads which resulted in 39,589,530 totalviews, 21,337,927 trivial plays/polls, 4,417,434 push notifications and 20 cars givenaway.

CHAPTER 3HOW TO THINK LIKE A MOBILE MARKETEROne of the key differences between traditional marketing – other than its mass marketorientation – and mobile marketing is that traditional marketing has historically beenused for creating preference and driving demand. Mobile, on the other hand, takeseverything to a new level and can be usedto create preference, drive demand andcomplete the transaction.Unlike print, radio, TV, and even theInternet, marketers have an opportunity toengage the consumer with their brand anddrive to a purchase in real time – eitherin store or online. This is a quantum shiftfrom all forms of marketing in the 20thcentury where the marketing campaign andthe final transaction were two very distinctAction StepsTo fully embrace mobile, it helps tounderstand the depth and breadth ofits power:1. Mobile can create preference,drive demand and help complete atransaction2. Mobile can help generate leads,inbound calls, downloads, in-storetraffic and offline conversions3. Mobile can also help increasefrequency of visits and reducecustomer churnand separate things.In addition, a mobile consumer is more likely to be ready to take action than a nonmobile consumer. According to recent research, 9 out of 10 mobile searches lead toaction5, which can include generating a lead, generating a call, initiating a download,driving in-store traffic and even generating offline conversions.Many brands are also leveraging the powerof geo-locational technology to connectwith consumers based on their physicallocation. This enables marketers to connectwith mobile consumers using relevantmessages or adverting when they’re within“People still watch TV, but I thinktheir engagement with 30 secondads is changing, so we can’t reallyjust rely on that as a mediumanymore.”Jay Altschuler,Unilever

close proximity to their retail locations. They can also send messages based on thestatistical likelihood that their location has something to do with their future behavior.For example, hotel, airline and car rental companies can target mobile travelers whoare located in major airports because of the high likelihood that those travelers will besearching for hotels, airline tickets or rental cars in the near future.Mobile is also an extremely powerful tool for reducing churn and deepening customerengagement. The Starbucks app has been downloaded more than one million timesand allows customers to locate stores, re-load their Starbucks Cards and share theirlocations and favorite drinks with their friends via social networks. Domino’s Pizza hascreated a mobile app that makes ordering a pizza a surprisingly easy experience. AndChase allows banking customers to deposit checks via a photograph taken with theirsmartphone.By using mobile as a business tool instead of just as a marketing tool, brands canincrease the frequency of transactions with customers and, in many cases, increase theamount of each transaction. Just as important, marketers can reduce customer churnand increase customer satisfaction. All of these benefits have a distinct and immediateimpact on the ROI of the marketing campaign.

How OMO Detergent Used Mobile to Increase Loyalty and Drive SalesOMO is a laundry detergent based in South Africa. They used a mobile loyaltyprogram that encouraged customers to engage with the brand and receiverewards for buying OMO more frequently than before. Customers who bought theproduct and dialed the code on the packaging received a call back from Nkanyiso,a South African celebrity. Rewards were designed to drive repeat purchases. Bythe time customers bought their fourth or fifth bag, they received mobile vouchersfor school socks or a school shirt. The campaign generated a 20% lift in salesduring the course of its run.

CHAPTER 4MOBILE MARKETING TOOLS AND TECHNIQUESIt is important for marketers to understand the multitude of options available withinthe mobile toolbox. Unlike other media that are predominantly focused on a singlemarketing objective – TV drives brand awareness, direct mail drives conversions andmore – mobile has solutions and vehicles which drive against any and all marketingobjectives. Once marketers have a good understanding of the available tools, the nextstep is to understand how they intersect with eac