Why Mobile marketing is important and important trends in mobile marketing
1. Adobe Online Marketing Suite Webcast Guide
Smart marketing for smartphones—
why mobile marketing matters
Presented jointly by: Mobile is becoming one of the most important channels in the marketer’s arsenal, not only because of the
Brandon Casenave
opportunities that exist today but also because of its expected potential over the next few years with the
NBC Universal widespread adoption of smartphones. This guide explores mobile usage and innovative ideas for marketers
who want to incorporate mobile into their marketing strategies. Like other marketing channels, mobile
Thomas Husson
marketing should be measured to help marketers create, optimize, and target content.
Forrester Research
The mobile marketplace
Let’s begin with the way consumers are interacting with mobile devices today and how their behavior is likely
to evolve over time. We’ll look at what some companies are doing to tap into these emerging opportunities
and examine best practices and successful strategies for creating engaging mobile experiences.
The growth in How consumers are using mobile
s
martphone adoption
presents new marketing
opportunities.
2. In 2007, only 7% of mobile subscribers in the United States owned a smartphone. By the end of 2009, that
number had grown to almost 17% (one in six). However, the primary use remains communication. Comparing
Forrester surveys of U.S. adults conducted in 2006 and 2009, SMS text messaging went up from 32% to 63%,
and MMS multimedia messaging increased from 16% to 45%. A growing number of users said that they were
also using their smart devices for other activities as well:
• Accessing the Internet
• Playing games
• Checking the weather
• Listening to music
• Reading news
• Accessing social networks
• Accessing telephone directories and maps
• Sending text messages
• Taking pictures and making videos
• Performing online banking and other financial transactions
• Researching products for purchase
• Receiving coupons and promotions
As more consumers buy smartphones, these activities will eventually reach critical mass. Mobile Internet was
available on 21% of mobile devices in 2009, but that number is estimated to reach 40% by 2014. Mobile use is
especially widespread within the 18–24 year-old demographic. New consumer behaviors are emerging very
quickly as mobile devices become a larger part of our everyday lives, moving from niche products to mass
market adoption.
The emergence of mobile marketing
As more and more people use mobile devices for a variety of everyday activities, mobile is evolving into a
constant digital hub. The smartphone phenomenon has made the business world take notice. Retailers expect
to generate sales of $1.5–2 billion this year alone via mobile phones.
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3. Where marketing executives once turned to mobile devices to create audiences for their products and deliver
value-added services, they now hope to achieve other goals as well:
• Increase customer engagement – 52%
• Improve customer satisfaction – 36%
• Appear innovative – 30%
• Build loyalty – 28%
Many companies use standard SMS text messages in their marketing, while others are using (or plan to use)
banner ads, mobile video, and other online tools. One recent example is the Calvin Klein launch of a new
fragrance. The objective was to promote awareness of the ckiN2U fragrance among young men and women
through mobile marketing and distribute samples to drive traffic to Boots stores where the fragrances were
available for purchase. The response rates for this smartphone campaign hit an amazing 39%.
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4. How marketers are tapping into the mobile opportunity
Although communication will remain the backbone, mobile will eventually be the digital hub for messaging,
content creation, consumption, web access, and online transactions.
Most likely, the mobile marketing space will consist of a new crop of applications created specifically for mobile
devices. iPhone® users already have a wide range of applications available, and Google and Apple® have spent a
combined $1 billion on mobile application networks. The most popular applications deliver games, music, and
social networking to mobile phones, but many others are available, and this number is growing daily.
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5. Although not yet in widespread use, downloading mobile applications is gradually becoming more popular as
the smartphone market grows. In a survey of European users, 15% of smartphone users said that they
downloaded applications at least once a month, as compared with only 4% of all mobile users. In another
European survey that compared iPhone users with non-iPhone users, the iPhone users downloaded
applications much more frequently than those using other mobile devices. Some of this might be because not
all smartphones have access to an embedded application store, but as new models come on the market and as
the networks improve, the gap between the iPhone and other smartphones will close.
Coupons
Coupons is an emerging mobile application trend. While research shows that 70% of U.S. consumers prefer not
to receive money-saving coupons over their phone, younger consumers (18–24) have shown a definite interest.
We can expect mobile coupons to become a larger part of mobile marketing in the future.
Applications as a service
Applications provide a unique opportunity to offer your brand as a service. Some recent examples include
Nestle, which designed an application for moms-to-be that delivers relevant content and value-added services
specific to that target audience. Similarly, Kraft created a recipe-based application that 60% of users were still
enjoying six months after downloading. These businesses created applications that deliver relevant content to
a targeted mobile audience, and they have the tools in place to track usage and find out how consumers are
using the content and services.
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6. Can you think of situations in your business where you might employ this strategy?
Convergence of mobile and social networking
With the success of companies like Facebook, there is a natural convergence of mobile and social networking.
Facebook’s global mobile audience went from 65 million in September 2009 to 100 million in February 2010,
to more than 150 million active users by July 2010.
Social location is an Social location
emerging enabler of
social and marketing
services.
Social location (or SoLo) is becoming an enabler of social and marketing services. As an extension to social
networks, Foursquare, a web and mobile application that allows registered users to connect with friends and
update their location, has leveraged one of mobile’s unique advantages: the ability to pinpoint exactly where
users are in the world and share that information with others. Through Foursquare, users can also share
information about a particular establishment with their contacts, generating buzz, and attracting additional
customers for businesses. Foursquare has started partnering with retailers and different media brands to make
their offerings more visible across the web.
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7. Forrester believes that this is another good indication of where mobile marketing is heading. Location-based
application users tend to be heavy mobile researchers, very likely to check online information before making
key decisions and purchases. They are also heavy social networking users, more than willing to share their
opinions with their networking contacts.
Does social location offer opportunities within your mobile marketing agenda?
Challenges to mobile applications
Despite the success of early mobile applications, marketers need to be aware of the pitfalls. For one thing,
mobile applications, like all applications, must provide a clear benefit to the company using them. A lot of
businesses have developed applications that look great and are fun, but don’t provide a clear strategic
advantage for the brand. Developers were more focused on the number of downloads they could achieve
rather than return on investment (ROI) and other meaningful business metrics.
Fifty-seven percent of The main reason for this disconnect is that mobile marketing is still new and, therefore, not yet tightly
marketing executives say integrated with overall marketing strategies.
that they either have no
mobile strategy in place
today or are just starting Thinking about your mobile marketing initiatives, are there disconnects where more integration is needed?
to develop one.
One of the challenges is that mobile tracking tools aren’t as informative as they need to be. For instance, the
companies cited earlier put tracking codes in their applications so that they could see how customers were
engaging and whether those engagements were having a financial impact. But generally, the tools didn’t correlate
with larger business goals. Most of them measured traffic patterns, but only 30% measured customer satisfaction.
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8. As more consumers download more mobile applications, marketers will need to follow the basic rules of
marketing. They will need to know which applications are being downloaded, who’s downloading them, how
they are being used, and how frequently. In short, mobile marketing strategies must become more mature if
companies are going to see the full benefit that they offer.
Mobile marketing trends
Although mobile marketing is still a new field, researchers have identified a few emerging trends and their
impact on marketers.
Increased adoption
Mobile marketing isn’t as widely employed as more established marketing tactics, such as email and search
engine optimization (SEO), but a growing number of marketers say that they are planning to add it to their
marketing programs in the next 12 months. Certain barriers exist, like limited audiences and emerging
analytical tools, but those barriers will diminish over time.
While the audiences are small today, it is expected that by 2014, 39% of mobile users will be employing their
devices to access the Internet, following the same growth trends that PC Internet access experienced.
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9. Increased spend
As the audience grows, so will mobile marketing budgets. Brands are now in the process of developing
applications for iPhones and other devices, which means that they will need to invest in promoting those
applications to drive traffic. Global mobile marketing spend is expected to rise from $0.5 billion in 2010 to $1.5
billion by 2014.
Mobile media metrics
As mobile spending increases, companies will want to know whether that spend is yielding the returns they
expect. They will want to know the size and relevance of their audiences and the difference that mobile
marketing is making to business results. Many companies can already measure the number of visitors, number
of page views, and time spent on mobile Internet. These measurements will extend not only to other countries,
but to applications and other mobile functions.
Metric tools are being developed or acquired by companies like Adobe (with its 2009 acquisition of Omniture,
a market leader in web analytics, measurement, and optimization technologies). Many startups are also getting
into this field, so marketers who once had trouble measuring the success of their applications are beginning to
have many more tools to choose from.
Mobile as a customer-interaction enabler
As mobile becomes a more important part of the consumer’s daily life, we will see it enabling customer
interaction as an extension of the Internet, a cross-channel tracking mechanism, and a more contextual
enabler of “always in my pocket” communication.
Although there will be more interaction between mobile phones and other channels, mobile has some distinct
advantages over more established media. Mobile devices provide quicker access to time-sensitive information.
And, as more consumers buy things via mobile phones, companies have more opportunities to upsell or
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10. cross-sell, build loyalty, and make location a part of their sales strategy. With mobile marketing, they can
deliver more personalized content based on location and behavior, and even pick the best time of day to
interact with their customers.
It is important to But when devising a mobile marketing strategy, marketers need the technology and metrics to measure and
i
ntegrate your mobile refine their overall mobile marketing strategies to justify their mobile spend. Because mobile devices will be
strategies with the rest of
interacting with more traditional marketing channels (online, print, TV), marketers must also integrate their
your marketing program.
mobile strategies with the rest of their marketing efforts.
With mobile emerging as an innovative and effective opportunity to engage with consumers, keep these things
in mind:
• While mobile will become a bigger part of your marketing mix, it will still be only a small percentage of your
overall marketing spend.
• Mobile marketing should be a part of your larger marketing strategy, not separate from the other things that
you are doing.
• Define your mobile presence and know what you want to achieve before you plan and implement your
mobile marketing strategy.
• To measure mobile’s effectiveness, you must have the analytical tools to help you refine your programs and
show their impact on your business.
Emerging trends in analytics: NBC Universal
Analytics is an important part of any marketing program, whether mobile, online, or more traditional. But for a
company like NBC Universal (NBCU), which can be accessed via TV screen, computer screen, and mobile
screen, it’s important that content is available and accessible across all possible customer touchpoints, and that
traffic patterns be quantified for its clients.
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11. NBCU has more than 20 million mobile viewers, some watching over seven hours per month via their mobile
devices. These viewers are influential, young, and affluent, and they often respond to the ads they see, so
clients that buy online ad time are able to reach these potential customers through a number of venues.
Mobile video is popular on the move and at home, particularly among younger viewers. They might not want
to watch something on a larger screen with their families, so they take their devices into their rooms and watch
videos there. Also, like more traditional channels, it has a “prime time” from 7 p.m. to 12 a.m.
At the moment, NBCU offers only short-form video on its mobile sites, but its presence there has grown substantially.
Its properties have garnered 800 million page views so far this year, a 48% increase over 2009. Mobile videos that
were once available on only one brand in 2009 are now available on nine, including all of NBC’s cable properties and
websites like iVillage. As a result, the number of clips has grown 59% since the second quarter of 2009.
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12. Most people view these videos at home, due in part to the content itself and to the times of day they’re being
watched. Mobile videos outperform online videos, with 3–5 times greater awareness, favorability, and
purchase intent.
This media spread first became evident during the Winter Olympics, when video was made available in
applications and through the website. The number of videos available via mobile was six times higher than it
was for the 2008 Summer Olympics.
NBCU launched its first mobile application in 2008, and now it offers more than 70 fully trackable iPhone
applications. NBC iPhone apps have been downloaded over two million times since last year’s launch, and the
CNBC real-time iPhone app has generated more than 700,000 downloads and tens of millions of opens since
launch. Moreover, the company is currently developing applications for the Android that cover financial news,
local media, entertainment, and sports.
Analytics using Adobe® Omniture® technology
The Adobe Online Marketing Suite, powered by Omniture, has helped NBC Universal monitor its mobile
marketing programs, and it has played a significant role in helping to solve the mobile metrics challenges that
NBCU faced. If you just look at the number of downloads on iTunes, you see that they tend to spike at the
beginning and then tail off over time. But success doesn’t lie in the number of downloads, so it’s important that
you track the number of users actually using your app. In fact, some applications have usage rates that are
10–12 times higher than the download rates.
It’s important to look But along with higher engagements come analytical challenges. When NBCU started playing in this space, it
at the entire applica- had to deal with the fact that a lot of phones didn’t accept cookies. The company had to find a way to
tion profile, not just the
accurately identify each user and quantify the number of unique visitors. To solve that problem, NBCU first
number of downloads.
created a customized tracking tool and then transitioned to Adobe’s superior out-of-the-box, tag-based
solution, which is now employed for user tracking.
Are you satisfied with your current analytics solution? In what areas might it be falling short?
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