SlideShare une entreprise Scribd logo
1  sur  46
A CLASSIC GUIDE
 Mobile Marketer
 THE NEWS LEADER IN MOBILE MARKETING, MEDIA AND COMMERCE
                                                           TM               $395



 www.MobileMarketer.com




 Mobile
 Outlook
 2010



                          TM

Sponsored by
CONTENTS


     PAGE                                                   PAGE
     3      EDITOR’S NOTE: Mobile marketing gains stature
            by Mickey Alam Khan                             25     GAMING: Monetization
                                                                   strategy key issue for
                                                                   game developers
     4      LIFE’S GOOD: Expect 100-150                            by Chris Harnick
            percent growth in mobile budgets
            by Richard Ting, R/GA

                                                            26     INTERNATIONAL: A global snapshot of mobile
                                                                   marketing’s evolution
                                                                   by Draftfcb
     8      AD NETWORKS: Mobile ad networks can expect
            more consolidation                              37     LEGAL: Expect additional legal challenges as
            by Dan Butcher                                         mobile matures
                                                                   by Gonzalo E. Mon, Kelley Drye & Warren
     10     ADVERTISING: Agencies, brands prepare for
            mobile advertising clutter                      38     MANUFACTURING: Will all mobile phones be
            by Giselle Tsirulnik                                   smartphones in 2010?
                                                                   by Dan Butcher
     12     BANKING AND PAYMENTS: Financial
            institutions to embrace mobile services         39     MEDIA: Mobile will not save the print industry
            by Chris Harnick                                       in 2010
                                                                   by Chris Harnick

     14     CARRIER NETWORKS: Wireless
            carriers to ramp up on-deck                     40     MESSAGING: Nothing compares
            advertising                                            to ubiquity of SMS marketing
            by Dan Butcher                                         by Giselle Tsirulnik



     16     COMMERCE: Mobile commerce to evolve             41     MUSIC: Mobile will continue to drive
            consumer shopping habits                               innovation in music
            by Giselle Tsirulnik                                   by Chris Harnick

     18     CONTENT: Struggling to stand out in the         42     SEARCH: Will 2010 be the year of
            content arena                                          mobile search marketing?
            by Chris Harnick                                       by Giselle Tsirulnik

                                                            43     SOCIAL NETWORKS: Social media networks and
     19     COUPONS: Mobile coupons will                           mobile go hand-in-hand
            make the cut for consumers                             by Chris Harnick
            by Jim Buckley, Valpak
                                                            44     SOFTWARE AND TECHNOLOGY: Augmented
                                                                   reality, smartphones and bar codes
                                                                   by Dan Butcher

     22     DATABASE/CRM: Mobile database/CRM               45     TELEVISION: 2010 will be about keeping up
            initiatives to help drive sales                        with the audience
            by Dan Butcher                                         by Chris Harnick

     23     EMAIL: Email marketers to focus more on the     46     VIDEO: Mobile video gets into marketing’s
            small screen                                           big picture
            by Dan Butcher                                         by Giselle Tsirulnik




PAGE 2                                                               Mobile Marketer MOBILE OUTLOOK 2010
EDITOR’S NOTE
    Mobile marketing gains stature
    By Mickey Alam Khan
       he outlook for mobile marketing, media and commerce in 2010                      of mobile commerce. Better phones, easily navigable mobile sites
    T  is just like this edition’s cover: peachy.                                       with transaction capabilities, more confidence in mobile payment
                                                                                        security and hyperbolic press will simply boost the prospects for
    As Mobile Marketer editors and reporters Giselle Tsirulnik, Dan                     mobile shopping and buying.
    Butcher and Chris Harnick explain in their succinct analysis of
    mobile marketing, brands and agencies are now completely alert                      Retailers and marketers will discover fresh uses of SMS, mobile
    to the potential of the medium to influence branding and cus-                       sites, applications and mobile coupons to drive traffic in-store.
    tomer acquisition and retention.                                                    Opted-in SMS databases will continue to build.

    Mobile Marketer’s Mobile Outlook 2010 is designed to supply                         Overseas, mobile marketing is at various stages of development,
    brands, agencies, publishers, retailers and mobile marketing firms                  as Draftfcb’s excellent international roundup shows. That chapter
    with the necessary intelligence to make smart decisions to include                  is a must-read.
    mobile into the multichannel marketing and retailing mix.
                                                                                        … but tears as well
    It is quite clear from recent market activity – Google buying AdMob                 With all the hype and exuberance, expect some pinpricks.
    and Apple absorbing Quattro Wireless, Apple iPad and Google Nexus
    One launches, eBay’s record $500 million in mobile commerce last                    Concerns over privacy and targeting will be further heightened.
    year – that mobile is no longer considered a niche medium.                          Carriers will need more pushing to accelerate the common short
                                                                                        code provisioning process. Carrier networks will strain to bear data
    Buoyed by results of mobile campaigns initiated last year, many                     traffic that is growing almost in line with Moore’s Law.
    brands are expected to ramp up their spending from six figures to
    seven. Richard Ting, mobile chief at No. 1 interactive agency R/GA,                 Also, Apple, Amazon, Google, Microsoft, Nokia, Dell and other
    projects that mobile budgets will grow this year between 100 per-                   manufacturers and software companies will vie to promote their
    cent and 150 percent.                                                               own walled-garden mobile devices. So standards for mobile con-
                                                                                        tent and commerce will rend apart.
    On a tear …
    Of course, with growth comes upheaval and a change in status                        And let’s not forget the maze of lawsuits that these same manu-
    quo. So expect some mobile sectors such as ad networks to un-                       facturers are lobbing at each other, crying foul over copyright law.
    dergo more consolidation.                                                           Expect more legal wrangling.

    Wireless carriers will face even more pressure with the increased                   In other words, mobile is beginning to look just like a regular mar-
    consumption of mobile Web. The jury is still out whether con-                       keting medium.
    sumers will pay for mobile news content, while not hesitating to
    fork out 99 cents for a song or application.                                        We hope you enjoy this read, and are emboldened to take the next
                                                                                        step in mobile marketing.
    Phones from all sorts of manufacturers, new and old, will domi-
    nate headlines. So will new mobile devices such as the Apple iPad                   Many thanks to our editorial staff, Mobile Outlook 2010 colum-
    and others of its ilk.                                                              nists and ad sales director Jodie Solomon, as well as art director
                                                                                        Rob DiGioia, who worked on this edition and, as usual, summed
    The big story this year will be the growing consumer acceptance                     this effort best: “It’s not Outlook – it’s look out!”


                                                                                                                                     401 Broadway, Suite 1408
                                                                                                        Rob DiGioia                  New York, NY 10013
                   Mickey Alam Khan                           Dan Butcher                               Jordan Crook
                                                                                                        Director, Editorial          Tel: 212-334-6305
                   Editor in Chief                            Staff Reporter                            Editorial Assistant
                                                                                                        Development                  Fax: 212-334-6339
                   mickey@                                    dan@                                      jordan@
                                                                                                        rob@                         Email: news@mobilemarketer.com
                   mobilemarketer.com                         mobilemarketer.com                        mobilemarketer.com
                                                                                                        mobilemarketer.com           Web site: www.MobileMarketer.com

                                                                                                                                     For newsletter subscriptions:
                                                                                                                                     http://www.mobilemarketer.com/
                                                                                                                                     newsletter.php
                   Giselle Tsirulnik                          Chris Harnick                             Jodie Solomon
                   Senior Editor                              Editorial Assistant                       Director, Ad Sales           For advertising:
                   giselle@                                   chris@                                    ads@                         http://www.mobilemarketer.com/
                   mobilemarketer.com                         mobilemarketer.com                        mobilemarketer.com           cms/general/1.html
                                                                                                                                     For reprints:
                                                                                                                                     reprints@mobilemarketer.com

Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile
Marketer Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com,
Classic Guides, webinars, events and awards. ©2010 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission. February 4, 2010

    PAGE 3                                                                                             Mobile Marketer MOBILE OUTLOOK 2010
LIFE’S GOOD

Expect 100-150 percent growth in mobile budgets
By Richard Ting
      oodbye, 2009 – you were a great year for the mobile        The iPhone also gave industry cre-

G     industry. The amount of chatter, buzz and general
      awareness of the arena skyrocketed to previously
unseen levels.
                                                                 atives reason to pause and imagine
                                                                 the infinite possibilities of this bur-
                                                                 geoning medium.

As more brands began to better understand the strength, ef-      Who would have thought that one
fect and ubiquity of mobile, they also began to reserve thin     year ago I would be using a mobile
slices of marketing budgets specifically for the medium.          phone to shop for clothes through
                                                                 the Gilt Groupe application, watch
On top of that, technological advances in handsets and carrier   live baseball games through the
network speeds, along with the proliferation of application      Major League Baseball application,
stores, helped to open the doors of a once-creatively stagnant   and unlock rental cars using the
                                                                                                    Richard Ting, VP/executive
arm of advertising.                                              Zipcar application?                creative director of mobile
                                                                                                          & emerging platforms, R/GA
Let us reflect on the monumental progress the industry has        The progress is mindboggling, inspi-
made over the past 12 months, and spend a moment looking         rational and incomparable.
forward to what may come in 2010.
                                                                 Brands building digital ecosystems
My top thoughts for 2009:                                        Gone are the days when mobile was treated as just a stand-
                                                                 alone medium. Smart brands and agencies understand the im-
R.I.P. dumbphones                                                portance of creating fully integrated and complementary
In 2009, smartphone growth was unprecedented.                    experiences across various digital mediums.

Every major carrier nationwide now has a go-to smartphone        By integrating channels, brands can get more bang for their
with access to an application store, enhanced browsing fea-      buck through the re-use of media assets, which leads to easier
tures, GPS capability, an unlimited data plan and connectivity   long-term maintenance.
into existing social networks such as Twitter and Facebook.
                                                                 Marketers want consistency of brand message and experience
Even non-smartphones (also known as “dumbphones”) have           across each digital channel.
begun to deliver on these more advanced features, thus fos-
tering an even more widespread adoption of mobile Web and        Consumers now expect to be able to type in a brand’s Web
mobile application services.                                     address into their mobile browser and view a fully mobile-op-
                                                                 timized site. Brands that are not delivering on this base-level
Price points for smartphones have also significantly dropped,     experience risk alienating their mobile-savvy consumers.
making the barrier of entry into the smartphone world almost
non-existent.                                                    Mobile can outperform other mediums
                                                                 Due to increased recessionary pressures in 2009, marketers
IPhone application explosion                                     began to shift budgets from traditional advertising to more
There is not much that can be said here that the general pop-    measurable digital mediums such as mobile.
ulation does not already know. More than 3 billion downloads,
140,000-plus applications – the numbers speak for themselves.    Accountability and ROI were paramount this past year, and
                                                                 countless case studies emerged from the mobile landscape to
However, the iPhone revolutionized the mobile industry and       showcase the industry’s ability to outperform other mediums.
forced the hand of everyone – from handset manufacturers
and carriers to application developers – to be more creative     One important case study to highlight was the launch of the
and innovative in order to stay in the game.                     2010 Volkswagen GTI.

PAGE 4                                                                          Mobile Marketer MOBILE OUTLOOK 2010
As an industry first, Volkswagen decided to forego traditional      The return of marketing in mobile marketing
advertising, relying solely on an iPhone application to promote    For the last few years, the mobile industry has mostly relied on
and launch the new model. To date, the application has seen        standalone, one-off mobile campaigns based on ill-funded re-
more than 2.1 million downloads.                                   quests by clients with surplus budgets at year’s end.

Whether or not this is a trend for the industry remains to be      As mobile gains in strategic importance, we will begin to see
seen, but it could be the campaign that leads to more copycat      sounder, insight-driven mobile marketing campaigns that tie
executions in the near future.                                     back into the larger strategic and creative brand experience.

Google buys AdMob, Apple nabs Quattro Wireless                     The discourse in the mobile marketing industry will shift from
The effect of Google’s purchase of mobile ad network AdMob         being overly focused on carriers and technology vendors to
and Apple’s buy of Quattro Wireless remains to be determined.      more focused on creative and marketing strategy.
But at $750 million and $275 million respectively, it is hard to
                                   ignore the importance of        With that said, I am not discounting the importance of under-
                                   Google’s third-largest ac-      standing carrier restrictions, standards and the various assort-
                                   quisition and Apple’s first      ments of technology platforms out there.
                                   mobile ad buy.
                                                                   But the No. 1 question we all need to ask ourselves in 2010 is,
                                    Mobile display advertising     “What is the best experience that we can build for consumers
                                    is growing, and while it       that creates a deeper brand engagement for that consumer?”
                                    still faces challenges cen-
                                    tered on effectiveness, this   It is a question that has been ignored for too long by mobile
                                    acquisition serves as vali-    marketing practitioners.
                                    dation to the industry-at-
                                    large that there is a future   Larger budgets for mobile
                                    for paid display advertising   In terms of growth, 2009 was unprecedented for the industry,
                                    in mobile – an idea that       but it was just the beginning. In 2010, I predict close to 100
                                    has      caused    tremen-     percent to 150 percent growth in mobile budgets.
                                    dous excitement in the
                                    mobile realm.                  Brands will begin to increase their mobile marketing spend to
                                                                   fund better planning, strategy, creative work and analytics –
                                  Google sees the future of        allowing for more quality, integrated work to take place in
                                  mobile advertising taking        the medium.
off. However, in my opinion, brands in the mobile space must
look beyond paid media and embrace owned and earned                By the end of 2010, expect to see a doubling of mobile staff
media, as well.                                                    size, budgets and the number of projects that agencies
                                                                   will produce.
Overall, 2009 was a great year, but we have barely scratched
the surface of what is possible in mobile.                         Create fluid solutions
                                                                   Massive fragmentation still exists across the industry. There
Top predictions for 2010                                           are still many different platforms, devices, carriers and varied
While mobile has been slow to take hold for several years now,     regional mobile adoption rates.
2009 saw the perfect convergence of factors that encouraged
the industry to feverishly embrace this next great medium.         Providing multiple entry points into a mobile campaign will
Expect to an even greater explosion of growth in 2010. Here        allow brands to access larger audiences. Brands must provide
are my top predictions for what to expect:                         the right solutions for the appropriate audience.

PAGE 5                                                                            Mobile Marketer MOBILE OUTLOOK 2010
IPhone applications work for some audiences, but SMS and            payments experienced a 650 percent increase from that of the
mobile Web need to be leveraged for those without iPhones or        previous year.
other smartphones.
                                                                    Owned and earned media emerge for mobile
Understand your audience and design and build accordingly.          Despite the Google/AdMob and Apple/Quattro Wireless deals,
There is rarely a one-size-fits-all solution available for mobile.   paid media is not the only game in town for mobile. In 2010,
                                                                    expect more brands to embrace owned and earned media.
Mobile and commerce converge and grow
Expect retailers to continue to leverage mobile to convert          In the same way that brands have owned destinations for the
shoppers into buyers.                                               Web, I predict that the same will be true for mobile, as more
                                                                    brands build out their mobile site platforms.
The ability to influence and aid a purchase decision at that
crucial point of sale will drive growth in this area.               In addition, expect more social brand experiences in mobile
                                                                    to drive mobile-initiated earned media for a brand.
The statistical evidence so far is staggering. According to a
recent Deloitte survey, 55 percent of users said that they will     Rise of non-iPhone applications
use their mobile device to find store locations and 45 percent       We are starting to see a bit of competition from Android and
of users will use their devices to research prices.                 Research In Motion as both platforms closed out 2009 on a
                                                                    strong note.
Recent case studies and user studies point to even more suc-
cess in this area in 2010.                                          Motorola is on track to sell the one millionth Android-pow-
                                                                    ered Droid, which has surprised many by quickly developing
In 2009, eBay CEO John Donahoe said that he expected eBay           such a large following in a matter of months.
to generate more than $500 million in mobile-
based commerce.                                                     The iPhone may still be king of the hill, but as more brands de-
                                                                    velop strategies to connect with wider audiences, not devel-
On Black Friday of 2009, eBay’s PayPal announced that mobile        oping applications for the Android and BlackBerry platforms


PAGE 6                                                                             Mobile Marketer MOBILE OUTLOOK 2010
Monday
                                                                      through
                                                                       Friday.

                                                                      Click HERE for your free
                                                                         subscription to the
                                                                       Mobile Marketer Daily
                                                                            e-newsletter.

                                                                             And HERE
                                                                    for Mobile Commerce Daily.
will not be an option by the end of 2010.

For every ad agency out there, now is the time to invest.

Grow your existing creative teams so that they are diverse                                         TM
enough to create and design for mobile.                             Mobile Marketer
                                                                 THE NEWS LEADER IN MOBILE MARKETING,
Start converting your Web-based programmers so that they                 MEDIA AND COMMERCE
can also handle mobile programming duties. The demand is
there and the growing pains needed to handle this demand
will pay huge dividends in 2010 and beyond.

Market researcher Berg Insight predicts that mobile will ac-
                                                                           Mobile
count for 11.7 percent of the total digital ad spend by 2014.            Commerce
From where I sit, I think those numbers are conservative, and
I am sure others in the mobile industry will agree. I                      Daily
                                                                 THE NEWS LEADER IN MOBILE COMMERCE
Richard Ting is vice president and executive creative director               AND RETAIL
for mobile and emerging platforms at R/GA, an Interpublic
Group-owned interactive agency in New York. Reach him at
richard.ting@rga.com.



PAGE 7                                                                 Mobile Marketer MOBILE OUTLOOK 2010
AD NETWORKS
Mobile ad networks can expect more consolidation
By Dan Butcher
   n 2010, the mobile ad networks space will continue to feel      Mr. Johar said.

I  the after-effects of Google’s acquisition of AdMob and
   Apple’s purchase of Quattro Wireless.                           Besides AdMob, Quattro Wireless, Jumptap and Greystripe,
                                                                   other major players in the mobile ad networks space include
Expect more consolidation in the space. Moves such as the          Millennial Media, Microsoft’s MSN Ad Network, Mojiva, Nokia
Google-AdMob and Apple-Quattro deals could encourage               Interactive Advertising, AOL’s Advertising.com and InMobi.
more online players to join the mobile advertising space.
                                                                   Brands rely on networks to attract eyeballs and publishers rely
“Both deals highlight the need for any strategic player in dig-    on them to fill their inventory.
ital media to have a mobile advertising solution in place,” said
Michael Chang, CEO of Greystripe, San Francisco.                   The world’s biggest brands are working with mobile ad net-
                                                                   works for campaigns. For example, Adidas, Nike, Coca-Cola
“We expect big media and carriers who have been on the side-       Co., PepsiCo, Jaguar, Procter & Gamble Co.’s CoverGirl and
lines for mobile advertising to increase their in-                                Comedy Central all tapped mobile ad networks
terest in the space along with the digital media                                  in 2009 for their ad campaigns.
companies like online ad networks and portals,”
he said.                                                                             “The mobile space is evolving quickly as new
                                                                                     competitors enter the space and new devices
Deals such as these make big brands aware                                            and operating systems gain traction,” said
that mobile advertising dollars are no                                               Nicole Leverich, director of corporate commu-
small potatoes.                                                                      nications at AdMob, San Mateo, CA. “This pres-
                                                                                     ents our industry with great opportunities, and
“As [Google chairman/CEO] Eric Schmitt has                                           2010 will certainly be an exciting year
said in the past, mobile advertising will net big-                                   in mobile.”
ger revenues than online,” Mr. Chang said.
“Every company needs to make a bold play on                                          Ads add up
mobile or risk being left behind.”                                                   With new devices hitting the market and con-
                                                                                     sumer adoption of smartphones rapidly grow-
Networks in play                                                                     ing, ad networks are going to see more
While there are parallels between mobile and                                         interest from marketers in the mobile
online, mobile is a medium unto itself, and the                                      advertising space.
ad networks can help provide brands with ed-
ucation, as well as reach.                                         While the various mobile ad networks may disagree about
                                                                   who the top player is in the space, they all agree on one thing:
Google’s acquisition of AdMob was significant because a lead-       the outlook for mobile advertising in 2010 is bullish.
ing Internet company decided it did not have the mobile ex-
pertise it needed in-house.                                        “We foresee continued growth in mobile advertising in 2010,
                                                                   which will benefit all members of the ecosystem—advertisers,
Paran Johar, chief marketing officer of Jumptap, New York,         agencies, publishers, app developers and networks,” said Lynn
forecasts that Microsoft and Yahoo will also acquire mobile        Tornabene, New York-based chief marketing officer of
ad networks.                                                       Quattro Wireless.

“The carrier play can help them become a more media-centric        “No matter whom you are trying to reach—gamers, moms,
organization, the Apple play can help them monetize unpaid         business execs, in-market auto buyers—you can target them
free apps, while Microsoft and Yahoo recognize that to             effectively on the mobile Web and in applications, at scale,”
compete with Google they need experts in the field,”                she said. I


PAGE 8                                                                               Mobile Marketer MOBILE OUTLOOK 2010
GET THE BEST
MARKETING &
ADVERTISING
ROI WITH SMS
Increase your ROI
by adding Mobile to your
campaigns using SMS
• Secure your Mobile Marketing address
• Engage with over 270 million mobile
  consumers
• Deliver timely & informative content
• Build targeted opt-in consumer
  databases
ADVERTISING
Agencies, brands prepare for mobile advertising clutter
By Giselle Tsirulnik

       dvances in targeting, in-                                                               budgets across        nearly    all

A      creased browser and device
       capabilities, and richer met-
rics are what will drive the mobile
                                                                                               category ranges.

                                                                                               In 2009 some of the largest
advertising industry forward                                                                   brands used mobile to reach their
in 2010.                                                                                       target audience. Advertisers and
                                                                                               publishers created mobile destina-
In 2009 some of the largest brands                                                             tions, as mobile delivers perform-
in entertainment, consumer pack-                                                               ance on brand impact, interaction
aged goods, retail and telecommu-                                                              and conversion.
nications integrated mobile
advertising into their media plans.                                                            A vast developer community grew,
Expect to see even more brands                                                                 which propelled smartphone man-
jumping onto the mobile advertis-                                                              ufacturers to quickly react to con-
ing bandwagon in 2010.                                                                         sumer demand, causing disruption
                                                                                               in the device industry.
“We are bullish on mobile adver-
tising, as we’ve been year over                                                                 And, when Google and Apple
year since our inception in 2006,” said Mack McKelvey, vice         chose to buy versus build a mobile ad network, it confirmed
president of marketing at Millennial Media, Baltimore. “There       that mobile is a distinct market from the wired Web, with an
won’t be a year of mobile because mobile is here.”                  enormous opportunity for advertisers.

In 2010 brands will integrate mobile into their media spend,        New entrants
as it was an effective and efficient medium to reach and en-        Some expectations for 2010:
gage consumers in 2009.
                                                                    • Rich media ad units will proliferate
For example, automaker Honda's mobile banner advertising            • Augmented reality will become popular
campaign to promote the launch of the Insight hybrid model          • Number of campaigns will increase
achieved a click-through rate of 27 percent. Honda was able         • More multichannel efforts will include mobile advertising
to build a mobile database of interested consumers and drive        • Mobile Web will become more cluttered with ads
them to its mobile site via the mobile banners.                     • Metrics and measurement will become better
                                                                    • Consistency and screen issues will continue to be challenges
Bigger budgets
A Millennial Media study found that agencies and brands are         “Entering into 2010, we already see huge demand from new
confident in the mobile campaigns they execute. When asked           entrants into mobile, as well as those advertisers who have
whether their mobile campaigns met or exceeded expecta-             run successful campaigns this year,” Ms. McKelvey said. “Ad-
tions, 87 percent of agencies answered yes.                         vertisers will benefit from network buys that help them access
                                                                    more than 70 million unique users, with either precise or
Additionally, 97.8 percent of agencies surveyed said that mo-       broad targeting solutions.
bile advertising is a valuable or indispensible part of the media
plan, and all the brands felt the same.                             “There are numerous roles that mobile can play in advertisers’
                                                                    overall media planning, several that no other medium can
When probed for specifics, 25 percent of brands anticipate           match,” she said. “In 2010, mobile will take its place as a
spending less than $5 million on mobile advertising in 2010,        prominent and permanent component of the digital
up from 12.5 percent in 2009. Agencies expected increased           media spend.” I


PAGE 10                                                                           Mobile Marketer MOBILE OUTLOOK 2010
Engage with your target audience
wherever they go




                                     Innovative connections that
                                                  deliver results
Better advertising through science. Only Microsoft® Advertising connects brands to nearly half of the US wireless
web audience with integrated experiences across mobile, PC and gaming. We’re driving extraordinary results for our
advertisers by combining audience insights harnessed across multiple screens with the powerful reach of mobile MSN®,
Bing™ and our unparalleled relationship with Verizon Wireless.


Learn more.
msftads.mobi | mobads@microsoft.com
                                                                                               You dream it. We deliver it.
BANKING AND PAYMENTS
Financial institutions to embrace mobile services
By Chris Harnick
   n 2010, consumers and financial institutions will become            your mobile phone in the United States via Near Field Com-

I  even more comfortable with mobile banking and
   payments technology.
                                                                      munication, as chip-prices, handset turnover and point-of-
                                                                      sale build-out will continue to push the vision of buying a
                                                                      soda with your mobile phone to 2011 or 2012,” said Ron Hir-
                          Consumers continue to adopt the             son, cofounder and senior vice president of products and mar-
                          services, but security is still an issue.   keting at Boku, San Francisco.
                          Mobile banking and payments will
                          continue to give global access to un-       Small businesses and merchants will continue to benefit from
                          derbanked and unbanked consumers.           services such as Verifone’s iPhone mobile credit card reader.

                        “We believe the mobile banking and            Last year saw smaller financial institutions such as Texas’ Frost
                        payments industry is a massive mar-           Bank and CU*Answers, a credit union organization, roll out
David Schwartz, head of
                        ket opportunity that has the poten-           mobile banking services such as alerts.
 corporate and product
                        tial to continue to take off in 2010,”
   marketing, Obopay
                        said David Schwartz, head of corpo-           Macrogrowth to micropayments
rate and product marketing at Obopay, Redwood City, CA.               It is obvious this sector is poised for growth, but will the car-
                                                                      riers continue to miss out?
“Mobile technology is already impacting the banking industry,
and in the area of payments we believe it can have transfor-          The carrier networks do not want to become banks, but con-
mational consequences for people of all economic back-                sumers are using micropayment services for virtual goods and
grounds,” he said. “Adding mobile payments to the mobile              social networks. The huge response to SMS appeals for Haiti
banking offerings in the market will do for mobile banking            relief efforts are proof.
what bill pay did for online banking.
                                                                      Obopay’s Mr. Schwartz said in 2010 one of the biggest chal-
“Mobile banking will be a useful tool that people frequently          lenges companies in this market face will be the adoption and
take advantage of in their daily lives, and it provides banks         increased use of micropayment services and keeping up
with a sticky service to increase their customer satisfaction         with demand.
and reduce their churn.
                                                                      Mike Dulong, cofounder and
Banking on mobile                                                     senior vice president of busi-
The global mobile banking market will hit $202 billion by             ness development at Billing
2012, per Edgar and Dunn. More consumers will use mobile              Revolution, Seattle, said 2010
banking than online services by 2015, according to Mercatus.          will be a period of explosive
                                                                      growth for the mobile
Mercatus also found that banks can improve customer acquisi-          commerce space.
tion by 60 percent by including mobile in their suite of services.
                                                                      “Consumers will adopt mobile
Given the growth the mobile banking and payments sector               credit-card-based commerce
has seen in 2009, more developments will be introduced as             much more quickly than mar-
the technology continues to improve.                                  ket researchers have fore-
                                                                      casted — this is going to
Near Field Communication use has slowly been growing na-              move very quickly,” Mr. Du-
tionwide, but do not expect consumers to fully embrace the            long said. “Retailers will
technology this year.                                                 scramble to create secure,
                                                                      commerce-enabled
“This will not be the year for physical-world purchases using         mobile stores.” I

PAGE 12                                                                              Mobile Marketer MOBILE OUTLOOK 2010
Download today!
  FREE White paper
Increase your campaign ROI
    with mobile analytics
     www.bango.com/wp
CARRIER NETWORKS
Wireless carriers to ramp up on-deck advertising
By Dan Butcher

    he biggest opportunity for wireless carriers in 2010 will      “It should be part of every marketer’s integrated advertising

T   be to generate revenue by ramping up on-deck advertis-
    ing. If they do so, mobile advertising will experience
an explosion.
                                                                   mix,” he said.

                                                                   One trend to look out for this year is the rise of emerging mar-
                                                                   kets. The sheer number of subscribers cannot be ignored.
Carriers face many challenges, not the least of which is deal-
ing with the double-edged sword of surging mobile Web              “In 2010, we expect that in emerging markets, mobile operators,
usage, which drives data revenues but at times pushes their        who are under top-line pressure due to declining ARPU and in-
networks beyond capacity, affecting the user experience neg-       creasing customer churn, are going to aggressively pursue sub-
atively. Carriers expect the upgrade to 4G networks—WiMax          scriber data-driven marketing strategies to promote the right
and LTE—to eventually solve those issues.                          products to the right customer segments at the right time,” said
                                                                   Vinod Vasudevan, CEO of Flytxt, Trivandrum, Kerala, India.
“The increased acceptance and usage of smartphones, includ-
ing the iPhone, combined with advertisers’ increased sophis-       “They realize that acquiring more customers no longer guar-
tication in using these devices to reach their customers, is       antees higher revenue, as evident from third-quarter revenue
something we’re very excited about and see as a growing            reporting of Indian operators,” he said. “Focus will be on gen-
trend,” said Greg McCastle, senior vice president of advanced      erating incremental revenue from existing subscribers.”
ad solutions at AT&T, Dallas.
                                                                   ROI proof
“Mobile is becoming a line-item in marketing budgets—mobile        In the end, it all comes down to measuring results and quan-
advertising is now on the table and an integral part of the        tifying return on investment.
mix,” he said. “The outlook for 2010 is exciting.”
                                                                   “Be it in emerging or Western markets, the value of mobile
Carriers want to avoid becoming a dumb pipe at all costs, and      marketing will be fully appreciated only if operators have an
they must diversify their revenue streams to compete.              accurate method to track responses across channels and
                                                                   measure ROI,” Mr. Vasudevan said.
Additionally, carriers have an unbelievable amount of sub-
scriber data to offer brands in terms of targeting options.        “Once operators are able to demonstrate the intrinsic value
                                                                   of mobile as a marketing channel, mobile advertising as in
Provisioning bugbear                                               third-party brands using mobile as a channel for their adver-
There are issues that need to be resolved, for instance, short-    tising will also take off in a big way,” he said. I
ening the approval process for SMS short code provisioning—
the long lag times have been a common gripe of marketers
for a while.                                                                                                 Vinod Vasudevan,
                                                                                                             CEO of Flytxt
Carriers have started to cast a wider net out of necessity, tak-
ing on the role of publisher and content provider, in addition
to advertiser and network operator.

While there are no shortage of challenges and issues that need
to be faced, maybe the carriers are actually starting to get it.

“Marketers need to engage with consumers the way they ob-
tain and use information—that’s on the go,” Mr. McCastle said.
“Mobile advertising is here.



PAGE 14                                                                           Mobile Marketer MOBILE OUTLOOK 2010
The most advanced
ad management platform
  available for mobile.

  For Publishers
  A robust mobile ad serving, yield management, and repor ng solu on for owners of mobile
  content. Whether you sell your own adver sing, manage third party sellers - or both - MAST
  for Publishers can help you generate maximum yield.

  For Adver sers
  Manage your clients' mobile media campaigns across all mobile content and every network.
  From rich media and video to simple mobile banners, mOcean Mobile provides an intui ve
  real- me dashboard that ensures ease-of-use and ROI.

  For Networks
  U lize the mOcean Mobile pla orm to power your own mobile ad network. Ensure efficiency
  for your adver sers and maximized yield for your publishers, all under your own brand.

  For Apps
  By ad-enabling your mobile apps, you can generate new streams of revenue. Use our flexible
  APIs to deliver ads from our robust server network across any applica on, regardless
  of pla orm.




                                     Ready to ride the mobile marketing wave?
                                      For business and partnership inquiries, or
                                to schedule a demonstration, please click here.




                                              mOceanMobile.com
COMMERCE
Mobile commerce to evolve consumer shopping habits
By Giselle Tsirulnik

      xpect leading retailers to enter the mobile commerce        Consumers are already used to making micropayments for

E     space in 2010 through click-to-buy advertising, SMS
      drivers and transaction- and shopping-friendly mobile
sites and applications.
                                                                  ringtones and donations in times of crises, so the resistance to
                                                                  transacting on the phone will wear away with more use and
                                                                  confidence of transaction security.

In 2009 big brands such as Polo Ralph Lauren launched appli-      “2009 was definitely the year of mobile but what we find is
cations and sites, turning the mobile medium into an addi-        that a lot of retailers felt as if they needed to take off from
tional sales channel. In 2010, smarter phones with more           mobile in 2009 because of the economy,” said Nikki Baird,
user-friendly Web browsing will move the needle for               Denver-based managing partner at RSR Research.
mobile commerce.
                                                                  “But consumer expectations are going to drive most of these
                             “From our perspective, the suc-      companies into the mobile commerce space in 2010,” she said.
                             cess of mobile commerce will be      “Expect to see a lot of the latecomers moving into the mobile
                             dependent on the evolution of        commerce space in the first half of 2010.”
                             smartphone technology, the
                             speed of the mobile Web, a richer    In 2009, Polo Ralph Lauren, Tommy Hilfiger, Gilt Groupe and
                             Web-like user experience, the        American Eagle Outfitters entered mobile commerce. Target,
                             convenience of one-click, stored-    Amazon, eBay and Best Buy were among the leaders who ac-
                             account checkout and a brand’s       celerated their mobile efforts to provide a seamless
                             willingness to invest in an exclu-   shopping experience.
                             sive, branded content experience,
                             merchandising strategy and offer     Bridging PC and store
                             strategy,” said David Lauren, sen-   In 2010, retailers and brands will employ mobile coupons, bar
   David Lauren, SVP of      ior vice president of advertising,   codes, product comparisons and user reviews to help con-
advertising, marketing and   marketing and corporate com-         sumers make purchase decisions.
corporate communications,
                             munications at Polo Ralph Lau-
    Polo Ralph Lauren
                             ren, New York.                       Brands and retailers will realize that mobile bar codes are an
                                                                  easy and measurable way to mobilize any traditional media
“We expect to see a big trend toward more robust mobile CRM       from print to packaging. The key to driving results is to give
programs – a brand’s ability to leverage consumer data to         the consumer something of value and communicate clearly
drive relevant messages, products and offers to your mobile       with a strong call-to-action.
device,” he said.
                                                                  However, the limitations of screen size, device capability and
Impulse purchase channel                                          the user experience on mobile sites and applications will de-
Without doubt, mobile commerce is going to change the way         termine the growth trajectory of mobile commerce. Consumer
that consumers shop in 2010 and beyond.                           expectations of digital media are high thanks to ecommerce.

Impulse purchases and in-store price comparisons with mobile      “The biggest challenge we see for mobile commerce is its in-
commerce-enabled sites and applications will determine the        ability to deliver a simple, Web-like user experience and the
fate of multichannel retail this decade.                          technology behind most U.S. phones,” Mr. Lauren said.

Mirroring ecommerce’s growth in the last decade, apparel and      “The biggest opportunity for mobile in the near-term will ac-
accessories, entertainment, books, music and travel will be       tually be its ability to leverage customer data to successfully
among the key sectors to migrate to mobile. Items that require    bridge the digital commerce and physical retail experiences,
steady replenishments are also good candidates for                like its ability to influence multichannel commerce versus just
mobile commerce.                                                  mobile commerce,” he said. I


PAGE 16                                                                          Mobile Marketer MOBILE OUTLOOK 2010
Simple
  Mobile
Advertising




mojiva.com   info@mojiva.com   646-862-6201
CONTENT
Struggling to stand out in the mobile content arena
By Chris Harnick

      s more applications stream into the various smartphone       finally start making smartphones that are going to be really

A     marketplaces, the challenge for mobile discovery
      grows exponentially.
                                                                   revolutionary in every respect and, as a result, we’re likely to
                                                                   see a much more competitive and level playing field,” said
                                                                   Patrick Mork, vice president of marketing at GetJar,
                             In 2010 companies and marketers       San Mateo, CA.
                             will continue to struggle to find
                             their footing, making search ca-      “The battle of the app stores will culminate in a dramatic
                             pabilities all the more important.    change to the market over the next 12-18 months,” he said.
                             Now that major brands are get-
                             ting into the game, discovery of      Many application stores may fail because they will not have
                             mobile content will be the            solved the main issues of billing, discovery by consumers and
                             trickiest issue.                      providing adequate return on investment for developers.

                             “I think 2010 is going to be a        Conquering the trinity
                             great year for mobile content,        In 2010, mobile marketers will need to attack the challenges
                             particularly in the United States,”   of reach, privacy and retention.
     Scott Dunlap, CEO,      said Scott Dunlap, CEO of Near-
        NearbyNow            byNow, Mountain View, CA.             The dam will not break on mobile advertising until there are
                             “Smartphones have reached crit-       multiple vendors with a reach of more than 10 million users,
ical mass, the tablet is changing the game and we’re seeing        or the advertising industry begins to focus on personalized
media and gaming companies responding with more mobile-            messages optimized for conversion and engagement rather
optimized content.”                                                than reach. Mobile privacy is also going to be tested
                                                                   and refined.
NearbyNow has developed numerous applications for various
media companies including GQ and Seventeen.                        Most applications are abandoned within 60 days and mobile
                                                                   Web sites have a hard
Because of the proliferation of applications and other mobile      time retaining and
content such as ringtones, content developers are finding it        lengthening visits.
easier to get paid for their work thanks to ad-supported mod-
els and paid content.                                              In 2010, there will be
                                                                   a struggle for eyeballs
Sideliners will get nowhere                                        as content and de-
Media companies know the rules have changed. Standing on           vices hit the market.
the sidelines is no longer an option with Google and Apple
aggressively investing in research and development.                “My first advice to
                                                                   content developers
“The level of innovation in mobile devices will be staggering      would be start with
in 2010 and the rate of adoption will be faster than ever,”        the iPhone and iPod
Mr. Dunlap said.                                                   touch,” Mr. Dunlap
                                                                   said. “It’s a great
This will be the year of the handset. Manufacturers will focus     platform, the user
on features, design and other aspects based on the success of      base is well aware of
the iPhone. Devices will need more memory for more capacity        how to download and
because of the expanding content market.                           use apps, and it’s
                                                                   showing no signs
“2010 is when we should expect handset manufacturers to            of stopping.” I


PAGE 18                                                                           Mobile Marketer MOBILE OUTLOOK 2010
COUPONS
Mobile coupons will make the cut for consumers
By Jim Buckley

     he current economic climate has changed the spending              use, SMS texting, smartphone

T    behavior of American consumers. As people adapt to re-
     cessionary times by cutting spending and tightening
belts, a new type of consumerism has been born.
                                                                       adoption and mobile applications
                                                                       leveraging the promotional vehicle
                                                                       as part of a content offering.

Top economists believe this shift to conservative spending is          SMS text and MMS rich
not a passing trend but will actually become the “new nor-             media couponing
mal,” much like the change that occurred in consumer spend-            Harris Interactive conducted a
ing after the Great Depression of the 1930s.                           survey and discovered that 42
                                                                       percent of adults ages 18-34 and
The ranks of Americans who state they have permanently re-             33 percent of 35-to-44-year-
duced spending are continuing to rise, pointing toward a more          olds are interested in getting
frugal consumer environment once the current recession ends.           opt-in mobile alerts from their         Jim Buckley, new media
                                                                       favorite places.                       business owner at Valpak/
A June 2009 Business Wire survey showed that 20 percent of                                                        Cox Target Media
Americans say they have cut back for good on spending. To              The study also revealed that about 90 percent of mobile users
capitalize on the demand for savings, businesses are increas-          have made impulse purchases while shopping due to a sale,
ingly using coupons as a promotional tool to maintain or in-           with 22 percent of these shoppers doing so on a weekly basis.
crease market share, attract consumers to their locations and
introduce new products and services in this new economy.               The findings of the study pose implications for advertisers as
                                                                       these businesses can build their database of consumer con-
In addition to their attractiveness to consumers, coupon pro-          tacts in the form of opt-in mobile numbers and additional in-
motions are also winning favor with marketers who are being            formation captured from registrations which can then be used
held accountable to track and measure program effectiveness            to advertise new products, specials and promotions.
and demonstrate the return on investment for programs.
                                                                       To be successful in this space, a recent Valpak study of Echo
The trackability of coupons helps marketers use their budget           Boomers, also known as Generation Y or millennials, suggests
dollars efficiently and with clear, tangible results at a time         that adults ages 18-27 are extremely interested in mobile
when ad spend is more closely scrutinized.                             marketing – but with some reservations.

Beyond traditional print couponing, mobile couponing has               When asked about mobile marketing in a Valpak-sponsored
been growing along with other forms of digital coupons in-             survey managed by Cox Enterprises Inc. and Communispace
cluding emailed coupons, online coupon Web sites and even              through its shared Project Echo program, respondents reported
discount offers marketing by social media channels.                    some fear of disclosing their personal mobile number, handing
                                                                       strangers their mobile phone and the potential expense to
According to Experian Simmons 2009, since last summer, the             them if they are too heavily messaged. However, more than
growth in digital coupons has increased markedly: some 44              half said they would be interested in receiving offers from
million adults printed coupons from the Internet, which is a 21        businesses that they frequented or were of interest to them.
percent increase from the same period last year.
                                                                       Study participants stated that dining and entertainment
In 2010, Yankee Group expects the number of mobile coupons             coupons were among their most preferred categories. Overall,
redeemed in North America to rise tenfold, with triple-digit           the quality of the text offer and its relevance to their lifestyle
increases to follow in 2011 and 2012.                                  were key to their satisfaction and willingness to participate in
                                                                       mobile marketing.
Mobile couponing is on pace to continue to increase in distribution,
use and redemption. This is largely due to the increase in Internet    The challenges associated with both SMS and MMS


PAGE 19                                                                                                         MOBILE OUTLOOK 2010
(multimedia messaging service) couponing facing advertisers          By tracking coupon use and redemption, as well as leveraging
is how to reach consumers with their messages and offers.            customer-provided preferences collected at registration, ad-
                                                                     vertisers can tailor their messaging to provide customers the
Legal restrictions surrounding messaging can hinder busi-            right offer, at the right time, at the right location.
nesses, so a pull-strategy with double opt-in is the best prac-
tice to avoid pushing unwanted messages to consumers.                By measuring redemptions, businesses can monitor and track
                                                                     time-of-day and day-of-week to see peak use of the offer and
Used in conjunction with a print ad campaign, getting the            correlate that information to the success of an
SMS pull campaign out to consumers has the added critical            advertising campaign.
advantage of an integrated media effort, which helps increase
ROI and response result.                                             Redemptions can also reveal promotional success by looking
                                                                     at upsells and cross-sells as a result of the coupon or offer.
Mobile campaign challenges and opportunities
The first challenge to any mobile messaging campaign is ob-           SMS text message coupons will continue to grow in their
taining mobile opt-ins. This can be achieved by leveraging a         usage. But as more consumers adopt smartphones, the trend
best-practice approach with pull campaigns and using common          toward providing rich media coupons – electronic versions of
marketing channels such as direct mail, print ads, point-of-sale     print coupons, bar coding or video ads with offers – such as
                               display and email messages.           those provided with mobile applications will also continue
                                                                     to grow.
                                Providing a targeted, com-
                                pelling and relevant offer to a      According to Scarborough Research, 8.6 million, or 8 percent,
                                targeted audience which              of U.S. households currently acquire coupons via text mes-
                                clearly understands what mo-         sages or email.
                                bile messaging they will re-
                                ceive and how often they will        Whether businesses use SMS texts, MMS images or videos to
                                receive it is the key to building    provide coupons that incentivize consumers to make pur-
                                a qualified and receptive opt-        chases at their locations, mobile couponing is here to stay.
                                in mobile database.                  But perhaps the most important aspect is that businesses can
                                                                     learn more about their customers to develop loyalty programs
                                Budget and frequency are po-         based on customer-provided information and track response
                                tential challenges when it           and redemptions associated with mobile coupons.
                                comes to planning. In short, it is
                                best to expect the unexpected.       Mobile application growth
                                                                     Market research firm IDC projects the number of applications
                               It is critical to consider the        for the iPhone will nearly triple to an estimated 300,000 by
                               number of customers and mes-          the end of 2010 and that there will be 50,000 to 75,000
saging frequency when there is a limited budget for                  Google Android applications, up from 17,000 in 2009.
SMS/MMS messaging. And if businesses are paying for each
response with a double opt-in, they must be sure to budget for       Mobile coupon applications should see similar growth rates
a better-than-expected response.                                     as retailers and other industries look to reach consumers
                                                                     closer to the point of sale.
These issues should be planned for in advance by the media
firm, agency or messaging service provider, which should pro-         Location-based services (LBS) use GPS to serve consumers
vide an adequate estimate of response and thus help with po-         coupons, offers and discounts within a given location and are
tential staffing, product and service delivery and other             a logical fit for businesses looking to increase their advertising
planning issues.                                                     reach and target consumers with intent-to-purchase behavior.


PAGE 20                                                                             Mobile Marketer MOBILE OUTLOOK 2010
Mobile coupon applications that use          U.S. smartphone adoption increased 63 percent to more than
                       geotargeting are an effective way for        33 million users and touch-screen mobile phone adoption
                       businesses of all sizes to promote their     grew 159 percent to 23.8 million users in August 2009 from
                       products and services to consumers           the year-ago period.
                       looking to save at their favorite stores.
                                                                    Media buyers are using mobile advertising more, as it is inter-
                       Mobile applications featuring coupon         active and allows them to do more with less.
                       content have the added advantage of
                       being able to track when and where of-       BIA/Kelsey predicts that mobile local search ad revenues will
                       fers are searched for, served up, viewed     grow to $130 million by 2013, and that mobile local searches
                       and redeemed.                                will increase to 35 percent of all searches by 2013.

The mobile application market is currently highly fragmented        More companies are leveraging mobile couponing as a vehicle
and is complicated by a combination of closed and open              for engaging consumers, given that they are highly desired in-
source mobile operating systems, device-dependent systems           centives that drive transactions at the point of sale.
and applications, and wireless carrier rules and control desires.
                                                                    According to a November 2009 Juniper Research study, the
Many other mobile applications will increasingly incorporate        availability and convenience of digital coupons are attracting
coupon content as a content value-add as platforms become           a newer and younger base of consumers, many of whom use
more open.                                                          Twitter, Facebook and other forms of social media.

In the future, as mobile coupon, discount and offer data feeds      These trends are expected to contribute to a projected 300
are implemented across open platforms, these data pushes            million global coupon users, who will generate close to $6 bil-
will help drive the growth in mobile applications.                  lion globally in retail redemption value by 2014.

Coupon clickers                                                     The outlook for mobile couponing is bright due to the new
According to a December 2009 Borrell Associates study, some         economy, growing consumer demand for mobile coupons, the
400 billion coupons will have been distributed nationwide in        increased availability of mobile messaging platforms and
2009, with a 2 percent average redemption totaling $40 bil-         emerging technological trends.
lion in consumer savings – $87 million of that from mobile
couponing – and resulting total purchases exceeding that            As more rich media applications such as Adobe Flash – pro-
value by a large factor.                                            jected to be supported on most smartphones by the third
                                                                    quarter of 2010 – are distributed, and the number of open
The increase in coupon use will likely outlast the economic         source operating systems such as Android increases to facili-
downturn as marketers gain a deeper understanding of how            tate mobile application development, technology and com-
coupons affect shopping behavior and as more companies              munications innovations will undoubtedly increase the
learn how to successfully employ them.                              application and use of mobile coupons.

Local businesses are embracing coupons this year, with the          Also aiding in the growing acceptance of mobile coupons is
value of their coupons jumping more than 50 percent, accord-        the role of broadband 4G/LTE wireless networks deployed to
ing to Borrell Associates.                                          support HD video, gaming and more powerful mobile applica-
                                                                    tions. Expect mobile coupons to grow at a fast clip. I
Consumers are interacting more with mobile marketing as they
learn their phone capabilities and acquire newer technology.
                                                                    Jim Buckley is new media business owner at Valpak/Cox Target
In November 2009, a comScore MobiLens study revealed that           Media, Largo, FL. Reach him at jim_buckley@valpak.com.


PAGE 21                                                                           Mobile Marketer MOBILE OUTLOOK 2010
DATABASE/CRM
Mobile database/CRM initiatives to help drive sales
By Dan Butcher
      rands large and small are using the mobile channel as       Despite fast growth in the space, there will be challenges.

B     a customer relationship management tool to build their
      opt-in database and inspire consumer loyalty, and that
trend will increase exponentially in 2010.
                                                                  Retailers with a trusted brand and pre-existing relationships
                                                                  with consumers will have an advantage over lesser-
                                                                  known brands.
When used properly, mobile enhances the database/CRM ini-
tiatives of every business sector, from consumer packaged         Businesses and consumers are still going to have trust and se-
goods, food-and-beverage and hospitality companies to big-        curity concerns about opting into mobile marketing and mo-
box retailers, sports teams and high-fashion labels.              bile payment programs.

“We expect to see mobile marketing and mobile commerce            First and foremost, marketers must follow the Mobile Mar-
continue to grow in importance and adoption as retailers          keting Association’s best practices to make sure their mes-
focus on their most loyal customers and                                            sages are not perceived as spam.
stickiness,” said Kevin Grieve, CEO of Moca-
pay, Denver. “The industry experts are pre-                                        Another challenge is to understand ROI,
dicting mobile commerce and SMS                                                    which typically means some level of inte-
marketing are going to take off in 2010, and                                       gration with the point of sale during con-
given our own indicators, we do too.”                                              sumer redemption of an offer.

Database-building and CRM are two essen-                                           “A challenge will come from how to migrate
tial aspects of marketing, and both fit nat-                                        a customer from a one-time mobile market-
urally with the mobile medium. When                                                ing campaign to an ongoing relationship,”
executed properly, database/CRM initiatives                                        Mr. Grieve said. “This can be accomplished
drive sales in a big way.                                                          by rewarding profitable consumer behavior
                                                                                   with incentives, which can easily be
Mobile CRM tactics range from asking con-                                          wrapped into their loyalty program.”
sumers to opt-in to an SMS club via a key-
word and a short code to receive promotions                                        Consumer control
and alerts, mobile coupons and virtual mo-                                        To overcome these challenges, marketers
bile loyalty cards, which are often associ-                                       need to make sure they put control into the
ated with VIP clubs or frequent-buyer programs.                   consumers’ hands — allow them to adjust the frequency of
                                                                  messages that they receive from the retailer or brand.
Loyalty plays
So what are the vital components of a multichannel data-          As a direct channel that people opt into, marketers must be
base/CRM strategy? The answer is seamless integration across      sensitive to their mobile messages so they are not wearing
each channel and consistent consumer experience.                  out their welcome to the point where a customer chooses to
                                                                  opt out.
Marketers must avoid making mobile an island or standalone
medium. Make mobile part of the overall marketing mix. It is      Marketers need to make sure the providers they work with are
also important integrate mobile with a brand’s social             focused on the end-consumer experience.
media strategy.
                                                                   “Consider what reporting will you receive, how often can you
Another tried-and-true piece of advice is to keep it simple for   touch the customer and what innovative services can you add
consumers, especially when it comes to database registration      into the mix to build and retain customers to ultimately in-
and redemption of coupons.                                        crease your sales,” Mr. Grieve said. I



PAGE 22                                                                         Mobile Marketer MOBILE OUTLOOK 2010
EMAIL
Email marketers to focus more on the small screen
By Dan Butcher
      rands and marketers will be more focussed on mobile-         Marketers need to consider whether their customers are read-

B     optimizing their email campaigns in 2010. This will ensure
      better customer experiences and higher response rates.
                                                                   ing emails on a smartphone. Additionally, the device and op-
                                                                   erating system of choice is also important to know.

                             A Radicati Group study found          Based on that, marketers need to figure out if their email cam-
                             that 139 million people around        paigns are designed to look well and perform well on the
                             the world accessed email via their    small screen.
                             handhelds in 2009 and this num-
                             ber is going to grow to more than     “By always being on, and with the customer, mobile is rein-
                             1 billion users by 2013. With mo-     venting email as the killer app,” said Deirdre Baird,
                             bile phone owners outnumbering        president/CEO of Pivotal Veracity, Phoenix. “Marketers who
                             PC owners four to one, marketers      leverage the efficiency and convenience afforded to con-
                             that do not mobile-optimize           sumers by mobile email will be able to use the channel to drive
                             emails will be left in the dust.      significant incremental Web and in-store sales.
 Deborah Hall, managing
  director, Web2Mobile      “The mobile email space is keep-       “The time to optimize email campaigns for mobile devices is
                           ing pace with the explosive             now — both in terms of design and the customer experience,”
growth of mobile Web browsing,” said Deborah Hall, manag-          she said.
ing director at Web2Mobile, Toronto.
                                                                   More marketers are expected to identify mobile users and im-
“The first companies that em-                                                              plement mobile email marketing de-
brace optimizing their content for                                                        sign and coding best practices.
mobile will not only improve the
performance of their communica-                                                             Smart email
tions, but also gain insight as to                                                          Many marketers in the space believe
what platforms users are con-                                                               that mobile has the ability to over-
suming content on their sites —                                                             come the difficulties facing PC-cen-
Research In Motion, iPhone and                                                              tric email marketing.
Android,” she said.
                                                                                            “We at Yesmail are optimistic that
Measurement is important be-                                                                mobile email adoption will only in-
cause analytics that tell mar-                                                              crease in the coming year,” said
keters what devices are visiting                                                            Manny Ju, director of product man-
these properties help to shape a                                                            agement at Yesmail, Portland, OR.
strategy     for     application                                                            “All industry studies have shown that
platform choices.                                                                           reading of email remains among the
                                                                                            top data usages of smartphones.
Email is killer app
When 80 percent of the traffic to                                                           “As the market for smartphones con-
an email newsletter comes from                                                              tinues to expand worldwide, we see
iPhone devices, it might make                                                               the importance of marketers to
sense to optimize for this plat-                                                            properly address mobile email not
form and look at building an                                                                only in terms of screen layout, but
iPhone application or iPhone-                                                               also in terms of timeliness of offer,”
friendly Web presence.                                                                      he said. I



PAGE 23                                                                          Mobile Marketer MOBILE OUTLOOK 2010
GAMING
Monetization strategy key issue for game developers
By Chris Harnick
    he mobile gaming sector, dominated by the Apple iPhone in    Playstation’s parent company Sony has gotten into the mobile

T   2009, will continue to battle its biggest problem in 2010:
    monetization.
                                                                 gaming application arena with various properties, but Nin-
                                                                 tendo is nowhere to be seen. There is no Super Mario Brothers
                                                                 application for the iPhone.
The iPhone changed the face of mobile gaming with applica-
tions from brands such as Volkswagen and video game man-         As devices gain in popularity and capabilities, could they even-
ufactures including Electronic Arts. But the question for many   tually act as the video game system controller? Not in 2010,
still remains: Do consumers prefer free, ad-supported games      but it is a possibility.
or pay-per-download?
                                                                 Stepping up to the plate
“Without a doubt 2010 will be a rocket ship for mobile gaming    Greystripe said 2010 is already starting off with a bang. It has
and we will see the continued growth of mobile gaming com-       seen first-quarter bookings grow even after the holiday sea-
panies that nail the platform and user experience,” said         son. More brands are recognizing the space, especially mobile
Michael Chang, founder/CEO of Greystripe, San Francisco.         games, and budgets are reflecting it.

“All through 2009 we saw thousands of developers jump into       Growth comes from fundamentals such as more brands allo-
mobile with incredible innovation,” he said. “Hit games like     cating online and traditional media budgets into mobile.
Tower Bloxx 3D by Digital Chocolate, Sheep Launcher by Kro-
nos and Tower Madness by Limbic were both simple and             Mr. Chang said companies
hugely addictive.                                                in the industry should be
                                                                 looking at convergence
“Gaming will be the tip of the spear for broader app genres      strategies in 2010.
and content types in mobile.”
                                                                 As mobile joins with on-
Greystripe is a mobile ad network and game developer.            line, companies that just
                                                                 think of themselves as
Brands in-hand                                                   pure mobile advertising
In 2009, Electronic Arts’ EA Games division launched mobile      services are going to be
versions of several well-known games such as Connect 4           in trouble.
and Monopoly.
                                                                  “Mobile advertising has fi-
Paid game applications that acted as brand extensions dom-       nally become about buying
inated the charts of Apple’s App Store.                          an audience and delivering
                                                                 rich media,” Mr. Chang
In 2009 movie studios used the mobile gaming space to mar-       said. “Greystripe’s opportu-
ket films with both paid and free applications and that trend     nity in 2010 is that we can
will continue as more entertainment entities go mobile to        demonstrate to brands
promote properties.                                              that mobile advertising
                                                                 can be more effective and
EA and fellow game publisher Glu Mobile will continue to         engaging than their online
cannibalize the demographic, but where are the traditional       media buys.
video game big players such as Microsoft and Nintendo?
                                                                 “Mobile advertising is a
Sony has the Playstation Portable and Nintendo has the Nin-      huge opportunity for brand
tendo DSi, but Microsoft is missing from the dedicated hand-     advertising,” he said. “2010
held gaming device world.                                        is looking bright.” I


PAGE 25                                                                         Mobile Marketer MOBILE OUTLOOK 2010
INTERNATIONAL
A global snapshot of mobile marketing’s evolution
By Draftfcb

    he world will be a more hospitable place for mobile ad-      High-speed mobile broadband coverage has also been ex-

T   vertising, marketing, media and commerce in 2010. The
    reasons are obvious: better handsets, more affordable
data plans, wireless carrier efforts and growing marketer ac-
                                                                 panded to many regional centers in Australia.

                                                                 In 2009 there were roughly 25 million mobile subscriptions in
ceptance of evolving consumer behavior on the go.                Australia for a population of around 22 million individuals.
                                                                 The country’s mobile industry roughly generated $15.5 billion
Challenges remain, as this international sweep of the outlook    in revenue in 2009, and a stronger infrastructure for mobile
for mobile will show. But that is only expected as mobile finds   has meant mobile media has continued to grow.
a place on the marketing table, with the requisite elbowing
from skeptics.                                                   With iPhones now offered by all major network providers and
                                                                 retailers in the Australian market, the uptake of the device
To create a snapshot of the current mobile scene around the      has been swift and will continue.
world, select experts in advertising agency Draftfcb’s global
network offered perspectives on the current and expected         Users are becoming accustomed to 3G services and content
state of mobile advertising, marketing, media and commerce       and downloading iPhone applications, with many local brands
in their respective markets. The questions asked included:       now producing applications for their product or service.

• What is the state of mobile marketing and media in             Official figures show that 45 percent of phone owners have
your market?                                                     3G-enabled phones. Over half use their mobile phone to get
• Are consumers receptive to mobile advertising                  information at least once a month and 51 percent use it to
and marketing?                                                   source entertainment content.
• What are the local challenges for mobile marketing, media
and commerce?                                                    There are growing opportunities for brands to provide branded
• What is next for mobile in your country?                       content around search.

Here are responses from Draftfcb executives in key markets       That said, one-third of 3G handset users type URLs directly in
engaged in mobile advertising, marketing, media and com-         to the phone browser with maps being the main information
merce. Thank-you to the Draftfcb executives for their time       they seek. This all points to huge opportunities for clients to
and insight. – Mickey Alam Khan                                  integrate mobile marketing into their campaign activity as
                                                                 people become more comfortable with using their mobile
                                                                 phone to seek information.

                                                                 Figures show 50 percent of users purchased content for their
                                                                 mobile phones in the last 12 months.

                                                                 Browsing the mobile Internet from a handset is in its infancy
                                                                 in Australia relative to other advanced economies, but 3G
                                                                 handset uptake in the last 12 months is growing – now at
AUSTRALIA                                                        around 60 percent of users – and mobile browsing and mobile
Alex Roper                                                       content will soon be an expectation for most mobile
Head of digital & direct                                         users here.
Draftfcb Melbourne
                                                                 Network providers are seeing the trend and are making data
Major mobile services providers have recently completed up-      packages more affordable – one-third of users now have data
grades to their mobile networks based on High Speed Packet       included in their plan – to win customers over after making
Access (HSPA) technologies.                                      data packages unaffordable for some time.


PAGE 26                                                                        Mobile Marketer MOBILE OUTLOOK 2010
Overall, there has been an increase in the acceptance of ad-      percent are using their phone solely for its talk capabilities.
vertising on mobile devices since 2007 and the numbers are        SMS, videos, photos, music, Internet surfing, emailing and
set to continue upward.                                           even paying with the mobile device is becoming much
                                                                  more common.
Users of mobile devices are happy to receive advertising in ex-
change for free mobile content or special offers. It is very      In a few instances, performance-based mobile marketing has
much about a fair exchange with brands. Users want some-          been very successful and is beginning to influence
thing of value if marketers are going to contact them on their    traditional thinkers.
personal communication device.
                                                                  Consumers in Austria have become very receptive to mobile
The primary challenge for mobile marketing is in competing        advertising and marketing, especially if marketers are able to
with the Internet and television, both which continue to be       provide them with an added value through special promotions.
the primary portals for information.
                                                                  Austria’s digital market seems to be behind other international
With users still coming to terms with relying on their handsets   markets and, therefore, it will take more time to increase the
to conduct many of the day-to-day tasks they still assign to      awareness of the importance and impact of mobile
the Internet, mobile marketing must still gain traction           marketing investments.
in Australia.
                                                                  Meanwhile, due to the rise of smartphones and iPhones pro-
As more key information, banking and news sites become op-        moted through very attractive provider packages, an increase
timized for mobile, it will become an increasingly effective      in mobile applications and mobile data traffic can be expected
channel for marketers. And the outlook is extremely positive.     in the coming months.

Although mobile service subscription rates are now between
110 percent and 115 percent of the population, growth is likely
to continue for the foreseeable future.

Australian carriers are likely to have more than 25 million mo-
bile subscribers in 2011 as migration and business adoption
continue to drive these figures.

                                                                  BRITAIN
                                                                  Leo Ryan
                                                                  Planning director for digital
                                                                  Draftfcb London

                                                                  The state of mobile marketing and media in Britain could best
                                                                  be described as “developing.”

                                                                  Despite years of interest and enthusiasm, it is really only the
AUSTRIA                                                           recent advent of all-you-can-eat data plans that has made
Florian Zelmanovics-Perl                                          mobile affordable for consumers to access the Web regularly
Chief operating officer                                           and for longer periods of time.
Draftfcb Partners
                                                                  Consumer reception levels seem to reflect those of other
There are 10.68 million mobile users in Austria and a mere 4      media. Banners receive low click-through rates, but surely that

PAGE 27                                                                          Mobile Marketer MOBILE OUTLOOK 2010
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018
7018

Contenu connexe

Tendances

Mobile Marketing Abcmobileapps.com
Mobile Marketing Abcmobileapps.comMobile Marketing Abcmobileapps.com
Mobile Marketing Abcmobileapps.comunlimitedbusiness
 
Strategy Magazine- Dave Oakes
Strategy Magazine- Dave OakesStrategy Magazine- Dave Oakes
Strategy Magazine- Dave OakesDave Oakes
 
All search52 mobile-marketing-sales-presentation
All search52  mobile-marketing-sales-presentationAll search52  mobile-marketing-sales-presentation
All search52 mobile-marketing-sales-presentationGeorge Phillip
 
Mobile marketing-sales-presentation-reach mob
Mobile marketing-sales-presentation-reach mobMobile marketing-sales-presentation-reach mob
Mobile marketing-sales-presentation-reach mobRobert Bagnall
 
Mobile marketing Strategy 2013
Mobile marketing Strategy 2013Mobile marketing Strategy 2013
Mobile marketing Strategy 2013Fraser Hay
 
Mobile marketing sales presentation brickandmobile.com
Mobile marketing sales presentation   brickandmobile.comMobile marketing sales presentation   brickandmobile.com
Mobile marketing sales presentation brickandmobile.comAl-Hussien Khayoon
 
Mobile Web Presentation
Mobile Web PresentationMobile Web Presentation
Mobile Web PresentationjharriSS
 
Mobile Internet Stats
Mobile Internet StatsMobile Internet Stats
Mobile Internet StatsSkochy
 
Movocity - Everywhere Your Customers Are
Movocity - Everywhere Your Customers AreMovocity - Everywhere Your Customers Are
Movocity - Everywhere Your Customers AreEdward Niu
 
Groupapps Company Presentation v.1.5
Groupapps   Company Presentation v.1.5Groupapps   Company Presentation v.1.5
Groupapps Company Presentation v.1.5Alberto Benbunan
 
Berney Final Communication Wednesday Prague Nov 09
Berney  Final Communication Wednesday Prague Nov 09Berney  Final Communication Wednesday Prague Nov 09
Berney Final Communication Wednesday Prague Nov 09TUESDAY Business Network
 
Engaging the MOBILE Consumer 2013
Engaging the MOBILE Consumer 2013Engaging the MOBILE Consumer 2013
Engaging the MOBILE Consumer 2013Purplegator
 
2011年技术市场不会发生的事
2011年技术市场不会发生的事2011年技术市场不会发生的事
2011年技术市场不会发生的事武挥 魏
 
Cove3 Mobile Marketing
Cove3 Mobile MarketingCove3 Mobile Marketing
Cove3 Mobile MarketingPropel!Apps
 
Mobile Anthem Capabilities
Mobile Anthem CapabilitiesMobile Anthem Capabilities
Mobile Anthem CapabilitiesMobileAnthem
 
Mobile Marketing and Mobile Apps.
Mobile Marketing and Mobile Apps.Mobile Marketing and Mobile Apps.
Mobile Marketing and Mobile Apps.Divya Shah
 

Tendances (20)

Mobile Marketing Abcmobileapps.com
Mobile Marketing Abcmobileapps.comMobile Marketing Abcmobileapps.com
Mobile Marketing Abcmobileapps.com
 
Strategy Magazine- Dave Oakes
Strategy Magazine- Dave OakesStrategy Magazine- Dave Oakes
Strategy Magazine- Dave Oakes
 
Reactive whitepaper on mcommerce
Reactive whitepaper on mcommerceReactive whitepaper on mcommerce
Reactive whitepaper on mcommerce
 
All search52 mobile-marketing-sales-presentation
All search52  mobile-marketing-sales-presentationAll search52  mobile-marketing-sales-presentation
All search52 mobile-marketing-sales-presentation
 
Mobile marketing-sales-presentation-reach mob
Mobile marketing-sales-presentation-reach mobMobile marketing-sales-presentation-reach mob
Mobile marketing-sales-presentation-reach mob
 
Mobile marketing Strategy 2013
Mobile marketing Strategy 2013Mobile marketing Strategy 2013
Mobile marketing Strategy 2013
 
Mobile marketing sales presentation brickandmobile.com
Mobile marketing sales presentation   brickandmobile.comMobile marketing sales presentation   brickandmobile.com
Mobile marketing sales presentation brickandmobile.com
 
Mobile Web Presentation
Mobile Web PresentationMobile Web Presentation
Mobile Web Presentation
 
Mobile Internet Stats
Mobile Internet StatsMobile Internet Stats
Mobile Internet Stats
 
Movocity - Everywhere Your Customers Are
Movocity - Everywhere Your Customers AreMovocity - Everywhere Your Customers Are
Movocity - Everywhere Your Customers Are
 
Mobi Vantage
Mobi VantageMobi Vantage
Mobi Vantage
 
Groupapps Company Presentation v.1.5
Groupapps   Company Presentation v.1.5Groupapps   Company Presentation v.1.5
Groupapps Company Presentation v.1.5
 
Berney Final Communication Wednesday Prague Nov 09
Berney  Final Communication Wednesday Prague Nov 09Berney  Final Communication Wednesday Prague Nov 09
Berney Final Communication Wednesday Prague Nov 09
 
Globalmouth Swedma utbildning
Globalmouth  Swedma utbildningGlobalmouth  Swedma utbildning
Globalmouth Swedma utbildning
 
Engaging the MOBILE Consumer 2013
Engaging the MOBILE Consumer 2013Engaging the MOBILE Consumer 2013
Engaging the MOBILE Consumer 2013
 
2011年技术市场不会发生的事
2011年技术市场不会发生的事2011年技术市场不会发生的事
2011年技术市场不会发生的事
 
Cove3 Mobile Marketing
Cove3 Mobile MarketingCove3 Mobile Marketing
Cove3 Mobile Marketing
 
Mobile Anthem Capabilities
Mobile Anthem CapabilitiesMobile Anthem Capabilities
Mobile Anthem Capabilities
 
Mobile marketing and apps
Mobile marketing and appsMobile marketing and apps
Mobile marketing and apps
 
Mobile Marketing and Mobile Apps.
Mobile Marketing and Mobile Apps.Mobile Marketing and Mobile Apps.
Mobile Marketing and Mobile Apps.
 

Similaire à 7018

Mobile Marketer's Classic Guide to Mobile Advertising
Mobile Marketer's Classic Guide to Mobile AdvertisingMobile Marketer's Classic Guide to Mobile Advertising
Mobile Marketer's Classic Guide to Mobile AdvertisingOn-Site Solutions
 
Classic Guide To Mobile Advertising
Classic Guide To Mobile AdvertisingClassic Guide To Mobile Advertising
Classic Guide To Mobile AdvertisingScott A. Smith
 
Mobile Marketing Bonus1 Pdf
Mobile Marketing Bonus1 PdfMobile Marketing Bonus1 Pdf
Mobile Marketing Bonus1 PdfAnna
 
Classic Guide to Mobile Advertising
Classic Guide to Mobile AdvertisingClassic Guide to Mobile Advertising
Classic Guide to Mobile AdvertisingAnna
 
Mobile Advertising 2020 Vision from Ogilvy and Acision
Mobile Advertising 2020 Vision from Ogilvy and AcisionMobile Advertising 2020 Vision from Ogilvy and Acision
Mobile Advertising 2020 Vision from Ogilvy and AcisionAndrew Grill
 
Mobile Advertising 2020 Vision
Mobile Advertising 2020 VisionMobile Advertising 2020 Vision
Mobile Advertising 2020 Visionguest240766
 
26 social-media-marketing-trends-for-2013-121220195421-phpapp02
26 social-media-marketing-trends-for-2013-121220195421-phpapp0226 social-media-marketing-trends-for-2013-121220195421-phpapp02
26 social-media-marketing-trends-for-2013-121220195421-phpapp02Rui Morais
 
26 Social Media Marketing Trends for 2013
26 Social Media Marketing Trends for 201326 Social Media Marketing Trends for 2013
26 Social Media Marketing Trends for 2013DreamGrow Digital
 
DCA Mobile Advertising V. Mobile Marketing
DCA Mobile Advertising V. Mobile MarketingDCA Mobile Advertising V. Mobile Marketing
DCA Mobile Advertising V. Mobile MarketingOdem Global, Inc.
 
[Pps] branding unbound
[Pps] branding unbound[Pps] branding unbound
[Pps] branding unboundRichard Go
 
Day2 1715 turning_cogs_havas_digital
Day2 1715 turning_cogs_havas_digitalDay2 1715 turning_cogs_havas_digital
Day2 1715 turning_cogs_havas_digitalSaatchi & Saatchi
 
Day2 1715 turning_cogs_havas_digital
Day2 1715 turning_cogs_havas_digitalDay2 1715 turning_cogs_havas_digital
Day2 1715 turning_cogs_havas_digitalSaatchi & Saatchi
 
The advantage of using mobile advertising
The advantage of using mobile advertisingThe advantage of using mobile advertising
The advantage of using mobile advertisingliubaobao
 
Доклад SFN 8.4. - Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. - Эффективные мобильные стратегии / Winning Mobile Strategies Dariya
 
Marketing Profs - Mobile Marketing Success Stories
Marketing Profs - Mobile Marketing Success StoriesMarketing Profs - Mobile Marketing Success Stories
Marketing Profs - Mobile Marketing Success StoriesSionne Roberts
 
Digital Marketing Outlook 2010 by the Society Of Digital Agencies
Digital Marketing Outlook 2010 by the Society Of Digital AgenciesDigital Marketing Outlook 2010 by the Society Of Digital Agencies
Digital Marketing Outlook 2010 by the Society Of Digital AgenciesPietro Sansone
 

Similaire à 7018 (20)

Mobile Marketer's Classic Guide to Mobile Advertising
Mobile Marketer's Classic Guide to Mobile AdvertisingMobile Marketer's Classic Guide to Mobile Advertising
Mobile Marketer's Classic Guide to Mobile Advertising
 
Classic Guide To Mobile Advertising
Classic Guide To Mobile AdvertisingClassic Guide To Mobile Advertising
Classic Guide To Mobile Advertising
 
Mobile Marketing Bonus1 Pdf
Mobile Marketing Bonus1 PdfMobile Marketing Bonus1 Pdf
Mobile Marketing Bonus1 Pdf
 
Classic Guide to Mobile Advertising
Classic Guide to Mobile AdvertisingClassic Guide to Mobile Advertising
Classic Guide to Mobile Advertising
 
Mobile Advertising 2020 Vision from Ogilvy and Acision
Mobile Advertising 2020 Vision from Ogilvy and AcisionMobile Advertising 2020 Vision from Ogilvy and Acision
Mobile Advertising 2020 Vision from Ogilvy and Acision
 
Mobile Advertising 2020 Vision
Mobile Advertising 2020 VisionMobile Advertising 2020 Vision
Mobile Advertising 2020 Vision
 
26 social-media-marketing-trends-for-2013-121220195421-phpapp02
26 social-media-marketing-trends-for-2013-121220195421-phpapp0226 social-media-marketing-trends-for-2013-121220195421-phpapp02
26 social-media-marketing-trends-for-2013-121220195421-phpapp02
 
26 Social Media Marketing Trends for 2013
26 Social Media Marketing Trends for 201326 Social Media Marketing Trends for 2013
26 Social Media Marketing Trends for 2013
 
Landor's T Wade Trends09 13 Dec08
Landor's T Wade Trends09 13 Dec08Landor's T Wade Trends09 13 Dec08
Landor's T Wade Trends09 13 Dec08
 
DCA Mobile Advertising V. Mobile Marketing
DCA Mobile Advertising V. Mobile MarketingDCA Mobile Advertising V. Mobile Marketing
DCA Mobile Advertising V. Mobile Marketing
 
Guia marketing movil wsi
Guia marketing movil wsiGuia marketing movil wsi
Guia marketing movil wsi
 
[Pps] branding unbound
[Pps] branding unbound[Pps] branding unbound
[Pps] branding unbound
 
Day2 1715 turning_cogs_havas_digital
Day2 1715 turning_cogs_havas_digitalDay2 1715 turning_cogs_havas_digital
Day2 1715 turning_cogs_havas_digital
 
Day2 1715 turning_cogs_havas_digital
Day2 1715 turning_cogs_havas_digitalDay2 1715 turning_cogs_havas_digital
Day2 1715 turning_cogs_havas_digital
 
The advantage of using mobile advertising
The advantage of using mobile advertisingThe advantage of using mobile advertising
The advantage of using mobile advertising
 
Доклад SFN 8.4. - Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies Доклад SFN 8.4. -  Эффективные мобильные стратегии / Winning Mobile Strategies
Доклад SFN 8.4. - Эффективные мобильные стратегии / Winning Mobile Strategies
 
Marketing Profs - Mobile Marketing Success Stories
Marketing Profs - Mobile Marketing Success StoriesMarketing Profs - Mobile Marketing Success Stories
Marketing Profs - Mobile Marketing Success Stories
 
SoDA 2010 Digital Marketing Outlook
SoDA 2010 Digital Marketing OutlookSoDA 2010 Digital Marketing Outlook
SoDA 2010 Digital Marketing Outlook
 
2010 Digital Marketing Forecast And Outlook
2010 Digital Marketing Forecast And Outlook2010 Digital Marketing Forecast And Outlook
2010 Digital Marketing Forecast And Outlook
 
Digital Marketing Outlook 2010 by the Society Of Digital Agencies
Digital Marketing Outlook 2010 by the Society Of Digital AgenciesDigital Marketing Outlook 2010 by the Society Of Digital Agencies
Digital Marketing Outlook 2010 by the Society Of Digital Agencies
 

Plus de Anna

Mobile Marketing B O N U S1 P D F
Mobile Marketing  B O N U S1  P D FMobile Marketing  B O N U S1  P D F
Mobile Marketing B O N U S1 P D FAnna
 
2585
25852585
2585Anna
 
Ad Mob Mobile Metrics Mar 10 Publisher Survey
Ad Mob Mobile Metrics Mar 10 Publisher SurveyAd Mob Mobile Metrics Mar 10 Publisher Survey
Ad Mob Mobile Metrics Mar 10 Publisher SurveyAnna
 
Digital Digest
Digital DigestDigital Digest
Digital DigestAnna
 
CMO Survey Results (Forbes Insights)
CMO Survey Results (Forbes Insights)CMO Survey Results (Forbes Insights)
CMO Survey Results (Forbes Insights)Anna
 
Twitter - инструкция пользователя
Twitter - инструкция пользователяTwitter - инструкция пользователя
Twitter - инструкция пользователяAnna
 
Mobile Trends 2020
Mobile Trends 2020Mobile Trends 2020
Mobile Trends 2020Anna
 
AdMob - Mobile Metrics (November 2009)
AdMob - Mobile Metrics (November 2009)AdMob - Mobile Metrics (November 2009)
AdMob - Mobile Metrics (November 2009)Anna
 
iPhone - новейшие медиа
iPhone - новейшие медиаiPhone - новейшие медиа
iPhone - новейшие медиаAnna
 
Отчет для партнеров и спонсоров DrupalCamp Kyiv2009
Отчет для партнеров и спонсоров DrupalCamp Kyiv2009Отчет для партнеров и спонсоров DrupalCamp Kyiv2009
Отчет для партнеров и спонсоров DrupalCamp Kyiv2009Anna
 
Як залучати відвідувачів та піднімати доходи з Internet Explorer 8: технологі...
Як залучати відвідувачів та піднімати доходи з Internet Explorer 8: технологі...Як залучати відвідувачів та піднімати доходи з Internet Explorer 8: технологі...
Як залучати відвідувачів та піднімати доходи з Internet Explorer 8: технологі...Anna
 
Состояние украинской блогосферы 2009, как не пропустить главное
Состояние украинской блогосферы 2009, как не пропустить главноеСостояние украинской блогосферы 2009, как не пропустить главное
Состояние украинской блогосферы 2009, как не пропустить главноеAnna
 

Plus de Anna (12)

Mobile Marketing B O N U S1 P D F
Mobile Marketing  B O N U S1  P D FMobile Marketing  B O N U S1  P D F
Mobile Marketing B O N U S1 P D F
 
2585
25852585
2585
 
Ad Mob Mobile Metrics Mar 10 Publisher Survey
Ad Mob Mobile Metrics Mar 10 Publisher SurveyAd Mob Mobile Metrics Mar 10 Publisher Survey
Ad Mob Mobile Metrics Mar 10 Publisher Survey
 
Digital Digest
Digital DigestDigital Digest
Digital Digest
 
CMO Survey Results (Forbes Insights)
CMO Survey Results (Forbes Insights)CMO Survey Results (Forbes Insights)
CMO Survey Results (Forbes Insights)
 
Twitter - инструкция пользователя
Twitter - инструкция пользователяTwitter - инструкция пользователя
Twitter - инструкция пользователя
 
Mobile Trends 2020
Mobile Trends 2020Mobile Trends 2020
Mobile Trends 2020
 
AdMob - Mobile Metrics (November 2009)
AdMob - Mobile Metrics (November 2009)AdMob - Mobile Metrics (November 2009)
AdMob - Mobile Metrics (November 2009)
 
iPhone - новейшие медиа
iPhone - новейшие медиаiPhone - новейшие медиа
iPhone - новейшие медиа
 
Отчет для партнеров и спонсоров DrupalCamp Kyiv2009
Отчет для партнеров и спонсоров DrupalCamp Kyiv2009Отчет для партнеров и спонсоров DrupalCamp Kyiv2009
Отчет для партнеров и спонсоров DrupalCamp Kyiv2009
 
Як залучати відвідувачів та піднімати доходи з Internet Explorer 8: технологі...
Як залучати відвідувачів та піднімати доходи з Internet Explorer 8: технологі...Як залучати відвідувачів та піднімати доходи з Internet Explorer 8: технологі...
Як залучати відвідувачів та піднімати доходи з Internet Explorer 8: технологі...
 
Состояние украинской блогосферы 2009, как не пропустить главное
Состояние украинской блогосферы 2009, как не пропустить главноеСостояние украинской блогосферы 2009, как не пропустить главное
Состояние украинской блогосферы 2009, как не пропустить главное
 

7018

  • 1. A CLASSIC GUIDE Mobile Marketer THE NEWS LEADER IN MOBILE MARKETING, MEDIA AND COMMERCE TM $395 www.MobileMarketer.com Mobile Outlook 2010 TM Sponsored by
  • 2. CONTENTS PAGE PAGE 3 EDITOR’S NOTE: Mobile marketing gains stature by Mickey Alam Khan 25 GAMING: Monetization strategy key issue for game developers 4 LIFE’S GOOD: Expect 100-150 by Chris Harnick percent growth in mobile budgets by Richard Ting, R/GA 26 INTERNATIONAL: A global snapshot of mobile marketing’s evolution by Draftfcb 8 AD NETWORKS: Mobile ad networks can expect more consolidation 37 LEGAL: Expect additional legal challenges as by Dan Butcher mobile matures by Gonzalo E. Mon, Kelley Drye & Warren 10 ADVERTISING: Agencies, brands prepare for mobile advertising clutter 38 MANUFACTURING: Will all mobile phones be by Giselle Tsirulnik smartphones in 2010? by Dan Butcher 12 BANKING AND PAYMENTS: Financial institutions to embrace mobile services 39 MEDIA: Mobile will not save the print industry by Chris Harnick in 2010 by Chris Harnick 14 CARRIER NETWORKS: Wireless carriers to ramp up on-deck 40 MESSAGING: Nothing compares advertising to ubiquity of SMS marketing by Dan Butcher by Giselle Tsirulnik 16 COMMERCE: Mobile commerce to evolve 41 MUSIC: Mobile will continue to drive consumer shopping habits innovation in music by Giselle Tsirulnik by Chris Harnick 18 CONTENT: Struggling to stand out in the 42 SEARCH: Will 2010 be the year of content arena mobile search marketing? by Chris Harnick by Giselle Tsirulnik 43 SOCIAL NETWORKS: Social media networks and 19 COUPONS: Mobile coupons will mobile go hand-in-hand make the cut for consumers by Chris Harnick by Jim Buckley, Valpak 44 SOFTWARE AND TECHNOLOGY: Augmented reality, smartphones and bar codes by Dan Butcher 22 DATABASE/CRM: Mobile database/CRM 45 TELEVISION: 2010 will be about keeping up initiatives to help drive sales with the audience by Dan Butcher by Chris Harnick 23 EMAIL: Email marketers to focus more on the 46 VIDEO: Mobile video gets into marketing’s small screen big picture by Dan Butcher by Giselle Tsirulnik PAGE 2 Mobile Marketer MOBILE OUTLOOK 2010
  • 3. EDITOR’S NOTE Mobile marketing gains stature By Mickey Alam Khan he outlook for mobile marketing, media and commerce in 2010 of mobile commerce. Better phones, easily navigable mobile sites T is just like this edition’s cover: peachy. with transaction capabilities, more confidence in mobile payment security and hyperbolic press will simply boost the prospects for As Mobile Marketer editors and reporters Giselle Tsirulnik, Dan mobile shopping and buying. Butcher and Chris Harnick explain in their succinct analysis of mobile marketing, brands and agencies are now completely alert Retailers and marketers will discover fresh uses of SMS, mobile to the potential of the medium to influence branding and cus- sites, applications and mobile coupons to drive traffic in-store. tomer acquisition and retention. Opted-in SMS databases will continue to build. Mobile Marketer’s Mobile Outlook 2010 is designed to supply Overseas, mobile marketing is at various stages of development, brands, agencies, publishers, retailers and mobile marketing firms as Draftfcb’s excellent international roundup shows. That chapter with the necessary intelligence to make smart decisions to include is a must-read. mobile into the multichannel marketing and retailing mix. … but tears as well It is quite clear from recent market activity – Google buying AdMob With all the hype and exuberance, expect some pinpricks. and Apple absorbing Quattro Wireless, Apple iPad and Google Nexus One launches, eBay’s record $500 million in mobile commerce last Concerns over privacy and targeting will be further heightened. year – that mobile is no longer considered a niche medium. Carriers will need more pushing to accelerate the common short code provisioning process. Carrier networks will strain to bear data Buoyed by results of mobile campaigns initiated last year, many traffic that is growing almost in line with Moore’s Law. brands are expected to ramp up their spending from six figures to seven. Richard Ting, mobile chief at No. 1 interactive agency R/GA, Also, Apple, Amazon, Google, Microsoft, Nokia, Dell and other projects that mobile budgets will grow this year between 100 per- manufacturers and software companies will vie to promote their cent and 150 percent. own walled-garden mobile devices. So standards for mobile con- tent and commerce will rend apart. On a tear … Of course, with growth comes upheaval and a change in status And let’s not forget the maze of lawsuits that these same manu- quo. So expect some mobile sectors such as ad networks to un- facturers are lobbing at each other, crying foul over copyright law. dergo more consolidation. Expect more legal wrangling. Wireless carriers will face even more pressure with the increased In other words, mobile is beginning to look just like a regular mar- consumption of mobile Web. The jury is still out whether con- keting medium. sumers will pay for mobile news content, while not hesitating to fork out 99 cents for a song or application. We hope you enjoy this read, and are emboldened to take the next step in mobile marketing. Phones from all sorts of manufacturers, new and old, will domi- nate headlines. So will new mobile devices such as the Apple iPad Many thanks to our editorial staff, Mobile Outlook 2010 colum- and others of its ilk. nists and ad sales director Jodie Solomon, as well as art director Rob DiGioia, who worked on this edition and, as usual, summed The big story this year will be the growing consumer acceptance this effort best: “It’s not Outlook – it’s look out!” 401 Broadway, Suite 1408 Rob DiGioia New York, NY 10013 Mickey Alam Khan Dan Butcher Jordan Crook Director, Editorial Tel: 212-334-6305 Editor in Chief Staff Reporter Editorial Assistant Development Fax: 212-334-6339 mickey@ dan@ jordan@ rob@ Email: news@mobilemarketer.com mobilemarketer.com mobilemarketer.com mobilemarketer.com mobilemarketer.com Web site: www.MobileMarketer.com For newsletter subscriptions: http://www.mobilemarketer.com/ newsletter.php Giselle Tsirulnik Chris Harnick Jodie Solomon Senior Editor Editorial Assistant Director, Ad Sales For advertising: giselle@ chris@ ads@ http://www.mobilemarketer.com/ mobilemarketer.com mobilemarketer.com mobilemarketer.com cms/general/1.html For reprints: reprints@mobilemarketer.com Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com, Classic Guides, webinars, events and awards. ©2010 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission. February 4, 2010 PAGE 3 Mobile Marketer MOBILE OUTLOOK 2010
  • 4. LIFE’S GOOD Expect 100-150 percent growth in mobile budgets By Richard Ting oodbye, 2009 – you were a great year for the mobile The iPhone also gave industry cre- G industry. The amount of chatter, buzz and general awareness of the arena skyrocketed to previously unseen levels. atives reason to pause and imagine the infinite possibilities of this bur- geoning medium. As more brands began to better understand the strength, ef- Who would have thought that one fect and ubiquity of mobile, they also began to reserve thin year ago I would be using a mobile slices of marketing budgets specifically for the medium. phone to shop for clothes through the Gilt Groupe application, watch On top of that, technological advances in handsets and carrier live baseball games through the network speeds, along with the proliferation of application Major League Baseball application, stores, helped to open the doors of a once-creatively stagnant and unlock rental cars using the Richard Ting, VP/executive arm of advertising. Zipcar application? creative director of mobile & emerging platforms, R/GA Let us reflect on the monumental progress the industry has The progress is mindboggling, inspi- made over the past 12 months, and spend a moment looking rational and incomparable. forward to what may come in 2010. Brands building digital ecosystems My top thoughts for 2009: Gone are the days when mobile was treated as just a stand- alone medium. Smart brands and agencies understand the im- R.I.P. dumbphones portance of creating fully integrated and complementary In 2009, smartphone growth was unprecedented. experiences across various digital mediums. Every major carrier nationwide now has a go-to smartphone By integrating channels, brands can get more bang for their with access to an application store, enhanced browsing fea- buck through the re-use of media assets, which leads to easier tures, GPS capability, an unlimited data plan and connectivity long-term maintenance. into existing social networks such as Twitter and Facebook. Marketers want consistency of brand message and experience Even non-smartphones (also known as “dumbphones”) have across each digital channel. begun to deliver on these more advanced features, thus fos- tering an even more widespread adoption of mobile Web and Consumers now expect to be able to type in a brand’s Web mobile application services. address into their mobile browser and view a fully mobile-op- timized site. Brands that are not delivering on this base-level Price points for smartphones have also significantly dropped, experience risk alienating their mobile-savvy consumers. making the barrier of entry into the smartphone world almost non-existent. Mobile can outperform other mediums Due to increased recessionary pressures in 2009, marketers IPhone application explosion began to shift budgets from traditional advertising to more There is not much that can be said here that the general pop- measurable digital mediums such as mobile. ulation does not already know. More than 3 billion downloads, 140,000-plus applications – the numbers speak for themselves. Accountability and ROI were paramount this past year, and countless case studies emerged from the mobile landscape to However, the iPhone revolutionized the mobile industry and showcase the industry’s ability to outperform other mediums. forced the hand of everyone – from handset manufacturers and carriers to application developers – to be more creative One important case study to highlight was the launch of the and innovative in order to stay in the game. 2010 Volkswagen GTI. PAGE 4 Mobile Marketer MOBILE OUTLOOK 2010
  • 5. As an industry first, Volkswagen decided to forego traditional The return of marketing in mobile marketing advertising, relying solely on an iPhone application to promote For the last few years, the mobile industry has mostly relied on and launch the new model. To date, the application has seen standalone, one-off mobile campaigns based on ill-funded re- more than 2.1 million downloads. quests by clients with surplus budgets at year’s end. Whether or not this is a trend for the industry remains to be As mobile gains in strategic importance, we will begin to see seen, but it could be the campaign that leads to more copycat sounder, insight-driven mobile marketing campaigns that tie executions in the near future. back into the larger strategic and creative brand experience. Google buys AdMob, Apple nabs Quattro Wireless The discourse in the mobile marketing industry will shift from The effect of Google’s purchase of mobile ad network AdMob being overly focused on carriers and technology vendors to and Apple’s buy of Quattro Wireless remains to be determined. more focused on creative and marketing strategy. But at $750 million and $275 million respectively, it is hard to ignore the importance of With that said, I am not discounting the importance of under- Google’s third-largest ac- standing carrier restrictions, standards and the various assort- quisition and Apple’s first ments of technology platforms out there. mobile ad buy. But the No. 1 question we all need to ask ourselves in 2010 is, Mobile display advertising “What is the best experience that we can build for consumers is growing, and while it that creates a deeper brand engagement for that consumer?” still faces challenges cen- tered on effectiveness, this It is a question that has been ignored for too long by mobile acquisition serves as vali- marketing practitioners. dation to the industry-at- large that there is a future Larger budgets for mobile for paid display advertising In terms of growth, 2009 was unprecedented for the industry, in mobile – an idea that but it was just the beginning. In 2010, I predict close to 100 has caused tremen- percent to 150 percent growth in mobile budgets. dous excitement in the mobile realm. Brands will begin to increase their mobile marketing spend to fund better planning, strategy, creative work and analytics – Google sees the future of allowing for more quality, integrated work to take place in mobile advertising taking the medium. off. However, in my opinion, brands in the mobile space must look beyond paid media and embrace owned and earned By the end of 2010, expect to see a doubling of mobile staff media, as well. size, budgets and the number of projects that agencies will produce. Overall, 2009 was a great year, but we have barely scratched the surface of what is possible in mobile. Create fluid solutions Massive fragmentation still exists across the industry. There Top predictions for 2010 are still many different platforms, devices, carriers and varied While mobile has been slow to take hold for several years now, regional mobile adoption rates. 2009 saw the perfect convergence of factors that encouraged the industry to feverishly embrace this next great medium. Providing multiple entry points into a mobile campaign will Expect to an even greater explosion of growth in 2010. Here allow brands to access larger audiences. Brands must provide are my top predictions for what to expect: the right solutions for the appropriate audience. PAGE 5 Mobile Marketer MOBILE OUTLOOK 2010
  • 6. IPhone applications work for some audiences, but SMS and payments experienced a 650 percent increase from that of the mobile Web need to be leveraged for those without iPhones or previous year. other smartphones. Owned and earned media emerge for mobile Understand your audience and design and build accordingly. Despite the Google/AdMob and Apple/Quattro Wireless deals, There is rarely a one-size-fits-all solution available for mobile. paid media is not the only game in town for mobile. In 2010, expect more brands to embrace owned and earned media. Mobile and commerce converge and grow Expect retailers to continue to leverage mobile to convert In the same way that brands have owned destinations for the shoppers into buyers. Web, I predict that the same will be true for mobile, as more brands build out their mobile site platforms. The ability to influence and aid a purchase decision at that crucial point of sale will drive growth in this area. In addition, expect more social brand experiences in mobile to drive mobile-initiated earned media for a brand. The statistical evidence so far is staggering. According to a recent Deloitte survey, 55 percent of users said that they will Rise of non-iPhone applications use their mobile device to find store locations and 45 percent We are starting to see a bit of competition from Android and of users will use their devices to research prices. Research In Motion as both platforms closed out 2009 on a strong note. Recent case studies and user studies point to even more suc- cess in this area in 2010. Motorola is on track to sell the one millionth Android-pow- ered Droid, which has surprised many by quickly developing In 2009, eBay CEO John Donahoe said that he expected eBay such a large following in a matter of months. to generate more than $500 million in mobile- based commerce. The iPhone may still be king of the hill, but as more brands de- velop strategies to connect with wider audiences, not devel- On Black Friday of 2009, eBay’s PayPal announced that mobile oping applications for the Android and BlackBerry platforms PAGE 6 Mobile Marketer MOBILE OUTLOOK 2010
  • 7. Monday through Friday. Click HERE for your free subscription to the Mobile Marketer Daily e-newsletter. And HERE for Mobile Commerce Daily. will not be an option by the end of 2010. For every ad agency out there, now is the time to invest. Grow your existing creative teams so that they are diverse TM enough to create and design for mobile. Mobile Marketer THE NEWS LEADER IN MOBILE MARKETING, Start converting your Web-based programmers so that they MEDIA AND COMMERCE can also handle mobile programming duties. The demand is there and the growing pains needed to handle this demand will pay huge dividends in 2010 and beyond. Market researcher Berg Insight predicts that mobile will ac- Mobile count for 11.7 percent of the total digital ad spend by 2014. Commerce From where I sit, I think those numbers are conservative, and I am sure others in the mobile industry will agree. I Daily THE NEWS LEADER IN MOBILE COMMERCE Richard Ting is vice president and executive creative director AND RETAIL for mobile and emerging platforms at R/GA, an Interpublic Group-owned interactive agency in New York. Reach him at richard.ting@rga.com. PAGE 7 Mobile Marketer MOBILE OUTLOOK 2010
  • 8. AD NETWORKS Mobile ad networks can expect more consolidation By Dan Butcher n 2010, the mobile ad networks space will continue to feel Mr. Johar said. I the after-effects of Google’s acquisition of AdMob and Apple’s purchase of Quattro Wireless. Besides AdMob, Quattro Wireless, Jumptap and Greystripe, other major players in the mobile ad networks space include Expect more consolidation in the space. Moves such as the Millennial Media, Microsoft’s MSN Ad Network, Mojiva, Nokia Google-AdMob and Apple-Quattro deals could encourage Interactive Advertising, AOL’s Advertising.com and InMobi. more online players to join the mobile advertising space. Brands rely on networks to attract eyeballs and publishers rely “Both deals highlight the need for any strategic player in dig- on them to fill their inventory. ital media to have a mobile advertising solution in place,” said Michael Chang, CEO of Greystripe, San Francisco. The world’s biggest brands are working with mobile ad net- works for campaigns. For example, Adidas, Nike, Coca-Cola “We expect big media and carriers who have been on the side- Co., PepsiCo, Jaguar, Procter & Gamble Co.’s CoverGirl and lines for mobile advertising to increase their in- Comedy Central all tapped mobile ad networks terest in the space along with the digital media in 2009 for their ad campaigns. companies like online ad networks and portals,” he said. “The mobile space is evolving quickly as new competitors enter the space and new devices Deals such as these make big brands aware and operating systems gain traction,” said that mobile advertising dollars are no Nicole Leverich, director of corporate commu- small potatoes. nications at AdMob, San Mateo, CA. “This pres- ents our industry with great opportunities, and “As [Google chairman/CEO] Eric Schmitt has 2010 will certainly be an exciting year said in the past, mobile advertising will net big- in mobile.” ger revenues than online,” Mr. Chang said. “Every company needs to make a bold play on Ads add up mobile or risk being left behind.” With new devices hitting the market and con- sumer adoption of smartphones rapidly grow- Networks in play ing, ad networks are going to see more While there are parallels between mobile and interest from marketers in the mobile online, mobile is a medium unto itself, and the advertising space. ad networks can help provide brands with ed- ucation, as well as reach. While the various mobile ad networks may disagree about who the top player is in the space, they all agree on one thing: Google’s acquisition of AdMob was significant because a lead- the outlook for mobile advertising in 2010 is bullish. ing Internet company decided it did not have the mobile ex- pertise it needed in-house. “We foresee continued growth in mobile advertising in 2010, which will benefit all members of the ecosystem—advertisers, Paran Johar, chief marketing officer of Jumptap, New York, agencies, publishers, app developers and networks,” said Lynn forecasts that Microsoft and Yahoo will also acquire mobile Tornabene, New York-based chief marketing officer of ad networks. Quattro Wireless. “The carrier play can help them become a more media-centric “No matter whom you are trying to reach—gamers, moms, organization, the Apple play can help them monetize unpaid business execs, in-market auto buyers—you can target them free apps, while Microsoft and Yahoo recognize that to effectively on the mobile Web and in applications, at scale,” compete with Google they need experts in the field,” she said. I PAGE 8 Mobile Marketer MOBILE OUTLOOK 2010
  • 9. GET THE BEST MARKETING & ADVERTISING ROI WITH SMS Increase your ROI by adding Mobile to your campaigns using SMS • Secure your Mobile Marketing address • Engage with over 270 million mobile consumers • Deliver timely & informative content • Build targeted opt-in consumer databases
  • 10. ADVERTISING Agencies, brands prepare for mobile advertising clutter By Giselle Tsirulnik dvances in targeting, in- budgets across nearly all A creased browser and device capabilities, and richer met- rics are what will drive the mobile category ranges. In 2009 some of the largest advertising industry forward brands used mobile to reach their in 2010. target audience. Advertisers and publishers created mobile destina- In 2009 some of the largest brands tions, as mobile delivers perform- in entertainment, consumer pack- ance on brand impact, interaction aged goods, retail and telecommu- and conversion. nications integrated mobile advertising into their media plans. A vast developer community grew, Expect to see even more brands which propelled smartphone man- jumping onto the mobile advertis- ufacturers to quickly react to con- ing bandwagon in 2010. sumer demand, causing disruption in the device industry. “We are bullish on mobile adver- tising, as we’ve been year over And, when Google and Apple year since our inception in 2006,” said Mack McKelvey, vice chose to buy versus build a mobile ad network, it confirmed president of marketing at Millennial Media, Baltimore. “There that mobile is a distinct market from the wired Web, with an won’t be a year of mobile because mobile is here.” enormous opportunity for advertisers. In 2010 brands will integrate mobile into their media spend, New entrants as it was an effective and efficient medium to reach and en- Some expectations for 2010: gage consumers in 2009. • Rich media ad units will proliferate For example, automaker Honda's mobile banner advertising • Augmented reality will become popular campaign to promote the launch of the Insight hybrid model • Number of campaigns will increase achieved a click-through rate of 27 percent. Honda was able • More multichannel efforts will include mobile advertising to build a mobile database of interested consumers and drive • Mobile Web will become more cluttered with ads them to its mobile site via the mobile banners. • Metrics and measurement will become better • Consistency and screen issues will continue to be challenges Bigger budgets A Millennial Media study found that agencies and brands are “Entering into 2010, we already see huge demand from new confident in the mobile campaigns they execute. When asked entrants into mobile, as well as those advertisers who have whether their mobile campaigns met or exceeded expecta- run successful campaigns this year,” Ms. McKelvey said. “Ad- tions, 87 percent of agencies answered yes. vertisers will benefit from network buys that help them access more than 70 million unique users, with either precise or Additionally, 97.8 percent of agencies surveyed said that mo- broad targeting solutions. bile advertising is a valuable or indispensible part of the media plan, and all the brands felt the same. “There are numerous roles that mobile can play in advertisers’ overall media planning, several that no other medium can When probed for specifics, 25 percent of brands anticipate match,” she said. “In 2010, mobile will take its place as a spending less than $5 million on mobile advertising in 2010, prominent and permanent component of the digital up from 12.5 percent in 2009. Agencies expected increased media spend.” I PAGE 10 Mobile Marketer MOBILE OUTLOOK 2010
  • 11. Engage with your target audience wherever they go Innovative connections that deliver results Better advertising through science. Only Microsoft® Advertising connects brands to nearly half of the US wireless web audience with integrated experiences across mobile, PC and gaming. We’re driving extraordinary results for our advertisers by combining audience insights harnessed across multiple screens with the powerful reach of mobile MSN®, Bing™ and our unparalleled relationship with Verizon Wireless. Learn more. msftads.mobi | mobads@microsoft.com You dream it. We deliver it.
  • 12. BANKING AND PAYMENTS Financial institutions to embrace mobile services By Chris Harnick n 2010, consumers and financial institutions will become your mobile phone in the United States via Near Field Com- I even more comfortable with mobile banking and payments technology. munication, as chip-prices, handset turnover and point-of- sale build-out will continue to push the vision of buying a soda with your mobile phone to 2011 or 2012,” said Ron Hir- Consumers continue to adopt the son, cofounder and senior vice president of products and mar- services, but security is still an issue. keting at Boku, San Francisco. Mobile banking and payments will continue to give global access to un- Small businesses and merchants will continue to benefit from derbanked and unbanked consumers. services such as Verifone’s iPhone mobile credit card reader. “We believe the mobile banking and Last year saw smaller financial institutions such as Texas’ Frost payments industry is a massive mar- Bank and CU*Answers, a credit union organization, roll out David Schwartz, head of ket opportunity that has the poten- mobile banking services such as alerts. corporate and product tial to continue to take off in 2010,” marketing, Obopay said David Schwartz, head of corpo- Macrogrowth to micropayments rate and product marketing at Obopay, Redwood City, CA. It is obvious this sector is poised for growth, but will the car- riers continue to miss out? “Mobile technology is already impacting the banking industry, and in the area of payments we believe it can have transfor- The carrier networks do not want to become banks, but con- mational consequences for people of all economic back- sumers are using micropayment services for virtual goods and grounds,” he said. “Adding mobile payments to the mobile social networks. The huge response to SMS appeals for Haiti banking offerings in the market will do for mobile banking relief efforts are proof. what bill pay did for online banking. Obopay’s Mr. Schwartz said in 2010 one of the biggest chal- “Mobile banking will be a useful tool that people frequently lenges companies in this market face will be the adoption and take advantage of in their daily lives, and it provides banks increased use of micropayment services and keeping up with a sticky service to increase their customer satisfaction with demand. and reduce their churn. Mike Dulong, cofounder and Banking on mobile senior vice president of busi- The global mobile banking market will hit $202 billion by ness development at Billing 2012, per Edgar and Dunn. More consumers will use mobile Revolution, Seattle, said 2010 banking than online services by 2015, according to Mercatus. will be a period of explosive growth for the mobile Mercatus also found that banks can improve customer acquisi- commerce space. tion by 60 percent by including mobile in their suite of services. “Consumers will adopt mobile Given the growth the mobile banking and payments sector credit-card-based commerce has seen in 2009, more developments will be introduced as much more quickly than mar- the technology continues to improve. ket researchers have fore- casted — this is going to Near Field Communication use has slowly been growing na- move very quickly,” Mr. Du- tionwide, but do not expect consumers to fully embrace the long said. “Retailers will technology this year. scramble to create secure, commerce-enabled “This will not be the year for physical-world purchases using mobile stores.” I PAGE 12 Mobile Marketer MOBILE OUTLOOK 2010
  • 13. Download today! FREE White paper Increase your campaign ROI with mobile analytics www.bango.com/wp
  • 14. CARRIER NETWORKS Wireless carriers to ramp up on-deck advertising By Dan Butcher he biggest opportunity for wireless carriers in 2010 will “It should be part of every marketer’s integrated advertising T be to generate revenue by ramping up on-deck advertis- ing. If they do so, mobile advertising will experience an explosion. mix,” he said. One trend to look out for this year is the rise of emerging mar- kets. The sheer number of subscribers cannot be ignored. Carriers face many challenges, not the least of which is deal- ing with the double-edged sword of surging mobile Web “In 2010, we expect that in emerging markets, mobile operators, usage, which drives data revenues but at times pushes their who are under top-line pressure due to declining ARPU and in- networks beyond capacity, affecting the user experience neg- creasing customer churn, are going to aggressively pursue sub- atively. Carriers expect the upgrade to 4G networks—WiMax scriber data-driven marketing strategies to promote the right and LTE—to eventually solve those issues. products to the right customer segments at the right time,” said Vinod Vasudevan, CEO of Flytxt, Trivandrum, Kerala, India. “The increased acceptance and usage of smartphones, includ- ing the iPhone, combined with advertisers’ increased sophis- “They realize that acquiring more customers no longer guar- tication in using these devices to reach their customers, is antees higher revenue, as evident from third-quarter revenue something we’re very excited about and see as a growing reporting of Indian operators,” he said. “Focus will be on gen- trend,” said Greg McCastle, senior vice president of advanced erating incremental revenue from existing subscribers.” ad solutions at AT&T, Dallas. ROI proof “Mobile is becoming a line-item in marketing budgets—mobile In the end, it all comes down to measuring results and quan- advertising is now on the table and an integral part of the tifying return on investment. mix,” he said. “The outlook for 2010 is exciting.” “Be it in emerging or Western markets, the value of mobile Carriers want to avoid becoming a dumb pipe at all costs, and marketing will be fully appreciated only if operators have an they must diversify their revenue streams to compete. accurate method to track responses across channels and measure ROI,” Mr. Vasudevan said. Additionally, carriers have an unbelievable amount of sub- scriber data to offer brands in terms of targeting options. “Once operators are able to demonstrate the intrinsic value of mobile as a marketing channel, mobile advertising as in Provisioning bugbear third-party brands using mobile as a channel for their adver- There are issues that need to be resolved, for instance, short- tising will also take off in a big way,” he said. I ening the approval process for SMS short code provisioning— the long lag times have been a common gripe of marketers for a while. Vinod Vasudevan, CEO of Flytxt Carriers have started to cast a wider net out of necessity, tak- ing on the role of publisher and content provider, in addition to advertiser and network operator. While there are no shortage of challenges and issues that need to be faced, maybe the carriers are actually starting to get it. “Marketers need to engage with consumers the way they ob- tain and use information—that’s on the go,” Mr. McCastle said. “Mobile advertising is here. PAGE 14 Mobile Marketer MOBILE OUTLOOK 2010
  • 15. The most advanced ad management platform available for mobile. For Publishers A robust mobile ad serving, yield management, and repor ng solu on for owners of mobile content. Whether you sell your own adver sing, manage third party sellers - or both - MAST for Publishers can help you generate maximum yield. For Adver sers Manage your clients' mobile media campaigns across all mobile content and every network. From rich media and video to simple mobile banners, mOcean Mobile provides an intui ve real- me dashboard that ensures ease-of-use and ROI. For Networks U lize the mOcean Mobile pla orm to power your own mobile ad network. Ensure efficiency for your adver sers and maximized yield for your publishers, all under your own brand. For Apps By ad-enabling your mobile apps, you can generate new streams of revenue. Use our flexible APIs to deliver ads from our robust server network across any applica on, regardless of pla orm. Ready to ride the mobile marketing wave? For business and partnership inquiries, or to schedule a demonstration, please click here. mOceanMobile.com
  • 16. COMMERCE Mobile commerce to evolve consumer shopping habits By Giselle Tsirulnik xpect leading retailers to enter the mobile commerce Consumers are already used to making micropayments for E space in 2010 through click-to-buy advertising, SMS drivers and transaction- and shopping-friendly mobile sites and applications. ringtones and donations in times of crises, so the resistance to transacting on the phone will wear away with more use and confidence of transaction security. In 2009 big brands such as Polo Ralph Lauren launched appli- “2009 was definitely the year of mobile but what we find is cations and sites, turning the mobile medium into an addi- that a lot of retailers felt as if they needed to take off from tional sales channel. In 2010, smarter phones with more mobile in 2009 because of the economy,” said Nikki Baird, user-friendly Web browsing will move the needle for Denver-based managing partner at RSR Research. mobile commerce. “But consumer expectations are going to drive most of these “From our perspective, the suc- companies into the mobile commerce space in 2010,” she said. cess of mobile commerce will be “Expect to see a lot of the latecomers moving into the mobile dependent on the evolution of commerce space in the first half of 2010.” smartphone technology, the speed of the mobile Web, a richer In 2009, Polo Ralph Lauren, Tommy Hilfiger, Gilt Groupe and Web-like user experience, the American Eagle Outfitters entered mobile commerce. Target, convenience of one-click, stored- Amazon, eBay and Best Buy were among the leaders who ac- account checkout and a brand’s celerated their mobile efforts to provide a seamless willingness to invest in an exclu- shopping experience. sive, branded content experience, merchandising strategy and offer Bridging PC and store strategy,” said David Lauren, sen- In 2010, retailers and brands will employ mobile coupons, bar David Lauren, SVP of ior vice president of advertising, codes, product comparisons and user reviews to help con- advertising, marketing and marketing and corporate com- sumers make purchase decisions. corporate communications, munications at Polo Ralph Lau- Polo Ralph Lauren ren, New York. Brands and retailers will realize that mobile bar codes are an easy and measurable way to mobilize any traditional media “We expect to see a big trend toward more robust mobile CRM from print to packaging. The key to driving results is to give programs – a brand’s ability to leverage consumer data to the consumer something of value and communicate clearly drive relevant messages, products and offers to your mobile with a strong call-to-action. device,” he said. However, the limitations of screen size, device capability and Impulse purchase channel the user experience on mobile sites and applications will de- Without doubt, mobile commerce is going to change the way termine the growth trajectory of mobile commerce. Consumer that consumers shop in 2010 and beyond. expectations of digital media are high thanks to ecommerce. Impulse purchases and in-store price comparisons with mobile “The biggest challenge we see for mobile commerce is its in- commerce-enabled sites and applications will determine the ability to deliver a simple, Web-like user experience and the fate of multichannel retail this decade. technology behind most U.S. phones,” Mr. Lauren said. Mirroring ecommerce’s growth in the last decade, apparel and “The biggest opportunity for mobile in the near-term will ac- accessories, entertainment, books, music and travel will be tually be its ability to leverage customer data to successfully among the key sectors to migrate to mobile. Items that require bridge the digital commerce and physical retail experiences, steady replenishments are also good candidates for like its ability to influence multichannel commerce versus just mobile commerce. mobile commerce,” he said. I PAGE 16 Mobile Marketer MOBILE OUTLOOK 2010
  • 17. Simple Mobile Advertising mojiva.com info@mojiva.com 646-862-6201
  • 18. CONTENT Struggling to stand out in the mobile content arena By Chris Harnick s more applications stream into the various smartphone finally start making smartphones that are going to be really A marketplaces, the challenge for mobile discovery grows exponentially. revolutionary in every respect and, as a result, we’re likely to see a much more competitive and level playing field,” said Patrick Mork, vice president of marketing at GetJar, In 2010 companies and marketers San Mateo, CA. will continue to struggle to find their footing, making search ca- “The battle of the app stores will culminate in a dramatic pabilities all the more important. change to the market over the next 12-18 months,” he said. Now that major brands are get- ting into the game, discovery of Many application stores may fail because they will not have mobile content will be the solved the main issues of billing, discovery by consumers and trickiest issue. providing adequate return on investment for developers. “I think 2010 is going to be a Conquering the trinity great year for mobile content, In 2010, mobile marketers will need to attack the challenges particularly in the United States,” of reach, privacy and retention. Scott Dunlap, CEO, said Scott Dunlap, CEO of Near- NearbyNow byNow, Mountain View, CA. The dam will not break on mobile advertising until there are “Smartphones have reached crit- multiple vendors with a reach of more than 10 million users, ical mass, the tablet is changing the game and we’re seeing or the advertising industry begins to focus on personalized media and gaming companies responding with more mobile- messages optimized for conversion and engagement rather optimized content.” than reach. Mobile privacy is also going to be tested and refined. NearbyNow has developed numerous applications for various media companies including GQ and Seventeen. Most applications are abandoned within 60 days and mobile Web sites have a hard Because of the proliferation of applications and other mobile time retaining and content such as ringtones, content developers are finding it lengthening visits. easier to get paid for their work thanks to ad-supported mod- els and paid content. In 2010, there will be a struggle for eyeballs Sideliners will get nowhere as content and de- Media companies know the rules have changed. Standing on vices hit the market. the sidelines is no longer an option with Google and Apple aggressively investing in research and development. “My first advice to content developers “The level of innovation in mobile devices will be staggering would be start with in 2010 and the rate of adoption will be faster than ever,” the iPhone and iPod Mr. Dunlap said. touch,” Mr. Dunlap said. “It’s a great This will be the year of the handset. Manufacturers will focus platform, the user on features, design and other aspects based on the success of base is well aware of the iPhone. Devices will need more memory for more capacity how to download and because of the expanding content market. use apps, and it’s showing no signs “2010 is when we should expect handset manufacturers to of stopping.” I PAGE 18 Mobile Marketer MOBILE OUTLOOK 2010
  • 19. COUPONS Mobile coupons will make the cut for consumers By Jim Buckley he current economic climate has changed the spending use, SMS texting, smartphone T behavior of American consumers. As people adapt to re- cessionary times by cutting spending and tightening belts, a new type of consumerism has been born. adoption and mobile applications leveraging the promotional vehicle as part of a content offering. Top economists believe this shift to conservative spending is SMS text and MMS rich not a passing trend but will actually become the “new nor- media couponing mal,” much like the change that occurred in consumer spend- Harris Interactive conducted a ing after the Great Depression of the 1930s. survey and discovered that 42 percent of adults ages 18-34 and The ranks of Americans who state they have permanently re- 33 percent of 35-to-44-year- duced spending are continuing to rise, pointing toward a more olds are interested in getting frugal consumer environment once the current recession ends. opt-in mobile alerts from their Jim Buckley, new media favorite places. business owner at Valpak/ A June 2009 Business Wire survey showed that 20 percent of Cox Target Media Americans say they have cut back for good on spending. To The study also revealed that about 90 percent of mobile users capitalize on the demand for savings, businesses are increas- have made impulse purchases while shopping due to a sale, ingly using coupons as a promotional tool to maintain or in- with 22 percent of these shoppers doing so on a weekly basis. crease market share, attract consumers to their locations and introduce new products and services in this new economy. The findings of the study pose implications for advertisers as these businesses can build their database of consumer con- In addition to their attractiveness to consumers, coupon pro- tacts in the form of opt-in mobile numbers and additional in- motions are also winning favor with marketers who are being formation captured from registrations which can then be used held accountable to track and measure program effectiveness to advertise new products, specials and promotions. and demonstrate the return on investment for programs. To be successful in this space, a recent Valpak study of Echo The trackability of coupons helps marketers use their budget Boomers, also known as Generation Y or millennials, suggests dollars efficiently and with clear, tangible results at a time that adults ages 18-27 are extremely interested in mobile when ad spend is more closely scrutinized. marketing – but with some reservations. Beyond traditional print couponing, mobile couponing has When asked about mobile marketing in a Valpak-sponsored been growing along with other forms of digital coupons in- survey managed by Cox Enterprises Inc. and Communispace cluding emailed coupons, online coupon Web sites and even through its shared Project Echo program, respondents reported discount offers marketing by social media channels. some fear of disclosing their personal mobile number, handing strangers their mobile phone and the potential expense to According to Experian Simmons 2009, since last summer, the them if they are too heavily messaged. However, more than growth in digital coupons has increased markedly: some 44 half said they would be interested in receiving offers from million adults printed coupons from the Internet, which is a 21 businesses that they frequented or were of interest to them. percent increase from the same period last year. Study participants stated that dining and entertainment In 2010, Yankee Group expects the number of mobile coupons coupons were among their most preferred categories. Overall, redeemed in North America to rise tenfold, with triple-digit the quality of the text offer and its relevance to their lifestyle increases to follow in 2011 and 2012. were key to their satisfaction and willingness to participate in mobile marketing. Mobile couponing is on pace to continue to increase in distribution, use and redemption. This is largely due to the increase in Internet The challenges associated with both SMS and MMS PAGE 19 MOBILE OUTLOOK 2010
  • 20. (multimedia messaging service) couponing facing advertisers By tracking coupon use and redemption, as well as leveraging is how to reach consumers with their messages and offers. customer-provided preferences collected at registration, ad- vertisers can tailor their messaging to provide customers the Legal restrictions surrounding messaging can hinder busi- right offer, at the right time, at the right location. nesses, so a pull-strategy with double opt-in is the best prac- tice to avoid pushing unwanted messages to consumers. By measuring redemptions, businesses can monitor and track time-of-day and day-of-week to see peak use of the offer and Used in conjunction with a print ad campaign, getting the correlate that information to the success of an SMS pull campaign out to consumers has the added critical advertising campaign. advantage of an integrated media effort, which helps increase ROI and response result. Redemptions can also reveal promotional success by looking at upsells and cross-sells as a result of the coupon or offer. Mobile campaign challenges and opportunities The first challenge to any mobile messaging campaign is ob- SMS text message coupons will continue to grow in their taining mobile opt-ins. This can be achieved by leveraging a usage. But as more consumers adopt smartphones, the trend best-practice approach with pull campaigns and using common toward providing rich media coupons – electronic versions of marketing channels such as direct mail, print ads, point-of-sale print coupons, bar coding or video ads with offers – such as display and email messages. those provided with mobile applications will also continue to grow. Providing a targeted, com- pelling and relevant offer to a According to Scarborough Research, 8.6 million, or 8 percent, targeted audience which of U.S. households currently acquire coupons via text mes- clearly understands what mo- sages or email. bile messaging they will re- ceive and how often they will Whether businesses use SMS texts, MMS images or videos to receive it is the key to building provide coupons that incentivize consumers to make pur- a qualified and receptive opt- chases at their locations, mobile couponing is here to stay. in mobile database. But perhaps the most important aspect is that businesses can learn more about their customers to develop loyalty programs Budget and frequency are po- based on customer-provided information and track response tential challenges when it and redemptions associated with mobile coupons. comes to planning. In short, it is best to expect the unexpected. Mobile application growth Market research firm IDC projects the number of applications It is critical to consider the for the iPhone will nearly triple to an estimated 300,000 by number of customers and mes- the end of 2010 and that there will be 50,000 to 75,000 saging frequency when there is a limited budget for Google Android applications, up from 17,000 in 2009. SMS/MMS messaging. And if businesses are paying for each response with a double opt-in, they must be sure to budget for Mobile coupon applications should see similar growth rates a better-than-expected response. as retailers and other industries look to reach consumers closer to the point of sale. These issues should be planned for in advance by the media firm, agency or messaging service provider, which should pro- Location-based services (LBS) use GPS to serve consumers vide an adequate estimate of response and thus help with po- coupons, offers and discounts within a given location and are tential staffing, product and service delivery and other a logical fit for businesses looking to increase their advertising planning issues. reach and target consumers with intent-to-purchase behavior. PAGE 20 Mobile Marketer MOBILE OUTLOOK 2010
  • 21. Mobile coupon applications that use U.S. smartphone adoption increased 63 percent to more than geotargeting are an effective way for 33 million users and touch-screen mobile phone adoption businesses of all sizes to promote their grew 159 percent to 23.8 million users in August 2009 from products and services to consumers the year-ago period. looking to save at their favorite stores. Media buyers are using mobile advertising more, as it is inter- Mobile applications featuring coupon active and allows them to do more with less. content have the added advantage of being able to track when and where of- BIA/Kelsey predicts that mobile local search ad revenues will fers are searched for, served up, viewed grow to $130 million by 2013, and that mobile local searches and redeemed. will increase to 35 percent of all searches by 2013. The mobile application market is currently highly fragmented More companies are leveraging mobile couponing as a vehicle and is complicated by a combination of closed and open for engaging consumers, given that they are highly desired in- source mobile operating systems, device-dependent systems centives that drive transactions at the point of sale. and applications, and wireless carrier rules and control desires. According to a November 2009 Juniper Research study, the Many other mobile applications will increasingly incorporate availability and convenience of digital coupons are attracting coupon content as a content value-add as platforms become a newer and younger base of consumers, many of whom use more open. Twitter, Facebook and other forms of social media. In the future, as mobile coupon, discount and offer data feeds These trends are expected to contribute to a projected 300 are implemented across open platforms, these data pushes million global coupon users, who will generate close to $6 bil- will help drive the growth in mobile applications. lion globally in retail redemption value by 2014. Coupon clickers The outlook for mobile couponing is bright due to the new According to a December 2009 Borrell Associates study, some economy, growing consumer demand for mobile coupons, the 400 billion coupons will have been distributed nationwide in increased availability of mobile messaging platforms and 2009, with a 2 percent average redemption totaling $40 bil- emerging technological trends. lion in consumer savings – $87 million of that from mobile couponing – and resulting total purchases exceeding that As more rich media applications such as Adobe Flash – pro- value by a large factor. jected to be supported on most smartphones by the third quarter of 2010 – are distributed, and the number of open The increase in coupon use will likely outlast the economic source operating systems such as Android increases to facili- downturn as marketers gain a deeper understanding of how tate mobile application development, technology and com- coupons affect shopping behavior and as more companies munications innovations will undoubtedly increase the learn how to successfully employ them. application and use of mobile coupons. Local businesses are embracing coupons this year, with the Also aiding in the growing acceptance of mobile coupons is value of their coupons jumping more than 50 percent, accord- the role of broadband 4G/LTE wireless networks deployed to ing to Borrell Associates. support HD video, gaming and more powerful mobile applica- tions. Expect mobile coupons to grow at a fast clip. I Consumers are interacting more with mobile marketing as they learn their phone capabilities and acquire newer technology. Jim Buckley is new media business owner at Valpak/Cox Target In November 2009, a comScore MobiLens study revealed that Media, Largo, FL. Reach him at jim_buckley@valpak.com. PAGE 21 Mobile Marketer MOBILE OUTLOOK 2010
  • 22. DATABASE/CRM Mobile database/CRM initiatives to help drive sales By Dan Butcher rands large and small are using the mobile channel as Despite fast growth in the space, there will be challenges. B a customer relationship management tool to build their opt-in database and inspire consumer loyalty, and that trend will increase exponentially in 2010. Retailers with a trusted brand and pre-existing relationships with consumers will have an advantage over lesser- known brands. When used properly, mobile enhances the database/CRM ini- tiatives of every business sector, from consumer packaged Businesses and consumers are still going to have trust and se- goods, food-and-beverage and hospitality companies to big- curity concerns about opting into mobile marketing and mo- box retailers, sports teams and high-fashion labels. bile payment programs. “We expect to see mobile marketing and mobile commerce First and foremost, marketers must follow the Mobile Mar- continue to grow in importance and adoption as retailers keting Association’s best practices to make sure their mes- focus on their most loyal customers and sages are not perceived as spam. stickiness,” said Kevin Grieve, CEO of Moca- pay, Denver. “The industry experts are pre- Another challenge is to understand ROI, dicting mobile commerce and SMS which typically means some level of inte- marketing are going to take off in 2010, and gration with the point of sale during con- given our own indicators, we do too.” sumer redemption of an offer. Database-building and CRM are two essen- “A challenge will come from how to migrate tial aspects of marketing, and both fit nat- a customer from a one-time mobile market- urally with the mobile medium. When ing campaign to an ongoing relationship,” executed properly, database/CRM initiatives Mr. Grieve said. “This can be accomplished drive sales in a big way. by rewarding profitable consumer behavior with incentives, which can easily be Mobile CRM tactics range from asking con- wrapped into their loyalty program.” sumers to opt-in to an SMS club via a key- word and a short code to receive promotions Consumer control and alerts, mobile coupons and virtual mo- To overcome these challenges, marketers bile loyalty cards, which are often associ- need to make sure they put control into the ated with VIP clubs or frequent-buyer programs. consumers’ hands — allow them to adjust the frequency of messages that they receive from the retailer or brand. Loyalty plays So what are the vital components of a multichannel data- As a direct channel that people opt into, marketers must be base/CRM strategy? The answer is seamless integration across sensitive to their mobile messages so they are not wearing each channel and consistent consumer experience. out their welcome to the point where a customer chooses to opt out. Marketers must avoid making mobile an island or standalone medium. Make mobile part of the overall marketing mix. It is Marketers need to make sure the providers they work with are also important integrate mobile with a brand’s social focused on the end-consumer experience. media strategy. “Consider what reporting will you receive, how often can you Another tried-and-true piece of advice is to keep it simple for touch the customer and what innovative services can you add consumers, especially when it comes to database registration into the mix to build and retain customers to ultimately in- and redemption of coupons. crease your sales,” Mr. Grieve said. I PAGE 22 Mobile Marketer MOBILE OUTLOOK 2010
  • 23. EMAIL Email marketers to focus more on the small screen By Dan Butcher rands and marketers will be more focussed on mobile- Marketers need to consider whether their customers are read- B optimizing their email campaigns in 2010. This will ensure better customer experiences and higher response rates. ing emails on a smartphone. Additionally, the device and op- erating system of choice is also important to know. A Radicati Group study found Based on that, marketers need to figure out if their email cam- that 139 million people around paigns are designed to look well and perform well on the the world accessed email via their small screen. handhelds in 2009 and this num- ber is going to grow to more than “By always being on, and with the customer, mobile is rein- 1 billion users by 2013. With mo- venting email as the killer app,” said Deirdre Baird, bile phone owners outnumbering president/CEO of Pivotal Veracity, Phoenix. “Marketers who PC owners four to one, marketers leverage the efficiency and convenience afforded to con- that do not mobile-optimize sumers by mobile email will be able to use the channel to drive emails will be left in the dust. significant incremental Web and in-store sales. Deborah Hall, managing director, Web2Mobile “The mobile email space is keep- “The time to optimize email campaigns for mobile devices is ing pace with the explosive now — both in terms of design and the customer experience,” growth of mobile Web browsing,” said Deborah Hall, manag- she said. ing director at Web2Mobile, Toronto. More marketers are expected to identify mobile users and im- “The first companies that em- plement mobile email marketing de- brace optimizing their content for sign and coding best practices. mobile will not only improve the performance of their communica- Smart email tions, but also gain insight as to Many marketers in the space believe what platforms users are con- that mobile has the ability to over- suming content on their sites — come the difficulties facing PC-cen- Research In Motion, iPhone and tric email marketing. Android,” she said. “We at Yesmail are optimistic that Measurement is important be- mobile email adoption will only in- cause analytics that tell mar- crease in the coming year,” said keters what devices are visiting Manny Ju, director of product man- these properties help to shape a agement at Yesmail, Portland, OR. strategy for application “All industry studies have shown that platform choices. reading of email remains among the top data usages of smartphones. Email is killer app When 80 percent of the traffic to “As the market for smartphones con- an email newsletter comes from tinues to expand worldwide, we see iPhone devices, it might make the importance of marketers to sense to optimize for this plat- properly address mobile email not form and look at building an only in terms of screen layout, but iPhone application or iPhone- also in terms of timeliness of offer,” friendly Web presence. he said. I PAGE 23 Mobile Marketer MOBILE OUTLOOK 2010
  • 24.
  • 25. GAMING Monetization strategy key issue for game developers By Chris Harnick he mobile gaming sector, dominated by the Apple iPhone in Playstation’s parent company Sony has gotten into the mobile T 2009, will continue to battle its biggest problem in 2010: monetization. gaming application arena with various properties, but Nin- tendo is nowhere to be seen. There is no Super Mario Brothers application for the iPhone. The iPhone changed the face of mobile gaming with applica- tions from brands such as Volkswagen and video game man- As devices gain in popularity and capabilities, could they even- ufactures including Electronic Arts. But the question for many tually act as the video game system controller? Not in 2010, still remains: Do consumers prefer free, ad-supported games but it is a possibility. or pay-per-download? Stepping up to the plate “Without a doubt 2010 will be a rocket ship for mobile gaming Greystripe said 2010 is already starting off with a bang. It has and we will see the continued growth of mobile gaming com- seen first-quarter bookings grow even after the holiday sea- panies that nail the platform and user experience,” said son. More brands are recognizing the space, especially mobile Michael Chang, founder/CEO of Greystripe, San Francisco. games, and budgets are reflecting it. “All through 2009 we saw thousands of developers jump into Growth comes from fundamentals such as more brands allo- mobile with incredible innovation,” he said. “Hit games like cating online and traditional media budgets into mobile. Tower Bloxx 3D by Digital Chocolate, Sheep Launcher by Kro- nos and Tower Madness by Limbic were both simple and Mr. Chang said companies hugely addictive. in the industry should be looking at convergence “Gaming will be the tip of the spear for broader app genres strategies in 2010. and content types in mobile.” As mobile joins with on- Greystripe is a mobile ad network and game developer. line, companies that just think of themselves as Brands in-hand pure mobile advertising In 2009, Electronic Arts’ EA Games division launched mobile services are going to be versions of several well-known games such as Connect 4 in trouble. and Monopoly. “Mobile advertising has fi- Paid game applications that acted as brand extensions dom- nally become about buying inated the charts of Apple’s App Store. an audience and delivering rich media,” Mr. Chang In 2009 movie studios used the mobile gaming space to mar- said. “Greystripe’s opportu- ket films with both paid and free applications and that trend nity in 2010 is that we can will continue as more entertainment entities go mobile to demonstrate to brands promote properties. that mobile advertising can be more effective and EA and fellow game publisher Glu Mobile will continue to engaging than their online cannibalize the demographic, but where are the traditional media buys. video game big players such as Microsoft and Nintendo? “Mobile advertising is a Sony has the Playstation Portable and Nintendo has the Nin- huge opportunity for brand tendo DSi, but Microsoft is missing from the dedicated hand- advertising,” he said. “2010 held gaming device world. is looking bright.” I PAGE 25 Mobile Marketer MOBILE OUTLOOK 2010
  • 26. INTERNATIONAL A global snapshot of mobile marketing’s evolution By Draftfcb he world will be a more hospitable place for mobile ad- High-speed mobile broadband coverage has also been ex- T vertising, marketing, media and commerce in 2010. The reasons are obvious: better handsets, more affordable data plans, wireless carrier efforts and growing marketer ac- panded to many regional centers in Australia. In 2009 there were roughly 25 million mobile subscriptions in ceptance of evolving consumer behavior on the go. Australia for a population of around 22 million individuals. The country’s mobile industry roughly generated $15.5 billion Challenges remain, as this international sweep of the outlook in revenue in 2009, and a stronger infrastructure for mobile for mobile will show. But that is only expected as mobile finds has meant mobile media has continued to grow. a place on the marketing table, with the requisite elbowing from skeptics. With iPhones now offered by all major network providers and retailers in the Australian market, the uptake of the device To create a snapshot of the current mobile scene around the has been swift and will continue. world, select experts in advertising agency Draftfcb’s global network offered perspectives on the current and expected Users are becoming accustomed to 3G services and content state of mobile advertising, marketing, media and commerce and downloading iPhone applications, with many local brands in their respective markets. The questions asked included: now producing applications for their product or service. • What is the state of mobile marketing and media in Official figures show that 45 percent of phone owners have your market? 3G-enabled phones. Over half use their mobile phone to get • Are consumers receptive to mobile advertising information at least once a month and 51 percent use it to and marketing? source entertainment content. • What are the local challenges for mobile marketing, media and commerce? There are growing opportunities for brands to provide branded • What is next for mobile in your country? content around search. Here are responses from Draftfcb executives in key markets That said, one-third of 3G handset users type URLs directly in engaged in mobile advertising, marketing, media and com- to the phone browser with maps being the main information merce. Thank-you to the Draftfcb executives for their time they seek. This all points to huge opportunities for clients to and insight. – Mickey Alam Khan integrate mobile marketing into their campaign activity as people become more comfortable with using their mobile phone to seek information. Figures show 50 percent of users purchased content for their mobile phones in the last 12 months. Browsing the mobile Internet from a handset is in its infancy in Australia relative to other advanced economies, but 3G handset uptake in the last 12 months is growing – now at AUSTRALIA around 60 percent of users – and mobile browsing and mobile Alex Roper content will soon be an expectation for most mobile Head of digital & direct users here. Draftfcb Melbourne Network providers are seeing the trend and are making data Major mobile services providers have recently completed up- packages more affordable – one-third of users now have data grades to their mobile networks based on High Speed Packet included in their plan – to win customers over after making Access (HSPA) technologies. data packages unaffordable for some time. PAGE 26 Mobile Marketer MOBILE OUTLOOK 2010
  • 27. Overall, there has been an increase in the acceptance of ad- percent are using their phone solely for its talk capabilities. vertising on mobile devices since 2007 and the numbers are SMS, videos, photos, music, Internet surfing, emailing and set to continue upward. even paying with the mobile device is becoming much more common. Users of mobile devices are happy to receive advertising in ex- change for free mobile content or special offers. It is very In a few instances, performance-based mobile marketing has much about a fair exchange with brands. Users want some- been very successful and is beginning to influence thing of value if marketers are going to contact them on their traditional thinkers. personal communication device. Consumers in Austria have become very receptive to mobile The primary challenge for mobile marketing is in competing advertising and marketing, especially if marketers are able to with the Internet and television, both which continue to be provide them with an added value through special promotions. the primary portals for information. Austria’s digital market seems to be behind other international With users still coming to terms with relying on their handsets markets and, therefore, it will take more time to increase the to conduct many of the day-to-day tasks they still assign to awareness of the importance and impact of mobile the Internet, mobile marketing must still gain traction marketing investments. in Australia. Meanwhile, due to the rise of smartphones and iPhones pro- As more key information, banking and news sites become op- moted through very attractive provider packages, an increase timized for mobile, it will become an increasingly effective in mobile applications and mobile data traffic can be expected channel for marketers. And the outlook is extremely positive. in the coming months. Although mobile service subscription rates are now between 110 percent and 115 percent of the population, growth is likely to continue for the foreseeable future. Australian carriers are likely to have more than 25 million mo- bile subscribers in 2011 as migration and business adoption continue to drive these figures. BRITAIN Leo Ryan Planning director for digital Draftfcb London The state of mobile marketing and media in Britain could best be described as “developing.” Despite years of interest and enthusiasm, it is really only the AUSTRIA recent advent of all-you-can-eat data plans that has made Florian Zelmanovics-Perl mobile affordable for consumers to access the Web regularly Chief operating officer and for longer periods of time. Draftfcb Partners Consumer reception levels seem to reflect those of other There are 10.68 million mobile users in Austria and a mere 4 media. Banners receive low click-through rates, but surely that PAGE 27 Mobile Marketer MOBILE OUTLOOK 2010