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The PPC People




Harnessing the power of mobile

by Sri Sharma
Managing Director, Net Media Planet




                                                   Paid Search Marketing
                                       Display & Social Media Advertising
                                      Multi-Channel Tracking & Attribution
The PPC People




    About the author
    Sri Sharma Managing Director

    Sri Sharma is the Founder and Managing Director of Net
    Media Planet. A specialist in maximising the potential of
    online marketing, Sri has helped clients including HSBC,
    P&O Ferries, The Perfume Shop and Evans (part of the
    Arcadia Group) to drive a step change in their online
    efforts with significant impact on their bottom line.


    Under Sri’s leadership Net Media Planet has received
    numerous industry accolades. Most notably, Net Media
    Planet has been listed in The Sunday Times Tech Track
    100, the Deloitte Fast 50, and the Deloitte Fast 500. The company currently helps its clients to
    generate revenues of over £100 million annually.


    Sri is a highly respected PPC specialist in the industry, and has spoken at a number of conferences
    all over the world, including Internet World, Search Engine Strategies and the Online Marketing
    Show. He has also stood alongside brands such as Yahoo! and Bing on speaker panels. In the
    industry he is renowned for the outstanding levels of customer retention he has driven at Net
    Media Planet. He recently won highly commended Entrepreneur of the Year at the National
    Business Awards.




2
                                                                                © 2012 Net Media Planet
The PPC People



With 46% (26.4million) of all phones in the UK now smart-phones and mobile revenue continuing
to grow at an exponential rate, the need to invest in mobile is clear. What brands don’t yet fully
understand is how to harness this new channel.


The fundamental issue is that consumers are no longer guaranteed to be in a specific location
when they engage with brands and brands don’t understand how location alters consumer
behaviour. This is most evident when we examine the three types of mobile consumer that
brands look to try and target - the consumer on the move, at home and in-store.


However, whilst brands don’t yet understand the impact of location on consumer behaviour,
they do know the three basic consumer demands of mobile:
   Simplicity - a simple experience that works for them
   Immediacy - instant access to the information they are looking for
   Context - relevancy to who they are, where they are, and what they are looking for

Understanding these needs is the first step towards understanding how consumer behaviour
alters when on the move, at home and in-store, as Papa John’s Pizza discovered.


The first step to going mobile - targeting consumers
on the move
The mobile consumer on the move is typically a commuter that uses mobile whilst travelling, to
check emails, search for items of interest or make simple purchases. The most prevalent type
of mobile consumer, they are the ideal initial target for brands looking to build mobile into their
strategy.


Papa John’s Pizza, the UK’s third largest pizza chain and a Net Media Planet client, did just this.


                                 With a core objective of improving bottom line profit, Papa John’s
 Targeting customers at
 their hungriest                 challenged Net Media Planet to develop a strategy that moved
                                 it away from discounting without damaging its sales volumes.


                                 A fundamental element of the strategy Net Media Planet
                                 developed was to target consumers when they were hungriest,
                                 as price was less important when consumers were hungry.


                                 Research revealed that the peak times for consumers to be
                                 swayed by hunger rather than price were between 6.30 and
                                 7.30pm (when on their commute home) and between 10.30 and
                                 11.30pm (when on their journey home from the pub) - both times
                                 when consumers can only be contacted by mobile. Mobile was
                                 therefore a crucial part of reaching consumers at their hungriest.




                                                                                                        3
Harnessing the power of mobile
The PPC People



    With discounting so ingrained into consumers, there was a concern that not offering a discount
    would impact on conversion rates, and therefore sales. To counter this, Net Media Planet
    proposed a campaign focused on increasing average order values by creating messaging with
    appetite appeal.


    To increase average order value, Net Media Planet focused on generating sales of sides and
    desserts.


    To make the desserts and sides appealing to consumers, Net Media Planet looked to replicate
    a restaurant specials board - using messaging focused on the taste rather than the price. Each
    phrase was generated in a series of creative workshops where Net Media Planet’s copywriters
    and analysts tested the products, so Net Media Planet was confident the messages would work.
    The results however, exceeded expectations.


    After just three months, Papa John’s saw:
        mobile revenue per click increase by 48%
        profit per pound spent increase by 139%
        average order value increase by 13%

    As the Papa John’s case study shows, targeting consumers on the move can be very lucrative
    for brands. The mobile consumer at home is also a lucrative market, not least because they tend
    to be tablet users.


    When the mobile consumer isn’t mobile
    From our work across our retail client-base, we know 55% of all sales on tablets happen between
    6pm and 8am (see graph below). Consumers are more likely to be at home rather than on the
    move at this time. This begs the questions of whether consumers on tablets are truly mobile.


     Sales on Tablet devices - by time of day

         100%




    Indexed




            0%
                 0   2     4     6    8     10    12     14   16   18   20   22   24
                                                 Hours
    Source: Net Media Planet - Retail clients, Q4 2011




4
                                                                                       © 2012 Net Media Planet
The PPC People



Additional research from Google shows that tablet users are also typically multitaskers; 42% are
doing something else whilst searching on mobile (typically watching TV). This makes them more
distractible. Indeed, as the graphs below show, tablet users are far more likely to only click on
only the top two positions of the search results.


 CTR by Average position - Tablet                        CTR by Average position - Desktop
                  CTR by Average position - Tablet                          CTR by Average position - Desktop
                                                                60.0%
      60.0%
                                                                40.0%
      40.0%
CTR                                                    CTR
      20.0%                                                     20.0%

      0.0%                                                      0.0%
              1    1.5    2   2.5 3   3.5 4   4.5 5                     1          2        3       4               5
                         Average position                                          Average position

Source: Net Media Planet - Retail and Travel clients, Q4 2011


It is now possible to identify and target customers using tablets at home rather than on
the move.


Google has recently launched a new feature that enables brands to target only those consumers
whose tablets are connected via Wi-Fi rather than a mobile network. And, as it is reasonable to
assume that a tablet user on Wi-Fi between 6pm and 8am is at home, this gives brands the
opportunity to specifically target the consumer at home.


The fact that the mobile consumer at home is often a tablet user also gives brands a great
opportunity to look to increase average order values. Indeed the tablet is often a secondary or
tertiary device in the consumer’s home, suggesting an affluence that can be tapped into with
carefully targeted campaigns. Tablet penetration may not be at the level of smartphones yet but
brands shouldn’t ignore the potential here.


Taking mobile a step further - how to harness mobile
customers on the high street
With more than 50% of smartphone users now using their mobiles on the high street to find
store locations, check prices and search for reviews, mobile can play a pivotal role in driving
high-street sales.


In the build up to Christmas, The Perfume Shop - the UK’s second largest perfume retailer,
tasked Net Media Planet with driving awareness of and footfall to its 250 stores nationwide.




                                                                                                                        5
Harnessing the power of mobile
The PPC People



                                                           To achieve this, Net Media Planet developed a
     Using mobile to drive local store
     awareness                                             programme to target consumers that were no more than
                                                           10 miles away from one of the retailer’s stores.


                                                           Using the new Proximity bidding tool from Google
                                                           and specific local messaging, including directions to
                                                           the nearest store, Net Media Planet was able to boost
                                                           visibility of The Perfume Shop’s adverts by 60% as soon
                                                           as consumers entered the 10 mile radius.


                                                           The   increase   in   visibility   significantly     increased
                                                           awareness of local stores and footfall. It also had
                                                           a positive impact on The Perfume Shop’s mobile
                                                           performance:
      10 mile radius of The Perfume Shop store locations   � Mobile traffic increased by 76%
                                                           � Mobile revenue increased by 17%


    Mobile must drive value in its own right but should be
    part of a wider strategy
    As The Perfume Shop case study illustrates, whilst mobile must drive value in its own right,
    brands should also use mobile to integrate all of their marketing channels. Indeed, it is mobile’s
    potential to act as a bridge between online and offline that makes it potentially the most valuable
    channel over the next five years.




          High Street                                         Mobile                                 Online


    New technology offerings, such as Google Offers and Google Wallet, are being developed to
    enable brands to measure traffic in-store that originated online. These will be pivotal in making
    mobile a strategic channel for brands as they will effectively enable marketers to achieve the
    joined up approach that has been, and continues to be, the nirvana for marketing.


    The brands that invest time and resources in using mobile as the centre piece of an integrated
    channel now will be the ones that get ahead and stay ahead as mobile evolves.




6
                                                                                                © 2012 Net Media Planet
The PPC People




About Net Media Planet
Net Media Planet is an award winning dedicated paid search marketing agency. Its sole aim is to
help ambitious clients maximise the potential of their online marketing.


Based out of London, UK, Net Media Planet works with clients spanning numerous sectors
including retail, travel and finance. These clients include HSBC, P&O Ferries, The Perfume
Shop and Evans (part of the Arcadia Group). It currently operates across 55 countries in over
30 languages and generates revenues for its clients of over £100 million annually.


Since launching in 2004, Net Media Planet has received numerous industry accolades. Most
notably, Net Media Planet has been listed in The Sunday Times Tech Track 100, the Deloitte Fast
50, and received a commendation in the National Business Awards, South England.


For further information:

Tel: 	   0870 295 1126
Email: 	 sri@netmediaplanet.com
Web: 	 www.netmediaplanet.com




                                                                                                      7
Harnessing the power of mobile
Clover House, 147-149 Farringdon Road, London EC1R 3HN

T. 0870 295 1126
E. info@netmediaplanet.com

www.netmediaplanet.com

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Harnessing The Power Of Mobile From Net Media Planet

  • 1. The PPC People Harnessing the power of mobile by Sri Sharma Managing Director, Net Media Planet Paid Search Marketing Display & Social Media Advertising Multi-Channel Tracking & Attribution
  • 2. The PPC People About the author Sri Sharma Managing Director Sri Sharma is the Founder and Managing Director of Net Media Planet. A specialist in maximising the potential of online marketing, Sri has helped clients including HSBC, P&O Ferries, The Perfume Shop and Evans (part of the Arcadia Group) to drive a step change in their online efforts with significant impact on their bottom line. Under Sri’s leadership Net Media Planet has received numerous industry accolades. Most notably, Net Media Planet has been listed in The Sunday Times Tech Track 100, the Deloitte Fast 50, and the Deloitte Fast 500. The company currently helps its clients to generate revenues of over £100 million annually. Sri is a highly respected PPC specialist in the industry, and has spoken at a number of conferences all over the world, including Internet World, Search Engine Strategies and the Online Marketing Show. He has also stood alongside brands such as Yahoo! and Bing on speaker panels. In the industry he is renowned for the outstanding levels of customer retention he has driven at Net Media Planet. He recently won highly commended Entrepreneur of the Year at the National Business Awards. 2 © 2012 Net Media Planet
  • 3. The PPC People With 46% (26.4million) of all phones in the UK now smart-phones and mobile revenue continuing to grow at an exponential rate, the need to invest in mobile is clear. What brands don’t yet fully understand is how to harness this new channel. The fundamental issue is that consumers are no longer guaranteed to be in a specific location when they engage with brands and brands don’t understand how location alters consumer behaviour. This is most evident when we examine the three types of mobile consumer that brands look to try and target - the consumer on the move, at home and in-store. However, whilst brands don’t yet understand the impact of location on consumer behaviour, they do know the three basic consumer demands of mobile: Simplicity - a simple experience that works for them Immediacy - instant access to the information they are looking for Context - relevancy to who they are, where they are, and what they are looking for Understanding these needs is the first step towards understanding how consumer behaviour alters when on the move, at home and in-store, as Papa John’s Pizza discovered. The first step to going mobile - targeting consumers on the move The mobile consumer on the move is typically a commuter that uses mobile whilst travelling, to check emails, search for items of interest or make simple purchases. The most prevalent type of mobile consumer, they are the ideal initial target for brands looking to build mobile into their strategy. Papa John’s Pizza, the UK’s third largest pizza chain and a Net Media Planet client, did just this. With a core objective of improving bottom line profit, Papa John’s Targeting customers at their hungriest challenged Net Media Planet to develop a strategy that moved it away from discounting without damaging its sales volumes. A fundamental element of the strategy Net Media Planet developed was to target consumers when they were hungriest, as price was less important when consumers were hungry. Research revealed that the peak times for consumers to be swayed by hunger rather than price were between 6.30 and 7.30pm (when on their commute home) and between 10.30 and 11.30pm (when on their journey home from the pub) - both times when consumers can only be contacted by mobile. Mobile was therefore a crucial part of reaching consumers at their hungriest. 3 Harnessing the power of mobile
  • 4. The PPC People With discounting so ingrained into consumers, there was a concern that not offering a discount would impact on conversion rates, and therefore sales. To counter this, Net Media Planet proposed a campaign focused on increasing average order values by creating messaging with appetite appeal. To increase average order value, Net Media Planet focused on generating sales of sides and desserts. To make the desserts and sides appealing to consumers, Net Media Planet looked to replicate a restaurant specials board - using messaging focused on the taste rather than the price. Each phrase was generated in a series of creative workshops where Net Media Planet’s copywriters and analysts tested the products, so Net Media Planet was confident the messages would work. The results however, exceeded expectations. After just three months, Papa John’s saw: mobile revenue per click increase by 48% profit per pound spent increase by 139% average order value increase by 13% As the Papa John’s case study shows, targeting consumers on the move can be very lucrative for brands. The mobile consumer at home is also a lucrative market, not least because they tend to be tablet users. When the mobile consumer isn’t mobile From our work across our retail client-base, we know 55% of all sales on tablets happen between 6pm and 8am (see graph below). Consumers are more likely to be at home rather than on the move at this time. This begs the questions of whether consumers on tablets are truly mobile. Sales on Tablet devices - by time of day 100% Indexed 0% 0 2 4 6 8 10 12 14 16 18 20 22 24 Hours Source: Net Media Planet - Retail clients, Q4 2011 4 © 2012 Net Media Planet
  • 5. The PPC People Additional research from Google shows that tablet users are also typically multitaskers; 42% are doing something else whilst searching on mobile (typically watching TV). This makes them more distractible. Indeed, as the graphs below show, tablet users are far more likely to only click on only the top two positions of the search results. CTR by Average position - Tablet CTR by Average position - Desktop CTR by Average position - Tablet CTR by Average position - Desktop 60.0% 60.0% 40.0% 40.0% CTR CTR 20.0% 20.0% 0.0% 0.0% 1 1.5 2 2.5 3 3.5 4 4.5 5 1 2 3 4 5 Average position Average position Source: Net Media Planet - Retail and Travel clients, Q4 2011 It is now possible to identify and target customers using tablets at home rather than on the move. Google has recently launched a new feature that enables brands to target only those consumers whose tablets are connected via Wi-Fi rather than a mobile network. And, as it is reasonable to assume that a tablet user on Wi-Fi between 6pm and 8am is at home, this gives brands the opportunity to specifically target the consumer at home. The fact that the mobile consumer at home is often a tablet user also gives brands a great opportunity to look to increase average order values. Indeed the tablet is often a secondary or tertiary device in the consumer’s home, suggesting an affluence that can be tapped into with carefully targeted campaigns. Tablet penetration may not be at the level of smartphones yet but brands shouldn’t ignore the potential here. Taking mobile a step further - how to harness mobile customers on the high street With more than 50% of smartphone users now using their mobiles on the high street to find store locations, check prices and search for reviews, mobile can play a pivotal role in driving high-street sales. In the build up to Christmas, The Perfume Shop - the UK’s second largest perfume retailer, tasked Net Media Planet with driving awareness of and footfall to its 250 stores nationwide. 5 Harnessing the power of mobile
  • 6. The PPC People To achieve this, Net Media Planet developed a Using mobile to drive local store awareness programme to target consumers that were no more than 10 miles away from one of the retailer’s stores. Using the new Proximity bidding tool from Google and specific local messaging, including directions to the nearest store, Net Media Planet was able to boost visibility of The Perfume Shop’s adverts by 60% as soon as consumers entered the 10 mile radius. The increase in visibility significantly increased awareness of local stores and footfall. It also had a positive impact on The Perfume Shop’s mobile performance: 10 mile radius of The Perfume Shop store locations � Mobile traffic increased by 76% � Mobile revenue increased by 17% Mobile must drive value in its own right but should be part of a wider strategy As The Perfume Shop case study illustrates, whilst mobile must drive value in its own right, brands should also use mobile to integrate all of their marketing channels. Indeed, it is mobile’s potential to act as a bridge between online and offline that makes it potentially the most valuable channel over the next five years. High Street Mobile Online New technology offerings, such as Google Offers and Google Wallet, are being developed to enable brands to measure traffic in-store that originated online. These will be pivotal in making mobile a strategic channel for brands as they will effectively enable marketers to achieve the joined up approach that has been, and continues to be, the nirvana for marketing. The brands that invest time and resources in using mobile as the centre piece of an integrated channel now will be the ones that get ahead and stay ahead as mobile evolves. 6 © 2012 Net Media Planet
  • 7. The PPC People About Net Media Planet Net Media Planet is an award winning dedicated paid search marketing agency. Its sole aim is to help ambitious clients maximise the potential of their online marketing. Based out of London, UK, Net Media Planet works with clients spanning numerous sectors including retail, travel and finance. These clients include HSBC, P&O Ferries, The Perfume Shop and Evans (part of the Arcadia Group). It currently operates across 55 countries in over 30 languages and generates revenues for its clients of over £100 million annually. Since launching in 2004, Net Media Planet has received numerous industry accolades. Most notably, Net Media Planet has been listed in The Sunday Times Tech Track 100, the Deloitte Fast 50, and received a commendation in the National Business Awards, South England. For further information: Tel: 0870 295 1126 Email: sri@netmediaplanet.com Web: www.netmediaplanet.com 7 Harnessing the power of mobile
  • 8. Clover House, 147-149 Farringdon Road, London EC1R 3HN T. 0870 295 1126 E. info@netmediaplanet.com www.netmediaplanet.com