The power of mobile marketing

1. The Power of Mobile Marketing The Power of Mobile Marketing Judd Wheeler The Art of Mobile Conference 2011

2. How Big Is Mobile? 1.7 billion television sets

3. How Big Is Mobile? 2 billion Internet users

4. How Big Is Mobile? 1.2 billion computers (including tablets)

5. How Big Is Mobile? 4.9 billion combined

6. How Big Is Mobile? 4.9 billion combined > 5.2 billion paid subscribers

7. How HOT is Mobile? How HOT is Mobile? • 327 6M mobile phones in use in the U S 327.6M mobile phones in use in the U.S. • 196.9B text messages/month • Google $1B revenue = mobile ads and consumer usage of mobile coupons

8. Growing Trend Growing Trend • Americans are Americans are getting rid of landlines

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

10. Within Arms Reach 24/7 No 9% Yes 91% Morgan Stanley

11. Reach • Cell phone penetration is 104% of the US Cell phone penetration is 104% of the US population • That means… Over 94% of the U.S. population is within an O 94% f h U S l i i i hi arm’s reach

12. Mobile Spending Mobile Spending • 1 in 7 media minutes (>14%) • U.S.: 6% marketing budget (up from 3%) Business and Leadership survey, September 2011

13. SMS by the numbers SMS – by the numbers • 4.2 billion (globally) 4.2 billion (globally) Globally: • U.S. ~73% • #1 – Text • #2 – Apps #2 • #3 – Email • #4 Voice #4 ‐ 8x 20x

14. Text May Not Be Sexy, BUT….. Text May Not Be Sexy, BUT….. • 90% of all text messages read within 3 90% of all text messages read within 3 minutes of delivery • 95% within the 1st 15 minutes 95% within the 1 15 minutes • Over 99% read by the recipient • SinglePoint Conversational Advertising

15. Text May Not Be Sexy, BUT….. Text May Not Be Sexy, BUT….. • 90% of all text messages read within 3 minutes of delivery • 95% within the 1st 15 minutes • Over 99% read by the recipient • SinglePoint Conversational Advertising g g • Text: – CTR 14.06% Conversion 8.22% • Email: – CTR 6.64% Conversion 1.73% (average 33% change yearly) • Internet Display – CTR 0 76% C CTR 0.76% Conversion 4.43% i 4 43% • Direct Mail – Response 1.4‐3.4% (Conversion < 1%) • DMA 2010 Response Rate Trend Report

16. SMS Appeal SMS Appeal • Short convenient format Short convenient format • Most effective marketing messages = Least amount of thought from the consumer. Least amount of thought from the consumer • Permission‐based

17. Marks & Spencer Loyalty Program Marks & Spencer – Loyalty Program • Text‐to‐win Text to win • Event reminders • Internal education l d i • 700,000 opt‐in customers • Trigger increase in‐store purchase Trigger increase in store purchase

18. Mobile Barcodes Mobile Barcodes 30 characters 3,296 alphanumeric 1,000 characters • QR (Quick Response) Code: 1992 – Denso‐Wave (Toyota) Q (Q p ) ( y ) • Additional storage capacity accommodates a variety of data beyond numbers: – Text – Hyperlink – Telephone number (Phone call) – Email (Send message) – Contact entry (vCard or meCard)

19. QR Code by the Numbers QR Code by the Numbers • 14 million Americans 14 million Americans = 6.2% total mobile audience comScore MobiLens study June 2011 study June 2011

20. QR Code by the Numbers QR Code by the Numbers • 14 million Americans 14 million Americans = 6.2% total mobile audience comScore MobiLens study June 2011 study June 2011 •1200% increase second half of 2010 Mobie Identity Systems report

21. Deals, ads and a video D l d d id 7,581 web site visits (90 days)

22. Tesco HomePlus QR Shopping (South Korea) Tesco HomePlus QR Shopping (South Korea) • Nov 2010 Jan 2011 Nov 2010 – Jan 2011 • 10,287 online store via mobile • Members rose 76% b 6% • Online sales 130%

23. The Fades The Fades

24. • TEST the barcode • Don’t link to a generic webpage • D ’t li k t Don’t link to a webpage that isn’t mobile‐friendly y • Test placement

25. Augmented Reality Augmented Reality • Yelp • Zagat RETINA –SSee restaurants t t –C i t Can interact & virtually t & i t ll – Click to get ratings and walk down the street reviews – Click to get full review g and details

26. Volkswagen Beetle Volkswagen Beetle • Utilizes – standard billboards, – bus shelters, – traditional print based media property traditional print‐based media property

27. Augmented Reality Augmented Reality • Layar • Wikitude • Metaio’s Junaio i ’ i • String Labs • QderoPateo Communications (QPC) Articulated Natural Reality Articulated Natural Reality

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

29. Search • Restaurant menus 2x > Restaurant menus 2x > Lady Gaga • 40% Google Maps MOBILE 40% Google Maps – 75% have used locator like Maps • Google: separate indexes • Intent to buy y

30. Search

31. More browser phones than PCs

32. Mobile Optimized Web Sites Mobile‐Optimized Web Sites • Less than 19% of business in France and U K Less than 19% of business in France and U.K. • 33% of US‐based businesses • Tiffany’s jewelers doubled its sales after launching a mobile‐optimized website

33. Location‐Based Service Location Based Service 10,000,000 • Check in • Find friends Find friends • Share on social networks (FREE word of mouth) • Unlock rewards

34. Location‐Based Service Location Based Service 10,000,000 • Launched in 2009 • 1 billi 1 billion check‐ins h ki • 5 languages

35. Shopkick (Proximity Marketing) (Proximity Marketing)

36. ShopAlerts • Works with any phone Works with any phone (no GPS) • Opt‐in p • SMS, Facebook, Twitter, web, in‐store signage g g • Geo‐fences based off cell towers

37. • 96% recall text message • 38% increase purchase intent • 78% LBS nature made them more useful

38. SCVNGR Buffalo Wild Wings SCVNGR – Buffalo Wild Wings • Go places p • Do challenges • Earn points • 720 locations 12‐week campaign 12 week campaign (March Madness) • Media & customer engagement • Improve customer return rate – drive revenue rate – drive revenue

39. Turn Watching Games into a GAME Turn Watching Games into a GAME • Take pics of friends, p , sauciest wing in the basket, fans of rival teams, crowd going wild… teams crowd going wild • Rewards for completed challenges included: – $5 off (3 points), – a free Coca‐Cola (20 points) and – free wings (30 points) • Could share to Facebook & Twitter & Twitter

40. Results • Players generated 20,000+ challenges • There were 184,000 unique players • 1 in 3 players returned to play again • 100 million social impressions via Facebook and Twitter. • On average, a player spent 90 seconds per challenge, meaning that BWW saw the equivalent of 3.6 years BWW saw the equivalent of 3 6 years of brand engagement in its locations during the campaign. Now has an established database of 184,000 people for its next campaign

41. IKEA 2010 Interactive Catalog IKEA 2010 Interactive Catalog • Place furniture • Results – 40 pieces 40 pieces – PR – Use camera, move, resize, – WOM take a picture – High downloads • Di Discover style t l – Thru quizzes

42. Apps (June 2011) Apps (June 2011) Ave Price: $3.64 Over 7 TB Free, 36% Pay, 64% $891,982.24

43. Apps Dirty Little Secret Apps Dirty Little Secret Average: 60 apps downloaded to iPhone or iPad Average: 60 apps downloaded to iPhone or iPad Paid Free • 30% first downloaded • 20% first downloaded • 5% by day 21 • 5% by day 25 • 1% by day 90 b d • 1% by day 90 b d Socialize Inc.

44. And/ + OR =

45. North Face (China) North Face (China) • Stake virtual claim • > 2 million unique visitors to • Li Live score kept on web & k b& web outdoor electronic board • > 651,000 red flags planted • 18 days 18 days • Champion > 4,000 Champion 4,000

46. McDonald s Interactive Billboard McDonald’s Interactive Billboard • Photo Catch – Using cell phone camera – Get one free • Pick & Play – No app – picknplay.se picknplay se – Geo‐location – Play on big screen in real‐ time – Last 30 sec get digital coupon w/directions p /

47. Near Field Communication Near Field Communication • Subset of RFID • 150,000 NFC (+24,000) • 6 illi t diti 6 million traditional l Crone Consulting

48. Other mCommerce Other mCommerce Players

49. NFC Predictions NFC Predictions • Chip makers predict 40‐50 million NFC phones Chip makers predict 40 50 million NFC phones by 2011 • ~300 million phones worldwide (20%) phones ~300 million phones worldwide (20%) phones with NFC by 2014 (Juniper Research) • 30% of all mobile phones worldwide will be f ll bil h ld id ill b NFC enabled in 2015 (HIS research)

50. People Aren t Waiting People Aren’t Waiting

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

52. Mobile: The Next Mass Media Mobile: The Next Mass Media Legacy • Print • Cinema • TV • Radio • Internet

53. Mobile: The Next Mass Media Mobile: The Next Mass Media Legacy MOBILE • Print • Permanently carried • Cinema • Always connected Always connected • TV • Built‐in payment • Radio • Augmented reality • Internet • Audience measurement • Capture social context of consumption ti • and finally… y

54. Mobile is Personal Mobile is Personal

55. The Power of Mobile Marketing Judd Wheeler The Art of Mobile Conference 2011 jwheeler@comm‐arts.com 9 86 55 9 ( ) 918‐645‐5194 (m)

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