emarketer breakfast - 9.28.2011

September 14, 2011

N E W Y O R K N Y

Geoffrey Ramsey@geofframsey

Mobile Marketing: Trends, Stats and

Best Practices

Mobile Marketing: Trends, Stats andBest Practices

What we’ll look at this afternoon…

Part I: Mobile Landscape – Consumer View

Part II: Mobile Landscape – Marketer View

Part III: A New Mindset for Marketing: Magnetic Content

Part IV: Five Mobile Marketing Strategies

1. Identify and Understand your Mobile Audience

2. Employ Precise Targeting

3. Consider Geo-Location Technology

4. Make it Measurable and Actionable with Mobile Couponing

5. Use Mobile as an Additive, Integrated Channel

6. Think Before You App!

Part V: Mobile Measurement

Part IMobile Landscape: The Consumer View

6.9 B World Pop

• 1.6 B home internet users

• 3.8 B mobile users (55%)Source: eMarketer, 2011 (supported by ABI; BITKOM; Informa; ITU); US Census Bureau, Dec, 2011

In many countries, mobile is the 2nd most accessed media, after television viewing

Chile

#2

China

#2

Turkey

#2

Australia

#2

Russia

#2

Sources: TNS; TGI; Roy Morgan; Sinomonitor; Synovate; GfK; PARC/TGI, 2010

Venezuela

#2

Mexico

#2Indonesia

#2

Hong Kong

#2

Egypt

#2

In some countries, mobile is #1:

ColombiaEstoniaLatviaSaudi Arabia

In China, 57% penetration = 763 million mobile users

TV: 4 hrs, 24

mins

TV: 4 hrs, 24

mins

Internet: 2 hrs, 35

mins

Internet: 2 hrs, 35

mins

Mobile: 50 mins

Mobile: 50 mins

Newspapers: 30 mins

Magazines:20 mins

Newspapers: 30 mins

Magazines:20 mins

US smartphone penetration?(% of US mobile users with a smartphone)

8%?

27%?

38%?

67%?

comScore

Deloitte

InsightExpress

BIGresearch

eMarketer

Nielsen

Pew

US smartphone penetration?(% of US mobile users with a smartphone)

42%

40%

38%

36%

34%

33%

32%

UK……...... 42%Spain…….. 41%Italy……… 38%France…… 32%Germany…. 29%

--comScore, 2011

Source: eMarketer, 2011; various as noted

Smartphone users will account for over ½ of US mobile users by 2014

50% growth

While only 1/5 of mobile users conduct searches on their phones, 60% of smartphone

owners do (Ipsos; ComScore)

While over 1/5 (21%) of mobile users are social…

0% 5% 10% 15% 20% 25% 30% 35%

29%

27%

21%

17%

8%

% of Mobile Users Who Are Social

Zokem, 2011

Polaris, 2011

comScore, 2011

eMarketer, 2011

Edison Research, 2011

… among smartphone owners, it’s closer to 40%

iPad penetration will pass 8% this year, and reach nearly 13% next year

4Xgrowth in

penetrationvs. 2010

tablet

Tablets have quickly become daily fixtures for many activities

Marketer View on Mobile

Part II

Global execs see multiple devices and platforms as a key trend impacting their business

½ of marketers have mobile in their upcoming advertising plans…

51%51%

Source: IAB survey conducted by Ovum among 300 US firms, 2011

Source: Chief Marketer survey among 681 B2B and B2C marketers, 2011

“Among ANA members, 62%

are using mobile”

“Over the next 2 years, how will you change your mobile ad spending?”

Stay same 26%Stay same 26%

Increase 72%Increase 72%

1% Decrease

July 2011 study conductedamong 200 US firms that usemobile advertising

Over 1/3 say they plan to

increase spending by50% or more

Actual ad dollars

spent onmobile?

?

$1.2 B

Spending Growth in 2011

65%

--eMarketer, 2011

2011 Growth Rate forMobile Ad Spending

IDC………………….. 117%eMarketer…………… 65%MAGNAGLOBAL…… 57%BIA/Kelsey…………... 51%ZenithOptimedia…… 45%

B2B marketers are spending even less, proportionately, in mobile

$0

$20

$40

$60

$80

$100

$120

$140

$160

$26

$106

US B2B Mobile Ad Spending, in Millions

= 2.2% of total B2B digital ad spending

2009 2014

Source: *PricewaterhouseCoopers ($3.6 B); MAGNA ($3.4 B); Gartner ($3.3 B); **eMarketer, 2011; ***PricewaterhouseCoopers; ****GroupM ($230 M); PwC ($213 M); MAGNA ($202 M)

Global Mobile Ad Spending*$3.5 Billion

U.S. Mobile Ad Spending**

$1.1 Billion

Argentina***...... $1 Million

Russia**...... $20 Million

Brazil**...... $24 Million

UK****

$215 Million

China**

$445 Million

= 3.4% of total digital ad spending

= 4.1% of total digital ad spending

= 3.0% of total digital ad spending

= 8.9% of total digital ad spending

Why marketers love mobile marketing…

“Mobile works best when it plays a supportive, additive role to other

media.”

“Mobile is not a silver bullet”--Wendy Clark, SVP, Coca-Cola Company

Why marketers are challenged by mobile marketing…

The biggest obstacle for mobile marketers is also the biggest opportunity:

“Excuse me?!”

Beware the Trust Factor!

76%49%40%35%

13%

Part III

A New Mindset for Marketing:

Magnetic Content

Chaos Theory

BreakoutSessions

Today’s Panels:• Digital re-aggregration of media dust

• Digital is making the media universe fly apart at an accelerated rate

Rishad

Peter

John

Bob

The classic interruption/disruption model of advertising is waning…

We interrupt

this program

to sell you stuff

We interrupt this

programming to sell

you stuff!“Advertising is no longer about blasting the most messages to the most people. Instead, it’s about

this: Ideas that spread, win.”

--Seth Godin

“We need to create experiences, not just

sponsor content.”

--Frank Cooper, CMO, Pepsi

“Marketers are focusing on creating Magnetic Content – so entertaining, relevant, informative

or useful – it demands the consumer’s

time and attention.”

“It’s more about ATTRACTION, rather than

DISTRACTION.”

20% offMens’ Jeans

2-for-1Sale!

Five Criteria for Magnetic Content

1. Is the content Unique?

2. Is it Useful?

3. Is it Well Executed?

4. Is it Fun?

5. Does it make good use of the channel in which it appears?

Is it Useful?

Part IVSix Essential Mobile Marketing Strategies

1. Identify and Understand your Mobile Audience

2. Employ Precise Targeting

3. Consider Geo-Location Technology

4. Use Mobile as an Additive, Integrated Channel

5. Make It Actionable with Mobile Couponing

6. Think Before You App!

#1. Identify and Understand Your Mobile Audience

(56% are Clueless)

(41% Get It)

#2. Precise Targeting is Essential…

• Because it’s Personal– Adhere to strict opt-in, permission

marketing policies

• Because it’s Possible– Work with top mobile ad networks

who have access to rich subscriber data from carriers

– Store this information in a database so you can create real-time campaigns segmented by interests, intentions and even location

Targeting is a top priority for marketers in 2011:

#3. Use geo-location technology (but use

it judiciously).

You are here.

“Have you checked

in?”

Location-Based Services

Geoff Ramsey @ eM BreakfastPresentingRight this second

Carl Fremont@ eM BreakfastFeeling skeptical2 mins ago

Noah Elkin @ StarbucksEmailing on my Android3 mins ago

“Less than 10%* of mobile/online adults use location services to check-in”

--Pew (5%); comScore (7%); InsightExpress (11%); SNL Kagan (14%); Beyond (17%)

“Less than 10%* of mobile/online adults use location services to check-in”

--Pew (5%); comScore (7%); InsightExpress (11%); SNL Kagan (14%); Beyond (17%)

“Doesn’t foursquare have

only have about 10 million users?”

“But there’s exciting opportunities, too”

Space Time

While in stores, consumers are using their phones to compare prices, evaluate

products and check inwith trusted friends…

= intent

…This creates richopportunities to reach consumers just when

they are at the point of making a decision.

“The company with the richest social graph and the most extensive geo-location information has the upper hand in providing a better value proposition to the consumer.”

--Noah Elkin, Mobile Analyst, eMarketer

Checking in is motivated by the prospect of value exchange: getting useful information and finding deals

#4. Make it measurable and actionable with mobile couponing

25%

#5. Use mobile as an additive, integrated channel…

… to alert consumers to your Magnetic Content

Use mobile as an additive, integrated channel…

… to track, measure and enhance other media efforts

50% of those

redeeming

coupons were

new customers

#6. Think before you app!

Think about the consumers’ needs

Think Utility, Think Fun!

Remember, you’re not just competing with other marketers, you’re competing with thousands of app developers for the consumers’ time and attention

Part VMeasuring Mobile: A Framework for Success

The ROI Challenge…

MMA/Google/Ipsos Survey, 2011:

41% of global marketers said they were not investing in mobile because of uncertainty about ROI

King Fish Media Survey, 2011:

63% of US marketers either a) hadn’t measured the ROI of their mobile campaigns or b) simply had no idea what it was

Chief Marketer Survey:

51% of mobile marketers are relying on clicks to measure campaign success!

Only about a 1/3 of marketers are integrating mobile with their cross-platform media strategies

37% 29%*

Source: IAB survey conducted by Ovum, based on average of seven industry categories, June, 2011

Source: Chief Marketer survey among 681 B2B and B2C marketers, May, 2011

Mobile Measurement Challenges:

• Integration with other media• Lack of reliable data collection,

e.g., cookies• Multiple devices, carriers and

operating systems

Start with the measurement framework

Perceptual & Behavioral Outcomes

FinancialOutcomes

MarketingInvestment

FinancialMetrics

Strategic Metrics

Exposure Metrics

LINKAGE

LINKAGE

LINKAGE

49

e.g., Qualified Reach

i.e., End Action Rate

e.g., ROI

Some kind of conversion: registration, coupon redemption, trial, email sign-up, purchase, etc

Look at this in terms of Sales “Incrementality”:

• Increase in # of transactions and transaction size;

• Increase in # of customers;• Additional revenue from

m-commerce

Thank you

eMail geoff@emarketer.comTwitter @geofframseyeMail geoff@emarketer.comTwitter @geofframsey

Cell 201-989-9230Cell 201-989-9230

(Amazon.com)