For Mobile Devices , Think Apps , Not Adds

-Harvard business article

Do we get irritated with Lilliputian ads on your mobile?

Answer is a big YES!!!

• We all get annoyed.

Why Mobile Ads don’t work?

People don’t like them. -4/5 population think M.A(mobile advertisement) unacceptable.

There is no right side -as on desktop computers , pop ups are visible .

“FAT FINGER” effects -by mistake user land up on hyperlink of ads.

Then what is the remedy??

-Interact via apps not ads.-Consumer don’t consider them as adds.-They value them for their functionality

Mobile account for 10%of the

time spent on media

Apps!!!-new way of adververtisement

-Cost efficient-new revenue system

-mobile now accounts for 10% of the time spent on media-Advertisers spend 1% on M.A

-M.A budget is increasing2012-$2.3 billion2016-$11 billion

LETS LOOK INTO

HISTORY!!

• IN 1940-50 ads on T.V came like radio Ads.• IN 1990s ads on internet came as static pages.

• 2015-16 is the starting of M.A in INDIA.So we need innovation

NEW MEDIA REQUIRES NEW WAY OF ADVERTISING

TIME SPEND BY MOBILE USERS

web browsers

On an average , user downloads 40 apps(out of milllions)And uses 15 regularly.-games n entertainment account for 42% of the time spent-social network -31%.

apps

INSTEAD OF BUYING

TINY BANNER

INVEST ON APPS…

Create apps that add value to customers life

5-Strategies for app adververtising!!

1. Add convenience2. Offer unique value3. Provide social value4. Offer incentives5. Entertain

Add convenienceThey give great return on investmentExample,

-ESPN app lets its user to check scores .-most airlines have mobile apps to check in n

monitor their flight status.

1

3-constraints

1. CAN STRENTHEN RELATION SHIP With existing customers but aren’t very attractive to customers.

2. ESTABLISHED BRANDS have inherent advantage- retention and engagement of customer.

-not viable alternative for every customer

3.Harder to differentiate as all companies are giving convenience.

2.Offer unique value!!• NIKE+ :App launched in 2006 for monitoring

speed ,calories,distance with special chip in runner chips.

• App was free sensor shoes needed to be bought.• 30%growth in running shoes sales in 2012.

3.Provide social values.

• Ads interrupt user experience. -whatsapp do not allow adds to intervene .there believe in “word by mouth“

Brian Acton(co-founder whatsapp) quoted“We’re able to take our positive cash and reinvest it in our business – do R&D

on new platforms, hire great talent, rather than using our cash for marketing and eyeballs. We don’t do any advertising. We build a product that people will want to tell their friends about.”

• FB added its billionth user in oct 2012

4.Offer incentives!!

• Short term promotions.• So that consumer buy products or

“like” on fb. example:1.Coca-cola did so with promotion in

brazil in march 2012. -machines were installed in the shape

of coca cola. -on clicking photo though app

cunsumer gets 20 MB data

5.Entertain

• Mobile user spend 40% of their mobile time on games.

• Entertain customers.. example:Red Bull created games such as Red-bull Kart

fighterRed bull X-Fighters and Red bull Air force

Lets see recent examples of app in advertising…

How many of you were prompted to watch Anurag Kashyap’s period crime drama film Bombay Velvet based on historian Gyan Prakash’s book Mumbai Fables, after catching a glimpse of the movie on Star India’s mobile app Hotstar?

o This was the first time that a bollywood movie had been promoted on a mobile app and it got viewers talking.

o Director/producer duo Karan Johar and Anurag Kashyap also ensured that it was different from a TV promo.

Sony Entertainment Television, part of television broadcast company Multi Screen Media (MSM), premiered its mythology-based series Sankat Mochan Mahabali Hanumaan last month on its mobile application Sony LIV..

The online premiere took place at 12 noon on May 4, eight hours before it debuted on television screens on prime-time the same day.

This has now become a ritual as every episode of the show is first aired on the app, followed by a telecast on TV.

e-tailer Myntra which last month shut down its website and morphed into a mobile app based retailer, it is now the turn of news and content players to go full throttle on mobile.

These slides were created by Yash Mehrotra , IIT BHU as part of an internship done under the guidance of Prof. Sameer Mathur (www.IIMInternship.com)