bdf mobile media final

The Convergence of Mobile and Media: Insights from the mobileSQUARED Roadshow

mobileSQUARED Roadshow

December 2010

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Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Agenda

•Background: The U.S. mobile market•Evolution of Mobile Advertising•Engaging: Targeting the Mobile Consumer •Calculating: How to maximize ROI•Measuring: The Digital IQ Index•Case Studies: Neutrogena and Olay•Creating: The Mobile App•Mobile Search Strategy•The Mobile Web•Summary and Conclusions: Mobile and BDF


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The U.S. Mobile Market

Growing, changing, diversifying

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Smartphones have significant share of market


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Smartphones will overtake feature phones next year


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Diverse users are important segment to capture


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Evolution of Mobile Advertising

Looking towards the future

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The last 5 years of mobile advertising…and the next

June 29th, 2007: the iPhone– Changed the way consumers,

publishers looked at mobile web– Ads and engagement became

much more interesting– Mobile display advertising to

drive acquisition

–G1 launched on T-Mobile– $2.2 billion in ad revenue, <0.5%

of total U.S. ad spend in 2007

– In 2008, Apple started the App Store, now 7 billion+ downloads


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Mobile Evolution: the immersive experience

In 2010, the iPad– Immersive experience for consumers– Apps and advertising are robust experiences– PR value helped bring mobile ads to forefront

and have brands consider it– Mobile advertising becoming much more

important of media mix as a whole– Multi-screen multiplier: mobile web, Xbox,

iPhone apps

2011 and beyond: 4G, Location Based Services, Social Media, more video (HD), the CLOUD


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Text message marketing involves the audience

Effective way to involve the audience– Innovation: provide opportunities for streamlined

participation – Monetization: partner w/ pioneering brands to

drive revenue from SMS

– For the sponsor, SMS is:– Synaptic and targeted– Measurable: track effective spend, conversions– Trusted: ads tied to a credible source– Visible: embed branding message in a clutter-

free medium

– For MTV, SMS offers:– Ubiquity: deliver an experience for everyone– Relevance: deeply engage audience to

contribute to show outcome


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Mobile payment case study: Médecins Sans Frontières: mobile donations, 360 campaign

• Social networks to spread the word and recruit volunteers– Make projects more popular among all users of

social networks– Coming to donation page where you simply insert

your mobile number–Here, social media integration starts

– You can send it forward to friend

Supported with different mobile promotions– Everything well integrated into overall campaign

– Success factors = high personal involvement, viral activity

– Strong brand awareness + community building


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Engaging the Mobile Consumer

Adapting to the unique needs of this new audience

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Mobile users have unique needs• Immediate benefit: provide value

to users upon initial engagement– Convenience– Store locator, product reviews, price

comparison– Give option to use current location– Provide unique flow for different

devices

• Relevance: Hyper-target users with profiles

• Ease of use: design simple, effective navigation– Easy to recognize what is selectable


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Powerful mobile strategy via digital engagement


• Mobile mainstream [1] – E-reader spending will

jump from 2.5% to 18.75%– Tablets from 22.5 % to

nearly 44%– Netbooks will rise from

6.25% to 20%

– Digital plans should focus on engagement, interaction and trackable conversion [2]

– Digital ad spending to leak into mobile spending

Source: [1] http://www.mobilemarketingwatch.com/mma-survey-mobile-marketing-budgets-set-to-rise-124-from-2010-to-2011-7938/, [2] ams.aaaa.org/eweb/upload/catalog/pdfs/MG18.pdf

[3] “Optimizing your Digital Marketing Mix,” http://www.slideshare.net/DaveChaffey/optimising-your-digital-marketing-mix

http://www.mobilemarketingwatch.com/mma-survey-mobile-marketing-budgets-set-to-rise-124-from-2010-to-2011-7938/

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Advertisers capitalize on consumer connectedness

“Mobile is the most over-hyped marketing channel in the short term and the most under-hyped in the long term” -Sir Martin Sorrel, CEO WPP Group

Questions businesses should ask before going mobile:– What are the goals of your mobile presence?– Building brand awareness and consumer relevance– Some companies trying to transfer e-commerce to m-Commerce – Drive commerce to brick-and-mortar retailer site– Engaging a broader base


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Customer and Brand Management Evolving

Stage 1: CRM– Traditional advertising mechanism– Brands through to agency and consumer

Stage 2: CRM 2.0– More about communication, interaction and engagement– To do so, you have to give consumer more power vs. the brand

Stage 3: Brand relationship management (BRM)– Consumers can actually control who talks to them– In doing so, there will be much better engagement b/w consumer

and brand


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Mobile Marketing ROI

How to improve ROI and partner with retailers

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How to maximize the return on investment

• 1. Create experiences that provide utility. People will return if it’s useful

• 2. Integrate across channels. Benefit from halo effect of other mediums

• 3. Measure, track, analyze. Proper analytics allow you to measure initiatives and improve them

• 4. Buy mobile media. Use mobile to generate initial push of awareness

• 5. Build a mobile database. Building an opted-in mobile database of brand's tech-savviest enthusiasts

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Mobile’s share in marketing spend ready to rise


• Mobile marketing spend to rise 124% in 2011–Total mobile allocation is 4% of

marketing budgets–Mobile marketing channel up the

greatest percentage

• MS and mobile Web sites are 58% in adoption this year, 83% projections for next year; apps are 71%

• Location based features spending up 265%; SMS 141%; Mobile video 137%

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Mobile campaign categories (CPM basis)

• Destination Site– Mobile application, optimized website, or landing page

• Advertising Formats– Messaging: Opt-in SMS ads

• Messaging (Mobile Display Advertising)– News, sports, entertainment, tabloids, cinema/films– Weather, music, social networking, traffic info, money, property– Travel, shopping, retail, auctions, diet & fitness, automotive– Chat and dating, games, gambling, top PC internet sites– Local news, search, premium text lists

• Other mobile advertising– Sponsored games on portal– Pre and post-roll gaming community ads– Sponsored video– Sponsored on-portal takeover

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Retailers innovate mobile for shopper insights, manufacturers need partnership strategy

38% of retailers have a mobile strategy, metrics

• Customer centric retailers offer new features on apps:–Proximity and Non-proximity

Payments–Dynamic Location Based

Messaging–Line Busting, Mobile Phone

Based Reviews/Video–Service and Repair Functions,

in-store Interactivity

Source: SmartSoft Mobile Solutions, “Best Practices: Defining Mobile ROI in Retail,” and “http://www.brandweek.com/bw/content_display/news-and-features/shopper-marketing/e3i7463e6c2968d742be6cb401e70fb7056 “

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Mobile Apps

Should you create one?

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Mobile apps are rapidly increasing on smartphones

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Source: August 2010 Nielsen App Playbook

2%

7%

14%

17%

15%

17%

15%

14%

18%

20%

21%

29%

10%

27%

50%

42%

42%

49%

59%

2%

6%

12%

16%

16%

17%

20%

20%

21%

22%

25%

28%

31%

35%

36%

37%

42%

49%

57%

Other Application (please specify)

Household/Personal Care

Lifestyle/Health

Food/Drink

Communication (e.g. IM, VoIP)

Shopping/Retail

Travel

Productivity

Video/Movies

Dining/Restaurant

Banking/Finance

Entertainment

Sports

News

Social Networking

Music

Maps/Navigation/Search

Weather

Games

Male

Female

Categories of Apps Used in the Past 30 Days by GenderBase: Past 30 Day App Downloaders

Females are more likely than males to use social networking, while males skew high for sports, news apps

Base: Male (n=2,032), Female (n=2,232)

Questions used: CQ24: Which of the following types of applications have you used in the last 30 days?

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Successful apps combine entertainment, information, and utility


• Going mobile is all about the consumer and keeping them engaged

–Apps must fit in to everything you’re doing

–Get high-performance app, has stickiness and will bring consumers back

–NIVEA could make a game based on the “Bikini Challenge”

–Countdown to New Year’s app

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43%

35%

25%

15%

12%

Rewards Entertainment/interactive Communication/advertising Social/communities Other

Types of Branded Apps DownloadedBase: Respondents who are Aware of Branded Apps (n=1,722)

Rewards branded apps are the most popular type downloaded

Questions used: CQBA7 What types of branded apps have you downloaded?

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8%

8%

9%

9%

9%

10%

12%

12%

12%

13%

14%

16%

16%

16%

19%

20%

Read or wrote on a blog

Purchased or intend to purchase advertised product/service online

Purchased advertised product/service immediately

Posted a comment or updated my status on my social networking site

Called a toll-free or 800 number

Recommended an advertisement/ advertised product/service

Went to a retailer/store/distributor for more information

Purchased or intend to purchase advertised product/service in a store

Thought more favorably about the featured brand or product

Entered a contest or sweepstakes

Used a coupon

Forwarded a link or video to others

Considered buying advertised product/service

Told someone about the advertised product or service

Looked online for more information

Used a search engine to find out more information

Questions used: C41F Which of these actions have you ever taken as a result of clicking and viewing ads on your cell phone?

Actions Taken when Viewing Mobile AdvertisingClicked on an Advertisement while within an App (n=849)

Roughly one in five app downloaders that have clicked on an in-app ad have searched for more info online

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Mobile Search Strategy

Can consumers find your products?

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How important is search in your mobile strategy?

Search patterns suggest: mobile search incremental to desktop search

Google Goggles mean visual search on the rise– Media bridging concept: bringing an interactive experience

– Find out what you want (online or off) with Shopper– Scan a barcode or do a voice search– Search along route in Google Maps


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Internet behavior is similar across full browsers

Queries are remarkably similar–Average desktop query and

mobile both have 3 words–Heavy mobile searchers

actually inputting more complex queries than desktop users

Mobile consumers looking for local information (Couponing opportunity)– Search near My Location– Find friends nearby– Call a local business– Find local store hours– Get driving directions– Locate a business on maps


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The Mobile Web

Consumers’ constant internet access a boon for marketers

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Mobile Web Experience vs. PC

Mobile web experience different than PC– Whole user experience needs to be thought

out and mapped carefully– How do you provide immediate functionality to

users, i.e. store locator in retail environment– Ease of use is critical

– One size does not fit all– You have to focus your content

– Location!– Leverage LBS, hyper-target customers w/

user-specific offers according to their location, user history and other demographics


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Title of Presentation

1. Growth of mobile coupons and commerce2. Converging on mobile devices3. Downloadable applications or sign up for SMS alerts4. Regular ways of engaging consumers can build loyalty

and long-term engagement5. Leverage mobile6. Mobile display ads targeting local search consumers7. Fast growing, popular activity on mobile device

Strategies and Tactics

One of fastest growing parts is the mobile web

Internet reach: 35% use mobile web, 86 million unique users, 55% male, 45% female

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Thank you

bdf mobile media final

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