velti mobile whitebook 2013

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MOBILE WHITEBOOK 2013 DATA, TRENDS AND BEST PRACTICE In partnership with

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Page 1: Velti mobile whitebook 2013

Mobile Whitebook 2013Data, trenDs anD best practice

In partnership with

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www.velti.co.uk

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3www.velti.co.uk

contents 4 Introduction

About Velti

6 Forewords

From Velti

From Econsultancy

7 Consumer Data: The Case for Mobile

8 Mobile penetration and use grows

9 Tablets become the screen of choice

10 Marketers need to cater for an multichannel world

16 The Business Landscape

20 Best Practice Advice

21 Five steps to mobile success

23 Measurement for mobile

24 Mobile tactics for your marketing funnel

25 Case Studies

26 Vodafone Freebies

26 Walkers Homegrown

27 Samsung Hope Relay

28 How Velti Can Help You

28 Strategy in action

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introDuction2013 ushers in a new age of consumer preference, consumer habits and

consumer devices. The focus for marketers should be the same as it has

always been, on the customer. Mobile marketing has made it through

the Wild West and we are delighted to see positive and wide adoption

in the industry.

We have seen a surge of interest from brands investing time, thought

and resources into their mobilisation efforts. Brands from all of our

sectors have sought advice on mobile best practice, and due to the

demand, we are delighted to share some of that expertise. Our research

combines leading industry statistics, primary data and analytics from our

own Velti platforms.

To fully understand how the end consumers are using their devices, we

are delighted to have partnered with Velti, the leading mobile marketing

and advertising agency, to provide truly actionable insights to help you

formulate an effective and accountable mobile strategy.

www.velti.co.uk

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about VeltiVelti is the leading global provider of mobile marketing and advertising

technology solutions that enable brands to implement highly targeted,

interactive and measurable campaigns by communicating with and

engaging consumers via their mobile devices.

Velti’s experience in mobile spans all sectors and global regions, whilst

their solutions cover the full end-to-end mobilisation journey, from initial

activation to mobile customer acquisition through to retention strategies.

They work with their clients to educate, optimise and inspire the use of

the mobile channel and ultimately grow their revenues.

Our clients include:

MeDia

retail

FMcG

Finance and Mnos

GaMinG and GaMblinG

others

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6 www.velti.co.uk

From Velti

As a business we aim to innovate, explore and

share groundbreaking best practice to ensure that

we help our clients capitalise efficiently on the

mobile channel. The mobile landscape is complex

and our team of dedicated strategic planners and

analysts are committed to sharing both internal

and external knowledge to advance your own

marketing strategies in 2013.

Just two in 10 of our sample* stated that they

are 100% mobile, while a significant 45% of

respondents stated that they need to do more or

don’t do anything on the channel. This means that

there is still much work to be done in our industry

to assist brands in their mobilisation efforts and

revenue growth activities.

We look forward to hearing about your plans and

ideas for the channel of choice in 2013.

Best Regards

Barry Houlihan

General Manager

Velti Western Europe

From Econsultancy

Over the past few years, a cliché within marketing

has been “This is the year of the mobile”, or more

recently in a desperate plea for attention, “This year

is really the year of the mobile”.

In my opinion, such comments are not helpful.

They present mobile as a transient consumer

trend or fashionable term which can be dropped

into conversation to win budgets and convince

organisations to take action.

The reality is that mobile is now already entrenched

within consumer behaviours and decision making.

Over half the population in the UK and the US

own a smartphone and 65% of all online activities

begin on a smartphone.1 With PC sales plummeting,

mobile devices are already the default way for

most consumers to access and gain information on

digital products and services.

Despite this, the research revealed by Velti in this

document shows that the majority of marketers are

spending 5% or less of their efforts on mobile.

I hope the data, insights and best practice tips

presented in this document will spur you and your

organisation to take action and take advantage

of the opportunity presented by the new digital

landscape.

Andrew Warren-Payne

Senior Research Analyst

Econsultancy

ForeWorDs

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Mobile devices facilitate consumer interactions with your brand at

any time or place convenient to them, and with over 14,000 different

smart devices and tablets in use, interactions on the mobile channel

are increasingly critical moments in the customer journey. Ensuring

that these experiences remain positive should be at the centre of your

mobile strategy.

Consumer expectation has soared in recent years. Consumers now

demand brands to be uniformly presented regardless of access points

and oversight has meant many brands falling behind their full potential.

The successful implementation of many brands’ mobile strategies

(including Facebook and Amazon) has been a positive step in the right

direction for the industry. However, despite undeniable adoption of

smart devices by global consumers, marketers have been relatively

slow to fully realise the potential of the opportunity presented. With

the imminent rollout of 4G services, the ever-increasing presence of a

variety of devices and screen sizes, Tablet, Phablet (ie. phones so large

they are almost like tablets, such as the Samsung Galaxy Note) and

even Laplets (Laptop/Tablet hybrids such as Windows Surface), it is vital

to understand the role these devices play and how to best adapt your

marketing strategy to become truly multi channel.

The connected consumer now uses a variety of devices to research

and complete even simpler purchases. They expect a great brand

experience on every channel, platform or device, and they expect to be

able to switch between them seamlessly. Anything less is a poor brand

experience. Many brands state they have tried mobile but customers

only use it to brand their product not purchase. Chances are

what this really means is that most brands have not been

optimised for mobile.

consuMer Data: the case For Mobile

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8 www.velti.co.uk

Mobile penetration anD use GroWsMobile devices have rapidly become an integral part of our everyday lives

A recent survey by the insurer Endsleigh reports that 32% of us

would be more willing to go without alcohol for a month than

lose our mobile phone, with 24% of respondents believing that

losing their phone would be detrimental to their mental health.

Nielsen reports a 97% mobile phone penetration in the UK,

with 64% of these being ‘smartphones’.

A year ago, smartphone penetration in the UK tipped over the

50% mark, making ownership irrefutably ‘mainstream’ for the

first time. At the end of 2013, penetration levels were close to

two-thirds of the population. That has changed the way brands

can communicate.

Smartphone use is a global phenomenon

This phenomenon isn’t contained within the UK. Smartphone

penetration in the EU5 has crossed over into the mainstream

at 57%, which is higher than the respective penetration rate

of the United States (54%). Meanwhile, rates are lower in

Germany (51%) and Italy (53%).

key Facts about Global Mobile use • Over712millionsmartphoneswereshippedglobally

in2012accordingtoIDC–a45%increaseon2011.

• Lower-costsmartphonesmadebyHuaweiandZTC

arehelpingtofuelthistrendinemergingmarkets.

Android becomes the dominant smartphone operating system

The rising success of Android has altered the landscape of

mobile operating systems. Android now outpaces iOS sales by

two to one, and this trend is increasing. Already, penetration of

Android smartphones is close to 50%.

EU5 UK

SPAI

N

FRAN

CE

ITALY

GERM

ANY US

56.5%

64.0%65.8%

53.0% 52.6%50.8%

53.8%

Dec2012Dec2011

iOS28%

Symbian3.1%

Android46.6%

BlackBerry15.2%

Windows6.4%

Market share ios/anDroiD

in the uk

sMartphone penetration

97%Mobile phone penetration in the uk,

64%oF Which are sMartphones

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tablets becoMe the screen oF choiceTablet penetration has also doubled since 2011, and the increased competition from cheap

alternatives has undoubtedly helped to fuel this growth. The rapid adoption of tablet devices

has fragmented the mobile landscape and there are notable differences in user characteristics

between the two mediums. Mobiles are highly personal, while tablets are often shared. The

majority of tablets are WiFi-only and used mainly at home.

Tablets to replace PCs and laptops as the device of consumer choice

With IDC reporting a near 14% drop in PC and laptop sales in

the first quarter of 2013, it’s likely that beyond handheld mobile

devices, the tablet will be the primary device through which

the majority of consumers will interact digitally with brands. By

2017, it’s expected that annual tablet shipments will exceed

350 million, significantly in excess of the 300 million PCs

currently shipped annually. Consumers are migrating to the

portable device fast.

key Facts about tablet penetration• Closeto53milliontabletsweresoldworldwideinQ4

2012,a75%increaseYoY.

• FromQ42011tothesameperiodin2012,Samsung

andAsushadthebiggestgrowthbutAppleisstillin

thelead.

• TabletssoldgloballyinQ42012:

–22.9millioniPads

–7.9millionSamsungdevices

–3.1millionAsusdevices

The switch from desktop and laptop devices to tablet has

been accelerated by a number of factors. Manufacturers are

increasingly seeing the value of creating smaller and cheaper

tablet devices as these are lower cost. In addition, larger

tablets are less portable while their heavier weight makes

them less comfortable to use for prolonged periods of time.

263.0%

26.8%

402.5%

-27.7%

77.4%

48.1%

4Q12/4Q11 GroWth in tablets – Global Data

UK

FRAN

CE

GERM

ANY

ITALY

USA

SPAI

N

AUST

RIA

19%

15%

10%

23%

20%

24% 24%

2012

2011

tablet penetration

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Tablets become the second screen of the family

With their ease of use, long battery life and high-quality user

experiences, tablets are well used in the homes of consumers.

Rather than desktop devices, which are more likely to be

confined to a single location, tablets can be moved around the

house and used for a multitude of tasks.

One phenomenon that’s occurred with the rise of smartphones

and tablets is that of ‘second screening’. This is the use of

tablets while watching TV or another device. In the UK, 24%

of consumers do this several times a day. The activities being

performed during second screening are broad and occur both

sequentially, as we start tasks on one device and continue on

another, and simultaneously, as we watch two screens at the

same time. There’s a vital link between traditional consumer

engagement with brand advertising and mobile search; and

of course hard wiring ads to devices with Shortcodes to drive

customer response levels.

In addition to second-screening, tablets are used to access

television content. UK consumers are the most likely in the

world to access television content over the internet ahead of

the US. This is encouraged by the early arrival and success of

products such as BBC iPlayer.

By understanding second-screening behaviour, marketers

have a unique opportunity to tailor campaigns in an integrated

fashion. TV no longer commands our full attention – for half

of us, ‘lean back’ now has a ‘sit forward’ component, which

provides an opportunity to engage with consumers in a

timely and relevant fashion through the channels available to

them via a tablet device, but given the range of screen sizes

many brands are coming unstuck by relying on their website

experience to render to tablet.

• Thetabletisnotconfinedtooneroominthehouse.Itiswell

shared and well liked

• Tabletsareusedforemailandgaming,withlevelsof

shopping twice that of a smartphone

• Tabletscanempowerbetterconversionratethrough

touchable and swipe-able content

• Multi-screeningconsumerbehaviourisbothsequentialand

simultaneous

key Facts about seconD screeninG• 78%ofUKTVviewerssimultaneouslyusea

smartphonewhilewatchingtelevisioninatypicalday

• 80%ofUKtabletownersdothesame(butasyet,

fewerowners).SEVE

RAL

TIM

ES A

DAY

ONCE

A DA

Y

SEVE

RAL

TIM

ES A

WEE

K

SEVE

RAL

TIM

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MON

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A M

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OR

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R

26%

24%

12%

15%

19%

17%

16%

14%

24%

USUKGERMANYITALY

23%

19% 20

%

13%

10%

15%

13%

7% 7%9% 9%

12%

20%

29%

29%

siMultaneous use oF tablet While WatchinG tV

top actiVities perForMeD DurinG siMultaneous screen usaGe

60%Emailing

42%Social Networking

15%Work Documents

25%Playing a Game

23%Searching

9%Watching Video

44%Internet Browsing

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Tablet behaviour is different to that on smartphones

The characteristics of tablet devices compared with

smartphones means that consumer behaviour is markedly

different between the two. In particular, consumers appear

to be more willing to shop on tablets (4 in 10) than on

smartphones (2 in 10); but this still means that 6 in 10 people

shop on mobile devices

The creation of mobile-optimised shopping experiences,

which take full advantage of the larger screen and touchability

provided by the tablet, along with the time of day a tablet is

most likely to be used (ie. at home in the evening), mean that

retailers will often see significantly higher conversion rates

from tablet than from mobile devices; these mobile optimised

experiences will also serve users who shop on smartphones

key Facts about tablet behaViour Vs. sMartphone behaViour

• Thesurveyshowed67%oftabletandsmartphone

shoppersonlyuseappsfortheirfavouritestores.

Emai

lPl

ayin

g ga

mes

Face

book

Read

ing

book

sRe

adin

g ne

wsLi

sten

ing

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usic

Shop

ping

Wat

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ovie

s or

TV

Rese

arch

rest

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Rese

arch

trav

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Emai

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akin

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Face

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List

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g ga

mes

Read

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news

Phot

o m

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emen

tRe

sear

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rant

sSh

oppi

ngTw

itter

72%

67%

61%59%

50%46%

44%42%

30%

TABLET OWNERS SMARTPHONE OWNERS

30%

79% 78%

58%

52%48%

37%

26%24%

20% 20%

For Which oF the FolloWinG Do you typically use a tablet / sMartphone?

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Marketers neeD to cater For a Multichannel WorlDAlthough the trends and statistics present a strong case for developing a valuable user

experience on smartphone and tablet devices, the reality is that the use of these does not exist in

a vacuum. Although digital has often being quoted as the disrupting factor in creating non-linear

customer journeys, customers have always carried out their purchasing decisions in complex and

unique ways.

Companies need to cater to multi-device user journeys

Today’s reality is that many consumer purchase decisions

cross multiple devices, and research from Google shows that

smartphones are the most common way in which consumers

start their online activities.

key Facts about Multi-DeVice journeys• Whenshopping,sequentialmulti-screeningand

channelthreadingiscommonplace.

• 67%reportedtheystartashoppingactivityonone

deviceandcontinueonanother.

• Mobileisthemostcommonstartingpointfor

shoppingactivity.

65% start on a

Smartphone

61% continue on a

PC/Laptop

4%

continue on a

Tablet

25% start on a

PC/Laptop

19%

continue on a

Smartphone

5%

continue on a

Tablet

65% start on a

Tablet

10% continue on a

PC/Laptop

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Selling effectively means reaching the right person at the right time at the right place – and on the right device

Users typically use devices differently depending on a number

of factors, including time of day, their position in the buying

cycle, where they are physically located (eg. home, work or

travelling) and the product which they are researching.

Marketers should look to provide a customer experience

that adjusts and accommodates for the variation in content

consumption and buying behaviour by device, time and place.

The chart below illustrates how device behaviour changes

depending on both the time of day and also whether or not

it is a weekend. Weekends and evenings generally see an

increase in the amount of time people spend on mobile

devices, particularly on tablets such as the iPad.

The reason for this increase mainly comes down to the fact

that these are the times when people are likely to be finished

with work and therefore using mobile devices either while

travelling or commuting, while out and about, or relaxing in the

home. Marketers should take advantage of these behaviours

by timing their efforts accordingly using mobile media to

maximise at its peak times and geofence to find consumers

in the right place.

Another change caused by the shift to mobile is that marketers

can more effectively geo-target their ad campaigns to only hit

those who are in the right place at the right time. For example,

local retailers can choose to have their campaigns display only

to people within a certain distance of their store and when the

store is actually open.

Weekday

00:0

0

01:0

0

02:0

0

03:0

0

04:0

0

05:0

0

06:0

0

07:0

0

08:0

0

09:0

0

10:0

0

11:0

0

12:0

0

13:0

0

14:0

0

15:0

0

16:0

0

17:0

0

18:0

0

19:0

0

20:0

0

21:0

0

22:0

0

23:0

0

Android

iPhone

iPad

Weekend

Wee

kday

00:00

01:00

02:00

03:00

04:00

05:00

06:00

07:00

08:00

09:00

10:00

11:00

12:00

13:00

14:00

15:00

16:00

17:00

18:00

19:00

20:00

21:00

22:00

23:00

Andr

oid

iPho

ne

iPad

Wee

kend

key tips to tarGet Multichannel custoMers

• Ensureyourdigitalpropertiesaremobile-ready.

Conductuserexperiencetestinginordertomake

sureyourcustomerscanconductkeytasksonan

arrayofdevices.

• Experimentwithcustom-adschedulingtoshow

mobileads/SEO/PPC(bothdisplay,paidsearchand

more)atthetimesofdaywhenupto60%ofyour

customersaremostlikelytoengageeffectivelywith

them.

• Postonsocialmediawhenyourconsumersaremost

likelytoengage.Oftenthismeansintheevenings

andattheweekend.

• Takeaccountofthechangingpatternofconsumer

behaviourthroughoutthedayandweek.Targetyour

mobileeffortsaccordingly.

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ROPO and ‘showrooming’ become the way consumers like to shop

Another effect caused by the proliferation of mobile devices

are the phenomena of the ‘ROPO effect’ and ‘showrooming’.

ROPO refers to when consumers ‘research online and

purchase offline’ while ‘showrooming’ is where consumers

look to inspect products in-store before purchasing them at a

lower price online.

Research from Econsultancy shows that this trend is significant,

with a survey of 1,000 UK and US consumers showing that

more than 90% use the internet to research products and

services before buying at a local store, while 43% of UK

consumers and 50% of US consumers said that they had used

their mobile to compare prices and look up product reviews

while out shopping.

USA

UK

YES

50%

43%

NO

57%

50%

With the number of people owning smartphones still increasing

and the most successful bricks and mortar stores gaining more

of their income from digital than ever before, retailers who do

not adapt to this change in consumer behaviour are likely to

find themselves in a precarious position.

key steps to accoMMoDate For ropo anD ‘shoWrooMinG’ behaViours

• FacilitateROPObehaviourbyofferingclick-and-

collectservices,prominenttelephonenumberson

mobilewebsites,andeasy-to-usestorefinderswhich

canmakeuseofGPS-enabledsmartphones.

• Includemobile-relevantcallstoactionin-store–

thesecanincludeQRcodesandshortenedforapps

andwebsites,productreviews,videosandmore.

• Usemobilecoupons,SMScodesrewardspointsand

geo-targetedadstodrivemobileuserstopurchase,

whetherin-storeoronline.

• Provideacustomerexperiencethatcannotbe

undercut–whilepureplayssuchasAmazonmay

beabletoundercutcompetitorsonprice,providing

astress-freeandenjoyablecustomerexperience

canassistinacquiringandretainingcustomerswho

placeapremiumonaqualityshoppingexperience.

>90%oF consuMers use the internet to research proDucts anD serVices beFore buyinG at a local store

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The actions of GAFA shape the way consumers and businesses adapt to the mobile and multichannel world

Google, Apple, Facebook and Amazon (collectively referred to

as GAFA) represent the four most powerful companies within

the digital world. Despite the fact that all come from different

roots, their activities are beginning to converge and overlap

in a way that has significant effects for all as digital becomes

a more integral part of consumers’ everyday personal and

professional lives.

Very few companies have the ability to directly compete

against GAFA in the areas in which they excel. Rather,

companies should be looking to harness the way that their

products and services provide them with ways to interact

and engage with their customers, while staying abreast of

developments that may cause damage to their business.

Such changes that have caught companies out include:

• OperatingsystemchangesinAndroidandiOS,leading

to higher than expected costs for app development and

improvement.

• TheremovaloffreeproductlistingswithinGoogleShopping,

changes to algorithms and the deployment of ‘Enhanced

Campaigns’.

• ChangestoFacebook’snewsfeedalgorithm,reducing

the opportunity for low cost and wide reach, placing a

requirement on paid advertising.

• Theemergenceofcompetitorssellingsimilarproductson

Amazon Marketplace.

In short, companies should ensure that they are not dependent

on any single GAFA-powered customer acquisition or retention

channel. They should look to diversify the ways in which they

reach and engage with their customer base so that any rapid

changes will not place them in harm’s way.

key Facts about GaFa anD Multichannel

• Googlehasa95%shareofthemobilesearchmarket

andtheypayAppleintheregionof$1bnayeartobe

thedefaultsearchoniOSdevices.

• Googlecollects57%ofmobileadrevenueinthe

UnitedStateswhileFacebook,itsnearestcompetitor,

getsjust9%.

• Googlearenolongerdoing‘mobile-only’ads.By

launching‘EnhancedCampaigns’,allcampaigns

mustnowtargettablet/desktop-onlyoralldevices

(mobileplustablet/desktop).

Facebook collects just

57%9%

Mobile aD reVenue collecteD by

GooGle in the us

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As smartphone penetration rapidly increases and more and more retail brands

add mobile to their strategy, you probably don’t want to be the one left behind

trying to catch up with the latest trends.

Many organisations have woven online into their customer strategy and many

have been weaving social into their mix but few have mobile at the heart of

everything they do.

As shown in the previous section,

consumer behaviour is changing so

rapidly that it requires constant innovation

and investment. With 65% of shopping

journeys starting with a mobile device

channel threading (customer journeys

spanning multiple devices) commonplace,

and simultaneous screening and mobile

retail sales still growing exponentially,

almost every business has a strong

business case for investment in mobile.

Velti’s survey has found that investment

into mobile has slightly increased in

recent years, with 2% more brands now

allocating between 5% and 15% of their

marketing budget into mobile. This, along

with the fact that 6% more brands have

turned 100% mobile, indicates that mobile

is now a core part of most organisations’

strategy.

Additional responses that will help

you build your confidence towards the

mobile approach of your business and its

potential ROI, are the following metrics

which a sound mobile strategy can help to

define:

• 62%knowwhattaskstheircustomers

perform on their mobile devices

• 54%areacquiringnewcustomers

through mobile

• 50%feeltheydoasmuchastheir

competitors on mobile

• 49%statethatmobileisdeliveringextra

revenue

With these in mind, it goes without

saying that adding mobile to your online

and traditional media strategy will help

you create a match for your customers

behaviours, enhance your relationship

with them, turning them into your brand

devotees and sell more products.

It is forecasted that the strong investment

levels in mobile will continue through

the rest of the year, so make sure you

take good advantage of the time left

and develop the most suitable mobile

solutions for your audience strategy.

the chanGinG business lanDscape

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How mobile is your brand?

Have

you

activ

ated

your

br

and

on m

obile

?

17%

23%

45%

11%

3%

Do yo

u us

e mob

ile to

ac

quire

new

cust

omer

s?11%

16%

47%

23%

2%

Do yo

u us

e mob

ile in

sight

s to

optim

ise ca

mpa

igns

?

10%

14%

49%

20%

6%

Do yo

u us

e mob

ile to

dr

ive cu

stom

er lo

yalty

?

10%

12%

46%

28%

4% Don’t know

We don’t do anything

We need to do more / We’ve scratched the surface

Doing it well with a few gaps

We’re 100% mobile

Brand activation shows promising growth, with 40% of brand

respondents stating that they were proficient with their

mobilisation. However, this leaves the majority of respondents

(59.3%) who felt that they needed to do a lot more.

Surprisingly, only 27% of respondents were utilising the mobile

channel to acquire new customers. Mobile is a fantastic

channel to merge your offline marketing efforts with traceable

digital interactions through Shortcodes and messaging to

activate mobile sites and app downloads Advances in geo-

locational technology and the proliferation of smartphone

devices into the consumer landscape have meant also smarter

targeting, faster response time and, importantly, accountable

revenue increases.

What share of your marketing effort is devoted to mobile marketing?

53%

14%

13%

10%

10%

5%10%15%20%50%+

The data from our survey shows that the majority of companies

(53%) are only dedicating a small fraction of their marketing

efforts to mobile. With smartphone penetration on the rise

and mobile often being the most frequently used digital

channel by consumers, the proportion of marketers spending

more time on their mobile marketing efforts will have to grow

substantially over the coming years.

Re

spo

nd

en

ts: 1

80

Re

spo

nd

en

ts: 1

71

key steps to Make your branD More Mobile

• Segmentyouranalyticstoinvestigatethedifferences

betweenmobileandnon-mobiletraffic.Usethis

insighttoexploitmobilestrengthssuchasmore

localcontent,andcounterweaknessessuchasnon-

mobileoptimisedcheckouts.Velticanhelpwiththis.

www.velti.com

• ConsideroldertechniquessuchasSMStoincrease

brandloyalty.SMScodescanbeusedtotrackthe

effectivenessofsuchcampaigns.Theyarestill

massivefunctionsinmobileutility(8billionexternal

messagesperannumintheUK).

• Exploitloweradvertisingcostsonmobilechannelsas

atooltoloweryourcustomeracquisitioncosts.

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What do you know about the impact of mobile?

No

Don’t know

Yes

13%

25%

62%

Do yo

u kn

ow w

hat t

asks

your

cust

omer

s pe

rform

on th

eir m

obile

dev

ices?

17%

25%

58%

Does

mob

ile h

elp yo

u en

gage

cust

omer

net

work

s an

d sp

read

the w

ord

abou

t you

r bra

nd?

12%

31%

57%

Do yo

u vie

w m

obile

as t

he

shop

in yo

ur p

ocke

t?

13%

33%

54%

Are y

ou a

cqui

ring

new

cust

omer

s via

mob

ile?

15%

35%

49%

Does

your

mob

ile st

rate

gy a

llow

you

to d

o at

leas

t the

sam

e as y

our c

ompe

titor

s?

14%

37%

49%

Is m

obile

deli

verin

g ex

tra re

venu

e as

a se

rvice

and

sales

chan

nel?

22%

42%

36%

Are y

ou p

rovid

ing

a tru

e val

ue

exch

ange

for y

our c

usto

mer

s?

Although our data indicates there is a clear acknowledgement

that brands on the whole need to do a lot more on the mobile

channel, current investments tell a different story. Only 33.3%

of respondents indicated that over 15% of their marketing

budget was invested in the mobile channel.

key tips to Get aheaD oF the curVe• Mostmarketersarebehindthecurvewhenitcomestomobile.Byinvestingnow,youwillbereapingtherewardsinthe

comingmonthsandyearsascustomersplaceevenmoreimportanceonaqualitymobileexperience.Earlyadopters

willgaincriticalmobilemarketshare.

• Adoptanagileapproachtomobiledevelopmentandimprovement.Thiswillallowyoutomovequicklywithrapid

changesinthemarket.

• Considerthewholecustomerjourneywhenjustifyingthemobilebusinesscase–lookingfromalast-clickperspective

willmostlikelyundervaluethechannelmassively.Investigateanalyticstoolswhichwillenableyoutoformamore

accuratepictureofhowjourneysacrossdevicesarepartofthecustomerjourney.

• Don’texpectyourwebande-Commerceplatformtoworkonmobileandtabletdevices.

Re

spo

nd

en

ts: 1

76

key tips to Get aheaD oF the curVe• Performmobileuserexperiencetestingto

understandhowcustomersuseyoursiteand

e-Commerceservicesonmobile.

• Ensurekeytaskssuchasmobilecheckout,locating

a phone number and store search can be completed

witheaseonmobilebytestingthemacrossmultiple

devices.

• Makesurethatyourmobileexperienceatleast

matchesthatofferedbyyourcompetitors.Remember

itonlytakesoneclickforausertoleaveyoursite.

• MobileKPIsandROIestimatesneedtobepredicated

uponmobilespecificactivities,notwithgeneric

digitalmarketingmilestones.Understandhowthese

contributetothebroadermarketingpicture.

• Startbuildingamobileoptindatabasefor

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How significant do you think the following trends will be over the next 12 months?

Cust

omer

Eng

agem

ent

Mob

ile W

eb

Mob

ile P

aym

ents

Loya

lty

mCo

mm

erce

In A

pp P

aym

ent

Soci

al

In A

pp N

otifi

catio

n

HTM

L5

Mob

ile M

essa

ging

(2 w

ay)

Plat

form

Con

verg

ence

Seco

nd S

cree

n

Gam

ifica

tion

1% 2% 2% 4% 2% 2% 3% 2% 5% 3% 5% 8% 16%

Very significant

Significant Somewhat significant

Not at allsignificant

4% 7% 9% 16% 12% 19% 12% 24%19% 21% 18%

30%

35%

26%25% 36%

29%34%

32%37%

34% 44% 44% 47%

37%

30%

69%66%

54%51% 52%

47% 48%

40%

32% 32% 30%26%

19%

Customer Engagement, Mobile Web and Mobile Payments

are highlighted as the top three trends our respondents

felt would be very significant over the next 12 months.

Interestingly, the core elements of the mobile mix have not

changed significantly since our last survey, indicating that last

year’s uncertainties regarding best practice have not yet been

answered.

On a scale of 1 to 3 how worried are you about the impact of each of the following issues on your business?

Games

4G

Mobile broadband

Mobile messaging

Apps

NFC

Mobile data warehousing

Location based services

Geo targeting

Mobile convergence

mWallets

Operating systems

New rich media formats

The role of MNOs (Operators)

Mobile payments

The value of mobile as a channel

The standard of delivery from the mobile industry

Customer adoption and insight

The shape of the mobile landscape over the next 24 months

Evolving and new technology

Not at all worriedSomewhat concernedExtremely worried

Marketers were also asked to list how worried they were about

a number of topics within mobile. The survey revealed that

areas that were significantly ambiguous or unclear were those

most likely to cause concern. New technology, The shape of

the mobile landscape over the next 24 months and The value

of mobile as a channel were all areas in which one in five or

more marketers said they were ‘extremely worried’.

While the speed of change in the digital (and especially

mobile) landscape can be daunting, there are ways of handling

it. Make sure you keep testing and experimenting to ensure

constant incremental improvement. Adopt agile development

practices to respond quickly to change. Look at how your

customers use and engage with your brand to gain insight that

will enable you to take action.

Re

spo

nd

en

ts: 1

71

Re

spo

nd

en

ts: 1

56

hoW to use Mobile trenDs to DriVe your eFForts ForWarD

• Audityourownmobileeffortsacrossthetrendsthat

arecomingup.Seehowwellyouengagewithyour

customersthroughmobile,howyoursiteperformsin

differentmobilebrowsers,andwhatmobile-enabled

paymentmethodsyouareoffering.

• Analysehowyourcompetitorsarealsobehavingin

thisspaceKeepaneyeonhowtheyarecopingwith

emergingtrends.

• Identifywhichquickwinsyoucanachieveto

makeprogressintheseareas.Formoredetailed

progress,createaroadmapthatyoucanimplement

asthesituationchanges.Again,bytakinganagile

approach,youcanreactswiftlytochangesin

mobileandadaptexistingproductsandservicesto

changingcircumstances.

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best practice aDVice

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www.velti.co.uk 21

FiVe steps to Mobile successAs the data from our survey of marketers has shown, few companies are putting significant

resource into their mobile marketing efforts, despite the growing impact of mobile devices on

consumer behaviour and the huge penetration levels.

To get you ahead of the field, Velti have put together this mobile checklist to help you assess

your own organisation and how mobile-ready you are.

1 Carry out a mobile auditBefore you begin any work on mobilising your business, you

should form a robust understanding of where you are now and

how you are providing services to your mobile clients.

Key questions to ask include:

• How many customers are trying to interact with your brand

through mobile? How is this growing over time?

• What do your customers want from your brand/business on

mobile?

• What key tasks do you need your customers to achieve on

mobile? Can they achieve these across multiple devices?

• What is your revenue and customer acquisition from mobile?

These are just some of the questions you should be asking,

but the key requirement is to form a set of quantitative

and qualitative benchmark against which progress and

improvement can be measured. The audit will also reveal

the strengths and weaknesses of your brand on mobile, and

enable you to divert resources accordingly.

DiD you knoW?• SMScampaignscanstartfromaslittleas2.2p

permessage*.Withasizeableopted-indatabase,

thiscanbeapowerfuladditiontoanycampaign.

SendingaURLlinkembeddedinanSMScancreate

significantclickthrough.

2 Test and improve the mobile customer journey

Are you providing an elegant mobile journey for customers?

Have you mobilised all touchpoints? Far too often, we see

brands either diverting to non-optimised websites or sending

out non-responsive emails which don’t render to match the

device format. What about your application? Is this just a

replication of your mobile website?

Key steps to follow include:

• Compare bounce rates and exit pages on mobile versus

desktop traffic. This could reveal certain places where the

customer falls out of the journey. Make sure they fall out

because they have what they need (eg. a telephone number

or store location) rather than because your site failed them.

• Check ad campaigns to make sure that your customers will

land on mobile-optimised pages. This includes paid ads,

display ads and mobile email.

• Consider mobile user experience testing. Many online

companies now exist which will conduct user experience

tests using a panel at very low costs (eg. £30 per test).

DiD you knoW?• IntheUK,62%*(Google)ofemailsarereaddaily

onasmartphone.Areyourcommunicationsnotas

effectiveastheyshouldbe62%ofthetime?

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3 Communicate a unique value proposition for your brand on mobile

Satisfy your customers through consistent and ongoing value

creation. Mobile experiences that enhance your brand offering

should be at the forefront of your mobile strategy. This is

difficult however, and requires intelligent thinking to distil core

messages down to mobile formats.

Key steps to follow are:

• Identify the core messages and values that your brand

currently uses. Think of how they can be demonstrated

on mobile devices. Cut core messages down.Consider

the ways mobile can add value. Examples include: using

cameras as barcode scanners for price comparison; QR

codes and short URLs in-store to provide more information

on products; games that use touchscreen functionality

and accelerometers within phones to provide an enriched

experience; videos detailing product information, store

layouts and brand experience.

• If mobile is not the last stage of the customer journey, assist

in leading the customer on. Provide telephone numbers and

store locators, call me click and collect functions, and use

email capture to drive the customer towards a sale.

DiD you knoW?• IntheUK,65%*(Google)expectwebsitesona

mobiletobeaseasytouseasonacomputer.

Isyours?

4 Divert budget for mobile improvements

Return is linked to investment. Are you investing the correct

amount into your mobile activities in order to see a sizeable

return? The survey results show many marketers aren’t. Get

ahead of the curve by winning budget and improving your

mobile offering.

Key steps to follow are:

• Use case studies, competitor analysis and consumer trends

to build the case for mobile investment.

• Build fast growth scalable pilots to test and innovate.

• Use analytics data to estimate the gap between performance

on mobile devices and desktop. Illustrate how the gap will

widen over time.

• Gain a human angle: use feedback on social media, from

filmed user experience testing, and comments/complaints

from customers to drive the mobile agenda.

DiD you knoW?• 53%ofourrespondentswereonlyinvesting5%

oftheirmarketingbudgetonmobile.Webelieve

thatasubstantialleadinmarketsharecouldbe

createdyourcompetitivelandscapewithincreased

mobileinvestment.LetVeltishowyouhowtogeta

disproportionateROIonthischannel.

5 Schedule regular monitoring of how well you are performing

In such a fast-moving area, what may have been applicable a

few months previously may no longer apply. Set time in your

calendar to regularly assess the directions of your efforts and

see how much you have improved.

DiD you knoW?• 45%ofoursurveyrespondentsstatedthatthey

coulddomore/haven’tbeguntheirmobilisation.Is

yourbrandinthissegment?

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www.velti.co.uk 23

MeasureMent For MobileOne hindrance to widespread adoption has been the lack of effective ROI metrics for mobile.

Different channels should have different measurements of success and this is paralleled in online

vs. mobile metrics. Mobile is utilised in very different ways to online. Therefore, the ROI should

be predicated upon different metrics specific to mobile. The steps below cover some things you

should be thinking about when it comes to mobile measurement and improvement.

Create mobile-specific goals

With so much data generated by each customer touchpoint,

understanding where to look can be a challenge. It is all too

easy to spend hours in front of an analytics tool and achieving

very little.

Therefore, the first step in effective mobile measurement is to

understand what goals you have and why you wish to track

them. These goals are the first step in identifying which metrics

and KPIs you will be monitoring to track your efforts. Mobile

response and CTAs are notably different to online behaviour

of dwell times and page views. Make sure you adapt your KPIs

accordingly.

Have in place a suitable analytics solution and dedicate resources to it

While this may seem obvious, it is not unusual for marketers

to have ineffective analytics solutions deployed which will

prevent true insight being developed. This is particularly acute

for app usage. Make sure you have the right tools in place and,

crucially, someone with the time to get insights out of the data.

Make sure your analytics are correctly tagged

On campaigns you run, make sure any links you share or use

in a campaign (eg. in paid search, on social or email marketing)

have correct tagging on them to allow you to understand the

sources and media that are contributing to your efforts and

build them into your big data strategies.

Look at landing pages, exit pages and keywords to identify user intent

Seeing what the most frequent first and last pages of a

customer visit are and the keywords they use to reach your

site will provide an indication of the key tasks that your users

are trying to achieve through your site. Make a case for your

customers to buy on mobile devices using ‘nudge’ principles.

Mobile customers use their smart devices to search for your

store locations, compare products/prices or research features,

and finally head into store. Econsultancy’s Multichannel Retail

Survey found that 32% of consumers in the UK and 41% in the

US had used a mobile device to find a retailer’s nearest store

and opening times. Find out what pages and keywords are

being used on these customer journeys.

Reassess your KPIs frequently

As mobile is such a fast-moving field, KPIs that you had last

year may not be relevant today. Keep an eye on how useful

they are and be prepared to change them, but retain the main

stays as you can track growth on the mobile channel.

Finally, but most importantly, use your insight to drive change

One significant problem with web analytics and measurement

is that, although companies produce a glut of reports, little

action is taken to make best use of the data collected and

improve the processes through which the company operates.

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Mobile tactics For your MarketinG FunnelWhatever version of the marketing funnel you use, mobile can play a key part at every stage of

the customer journey.

Below are some tactics you should consider implementing to make best use of the mobile

opportunity. Velti can help you each step of the way.

AWARENESS

ENGAGEMENT

CONVERSION

RETENTION

Mobile Advertising (Mobclix)Mobile Ad Serving

QR Codes, Shortcodes and KeywordsSMS Messaging

Mobile Sites and AppsMobile Alerts and Notifications

Mobile Community ManagementURLs Embedded in Shortcode MT Responses

Large Scale PromotionsInventory Monetisation

Mobile Payments

Multichannel Loyalty Solutions

mCRM Solutions

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case stuDiesCase studies can help you prove the business case for

investing in mobile. Velti has helped the following clients

drive outstanding results.

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VoDaFone FreebiesThe Challenge

The UK is one of the most competitive

telco markets in the world. With more

mobile devices than people and a large

number of networks operating on thin

margins, it can be difficult to retain

customers – especially those on pay-as-

you-go (PAYG).

Vodafone in particular wanted to retain

customers by building brand loyalty and

reducing the churn rate of its customers.

The solution, powered by Velti, was its

rewards programme called ‘Freebies

Rewardz’.

The Solution

For every top-up over £5, customers

received a code via SMS. Customers

could then use this to grab instant

Rewards or grow Points to save up

for something bigger. Prizes included

Vodafone Network prizes, third-

party prizes and discounts, and a

mystery Star Reward. The solution

was complemented by TV and above-

the-line advertising, as well as online

advertising and engagement through

social channels.

The Result

The results were significant. In total:

• 4.9millionusersparticipatedinthe

loyalty program.

• 12.6rewardswereredeemed.

• 92%choseto‘grow’theirrewards,

indicating increased loyalty and higher

brand retention.

Walkers hoMeGroWnThe Challenge

Walkers (PepsiCo) are the most popular

crisp brand in the UK market. However,

with the rise of premium crisp brands

and a large number of other options to

choose from, Walkers needed to engage

customers in order to increase their

consumption and drive sales.

The Solution

The solution for Walkers Homegrown

was to use the opportunity of the

connected consumer to engage with

customers on multiple devices and

channels.

Over six years, Velti has worked

with Walkers to increase loyalty and

engage their audience on a number

of successful campaigns that have

included ‘Brit Trips’, ‘Gary’s Great Trips’,

and ‘Do us a Flavour’.

The Results to date

300 million web sessions, 1.6 million

registered users on Walker’s properties,

900k opt-ins to communications, a 53%

email open rate and five million entries

to competitions. Velti has enabled an

FMCG brand to be as relevant as ever

across digital channels in the rapidly

changing mobile and digital multi-

channel landscape.

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www.velti.co.uk 27

saMsunG hope relayThe Challenge

To leverage Samsung’s investment as

official sponsor of the Olympic Torch

Relay. Samsung wished to build brand

equity through individual experience

and reach beyond attendees to relay

participants plus spectators in the UK

and 10 other countries in order to give

everyone the chance to be part of the

Games.

The Solution

To build a personalised app experience

to encourage participation.

Velti created an app that allowed users

to run, walk or cycle, and track via GPS

their miles covered while raising money

for charity. In order to maximise reach,

the app was developed for Android,

iPhone and Samsung bada, as well as

share and monitor personal and team

success through Facebook.

The Result

In the UK, Samsung donated £530,317

to children’s charities ‘Kids Company’

and ‘International Inspiration’. The

app was downloaded 369,454 times

(122,670 in the UK) with donations from

48,386 people in 11 countries (the UK,

France, Italy, Netherlands, Spain, Poland,

Hungary, Serbia, Russia, Brazil and

Belgium). Between them they covered

over one million kilometres.

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MakinG it happenstrateGy in action There is immense business opportunity in mobile. Failure to mobilise your

business, quite simply will mean you will start to lose market share.

The incredible pace and diversity of technological advancements means

it’s essential to get the basics right before moving onto advanced

marketing techniques.

Our approach at Velti is to listen to our clients’ immediate revenue

growth and cost-reduction aspirations and help our clients to shape a

mobile strategy that forms a key strand of their overall business strategy,

including brand experience, customer service and IT strategy.

By putting the consumer at the heart of the mobile and multichannel

digital strategy, we can build a trusted relationship and a roadmap of

initiatives to maximise the benefits and minimise the risks, based on

our sector-specific knowledge and our experience in helping clients to

mobilise their business, and to drive brand and revenue growth.

www.velti.co.uk

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hoW to contact us

+44 (0)20 7921 5560

[email protected]

www.velti.co.uk

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