Marketers: Now Is The Time To Act On The Mobile Opportunity

Thomas Husson

Mobile phones have changed not only the way we live and communicate. They have also changed the way we think. Customers have experienced a mind shift: They expect any desired information or service to be available, on any appropriate device, in context, at their moment of need. Technologies packed in mobile devices enable people not only to instantly consume but also to create content and maintain greater control in their everyday lives.

Customers' behaviors are becoming as sophisticated as their devices. Mobile has become the new digital hub. According to our Technographics data, 47% of European online adults who own a mobile phone use mobile apps at least weekly. Forty-five percent browse the Internet at least weekly, and 38% search for information on mobile search engines, too. In the US, 50% of online adults who use a mobile phone use their devices to check sports, weather, or news at least weekly. Forty-five percent access social networks on their phones at least weekly, and 22% research physical products for purchase! This implies that you must have a mobile component for your digital strategy. But it goes beyond this, as mobile is bridging the offline and online worlds.

Yes, mobile is a hot topic. Reading the press or listening to conferences, you may be under the impression that marketers have embraced the mobile mind shift and are really integrating mobile into the marketing mix. A significant majority of marketers told us that their senior leadership team understands the importance of mobile.

Really? We find this hard to believe.

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Despite Impressive Growth, Facebook Is Facing Mobile Ad Challenges

Thomas Husson

Facebook now has 819 million mobile monthly active users. That’s a huge audience. That’s actually 71% of total active users.

Yesterday, Facebook reported they generated 41% of total ad revenues via mobile. That’s pretty impressive considering they generated nearly 0% end 2011 when they had already 432 million mobile monthly users. Since the launch of mobile ads in 2012, Facebook steadily increased the share of mobile in total ad revenues: it was 23% end 2012 and 30% in Q1 2013.

There is still a monetization gap in comparison to the share of their mobile audience, but that’s definitely impressive for a new product.

There are a couple of reasons for this sharp increase.  Time spent on Facebook is meaningful. Facebook’s mobile ads integrate well in the natural flow of Facebook’s news feeds. They are quite visible and are increasingly successful at driving mobile app installs. According to our European Technographics Consumer Technology Online Survey, Q4 2012, 16% of online adult smartphone owners (ages 16-plus) who use apps report that they first learned about an app via social networking websites such as Facebook. No wonder why the likes of Fiksu and other app boosters spent a lot of money on Facebook mobile ads.  Cost per click increased despite a lot more clicks and ads shown.

For this approach to be successful in the longer term, there are a couple of key questions to be answered:

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Augmented Reality - Using Games As A Marketing Tool To Drive Traffic To Your Physical Locations

Julie Ask

This is my last, "I saw this cool thing in mobile today" blog for the week.

Check out this video

The video is called "Field Trip" and shows off some of the features of Google's Field Trip app. It's a short, but extremely compelling video that shows how mobile can be used to personalize your world - whether it is a wander about the bay area (this video) or your childhood home. You can consume someone else's story or tell your own story. Not to be creepy and it isn't Halloween, but what if you could use augmented reality - digital overlay of content triggered by location or recognizing an object/symbol - of grave stones? Visiting a cemetary could be SO cool. Visting your apparel shop, grocery store, airport lounge, restaurant, bank branch, healthcare clinic could also be cool IF you use your imagination. 

Google's Ingress game layers both content and a game onto the physical world. (watch the video)

What's in it for the eBusiness professional? 

I'm not necessarily suggesting a scavenger hunt in your store. Ingress + Hint Water did pull this off - not a hunt, but what is a game that combines digital with the physical world as a game board? I remember when Starbucks ran a scavenger hunt that started with a SMS-based trivia game more than five years ago. It was a huge hit. 

Check out this campaign

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Why Can't I Get Service IF I Don't Own An iPhone?

Julie Ask

There are several things that caught my attention about this article - 

 

1) The iPhone displayed as part of the overall cover story photo. The service doesn't work without a mobile phone - and in this case an iPhone. 

2) Only works - it seems - from the article for iPhone owners

Is it okay to target iPhone owners only? They representat a lucrative target and ... you can't serve every customer. You can't build for every platform. 

Don't Confuse Tablet And Mobile Marketing

Thomas Husson

Too many marketing leaders still lump tablets and smartphones into the same mobile bucket. That’s a mistake. Why? Because tablets are not primarily mobile devices. Instead, they are mostly used within the home. Marketing leaders must create a differentiated tablet experience or risk dissatisfying their best customers and missing opportunities to engage when customers discover and explore their products.

Here are the key takeaways from new research I conducted in the past few months:

  • Tablet marketing matters. Tablet marketing enables marketers to engage with influential customers who spend less time on PCs and print media. People use tablets differently from smartphones, requiring marketers to adapt their approach.
  • Marketers should use tablets to enhance discovery and depth in the digital home. Marketers will see the benefits of designing immersive tablet experiences for people discovering and researching their brands and products. They should use search marketing to drive better conversion rates and tablet commerce. And they should maximize TV ads by creating tablet extensions for multitaskers as well as creating new marketing experiences in the digital home.
  • Shift to contextual marketing. Most of us have only had mobile phones for, at most, 12 years. I have already explained here why we’re all mobile teens, figuring out our relationships with others and with brands. Unsurprisingly, marketers face challenges integrating mobile and tablet in the mix. It’s time to stop thinking about devices and instead shift to thinking about contextual marketing.
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Q&A with Arthur Calderwood, Senior Vice President, Marketing & Sales Operations, SITA

Christine Overby

In the run-up to Forrester’s Forum For Marketing Leaders EMEA next week, I also had a chance to connect with Arthur Calderwood, Senior Vice President, Marketing & Sales Operations at SITA, in advance of his Marketer Spotlight presentation one day one of our event. Arthur will be speaking about how at SITA he blends experiences, products, and messaging to achieve the brand vision. Check out a preview of Arthur’s session in the below Q&A, or join me in London, May 21-22, to hear SITA’s full story. 
 

Q: Does content and thought leadership play a more important role in B2B branding today? At what stage in the customer lifecycle does content make the biggest impact?

A: Content is critical in building credibility and also as a way to differentiate versus your competitors. But from a B2B perspective you have to be sure you are or can be seen as a credible thought leader with the right expertise to deliver valuable content and opinion. Many companies end up writing pieces which are often too generic, do not deliver real value and unfortunately blend into the mass of other communication on the same topic. Strategically you need to carefully pick the topics you will address, possibly partner with another credible source on the topic, conduct some primary research and be willing to take a stand in the discussion. At SITA we have, for the air transport industry, run a series of annual trend surveys and reports (Airline IT Trends, Airport IT Trends, Baggage & Passenger Self Service trends). These provide us with a platform to write content, released through all channels, to engage the market. They are fortunately unique in our market and have established SITA as a credible source for this type of know-how.

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We Are All Mobile Teens

Thomas Husson

To borrow from McCann Truth Central, most of us have owned mobile devices (not to mention smartphones) for, on average, 12 years — and we’re still figuring out mobile phone behaviors and the impact of mobile on our relationships. We have distinct mobile personalities.

This means we’re all mobile teens, trying to envision our futures and figuring out our relationships with others and with brands. If mobile marketing is entering the teenage years, then needless to say, tablet marketing is in its infancy.

To draw the analogy a step further, let’s consider marketers as parents. What does this mean? It implies that marketing leaders should help their kids grow and develop, play to their strengths, accept their differences, and reinforce their identities without forcing them to become what they are not. It means that the future will be full of surprises, with unknown territories and new use cases to come for not only smartphones and tablets but also reinvented laptops and personal computers. A lot of the attention will be paid to the new baby (the tablet), certainly creating some conflicts with the older sibling (the smartphone), which is particularly keen to become independent despite its relative immaturity.

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What You Can Learn From Facebook's Approach And Mistakes In Building Mobile Services

Julie Ask

I listened to the Mark Zuckerberg interview from the  TechCrunch Disrupt event in San Francisco this week. 

There were a few choice quotes (I'll paraphrase them here - these are not literally a transcription. You can find the video/audio on the TechCrunch site):

"The biggest mistake we made (with our mobile services) was relying too much on HTML5 and for too long." 

"We finally realized that a good enough mobile experience would fall short. We needed a great mobile experience. The only path to great is native on iOS and Android." 

"Our mobile users are more engaged and use our services more frequently." 

"All of our code is for mobile."

"We'll build native code for iOS and Android." (And it is building for iOS first)

"Ads can't be standalone on a sidebar in mobile. They need to be integrated into our product." 

"We reorganized. A year ago, 90% of the code check-ins were from the core mobile team. Now 90% comes from other parts of the organization." 

"We reorganized. We were in functional silos. We now have product teams (responsible for delivery)." 

"A Facebook phone doesn't make any sense." 

Some context. Certainly, Facebook is unique with it being a media-centric company and very global. It does need mobile Web to reach much of its audience - now nearing 950M. For many companies, mobile Web will continue to be a relatively low-cost, broad-reach play to get to most of the phones. Mobile Web doesn't go away, but it is not where the differentiation will happen - at least in the near term. 

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Why Apps Aren’t The Killer App For Mobile Marketing

Nate Elliott

It was more than 10 years ago that I listened to my first sermon about the growing importance of mobile as a marketing channel. It was late 2000 or early 2001; I was working at DoubleClick at the time, and my boss left the company to join a mobile startup, claiming we should’ve already had a mobile ad offering in place because it wouldn’t be long before smartphones replaced PCs entirely.

Suffice it to say I’m still waiting anxiously for a chance to throw away my computer -- and likewise, marketers are still waiting for mobile to become a genuinely important marketing channel. It’s not that they’re pessimistic: In fact, the marketers in our surveys rank mobile just a hair behind social media in terms of channels they think will grow in effectiveness over the coming years. But anticipation has never quite equaled reality -- and so most interactive marketers across the US and Europe continue to bide their time, waiting for a mobile marketing opportunity that’ll match the hype.

And that’s where mobile apps appear to come in. Few interactive marketing opportunities are more hyped than mobile apps, but in our search for a mobile marketing channel that really works we’ve lost sight of one crucial point: Marketers’ target audiences don’t care nearly as much about branded applications as the marketers themselves do. In fact:

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Apple Is Tracking Us! Oh No! Who Cares, Really?

Julie Ask

Apple has been storing our location. (See article) Sounds bad, but really, is it? My colleague Joe Stanhope forwarded the article to me with the line, “kinda scary.” Is it? Our credit cards track where we are and what we spend. The carriers know where we are all the time — they aren’t storing the information as far as we know, but they could be. Our cars can be tracked. We buy plane tickets and make flight reservations online. What’s a bit different is that many different entities have our information, but not necessarily one.

Your phone will know everything about you going forward. My phone already knows where I go (ok, and Apple is recording), who I call, what sports teams I follow, what games I play, where I bank, how often I visit Starbucks, where I shop, what books I’m reading (Kindle), what music I listen to . . . and the list goes on. What else is my phone going to know about me? It’s going to know:

  • What I eat because I want help tracking calories
  • How often I run because I track my workouts
  • What I watch on TV because my phone is my remote control
  • Who I fly . . . because I use mobile boarding passes
  • How healthy I am b/c it will track my cholesterol
  • Who my friends are from phone, texting, and Facebook
  • Where I’m eating b/c it tracks my Yelp searches and OpenTable bookings
  • Whether I’m traveling on foot or by car b/c it tracks my speed
  • How fast I drive . . .
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