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.
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.
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:
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
Mobile marketing spend is forecast to hit around 750 million by the end of 2011 and more than 1,250 million by 2014. However, the number of consumers exposed to mobile advertising is still low. In fact, Forrester Technographics surveys shows that two-thirds of online mobile consumers don't remember being exposed to any mobile ads. Of those who had been exposed, the majority (52%) didn't take any actions. For those who did respond, calling a local business or storing a number as a new contact were the most popular activities.
But just because many consumers haven't engaged with mobile marketing yet doesn't mean they don't want to. In fact, 13% of online mobile consumers say that they would like to receive coupons to be used while shopping and 10% would like to be able to look up product information. About one-fifth of online mobile consumers are open to receiving SMS messages from companies in return for promotions, discounts, or free downloads(and this number jumps to more than one-third of Gen Yers).
But to be successful at their mobile efforts, companies need to determine which type of engagement will work best with their target audience and what key objectives resonate most. For example, are you trying to drive awareness, foot traffic, or campaign involvement? Understanding these objectives will help determine whether your organization should engage consumers through an SMS campaign offering a reward or whether it should try to intercept consumers while they are searching.
About four or five months ago, I was on a United flight bound to the east coast from San Francisco. For reasons I don't remember, I had booked the ticket on Orbitz (I usually book directly so my records, receipts, etc. are all in my profile). Am boarded. Am sitting in a middle seat. Sigh. "Ping" goes my phone. I receive an alert that our flight has been delayed 20 minutes. I open my bag and pull out a salad. The two gentlemen in between whom I am squeezed look at me oddly and exchange glances as they expect the doors to close and the plane to back away from the gate. Salad finished. "Ping" goes my phone again. There is a maintenance issue with the plane. The "equipment" is being changed and we are being moved one gate over. I begin packing up my things, remove my seat belt and give the guy on the aisle my look that says, "are you moving or what?" He says to me, "where are you going?" I say, "equipment + gate change." He says, "how do you know?" I say, "SMS alert from Orbitz." He says, "What is an Orbitz?" More puzzled looks are exhanged. (Do I really want to explain a text alert in the year 2010 to someone who doesn't know what Orbitz is?) Several minutes later there is an announcement from the flight attendant with the same information, and everyone gets up to move. Now my fellow passengers are more intrigued. A third party is more efficiently delivering information to United's passengers than United is to their agents or customers directly.
I don't know how many times I've seen this poster in a United Airlines jetway and wondered, "Is this recent? or 20 years old? Do a lot of doctors fly? Is that why they advertise pagers?"
I was walking through DuPont Circle in Washinton DC last week. I stumbled upon Axis Salon. I was so intrigued by the glass storefront that I had to hang up the phone and stare. The salon front was COVERED in QR codes!!!
Close-up of shop name:
Instructions to download: (they recommend 3GVision's i-nigma)
They should be telling consumers more about what phones are compatible, probably. There should probably be more instructions, but at least they OFFER instructions.
Scan the code ... link to a Web site with a coupon.
It's pretty basic, but very effective. They must have a lot of people asking. It's certainly driving buzz - I mentioned it to a couple of people I met in DC, and they knew about it. Partial instructions available. Lack of compatibility with most phones ... maybe an issue, but those who don't know about 2D codes are probably also less likely to ask. Fun.
So, driving to work this morning, and I hear Chase advertising its remote check desposit service for the iPhone on the radio. This article has a good set of screen shots and description of the user's experience. Hard to imagine even 5 years ago a couple advertising a mobile service or application. How far we've come. Even three years ago, it was mostly Apple.
One of the top reasons companies give for building iPhone applications and mobile services is marketing -- the connection of innovation and technology to their brand. Chase was giving both instructions to existing iPhone owners to download as well as new customers. A very convenient mobile service being used to draw in new banking customers. It is using the availability of an interesting new feature -- and not simply "free checking" or "low interest rates on mortgages" -- to advertise Chase. It is using the availability of free services -- free mobile services.
What works well in mobile? Broadly speaking - Convenience. We define the benefits of mobile services as:
1) Content, whereby the user assesses value to the immediacy of having it now.
3) Context (e.g., location).
Here's a great chart from Ground Truth with its analysis of unique visitors viewing soccer content during key moments of the World Cup. ESPN designs a great application, but this service really resonates on immediacy.
See our Yahoo! Fantasy Football report for an in-depth case study on the value of mobile-only and multichannel customers.
One of the significant shifts in consumer mobile behavior identifed by Forrester in the past two years has been the increase in use of the Internet on mobile phones. The growth has been staggering -- consumers don't typically shift their behavior this quickly. One of the reasons has been growth in the number of smartphones we own and use. Great user experiences delivered by great user interfaces on phones and fast networks have been part of that smartphone upgrade as well. The AdMob data shows that smartphones generate 46% of its ad requests.
Download the report for a deep dive. Look for the growth in the number of countries where individuals are using their cell phones to access the Internet. We've also seen a new category emerge - "Mobile Internet Devices." See its breakdown of iPad ad requests. The US generates 58%, with Japan second at 5%.