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%.
Most of the news this morning at WWDC was around iPhone 4 and iOS 4. Will leave the new device and platform play to my colleague Charles Golvin. I can't wait to get one of the new phones . . . very slick as it looks like a mini iPad in a modified format.
iAd . . . $60M committed for the second half of 2010. Initial advertisers include: AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever, and The Walt Disney Studios.
Pretty impressive. How do they get to $60M? Rumor is that the minimum buy-in is $1M, but it goes up from there. They claim to have 50% of mobile ad market share according to a J.P. Morgan study. I think it is a bold claim unless this is purely the media spend and doesn't include creative. Our number is comparable -- but without creative. Advertisers can count on the buzz surrounding iAd's launch on July 1. That alone may justify the initial buy. These initial advertisers are a smart bunch. A few million dollars isn't much to any one of them, but these are sizeable buys for mobile.
I think there are a lot of interesting questions to be answered. Many will be "wait and see," but here's my wishlist:
- What do I get for $1M+ in mobile advertising? Am I buying creative, development, ads, and analytics?
- How much targeting do I get?
- Is it performance-based? Or CPMs?
- What will work well on the i OS4 devices? Branding? Or, will the ads leverage context -- the context of how, where, and when I use these devices? Will the ads drive me to online purchases or into a nearby store to make a purchase?
- How much control do I get over where my ads are placed?
I get this question a lot from clients, and I saw a good example today so . . . I thought I'd share. How should we promote our services? Should we use TV? Online? Banner ads on cell phones? What is most effective? The high-level answer is "yes." Most of our clients are pursuing using their existing media -- whether it is ATMs in the case of Bank of America, the Web site for Walgreens, or TV ads by ESPN. Many are also using banner ads on the devices with which their devices are compatible. For example, they buy iPhone ads because the audience is right, and they can connect into the App Store on the application page.
Was watching ESPN this morning and saw a commercial advertising mobile TV in preparation for the World Cup.
What they did right and what I liked:
1) Used their existing media (TV) to promote mobile services. They also used an "event" (= World Cup) as a catalyst to promote their mobile TV service. With the World Cup being played in South Africa, there will be games at night, during the work day, and at many other times when people are unable to sit in front of their TVs.
2) The ad on TV gave the viewer context. "When would I use this application?" "Where would I use this application?" The TV ad shows the person switching on mobile video when he gets out of bed, is in the bathroom brushing his teeth, parking his car, and at work. They also demonstrate the quality of the application with zoomed-in views of the video service.
When the Apple iPhone App Store launched a couple of years ago, we saw a flurry of marketing applications released. Some were exceptional. Many were average. iPhone apps were "hot," and consumer brands rushed to build them. They were somewhat expensive with most of the return based on press mentions and buzz. Brands felt that the perception of tech-savviness generated by the presence of an iPhone application would enhance their brand. I think they were right, but soon consumers began to expect iPhone applications. Initally, the iPhone didn't offer much reach. The iPod touch helped build the numbers. Apple's most recent announcement put total sales at over 80 million. Pretty good.
Two years ago, consumers mostly used their cell phones for communication. They also listened to some music and got a bit of weather, traffic and news. Now ... they do just about anything. They shop. They research products. They blog. They look up recipes. Are they doing so in large numbers? No, not yet. Consumers are a lot more likely to do more complex tasks on smartphones like the iPhone. The stakes are much higher for marketers - the potential return is higher with the ability to generate real leads and sales.
Here we are in 2010. Apple recently announced sales of 1 million iPads. Forrester believes that number will at least triple by year end. Apple has launched the iAd platform and promised consumers an engaging media experience that will include advertising, but not be disrupted by it. iAd includes the iPhone platform. iPads add another dimension or canvas that will unleash advertiser/agency creativity. We are now seeing our first marketing (first perhaps) and commerce (secondary?) applications. They are engaging. They offer rich media. They are interactive. They offer opportunities to link to videos, music, social networking sites, and shopping.
I just returned home from a trip to Bangkok and Bhutan. Civil unrest in Bangkok kept me from wandering as much as I would have liked. I had a lot of opportunity in Bhutan, however, to wander about and talk to people. As a bit of a background, Bhutan is a land-locked country bordered mostly by India to the south and China to the north. Much of the northern portion where we traveled is covered by mountains, so wireless is the primary infrastructure for communications. The average annual income is about $1,300, so they are not a wealthy nation. They've only been allowed access to TV and the Internet for about 10 years.
A consumer brand might argue that in a country where the annual income is only $1,300 and little infrastructure exists for the import of goods, there isn't much point in marketing -- let alone a digital marketing strategy that includes mobile. Countries like these are opening up, however, and their wealth is growing. Personal care products and Coca-Cola was on the shelves in most of the small shops we passed. In a country where cell phones certainly outnumber PCs and cellular connections (even if prepaid) must outnumber fixed, mobile has to be part of the mix.
Teenagers had cell phones. One of my guides had a Nokia N73 and the other had a Nokia Xpress Music. These aren't dumb or cheap text-only phones. They have high-resolution screens and are capable of music, videos and Internet. (My guide was checking and posting to Facebook DAILY.) Monks had cell phones. Women selling vegetables in open-air markets had cell phones.
Following its acquisition of Quattro Wireless for $275,000,000, Apple has just announced the launch of iAd, its mobile advertising platform (see my colleague’s take here). Adding the $750,000,000 that Google is ready to invest in AdMob (the deal is still under FCC scrutiny), the two most disruptive new mobile entrants have invested more than $1 billion — a clear signal that mobile advertising has long-term potential. The main difference between Google and Apple is that Apple is only just entering the advertising business, while Google’s entire business model simply IS advertising. However, that potential has yet to be realized. Does that mean stakeholders can generate significant revenues in the short term and that operators will be bypassed once again? I have read in various places some strange comments suggesting that Google’s mobile ad revenue share with mobile operators would be a way to finance network evolution. Just compare the cost of a base station and the significant investment required to finance 4G with absolute mobile advertising revenues and you’ll quickly figure out for yourself that this is unlikely to happen anytime soon. This is more of an online advertising discussion around the Net neutrality debate (remember France Telecom’s CEO warning that he was not “building freeways for Californian cars”!) but it will crop up later for mobile.
Apple announced iAd today as part of their OS 4 program today. I speculated in this post on why they purchased Quattro Wireless a few months ago, but now we have more details. This post is on iAd only - my colleague Charles Golvin has a more complete analysis in his post.
First, looks like Apple will leverage Quattro's business model and use their sales force to sell ads. This should work early on for large buys.
They are continuing to be very supportive of their developer community with 60% of the ad revenue going to the developers. Not a lot of details now, but this could be generous. Part of the revenue needs to go to the sales team as well. There will be less leftover for Apple. Models such as Admob's have more of a self-serve model that have the potential to be more cost-effective especially with smaller buys. The types of companies that will have the budgets to develop interactive ads that take full advantage of the platform - accelerometer and location plus rich media - will have the budget to spend on media as well - not just on the creative.
Beyond developers, Apple is continuing their focus on the consumer experience. They are looking to protect the quality of the user experience by controlling the ad experience. Steve has raised the bar on quality of mobile ads by keeping consumers within their existing application or experience. He anticipates that the ads will be engaging enough to be considered entertainment.