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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Got a Plan for Marketing Summer Camp?

Lori Wizdo

For B2B marketers, June 30th can have a ‘last day of school’ feel about it.  It’s a chance to catch our breath after a full slate of Q1’s kick-offs and launches and Q2’s promotions, tradeshows and roadshows.  But, like today’s kids, who no longer while away the summer playing in the woods or frolicking in the pool, today’s B2B marketers need to use the summer to improve: to build new skills, expand our horizons, and prepare for the new adventures that await us in the fall.  Think of it as Marketing Summer Camp. 

If I were the Activities Director at Camp B2B, I’d build a program of reflection, assessment, and improvement with a focus on::

People:  Make learning a priority.  

Pipeline: Take a hard look at marketing’s contribution to the revenue pipeline. 

Process: Identify your conversion weak spots and remediate. 

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16 Ways To Turn Content Marketing Into Business Value

Ryan Skinner

According to Digiday, current affairs website Slate demands minimum $100,000 from brands to build an “advertising content program”. Forbes asks for $50,000 a month to give brands a platform for publishing content on their site. And many companies are spending as much or more on their own content sites.

Given the mighty spend, the silence around the economics of content is deafening. There’s the high-level question of content marketing ROI­–a topic larger than any blog post. But, at a more basic level, how many marketers plan how and where their content drives business value?

Call this the content impact model:

If marketers create and distribute content to generate value, there are two simultaneous and non-exclusive paths by which value is created:

1.    Intrinsic: Consumption of the content itself brings value to the brand, by making the reader/viewer aware of the brand, its expertise or products.
2.    Extrinsic: All of the value that can be extracted by a reader/viewer arriving at or opening the content (but not the content itself).

This post looks specifically at extrinsic value. This value is created or released by mechanisms that I’ll call catalysts of content marketing value.

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Effectively Harnessing Chinese Video Platforms For Marketing Success

Xiaofeng Wang

If you still consider online video advertising merely as a complement to TV advertising in China, then you are wrong. My latest report “Marketers Embrace The Power Of Digital Video In China” tells you why.

In this report, based on the analysis of Chinese online consumers’ video consumption behavior and marketers’ spending intention, we conclude that online video is becoming mainstream to both Chinese consumers and marketers.

  • Consumers embrace online video and ad-supported entertainment. Forrester’s Technographics® data shows that 95% of metro Chinese online adults watch videos on a computer at least monthly, compared with 49% in the US. Also, 72% of metro Chinese online adults prefer advertising-supported free content over pay-per-view content.
  • Marketers are shifting ad budget from TV to online video in China. Unlike in the US and Europe where online video is taking budget from print or direct mail, marketers in China begin to shift ad budget from TV to online video.
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The Viewability Standard Will Shake Up The Display Ads Industry, But Ultimately Benefit Publishers

Susan Bidel

Since the day the very first banner ad appeared nineteen years ago, advertisers and publishers have defined a served impression in a multiplicity of ways.  Today, advertisers have little confidence that what they are buying is what they are getting, a factor that is contributing to the downward pressure on CPMs for display ads.

The Viewability initiative, slated to take effect formally in 2014, is the industry’s first step toward remedying the uncertainty about actual served impressions.  It establishes a base line definition of what a viewable impression is and basic rules of engagement for the display ad industry, both of which I think are critical to its long-term viability. 

It seems to me that agreement and implementation of a viewability standard starts the industry down the path of greater appreciation for content, context and the important work that publishers do. This is why I chose it as the topic for my first report:  “Viewability Brings Transparency To The Display Ads Market.” In it, I examine the current state of affairs in the digital display market, review what publishers and marketers have to gain, and examine the costs involved in preparing for and executing on viewability.

A few findings from the report are particularly relevant for publishers:

  • Viewability will be table stakes by 2014. The host of technical obstacles will be overcome and a sufficient selection of measurement vendors will be accredited to allow for choice of partners
  • Accommodating the new standard offers publishers the opportunity to re-think site structures in order to optimize performance for both their constituencies – advertisers and consumers
  • New packaging and pricing options will emerge
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5 Years And 50 Billion Downloads Later, Apple Still Leads The App Store Economy

Thomas Husson

 

More often than not, people refer to 2007 and the launch of the iPhone as the key milestone that changed forever the mobile industry. Despite an incredible device, Apple struggled the first few months because its business model relied on sharing revenues with telecom operators instead of letting them subsidize its smartphones. The key milestone was in fact July 2008 and the launch of the Apple App Store because it symbolized a new era: the shift from hardware to software in the mobile industry.

While Apple was not the first app marketplace, it is fair to say it created the App economy. 5 years and 50 billion downloads later, where do we stand?   

  • App Stores: A Unique Opportunity To Engage Consumers Directly

Ask console gaming companies what they think of disruption created by app stores (now a generic term following the end of the “app store” name lawsuit between Apple and Amazon) and you’ll get a sense of what the app economy is. We’re scratching the surface of changes to come but clearly the app economy enables brands (including those who do not have a  retail presence) to get insights on consumer behaviors to create new products and to distribute them at much lower cost. Numerous consumer app stores have flourished (more than 70 different Android-based app stores in China!) but few are really succeeding. Google Play has surpassed the Apple App Store when it comes to the sheer number of available apps and both have surpassed 50 billion downloads leaving competitors in the dust. However, volume does not matter so much any more. This is all about usage, personalization and recommendation.

  • App Monetization: Not There Yet
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Let's talk content marketing

Ryan Skinner

"What's at the heart of content marketing?"
"Why does content marketing make sense for me?"
"How do I do it well?"

Chances are, you're asking yourself one or, indeed, all of the above questions. And that is why I have decided to join Forrester's Marketing Leadership research team as a senior analyst.

I've been working with content marketing since 1998, well before it was called content marketing, and most recently at an agency that specialized in it, Velocity Partners. Before that, I helped major Scandinavian brands like Kongsberg and ABB understand how to weave content marketing in their marketing strategy and mix.

Every time I discuss content marketing with practitioners, two observations regularly surface:

1. It's very powerful. The idea of doing marketing that customers want, that they even seek out, is enticing. It can create a virtuous cycle that makes everything else (social media, email marketing, events and campaigns) much more effective. Red Bull is the consumer brand poster boy for this, but companies as diverse as GE, Hubspot, American Express, Ford and IBM are also doing it well.

2. It's very difficult. Most brands have very little experience making content that customers want and seek out. Producing great content-driven experiences, repeatedly, over time and with a limited budget, that deliver visible value for customers and prospects, and that drive business outcomes for the brand, is hard. It's particularly hard for marketers accustomed to a product-benefit or brand benefit frame of thinking, and the big bang ad campaigns that go with it.

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SalesForce/ExactTarget Deal Means More Complexity For Marketers

Shar VanBoskirk

This morning, salesforce.com announced plans to acquire marketing technology ExactTarget for $2.5 billion, a 53% premium over ExactTarget's (ET) closing price on Monday, June 3, 2016. My colleague Rob Brosnan and I put our heads together to think about the ramifications of this deal for the marketer clients we work with.

We think the deal is a win for salesforce.com (SFDC). It brings SFDC market-leading campaign execution capabilities to round out SFDC access to customers (and their data) across the decision cycle. For B2B marketers, especially those already using ET’s Pardot, the deal brings good integration and development possibilities. But the deal goes much further than B2B, and it isn't so rosy for ET’s B2C customers. We expect:

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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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