Borrell Conference on Local Media (Mobile)

Mobile Marketing Association 1

“We Hired A

Guy” Musings on the Mobile Marketing Opportunity for

Publishers

Borrell Online Advertising ConferenceNew York City

March 3rd 2011


Intro: Mobile Marketing AssociationWorld’s first global media trade group:

Operations in APAC, LATAM, EMEA & North America

750 members Big Tent approach: Marketers, Agencies, Publishers &

Media Sellers, & Carriers/Aggregators

Mission: To make Mobile Marketing an indispensible part of a marketer’s marketing

mix

Mobile Marketing Association

slide title2 Decades Digital Strategy Experience


3 Topic’s Today

1. Mobile’s Time is Now (?)2. Insight from (Digital) History3. Value of a Mobile Local Future



Mobile is On EVERYONE’s

LipsMobile Marketing Association


Mobile: Faster Than Any Before


But Even MORE Direct…

“If your plans don’t include Mobile then your plans are

not finished.”

Wendy ClarkSVP Integrated MarketingCoca Cola


World’s MASS Medium

1.5 Billion Computers *

But 1.8 Billion SmartPhones**

& 5.5 Billion Cell Phones***

The Power of ALL Consumers being Connected

* Forrester** Modus Associates indicates by 2013*** International Telecommunication Union (ITU).


National Marketers Seem to Get World is Changing

Q13. How does your 2011 projected spending on mobile marketing compare with your 2010 spending?Q14. You indicated you will be spending more in 2011 on mobile marketing than in 2010. Please select the range that best represents the estimate for this increase.

Base: Total Answering

Source: MMA & ANA, Sept/Oct 2010

N = (55)

Spending more75%

Spending about the same18%

Spending less1%

Don't know6%

Mean Percent Increase In 2011 Mobile Marketing Spending:

59.1%


And Gordon Himself Said…

Almost 44% of small business owners say they are likely to try mobile advertising in

2011Mobile Marketing Association


Ok, so Mobile is big deal. Got it. Consumers, marketers all aligned

But what’s it mean to Local Media?


What Will Be Local’s Future?

Destiny...is not a matter of chance, it is a matter of choice;

it is not a thing to be waited for, it is a thing to be achieved

William Jennings Bryan (1860 - 1925) US lawyer, orator, & politician


I heard…

Mobile is the Missing Piece to Local

Jamie WellsMicrosoft



What Might be Mobile’s USP

PersonalPervasive

ProximityMobile Marketing Association


Chetan Sharma Says

Mobile wins on:1. Reach2. Targeting3. Engagement4. Virality5. Transaction

Clearly, mobile is a better (Ad) mousetrap

Source: Chetan Sharma, January 2011


Connection to Transaction-Really Valuable

Mobile is clearly becoming a new way people shop…[eBay has] nearly tripled mobile GMV (gross merchandise value) year-over-year to

nearly $2 billion, with strong holiday shopping momentum in Q4.

In 2011, we expect Mobile GMV to double to $4 billion.

- John Donahoe, President & CEO eBay CQ4:10 Earnings Call


I’d also suggest

Mobile is the Missing Link for Marketers



slide titleGreat, Got it. Now What?


Publishers’ Current Mobile Strategy

“We Hired a Guy”

10 out of 10 publishers



slide titleUGH! Now What?


Future Insight by Looking At the Past

"If history repeats itself, and the unexpected always happens, how

incapable must Man be of learning from experience.“

George Bernard Shaw Irish dramatist & socialist, 1856 - 1950


One Guy’s Two Decades of Digital

1. You have to be in it to win it2. Assume responsibility for making it

work (harder); focus on improving ad performance

3. There are big opportunities out there4. It’s not your daddy’s (Digital) medium5. Innovation is hard; so get started (see

#1)6. New Paradigm – Scale is Everything


1. Build a Mobile Presence

Nearly 80% of businesses do not have a mobile presence



1. You have to be in it to win it2. Assume responsibility for making

it work (harder); focus on improving ad performance




2. Will Agencies/Marketers Lead? Donny Deutsch speaking to 500 Marketers in 2005…

“We did a wonderful spot…on the Superbowl… for Mitsubishi Gallant...that

stops at the end and [says] go to “seewhathappens.com.”

We got about 600,000 clicks. Was that great or that not great?

We told the client it was great, so it was great.”

[nervous laughter] Deutsch is the 14 largest agency in the US


2. Publisher Have More Control Than Acknowledged

Low High1. Cut out International impressions 18% to

43%

2. Manage Frequency 50% to 70%

3. Capitalize on Time of Day/DoW 10% to 35%

4. Ad Size matters 20% to 54%

5. Page Placement really matters 6% to 350%

6. Creative is “mission critical” 0% to 400%

Total Gain Possible: 0% 2930%


For XMOS research studies, Online CPM

was lowest in 50% of studies.

Online “Cost Effectiveness” was lowest in changing brand metrics for

75% of the studies

2. Based on “Physics of Media”, all New Media Have a Value Advantage”





3. There are big opportunities out there

4. It’s not your daddy’s (Digital) medium5. Innovation is hard; so get started (see



3. What’s The Average CPM

Online News $5.00

Google=$68.00* * $0.54 CPC x 17% click thru x 74% sell thru

Source: Jordan Rohan, Analyst at RBC from 2007





3. There are big opportunities out there4. It’s not your daddy’s (Digital)

medium5. Innovation is hard; so get started (see



4. Mobile Is Unique; Capitalize on ItThe modern media channel:• Connect to call • Mapping• GPS• Cameras• Barcode Scanners• Bluetooth• Apps, etc

And did we mention personal?





3. There are big opportunities out there4. It’s not your daddy’s (Digital) medium5. Innovation is hard; so get started

(see #1)6. New Paradigm – Scale is Everything


5. Steve Jobs Said

“Innovation distinguishes

between a leader and a follower.”



5. Conventional Silicon Valley Innovation Theory

70-20-10 70% of budget to what you know

works 20% to innovating off of what you

know works 10% to brand new ideas






#1)6. New Paradigm – Scale is

Everything


6. The Future Media Paradigm

Old Media vs. New Media

Distribution Scale*

* Scale is required for personalization, relevancy, data (really anything tech)


In Summary






But Seriously, if All that Wasn’t Enough, Each New Cycle Creates more Wealth than the Last


Two Final Prognostications

And if Local is nearly 50% of the media business, then Local should be $25 billion today.

However, What Sticks research suggested that U.S. national online would be at $40 to $50 billion, if there was rational decision-making

Therefore, Local Digital should be a $50 billion sector.

And like Apple, we just need the right product


Mobile is Product to get $50 Billion

PersonalPervasive

ProximityMobile Marketing Association


What Does the Future Hold?


So What Is Local’s Destiny?

I cannot say whether things will get better if we change;

what I can say is they must change if they are to get better.

Georg Christoph Lichtenberg 18th-century German scientist, satirist

and Anglophile


Greg Stuart

[email protected]+1 631 702 0682

thank you!

www.twitter.com/gregstuart

www.facebook.com/stuartnyc

www.veoh.com/users/gregstuart

www.linkedin.com/in/gregstuart

www.gregstuart.com

www.gregstuartspeaker.com

Mansavesdog.wordpress.com

www.slideshare.net/gregstuart


THANK YOU



2010: Mobile Websites, Apps, SMS Most Popular 2011: Mobile Coupons Sees Most New Adoption

Q4. Which of the following mobile marketing elements are you using (or are you planning use) to reach your customers for the business you are managing?


Source: ANA, Sept/Oct 2010

N = (88)

63%

61%

57%

55%

50%

39%

36%

25%

24%

17%

16%

15%

12%

8%

24%

27%

28%

9%

14%

21%

17%

30%

37%

26%

31%

30%

14%

7%

86%

88%

85%

64%

64%

60%

53%

55%

61%

43%

47%

44%

25%

15%

Mobile websites

Mobile apps

Mobile messaging/SMS

Mobile display ads (CPM or CPC)

Mobile search

Mobile rich media ads

Mobile video

2D "smart" barcodes

Mobile coupons

Location based services

Interactive voice response

Mobile gaming

Proximity - Bluetooth, RFID

Near Field Communications payments

Currently Using Planning To Use


1.5 B TVs1.5 B Computers online5.0 B mobile (Mobile transcends everything; especially mo1.8 Smart phones212% Quartar most phones per pop

20% of searches are mobileLiquid and Linked

Consumer Engagement: Paid, owned, earned and shared

Can’t let go of the connection at the point of transaction and application

We have to assume that “Everything that is static will become dynamic”

Mobile is a REQUIREMENT

Mobile Marketing Association48

What Will Be Our Future?

Destiny...is not a matter of chance, it is a matter of choice;

it is not a thing to be waited for, it is a thing to be achieved

William Jennings Bryan (1860 - 1925) US lawyer, orator, & politician


Projected Allocations of 2011 Mobile Marketing Budget By Campaign Type (Means)

Q16. How will your mobile marketing budget be allocated in 2011? Total must add to 100%.


Source: ANA, Sept/Oct 2010

N = (62)

Other8%

Mobile Commerce

5%

Mobile Database Marketing/CRM

14%

Mobile Response16%

Mobile Publishing

27%

Mobile Advertising

29%

NOTE: May not add to 100% due to rounding

Lion’s Share of Mobile Marketing $ Going to Mobile Advertising, Publishing in 2011


More Consumer Habits

1 in 3 mobile searches are local

Source: Kelsey Group 2010, Google User Behavior Study 2010

After looking up a local business on

smart phone,

61% called the local business and

59%visited.

0% 10% 20% 30%

16%

30%

15%

15%

17%

Search Queries that are Mobile

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Borrell Conference on Local Media (Mobile)

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