Learnings on mobile marketing, national and international cases.

Best of Wireless April 27th 2005jan.vanaken@ogilvy.be

The role of mobile in the communication mix

While mass media will continue to play an important role to achieve mindshare and differentiation – especially in the customer acquisition phase…

… new media can help to build the ‘good brand feelings’ that lead to brand preference by involving the consumer in ways that mass media never could. They make it easier to create meaningful ‘engaging’ brand experiences to different audience sets.

“The solution includes:

• Precision (talking to the right people)

• Relevance (assure your message resonates)

• Empowerment (putting consumers in control)

• Reciprocity (delivering value in all interactions).”

J. Walter Smith – President – www.yankelovich.com

Once you have started to create brand attachment, continue to use a ‘relational’ approach in new media - based on true customer understanding and dialogue - to emotionally bond the customer and as such achieve repeated and increased sales.

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VALUE

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Emotional Attachment

Mindshare Relevance Differentiation Attachment

Traditional MediaNew Media

Once you have started to create brand attachment, continue to use a ‘relational’ approach in new media - based on true customer understanding and dialogue - to emotionally bond the customer and as such achieve repeated and increased sales.

MobileGamesDVD

iDTVE-mailWebsitesChat

BlogsiPods/MP3etc…

It’s about using old media in new ways, new media for old goals and new media for new goals. It’s about combining left brain marketing skills traditionally associated with direct marketing, with the right brain marketing creativity of traditional advertising in a ‘new’ digital head.

The mobile phone is the relationship tool by excellence

Making connections is also what drives the success of mobile phones, tipping the scales in the Spanish Election. Text messaging was not only successful in assembling crowds, on pre- and election day – when demonstrations are illegal - SMS traffic increased by 40%.

Source: Herald Tribune

The fusion of the mobile phone, the PC and the Internet is beginning to make new forms of collective action possible on new scales, at new tempos, in new places, with groups that have not been able to organize before. This will change society.

Making connections is also what drives the success of mobile phones, tipping the scales in the Spanish Election. Text messaging was not only successful in assembling crowds, on pre- and election day – when demonstrations are illegal - SMS traffic increased by 40%.

Mobile phones are everywhere. They are an integral part of our personal and professional lives. W-Europe counts 400 mio mobile subscribers, more than fixed-line! 80% of W-Europeans have a mobile.

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100Italy

Sweden

Portugal

Greece

Finland

Norway

Czech Rep

Spain

UK

AustriaIrelandDenmark

Switzerland

Netherlands

Belgium

Germany

Hungary

France

Poland

Russia

2002

2003

Mobile penetration in Europe 2002-2003

Source: Netsize 2004

Mobile phones are everywhere. They are an integral part of our personal and professional lives. W-Europe counts 400 mio mobile subscribers, more than fixed-line! 80% of W-Europeans have a mobile.

SMS continues to be a tremendous success. 15 billion SMS are sent every month. While the average European mobile phone user exchanges 35 SMS per month, Ireland recorded an average of 82 SMS’s per end-user per month in 2003.

0

20

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80Average SMS sent per user per month in 2nd half 2003

Source: Netsize 2004

SMS continues to be a tremendous success. 15 billion SMS are sent every month. While the average European mobile phone user exchanges 35 SMS per month, Ireland recorded an average of 82 SMS’s per end-user per month in 2003.

European youth spent 10% of their income on mobile products. 95% of mobile users aged 19-24 are using SMS. For the future buying generation the mobile phone is more than just a communication tool, but key to socially connect and live.

0%

4%

8%

12%

Spain Netherlands Belgium

2004

Youth Spending on mobile products (as % of leisure spending)

Source: Youth MobileReport 2004 + Netsize2004

European youth spent 10% of their income on mobile products. 95% of mobile users aged 19-24 are using SMS. For the future buying generation the mobile phone is more than just a communication tool, but key to socially connect and live.

Soon people will do much more than just talk and text. Mobile phones will become true multimedia ‘business and entertainment’ consoles, even payment devices. More simplicity and killer content applications will initiate the boom.

2001

2006

European spent on mobile (ringtones, logos, news, sport results, stockexchange prices) versus web content

310 mio

1.7 bio

590 mio

3.3 bio

Source: Jupiter MMXI

Web ContentMobile Content

Soon people will do much more than just talk and text. Mobile phones will become true multimedia ‘business and entertainment’ consoles, even payment devices. More simplicity and killer content applications will initiate the boom.

But while mobile marketing clearly offers unrivalled potential in terms of reach, personal impact and viral-ness, it hasn’t truly kicked-off around Europe yet… consumer interest does exist.

Source: Empower Interactive May 2004

But while mobile marketing clearly offers unrivalled potential in terms of reach, personal impact and viral-ness, it hasn’t truly kicked-off around Europe yet… consumer interest does exist.

84%

18%

57%

0%

50%

100% Agencies planningto offer mobilemessaging toclients

European mobile users,willing to receive SMSmarketing and promotionaloffers on their handsets

Agencies offeringmobile messagingto clients today

Mobile marketing has a good track-record as sales promotion or TV involvement tool, but unlike Asia, Europe knows few cases in branding, CRM, channel/staff motivation, product development…

• MC: D’s (McDonald) txt club members received free, limited edition ringtones for special events i.e. World Cup and offers ‘Free McFlurry available when you show this text message at your nearest McDonald’s today!”

• First Direct UK sends customers sms alerts when new deposits arrive on their account.

• Carrefour France sends its senior management financial performance via SMS every morning.

• Inspired by an av. response rate of 11% for sms campaigns, Coke launched the TXT 2 COLLECT Music in the UK.

• SMS2Mail – implemented for Delhaize, Belgacom, Electrabel IBM… - makes it easy for consumers to respond.

Welcome tothe McTxt club. U’ll get news of product offers + fun chances 2win exclusv prizes. See full t&cs @ www.mcdonalds.com

Mobile as a brand activation and sales promotion tool

Welcome tothe McTxt club. U’ll get news of product offers + fun chances 2win exclusv prizes. See full t&cs @ www.mcdonalds.com

Cfr :

Ford Fiesta minisite

Amex Blue movie

Proximus Motion Signs movie

Source: Youth MobileReport 2004 + Netsize2004

Mobile as a tool for product and service development

Source: Netsize 2004

Mobile as CRM tool

Lessons learned:•The mobile is a way to get close to the consumer’s heart

•The consumer allows it !!

•It stays very, very private – use it with care•It builds strong engaging relationships that

translate in a bottom line win

While the consumer might be personally reachable 24/7 – he is more than ever in control of to who, to what, when and how he’ll listen. Or he’ll talk first… advertisers better be ready to answer.

Welcome to the All-Ways On Consumer !