Mobile Marketing: Why smartphones are upending traditional print and web based marketing

Mobile Marketing: Why smartphones are upending traditional print and web based marketing

January 18, 2011January 18, 2011

PRSA Cincinnati ChapterPRSA Cincinnati Chapter

http://www.twitter.com/servicewebsw

“According to Borrell Associates statistics, more than half a million apps are downloaded every hour and the average smartphone user has 22 of them.”

The average smartphone users spends 2.8 hours per day using apps and 3 in 5 people first turn to an app before searching the Web, says Mobclix.

According to Mary Meeker, managing partner and head of Morgan Stanley’s global technology research team, within the next five years “more users will connect to the Internet over mobile devices than desktop PCs.”

Report: Top 10 App Trends of 2011, Read Write Mobile, December 28, 2010

2010 App Game Changers, Mobclix, December 20, 2010

Mary Meeker: Mobile Internet Will Soon Overtake Fixed Internet, GigaOm, Apr. 12, 2010

How fast is the mobile app marketplace growing?

Traditional PR Tactics

Control the Message, Press Releases

Create and Distribute Press Kits

Media Relations

Develop Hooks/Angles

Support/Leverage Events

Broadcast News

Crisis Management

We are moving from a world of impressions to a world of engagement

Mobile is the primary tool for accessing the web

• Mobile provides access to social circles at all times. The median number of text messages sent by 18-24 year olds is 125 per day. 72% of young adults use social media.

• Mobile devices are constantly connected and provide immediate access to the web, to text messaging and entertainment. 85% of adults over 18 now own an internet connected cell phone.

• Smartphones provide information, entertainment, music & photos. 33% of adults use their cell phone to access news and online media.

• Social media is crossing generational boundaries. 42% of internet users ages 50 and older use social networking sites as of May 2010, up from 22% in April 2009. The fastest growing demographic on Facebook is seniors 70+.

Source: Pew Internet and American Life Foundation

© 2010 ServiceWeb Systems, all rights reserved.

Facebook has nearly a half billion users. The average user spends 55 minutes on Facebook every day.

Mobile is Social

Apple iPhone/iPad Android Blackberry

- Apple sole manufacturer- 200K+ apps, 9000 developers- One app store / common hardware- Tight control over distribution- Native programming language:

Objective C / Cocoa- Safari browser- Tablet computer: iPad- iAd Mobile advertising- Network: ATT cellular, wireless,

Verizon (2011)

- Licensed to 27 manufacturers- 100K+ apps- Multiple app stores- Numerous hardware variants- Registered app- Native programming language:

Java / Android API / SDK- Multiple browsers- Multiple tablet computers- AdMob Mobile advertising- Network: many

- RIM sole manufacturer- 10K+ apps- Multiple app stores- Multiple hardware variants- Registered app- Native programming language:

Java / Blackberry API / SDK- RIM browsers- AdMob Mobile advertising- Network: many

Reaching your Audience via Mobile… Custom Apps

Cost: $10K and up

Advantages

• Resident on the phone. Higher probability of interacting with the customer.

• Accessed from main menu. Icon is always visible.

• The applications guides the user’s interaction with the business.

• Apps typically provide greater value to the end user and can be used to perform more complex interactions with the business (e.g. banking transactions).

Disadvantages

• Organization must develop and maintain the application.

• Applications must be kept current and updated as user needs change.

• The distribution and management process is more complex.

• Skilled app development resources are very scarce.

Reaching your Audience via Mobile… Web Centric Mobile Apps

Cost: $3K and up

Advantages

• Client based solution. App distribution from server.

• Server can detect mobile device type and map screen data to mobile device view.

• Frameworks make it possible to emulate native code handling of gestures and touch behaviors.

• Can be programmed to recognize smartphone and tablet devices.

Disadvantages

• User must explicitly access website from mobile device via site name of search.

• Apple’s prohibition on Flash animations.

• Current smartphone phone processors are taxed by web animations.

Reaching your Audience via Mobile Devices… Messaging Services

• SMS and MMS are broadly available on most mobile devices and most consumers, especially consumers 18 - 34, are very familiar with using text message services.

• SMS programs are simple to implement and are cost effective. Because the requests are user initiated, response rates are on average about 12% vs. < 2% for other web based advertising.

• Multimedia Message Services (MMS) is the mechanism to send images, video and audio to a user using extensions to the SMS messaging protocol.

Common Short Code (CSC) is a five or six digit number to which a user can send a text message. Common short codes are obtained by registering at the Common Short Code Administration website below. The cost is $500/month for a randomly assigned number or $1000 per month for a specific numeric code.

http://www.usshortcodes.com/index.html

Cost: $ 500-$1000/month

Advantages

Disadvantages

• SMS Spam is becoming more common. Uses response rates are declining as a consequence.

• Push notifications and graphically intense banner ads are impacting the effectiveness of SMS Services.

© 2010 ServiceWeb Systems, all rights reserved.

Reaching your Audience via Mobile Devices… 2D bar codes

• QR Codes can be used to integrate you print media campaigns with your web strategy.

• QR Codes can be generated by free, open source code generator tools.

• Adding QR codes to print campaigns has no incremental cost.

• A steadily growing percentage of customers understand QR codes and have 2D bar code reader software installed in their smartphones.

Cost: No Incremental Cost

Advantages

Disadvantages

• QR Code use is new to Cincinnati and a smaller proportion of customers know what QR codes are and how to use them

• Some older smartphones have difficulty scanning QR Codes.

• There are other formats for 2D barcodes such as Microsoft Tags or EZCodes that are proprietary and require the user to be connected to a website when reading the codes.

© 2010 ServiceWeb Systems, all rights reserved.

Apple’s iAd program allows mobile ads to be sent to smartphones if the user opts in and the applications are built to accept ads. Push notifications set an alert notification in the home menu and can be retrieved by users from within the target application.

Reaching your Audience via Mobile Devices… Mobile Banner Ads

© 2010 ServiceWeb Systems, all rights reserved.

Proximity marketing leverages the communications and geolocation capabilities of smartphones to direct targeted marketing at mobile users within a limited geographic area.

Short Range Solutions Based on Short Range Connection Strategies,.. Bluetooth, Bump

• Proximity Marketing is used for point-of-purchase, kiosk and special event marketing.

• Mobile Proximity Marketing is in the early adoption phase.

Mobile Solutions Based on Geolocation

• Next generation of GPS receivers will resolve location down to 3 – 5 feet.

• New solutions based on GPS, Bluetooth, tones and “Bump” will allow “walk by” connections

• Proximity marketing is ideal method for at public events

Emerging Solutions on Mobile Devices… Mobile Proximity Marketing

http://www.youtube.com/watch?v=DpLRQy5cNIc&feature=&p=ECE328605D4296AE&index=0&playnext=1

Emerging Solutions on Mobile Devices… Gaming, Lifestyle and Affinity Marketing

Gaming, Lifestyle and Affinity apps are emerging tools for engaging prospective customers

• Games such as Angry Birds and Mafia Wars create a new level of engagement.

• Gaming and social media have successfully pulled 18-24 demographic away from prime time television to engagement via smartphones and tablets.

• Gaming and lifestyle strategies create multiple new categories for revenue generation… embedded advertising, virtual goods, paid cheats, character merchandising, product tie-ins, and lots more.

• Lifestyle marketing strategies with these kinds of innovative channels achieve incredibly high response rates.

ROVIO “Angry Birds” App Design and Monetization Strategy

Takeaways…

Customers want engagement

Mobile provides “always on” access to social circles, entertainment and information

Customers know more about you than you do about them

Customers will only engage if you deliver value… Right NOW!

Bob McCarthy Biography

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Bob McCarthy is the President and CEO of ServiceWeb Systems, Inc. a software development and services company based in Cincinnati, Ohio.

ServiceWeb Systems is a mobile device and web development services company based in Cincinnati, Ohio. SWSI uses onshore and offshore resources to deliver custom smartphone and tablet apps quickly and cost effectively.

Visit the SWSI website for videos and screen shots of previous projects or scan the QR code below for contact information and links to our website. http://www.servicewebsw.com

http://www.twitter.com/servicewebsw

Bob McCarthyBob McCarthybob.mccarthy@servicewebsw.combob.mccarthy@servicewebsw.com513-527-4886513-527-4886

Thank you…Thank you…