Mobile Outlook 2011

8/7/2019 Mobile Outlook 2011

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TO BE READY FOR THE NEW YEAR

6 Things you Need to Know About Mobile

2011 Mobile Market Overview: Looking Forward, Looking Back

Hype vs. Reality Priorities + Opportunities Getting Started


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What Are Your2011 Mobile Plans?


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6 Things you need to know about mobile

CONTENTS:

The State o Mobile 4

2011 & Beyond 7

Mobile Market Expectations 7

Innovations 8

Proximity Marketing 9

Marketing Budget Growth 10

Meeting the Demand 11

To App or Not to App 11

Getting Started 12

Mobility in Play 14

TO BE READY FOR THE NEW YEAR


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62%19%

10%

6% 3%

US Smartphone usage by ethnicity breakdown

White Hispanic Black/African American Asian/Pacic Islander Other

0 500 1000 1500 2000 2500 3000

Age


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5

THE STATE OF MOBILE


WHO IS USING SMART PHONES? A quick glance atsmart phone usage by ethnicity perfectly mirrors USethnic composition. No matter what your brand or targetdemo, your customers are using their phones to connectwith brands.

ANDROID, IOS, BLACKBERRY? The public peacockingof Apple vs. Google is more mobile-insider opera thananything else. For the sophisticated marketer, all youneed to know is that you will have to imagine the rightmobile experience for not only these three platforms, butalso the 3,000+ handsets common in the US today. Itseasy to get caught up in the whirlwind of smart phonepenetration (and that growth is an important indicatorof the strength of the channel), but there are still a largenumber of mobile-engaged consumers with medium-techfeature phones.

1 IHL Group

General Merch retailers have the most and least implemented mobile strategies do to the complexity introduced by sucha wide variety of product.

Have a Strategy &Starting Work

Have a Strategy

Early Stage, Developing

a Strategy

Don't Have a Strategy

SportingGoods &

Accessories

HomeGeneralMerch

Beauty &Personal

Care

Apparel,Accessories& Footwear

19%

12%

4%50%

15% 17%

17%

33%

17%

17%36%

21%

14%

29%

20%

60%

20% 18%

9%

27%

27%

18%

Mobile Strategy implementation varies by retail sector

Survey conducted by Forrester Research.Copyright Shop.org & Forrester Research

TEXT MESSAGING IMPORTANT OR ANTIQUATED?The iPhone is a toddler, less than four years old, and SMStechnology is well into its rst-job-after-college, comingin at 25 years old. SMS was 160 characters long beforeTwitter turned pithy conversation into cool. What SMShas over its younger siblings is ubiquity. Brand market -ers considering pushing hard into mobile engagementshould nd a meaningful role for SMS. From Day 1 itdelivers universal accessibility without huge barriers likedriving download apps, navigating Bluetooth protocols,or hoping a consumer walks by your geo-fence. SMS isthe exible intermediary an SMS can deliver a jump off to a mobile web page, a phone call or the beginning of a two-way brand relationship. And different than Twitter,an SMS campaign can utilize the targeting and customersegmentation of a brands most sophisticated directmail drop. While the technology may have been intro -duced the same year as the rst installment of Back tothe Future, it should be a cornerstone to modern mobilemarketing plans.

Sec r e t UR signed up 4 V ic t or ias s Sec r e t a le r t s ! Look 4 of f er s & new pr oduc t inf o. Up t o 8 msg / mt h. Reply ST OP t o c anc e l. Reply HELP f o

r He lp. Msg&Dat a Ra t e s May Apply .

T hank s f or play ing. One quest ion pe r day . 1s t Quest ion. W ha t is t he mos t inc r edible v ac a t ion? A. Af r ic an Saf a r i or B. Gr eat w a ll of China . Reply A or B.


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SO MANY APPS, SO FEW DOWNLOADS? Few commer -cial apps have experienced astronomical download andadoption. Theres no risk in saying that few brands havemade much progress against discovering the right type of relationship to have with a consumer through their phone.But just like the earliest websites that were little more thanprint ads converted to HTML, these are important learningtimes and brands should aspire to be on a rapid path todiscovering the right mobile consumer experience. Thenumbers may be small, but they are brands most importantcustomers that are choosing to engage more deeply. Welldig into this topic in more depth later.

M-COMMERCE OR M-ENABLED COMMERCE?

M-commerce is hot. However, even the most optimisticprojections put m-commerce at only a fraction of a percentof retail commerce ve years from now. If youve met anm-commerce evangelist, theyve described to you a girl ona bus making an impulse purchase of a sweater she had tohave and the need for retailers to meet her needs. Werenot sure how many of those girls-on-a-bus really exist,but we hope there are a lot more than we can nd so far.In nitely larger is the potential for m-enabled commerce,or the use of mobile to assist consumers when they arephysically in a store, providing tools to convert shoppersinto buyers.

M-COMMERCE MOBILE LEADERS: MYTH VS. REAL-ITY? If you attend any mobile conference youll see a lotof the same mobile case studies trotted out to prove thecase for m-commerce. Pizza Hut is going to sell $7MM inpizzas, eBay is going to move $1.5B in merchandise, Dellwill sell a bajillion blade servers through the phone allvery exciting stats. Some of these case examples need an

extra layer of information to really understand their trans -formational value. Pizza Hut was already selling an awful lotof pizzas through the phone, thats how you order a pizza,and while the iPhone app is a great consumer experience,mostly what it does is let you skip the pimply-faced pizza

ipper offering you a salad to go with your pie. eBay hassome beautiful iPhone experiences, however its not clearif an auction initiated online with follow up bids happeningon the phone (and crediting the total) is really expandingtheir business. The early heroes we see are companies likeBest Buy, Wal*Mart, Amazon, Victorias Secret, and Targetthat are not just pushing online experiences to a little-tiny-screen, but are creating new relationships with consumersand creating mobile-speci c interactions.

WHERE DOES IT FIT? Mobile is not the same type of discrete channel like TV, print or radio it has the potential

to amplify any marketing channel and connect everythingfrom TV to print to online. Our big email partners tell usthat north of 30% of marketing emails are consumed on amobile device. Less than a third of those emails likely couldsupport a click through from that mobile-consumed-email.Early-stage sophisticated mobile marketers are imagining amobile layer to all aspects of their marketing plans.

Mobile Heroes

MythicalEbayPizza HutDell

RealBest BuyTargetAmazon

THE STATE OF MOBILE


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7

2011 & BEYOND


1. MOBILE MARKET EXPECTATIONS

MOBILE USAGEThe exploding growth of Smart Phone subscribers isbecoming less-the-story, as focus shifts to what consum-ers are doing on their phones. All of the indicators arehockey sticks: mobile internet - UP; app downloads - UP;SMS volume - UP.

Expect the mobile market of the future to be mes sage-,internet- and app-oriented. Innovative marketers willconsider how this both replaces other media choices aswell as potentially augments all advertising media.

M-COMMERCEUS Mobile ecommerce (mcommerce) revenue is expectedto rise to almost $24 billion in 2015 and hold 8.5 percent of all US ecommerce revenues. While this number soundspretty signi cant it represents only a half of one percent of all 2015 retail revenues. Growth wil be focused in low pricepoint/low consideration product categories, while m-en-abled commerce, e.g., research, decision support, inspira -tion will dominate the mobile agendas of most brands.

2011 will likely see mobile as a strategic component of every major marketers plan.Over the next ve years, stats in the millions will become stats in the billions. Mobile phone ubiquity has pulledpenetration off the list of important mobile stats (its FULL), and so our attention will turn to indicators of consumer mobile sophistication and usage

1 Juniper Research 2 Essential Research 3 Coda Research Consultancy

Mobile Users x Smartphone Growth = Smartphone Usage

Near full penetrationlevels will cause this

to stay

Opportunity Multiplier Currently growing at 14%

per year

M C o m m

e r c e

B o o k s

M u s i c

P r o m o t i o

n

m E n a b l e

d

r e s e a r c h

PricePoint

Consideration

Hi

Low

Low Hi

Hugo BossSuit

Tiffanys

Necklace

Car

Most are justshopping, a

few arebuying

2007 2008 2009 2010 2011 2012 2013 2014 2015

2000

1600

1200

800

400

0

Mobile Internet Users

Desktop Internet Users

I n t e r n e

t U s e r s

( M M )

Mobile User > Desktop Internet Users within 5 Years

Source: Stanley Research


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2011 & BEYOND


2. INNOVATIONS

WHAT IT DOES: Consumer scansa products barcode in-store andgets a real time price comparison

THE INNOVATION: Amazon expanding their pricecompetition and easy-check out consumer relation-ship and inserting themselves into a broad set of consumer decision-moments, rst true m-enabledcommerce solution, value is more consumer-centricthan Amazon-centric.

WHAT IT DOES: MS Tag incorporated into printcampaign for VS Fall Fashion Show 2010

THE INNOVATION: Creative updating of logo-as-MS-Tag enhances brand values of FORWARD, CUTTINGEDGE and INNOVATIVE. Adding Tag to physical adspromotes immersive brand connection and launchestwo-way dialog leading up to show

WHAT IT DOES: Distributed tech help desk taps entire

Best Buy associate staff for Twitter-based support -- notlimited to Best Buy customers

THE INNOVATION: Uses Twitter platform to providelow cost, scalable information solution with limitedoversight -- perfectly supports Best Buy Geek Squadbranding

WHAT IT DOES: Leads consumers on food Missionsranging from Uber Tuber to Organic Avenger

THE INNOVATION: Evolves the physical check inof foursquare into a lifestyle check-in which taps aneven deeper set of social motivators


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AND WHY YOU SHOULD CARE


9


Every marketer aspires to a simple goal: the right adto the right person at the right time in the right place.Proximity Marketing promises to turbo charge rightplace . They tempt us with what if you knew your cus -tomer was in front of your store, or better yet, in yourcompetitors store? Some marketing service compa -nies can sniff your location and push a geo-relevantmessage. Other marketing companies encourageconsumers to check-in and self-identify their location.

10-Seconds o Truth: Even with the new Facebook Locations functionality,

the total check-in consumer population is toosmall to run a campaign against outside of 20-25year olds in Manhattan or San Francisco.

Its still too hard to programmatically get real time

consumer location information. Most carriers chargefor the data, and service providers use simplisticpredictive algorithms to minimize their costs.

Bluetooth proximity marketing barely works itdoesnt work on iPhones, it only works on someBlackberrys, increasingly sophisticated consumershave decreasing ability to interact with this technology.

1 Borrell Associates, Proximity Based Marketing: Mobile Devices Untether Advertising rom Media 2 Nielson and Forrester Research 3 Cisco.

The 2011 Battle: Push vs. Pull Marketing

There are two main routes to location awareness with consumers:one which leads to PUSH MARKETING and one that leads toPULL MARKETING.

PUSH MARKETING tends to be interruptive messagingtriggered by a passive discovery of a consumers location-- usually through pre-approved permission, the marketerbecomes aware that a consumer is in an attractive locationand PUSHES them a message. This approach may acceleratethe scale of potential campaigns, but the often context-freepushing of the message may diminish effectiveness.

PULL MARKETING relies on the active acknoweledgement of a consumer that they are in an attractive marketing location,e.g., a foursquare check-in at Best Buy, effectively PULLING amarketing message. The growth in relevancy is offset at thistime by a lack of scale -- not enough consumers actively identifyto build a compelling campaign.

The Battle Lines are drawn, with PUSHERS chasing relevancyand PULLERS seeking scale. Our quick take -- bet on thePULLERS, relevancy is the key to proximity marketing.

Why Its Worth a Trial: Your best customers want it. They are willing to give

up their location to have a closer brand relationship now is a great time to learn how location informationmight deliver great customer engagement.

Its cool. Even if you have low participation, runninga foursquare test will attach some innovative coolvalue to your brand.

Its cheap. Most market service providers are tryingto get into your test budget and know they cantrun a SCALE test, so the price tag on projects is low.

PUSHVS P U L Lthe evolving customer experience

2011 & BEYOND

F a c e b o o k

f o u r s q u a

r e

V e r i z o n A T & T P l a c e c a s t

3. PROXIMITY MARKETING


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6 Things you need to know about mobile6 Things you need to know about mobile

EVERYBODYS DOING IT.Total spending on allforms of mobile marketing is expected to grow nearly 50%in 2011 topping one billion dollars. 1

SMS, still the current leader in mobile marketing share,is in line to increase 41 percent this year. Mobile videois headed towards a 37 percent jump, 2 and mobile appbudgets are estimated to grow 59 percent in 2011. 3

Where do you expect to see the steepest growth curvein advertising spending 2011?

Savvy marketers will think of their mobile spend as bothan additional channel for engaging consumers/slice of the media mix, as well as an activator of media such asprint, TV and even console gaming.

1 eMarketer report. 2 Survey o marketers who make decisions about media spend spearheaded by the Mobile Marketing Association 3 DIGIDAY Q3 Apps State o the Industry Survey

Its not that we have been brainwashed by Googleand Apple to believe that the mobile phone is the

only communications path left to engage consumers.Its not the exploding penetration and usage stats.Its not even the WOW-factor of phone apps.

The reason mobile is so hot is because retailerslook out onto their store foor and they seeconsumers holding and interacting with theirphones. Thats it. Observable consumer behaviorsays that the mobile phone is part of shoppingexperiences, and brands are choosing to listenand take action.

WHY IS MOBILE SO HOT?

2011 & BEYOND

$416

(30%)

$743.1

(79%)

$1,102.4

(48%)

$1,501.3

(36%)

$2,036.8

(36%)

$2,549.5

(25%)

2009 2010 2011 2012 2013 2014Includes display (banner, rich media and video),search and messaging based advertising

Source: e-marketer 2010

US Mobile Ad Spending, 2009-2014millions and % growth

4. MARKETING BUDGET GROWTH

Smartphone/mobile advertising

Online video

Social Networks

Hyperlocal Media

55.92%

20.39%

14.47%

9.21%


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11

There are a lot of things you could read into this growth chart:hurray for the booming economy for app developers,consumer mobile behavior has experienced a sea change, thepower of the smart phone has unlocked wonderful marketingopportunities and youd probably be mostly right with any of them. What wed like to add to the list of observations is thatthere appears to be an extremely low barrier to entry for creatingan iPhone app.

Every week a partner or potential client tells us they wantto build an iPhone app. We celebrate mobiles increasinglyimportant role, but also quickly start to work with the client toensure they are not pursuing all of the tactics they could, butrather the ones they should. Heres a sneak peek at the processwe lead partners through before committing to an iPhone app


MEETING THE DEMAND5. TO APP OR NOT TO APP, THAT IS THE QUESTION

to App or

not to App

is my target demo in thetop quartile of active appdownloaders and users?

Is there $100K in learnings Icould pull from a small mobiletest with my target?

do I have an high-customer-valuesegment that I could meaningfullyinuence with an app?

Has an app become tablestakes in my industry forproviding customer value?

have I identied a distinctly mobileconsumer value that isnt deliveredbetter through other channels?

Am I willing to spend the money topromote the app in store, on the weband as part of other media spend?

is an app the right nextphase of my consumermobile relationship, or isSMS or a mobilized site?

does accessing the native capabilities of thephone (e.g., the camera or local contentstorage) outweigh the reach advantage ofbuilding a mobile web experience?

"

"

"

"

"

"

"

"

Y N Y N


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MEETING THE DEMAND6. GETTING STARTED OR PRESSING ON THE ACCELERATORIts time for 2011 Mobile priority setting and were all at different places on the Mobile Sophistication Spectrum.Wherever you are today, focus your priorities and achieve the next level of mobility in 2011.

ACCELERATE DOWN THE MOBILE CONSUMER SPECTRUM

LIMITED CONSUMERMOBILE RELATIONSHIP

ACTIVE TWO WAY MOBILE ENGAGEMENT

INTEGRATED MOBILERELATIONSHIP

VALUES-ROOTEDMOBILE CONNECTION

W H E R E A R E

Y O U ?

Y O U R N E X T

T A R G E T

DO! Prioritize the basics Break down the silos Prioritize consumervalue, not brand value

Renew, refresh,reinvigorate

Make your websitesaccessible by mobilephone this goes wellbeyond eliminating flash

Develop SMS databaseand capture permissionsand build consumermobile mindset

Actively drive consumersbetween web, physicalmedia and phone

Activate all marketingwith links to mobileexperiences or actnow calls to action

Create mobile prioritiesaround successfulconsumer experiences,even if in potentialconflict with brandsuccess

Tap into social motivatorsincluding Self-Expression,Achievement andAltruism

Expand mobilerelationship alongtwo dimensions:utility and fun

Schedule regularre-assessments of content of offeringfor freshness, depthand relevance

Open up your TWOWAY MOBIL EENGAGEMENT

Establish yourINTEGRATED MOBILERELATIONSHIP

Enable customers tobecome what theyaspire to be

A vibrant customerrelationship


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13


MEETING THE DEMAND

Even 5+ years out, no analyst suspects that more than 1% of retail revenue will be purchased through the phone. The sweetspot for m-commerce is low price-point, low considerationitems (books, music, maybe consumer electronics) and currentmobile offerings feel like marketers trying to push incremen -tal commerce through a new channel.

That is not where the business transformation will occur.

Every year tens-of-billions of revenue walks out of majorretailers these are consumers who enter the store with intentto buy, but they experienced some breakdown in the path fromshopper to buyer.

In 2011, retailers will increasingly identify ways to use themobile channel to support and reinforce EXISTING shoppingbehavior, not try to drive channel shift. They will put tools intoconsumers hands to inspire them in-store, support complexdecisions, and tie digital couponing to the real world experi-ence of walking into a retailer.

Thats it, 2011 will bring SMS the respect it longs for, PUSHMarketers their top-of-the-heap status, and a mind shift fromm-commerce to m-enabled commerce.

The below age-old math equation has plagued retailersfor years. What happened to those other three customersthat intended to buy? Most customers site the fact thatthey want to continue looking at other stores beforemaking that nal decision or they couldnt imaginewhat they would wear it with, or they just didnt ndwhat they were looking for. M-enabled commerce hasthe power to change that buy putting the answers tothose hesitations in the customers hand. Price-checks,stock checks, outft builders and promotions are allavailable when sales reps are not.

Positive: Customers can access your store info not onlywhile in your store, but also while in a competitors.Negative: It works both ways when your competitoruses m-enabled commerce.

10 people walk into a store...

our intend to buy...

Only one does.

ITS TIME TO CHANGE THE MATH

BONUS: M-COMMERCE WILL GIVE WAY TO M-ENABLED COMMER

?


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MOBILITY IN PLAY


WHAT IS RIGHT FOR YOU?

Like any marketing initative, mobile priorities must be customized to your goals. If loyaltyis what youre after, SMS can be a valuablemedium to create customer engagement,elicit responses and build a customer data-

base. M-commerce is there when your storeis not, providing an avenue for customers tomake purchses while on the bus or waiting inthe doctors of ce, but lets face it, there aresome things that customers just must see inperson, and to help inform, prime and ultimatelyinspire those purchase decisions there is m-endabled commerce. Innovations in mobiletechnologies and strategies are giving way tonew ways of capturing the mobile customer

and no two executions are the same. Here areways of putting mobility in play, but to learnexactly what and how it will work for you callus today.

LOYALTY

Well show you how mobile can create loyaltymomentum across your customer base, give shop-pers an elevated sense of brand engagement, andincrease likelihood to buy.

The RedShop Loyalty communications platformincludes: Global messaging platform Membership development programs Campaign management tools Advanced promotions and couponing programs

M-ENABLED COMMERCE

Every day, consumers with purchaseintent walk out of your store empty-handed. Not anymore. Together wecan knock down the barriers that stand between I want andI bought with the help of mobile-enabled commerce

(also known as m-enabled commerce).

The CompanionYour Personal Associate

Using this mobile framework, you can publish apps and mobilesites that can be used before and during the shoppingexperience. Give consumers product information, support,review, and VIP accessand convert shoppers into buy -ers. Reinforce and amplify core consumer shopping behaviorsandbuild on the loyalty momentum of pre-store marketing.Available as a mobile app (Apple & Android) or as an HTML5-

enabled mobile website.

Promotion PackageMobile Offer Manager Allows consumers to manage a retailers email, print

and online coupons and promotions in one place For retailers, it creates a 1:1 messaging channel to

deliver individualized consumer marketing Location-based promotion targeting Available as a mobile app (Apple & Android) or as an

HTML5-enabled mobile website

S ec r e t UR s igned up 4 V ic t or ias s S e c re t a le r ts ! Look 4 of f e r s & new pr oduc t inf o. Up t o 8 msg / mth. Re ply S T OP to c anc e l.Reply HELP f or Help. Msg&Dat a Rat es Ma y Apply .

T ha nk s for play ing. One que s tion pe r da y . 1s t Que s t ion. W ha t is the mos t inc r e dible v ac a t ion? A. Af r ic a n S af ar i or B. Gr e at w a ll of China . Reply A or B.


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15

MOBILE MARKETING EXECUTION WITH 5th FINGERWith over a decade o global experience, were one o the ew mobile

marketing companies that has the breadth and depth o experiencerequired to handle all your mobile needs, including:

Text message customer acquisition programs Text message loyalty programs Promotional mobile landing pages Custom mobile site development Real-time PC-to-mobile site adaptation/optimization Mobile app development (iPad, iPhone & Android)

M-COMMERCE

Sometimes a consumer just needs it now. Whether shesriding a cross-town bus or hes standing in your competitorsstore, our m-commerce suite puts your catalog, offers andmarketing right into the hands of the shopper.

M-Commerce offerings include: Full catalog browsing through a Smart Phone app and

HTML5 implementation Seamless integration with e-commerce platforms and

identity management Real-time integration with retailer prices, promotions

and availability Advanced features include 1-Click Checkout and store

locations Available as a mobile app (Apple & Android) or as an

HTML5-enabled mobile website

IPAD - NOT JUST FOR CONSUMERS

Everyones favorite shiny Apple toy saw the highestrelease sales of any mobile electronic device currentlyon the market. App development is beginning tofollow suit with over 150,000 apps so far, includingthe likes of Target and Audi. Retailers are getting in

on this opportunity knowing the platform gets theirhighly visual message directly to the consumer.

iPads versatility goes beyond uses just for theconsumer. With your retail supporting iPad app thisdevice functions as a roaming repository of informa -tion for sales reps and other employees. Allowingemployees to provide the highest level of customerservice with instant information as well as preformmore effciently with quicker input and output of data.

MOBILE SITESA mobile site guarantees yourbrands website is viewable byall who seek it. This simple, yetessential initiative ensuresmobilized surfers have theability to easily view your sitein all the glory you intend.


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5TH FINGER 2010 SNAPSHOTAWARDED: 2010 Best Mobile Campaign, Big Star Awards for My Coke Rewards campaign

5TH FINGER CONSIDERS ALL OF OUR CLIENTS A

PROUD PARTNER IN MOBILE MARKETING INNOVATION


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As a global mobile marketing leader5th Finger has mobilized the worldsleading brands.

CONTACT 5th FINGER TODAY ANDSEE WHAT WE CAN DO FOR YOU

Are you ready to mobilize?

415.520.5585 | [email protected]

Hype vs. Reality Priorities + Opportunities Getting Started

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