The Power of Mobile MarketingThe Power of Mobile Marketing

Judd WheelerThe Art of Mobile Conference 2011

How Big Is Mobile?

1.7 billion television sets

How Big Is Mobile?

2 billion Internet users

How Big Is Mobile?

1.2 billion computers(including tablets)

How Big Is Mobile?

4.9 billion combined

How Big Is Mobile?

4.9 billion combined > 5.2 billion paid subscribers

How HOT is Mobile?How HOT is Mobile?

• 327 6M mobile phones in use in the U S327.6M mobile phones in use in the U.S.

• 196.9B text messages/month

• Google $1B revenue = mobile ads and consumer usage of mobile coupons

Growing TrendGrowing Trend

• Americans areAmericans are getting rid of landlines

Growing TrendGrowing Trend

• 10 States that have at least 30% of adults rely strictly on cell phones– Arkansas– Mississippi ‐ highest poverty rate at 21.9% in 2009 (Census Bureau)– Colorado– Idaho– Kentucky– Nebraska– North Dakota– Oklahoma– Oregon– Texas

Within Arms Reach 24/7

No9%

Yes91%

Morgan Stanley

ReachReach

• Cell phone penetration is 104% of the USCell phone penetration is 104% of the US population

• That means…O 94% f h U S l i i i hiOver 94% of the U.S. population is within an arm’s reach

Mobile SpendingMobile Spending

• 1 in 7 media minutes (>14%)

• U.S.: 6% marketing budget(up from 3%)

Business and Leadership survey, September 2011

SMS – by the numbersSMS  by the numbers

• 4.2 billion (globally) Globally:4.2 billion (globally)

• U.S. ~73%

Globally:

• #1 – Text

• #2 – Apps#2  Apps

• #3 – Email

• #4 Voice• #4 ‐ Voice

8x 20x

Text May Not Be Sexy, BUT…..Text May Not Be Sexy, BUT…..

• 90% of all text messages read within 390% of all text messages read within 3 minutes of delivery

• 95% within the 1st 15 minutes• 95% within the 1st 15 minutes

• Over 99% read by the recipient• SinglePoint Conversational Advertising

Text May Not Be Sexy, BUT…..Text May Not Be Sexy, BUT…..

• 90% of all text messages read within 3 minutes of delivery• 95% within the 1st 15 minutes• Over 99% read by the recipient

• SinglePoint Conversational Advertisingg g

• Text:– CTR 14.06%  Conversion 8.22%

• Email:Email:– CTR   6.64%  Conversion 1.73% (average 33% change yearly)

• Internet DisplayCTR 0 76% C i 4 43%– CTR   0.76%  Conversion 4.43%

• Direct Mail– Response 1.4‐3.4% (Conversion < 1%)

• DMA 2010 Response Rate Trend Report

SMS AppealSMS Appeal

• Short convenient formatShort convenient format

• Most effective marketing messages = Least amount of thought from the consumerLeast amount of thought from the consumer.

• Permission‐based

Marks & Spencer – Loyalty ProgramMarks & Spencer  Loyalty Program

• Text‐to‐winText to win

• Event reminders

l d i• Internal education

• 700,000 opt‐in customers

• Trigger increase in‐store purchaseTrigger increase in store purchase

Mobile BarcodesMobile Barcodes

• QR (Quick Response) Code: 1992 – Denso‐Wave (Toyota)

30 characters 3,296 alphanumeric 1,000 characters

Q (Q p ) ( y )

• Additional storage capacity accommodates a variety of data beyond numbers:– Text– Hyperlink– Telephone number (Phone call)– Email (Send message)– Contact entry (vCard or meCard)

QR Code by the NumbersQR Code by the Numbers

• 14 million Americans14 million Americans = 6.2% total mobile audience

comScore MobiLens study June 2011comScore MobiLens study June 2011

QR Code by the NumbersQR Code by the Numbers

• 14 million Americans14 million Americans = 6.2% total mobile audience

comScore MobiLens study June 2011comScore MobiLens study June 2011

•1200% increase second half of 2010

Mobie Identity Systems report

D l d d idD l d d idDeals, ads and a videoDeals, ads and a video7,581 web site visits (90 days)7,581 web site visits (90 days)

Tesco HomePlus QR Shopping (South Korea)Tesco HomePlus QR Shopping (South Korea)

• Nov 2010 – Jan 2011Nov 2010  Jan 2011

• 10,287 online store via mobile

b 6%• Members rose 76%

• Online sales 130%

The FadesThe Fades

• TEST the barcode

• Don’t link to a generic webpage

D ’t li k t• Don’t link to a webpage that isn’t mobile‐friendlyy

• Test placement

Augmented RealityAugmented Reality• Yelp

S t t

• Zagat RETINAC i t t & i t ll– See restaurants

– Click to get ratings and reviews

– Can interact & virtually walk down the street

– Click to get full review gand details

Volkswagen BeetleVolkswagen Beetle

• Utilizes – standard billboards,

– bus shelters, 

traditional print based media property– traditional print‐based media property

Augmented RealityAugmented Reality

• LayarLayar

• Wikitude

i ’ i• Metaio’s Junaio

• String Labs

• QderoPateo Communications (QPC)Articulated Natural RealityArticulated Natural Reality

QderoPateo Communications (QPC)QderoPateo Communications (QPC)• Articulated Naturality Web• Typical AR “flat”Typical AR  flat• Break barrier of laptop/desktop – convenience of mobile• Weather, museum, hotel, commercial real estate

SearchSearch

• Restaurant menus 2x >Restaurant menus 2x > Lady Gaga

• 40% Google Maps MOBILE• 40% Google Maps – MOBILE75% have used locator like MapsMaps

• Google: separate indexes

• Intent to buyy

SearchSearch

More browser phones than PCs

Mobile‐Optimized Web SitesMobile Optimized Web Sites

• Less than 19% of business in France and U KLess than 19% of business in France and U.K.

• 33% of US‐based businesses

• Tiffany’s jewelersdoubled its salesafter launching a mobile‐optimized website

Location‐Based ServiceLocation Based Service

10,000,000

• Check in

• Find friends• Find friends

• Share on social networks (FREE word of mouth)

• Unlock rewards

Location‐Based ServiceLocation Based Service

10,000,000

• Launched in 2009

1 billi h k i• 1 billion check‐ins

• 5 languages

Shopkick (Proximity Marketing)Shopkick (Proximity Marketing)

ShopAlertsShopAlerts

• Works with any phoneWorks with any phone (no GPS)

• Opt‐inp

• SMS, Facebook, Twitter, web, in‐store signageg g

• Geo‐fences based off cell towers

• 96% recall text message

• 38% increase purchase intent

• 78% LBS nature made them more useful

SCVNGR – Buffalo Wild WingsSCVNGR  Buffalo Wild Wings

• Go placesp• Do challenges• Earn points

• 720 locations12 week campaign12‐week campaign (March Madness)

• Media & customer engagement

• Improve customer return rate – drive revenuerate – drive revenue

Turn Watching Games into a GAMETurn Watching Games into a GAME

• Take pics of friends, p ,sauciest wing in the basket, fans of rival teams crowd going wildteams, crowd going wild…

• Rewards for completed challenges included: – $5 off (3 points), – a free Coca‐Cola (20 

points) and – free wings (30 points)

• Could share to Facebook& Twitter& Twitter

ResultsResults

• Players generated 20,000+ challenges

• There were 184,000 unique players

• 1 in 3 players returned to play again

• 100 million social impressions via Facebook and Twitter.

• On average, a player spent 90 seconds per challenge, meaning that BWW saw the equivalent of 3 6 yearsBWW saw the equivalent of 3.6 years of brand engagement in its locations during the campaign.

Now has an established database of 184,000 people for its next campaign

IKEA 2010 Interactive CatalogIKEA 2010 Interactive Catalog• Place furniture

– 40 pieces

• Results– PR40 pieces

– Use camera, move, resize, take a picture

Di t l

PR

– WOM

– High downloads

• Discover style– Thru quizzes

Apps (June 2011)Apps (June 2011)Ave Price: $3.64

Over 7 TBFree, 36%

Pay, 64%64%

$891,982.24

Apps Dirty Little SecretApps Dirty Little Secret

Average: 60 apps downloaded to iPhone or iPad

Paid Free

Average: 60 apps downloaded to iPhone or iPad

• 30% first downloaded

• 5% by day 21

b d

• 20% first downloaded

• 5% by day 25

b d• 1% by day 90 • 1% by day 90

Socialize Inc.

And/OR

+OR

=

North Face (China)North Face (China)• Stake virtual claim

Li k b &

• > 2 million unique visitors to web• Live score kept on web & 

outdoor electronic board

• 18 days

web

• > 651,000 red flags planted

• Champion > 4,00018 days Champion   4,000

McDonald’s Interactive BillboardMcDonald s Interactive Billboard

• Photo Catch– Using cell phone camera– Get one free

• Pick & Play– No app– picknplay se– picknplay.se– Geo‐location– Play on big screen in real‐time

– Last 30 sec get digital coupon w/directionsp /

Near Field CommunicationNear Field Communication

• Subset of RFID

• 150,000 NFC (+24,000)6 illi t diti l• 6 million traditional

Crone Consulting

Other mCommerce PlayersOther mCommerce Players

NFC PredictionsNFC Predictions

• Chip makers predict 40‐50 million NFC phonesChip makers predict 40 50 million NFC phones by 2011

• ~300 million phones worldwide (20%) phones• ~300 million phones worldwide (20%) phones with NFC by 2014 (Juniper Research)

30% f ll bil h ld id ill b• 30% of all mobile phones worldwide will be NFC enabled in 2015 (HIS research)

People Aren’t WaitingPeople Aren t Waiting

“Put your best people on mobile ”people on mobile.

Mobile: The Next Mass MediaMobile: The Next Mass Media

LegacyLegacy

• Print

• CinemaCinema

• TV

• Radio

• Internet

Mobile: The Next Mass MediaMobile: The Next Mass Media

Legacy MOBILELegacy

• Print

• Cinema

MOBILE

• Permanently carried

• Always connectedCinema

• TV

• Radio

Always connected

• Built‐in payment

• Augmented reality

• Internet • Audience measurement

• Capture social context of ticonsumption

• and finally…y

Mobile is PersonalMobile is Personal

The Power of Mobile Marketing

Judd WheelerThe Art of Mobile Conference 2011

jwheeler@comm‐arts.com918‐645‐5194 (m)9 8 6 5 5 9 ( )