PDF - Havas Media

Transcription

PDF - Havas Media

Global Mobile
A Worldview
August 2009
Consumer trends and practical
opportunities in mobile marketing
Lead Contributors
Sixto Arias
Managing Director
Mobext Spain
sixto.arias@mobext.mobi
Chris Bourke
Managing Director
Mobext UK
chris.bourke@mobext.mobi
Phuc Truong
Managing Director
Mobext US
phuc.truong@mobext.com
Dimitri Dautel
Managing Director
Mobext France
dimitri.dautel@havasdigital.com
Mark Egan
Director of Global New Business
Havas Digital
mark.egan@havasdigital.com
© 2009 Mobext :: Havas Digital
CONTENTS
1. Introduction. .................................................................................... 4
2. Highlights........................................................................................... 5
3. Interesting facts............................................................................ 6
4. Worldwide consumer trends: insights into
what’s driving growth in mobile products
and services...................................................................................... 7
• Asia: focus on Japan and
South Korea. Leaders of the Revolution.............. 7
• Europe: focus on UK and Western
Europe. High Growth........................................................ 13
• North America: focus on
United States. Catching Up......................................... 20
• Latin America: focus on Brazil
and Mexico. Growing Demand................................ 28
5. Coming to a 3rd Screen Near You!............................. 32
• The iPhone Phenomenon
& the Touchscreen Revolution. ................................. 32
• Mobile Video/TV................................................................... 35
6. Mobile in the Mix:
Opportunities for Marketers. .......................................... 37
7. Conclusion: Putting Mobile
in the Mix for your Brands................................................. 51
8. Glossary of terms...................................................................... 54
9. About us and contact details......................................... 55
References. .......................................................................................... 57
GLOBAL MOBILE A WORLDVIEW
INTRODUCTION
1
The mobile platform boasts a dizzying number of options available to marketers – including,
but not limited to: text and multimedia messaging, content and display advertising adapted
for mobile mini-browsers, “conventional” online content and display advertising for PC-like
browsers (from newer smartphones like the iPhone and Android G1), mobile applications,
mobiles games, paid search, as well as proximity-based interaction through outdoor media/
displays and shortcodes used in integrated marketing efforts, both of which cover the “last
mile” for reaching consumers.
The irony of mobile marketing is the enormous penetration of mobile (greater than 100
percent in some countries due to multiple device ownership) and the enormous flexibility
of the aforementioned tactics juxtaposed with the ability for personal, even tailored, communication. To that end, Mobext believes that the mobile platform has enormous potential
to both reach fragmenting audiences and increase interaction between brands and those
audiences. Mobext helps advertisers develop tactics for their brands and feature the platform as an integral component of their marketing strategies.
In this Insight report, we will tackle the following key questions:
• What are consumers doing that is stimulating the growth of mobile marketing?
• What are the evolving capabilities of mobile marketing and what should
marketers do to leverage the channel?
• How does this compare around the world, region by region?
• What relevant case studies of successful campaigns offer insights about
mobile marketing and advertising?
We are always interested in your particular business issues and questions, whether you’re
already a Mobext client or just want to know more about this subject. Please feel free to get
in touch.
Contact your local Mobext contact, the Media Contacts/MPG managing director in your
country, or an author of the Insight report. Phone numbers and e-mail addresses are at the
back of this publication and at http://www.mobext.mobi.
Highlights
2
Landscape: Growing consumer familiarity with mobile devices. The increasing massreach of text and picture messaging in Asia, Europe and America signals that mobile has
evolved from a voice medium to a multimedia communications channel. The next phase of
growth is being driven by consumer demand for digital photography, email, music and access to favorite Web applications, anytime and from anywhere.
Possibilities: Measurable experiments central to learning new tactics. Given the diverse
possibilities and the lack of a dominant approach, mobile marketing is at a relatively embryonic stage. A 2008 JupiterResearch survey of US marketers revealed that 26 percent of
respondents engaged in some form of mobile marketing.1 These tactics include direct-response text and picture advertising and promotions (SMS/MMS), branded content, quick
response codes (QR codes), paid mobile search, and banner ads. Advertisers who are advancing their mobile initiatives see the channel as a new opportunity to reach consumers in
a personal way. Marketers are learning that the mobile platform can be used to effectively
target individuals who have opted in to receive communications through text messages,
shortcodes, mobile browsing and purchase of premium digital content.
Recommendations. Given high SMS penetration in the US and Western Europe, Mobext
believes SMS should be offered as a consumer response channel wherever possible, especially for non-interactive media like traditional television, print and outdoor. As targeting
becomes available, for example, through location-based services like mobile search that are
still in an experimental stage, marketers willing to innovate can break through the clutter of
marketing messages.
Consumer guidelines from industry bodies like the Mobile Marketing Association (MMA)
should be adopted by agencies to effectively plan their initiatives. For example, “pull” mobile marketing is a best practice supported by the MMA. Pull marketing, as in the case of
Bluetooth, is where a consumer sees the opportunity to interact with mobile and actively
initiates contact. A real world example of this best practice is going to the cinema, seeing a
poster and downloading via Bluetooth an ad for an upcoming film or a ringtone for soundtrack of the showing film. This approach contrasts with push mobile marketing, where a cinema randomly sends ads to consumers who pass by. Mobext recommends that marketers
familiarize themselves with the MMA’s best practices, which are updated annually to guide
implementation of shortcode programs, interactive voice response, and off-portal mobile
Web sites. Several executives from Mobext have leadership roles in regional MMAs.
Link to download the MMA Best Practice Guidelines
www.mmaglobal.com/bestpractices.pdf
Interesting facts
3
In its Q4 2008 results, Nokia estimated that global industry mobile volume in 2008 was 1.21
billion devices, or a shipment of 3.3 million units per day.2 Nokia is also estimated to command roughly 40 percent of the global smartphone market.3
Since the European launch of the ad-supported mobile virtual network operator Blyk in
September 2007, 200,000 16-24 year olds have signed up in the UK by invitation only (as of
9 February 2009).4 On its Web site, Blyk cites case studies of SMS and MMS campaigns with
response rates ranging from 34 percent to 67 percent.5
According to a report from Monocle magazine, mobile TV in Asia reached a tipping-point
back in 2005 when South Korean teenagers downloaded an average of 16 minutes of shortform video each day.
An NTT Docomo press release from February 2007 announced achievement of a 5 Gbps
transmission speed. 6 A few years ago, the announced goal was a commercially viable 4G
network by 2010.7 Such a network could transmit contents of an entire DVD in under a
minute. To put this in context, based on current 3G data transfer rates in US / Western Europe, a DVD could take nearly a full day to download.
Estimated* iPhones Around the World
Brazil............. 400,000
Portugal..... <50,000
France.......... 1 million
Spain............. 450,000
Mexico. ....... 240,000
US.................... 8 million (and 3.5 million iTouches with Wifi)
Source: *Mobext estimates
4
Worldwide consumer trends
Asia: focus on JAPAN AND South Korea
Leaders of the revolution
For decades, Japan has been the world-leading market for the mobile industry. An earlyadopter culture is combined with well-funded telecom companies and a strong tradition
of research and development. It is no surprise that the Japanese have pioneered many of
today’s 3G mobile products and services. One representation of a market’s mobile sophistication is the average revenue per user (ARPU) from data services as well as the percentage
of total revenues that data services comprise. When measured along those two axes, Japan
is far and away the world’s mobile leader.8
Philippines ($2.1 - 45%)
Japan
40%
China
Hong Kong
Germany
Italy
Portugal
Czech
Malaysia
20%
Singapore
New Zealand
Sweden
Denmark
Mexico
Israel
Greece
US
Ireland
Switzerland
Norway
Austria
Belgium
Netherlands
South Korea
Finland
Russia
UK
Source: Chetan Sharma Consulting, 2009
Data as % of total revenues
(average across carriers in the country)
Indonesia
Spain
France
Canada
Turkey
Thailand
10%
Brazil
India
Asia
Europe
Americas
$5
$10
$20
Average Wireless Data ARPU (USD) for carriers in a country
South Korea is another mobile powerhouse, where key outputs include pilots of 4G technologies and trailblazing TV services. In Japan and South Korea, over half of all mobile
subscribers are on a 3G network.
4. Worldwide consumer trends
JAPAN AND SOUTH KOREA
Mobile Internet
To illustrate Japan’s strong demand for mobile services, the country’s population is 127 million, and there are approximately 110 million mobile subscribers, according to the year-end
2008 figures from the TCA.9 Factoring in some duplication, the penetration has peaked
around 80 percent of the country’s population. In the mobile market itself, 3G accounts for
almost 80 percent. Explosive growth in mobile Internet usage is mirrored in a rapidly expanding marketing industry. In addition, Asians are much more likely to pay for select kinds
of mobile content than people from other regions.10
Willingness of adults in select countries worldwide to pay
for select mobile content, by region, 2007 (% of respondents)
ASIA
NORTH
AMERICA
LATIN
AMERICA
EUROPE
I am willing to pay for access
8.5%
1.0%
1.6%
1.1%
I am willing to pay a limited
amount for access
29.5%
12.1%
13.0%
12.6%
The activity is important but
I do not want to pay for access
43.6%
71.6%
53.7%
64.8%
I do not mind receiving ads in
exchange for free access
18.4%
15.2%
31.8%
21.5%
7.3%
1.0%
3.1%
1.3%
amount for access
28.2%
13.8%
9.9%
8.9%
48.0%
76.3%
63.6%
67.9%
16.4%
8.9%
23.4%
21.9%
6.1%
1.1%
1.7%
1.3%
amount for access
29.9%
8.4%
9.4%
10.4%
42.5%
74.2%
57.5%
66.3%
21.5%
16.3%
31.3%
22.0%
GAMERS
INSTANT MESSAGING
MULTIMEDIA (MUSIC, VIDEO)
NOTE: ages 16+; numbers may not add up to 100% due to rounding
KPMG International, “Consumers and Convergence II”, October 18, 2007
Source: www.eMarketer.com
Handsets and devices
Japanese consumer trends suggest that the role of the desktop computer may soon be
overtaken by radical new 3G smartphones, which bring together all the “must-have” features of computers, together with games consoles, camcorders and terabytes of memory.
For marketers, the shift toward mobile computing creates opportunities for new services
that work with the new generation of smartphones – to make life more informative, productive, and enjoyable.
Cross-platform
New entertainment formats that work across media, including TV, Internet and mobile, address
audience fragmentation while increasing interaction time between brands and consumers.
Audiences at live sporting events are benefiting from new mobile services designed to
enhance viewing experiences. Typically, an advance awareness campaign using outdoor,
printed and online media is used to promote a mobile Web site. During the event, the site
provides a news feed for event visitors, as well as deeper information such as team and
player profiles. There are also branded downloads like games and wallpapers, that can be
used after the event and shared with friends.
For roaming events like golf and motor sports, mobile content can be targeted at audiences
using infrared technology. By tailoring the content and experiences that make up a crossplatform campaign, Japanese marketers offer a variety of touchpoints that raise awareness
of the activity and increase interaction time with audiences while at the event. This leads to
greater audience retention and return for the brand.
South Korean mobile TV producer TU Media reports that consumption patterns of mobile
video differ from those of traditional TV, with commuting time, lunchtime and even indoors
during office hours being most popular. Another insight is that South Koreans place more
emphasis on the quality of the content they consume over length. The most popular genres
are live sports and news, according to CEO Suh Young-kil, who said so at CommunicAsia in
June 2007. Suh said that the average user watched for over an hour a day.11
Broadcaster-produced content is not all that South Koreans watch on their handsets. Similar
to a high-end sophisticated Webcam setup, the 1-year old SHOW Monitoring System transmits live video from a camera to a phone, perfect for security and surveillance.
M-commerce
The m-commerce landscape in Japan demonstrates the potential future of the retail market
for the rest of the world. M-commerce is expected to grow 45 percent to USD $26 billion in
2011, compared to 2007.12 Shopping with mobile devices is already a mainstream activity
in Japan. A 2007 study from the UK’s Guardian reported that three-quarters of Japanese
consumers said they enjoyed online clothes shopping with their mobile device at least once
a month.13
M-COMMERCE IN JAPAN, 2007-2011 (billions)
2007
$17.9
2008
2009
2010
2011
$20.5
$23.0
$24.5
$26.0
Cybozu Media and Technology, 2007 as cited by US Commercial Service,
“Japan: Service and Retail Franchising”, May 2008
One innovation, which has bloomed from NTT DoCoMo’s e-wallet devices, is called ‘Osaifu-Keitai’. Customers wave their specially equipped phone over a reader device to use
them as e-money, e-credit cards, train/plane tickets, membership cards and door keys. The
wallet handsets have contactless integrated circuit (CIC) chips embedded, and there are
50 million of these phones in Japan.14 The e-wallets have become hugely popular, for the
simple reason that they combine convenient timesaving services. Marketing and CRM applications include bill payment, online banking, and loyalty programs, all of which illustrate
a rich opportunity for service providers who can introduce the e-wallet product elsewhere
in the world. The drawback is security vulnerability since so much personal information is
concentrated in a single device.
10
South Koreans are also as comfortable transacting in m-commerce as e-commerce. Mobile
trends blog mTrends reported that 63 percent of South Koreans make payments with their
mobile phones, nearly everyone buys ringtones, and 37 percent download mobile games.15
Response Mechanisms
The mass-market adoption of Quick Response (QR) codes gives
packaged goods marketers an effective mechanism to direct consumers from product packaging to Web sites. There, they can offer product information and engaging promotional content and
experiences. Ambient media containing QR codes is used within
the media mix to raise awareness, drive traffic, and in some cases provide deeper layers of information – for instance, about TV
characters and plot lines.
As evidence of the huge potential for QR Codes, a ‘What Japan Thinks’ report from 2008
reveals that when the Japanese use a phone to request information about an ad, 42 percent
scan a QR Code, and 35 percent send a blank email (to access the URL from the reply). Surprisingly, a third of those surveyed said they would type a URL directly to access information
– exposing the myth that people won’t enter URLs on mobile devices.16 Indeed, URLs are a
viable response method but should be kept to a minimum length.
Social Media
Online networks play a major role in Japanese culture, helping to foster a sense of community that is often missing from everyday Japanese life.
Mixi, Japan’s largest social networking site, has more members accessing from mobile devices than PCs. Niche social networks, like Mobile Game (often condensed to “Mobaga” or
“Mobagay”) Town from company DeNA, enable the Japanese to connect around passion
areas, games, and minutiae, and have proven to be a big hit. The success of niche social
media demonstrates that the long tail of the Internet creates new opportunities for publishers and broadcasters alike.
starting page
game screen
profile page
avatar in virtual room
Source: http://www.techcrunch.com/wp-content/uploads/2008/08/mobagetown-screens.png
11
Cyworld, South Korea’s top social networking site, started in 1999, and took off in 2003, the
year it was acquired by telco SK Communications. With near universal reach in the country,
many young Koreans are “Cyholics” and the extension of Cyworld into mobile devices further increases Cyworld immersion. Cyworld has extended into the US, China, Japan, and
Taiwan and still has more expansion plans on the horizon.
MINI HOMPY
Cyworld zone:
Map, Video service
ITEM SHOP
MY PICTURE
EMOTION
EXPRESSION
About service fees
Find subscribers
Registering for fixed payment
1. Guest book
2. Photo album
3. Friends list
4. Diary
5. Plaza
6. BBS
7. Club
8. “My Cy” (settings)
12
UK AND WESTERN EUROPE
Europe: focus on UK and Western Europe
High Growth
Although still trailing the early-adopter cultures of Japan and South Korea, the UK and Germany lead the European region with 65 million and 49 million mobile subscribers, respectively. Individual mobile penetration is fairly saturated with a current 80 percent penetration
of the European population.17
150%
145%
133%
60
116%
107%
112%
110%
108%
104%
100%
9
8
8
7
Spain
Netherlands
Greece
Portugal
Belgium
Sweden
Number of individual mobile users
7
6
4
4
4
3
75%
Ireland
13
Norway
37
Finland
47
Denmark
48
Switzerland
49
Italy
65
France
86%
UK
0
125%
108%
97%
20
111%
114%
114% 113%
Austria
40
116%
Percentage of Overall Population
80
Germany
Number of Individual Mobile Users (in millions)
TOP FIVE COUNTRIES REPRESENTED 77% OF EUROPEAN MOBILE MARKET IN 2007
MOBILE PENETRATION AND SUBSCRIBERS BY COUNTRY IN 2007
Active mobile SIM penetration
Source: JupiterResearch European Mobile Forecast, July 2008 (Western Europe)
Mobile Internet
The combination of more affordable and easy-to-use handsets like the iPhone, together
with the roll-out of flat-rate data plans, popular email services from Yahoo! and Google, and
deployment of faster mobile networks (3G and 3.5G), is fuelling steady growth of the mobile
Internet. comScore estimates that one out of four Britons aged 15+ accesses the Internet
using a mobile device.18
In the past, factors that hindered mobile browsing were a lack of knowledge about how
to access the mobile Internet and a lack of awareness of flat-rate data plans. However, operators are increasingly bundling flat-rate data plans along with voice services. IAB UK announced that the number of people on unlimited data plans doubled in 2008.19
13
Percentage of Mobile Subscribers
MOST MOBILE SERVICES WILL REACH CRITICAL MASS BY 2011
ADOPTION OF VARIOUS MOBILE SERVICES, 2007 TO 2013
100%
80%
60%
Mass market
40%
20%
Critical mass
0%
2007
2008
2009
2010
2011
2012
2013
SMS
72%
73%
74%
75%
76%
76%
76%
BROWSING/INTERNET
23%
28%
33%
38%
41%
45%
47%
MMS
24%
26%
39%
31%
32%
34%
35%
MUSIC
15%
22%
26%
29%
31%
32%
34%
VIDEO/TV
8%
12%
17%
21%
25%
28%
31%
GAMES
16%
19%
23%
26%
28%
30%
31%
E-MAIL
8%
10%
13%
16%
19%
22%
25%
IM
1%
2%
4%
5%
7%
9%
10%
Source: JupiterResearch European Mobile Forecast, July 2008 (Western Europe)
As a whole, most mobile services in Europe are forecasted to reach critical mass by 2011.
3G will be mass market (greater than 50 percent penetration) by 2010 and 3.5G will be mass
market in 2012. By country, Italy leads the way with 20 million 3G subscribers, representing 41 percent penetration. In 2007, Spain had 9 million 3G subscribers (25%), the UK has
11 million subscribers (23%), and France and Germany 8 million subscribers (16% and 13%
penetration, respectively).20
Three popular consumer activities in the UK for the mobile Internet include listening to
music (23%), accessing news and information on a mobile browser (20%), and accessing
email (13%).21
Trailing the UK, the markets with the strongest uptake for the mobile Internet are Germany,
Italy and Spain, respectively. The impact for the marketing industry is significant, as mobile
marketing advances from direct-response SMS campaigns and mobile Internet sites to new
areas like 3G mobile video, picture messaging and branded games. Although digital advertising spend continues to grow in the region, mobile represented a fraction of advertiser’s
interactive budgets. The slice of the pie is predicted to increase globally over the next few
years. Bernstein Research forecasted that mobile advertising worldwide would quadruple
from $4.2 billion USD in 2008 (7% of online ad spending) to $17.0 billion USD by 2012 (19%
of online ad spending).22
14
WORLDWIDE MOBILE AD SPENDING ($ BILLIONS AND % OF TOTAL DIGITAL ADVERTISING)
20
18%
16%
16
20%
16%
13%
12
8
12%
10%
8%
8%
6%
4
0
4%
2.7
4.7
6.8
10.1
13.6
17.5
2007
2008
2009
2010
2011
2012
0%
Source: Bernstein Research, “US Internet – The End of the Beginning“, May 2008
Gadgets and devices
Years of phone subsidization in the UK have resulted in many upgrades to smartphone devices. Penetration is also high in Spain and Italy. Regional carrier O2 announced at the end
of February 2009 that it had sold 1 million iPhones (over 16 months). This is surprisingly slow
compared to Nokia’s N95 smartphone, which reached the milestone in seven months in
2007. Nevertheless, the iPhone effect on Web consumption is pronounced, even over other
smartphones. British iPhone users are twice as likely to check mobile email as the typical
smartphone user and two and a half times more likely to access news or information through
a downloaded application.23
MOBILE CONTENT USED BY iPHONE, SMARTPHONE AND MOBILE PHONE USERS
IN THE UK, JANUARY 2009 (% OF TOTAL)
iPHONE USERS
TOTAL
SMARTPHONE USERS
TOTAL MOBILE
PHONE USERS
Accessed news/info via browser
79.7%
48.0%
19.8%
Accessed e-mail
75.4%
35.4%
13.1%
Listened to mobile music
65.6%
40.5%
22.6%
Accessed news or info via
downloaded application
55.6%
22.1%
6.3%
Accessed weather
55.5%
26.1%
9.2%
Used web search
55.1%
31.9%
12.3%
Accessed social networking site
54.8%
29.6%
12.7%
NOTE: based on three-month average for the period ending January 2009; ages 13+
comScore Mobile as cited in press release, March 26, 2009
15
In the short term, all handset manufacturers will be affected by the economic downturn as
consumers wait longer to replace their mobile phones. In the long run, however, because
of price reduction and subsidization from retail partners, the 3G iPhone will continue to appeal to more of the mass market, slowly eroding the market share of Nokia, Sony Ericsson
and Samsung. Exclusive relationships between carriers and high-end handsets will become
the norm.
Cross-platform
With a view to fix audience fragmentation, leading broadcasters and producers are pioneering new content formats to work across TV, the Web and mobile devices. TV producer
Endemol launched a reality series for Bebo called “The Gap Year”, which targets the highly
desirable 18 to 24 year old age group, and secured sponsors including Canon, The Royal Air
Force, Tourism Auckland and Tourism Australia.
Channel 4 is a major player whose Short Cuts “catch-up” subscription service offers viewers
highlight packages from its stable of popular entertainment programming. Celebrity Big
Brother is a popular reality TV show that offered Channel 4 audiences free one-minute mobisodes (made-for-mobile episodes) from the series, along with 10-second ads. Trials of the
ad-subsidized mobisodes on Channel 4 mobile show high consumer demand. Advertiser
interest in mobile cross-platform offerings make this content viable for publishers, including
anything from animated banners and program sponsorship to interactive ads, pre and postroll ads and viral trailers.
CNN is another prime example of multi-platform distribution. CNN International has several prominent distribution deals for CNN mobile video content with telecom operators
around the world, including Vodafone, Sky, Orange and the previously mentioned TU Media
in South Korea.
Source: http://cnnmobile.com/cnni_BN/services.do
16
A study from CNN International reveals that nearly one fifth of its viewers, 18 percent of the
audience, regularly listen to podcasts and one-third listen to online radio. A further 70 percent read magazines online and 74 percent say they watch recorded TV. CNN says the study
emphasizes the significance of mobile, which is often overlooked but has the same audience
size that the CNN Web site had two years ago. CNN has responded to the increase in the
mobile audience by changing their fixed price of media inventory to a CPM-based model.
M-commerce
Premium mobile content is dominated by entertainment (video, games, music). The five
largest European countries (UK, Germany, France, Italy, Spain) will account for close to 80
percent of the mobile content market by 2013.24 Meanwhile, consider the market for the
early content revenue driver, ringtones. Competition from paid-for music downloads, sideloaded music (where music is downloaded to PC from fixed-line Internet, then moved from
PC to mobile) and increased access to music through flat-rate data plans all factor into ringtone revenue reaching a plateau and likely declining over the next few years.
An example of a typical m-commerce transaction today is the service offered by Transport
for London, which allows people driving into the capital to pay the £8 daily or £160 monthly
traffic congestion charge via text messaging. As the m-commerce market develops, the
challenge for marketers is to design easy-to-use products and use clever campaign ideas
that educate consumers about how to use them.
Finally, the global not-for-profit group GS1 is governed by industrial and retail groups in
order to standardize mobile technologies for accelerated adoption. Technologies include
barcode reader and NFC (near-field communication) applications.
Search
Google dominates mobile browser-based searches in Western Europe, ranging from 63 percent in France to 88 percent in Italy.25 The data does not factor searching through all-in-one
applications like Yahoo! Go or searching via bundled applications, where distribution deals
with carriers play a role.
Top Mobile Search Brands By Mobile Searcher Penetration
Three-month average ending June 2008 (United States and Western Europe)
France
Germany
Italy
Spain
UK
top brand
penetration
second brand
PENETRATION
Google
Google
Google
Google
Google
62.9%
85.1%
88.1%
82.5%
74.0%
MSN/Windows Live Search
Yahoo!
Yahoo!
MSN/Windows Live Search
Yahoo!
9.6%
9.4%
19.5%
12.1%
16.2%
Source: comScore M:Metrics MobiLens
17
Social media
Steady demand for user-created content combined with social tools continue to fuel the
growth of social networks. Flat-rate data-plans are set to do for social networking what
affordable broadband did for the fixed-line Internet. Consumers use more of everything.
As of January 2009, 13 percent of UK mobile phone users access social networking sites. 26
Nielsen Online estimates the figure to be nearly 2 million people, or 23 percent of mobile
Web users.27 Facebook is already the fourth most popular mobile Web site, competing
with BBC properties, Google, and Hotmail.28 The growth of social media for mobile demonstrates how user behavior is evolving from checking weather or airline flight status to
time-intensive interaction.
TOP 10 UK WEBSITES, RANKED BY UNIQUE MOBILE
INTERNET AUDIENCE, Q3 2008 (Millions)
1. BBC NEWS
1.7
2. GOOGLE
1.7
3. BBC WEATHER
1.5
4. FACEBOOK
1.5
5. WINDOWS LIVE HOTMAIL
1.0
6. BBC SPORT
1.0
7. eBAY
0.9
8. YAHOO! MAIL
0.9
9. SKY SPORTS
10. GMAIL
0.8
0.6
NOTE: accessed at least once during each month of the quarter
Nielsen Online, “Mobile Media View” as cited in press release, November 24, 2008
Response mechanisms
A milestone was reached in Britain, following in Japan’s footsteps, when market-leading
daily tabloid publisher The Sun carried out a large-scale pilot of QR code technology in
2007. Consumer response was confirmed a success due to 11,000 readers responding to
QR codes during the first few weeks. A pullout supplement that ran in the tabloid educating
readers about using QR codes was a key factor in the pilot’s success. With big advertisers
like Sky, Twentieth Century Fox, News Corp International and Ladbrokes all participating in
18
the pilot, it is clear that usage of QR codes will grow over the medium term. Nokia handsets
even come with QR-reading capability pre-installed.29
Another example of QR integration is this year’s launch of the Volvo C70. The pan-European
marketing campaign to launch the vehicle includes QR codes in print media as a method of
piquing consumer curiosity and extending a mechanism for further information gathering.
Finally, Mobext recommends that marketers note the key differences comScore noted between late 2007 and late 2008 for receptivity and response to SMS ads in Western Europe.
Just about all industries that saw increased volume of SMS ads also had a decreased response rate. Conversely, all industries that delivered more SMS ads year-over-year had an
increased response rate. This trend will be an important to keep an eye on.30 As is the case
with email marketing, mobile marketers will be delicately striking a balance with consumers
among promotional offers, message frequency, and response rate.
SMS ADVERTISING AUDIENCE AND RESPONSE RATE IN SELECT COUNTRIES IN WESTERN
EUROPE, BY PRODUCT CATEGORY, AUGUST 2007 & AUGUST 2008 (THOUSANDS AND % CHANGE)
RECEIVED SMS AD
RESPONSE RATE
AUGUST
2007
AUGUST
2008
% CHANGE
AUGUST
2007
AUGUST
2008
Downloads for mobile phone
40,792
35,915
-12.0%
4.4%
3.9%
News or informations
25,929
22,122
-14.7%
2.8%
3.2%
Mobile phone or plan
32,222
31,574
-2.0%
4.6%
4.7%
Entertainment
12,644
11,230
-11.2%
4.3%
5.1%
111,587
100,841
-9.6%
4.1%
4.1%
Clothing/fashion
3,982
5,503
38.2%
5.8%
6.4%
Restaurants
1,037
1,424
37.3%
11.6%
15.5%
Cars
4,407
3,731
-15.4%
11.2%
7.9%
Food
1,413
2,162
53.0%
9.2%
12.6%
Financial services
8,963
9,956
11.1%
3.7%
4.7%
Consumer electronics
3,957
4,647
17.4%
6.3%
6.7%
Travel
5,779
6,602
14.2%
4.9%
5.8%
Total non-mobile or media sectors
29,539
34,024
15.2%
6.2%
6.8%
Total mobile and media sectors
NOTE: France, Germany, Italy, Spain and the UK; three-month averages for periods
ending August 2007 and August 2008
comScore M:Metrics as cited in press release, October 31, 2008
19
UNITED STATES
NORTH AMERICA: focus on UNITED STATES
CATCHING UP
The US mobile services market had long lagged behind Asia and Europe. However, the
US market has accelerated quickly, thanks in large part to the iPhone. As of June 2008, the
US market had 226 million mobile subscribers and reached the same penetration of 3G
subscribers (28 percent) as the top five countries in Europe. The actual number of US 3G
subscribers was 64 million.31
Mobile Internet
Demand for mobile Internet services has skyrocketed in the last two years (US audience
growth of 74 percent),32 thanks to the combined uptake of flat-rate data subscriptions, a
massive increase in 3G subscriptions, and of course, the iPhone. With quick iPhone proliferation, US mobile Internet penetration (50 million people, representing 18 percent of mobile
subscribers) is higher than the UK and many other Western European countries.33
mobile internet penetration (by market)
18.2%
16.9%
16.0%
13.5%
13.2%
12.4%
11.9%
9.6%
7.1%
4.3%
2.2%
US
UK
Canada
France
Italy
Spain
Russia
Germany
China
Brazil
India
Nielsen Mobile. Mobile Internet penetration amongst mobile subscribers. Latest estimates
(US, February 2009; EU, Q1 2009; Canada Q4 2008; BRIC Q1 2008)
Source: The Nielsen Company, The Global Online Media Landscape, April 2009
20
UNITED STATES
Messaging continues to gain traction through mobile devices, with 53 percent of American
mobile subscribers using SMS, 26 percent using MMS, 15 percent using mobile email and
12 percent using instant messaging services. 34 Lastly, mobile video is growing – up to 10.3
million Americans are watching mobile video. The penetration rate is still in the single digits
(5 percent of American mobile subscribers), a mere blip compared to the estimated 50+
percent penetration of mobile video in Japan and South Korea.35
Although consumer mobile Internet services continue to grow in the region, the mobile platform still represents a tiny fraction of US advertiser’s interactive budgets. eMarketer predicts
this ratio to grow from less than 3 percent in 2008 to 9 percent in five years’ time.
US MOBILE ADVERTISING SPENDING, 2008-2013
(Millions and % CHANGE / % OF TOTAL ONLINE ADVERTISING SPENDING)
10%
9.0%
8%
7.1%
6%
4.7%
3.7%
$1,410 (41.7%)
$2,390 (69.5%)
$3,330 (39.3%)
2009
$995 (30.9%)
$760 (17.3%)
$648 (35.0%)
2008
4%
3.1%
2.8%
2010
2011
2012
2013
US Mobile
Advertising
Spending
+ % change
Mobile Advertising
Spending as a
% of Total Online
Advertising
Spending
2%
0%
NOTE: includes mobile message advertising, mobile display advertising and mobile search advertising.
eMarketer, February 2009
Gadgets and devices
Better marketing of smartphone multimedia features, including photography and music,
has driven a dramatic upgrade cycle in the past few years. Price is a key driver since most
operators subsidize phones. Smartphones now comprise nearly a quarter of the US handset market.36
21
UNITED STATES
Telecom subsidization makes the 3G iPhone affordable (USD $199) to the mass market. As
alluded to previously, the iPhone has been instrumental in advancing mobile data services,
with 84 percent of iPhone users using email, 82 percent browsing news and information
sites, 59 percent using a news and information application or widget. A surprisingly high 31
percent of iPhone users watch mobile video (likely a mix of QuickTime movie trailers and
YouTube, as heavily promoted by Apple), compared to the 5 percent market average.37
service penetration by smartphone type, us (% OF RESPONDENTS)
64%
Browsing: news & info
82%
62%
72%
E-mail
44%
25%
Applications: news & info
59%
29%
28%
Access SNS
44%
28%
19%
Music
60%
28%
6%
Video
21%
30%
7%
Downloaded games
0%
10%
20%
RIM
32%
11%
7%
6%
6%
Respond SMS ads
84%
iPhone
Smartphone
30%
40%
50%
60%
70%
80%
90%
Source: comScore MobiLens November 2008
Research firm NPD noted that Research in Motion (RIM) was the top vendor in the US market
in Q1 2009 due to a two-for-one promotion, overtaking the iPhone 3G, and pushing market
share to 50 percent. RIM’s BlackBerry Curve, Storm and Pearl were among the five most popular models. Meanwhile, the most formidable challengers over the next few years may prove to
be Google’s Android-based phones, which ranked fifth (the T-Mobile G1).38
It took Apple two and a half months in 2007 to reach the one million units sold mark. On its
recent earnings call, T-Mobile announced that it has sold its one millionth G1 phone based
on the Android open-source operating system, meaning it took Google six months. Nevertheless, it is still an impressive feat considering the incredible anticipation and fervor for the
iPhone. The traction has T-Mobile forging ahead with additional handsets based on Android.
Not to be outdone, Apple announced that with the release of its latest iPhone 3G S in late
June sold 1 million units in 3 days.
22
UNITED STATES
Cross-platform
In response to growing changes in audience behavior, owners and producers of television
content are designing new formats and adapting their business models. For example, the
12 to 34 year old audience MTV serves watches less broadcast TV. In order to address this
trend for the top show “The Hills”, MTV created a virtual version of the show that has already attracted over two million users. In addition, MTV provides mobile streams of the
show that are simulcast with the TV broadcast. According to MTV, it had 1 million streams of
“The Hills” in Q1 2008.
CBS launched quiz format “Million Dollar Password” as a modern update on the classic “Password” game show. The program gives its audience choice and control about how to watch
the series, with TV episodes, catch-up clips for the web and a casual game for mobile.
The long-running series America’s Next Top Model is another TV format that has developed a mobile game to reach its audience. Many American marketers believe it is up to
the broadcasters to invest in achieving sufficient audience before they invest in advertising
content for Web and mobile. A few brave brands are jumping in. History has shown this
mentality pays off – advertisers in novel ad formats and new media benefit from significantly
higher awareness and recall than advertising in tried and true media.
23
UNITED STATES
M-commerce
Unlike Japan, Americans are not accustomed to using their mobile phone to pay for goods
or services. According to a Nielsen Mobile press release a year ago, less than four percent
of Americans have engaged m-commerce. However, data usage is an indicator of sophistication and ease with the mobile platform. Half of all data-service users say they expect to
participate in mobile commerce in the future. Nielsen’s research found that men are more
likely than women to use their phone for commerce. The biggest hurdle for m-commerce is
similar to the original challenge that faced e-commerce. Forty-one percent of data users not
conducting mobile commerce cited security as their biggest concern.39
Ticket value for m-commerce will grow over the medium term in the US, from cheap items
like mobile content to more expensive items like clothing. Mobext recommend that marketers assess their own businesses. Are your customers prepared to engage in m-commerce?
What infrastructure is necessary to accommodate them?
US ONLINE RETAILERS THAT HAVE A MOBILE COMMERCE SITE,
OCTOBER 2008 (% OF RESPONDENTS)
Have mobile commerce site:
4.4%
Do not have mobile commerce site:
95.6%
Internet Retailer, “Website Design, Content and Rich Media”,
conduced by Knowledge Marketing, January 2009
Following the notion of Osaifu-Keitai, Texas Instruments has been testing cashless payments where consumers attach a one-square-inch sticker with an embedded RFID chip to
their mobile device. The goal is to offer a tap and go payment service that doesn’t require
consumers to install anything on their mobile device.
24
UNITED STATES
Search
As in Europe with the fixed-line Internet, Google also dominates browser-based mobile
searching in the US (63 percent compared to 35 percent for Yahoo!), although Yahoo! has
a stronger mobile search presence in the US than in other countries.40 Again, there are
multiple types of searches not captured here – “on-deck” searches, local searches, and
app/widget-based searches. Nevertheless, the fact that Google is synonymous with search
bodes well for the company in the mobile sector.
An intriguing shakeout will be the battle of services from Google (GOOG-411), Jingle Networks (1-800-FREE411), and other free directory assistance providers and the mobile operators’ fee-based services for directory assistance. Mobext believes that the end result can only
be an inevitable loss of the carriers’ revenue stream from directory assistance.
Social media
Among smartphone users in the US, mobile browsing has quickly evolved from quick hits
of checking information like sports scores and weather updates to longer visits of browsing
and interacting with content on social networks. Mobile social networking and blogging is an
increasingly common daily activity. In fact, more than four times as many Americans access a
social networking site or blog with their mobile device on a daily basis than did a year ago.41
“Soon after the launch of the 3G iPhone, Facebook,
with one of the most popular iPhone applications available, surpassed MySpace in mobile usage in the U.S.”
Source: Nielsen Online, Global Faces and Networked Places: A Nielsen
Report on Social Networking’s New Global Footprint, March 2009
Besides Facebook and MySpace, mobile community MocoSpace announced that it reached
6 million users at the end of last year, primarily through word-of-mouth among its young
members.42 As more people ramp up their use of social media while on the go, mobile will
do what the hyperlink did for Web sites, speeding up the flow of communication and igniting communities – all of which will make the world feel smaller.
Another social network and micro-blogging service that has exploded onto the scene is
Twitter. According to comscore in March 2009, worldwide visitors to Twitter.com increased
95% from 9.8 million to 19.1 million.
At its core, Twitter is a communication platform that enables its users to quickly and easily
send and read each others’ updates (known as tweets). Tweets are text-based, have a limit
of 140 characters and can be sent via Twitter.com, SMS or through external applications via
API (application programming interface).
25
UNITED STATES
Media companies such as Viacom and Time Warner to name a few have quickly adopted
Twitter through its many media outlets. By doing so, media companies and regularly users
alike have another method to quickly disseminate (and receive) information to Twitter users.
A recent example that demonstrates the effectiveness of Twitter as a communication vehicle (as well as other social media for that matter) was the sudden death of global pop
icon Michael Jackson. Once it was announced by the media (TV, radio, on-line, etc.) that
Michael Jackson had died, tweets containing “Michael Jackson” comprised 22.61% of the
total tweets (http://mashable.com/2009/06/25/michael-jackson-twitter/). Therefore, if users
followed the many media outlets via Twitter or linked to their friends through the service,
the immediate global awareness of Michael Jackson’s death occurred in minutes.
A “gallery’ of
Twitter ‘Followers”
7 Things to know about Twitter….
http://net.educause.edu/ir/library/pdf/ELI7027.pdf
26
UNITED STATES
Response mechanisms
One of the highest profile uses of mobile response has been on the popular American TV
show American Idol where viewers are encouraged to use shortcodes to vote for their contestant of choice. As a show sponsor, telecommunications giant AT&T benefits from text
voting through messaging revenues. However, AT&T also received widespread criticism for
sending unsolicited text messages to subscribers that promoted the show.
While campaigning last year, US President Barack Obama encouraged people to sign up for
campaign updates by providing their mobile numbers to have an additional channel by which
to communicate with supporters. Nielsen Mobile estimates that 2.9 million mobile users received the text with the announcement of Joe Biden as Obama’s running mate.43
A number of US brands have been actively using shortcode marketing, including Coca Cola
(as part of its “My Coke Rewards” program), Subway, Arby’s, Papa Johns, Domino’s Pizza,
Pizza Hut, BestBuy, Foot Locker. 44 As long as there is a perceived value exchange, US consumers are willing participants.
US MOBILE PHONE USERS WHO HAVE RESPONDED TO MOBILE PHONE
OFFERS, BY OFFER TYPE, MARCH-APRIL 2008 (% OF RESPONDENTS)
Responded to a text message for a product or service
70%
17%
participated in surveys sent to my mobile phone
42%
10%
responded to an e-mail offer for a product or service
30%
7%
responded to a web offer on mobile phone’s internet browser
22%
5%
responded to a coupon offer for a product or service
18%
4%
% of responders to
mobile offers (n=193)
% of all respondents
(n=800)
NOTE: ages 15+
Direct Marketing Association (DMA), “Mobile Marketing: Consumer Perspectives”
July 2008 cited by Marketing Charts, July 21, 2008
27
BRAZIL & MEXICO
LATIN AMERICA: focus on BRAZIL & mexico
GROWING DEMAND
After years of limited Internet adoption and slow broadband growth, Mobext sees a great
growth curve ahead for mobile services and interactive marketing in Latin America. The
region has had economic growth for two years in a row, led by Brazil and Mexico, the countries with the most Internet users in the region. Latin America’s growth is significant because
mobile will be the primary Interactive screen for a new generation of consumers. Former
Mobile Marketing Association President Laura Marriott noted in July 2008 that mobile penetration in Latin America was six times the PC penetration.45
“Mobile is not simply viewed as an extension of the Web in
BRIC (Brazil, Russia, India, and China), as it is in the US, Western Europe and parts of Asia-Pacific. Mobile is the Internet for
an increasingly large and attractive consumer segment – an
important distinction for marketers to keep in mind.”
John du Pre Gauntt, eMarketer Senior Analyst
Mobile Internet and content consumption
MOBILE SUBSCRIPTIONS AND PENETRATION WORLDWIDE, BY REGION
2005-2008 (MILLIONS AND % OF POPULATION)
NORTH
AMERICA
EUROPE
ASIA-Pacific
LATIN
AMERICA
middle east
and africa
total
2005
224.8
691.7
820.0
232.0
188.2
2,156.7
% penetration
68.4%
73.1%
22.8%
43.1%
18.9%
27.6%
2006
251.5
801.8
1,058.1
296.1
271.7
2,679.2
% penetration
75.9%
90.4%
29.1%
54.4%
26.7%
34.3%
2007
277.0
889.2
1,363.0
362.4
379.9
3,271.6
% penetration
82.8%
100.8%
37.0%
65.8%
36.6%
41.3%
2008
294.0
938.1
1,686.5
425.6
475.1
3,819.4
% penetration
87.1%
106.6%
45.3%
76.3%
44.8%
46.5%
NOTE: numbers may not add up to total due to rounding
IDATE and ENTER, “Mobile 2009: Markets & Trends”, sponsored by Oesía, February 5, 2009
28
BRAZIL & MEXICO
eMarketer predicts Brazil’s already hefty 140 million subscriber base to grow to 176 million
by 2012.46 Popular consumer behavior includes; 51 percent using text messaging, 15 percent sending & receiving photos, and 11 percent accessing music, videos and ringtones.47
Given that a high proportion of Brazilians are pre-paid users, promotions such as free airtime or alert services have proven extremely popular.
Content revenues are a high growth area. With 73 percent penetration of mobile, 40 percent mobile subscribers accessing the mobile internet, and only 5 percent actually using
the mobile internet (adoption rate), Brazil represents both the largest market in the region
for mobile services as well as the largest upside potential.48 Mexico’s mobile market grew
at a rate of approximately 15 percent per annum, reaching more than 70 percent penetration by close of 2008. And, at early 2009 Telmex’s sister company, América Móvil (Telcel), still
accounted for around 72 percent of the mobile market. Deployment of 3G service in both
markets translates to richer and more interactive mobile content experiences and advertising campaigns.
MOBILE PHONE PENETRATION IN MEXICO, 2003-2008
(% OF POPULATION)
2003
29.1%
2004
2005
2006
2007
36.3%
45.1%
52.6%
62.6%
2008
70.3%
Comisión Federal de Telecomunicaciones (COFETEL) with company reports,
“Telefonía Móvil”, March 19, 2009
Gadgets and devices
As noted previously, Nokia commands roughly 40 percent of the global smartphone market, but saw a precipitous drop in its Latin American operations in Q1 2009 compared to
the same quarter a year ago.49 The variety of Nokia’s smartphone portfolio provides a major
strategic advantage, including a wide variety of high-end, mid-tier, and basic models.
However, Mexico City-based América Móvil, the largest mobile operator in Latin America,
started selling the iPhone last year and quickly amassed backlogs of consumers. The lower
subsidized price of the 3G iPhone will continue to extend the phone’s reach throughout the
29
BRAZIL & MEXICO
region. Apple may be able to leapfrog key competitors like Nokia and RIM to take a marketleading position for Latin American smartphone sales.
Cross-platform
Brazil’s growth of online advertising has the potential to be a major catalyst for cross-platform content consumption. Although 3G services are still early, Brazilians are already aware
of cross-platform content. An April 2008 study by Accenture demonstrates that Brazilians
are divided in their demand to watch television on their mobile devices (59%) versus their
PCs (51%).50 Fiat, an active mobile marketer, launched a campaign last year with display banners on a local carrier and showing video on the mobile Web site.
Federico Pisani Massamormile, CEO of Hanzo and chairman for the Latin American region
of the Mobile Marketing Association, sees participatory TV contributing to future mobile
data revenues.5 1 Mobext believe that this trend bodes well for publishers (and their marketing partners) that are developing content for key audiences including teens, young adults
and mobile professionals.
Search
Two mobile operators dominate the playing field in Latin America, Telefónica and America
Movil. In 2007, Yahoo! announced availability of its oneSearch mobile search product for
Argentina, Brazil, and Mexico and distribution deals setting oneSearch as the default search
engine for both companies. Not to be completely excluded, a few months later, Microsoft
announced an alliance with Telefónica to distribute Windows Live Services (Hotmail, Messenger, and Spaces, but minus Search) on all Telefónica handsets, expanding on availability
that already existed in Argentina and Chile.
Meanwhile, Google’s mobile strategy has been centered on its own Android platform rather
than distribution deals. Google is betting on consumer mindshare and reputation for people
to use Google with their mobile devices. This has been a successful strategy for Google so
far, as demonstrated by the market share for browser-based searches in Europe and the US.
The more the pendulum swings in the market toward full-featured smartphones, the stronger
an effect Google has on the market. On the other hand, the more people that use handsets
with only basic email and Web access, the more influence mobile operators and handset
manufacturers influence the regional mobile search landscape.
Social media
In addition to US-centric social networks MySpace and Facebook looking to penetrate the
Latin American market, the two biggest social networks are hi5 and Orkut in Brazil. Hi5
launched hi5 mobile in August 2008 and is optimized to run on a variety of phones, including but not limited to, the iPhone, RIM’s BlackBerry, Nokia, Motorola, Samsung, LG, and
Sony Ericcson handsets. The mobile version of the Orkut Web site has been out for a year
30
BRAZIL & MEXICO
and the Orkut Mobile App has recently been released. Like Facebook’s feature of uploading
mobile photos directly to profiles, Orkut also allows users to directly upload mobile photos
to their Orkut profiles.
AirG is a social network player for “on-deck” users as part
of a white label service. Its mobile social network service
covers 19 million mobile users through Telefonica’s Movistar brand in Ecuador, Peru and Venezuela. Custom branded as Conexion Latina, the service allows users to communicate to peers with features like photo profiles, instant
messaging, photo and video sharing, blogging and user
searching. AirG reveals some characteristics of its user
base: a majority of its users spend more than one hour a
day in the community; nearly 60 percent don’t own a PC;
six in ten have at least a high-school education; and the
five most popular handsets used to access AirG retail for
less than $100 with a service contract.
Thanks to a bright outlook for social network growth in
Latin America, mobile communities will be one of the primary drivers of future mobile usage.
View Facebook profiles
on your mobile
31
Coming to a 3rd Screen Near You!
5
The iPhone Phenomenon
& the Touchscreen Revolution
Arguably, no other handset has jump-started mobile marketing globally as much as the
Apple iPhone. Along with the iPhone, a rash of touchscreen mobile devices are on the
market, including but not limited to, the iPod Touch, BlackBerry Storm, G1 Android, HTC
handsets, Samsung’s Star and Preston, and the upcoming Nokia N97 and Palm Pre. With
the current pace of innovation in handsets, sales of smartphones worldwide are set to dramatically increase.
SMARTPHONE SALES WORLDWIDE, 2009 & 2013
(% OF TOTAL MOBILE PHONE SALES)
2009
14%
2013
38%
Informa Telecoms & Media, “Mobile Operating Systems: The impact of open source and
importance of user experience” as cited in press release, March 20, 2009
“Even in this challenging economy, consumers are migrating
toward Web-capable handsets and their supporting data plans
to access more information and entertainment on the go”.
Ross Rubin, director of industry analysis, The NPD Group, in a press release, May 4, 2009
Source: eMarketer, June 2009
Apps (or widgets) on these handsets have challenged the notion that a browser is best for
users to interact online. Like the peripherals ecosystem for iPods, developers are incredibly
busy creating apps for the growing iPhone consumer base (35,000 applications and counting). Apple’s App Store, having recently celebrated its one billionth download from iPhone
and iPod Touch users, has sparked comparable stores from competitors (Android Market,
BlackBerry App World, Nokia’s upcoming Ovi Store, Microsoft’s upcoming Windows Marketplace for Mobile).
32
5. Coming to a 3rd Screen Near You!
NUMBER OF MOBILE APPLICATIONS DOWNLOADED BY US SMARTPHONE OWNERS,
BY MANUFACTURER, MARCH-APRIL 2009 (% OF RESPONDENTS)
APPLE
n=104
RIM
n=237
PALM
n=56
MOTOROLA
n=84
TOTAL
n=830
0
1-5
6-10
11-15
16-20
2%
15%
22%
15%
18%
32%
46%
15%
4%
1%
23%
50%
18%
5%
2%
36%
37%
13%
4%
4%
27%
44%
14%
5%
4%
21-30
31+
10%
17%
0%
1%
2%
0%
0%
7%
2%
4%
NOTE: numbers may not add up to 100% due to rounding. Compete, Inc. provided yo eMarketer, May 2009
iPhone leading the field in Apps – total downloads and range of App categories – largely based on the novelty of its Touchscreen functionality and
its lead in working with App developers for iPhones...
LEADING MOBILE APPLICATION CATEGORIES DOWNLOADED BY US SMARTPHONE OWNERS,
BY MANUFACTURER, Q1 2009 (% OF RESPONDENTS IN EACH GROUP)
iPHONE
RIM
PALM
MOTOROLA
ALL OWNERS
Games
Music
Entertainment
79%
55%
78%
26%
12%
19%
44%
20%
16%
33%
27%
24%
37%
28%
26%
Weather
Navigation
57%
33%
18%
22%
19%
9%
24%
27%
24%
21%
News
Social networking
43%
35%
16%
21%
20%
9%
18%
11%
18%
16%
Utilities
Business
Travel
42%
25%
29%
10%
11%
11%
15%
5%
2%
18%
16%
10%
16%
13%
12%
Finance
Productivity
32%
27%
11%
6%
5%
15%
17%
14%
11%
11%
Sports
Education
Photography
Books
23%
23%
20%
23%
13%
6%
5%
3%
7%
9%
5%
11%
10%
12%
10%
5%
11%
9%
9%
8%
Healthcare and fitness
19%
3%
13%
8%
8%
Lifestyle
29%
3%
2%
10%
8%
Reference
Other
28%
2%
4%
4%
5%
5%
11%
4%
8%
4%
Compete, Inc., “Smartphone Intelligence Report” as cited by MediaPost, May 5, 2009
33
The iPhone’s Safari browser is able to render a Web site as-is. Therefore, it may be tempting to think that the mobile Internet is now simply an extension of the fixed-line Internet.
However, a touchscreen interface still requires design and content differences for a user “on
the go.”
As a result, when building out a mobile presence, marketers have to keep in mind these
implications for the mobile Internet:
•Different menu sizes: due to the limited display, most menus take up most, if not all, of
the visible area. Menus have to be concise.
•Direct linking: tailoring to the “on the go” mentality is key. It is imperative to minimize
the number of levels a consumer has to drill down. When producing content for mobile users, provide direct links that enable users to quickly and easily retrieve nuggets
of information.
•No rollover/mouseover effects: the main gesture for touchscreen handsets is swiping
for navigation. Whereas a hovering pointer exists with a laptop or desktop computer, a
touchscreen device does not have an equivalent pointer. Marketers and content producers accustomed to menus and panels expanding with a mouseover action need to adjust
and provide an alternative compelling user experience.
•Limited scrolling: another best practice is to minimize scrolling to a single direction and
also to limit the amount of scrolling necessary.
•Utility of apps/widgets: there is a finite amount of room on handsets. That said, users will
make room for apps that provide the most benefit, whether that benefit is productivity,
savings, income, or entertainment. Avoid creating an app/widget without a clear benefit or
else it will eventually be part of the apps “graveyard” (with adverse brand image effects).
34
Mobile video/TV
Outside Asia, mobile video/TV is a medium for much of the world that is far from mainstream. With some exceptions (including the examples we have cited as well as operators
like 3 Italia and Swisscom), one of the obstacles is investment, a chicken-and-egg situation.
Marketers believe broadcasters should invest in the medium but many are reluctant to do so
without accompanying advertising revenue. Therefore, the primary income stream for video
service providers and content owners is subscription revenue, which leads to the second
historic challenge with mobile video/TV-network infrastructure and handset development in
each region capable of supporting a video-consuming mobile audience.
TYPES OF MOBILE APPLICATIONS DOWNLOADED BY US MOBILE PHONE
USERS*, DECEMBER 2008 - FEBRUARY 2009 (% OF RESPONDENTS)
61.6%
GAMES
53%
LOCAL DIRECTORY APPLICATIONS
50.5%
MUSIC APPLICATIONS
40.1%
CHAT/INSTANT MESSAGING
31.6%
10.3%
9.1%
1.5%
SOCIAL NETWORKING APPLICATIONS
VIDEO PLAYER APPLICATIONS
NONE OF THESE
NOT SURE
NOTE: n=497, * who have downloaded mobile applications
Skype survey conducted by Zogby International, provided to eMarketer, March 17, 2009
Video/TV applications will take some time to reach critical
mass, but will surely gain popularity in years to come.
As mentioned previously, the iPhone 3G has ignited all kinds of consumption, including
mobile video. US mobile video operator MobiTV is slowly building, having reached 6 million subscribers.52 A key question is how content owners choose to apply the lesson learned
from the Internet content explosion – paid subscriptions for premium content giving way to
free content distribution. Given bandwidth costs and a limited viewing audience, ad-supported models are unlikely to be sustainable in the near term.
35
What’s more, because mobile video requires more bandwidth, a key consideration of its
growth depends on the mobile carriers. Can their networks support more users consuming
mobile video? A prime example of the carriers’ weariness of mobile video is that fact that
ATT recently prohibited the use of Slingbox mobile’s iPhone app on its 3G network; it can
only be used via wifi. These network constraints may be addressed as carriers introduce
next generation data transmission technology such as WiMax and LTE.
How much of an impact will YouTube have? Consider the recent deal forged with sports
cable network ESPN for an ESPN video player on YouTube. Chances are, YouTube will continue to be a tremendous force on the digital video landscape for the foreseeable future.
The launch of a Hulu iPhone app could also prove to be a game-changer for mobile video,
both in the US and overseas, depending on the success of Hulu’s international efforts.
Source: http://www.flotv.com
From an advertising standpoint, marketers have already proven that they can successfully
attract audiences to watch mobile videos about products or services they find relevant. Yet
the hurdles of scale and a fragmented marketplace mean that mobile video/TV advertising
has a long way to go before being regularly considered alongside other media vehicles.
While these are the same hurdles podcasting faces as an advertising medium, mobile video/TV has a much brighter outlook in the longer term. While podcasting has a small head
and a very long tail, mobile video/TV will have a much larger head of content, thanks to
established producers (television networks) porting their professional content across platforms. Again, Mobext can help you navigate this area to optimize your marketing spend.
36
6
Mobile in the Mix:
Opportunities for Marketers
From text messaging to display advertising and branded content, mobile presents a rich
diversity of tactical opportunities for brands to connect with consumers. In this section, we
share a few ways that Mobext recommends communicating with audiences.
Mobext, the specialist unit for mobile strategies & applications at Havas Digital are specifically focused on the burgeoning mobile space across all phases of consumer communication – Mobile can be a branded messaging, acquisition, or focused on customer loyalty
– as it is a very flexible platform. Mobext explores the many opportunities for advertisers
to communicate with consumers. In this section we will take a look at some uses of mobile
and follow them up with Case Studies on how Mobext has leveraged the uses in our work
with clients.
Mobext sees the Mobile Landscape as comprising 4 key pillars:
MESSAGING
PROXIMITY
MOBILE WEB
CONTENT
•Messaging: The sending and receiving of messages, images and digital products (ie,
SMS, Photos, QR codes, ringtones, etc).
•Proximity - Location Based: Takes the ability to communicate in wireless technologies
and combines with other location based marketing techniques to allow the delivery of
messages when a consumer is in range of a mobile messaging platform (ie, out of home
units, stores, etc).
•Mobile Web: The ‘web’ as we know it, translated to the mobile space via WAP (Wireless
Application Protocol). Essentially WAP allows for brands to extend their internet presence
to the mobile space – with more limited, but more focused functionality of popular internet web-site offerings. Look for new technologies that make rendering internet sites to
the mobile environment much easier.
•Branded Content: As the mobile web ramps in interest and traffic, so will the need for
content. However, at this stage there is not an overabundance of WAP content and applications to satisfy all campaign needs. The Mobext Teams can help design and launch
spaces on the mobile web that tie your marketing efforts together. We provide consultation and development of unique branded campaign elements.
37
6. Mobile in the Mix
MESSAGING - SMS/MMS
Messaging - SMS/MMS
Response Driven Campaigns
A key factor in driving mobile marketing was on-package promotions for the packaged
goods sector. These initiatives have shown high conversion rates. Popular mechanisms include text-to-win sweepstakes. The enormous success of text voting for TV shows is another
example in which the integration of two screens in an interactive manner has delivered significant rewards for brands. Responses or visits through the mobile platform, like scanning
a QRcode, or 2Dbarcode, can be the “click-throughs” of the non-online world, providing
a feedback mechanism on campaign success. Mobext recommends mobile messaging integration on traditional media wherever possible. This allows for the potential activation of
the medium via direct response. The key component to consider with mobile integration of
traditional media is to have a strong call-to-action.
Key benefits for advertisers
• Opportunity for immediate response.
• Incentives – Coupons, QR Codes, that put
mobile action into consumer’s hands.
• Opportunity for database generation.
• Broad audience adoption of SMS.
• Cross-media integration.
• Effective user feedback channel for non-interactive
media (e.g. TV, radio, print, outdoor).
CASE STUDIES including the use of SMS/MMS
Nike:
The Human Race
Citroën C4 Pallas:
Gets people to test
drive Citroën cars
38
MESSAGING - SMS/MMS
Nike: The Human Race
CHALLENGE
Over time Nike has positioned its 10K race as one of the most important events for runners
throughout the different cities around the world. In 2008, the race was named The Human
Race 10K and was scheduled to take place at the same exact day: August 31st in every city.
The challenges were the following:
• Communicate The Human Race 10K 2008 to every runner and fan of the race.
• Motivate runners registration.
• Generate competitiveness between participants and cities, using “challenges”
(personal running goals) as the communication context.
STRATEGY
• We developed and implemented complementary mobile marketing activities, which
were very well integrated with the rest of the media mix.
• Interaction with screens via SMS: people sent their challenges and support messages to other runners through SMS. These appeared at the city interactive screens,
walls and buses used during the campaign.
• Place and time running of the race via SMS: users subscribed via SMS to get their
score once they reached the final line. The platform was connected to the reader of
the RFID runners chip, as soon as they crossed the goal, an order was shot, and the
runners automatically got their time via SMS.
• Training Java Application: Mobext designed an application for the runners that
included a training calendar, supported foundations, race map and link to the training program. The link to download this application was included in the SMS, as a
response when interacting with the screens, walls and buses around the city.
RESULTs
• 25,000 runners in Mexico DF.
• 5,000 runners in Monterrey.
• Over 7,000 virtual runners.
39
MESSAGING - SMS/MMS
Citroën C4 Pallas: gets people
to test drive Citroën cars
CHALLENGE
To generate a customer database for Citroën, raise interest in the C4 Pallas car, and encourage prospects to book test drive appointments.
STRATEGY
The idea was to generate leads (sign-ups) to receive a nearby local dealer contact via text
message. After the launch of a competing product, the Toyota Corolla, the challenge was to
retain Citroën sales volume and market share. The concept involved using mobile as a new
communication platform that could extend and enhance the messaging capabilities of the
existing media mix, thereby creating greater intimacy with the consumer.
Mobext Brazil, together with Media Contacts Brazil, developed a campaign that combined
banner registration and SMS broadcast. Prospects opted in to the program by submitting
personal data (name, zip, mobile number) via the banner. Respondents then received a text
message containing a click-to-call number for booking their test drive.
<<Test-Drive
Citröen C4
Pallas; Adam,
va a Via France
Av. Com.
Gustavo Paiva,
4529. Cruz das
Almas - Macelo
ou Ligue
0800118088>>
RESULTs
• The results of the campaign exceeded expectations.
• In 28 days, 20,000 registrations were completed.
• There were more than 200,000 clicks on the creative ads.
• The campaign generated positive online buzz as an innovative mobile
breakthrough in the Brazilian market – and one with great creative.
• The campaign generated highly qualified test drive bookings through
click-to-call responses and awareness of the C4 Pallas hot site.
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PROXIMITY - LOCATION BASED
PROXIMITY
Location-based marketing strategies
Proximity marketing with mobile devices has been around for some time. Through Bluetooth, many marketers have enticed consumers to interact with outdoor advertising to receive information, download content, or even affect the signage itself (for example, configuring shoes on a New York’s Times Square electronic billboard).
Location-based services (LBS), using built-in GPS or mobile phone tower triangulation, exploit a user’s physical location to continue to push the leading edge of marketing. This is especially interesting for retailers and consumer goods companies. LBS are a vital ingredient
to unlocking the enormous potential of proximity marketing, letting advertisers offer timely
promotions for proximate products and services. The Latitude service in Google Maps is
half a step away from commercial integration. The key is for marketers to always obtain
consumer permission.
This is related to a very hot topic, privacy. Data attributed to an
individual mobile device through campaigns, especially when tied
to location-based information, has tremendous potential for targeting, insights, optimization. However, marketers have to remain
especially vigilant about consumer privacy protection due to the
intimate nature of mobile handsets. One misstep in this area may
cause serious damage to a brand’s reputation.
Key benefits and opportunities for advertisers
• Ability to deliver geographically relevant messages.
• Opportunities to drive retail traffic.
•Ability to download information, video/sound, brochures, etc.
• Potential for immediate sales impact.
CASE STUDIES use of Proximity techniques
CAJA MADRID:
Relax and Enjoy
VOLKSWAGEN:
A Bluetooth Engagement
to Launch a new Model
41
CAJA MADRID: RELAX AND ENJOY
Acquiring customers with an SMS
supported cross-platform campaign
CHALLENGE
To drive acquisition of savings accounts for Caja Madrid in Spain.
STRATEGY
Caja Madrid launched a general advertising campaign called “relax and enjoy” which encouraged target audiences to switch their saving account from their existing bank to Caja
Madrid. Caja Madrid created campaign awareness using TV, outdoor, Web and direct marketing. Mobile was used as a key response channel for the campaign, with barcode response
mechanics on all press, posters and outdoor media. In addition, Bluetooth was used to
beam ads from 100 interactive displays throughout the country. Finally, a mobile Internet advertising campaign was used to drive traffic to a WAP site to further drive sign-ups.
RESULTs
• As a result of the campaign, 60,000 new customers and €2.5 million in new savings
deposits were generated in the first month of the activity.
• There were 100,000 visits to the mobile portal; the 2Dbarcode generated 7,559
mobile number captures; the Bluetooth tactic generated 10,657 downloads. There
were 3.5 million mobile banner impressions that generated a click-through rate of
2.4 percent.
42
Volkswagen:
A Bluetooth Engagement
to Launch a new Model
CHALLENGE
To launch the new VW EOS to a very targeted audience: executives.
STRATEGY
This was a BlueTooth campaign which met with astonishing success at a time when mobile
marketing is often discussed and only rarely effective. The difference here was the targeting.
We embedded 20 BlueTooth transmitters in poster sites at Madrid Airport, where our executive target audience unusually finds itself with time on its hands. We analysed passenger
flow to find the perfect position for the interactive ads and located them by boarding gates,
in the commercial zone and at baggage claim. Those carrying BlueTooth phones were offered the choice of three different pieces of content focusing on the new VW Eos.
We offered content which pushed the boundaries of the form, in the right place and at the
right time, we set a new benchmark for cut-through. We created three downloadable creative executions: those executives with fast connections and high-end phones were able to
access a full custom-made 30-second spot ad for the Eos, while others could view an interactive tour of the new car or download a digital brochure.
RESULTs
• In 2 weeks our technology detected 37,327 BlueTooth-enabled mobile phones around
the airport and delivered a staggering 21,335 downloads – a conversion rate of 57%.
• Some locations proved particularly effective: at gate 47, 73% of BlueTooth users request
ed a download. Overall, 50 prospects interacted with VW every hour.
43
MOBILE WEB
MOBILE WEB
Display advertising and mobile sites
A high-growth area of mobile marketing is display advertising, including text links, banners
on operator portals and pre/post/mid-roll video ads (also called embedded ads). Success
depends on creative units tailor-made for the mobile environment, as opposed to re-purposed traditional or web campaigns that fail to deliver an appropriate message for an “on
the go” consumer.
More importantly, display advertising functions to drive traffic to a compelling mobile site.
Mobext has expertise developing well-tailored sites that have proven very usefulness to
end-users.
• Breakthrough awareness potential in a novel environment.
• Brand association through exclusive sponsorship.
•Drive consumers to internet destinations or retail.
• Opportunity for data (lead) capture.
• Ability to reach fragmented audiences that don’t
regularly consume print or TV.
• Increased brand engagement potential through
useful apps or casual games.
• M-commerce conversion opportunities for products
and services.
CASE STUDIES use of MOBILE WEB
WORTEN:
Who will be the
next Music Star?
Yamaha FZ16:
For the Adventurous
Biker
FANTA:
Sparkling mobile
campaign
44
MOBILE WEB
WORTEN: Rock Rendezvous
Who will be the next Music Star?
CHALLENGE
Worten, the leading retail chain in Portugal for entertainment, created a “Be the Next Big
Garage Band Challenge” entitled Rock Rendez Worten. The goal was to raise awareness
of the brand, its association with Music, the promotion, and its stores.
STRATEGY
Mobext was challenged to deliver an exciting “MTV Style” mobile site where unknown
bands could register, upload their profiles, music and videos. Visitors could interact with hot
features like voting, see the bands profile, hear their music, stream the videos and adding
exclusive Mobile features, like free music downloads, mobile video streaming and winning
exclusive prizes.
A mobile media campaign was implemented in partnership with Vodafone Live! mobile portal, where banners where placed in the music and mobile content sections of the portal. Also
a SMS keyword interaction was created for easy access to the Mobile site, and everything
with the final purpose of raising brand awareness and generating traffic to the mobile site.
RESULTs
• over 10.000 visitors/weekly.
• over 1.000 music downloads / daily.
• over than 200 videos streams a day.
• 1.75% global CTR.
• over 10% CTR from the music & mobile content areas.
45
MOBILE WEB
Yamaha FZ16:
For the Adventurous Biker
CHALLENGE
• Connect with a young 18-35 target in a innovative and cool way to build excitement
around the launch of the FZ16 Motor Bike. Position as a bike for “Adventurous Bikers”.
• Build brand recall of the new model.
• Engage consumers with bike features to drive higher brand emotion.
• Communicate features of the bike through credible WOM.
STRATEGY
Knowing that this group of heavily male 18-35 year old bike enthusiast viewed themselves
as cutting edge and cool – we used mobile to communicate with them as it provided a cool
environment for the campaign and also provided ease for sharing information for this “on
the go” target.
• Targeted only smart mobile phones that had the capacity to download & view vide.
• Placement on WAP sites in lifestyle & entertainment; sports & news; portals.
• Hosted FZ16 WAP site with Call to Action functions:
- Downloadable Brochure with Bike Specifications.
- Downloadable wallpaper.
- Videos Detailing Bike features.
- Testimonials of consumers on performance of the bike & Video ‘Share with a Friend’.
- Advanced queries to Dealers by SMS along with Dealer locator & ‘Refer a Friend’.
RESULTs
• 12% of the responders viewed
testimonials by consumers
(owners & test riders).
• 7% responded to the various
call to actions.
• 30% downloaded flashy
wallpapers.
• 9% registered for test ride.
46
MOBILE WEB
FANTA:
SPARKLING MOBILE CAMPAIGN
CHALLENGE
Fanta, a sparkling orange drink, wanted to connect with their core target audience and
position itself as an innovative and cool brand. Consumers in this young demographic are
highly engaged in mobile content, but usually have to pay for what they want.
STRATEGY
Fanta’s core young audience have limited means, so the idea became to give them what they
cherish most – free! The Mobext Team developed a game for mobile devices, which could
be downloaded and installed on users’ mobile phones as well as ringtones & wallpaper, and
viral text messaging. The Fanta campaign ran on web music, sports, entertainment portals.
RESULTs
QuickTime™ and a
decompressor
• Despite this campaign has not been closed yet, after a month of activity it has
received over 12,000 downloads.
are needed to see this picture.
47
BRANDED CONTENT
BRANDED CONTENT
CONTENT INTEGRATION
Another growth area for mobile is branded content, including WAP site development, applications/widgets, casual games, short-form video, wallpapers, and ringtones. The content
area is critical to providing consumers with a worthwhile experience – so advertisers and
agencies must sometime help to create the content to deliver the brand context in the
space. Utility for consumers and good production quality are value drivers. Content and
tools that engage and are uniquely designed for the medium deliver the best return for
advertisers. There is limited WAP site content to leverage, therefore it is important to have
partners who can help your ideas live within the mobile web spaces. Mobext has experience
creating many successful mobile applications for clients across various industries.
• Added value to integrated campaigns, from information to entertainment.
• Creation of content that leverages brand equities to
engage in the mobile environment.
• Opportunity for data (lead) capture.
• Ability to reach fragmented audiences that don’t regularly consume print or TV.
• Viral aspects delivered through easy-to-share content
via text, Bluetooth or infrared.
• Increased brand engagement potential through useful
apps or casual games.
• Increased brand engagement or exposure potential.
through video.
CASE STUDIES use of BRANDED CONTENT
HEROES on Sci-Fi:
Connecting with “Friends”
for Program Loyalty
EL CORTE INGLÉSi:
Reaches its core target with
emidiotucci.mobi
48
BRANDED CONTENT
HEROES on Sci-Fi Network:
Connecting with “Friends”
for Program Loyalty
CHALLENGE
Make the promotion of the season two of Heroes unique and captivating for the core audience of young urban technophiles. Also create a device to maintain the loyalty – program
to program.
STRATEGY
Create a content rich virtual environment for the show in the mobile space so fans and the
characters can have a continuous dialogue. We developed a complete virtual world of Heroes – with main character descriptions, episode guides, games, and contests. Graphically
intensive mobile sites and equally graphical banners designed especially for smartphones
& iPhones would make the the idea could come to life. Fan registration at WAP sites was
executed so that fans could receive messages from their favorite Heroes character discussing the past week’s episode and deliver a teaser message for the upcoming episodes – all
to drive the desired program loyalty.
Registration included updates and alerts from their favorite character through an exclusive
solution personalizing the SMS from the Heroes character to the sender. Special attention
was given to the copy of the SMS notifications in order to both keep the Heroes personalities true.
RESULTs
• 23,000 visits from the mobile media plan in 1 month.
• Achieving the goal of using an integrated mobile campaign for two objectives: Branding and Loyalty, not to mention the creation of on-going marketing innovation to drive
viewership and deliver real added value to the customer experience.
QuickTime™ and a
decompressor
are needed to see this picture.
49
BRANDED CONTENT
El Corte Inglés:
reaches its core target
with Emidiotucci.mobi
CHALLENGE
To renew and rejuvenate the image of El Corte Inglés, a traditional fashion company that
has long used only conventional media in communication strategies. The company felt that
the mobile platform was an ideal communication channel for its core target of upscale men.
STRATEGY
In preparation for the 2008 spring and summer men’s
fashion season, Mobext Spain designed and programmed a microsite, Emidiotucci.mobi, and supported it with a mobile Internet advertising campaign to
drive traffic to the site.
RESULTs
• The site was a tremendous success.
• Not only were more than 23,000 pages viewed but
there were 1,500 downloads in the first month.
• Even more impressively, the well-designed site was
awarded the “Best Mobile Site in the World” by the
dotMobi Consortium. The Emidiotucci.mobi site
received countless press mentions (in publications
ranging from general interest news to fashion news
to business news), and delivered on the promise of
revitalizing the image of El Corte Inglés.
(left) Campaign:
www.emidiotucci.mobi
(2009) for iPhone
(right) Campaign:
www.yaesprimavera.mobi
(2009) women fashion
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CONCLUSION: Putting Mobile
in the Mix for your Brands
7
Mobile has been a ‘promising’ landscape for the last few years; we hope that in the previous section we have given you some great examples of how mobile can impact your brand
strategies today. You should at least be encouraged by the increasing use of mobile tactics making their way into overall consumer communication strategies. As more and more
people adopt smarter phone capabilities, social computing goes mobile, and technologies
provide for richer mobile experiences, the promise becomes reality. Also, consider that
there are 3-5 times as many mobile devices versus television sets or desktops/laptops in
many geographies today – which means the potential for connecting with consumers is
vast. One more thought; in underdeveloped countries the mobile device may, in fact, be
the de-facto mechanism for computing as computers are relatively expensive and some of
these countries will never invest in laying Ethernet lines. Clearly, the future for mobile cannot
be overlooked.
That said, the question is how to participate in mobile today – before it reaches a more
mainstream communications channel status? Based on the work of our Mobext units around
the globe, we offer the following thoughts.
1. Determine how mobile strategies
fit into current marketing goals
As you have seen within the work done by Mobext, there is a wide range of ways to participate in the mobile advertising landscape. Clearly, there are some young and tech savvy
targets for whom WAP advertising make sense.
Participation/sponsorships of voting & rating schemes may be a good way to test the waters
in the mobile WAP environment. However, if WAP does not seem to make sense for your
brand, try location-based tactics or integrating SMS/MMS techniques for delivering more
detailed information about your product or services to customers who raise their hand.
Pulling the lens back, does the mobile internet help you maintain reach of your targets and
therefore awareness goals? Do SMS/MMS tactics and QR Codes help you manage consumer preference better by delivering information & incentives to qualified prospects? Do
widgets/apps give you stronger WOM impact as consumers share what they like?
Think critically about your goals and how mobile extends, engages, and energizes your
marketing efforts. Mobext offers the following framework for how to think about implementing mobile strategies in your media and marketing plans.
51
7. Conclusion
Mapping Mobile’s Role to Communications Objectives
• Broaden your
Message
• Attract distinct
segments
of your audience
• Educate on product
benefits
• Distribute Value
based Brand Assets
• Drive Relationship/CRM
• Empower Social/
WOM influence
TARGET IMPACT
ENERGIZE
ENGAGE
REPEAT
EXTEND
SALE
PREFERENCE
CONSIDERATION
AWARENESS
“Maximize Potential”
“Reason to believe”
“Buzz from proof”
a. Extend: Increase the reach and frequency of your message(s) or use mobile to tactically
message to segments of your target audience.
b. Engage: Deploy the various mobile tactics (SMS, QR codes, etc) to deliver product or
service detail that is value based and increases consideration and preference.
c. Energize: Give “activated” consumers from your campaigns the opportunity to share
with others or give them an easy mechanism for re-activation.
While this framework will not cover all potential opportunities with consumers, it provides
a worthwhile manner in which to think about how to link mobile to the stage of consumer
readiness for interaction and impact in the mobile space. Creative/executional variables can
and will impact your use of the mobile strategies.
52
7. Conclusion
2. M-commerce tomorrow needs
compelling functionality today
As indicated earlier in this Mobext Insight, we are witnessing m-commerce trends in Asia,
that are on par with e-commerce – and signs that Europe is getting more comfortable with
m-commerce transactions. Obviously, this trend will grow across the globe as consumers
carry more and more multi-tasking mobile devices with them. Retailers and e-commerce
players should be focusing on clear and simple m-commerce functionality to pave the way
for both revenue reasons and faster consumer acceptance. Additionally, widgets and apps
provide another route for engaging consumers and driving m-commerce activity – as social
nets go mobile, the opportunities for consumer based sharing grows.
3. It’s about Utility – not the App!
We have all seen & applauded the impact that the iPhone phenomenon has had in the
growth of the mobile marketplace – but one thing is clear: As more smartphones are in the
hands of consumers, consumers will want to multi-task and manage their busy lives “on the
go” from their mobile devices. For this reason, useful apps will surely proliferate with time.
A recent report by eMarketer shows that while iPhone consumers support a number apps on
their devices, most other brands of smartphones are topping out at around 5 apps. As other
smartphone makers catch up with Apple, the number of apps available for different devices
will rise. But bear in mind that as the novelty of apps begin to wane, consumer will gravitate
to time-saving, task simplifying apps that offer them true utility and value.
4. Help your local Mobile Associations
push standards in measurement
Likely to be the MMA, but there may be other groups if there is not an MMA in your country/
region. The MMA has been quite active in many regions of the world and are working hard
to help set standards and work through measurement issues so that we can all have a clearer
sense of how mobile adds value to our brand and communications strategies. Ultimately,
mobile KPI’s must be integrated into other Marketing and Operations KPI’s to understand
success benchmarks and ROI perspectives. And as we move toward rich mobile web experiences, we will face the challenge of integrating data from at least two “web” streams to
understand the effectiveness of marketing spend.
In summary, there are several ways to integrate mobile strategies into your current campaigns – whether a quite specific tactic or as part of a broader integrated communications
strategy. Elements of the four pillars can be mixed and layered to create exciting and compelling marketing programs that command attention and raise brand image and profiles.
The key is to get started and/or extend your efforts to take advantage of the growing audience and the unique capabilities of mobile. If you are not sure in which direction to begin….
Mobext can help!
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GLOSSARY
8
2G phones: phones utilizing digital voice encoding, e.g., CDMA and GSM.
2.5G phones: smartphones that are able to handle WAP, email, Java games, applications
and may have a digital camera function.
3G phones: phones that simultaneously support both voice and data phone features, as
well as higher data transfer rates at lower incremental cost than 2G.
4G phones: phones that support higher data-transfer rates at lower cost than 3G.
ARPU: Average Revenue per User.
Content producers: creators of original or repurposed content in partnership, or through
license with a content provider.
i-mode: mobile internet service pioneered in Japan that supports email, internet browsing,
games, video and m-commerce.
Internet TV: a web-based open platform where a content provider is able to provide video
directly to a consumer.
Mobile network operators: companies that operate the mobile network and sell voice/
data products and services to end-users.
Mobile service providers: operators of mobile services that are used by end-users.
Mobile virtual network operator: companies that lease or buy services from a network
operator to offer a branded service bundle.
QR codes: a 2D bar code that provides physical-world hyperlinks to the digital world. QR
code users need a specially fitted camera phone with reader software to scan and translate
QR codes.
SMS: short message service, also called ‘text messaging’ or txt, common to 2G services.
Smartphones: phones with an operating system, applications, and text entry for more than
12 characters.
UGC: user-generated content, aka consumer-generated content. This includes photos, video clips, text blogs, playlists and podcasts.
WAP: wireless access protocol, gives portable devices secure access to email or (primarily)
text-based Web pages.
54
ABOUT US AND CONTACT DETAILS
9
About Mobext
Mobext is the mobile marketing network of Havas Digital, the umbrella holding company
that manages all Havas Media’s interactive companies. Mobext was launched in 2007 as the
first agency and strategic consulting company to offer specialized services within the international mobile marketing arena. The network’s main mobile marketing services include;
messaging applications, mobile internet consulting and development; WAP advertising;
mobile video, services and applications amongst others. Mobext currently operates in the
US, Spain, France, UK, Portugal, Netherlands, Argentina, Mexico, Chile & Brazil. Mobext
works with a large list of blue chip clients globally such as Barclays, Bimbo, Coty, Grupo
Prisa, Nike, Pikolin, Planeta d’Agostini, Spanair, Telcel, Toyota, and Warner to name a few.
Please see www.mobext.com for more information.
CONTACT INFORMATION:
ARGENTINA
Netherlands
OFFICE Phone +54 11 5777 7400
EMAIL german.abaroa@havasdigital.com
OFFICE Phone +31 (0) 20 408 90 00
EMAIL ton.groenestein@nl.mediacontacts.com
Brazil
Portugal
OFFICE Phone +55 11 2889 5681
EMAIL fernanda.magalhaes@mobext.com
OFFICE Phone +351 217 913 300
CHILE
Spain
OFFICE Phone +56 2714 8100
OFFICE Phone +34 91 456 9050
EMAIL gonzalo.parra@havasdigital.com
EMAIL sixto.arias@mobext.mobi
France
USA
OFFICE Phone +33 (0)1 46 93 37 27
OFFICE Phone +1 617 425 4346
EMAIL dimitri.dautel@havasdigital.com
EMAIL phuc.truong@mobext.com
Mexico
UK
OFFICE Phone +52 55 9177 6000
OFFICE Phone +44 (0) 207 393 2583
EMAIL daniel.getzel@havasdigital.com
EMAIL chris.bourke@mobext.mobi
EMAIL paulo.gaudencio@mobext.mobi
55
9. About us and contact details
About Havas Digital
Havas Digital is the umbrella holding company that manages all Havas Media’s interactive
companies: Media Contacts and Lattitud, global interactive media networks; iGlue, new independent interactive media network; Mobext, mobile advertising network; Archibald Ingall
Stretton the new UK based creative shop quickly expanding around the globe; Uncommon,
direct marketing specialist in Spain, One-to-One, specialized CRM solution in Portugal, and
N2, offering digital strategy services in France.
Havas Digital brands provide data-driven marketing solutions across all interactive channels:
digital, direct response, relationship-based media, and design. Havas Digital’s companies
work and complement each other bringing together professional expertise, proven strategic insight, and Artemis®, an advanced proprietary data platform and optimization engine,
which allows the group agencies to maximize impact for the advertiser interactive marketing
investment. This technology platform enables the centralization and analysis of data coming
from all online and offline interactive media, helping clients to reach customers effectively.
Havas Digital’s brands currently operate from 54 offices in 42 different countries across Europe, North America, South America, Asia, Oceania, and Africa serving over 400 clients, including the market leaders in many industries such as Air France, Danone, Expedia, Fidelity,
France Telecom, ING Direct, Nike, Peugeot/Citröen, Repsol, Reckitt Benckiser, Sears, and
Vodafone, amongst others.
Please check www.havasdigital.com for more information.
56
REFERENCES
(1) JupiterResearch. JupiterResearch/ClickZ Social and Marketing Executive Survey, February 2008.
(2) Nokia Corporation. “Nokia Q4 2008 net sales EUR 12.7 billion, non-IFRS EPS EUR 0.26”,
22 January 2009. [http://www.nokia.com/results/Nokia_results2008Q4e.pdf]
(3) Gartner, Inc. “Gartner Says Worldwide Smartphone Sales Reached Its Lowest Growth
Rate With 3.7 Per Cent Increase in Fourth Quarter of 2008”, 11 March 2009.
[http://www.gartner.com/it/page.jsp?id=910112]
(4) Blyk. “Audience Insight”, 9 February 2009. [http://media.blyk.com/audience-insight/]
(5) Blyk. “Why Blyk?”, 26 April 2009. [http://media.blyk.com/why-blyk]
(6) NTT DoCoMo, Inc. “NTT DoCoMo Achieves World’s First 5Gbps Packet
Transmission in 4G Field Experiment”, 9 February 2007.
[http://www.nttdocomo.com/pr/2007/001319.html]
(7) Knight, Will. NewScientist.“4G prototypes reach blistering speeds”, 2 September 2005.
[http://www.newscientist.com/article/dn7943-4g-prototypes-reach-blistering-speeds.html]
(8) Sharma, Chetan. “Global Wireless Data Market: 2008 Update”, April 2009.
(9) Telecommunications Carriers Association. “Number of subscribers by carrier”,
31 December 2008. [http://www.tca.or.jp/english/database/2008/12/index.html]
(10) KPMG International. “Consumers and Convergence II”, 18 October 2007.
(11) Salz, Peggy Anne. mocoNews.net. “Korean Mobile TV Viewers Tune
Into Live Events; Sports & News Top The List”, 20 June 2007. [http://www.moconews.net/
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(12) Cybozu Media and Technology, 2007.
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27 September 2007. [http://www.guardian.co.uk/technology/2007/sep/27/guardianweeklytechnologysection.mobilephones]
(14) Yoshikawa, Masaki. NTT DoCoMo, Inc. “Mobile Wallet Service in Japan
(Osaifu-Keitai)” presentation, 31 October 2008.
[http://www.gbd-e.org/events/2008/summit2008/pdf/Yoshikawa.pdf]
(15) De Waele, Rudy. m-trends.org, “A Day in the Life of a Mobile Phone in Seoul”, 5 October 2008. [http://www.m-trends.org/2008/10/a-day-in-the-life-of-a-mobile-phone-in-seoul.html]
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References
(16) Y-N, Ken. What Japan Thinks, “Accessing URLs in advertisements
from mobile phones”, 7 January 2008. [http://whatjapanthinks.com/2008/01/07/accessingurls-in-advertisements-from-mobile-phones]
(17) JupiterResearch. “European Mobile Forecast (Western Europe)”, July 2008.
(18) comScore M:Metrics. “UK PC & Mobile Internet Usage White Paper”,
December 2008.
(19) IAB UK. May 2009.
(20) JupiterResearch. “European Mobile Forecast”.
(21) comScore M:Metrics. Three-month average ending January 2009; ages 13+.
(22) Bernstein Research. “US Internet – The End of the Beginning”, May 2008.
(23) comScore Mobile. “comScore releases First Data on iPhone Users in the UK”,
26 March 2009. [http://www.comscore.com/press/release.asp?press=2759]
(24) JupiterResearch. “Mobile Media and Content in Europe”, 18 December 2008.
(25) comScore M:Metrics. “comScore M:Metrics Reports Mobile Search Grew
68 Percent in the U.S. and 38 Percent in Western Europe During Past Year,
15 September 2008. [http://www.comscore.com/press/release.asp?press=2469]
(26) comScore Mobile. “comScore releases First Data on iPhone Users in the UK”.
(27) The Nielsen Company, Nielsen Online. “Mobile Media View”, Q4 2008.
(28) The Nielsen Company, Nielsen Online. “Mobile Media View”, Q3 2008.
(29) Mobile Today. “New Sun service merges print with mobile video”,
14 January 2008.
[http://www.mobiletoday.co.uk/New_Sun_service_merges_print_with_mobile_video.html]
(30) comScore M:Metrics. “SMS Advertising for Non-Mobile Products Grows
As Mobile Is Integrated into Marketing Budgets for Consumer Goods and Services”,
31 October 2008. [http://www.comscore.com/press/release.asp?press=2557]
(31) comScore M:Metrics. “Comscore Reports that the U.S. Catches Up with Western Europe in Adoption of 3G Mobile Devices”, 4 September 2008.
[http://www.comscore.com/press/release.asp?press=2434]
(32) The Nielsen Company. “The Global Online Media Landscape”, April 2009.
(33) The Nielsen Company. “The Global Online Media Landscape”.
(34) The Nielsen Company. “Realizing Potential: Overcoming Barriers
to the U.S. Mobile Advertising Market”, September 2008.
(35) The Nielsen Company. “Tuned into the Phone: Mobile Video Use
in the US and Abroad”, January 2009.
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References
(36) Walsh, Mark. MediaPost Online Media Daily,”Growth Curve: RIM Device Surges Past
iPhone”, 5 May 2009.
[http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=105332]
(37) comScore M:Metrics. “MobiLens Report”, November 2008.
(38) Walsh. “Growth Curve: RIM Device Surges Past iPhone”.
(39) The Nielsen Company, Nielsen Online. “9 Million US Mobile Users Have Used Their
Mobile Phone to Pay for Goods or Services”, 12 June 2008.
[http://www.telephia.com/html/press%20releases/M-Commerce.html]
(40) comScore M:Metrics. “comScore M:Metrics Reports Mobile Search Grew
68 Percent in the U.S. and 38 Percent in Western Europe During Past Year”.
(41) comScore Mobile. “Mobile Internet Becoming A Daily Activity For Many”,
16 March 2009. [http://www.comscore.com/press/release.asp?press=2752]
(42) JNJ Mobile, Inc. “MocoSpace Leaps Past the 6 Million Registered User Mark”,
31 March 2009. [http://jnjmobile.com/news-sixmillion.jsp]
(43) The Nielsen Company. “The Short Code Marketing Opportunity”, December 2008.
(44) The Nielsen Company. “The Short Code Marketing Opportunity”.
(45) RCR Wireless. “Latin America: The next big thing or already here?!”, July 2008.
(46) eMarketer. “Mobile BRIC: Extreme Growth Ahead”, June 2008.
(47) Ipsos. “TIC Domicillos e Usuarios 2007”, March 2008.
(48) Ipsos. “TIC Domicillos e Usuarios 2007”.
(49) Business News Americas. “Nokia Latin America sales suffer largest Q1 percentage fall
worldwide”, 16 April 2009.
[http://www.bnamericas.com/news/telecommunications/Nokia_Latin_America_sales_suffer_largest_Q1_percentage_fall_worldwide]
(50) eMarketer. “Mobile BRIC: Extreme Growth Ahead”.
(51) eMarketer. “Mobile Storm Takes Brazil – An Interview with: Federico Pisani Massamormile”, 23 December 2008.
(52) Friedman, Wayne. MediaPost Media Daily News, “MobiTV Surpasses 6 Million Subscribers”, 17 February 2009.
[http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100479]
59
www.mobext.com

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