Mobile IQ
Transcription
Mobile IQ
January 11, 2012 SCOTT GALLOWAY NYU Stern Mobile IQ © L2 2012 L2ThinkTank.com Clinic Mobile nyc January 19, 2012 NYU Stern register now Paris January 24, 2012 Palais Brongniart register now Module 1: Welcome Scott Galloway Founder, L2 Digital Omnivores: Key Insights Into Today’s Connected Consumer Mark Donovan SVP Mobile, comScore, Inc. Mobile is Dead, Long Live Mobile Andy Weissman Partner, Union Square Ventures The Game Changer on the Path to Purchase Jeremy Arnon Strategic Partner Development, Google Q&A Session Module 2: Evolving Strategy for Creative Execution in Mobile Nuri Djavit Partner & CEO, Last Exit HTML5: Going Web vs. Going App Jason Baptiste Cofounder & CEO, OnSwipe Lessons from “The Collection” MZ Goodman & Simone oliver New York Times Influencing Real Life Networks Module 1: Welcome Scott Galloway Founder, L2 The Mobile Landscape in Europe Jeremy Copp VP, Mobile, Europe, comScore, Inc. Evolving Strategy for Creative Execution in Mobile Kent Valentine Engagement Director, Last Exit Retail … Forever Transformed Chuck Goldman Chief Strategy Officer, Apperian, Inc. Case Studies & Best Practices in Prestige Mobile Patrick Sarkissian CEO & Founder, Sarkissian Mason Q&A Session Module 2: The Google Mobile Platform Robbie Douek Head of Mobile Sales & Operations, Google France L2 Mobile Research Maureen Mullen & Colin Gilbert Research & Advisory, L2 Hugo Boss: A Case Study Tanuj Parikh Business Development Manager, GroupMe Markus Aller Teamleader, Online Media, Hugo Boss Joachim Bader Director, Mobile, SapientNitro Insights from Prestige 100®: Mobile IQ Q&A Session MAUREEN MULLEN & Colin Gilbert Research & Advisory, L2 Q&A Session Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Mobile: End of the Beginning 1. “Smartphone Shipments Surpass PCs for the First Time. What’s Next?” Chloe Albanesius, PC Magazine, February 8, 2011. 2. “IDC: Mobile Internet to Pass PCs by 2015,” Mark Hachman, PC Magazine, September 12, 2011. 3. “Mobile Commerce Forecast: 2011 to 2016,” Sucharita Mulpuru, Forrester, June 17, 2011. 4. “Shoppers Research Deals via Mobile and Online Ahead of 2011 Black Friday Sales,” Miranda Miller, Search Engine Watch, November 28, 2011. 5. “Tablets: Ultimate Buying Machines,” Dana Mattioli, Wall Street Journal, September 28, 2011. 6. “Why Millionaires Love Steve Jobs (and the iPad),” Robert Frank, WSJ Blog: The Wealth Report, August 25, 2011. In the fourth quarter of 2010, more smartphones were shipped than PCs for the first time.1 By 2015, more APPeal users will access the Internet wirelessly via a mobile device than Prestige brands have been prudish with mobile. from a wired Ethernet connection.2 Over the next five years, The mobile strategy for most brands has been dominated by m-commerce sales are set to quintuple.3 On the year’s biggest blind investments in iOS apps that lack utility and “stickiness.” shopping day, Black Friday, online retail traffic from mobile Seven in 10 brands in the Index maintain at least one iOS app, but devices comprised 14.3 percent of page views, up from 5.6 less than a third of all apps produced are commerce-enabled. percent last year, and mobile sales ballooned to 9.8 percent of Use of features such as notifications, geolocation, and online sales, up from 3.2 percent last year.4 Throughout the past language specification is more limited. Less than a fifth of decade, analysts have relentlessly predicted “The Year of Mobile.” brands have developed a distinct, iPad-specific experience. It now looks as if we are in the fledgling innings of a mobile era. Game Changer M-Commerce The introduction of the iPad in April 2010 has escalated the mobile opportunity. Tablets register e-commerce We believe the game will be won or lost via development and optimization of robust, device-agnostic mobile commerce sites. Although two-thirds of brands conversion rates of four to five percent versus three percent on currently maintain a mobile site (the majority launched within traditional PCs.5 The user demographics for the iPad and other the past year), only 67 percent of these sites are commerce- tablets illuminate the opportunity for prestige brands: 20 percent enabled. Furthermore, use of such marketing tactics as mobile- of individuals with $1 million or more in investable assets own optimized search marketing, cross-platform mobile promotion, a tablet and spend 50 percent more time on the device than and mobile display advertising is scant. on their smartphone.6 © L2 2012 L2ThinkTank.com 3 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ p r e stig e 1 0 0 ® mobil e i n v e stm e n ts Iconic, but Immobile (December 2011) While more than half the brands in the Index maintain both an app and a mobile site, 16 percent of brands have yet to produce either. Icons such as Hermès, Patek Philippe, Bottega Veneta, and Marc Jacobs rely exclusively on their traditional site experience, which in some cases proves inaccessible on mobile devices. Mobile competence may be a crystal ball for a brand’s global prospects. Ground zero for growth 70% in prestige exists in emerging markets among a burgeoning 52% Mobile App middle class who are increasingly turning to a small screen to 66% Both 16% MobileOptimized Site learn about and ultimately purchase prestige brands’ products. Neither Mobile IQ = Innovation’s Canary in the Coal Mine Our thesis is that competence in mobile is inextricably linked to shareholder value in the prestige industry. Key to managing and developing a competence is an actionable metric. This study attempts mobil e comm e r c e sal e s F O RE C A S T 2 0 1 0 – 2 0 1 6 to quantify the mobile and tablet competence of Prestige United States 100 brands. Our aim is to provide a robust tool to diagnose ® (Source: Forrester, June 2011) strengths and weaknesses and help managers achieve 31 greater return on incremental investment. Like the platforms we are assessing, our methodology is that improve our investigation and findings. You can reach me at scott@stern.nyu.edu. Regards, Scott Galloway Founder, L2 25 cagr: 39% BILLIONS OF DOLLARS dynamic, and we hope you will reach out to us with comments 19 14 10 6 3 Clinical Professor of Marketing, NYU Stern 2010 © L2 2012 L2ThinkTank.com 2011 2012 2013 2014 2015 2016 4 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Methodology Mobile IQ Classes 40% mobile sites: Mobile-Optimized Sites: Tablet Experience: • Technology • Compatibility • Navigation & Search • Ability to Transact • Social Media Integration • HTML5 Support IQ Range Class 140+ GENIUS Mobile competence is a point of differentiation. Brands pursue a device-agnostic app/site strategy, embrace m-commerce, and consciously integrate mobile across wider digital footprint. • Customer Service • Product Page • Account & Check-Out 110–139 30% Mobile Applications: Availability: App Store Performance: Functionality: • iOS (iPad Differentiation) • Ratings • Navigation • Android • Comments • Pathway to Purchase • Blackberry • Update Frequency • Personalization • Windows Phone Series 7 • Language Support • Phone Feature Utilization Brands demonstrate high-quality, high-impact approach to mobile within a select dimension, sometimes at the expense of a wider mobile offering. 90–109 AVERAGE Efforts are siloed and inconsistent. Mobile presence suggests explicit preference for site versus app strategy or is primarily concentrated in low-cost entry platforms (e.g., geolocal). • Symbian 15% GIFTED mobile marketing: • Mobile SEO on Google & Bing • Email: Mobile Compatibility & Cross-Promotion of Mobile Properties • SMS: Sign-Up & Activity 15% 70–89 Limited mobile investment reflects low prioritization relative to other digital efforts. innovation & integration: • Integration: Promotion of Mobile Efforts on Site, Facebook, and Twitter • Geolocal: Presence & Activity on Foursquare • Innovation: Mobile Ad Campaigns, QR Codes, Mobile Wallet Support, etc. © L2 2012 L2ThinkTank.com CHALLENGED < 70 FEEBLE Investment does not match opportunity. 5 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Beauty & Skincare Rank Brand Category 1 SEPHORA Retail 2 NORDSTROM 3 Hospitality Retail Watches & Jewelry Mobile IQ Class Description LVMH 164 Genius Long-standing, sustained, iterative investment in mobile pays off Retail Nordstrom, Inc. 156 Genius New mobile app leapfrogs peer efforts with firm link between in-app and in-store experience MACY’S Retail Macy’s, Inc. 155 Genius Active SMS program and Xmas app experience add unique elements to strong mobile portfolio 4 NET-A-PORTER Retail Compagnie Financière Richemont S.A. 143 Genius Unique apps for local promotions, store exclusives, and spinoffs complement strong mobile site 5 BLOOMINGDALE’S Retail Macy’s, Inc. 135 Gifted Engaging, offer-centric mobile site overshadows generic iPad catalog app 6 L’OCCITANE EN PROVENCE Beauty & Skincare L’Occitane International S.A. 133 Gifted Both mobile app and site feature weak aesthetics, but excel in functionality 6 TIFFANY & CO. Watches & Jewelry Tiffany & Co. 133 Gifted “What Makes Love True” mobile app demonstrates strong geolocal aptitude 8 NEIMAN MARCUS Retail Neiman Marcus Group 125 Gifted Differentiated app approach on iPhone (“Gifts”) vs. iPad (“Catalog”) works to its advantage 9 INTERCONTINENTAL HOTELS & RESORTS* Hospitality InterContinental Hotels Group plc 119 Gifted Presence across four of the five mobile app platforms; “Concierge Insider Guides” iPad app provides unparalleled local insights for 100+ global properties 10 ESTÉE LAUDER Beauty & Skincare Estée Lauder Companies, Inc. 115 Gifted “Illumination” iAd campaign and high-functioning mobile site compensate for one-dimensional apps 11 AVEDA Beauty & Skincare Estée Lauder Companies, Inc. 113 Gifted New “My Style” app invites users to upload personal hairstyle while mobile site provides exclusive offers for mobile customers 12 RALPH LAUREN Fashion Ralph Lauren Corporation 112 Gifted Digital innovator demonstrates balanced investment across mobile app, mobile site, tablet experience, and mobile advertising 13 SAKS FIFTH AVENUE Retail Saks, Inc. 111 Gifted Strong iPad catalog app compensates for low-impact mobile site © L2 2012 L2ThinkTank.com Parent Fashion 6 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Beauty & Skincare Rank Brand Category 13 YVES SAINT LAURENT Fashion 15 DAVID YURMAN Watches & Jewelry 16 DIANE VON FURSTENBERG 17 Hospitality Retail Watches & Jewelry Mobile IQ Class Description Gucci Group (PPR) 111 Gifted New mobile site brings fashion label in sync with advanced, beauty-centric apps David Yurman, Inc. 104 Average Mobile site launched in November is a welcome replacement for aging iPhone app Fashion Diane Von Furstenberg 102 Average M-commerce does not carry over from site to app; instead promotes exclusives like Signature Skin iPhone covers, the App Wrap dress, and DVF-endorsed music ERMENEGILDO ZEGNA Fashion Ermenegildo Zegna Holditalia S.p.A. 101 Average Singular focus on iPad virtual store, which is consistently promoted across all digital properties 17 MANDARIN ORIENTAL hotel group Hospitality Jardine Matheson Group 101 Average “Cities by MO” provides expansion content for “MOHotels” app depending on user’s destination or interest 17 RITZ-CARLTON* Hospitality Marriott International, Inc. 101 Average Simple, streamlined mobile site and “World Concierge” campaign on Foursquare compensate for disappointing apps 20 FOUR SEASONS HOTELS AND RESORTS Hospitality Four Seasons Hotels, Inc. 100 Average Industry leader in Foursquare followers, with tips for 83 properties 20 GUCCI Fashion Gucci Group (PPR) 100 Average Sophisticated, technologically advanced “Gucci Style” app immerses user in brand-curated content that extends well beyond the clothes 22 BURBERRY Fashion Burberry Group plc 99 Average Second highest-scoring mobile site in Fashion enables brand to compete without investing in apps 22 CLINIQUE Beauty & Skincare Estée Lauder Companies, Inc. 99 Average Early adopter of in-store iPad kiosks and one of only three beauty brands with an active SMS campaign 22 JW MARRIOTT* Hospitality Marriott International, Inc. 99 Average Universal “Marriott International” app allows booking at JW properties and provides external links to strong mobile web assets 25 PARK HYATT* Hospitality Hyatt Hotels Corporation 98 Average Cross-brand “Hyatt” app allows booking at Park Hyatt hotels; parent’s mobile site provides extensive photo galleries of Park Hyatt properties 26 CLARINS Beauty & Skincare Clarins S.A. 94 Average Strong search elements on mobile site; fragrance release (Thierry Mugler Angel) proves a fan favorite in the app store © L2 2012 L2ThinkTank.com Parent Fashion 7 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Beauty & Skincare Rank Brand Category 26 GIORGIO ARMANI Fashion 26 OMNI HOTELS & RESORTS Hospitality 29 TORY BURCH Fashion 30 BERGDORF GOODMAN Retail 31 COACH Fashion 31 SOFITEL* Hospitality 33 CHANEL Fashion 33 CONRAD HOTELS & RESORTS* 33 Hospitality Retail Watches & Jewelry Mobile IQ Class Description Giorgio Armani S.p.A. 94 Average Touch-enabled mobile site compensates for unfocused, fragrance-centric app store offering TRT Holdings 94 Average Mobile app and site do little to go beyond the basics Tory Burch LLC 92 Average Mobile store finder features Foursquare integration; no apps Neiman Marcus Group 91 Average “Shoe Salon” app and Foursquare Mayor specials prevent brand from falling too far behind fellow retailers in absence of mobile site Coach, Inc. 90 Average Mobile users greeted with in-store signage that unlocks exclusive information on Kristin collection Accor 90 Average Leverages “Accor Hotels” app and parent’s mobile site to its advantage, but these assets dilute Sofitel brand Chanel S.A. 89 Challenged Fashion and accessories elements of mobile site still prove inaccessible, forcing strict reliance on apps Hospitality Hilton Worldwide 89 Challenged Unique app development for “Conrad” brand that proves interoperable with Hilton Honors account DOLCE & GABBANA Fashion Dolce & Gabbana Industria S.p.A. 89 Challenged “Fashion Channel” replicated across both mobile site and apps, but stops short of m-commerce 36 ORIGINS Beauty & Skincare Estée Lauder Companies, Inc. 88 Challenged Mobile site features extensive user reviews of products but provides no way to submit one’s own opinions on the go 37 CARTIER Watches & Jewelry Compagnie Financière Richemont S.A. 87 Challenged Multiple iPad apps and strong universal “Cartier Bridal” app, but mobile shopping experience leads to Call an Advisor 37 FAIRMONT HOTELS & RESORTS Hospitality Fairmont Raffles Hotels International 87 Challenged President’s Club participation allows guests to share stories, with user photos appearing alongside official property images 39 CALVIN KLEIN Fashion PVH Corporation 86 Challenged CK One augmented reality experience available on three of the five mobile platforms assessed © L2 2012 L2ThinkTank.com Parent Fashion 8 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Rank Brand Beauty & Skincare Category Parent Fashion Hospitality Retail Watches & Jewelry Mobile IQ Class Description Starwood Hotels & Resorts Worldwide, Inc. 85 Challenged Innovative ad campaign in Weather Channel iPad app takeover; eight property-specific apps with limited functionality undercut superior utility of “SPG” cross-brand app LVMH 84 Challenged Innovative tie-in between Amble app and Foursquare does not save dead-end mobile site experience 40 WESTIN HOTELS & RESORTS* Hospitality 41 LOUIS VUITTON Fashion 41 M·A·C COSMETICS Beauty & Skincare Estée Lauder Companies, Inc. 84 Challenged Strong video content and M·A·C Artist profiles only exist on mobile site, not the app store 43 LANCÔME Beauty & Skincare L’Oréal Group 82 Challenged Advanced user-generated content element of mobile apps only partially compensate for lack of mobile site 43 ST. REGIS* Hospitality Starwood Hotels & Resorts Worldwide, Inc. 82 Challenged E-Butler app provides guest-specific functionality that goes beyond the basic guest services book 43 WALDORF ASTORIA* Hospitality Hilton Worldwide 82 Challenged Brochure-ware app mitigated by functional mobile site leveraging Hilton Honors system 46 KIEHL’S Beauty & Skincare L’Oréal Group 81 Challenged Clean mobile site navigation provides outlet for browsing but not buying (Call to Order) 46 LE MÉRIDIEN* Hospitality Starwood Hotels & Resorts Worldwide, Inc. 81 Challenged Heavy reliance on “SPG” app for mobile bookings; property-specific app limited to Dubai 48 BARE ESCENTUALS Beauty & Skincare Shiseido Company, Limited 80 Challenged “Be a Force of Beauty” campaign incorporated QR codes tied to model’s bio, look, and associated beauty products 49 RAYMOND WEIL Watches & Jewelry Raymond Weil S.A. 79 Challenged December launch of official app rounds out mobile investment 50 AUDEMARS PIGUET Watches & Jewelry Audemars Piguet Holding S.A. 76 Challenged Comprehensive promotion of mobile footprint on site as brand extends app experience to Android 50 RELAIS & CHÂTEAUX Hospitality n/a - Global Fellowship 76 Challenged App “Guides” provide novel path to property discovery, but R&C remains the only hospitality brand without a mobile site 50 SHANGRI-LA HOTELS AND RESORTS Hospitality Shangri-La Asia Limited 76 Challenged Tokyo and Manila property apps do not extend to wider resort portfolio; mobile site allows for limited property exploration © L2 2012 L2ThinkTank.com 9 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Beauty & Skincare Rank Brand Category 53 HUGO BOSS Fashion 53 JAEGER-LECOULTRE 55 Hospitality Retail Watches & Jewelry Mobile IQ Class Description Valentino Fashion Group S.p.A. 75 Challenged Site and apps still lack m-commerce, but do include innovative features like color matching via camera image Watches & Jewelry Compagnie Financière Richemont S.A. 75 Challenged “My Reverso” app provides user the freedom to visualize custom engraving before reaching out to a concierge SWAROVSKI Watches & Jewelry Swarovski AG 73 Challenged SCVNGR hunt in London demonstrates willingness to experiment beyond the app store 56 JUMEIRAH Hospitality Jumeirah Group 71 Challenged Emirates Towers property claims sole app; iPad defaults to mobile site designed for smaller screen 57 MORGANS HOTEL GROUP Hospitality Morgans Hotel Group 69 Feeble Sections of mobile site (City Guides) revert back to main site; iPad defaults to mobile optimized site designed for a smaller screen 58 PHILOSOPHY Beauty & Skincare Coty Inc. 68 Feeble Strong gift finder and navigation filters differentiates mobile site 58 VALENTINO Fashion Valentino Fashion Group S.p.A. 68 Feeble Encyclopedic iPad app lacks personalized features, but mobile-optimized shopping portal hints of progress 60 OMEGA Watches & Jewelry The Swatch Group, Ltd. 66 Feeble Parallel mobile app/site designs feature comprehensive search tools 61 SMASHBOX Beauty & Skincare Estée Lauder Companies, Inc. 65 Feeble Innovative product QR codes direct users to video tutorial by makeup artist Lori Taylor; recently optimized email marketing for mobile screens 61 VAN CLEEF & ARPELS Watches & Jewelry Compagnie Financière Richemont S.A. 65 Feeble Mobile placeholder site offers access to catalog and store locator, circumventing flash-heavy site 63 HUBLOT Watches & Jewelry LVMH 64 Feeble 360-degree product views, augmented reality features, and video content in app do not distract from aging mobile site 63 ROSEWOOD HOTELS & RESORTS Hospitality New World Hospitality 64 Feeble One of only two hospitality brands without an app store presence 65 BULGARI Watches & Jewelry LVMH 61 Feeble Brand replicates all product-specific apps across iPhone and iPad without customization; “Bulgari Touch” site lacks m-commerce © L2 2012 L2ThinkTank.com Parent Fashion 10 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Beauty & Skincare Rank Brand Category 66 BENEFIT cosmetics Beauty & Skincare 67 THE PENINSULA HOTELS Hospitality 67 ROLEX Watches & Jewelry 69 BARNEYS NEW YORK Retail 69 MONTBLANC 71 Hospitality Retail Watches & Jewelry Mobile IQ Class Description LVMH 59 Feeble August test of in-store iPad kiosks demonstrates increasing innovation in mobile space beyond HTML5 site Hongkong and Shanghai Hotels, Limited 58 Feeble Mobile site requires guest to call or email reservations desk, forcing reliance on buggy app Rolex Holding S.A. 58 Feeble Strong demand for third-party reference apps demonstrates (missed) opportunity beyond mobile site and tablet e-magazine Istithmar PJSC 57 Feeble Remains the only retailer in the Index to shy away from the app store; no longer redirecting to mobile site Watches & Jewelry Compagnie Financière Richemont S.A. 57 Feeble Strong app presence and product specific-promotions do not compensate for lack of a mobile site CHOPARD Watches & Jewelry Chopard Holding S.A. 56 Feeble App presence focused exclusively on “Happy Diamonds” collection; mobile site features simple photo gallery 72 HARRY WINSTON Watches & Jewelry Harry Winston, Inc. 52 Feeble “Harry Winston Timepieces” app has limited functionality; HTML5 enables solid tablet experience 73 ELIZABETH ARDEN Beauty & Skincare Elizabeth Arden 51 Feeble Mobile site for Prevage line of skincare products only 74 TOD’S Fashion Tod’s S.p.A. 50 Feeble Limited mobile site and heavily promoted iPad apps are all about presentation, not functionality 75 ALFRED DUNHILL Fashion Compagnie Financière Richemont S.A. 49 Feeble E-magazine iPad app tests mobile aptitude by mirroring “Day 8” microsite 76 SHISEIDO Beauty & Skincare Shiseido Company, Limited 48 Feeble App store experience caters exclusively to Chinese market 77 BOBBI BROWN Beauty & Skincare Estée Lauder Companies, Inc. 47 Feeble Mobile-friendly email marketing demonstrates awareness of mobile consumers, despite the lack of mobile apps/site 77 DE BEERS Watches & Jewelry LVMH 47 Feeble Lack of a mobile site and apps partially offset by move to HTML5 © L2 2012 L2ThinkTank.com Parent Fashion 11 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Beauty & Skincare Rank Brand Category 79 IWC SCHAFFHAUSEN Watches & Jewelry 79 MARC JACOBS Fashion 79 PANDORA Watches & Jewelry 82 CHLOÉ 83 Hospitality Retail Watches & Jewelry Mobile IQ Class Description Compagnie Financière Richemont S.A. 44 Feeble Best-in-class quarterly e-magazine content does not include comments/ratings LVMH 44 Feeble Popularity on Foursquare compensates for continuing lack of mobile apps/site Pandora A/S 44 Feeble Mobile app with updatable catalog and gift finder make up for the absence of mobile site Fashion Compagnie Financière Richemont S.A. 43 Feeble Mobile site provides look book, but no m-commerce functionality; no apps VERSACE Fashion Gianni Versace S.p.A 40 Feeble Lack of a mobile site and apps partially offset by move to HTML5 84 BOTTEGA VENETA Fashion Gucci Group (PPR) 39 Feeble Catalogs featured on main site require Flash player, but email marketing is mobile friendly 84 NARS Beauty & Skincare Shiseido Company, Limited 39 Feeble Full HTML5 site provides a strong asset from which to build a mobile-specific experience 84 TAG HEUER Watches & Jewelry LVMH 39 Feeble Mobile site is relegated to in-site map; multiple apps pulled from iTunes store during study period 87 CHRISTIAN DIOR Fashion Christian Dior S.A. | LVMH 37 Feeble App presence only partially compensates for frustrating mobile browsing experience 88 PRADA Fashion Prada Group 35 Feeble Site browsing experience proves untenable on mobile device 89 VACHERON CONSTANTIN Watches & Jewelry Compagnie Financière Richemont S.A. 34 Feeble “Snow Golf” makes for a poor outing in an industry obsessed with apps 90 SK-II Beauty & Skincare Procter & Gamble 32 Feeble Flash fail on site; meanwhile, app store presence caters exclusively to Korean market 91 FENDI Fashion LVMH 31 Feeble Aging mobile site resembles brochure-ware © L2 2012 L2ThinkTank.com Parent Fashion 12 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Brand Ranking Beauty & Skincare Rank Brand Category 92 SALVATORE FERRAGAMO Fashion 93 PIAGET Watches & Jewelry 94 HERMÈS 95 Parent Fashion Hospitality Retail Watches & Jewelry Mobile IQ Class Description Salvatore Ferragamo S.p.A. 29 Feeble Seamless tablet experience has yet to migrate to the phone Compagnie Financière Richemont S.A. 28 Feeble The brand’s two product-specific apps have not been updated since August 2009 and August 2010, respectively Fashion The Hermès Group 26 Feeble No app, no mobile site ALEXANDER MCQUEEN Fashion Gucci Group (PPR) 25 Feeble Flash fail on homepage, but online store functions 96 BALENCIAGA Fashion Gucci Group (PPR) 24 Feeble Whatever you do, don’t pinch and zoom 97 OSCAR DE LA RENTA Fashion Oscar de la Renta, Limited 22 Feeble Flash fail exacerbates lack of mobile site/apps 98 BACCARAT Watches & Jewelry Baccarat Crystal 17 Feeble Flash fail; relies on Neiman Marcus to facilitate m-commerce 99 MOVADO Watches & Jewelry Movado Group, Inc 13 Feeble Site browsing experience proves untenable on mobile device 100 PATEK PHILIPPE Watches & Jewelry Patek Philippe S.A. 8 Feeble Please Note: the “next generation” doesn’t use Flash *Hospitality brands that leverage mobile assets maintained by a parent company and/or shared by sister brands (reward programs, booking systems, etc.) receive credit for those components © L2 2012 L2ThinkTank.com 13 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ MOBILE IQ DISTRIBUTION Key Findings % of Brands per Mobile IQ Class Sephora Dispersion Bloomingdale’s L’Occitane en Provence Almost half the brands in the Index register 4% Tiffany & Co. as “Feeble”—demonstrating widespread underinvestment in mobile by a considerable GENIUS Estée Lauder portion of the prestige sector. The disparity >140 GIFTED Neiman Marcus InterContinental Hotels & Resorts Nordstrom mobile IQ mobile IQ 110–139 10% Aveda between the Index leader (164 IQ points) Ralph Lauren and the Index laggard (8 IQ points) suggests Saks Fifth Avenue that this “mobile gap” is more the result of Yves Saint Laurent 19% With a median score of only 76, the majority of brands are just beginning to make mobile David Yurman JW Marriott Diane Von Furstenberg Park Hyatt Ermenegildo Zegna Giorgio Armani Ritz-Carlton Chanel St. Regis Waldorf Astoria Dolce & Gabbana Le Méridien Origins Cartier Fairmont Hotels & Resorts Calvin Klein Westin Hotels & Resorts Louis Vuitton M·a·c Cosmetics Lancôme mobile IQ Gucci 90–109 Burberry Coach CHALLENGED Bergdorf Goodman Sofitel Morgans Hotel Group Iwc Schaffhausen Philosophy Marc Jacobs Valentino Pandora Omega Chloé Smashbox Versace Van Cleef & Arpels Bottega Veneta Relâis & Chateaux Hublot Nars Shangri-La Hotels & Resorts Rosewood Hotels & Resorts Tag Heuer Hugo Boss Bulgari Jaeger-LeCoultre Benefit Prada Kiehl’s Bare Escentuals Raymond Weil Audemars Piguet Swarovski mobile IQ 70–89 23% FEEBLE The Peninsula Hotels Jumeirah Rolex Barneys New York Montblanc 44% mobile IQ <70 Chopard Harry Winston Elizabeth Arden Tod’s Alfred Dunhill Shiseido Bobbi Brown © L2 2012 L2ThinkTank.com Omni Hotels & Resorts Tory Burch Clinique Conrad Hotels & Resorts Clarins Four Seasons Hotels & Resorts investments, while a select few early investors are pulling away from the pack. Net-A-Porter Mandarin Oriental AVERAGE nonparticipation than subpar performance. Macy’s De Beers Christian Dior Vacheron Constantin Sk-Ii Fendi Salvatore Ferragamo Piaget Hermès Alexander McQueen Balenciaga Oscar de la Renta Baccarat Movado Patek Philippe 14 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings Mobile Site Homepage In the Company of Genius: Sephora While there are four Genius brands in the Prestige 100®, Sephora exists in a class of its own. The brand’s mobile site feature product videos organized by content type and filterable by brand. Other key features include a GPS-based store locator, shopping list creator, order history/tracking, and a section for mobileexclusive offers. iPad App Home Screen Sephora’s iPhone app and mobile site share the same basic look and feel, with the latter offering additional features such as a “Beauty Advice” section, “Try It On”—a tool that allows Mobile Site Product Ratings Mobile Site Video Library iPhone App “Try It On” Tool the user to adjust skin tone and nail polish color on a virtual hand, and barcode scanning functionality to augment in-store shopping. The brand’s iPad app features how-to videos with a side-by-side mirror powered by the device’s camera, allowing users to see their own faces while following makeup application instructions. © L2 2012 L2ThinkTank.com 15 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings Beauty & Skincare Disparity 107 Genius that achieved “Genius” or “Gifted” status, half were retailers. platforms. However, many investments from 125 101 Gifted among the first to actively invest in mobile Disparity Disparity 140 customer set, hospitality brands have been the 2009 timeframe are beginning to show their Watches & Jewelry 180 the Index, retail stands apart. Of the 14 brands just below “Average.” Catering to a peripatetic Retail (December 2011) contributes at least two brands to the top 20 of Hospitality plays runner-up to retail, hovering Hospitality M obil e I Q D ist r ibutio n BY I N D U S T R Y Mind the Gap Although each of the five industries reviewed Fashion Disparity AVG IQ 62 126 Disparity 90 110 Average age—more than 15 percent of hospitality apps have not been updated in the past 12 months. 90 Challenged 70 AVG IQ 86 AVG IQ 77 AVG IQ 65 AVG IQ Feeble 58 Je w n= elr y 24 & es ch W at & ty au Be © L2 2012 L2ThinkTank.com Fa s n= hion 29 Sk in c n= are 18 sp it n= ality 20 Ho Re t n= ail 9 0 16 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings Beauty & Skincare 180 Disparity 133 Disparity 20 Genius terms of Mobile IQ. Disparity Of the larger and more diversified parent 115 AVG IQ 145 140 Disparity 34 Gifted score skews toward the upper range of the disparity. Six of the seven Estée Lauder Disparity 68 brands register a mobile site score above 110 performance in one of the four dimensions. Disparity 87 Disparity AVG IQ 108 Average the Index average, demonstrating consistent Watches & Jewelry (December 2011) hospitality typically perform above average in organization for which the portfolio’s average Retail M obil e I Q D isp e r sio n by O w n e r ship parent companies with a portfolio in retail or companies, Estée Lauder is the only Hospitality Organizations with More than One Brand Represented in Index Good Genes In line with our industry-specific observations, Fashion AVG IQ 2 100 Disparity 7 AVG IQ 86 AVG IQ 87 Disparity AVG IQ 83 5 Disparity AVG IQ 82 1 Disparity 7 AVG IQ 72 AVG IQ 66 AVG IQ 63 AVG IQ 60 Feeble 70 Challenged 90 ld w Re n= ide so 2 rts W or ld w n= ide 3 Va L’O le ré nt a in lG o ro Fa sh n= up io 2 n Gr ou p S. p Co n= .A . m pa 2 gn ie Fi na LV nc M ièr n= H eR 9 ich em on t n= S.A Gu 10 . cc iG ro up (P P n= R) 5 Hi lto n W or es ,I n= nc. 7 Ho te ls & La u e té Es ni pa om rC de In tt rio ar M © L2 2012 L2ThinkTank.com St ar wo od na io at rn te M an im Ne l, I n= nc. 2 Gr o n= up 2 s ar M cu ac y’ s I n= nc. 2 10 17 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings mai n sit e s v s . mobil e sit e s Prevalence of Basic Features Mobile Commerce vs. Mobile Experience (December 2011, N=66) In 2011, seven percent of all U.S. Internet traffic came from mobile devices. Many Prestige 100® brands are catching on to the 82% 82% 79% growing importance of robust, multifunctional mobile sites. While Google estimates that just 21 percent of its advertisers have mobile sites, two-thirds of brands in the Index = = 74% 67% MAIN SITE MOBILE SITE 67% maintain them, and 67 percent of those sites are m-commerce enabled.7 However, participation in m-commerce does not fully capture the quality of the mobile experience. In aggregate, across every category measured, 44% 41% mobile sites examined consistently failed to 41% replicate key features and functionalities found on the main sites including videos, product 30% search, and user ratings. 27% 26% 23% 20% 14% 9% E-/M- Commerce Enabled 7. “Google’s Battle for the Mobile Web,” Michael Boland, Search Engine Watch, November 25, 2011. © L2 2012 L2ThinkTank.com Store Locator Video Product/ Property Search Multiple Languages Order/ Reservation Tracking User Ratings Facebook “like” API 18 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings P r e stig e 1 0 0 ® A P P L I C AT I O N S A c r oss S ma r tpho n e P latfo r ms (December 2011) # of Apps per Platform iWorld In mid-December 2011, the millionth app was released in the mobile marketplace. 8 Approximately 15,000 apps are currently released every week, a pace of development that exceeds every competing form of media. % of Brands in Index 196 iOS 70% Seventy percent of Prestige 100 ® brands have produced apps for mobile devices. Development efforts are skewed heavily toward the iOS platform. Every brand that supports an app has developed for the iOS platform and average nearly three unique apps for Apple devices. While this investment Android does not map to device market share (Gartner 22% estimates that Android represented 52.5 16% Symbian percent of smartphone sales in the third Blackberry quarter of 2011), it does reflect Apple’s demographic advantage. 7% 9 Windows Phone 7 2% 8. “One Million Mobile Apps, and Counting at a Fast Pace,” Shelly Freierman, New York Times, December 11, 2011. According to Hunch data released in August, compared to Android users, iOS users are:10 67% 60% 50% 37% 27% 18% 9. “Gartner Says Sales of Mobile Devices Grew 5.6 Percent in Third Quarter of 2011; Smartphone Sales Increased 42 Percent,” Press Release, Gartner, November 15, 2011. more likely to... 10. “Android vs. iPhone: Battle of the Mobile Operating Systems,” Amanda Green, Hunch, August 15, 2011. Have an Annual Household Income of $200k or more © L2 2012 L2ThinkTank.com Have an American Express card Have visited more than five countries Have a graduate degree Live in a city Be women 19 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings Tablets: iOpportunity Apple ended the first half of 2011 with nearly D e v ic e - S p e cific app D e v e lopm e n t fo r i O S P latfo r m (December 2011, N=100) 37% iPhone 62% Both 16% 21% a 70 percent share of the global market for = UNIQUE IPAD CONTENT = REPLICATED ON BOTH DEVICES tablets. As a product class, tablet devices 11 have proven a boon to m-commerce. Tablet shoppers demonstrate a conversion rate of four to five percent compared with three percent on a PC.12 Even when compared directly to smartphones, 25 percent of “dual owners” surveyed by Ipsos demonstrate a preference 45% to purchase on sites while using a tablet.13 iPad Despite the evidence underscoring the growing need to cater to tablet users, prestige brands have been slow to adapt. Although 37 percent of all brands have a presence on both the iPhone and iPad, only 16 percent have created a unique experience for iPad users rather than simply replicating the same app across Tabl e t E x p e r i e n c e Site Optimization for Safari Browser on iPad (December 2011) both devices. Loads iPad Site Development of iPad-specific site experiences also lags. While 66 percent of brands maintain 11. “Media Tablet and eReader Markets Beat Second Quarter Targets, Forecast Increased for 2011, According to IDC,” IDC, Press Release, September 14, 2011. a mobile site, only seven have an iPad-specific 12. “Tablets: Ultimate Buying Machines,” Dana Mattioli, Wall Street Journal, September 28, 2011. percent of brands that default to the PC site, 13. eMarketer, “Tablet Owners Most Active in M-Commerce,” October 19, 2011. components, which iOS does not support. Loads Mobile Site 7% 11% experience. Furthermore, 11 percent of brands in the Index are redirecting to their mobile site on the iPad, often failing to take advantage of the uptick in potential conversion. Of the 82 eighteen percent lack full functionality because of the lingering presence of Adobe Flash © L2 2012 L2ThinkTank.com Loads Completely Broken Site Loads Partially Broken Site 9% 9% 64% Loads Site 20 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ i O S A pps Prevalence of Basic Features (December 2011) Key Findings Brochure-Ware Rich Media & Interactivity While iPhone apps dominate, sophistication Social Media Integration Personalization 51% lags across the Prestige 100®. The majority of brands have failed to adopt platform-specific functionality that keeps the user experience “sticky.” Less than a third of apps provide integration with the iPhone’s GPS and native 40% mapping software. Adoption of other features 39% is even further behind: 17 percent of apps 35% include iOS notifications, only 16 percent incorporate the phone’s camera, and a mere 31% five percent utilize the three-axis gyroscope (the internal component that detects the de- 28% vice’s orientation in space and translates the user’s movements via tilt, shake, and other motions). 22% 19% 17% 16% 16% 14% 9% 7% Sh ar ing via Em ail Via Fa ce bo ok Lin Vi ks a to Tw SM itte r Br an d Pa ge s InAp p Ac co un tS ign -In Bo ok m ark Ining Ap p La S ng ea ua rc ge h Sw Un i t c loc hin ka g ble M Co ini nt -G en am t eE lem en ts 5% sc op e lity Re a Gy ro m er a ted Ca en Au gm t No t ific ati t en Su pp or Co nt GP S de o Vi © L2 2012 L2ThinkTank.com on s 5% 21 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings ( L ack of ) Localizatio n Language Support for Apps Posted to U.S. App Store (iOS) Language Barriers (December 2011) Within the U.S. iTunes Store, only 27 percent of the 196 apps reviewed provide support for more than one language, and only 14 apps 90% provide trilingual support for English, French, and German. According to data from App Annie, the U.S. accounts for 28 percent of the download market for free iOS apps.14 France and Germany are among the top-five nonEnglish-speaking markets for apps, together representing seven percent of the download market. Unlike Asian markets, content within the European iTunes Stores closely mimics that of the U.S. For instance, in the French iTunes Store 87 percent of Prestige 100® brands produce mirrored content with no perceptible alteration. Only 23 percent of the apps have French 27% language support (versus 96 percent with English language support) and only 21 percent 19% 19% have changed the description of the app to more effectively cater to a French audience. 11% 8% 10% 7% 8% 3% English Multi-Lingual French German Spanish Italian Portuguese Chinese Japanese Korean 14. “The Importance of Localization in App Stores,” App Annie, November 9, 2011. © L2 2012 L2ThinkTank.com 22 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings T op 1 0 : M ost C omm e n ts R e c e i v e d ( i O S A P P S ) The Impact of Public Opinion (January 2012, N=108) In May, ABI Research reported that the iTunes Store ranking algorithm would begin taking into account qualitative information such as user reviews and frequency of usage.15 This additional wrinkle in iTunes SEO has SEPHORA: Sephora to Go 285 put newfound emphasis on garnering high CLARINS: Thierry Mugler—Angel ratings and significant user reviews in addition to downloads. The speed with which these apps have garnered a positive reputation is reflected in their relative standing in the App Store. In December, Nordstrom had the highest placement among the five Prestige 100 264 MACY’S: Macy’s iShop 231 NORDSTROM: Nordstrom 220 ® brands appearing on the Top-200 Free iPhone Apps listed in the Lifestyle category (#13). Similarly, Marriott had the highest placement among the six Prestige 100® brands appearing MARRIOTT INTERNATIONAL, INC.: Marriott International 215 HILTON WORLDWIDE: Hilton 167 on the Top-200 Free iPhone Apps listed in the STARWOOD HOTELS & RESORTS: SPG Mobile App 138 BERGDORF GOODMAN: Today’s Shoe 115 INTERCONTINENTAL HOTELS GROUP: Priority Club Rewards 111 LANCÔME: Lancôme Make-Up © L2 2012 L2ThinkTank.com 0 40 0 35 0 30 0 25 0 20 0 0 10 50 98 0 15. Chantal Tode, “Changes to iTunes app ranking algorithm will have wide impact: experts,” Mobile Marketer, May 5, 2011. 15 Travel category (#26). 23 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ i O S A pps : U s e r S e n tim e n t The volume of ratings and comments associated with an app is largely Number of Ratings vs. Number of Stars Received a function of the time elapsed since release. Only three Prestige 100® (December 2011, N=102) apps released in the past year appear on both the top-10 lists for overall comments and a favorable combination of quantity vs. quality of ratings: Giorgio Armani Acqua for Life Clarins Thierry Mugler Angel Nordstrom CLARINS: Thierry Mugler Angel (v1.2) Nordstrom (v1.2) Marriott (v1.4) September November August 2011 2011 2011 264 302 336 264 220 215 Marriott International Tiffany & Co. Engagement Ring Finder Release Year Gucci Style Ratings Stars Comments # of ratings submitted Note: Horizontal axis (# of ratings submitted) is graphed on a logarithmic scale. © L2 2012 L2ThinkTank.com 24 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings Plain-Text MobileOptimized Email M obil e O ptimizatio n of Email M a r k e ti n g Email Optimization (December 2011) During the second half of 2011, mobile email open rates increased 34 percent, with consumers opening 23 percent of all emails on their mobile devices.16 Although 78 percent of Prestige 100® brands engage in email marketing, only 24 percent have links to mobile-optimized versions of their email 78% content, and 55 percent opt to provide links to plain HTML versions. Low-hanging fruit abounds. Within their marketing emails, just 18 percent of brands with mobile sites have links to their mobile properties and only 19 percent of the brands 53% with mobile apps include download links to the corresponding app store. Regular, Non-MobileOptimized Email 24% 13% 11% es im Pr o ize pe d r ti Si te ps Ap o kt ob -O rM ile he ob Ot M o kt kt HTML-Based Email In Mobile Browser ile pt Lin o Lin © L2 2012 L2ThinkTank.com Lin Ac tiv e Em ail M ar ke 16. “Mobile, Webmail, Desktops: Where Are We Viewing Email Now?” Return Path, research study, December 2011. Lin Ve k to rs P ion la of in W Em eb Lin ail kt o M ob Ve ile rs -O ion pt of imiz Em ed ail tin g 2% 25 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ T op 1 0 : F ou r squa r e B r a n d F ollow e r s Key Findings (December 2011) 180 160 Check-in 140 Only five percent of Americans use geolocal 120 80 65,923 60 32,191 31,367 11,330 e 8,699 ôm nc La ·A ·C ea so an ns d H Re ot so els r ts de xA ve M ra ge 15,797 rS Fo u Bl increased by nearly 30 percent, from 540,000 18,412 In oo Lo Hu go Bo ss s le’ da m c ing co Ja y’s n to Vu it uis brands with a detectable Foursquare presence ac 0 cities, total check-ins generated by the 94 M London, Paris, Milan, and Tokyo). Across all Gu cc i 20 bs 20,098 study period (New York City, San Francisco, ch across the six cities L2 examined during the ur 38,244 40 yB growth at retail locations and local properties 49,918 To r Prestige 100® brands registered high check-in ar twice as likely to share product information.17 100 M skew younger, register higher income, and are (in thousands) apps at least once a month, but these active users represent a high-value demographic. They 170,357 to 700,000 over a four-week period. Nonetheless, only 27 brands in the Index T op 1 0 : F ou r squa r e Locatio n C h e ck- i n s maintain an official Foursquare page, five of (December 2011) which were classified as “zombie” accounts 142,229 = Maintains Foursquare Brand Page = = = New York City (i.e., no recent activity registered from the associated brand). 48,827 © L2 2012 L2ThinkTank.com ve ra er ide n ge 7,080 xA th Fif 17,077 Le M Av en ue Yo rk ks sN ey rn Ba 18,066 In de 21,782 ew str rd Ho tal en tin No tel s om 22,612 Sa 30,899 ra ph o Se Co n Bl oo m ing da le’ s W es an tin d H Re ot so els r ts y’s ac 31,727 International er M or ga ns Ho t el Gr 17. “Marketing Via Geosocial Apps: Why and How,” Melissa Parrish, Forrester Research, December 6, 2011. M ou p 36,159 San Francisco Int 62,417 26 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings A v e r ag e G lobal M o n thly S e a r ch e s fo r P r e stig e 1 0 0 ® B r a n ds Desktop/Laptop vs. non-PC Devices Searching On The Go (Source: Google AdWords, November 2011) Fourteen percent of global monthly Google searches for Prestige 100® brands originate from mobile devices, which is significant = = given that non-computer devices account for less than seven percent of traffic in the U.S. NON-PC DEVICE dESKTOP/LAPTOP 14% and less than five percent of traffic among the EU5 (France, Germany, Italy, Spain, and the U.K.).18,19 Paid mobile search is rapidly growing in importance. In October 2011, mobile accounted 86% for approximately 15 percent of all clicks and 13 percent of all impressions on Google. During December, it is estimated that those figures rose to 25 and 20 percent, respectively.20 Despite strong evidence for the need to customize traditional SEM/SEO efforts for mobile platforms, few Prestige 100® brands 18. “Smartphones and Tablets Drive Nearly 7 Percent of Total U.S. Digital Traffic,” comScore press release, October 10, 2011. 19. “Smartphones and Tablets Drive Nearly 5 Percent of Digital Traffic in EU5,” comScore press release, October 26, 2011. appear to be taking proactive steps. Of search returns rendered on a mobile device, only 13 percent of brands have links to any element of their mobile presence on the first page of Google returns. Fewer than 25 percent include customer service or contact 17% of Aveda’s Global Monthly Searches originate from mobile devices, which the brand capitalizes on with mobile-specific SEO. Locations map from the organic results First curated result features links to the location finder and account access info. Just over a third of the brands have store locators and/or maps returned in their results. 20. “Mobile Paid Search Share to Skyrocket in December; Remains a Significant Bargain,” James Beveridge, Performics blog, November 22, 2011. Sponsored ad links to mobile site © L2 2012 L2ThinkTank.com 27 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Key Findings Cross-Promotion S it e - S p e cific P r omotio n of S ocial M e dia Effo r ts v s . M obil e Effo r ts (December 2011, N=70) Mobile efforts often sit in isolation from the overall digital footprint of Prestige 100® brands. 82% Only 28 percent of the brands in the Index are developing mobile apps promote them on their main sites. In contrast, 82 percent of the brands link to their Facebook pages and 66 66% percent to their Twitter accounts. 39% Only three brands maintain custom tabs on Facebook dedicated to mobile properties. Within a sample of 50 consecutive wall posts, 20 brands linked to their iOS app pages in the iTunes Store, four linked to their apps in the Android marketplace, three linked to their mobile sites, and nine linked to other mobile-related properties like Foursquare and Instagram. Within a sample of 100 consecutive tweets, just 13 brands linked to their iOS apps in the iTunes Store, one linked to its app in the Android marketplace, three linked to their mobile sites, and 12 linked to other mobile- 28% related properties. Promotion of mobile apps on Sephora’s homepage Mobile Apps © L2 2012 L2ThinkTank.com 28 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Augmented Reality Goes Mainstream In March 2011 Calvin Klein began a global campaign designed to relaunch “CK One” as a lifestyle brand for the digital generation. The Print Augmented Reality Ads 360-degree campaign spanned television, print, billboard, online advertising, social media, and mobile. The mobile component of CK One encouraged users to find, reveal, and watch locked multimedia content by scanning print material Locked Content and billboards—effectively bridging the traditional media and digital media components of the campaign. The supporting technology leveraged image recognition instead of QR codes to enable discovery. The campaign yielded 117 million impressions of the augmented reality print ads. The cross- Reveal, Find, Watch platform campaign was optimized for iOS, Android, and Symbian devices. © L2 2012 L2ThinkTank.com Billboard Augmented Reality Ads 29 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Mobile Pick Me Up Style Profile guides you to collections of distinct looks In November, Nordstrom launched a new app catapulting the brand to mobile leadership in the competitive retail category. The app’s built-in barcode scanner allows customers to determine whether a particular product is available at a local Nordstrom, including instore pickup. A calendar of upcoming events at preferred stores further bridges the online/ offline connection. Lastly, “Style Profile” provides users with the ability to browse a curated product selection. The Nordstrom app has already accumulated nearly 200 comments in the iTunes Store. Buy, Bookmark, Share, or… Pick-Up In-Store Upcoming Events at “My Stores” bridges in-app and in-store experiences © L2 2012 L2ThinkTank.com 30 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Mirror, Mirror on the Device Virtual makeup apps have become table stakes in the beauty industry, making differentiation increasingly difficult. YSL’s ColorMirror app, released on the iPhone and iPad in October, successfully pulls away from the pack, providing enough functionality to meet the needs of both makeup enthusiasts and professionals. The app showcases all available shades and colors for nearly 40 products in 12 categories. With advanced layering and opacity options, this toolbox provides the Biometric recognition of user image user with freedom to experiment on a virtual model or an imported photo. The sixty-five- Blank Canvas Infinite combinations of featured YSL beauty products point biometrics ensures imported images are optimized to work precisely with the paintbrush tools. Most importantly, the app steadily builds an informative basket of items used to create a unique look for offline purchase. Shopping list of products used to create unique looks Before/After comparison © L2 2012 L2ThinkTank.com 31 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Mobile as Media Platform Since late 2010, IWC has been porting the quarterly edition of its Watch International magazine, conceived by German design studio Ringzwei, to the iPad. The content found in these digital issues is diverse, spanning sporting events, celebrity profiles, technical innovations, and examples of cutting-edge design. This e-mag distinguishes itself from others in several ways. It features superior, Watch International e-mag (issued quarterly) consistent design that mimics the aesthetics showcased in the company’s redesigned site (launched February 2011). Furthermore, it has several compelling interactive elements: Intuitive navigation, bookmarking, and social sharing APIs additional content is unlocked by changing the orientation of the device, content is easily shareable, and entries to sweepstakes are solicited from readers within the app itself. Select product promotion tied to themes explored in each issue © L2 2012 L2ThinkTank.com 32 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius Multiplatform Brands in the Index struggle with multi-platform app development. Through the Priority Club Rewards app (shared with numerous sister brands), prospective guests can book rooms Discovery of 100+ properties at InterContinental properties on iOS, Android, BlackBerry, and Windows devices. InterContinental Hotels Group (IHG) produces seven additional apps for iOS, including the innovative Concierge Insider Guides. This iPad app provides exploration of more than Introduction to Resident Concierge with push to reservation system 120 global hotels. Each property has an introductory video from the resident concierge, insider tips, shopping and eating destinations, and an interactive map highlighting local points of interest. The app pushes users to check room availability and to make a Insider Tips pertaining to destination reservation through a web-based agent. These investments appear to be paying off. IHG’s revenues from mobile booking in 2011 are expected to exceed its previous forecast of $130 million (up from $38 million in 2010 and $2.5 million in 2009).21 Interactive map with which to plan travel itinerary 21. Karen Jacobs, “InterContinental sees mobile bookings sales rising,” Reuters, December 21, 2011. © L2 2012 L2ThinkTank.com 33 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius See the French Sites French beauty brand L’Occitane demonstrates several best practices across the Index. It remains the only beauty brand and one of only 19 brands in the Index with multiple language settings on its mobile site. The site’s persistent navigation and search L’Occitane’s simple but highly functional mobile homepage utility highlight L’Occitane’s commitment to m-commerce. During the 2011 holiday season, L’Occitane introduced a Gift Finder tool to help users determine appropriate gifts based on gender, ingredients, and price. In addition, L’Occitane was one of only seven brands to offer an FAQ section and one of only eight brands to offer feedback on mobile site functionality. Inclusion of email, Includes customer service, Facebook “Like” API, and links to social media Facebook “Like” and Tweet APIs allow users to share their favorite products. Robust gift-generating tool—introduced for the holiday 2011 season © L2 2012 L2ThinkTank.com 34 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ ferragamo.com main site with Flash elements Flash of Genius Tablet Rasa The vast majority of brand sites (91 percent) are viewable on Apple’s iPad tablet, which as of October 2011 accounts for 97 percent of all U.S. tablet impressions.22 Considerably few, however, have developed an iPad or Ferragamo’s iPad-specific experience replicates main site functionality tablet-optimized experience. Salvatore Ferragamo, which was criticized for not developing a mobile site in conjunction with its banner ads on the New York Times’ iPhone app last fall, has developed a robust iPad site that seamlessly reflects the aesthetic and most of the functionality of the fashion brand’s main, nonmobile site.23 Although that site is run with Adobe Flash, Ferragamo’s iPad offering looks, feels and acts like ferragamo.com. The former’s m-commerce experience mirrors the latter’s e-commerce experience, including a scrollthrough slideshow of related items on the bottom of each product page. 22. Terrence O’Brien, “iPad accounts for 97 percent of U.S. tablet traffic online,” Engadget, June 24, 2011. 23. Kayla Hutzler, “Ferragamo misses the mark with mobile New York Times ads,” Luxury Daily, September 26, 2011. © L2 2012 L2ThinkTank.com 35 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Westin’s “Wipe Away Your Weather” Campaign Flash of Genius “Wipe Away Your Weather” The market for mobile ads is quite fragmented. The total U.S. market in 2011 was a mere $630 million ($3.3 billion globally), albeit growing at 43 percent annually.24 Moreover, no single platform has established dominance, with the top three domestic players—Google, Millennial Media, and Apple—splitting 58 percent of mobile display ad revenue.25 This landscape affords broad opportunity for experimentation and innovation by brands. In October, Westin sponsored The Weather Channel’s redesigned 3D iPad app. Users could browse properties and book rooms without leaving the confines of the app.27 Most notably, the advertisement began by taking over the home screen with virtual bad weather to match local conditions (e.g, rain 24. Press Release, “Gartner Says Worldwide Mobile Advertising Revenue Forecast to Reach $3.3 Billion in 2011,” Gartner, June 16, 2011. or snow), then encouraged users to “Wipe Away Your Weather” to reveal appealing Westin getaways. 25. Emily Steel & Jessica Vascellaro, “A Rare Apple Compromise,” Wall Street Journal, December 13, 2011. 26. Rimma Kats, “Westin Hotels & Resorts bolsters mobile bookings via TWC iPad Sponsorship,” Mobile Commerce Daily, October 24, 2011. Weather Channel’s Redesigned iPad App © L2 2012 L2ThinkTank.com 36 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ Flash of Genius New and improved iPhone app launched August 30, 2011 Shoes About Town Bergdorf Goodman’s Today’s Shoe app has been around for two years—an eternity on the iTunes Store. In late August, the brand released the third version of the app, incorporating several requested features: sort by designer, shopping cart, and social sharing. While these features are welcome additions, the wider efforts of the digital team deserve equal praise. Instead of releasing the new and improved app in a vacuum, Bergdorf timed the upgrade to coincide with a parallel digital effort, all building up to the re-launch of the physical Shoe Salon on Two. On September 12, Blog post announcing app upgrade “Shoes About Town” powered by Instagram launched September 12, 2011 Bergdorf introduced the Instagram-powered Shoes About Town map, which displays user submitted, geo-tagged images of footwear over a stylized map of Manhattan. In this instance, Bergdorf demonstrated a mobile strategy that integrated disparate efforts, experimented with an emerging platform, and revitalized an aging asset. © L2 2012 L2ThinkTank.com 37 Want to know more about your brand’s Mobile IQ? CONTACT US Mobile IQ TEAM SCOTT GALLOWAY Clinical Professor of Marketing, NYU Stern Founder, L2 Scott is a Clinical Professor at the NYU Stern School of Business where he teaches brand strategy and luxury marketing and is the founder of L2, a think tank for prestige brands. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internet-based branded consumer gift retailer. In 1992, Scott founded Prophet, a brand strategy consultancy that employs more than 120 professionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forum’s “Global Leaders of Tomorrow,” which recognizes 100 individuals under the age of 40 “whose accomplishments have had impact on a global level.” Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, eco-America, and UC Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley. COLIN GILBERT L2 Colin is a strategic consultant with more than three years of experience working at the nexus of the public and private sectors. Serving as a principal at the Civitas Group in Washington, D.C., he helped lead research, advisory, and due-diligence engagements for a range of clients spanning technology start-ups, defense contractors, and government agencies and specialized in matters pertaining to cloud computing, cybersecurity, and online privacy. Colin received a B.A. in History from Stanford University and an M.P.A. from the London School of Economics. While completing his graduate studies abroad, he worked with Accenture to construct case material used to demonstrate the versatility of the firm’s Public Service Value (PSV) methodology. © L2 2012 L2ThinkTank.com Maureen Mullen L2 Maureen leads L2’s research and advisory practice where she helped develop the Digital IQ Index®. She has benchmarked the digital marketing, e-commerce, and social media efforts of more than 300 brands across pharma, auto, luxury, specialty retail, beauty, and the public sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. Before joining L2, Maureen was with Triage Consulting Group and led managed care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford University and an M.B.A. from NYU Stern. JON WEINBERG L2 Jon Weinberg began his career as a strategist and copywriter at The Moderns, a boutique Manhattan-based branding consultancy, where he worked with clients ranging from start-ups to Fortune 1000 corporations. While there, he managed digital strategy for both the firm and its clients. Jon received an A.B. in Government with a secondary in Near Eastern Language and Civilizations from Harvard University, where he served as an associate editor for the Harvard International Review. CHRISTINE PATTON L2 Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands. As creative director of L2, she leads the translation of the L2 brand across all touchpoints, with a particular focus on the visual packaging of L2’s research. She began her career at Cosí, where she developed the brand and oversaw its evolution from concept through growth to 100 restaurants. Since then she has provided creative direction for a wide array of clients, including the launch of Kidville and CosmoGIRL! magazine. Christine received a B.A. in Economics and Journalism from the University of Connecticut and an M.B.A from NYU Stern. Jessica Braga L2 Jessica, a freelance art director, specializes in identity, iconography, event graphics, and invitations. She began her career in fashion, designing textiles and prints at Elie Tahari’s studio in New York City, and then focused on the Elie Tahari brand aesthetic and consistency in design across its many developing disciplines. Desiring to explore other facets of design, she went on to become the art director of a small, prestigious design firm in Chelsea, where she focused on event graphics, digital and print collateral, and brand aesthetics for companies both large and small. Jessica holds a B.F.A. in Graphic Design, and an A.A.S. in Illustration from Rochester Institute of Technology. Aaron Bunge L2 Aaron is a freelance graphic designer who specializes in print design, branding and identity, packaging, and web design. His approach is both aesthetic and functional, characterized by clear, intelligent design appropriate to the project at hand. He began his career tailoring projects for the Chinese, Australian, and U.S. markets across multiple design disciplines and in multiple languages. Aaron has a B.F.A. in Graphic Design from Iowa State University. 38 UPCOMING EVENTS L2 Clinic Mobile L2 is a think tank for digital innovation. We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation. 01.19.12 New York City 01.24.12 Paris L2 Lunch Identifying Facebook Super Fans Resea r ch 02.23.12 New York City Digital IQ Index®: The definitive benchmark for online competence, Digital IQ Index® reports score brands against peers on more than 350 quantitative and qualitative data points, diagnosing their digital strengths and weaknesses. L2 Clinic Mobile in APAC 03.02.12 Shanghai EVENT S Forums: Big-picture thinking and game-changing innovations meet education and entertainment. L2 Lunch Google+ vs. Facebook The largest gatherings of prestige executives in North America. 03.06.12 Paris 300+ attendees Clinics: Executive education in a classroom setting with a balance of theory, tactics, and case studies. 120 –180 attendees UPCOMING Research Working Lunches: Members-only lunches led by digital thought leaders and academics. Digital IQ Index® Reports: Prestige 100® Reports: Topic immersion in a relaxed environment that encourages open discussion. Hospitality Brazil, Russia, India, China 40 – 80 attendees Broadcast Media Facebook IQ MBA Mashups: Access and introduction to digital marketing talent from top business schools. consultin g Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. Advisory work includes Digital Roadmaps, Social Media Strategy, and Site Optimization engagements. Magazines upcoming member benEfits Members Site: In the first quarter L2 will launch real-time tracking of digital MEM BE R SHIP For membership info and inquiries: membership@L2ThinkTank.com metrics (vs. peers). A Think Tank for DIGITAL INNOVATION 51 East 12th Street, 2nd Floor New York, NY 10003 W:L2ThinkTank.com E: info@L2ThinkTank.com © L2 2012 L2ThinkTank.com