Mobile commerce stats to remember in 2012

Transcription

CONTENTS
PAGE
3
PAGE
INTRODUCTION
Get ready for incredible mobile commerce strides in 2012
21
LEGAL/PRIVACY
Mobile commerce space will still face legal issues in 2012
By Rimma Kats
4
ADVERTISING
Mobile commerce-enabled advertising will build consumer loyalty
By Rimma Kats
23
MULTICHANNEL RETAIL SUPPORT
Mobile buoys retailers’ multichannel retail strategies
By Chantal Tode
6
ANALYTICS
Better use of analytics needed to understand mobile’s far-flung use
By Chantal Tode
25
MARKETING
Point-of-sale mobile commerce will become a reality in 2012
By Lauren Johnson
8
APPLICATIONS
Android strategy, monetization will be top-of-list for app developers
By Lauren Johnson
27
MUSIC
New competitors could heat up the mobile music industry
By Lauren Johnson
10
BANKING
Mobile banking’s role to grow as new features are introduced
By Chantal Tode
29
RESEARCH
By Rimma Kats
12
CARRIER NETWORKS
Wireless carriers need to provide more value in mobile commerce
By Chantal Tode
31
SEARCH
Local search and deals will take off in 2012
By Lauren Johnson
14
CONTENT
Mobile content is going to be largely transactional in 2012
By Rimma Kats
33 SOCIAL NETWORKS
Significant synergies will be gained from mobile social retail strategies
By Chantal Tode
16
DATABASE/CRM
Incentives will help grow mobile databases
By Rimma Kats
35
SOFTWARE AND TECHNOLOGY
New technology will guide mobile marketing in 2012
By Lauren Johnson
18
EMAIL
Email is the gateway to mobile commerce transactions
By Lauren Johnson
37
WEB SITE AND DEVELOPMENT
Having a mobile commerce-enabled site in 2012 will not be enough
By Rimma Kats
20
GAMING
Brand integration in mobile gaming will drive mcommerce
By Rimma Kats
Mickey Alam Khan
Editor in Chief
mickey@
napean.com
Rimma Kats
Staff Reporter
rimma@
mobilemarketer.com
Chantal Tode
Associate Editor
chantal@
mobilemarketer.com
Lauren Johnson
Editorial Assistant
lauren@
mobilemarketer.com
Jodie Solomon
Director, Ad Sales
ads@
mobilemarketer.com
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PAGE 2
Mobile Commerce Daily MOBILE COMMERCE OUTLOOK 2012
INTRODUCTION
Get ready for incredible mobile commerce strides in 2012
T
he mobile commerce landscape evolved tremendously in
2011, with retailers and brands increasingly using mobile
to drive online and in-store sales.
Although this will continue to be a common practice in
2012, retailers will likely place a larger focus on driving
mobile sales, specifically. Tactics such as more customer service on retail mobile sites and in applications through recommendations and other personalization features, and also
commerce-enabled mobile ads will help drive sales made
via mobile.
In 2012, mobile commerce sales will rise 73.1 percent for a
total of $11.6 billion, per eMarketer. The fast pace of mobile commerce growth is helping to drive overall ecommerce
growth by converting potential bricks-and-mortar sales to
digital sales for consumers using their smartphones while
shopping in-store.
Maturation in 2012
In 2012 mobile commerce will be more than just having a
mobile-optimized Web site and an app. Having a mobile
commerce strategy will mean pulling out all the stops –
SMS/MMS, mobile-commerce enabled advertising, mobile
coupons, using mobile social media to drive mobile sales,
the list can go on and on.
Mobile commerce will have a large focus on building loyalty and providing customer service in 2012. Retailers who
revamp their mobile strategies to include loyalty-building
tactics and customer service will definitely differentiate
themselves from competitors.
And that will be what will matter most in 2012. Mobile will
serve as a means to differentiate from competitors.
affect brands and retailers in 2012 as well. There will be the
few that try to resist. But, at the end of the day, it is something consumers are going to do and retailers need to find
ways to cope with this.
Another challenge in 2012 will be convincing everyone of
mobile commerce’s importance.
Twenty-seven percent of top U.S. retailers do not have a
mobile site, according to 2ergo. This number will decrease
drastically in 2012, as more retailers and brands jump on
board the mobile commerce bandwagon. However, there will
always be the non-believers.
Outlook 2012
Mobile Commerce Daily’s Mobile Commerce Outlook 2012
guide is designed to help retailers and marketers with their
mobile commerce strategies.
Articles from industry experts with tips, best practice and
case studies for mobile sites, apps, SMS, social media and
videos will help readers make tactical and strategy decisions
in an age when consumers expect a seamless shopping experience across channels.
Special thanks to Rimma Kats for her excellent layout and
art direction.
Thank you to editor in chief Mickey Alam Khan for his
guidance in organizing and editing this document. And
thank you to writers Chantal Tode, Rimma Kats and Lauren
Johnson and all of the companies they interviewed contributing to this one-of-a-kind educational resource. Read every
page and create a new chapter in your organization’s mobile
commerce efforts.
Challenges lie ahead
Of course, mobile commerce will face its challenges in 2012.
For example, privacy and security will be big issues in 2012
for mobile commerce.
However, an MEF study found that 25 percent of United
States consumers will make mobile payments if they trust
the device’s security. Building this trust will be big in 2012.
Mobile price comparison apps and services will continue to
PAGE 3
ADVERTISING
Mobile commerce-enabled advertising will build consumer loyalty
By Rimma Kats
M
obile advertising will continue to grow in 2012
but, as retailers and brands start to learn that
mobile is actionable in a way that standard advertising is not, they will increasingly seek to tap innovative ways to commerce-enable their ads through QR
codes, NFC, SMS, social media or email.
Brands and marketers are adding a commerce element to
their mobile advertising initiatives. Instead of just linking
a mobile ad to a video or static page, companies are taking consumers to their mobile commerce-enabled sites
where they can complete transactions.
“Mobile commerce has arrived on the scene in a big way,
allowing the calculation of mobile campaign success
based not only on click-throughs, but based on tracked
online or in-store incremental conversions,” said Wilson Kerr, director of business development and sales at
Unbound Commerce, Boston.
“As retailers and brands mobile-optimize their sites, they
will seek to tie-in mobile marketing, as a driver of traffic to these sites,” he said. “By linking mobile marketing
to incremental sales converted via tracked mobile commerce, smart brands will start tap into the true power
of mobile.
“Social media will continue to play a big role in 2012,
as most companies are already sending tweets and
Facebook updates accessed every day on mobile de- tity of mobile advertising as it becomes mainstream for
vices. If the links on these touchpoints are not driv- brands and agencies.
ing consumers to a mobile-optimized version of
their site.”
Mobile advertising will be used more frequently to generate brand awareness and loyalty as well as to drive
Effectiveness
transactions and product purchases.
Mobile marketers should think beyond simple branding
and link mobile marketing with tracked, proven results “Even today, mobile advertising is fast becoming a prov– in the form of mobile commerce transactions such en and effective alternative as well as complement to
as ROI.
traditional mass media channels for audience segmentation and reach, especially when tied to targeting loSmartphone and connected-device penetration rates and cation-based commerce activities where immediacy and
3G/4G network deployments are on the rise and 2012 simplified or aided shopping experiences can be enabled
will continue to see changes in the quality and quan- through mobile,” said Kevin McGuire, vice president of
PAGE 4
product for Motricity, Bellevue, WA.
completion of tractions, not unlike the early days of
the Web.
“Despite the ability to complete commerce transactions
on mobile devices, issues real and perceived still exist However, even removing all points of friction does
around ease of use, privacy and transaction integrity,” not mean every consumer will embrace mobile
for commerce.
he said.
“For instance, entering credit card information on a small
screen and context constraints such as consumers using
their device in public are examples of where some friction for completing commerce transactions will always
exist, even in 2012.”
Driving loyalty
The most successful commerce campaigns in 2012 will
continue to leverage online and retail channels for the
Marketers would be well served to design thoughtful
mobile campaigns that leverage existing and familiar
commerce channels.
“In terms of opportunity, there is great potential with
developing location-based services that enable geotargeted advertising which could be a huge driver of commerce in 2012,” Mr. McGuire said.
“The size and quality of the mobile audience will be substantially larger in 2012 than 2011,” he said. “Consumers
are becoming more familiar and comfortable using their
phones and devices for more than making calls, browsing
the web or downloading applications.
“Smartphones and connected devices like iPads and tablets are driving much of the mobile advertising ecosystem growth both with brands and agencies.”
The increased ability to get substantial and targeted audience reach from mobile will be easier in 2012 than
2011 as the mobile advertising ecosystem continues to
grow and thrive.
More importantly, smart and connected devices are
generating a lot of traffic, and are increasingly used at
all times throughout the day, both in and around our
workplaces, at home in front of the TV or relaxing in the
evening, and while consumers are on the go shopping,
commuting, or running errands.
“The key to any successful mobile advertising campaign
is to understand what the success metrics are and who
the target audience is,” Mr. McGuire said.
“Furthermore, marketers need to understand what consumers are actually doing with their mobile devices today within the context of commerce,” he said.
PAGE 5
ANALYTICS
Better use of analytics needed to understand mobile’s far-flung use
By Chantal Tode
C
onsumers increasingly use mobile to watch movies, look for a restaurant, engage in various shopping behaviors and make purchases. As a result,
mobile has the potential to become the new way to
measure customer behavior – once marketers gain a better understanding of how to measure mobile.
This was the year that many retailers put mobile strategies into place. In 2012, the pressure will be on to take
their efforts to the next stage by integrating mobile into
cross-channel efforts and not treat mobile as a standalone channel but, to do this, marketers need better
analytics.
said Mike Ricci, vice president of mobile for Webtrends,
Portland, OR. “Understanding the behavior of a given
consumer across all these mediums is critical because
it’s what separates the Best of Breed mobile commerce
providers from the others.
“The larger players in the ecommerce space that have
jumped into mobile commerce understand this is vital,
but others are continuing to rely on solutions that create
even more data silos and fail to understand how this consumer engages with us across all key mediums,” he said.
Table stakes
With the significant growth in mobile in 2011, retailers
“Retailers still struggle to implement solutions that are understand the need to be able to analyze their efforts in
integrated and help fuel insights across digital channels,” mobile so they can fine-tune campaigns and gain a better understanding of how shoppers use mobile.
Expect mobile commerce players to borrow from the
ecommerce playbook when it comes to how to best use
analytics to drive results for mobile Web browsing.
“We think that segmentation, optimization and targeting
will be vital new weapons to mobile commerce providers
and help elevate the maturity of this channel,” Mr. Ricci
said. “In ecommerce, segmentation and site optimization
are table stakes and we believe they will be in the mobile
commerce space as well.”
Mobile retailers will move beyond simple analytics software to address their mobile measurement needs and
look to bring in experienced personnel that can decipher
the findings and act on them.
There will also be a focus in 2012 on helping marketers
break down silos between channels and using the data to
help optimize and target integrated campaigns that use
mobile as one of the channels.
“In general, if your budget only allows for either analysts
or analytics software, choose analysts every time,” said
Josh Himwich, vice president of ecommerce solutions at
PAGE 6
Quidsi, New York.
Online retailer Quidsi is parent of Diapers.com, Soap.com
and BeautyBar.com.
“Most companies I know have amazing tools, but only a
small handful of people are using these tools in interesting ways,” he said.
“To that end, we’re hiring at the end of this year a person to take deep dives into the metrics of how our customers use our Web sites. This hire will be specifically
looking at the way the analytics tell a story about the
customer experience.”
ging, which retailers will be taking a closer look at
in 2012.
Mobile retailers even have several different applications that they use as engagement, marketing
and customer retention tools, further complicating
the matter. One relatively simple solution to tracking mobile app use is to implement user event tag-
“The less your business is about quick, low-consideration
purchases, the lower your mobile conversion rate,” Mr.
Himwich said. “Thus to justify the time, expense and
opportunity costs, it’s important to think about how to
measure this up front.
“For 2012, a wonderful resolution would be to add user
event tagging – which all analytics software offer, even
Google – and gain a much better understand of how your
Event tagging
customers are actually interacting with your app,” Mr.
While 2011 was the year that many retailers introduced Himwich said. “What do they love? What do they never
mobile applications, most still do not know a lot about use? What keeps them coming back?”
how customers are interacting with the app. This is because mobile applications often require their own set of Of course, many also want to understand how mobile
analytics solutions.
works in the overall sales equation.
PAGE 7
APPLICATIONS
Android strategy, monetization will be top-of-list for app developers
By Lauren Johnson
M
obile experts agree that in 2012, the Android
operating system will see a major upswing in
consumer adoption and has the potential to be
a serious threat to Apple’s iOS.
Mobile application developers will need to take note and
spend time and money to develop Android apps. Monetization will also continue to be an issue as the industry
continues to struggle with creating solid revenue models.
“The main question for everyone in mobile right now is
figuring out their Android strategy and how they can avoid
fragmentation,” said Simon Buckingham, CEO of Appitalism, New York. “2012 is all about piggy backing a company’s apps to be available on every distribution channel.
Mobile appetite
Android ownership increased sharply in 2011, but many
brands and companies still see iOS as the first place to
develop apps.
However, according to Mr. Buckingham, Android devices claim 60 percent of the market and Apple rakes
in 25 percent, showing the opportunities that Android
offers marketers.
In the past, many companies have taken an Android-first
strategy with apps because it is believed that Google’s
approval process is shorter and easier than Apple’s,
which often results in a poorly-planned mobile strategy
with apps rushed to the marketplace.
Additionally, Google’s proposed purchase of Motorola
this year is expected to escalate in 2012 and shows how
Google is slowly building up its mobile presence to become the No. 1 force in the industry.
“For Microsoft, mobile is a means to get back to the
PC,” he said. “As long as they continue to believe that
a mobile phone is just an accessory, it will continue to
constrain them.”
HTML5 will also play a large role in 2012 with more
app developers depending on new techniques to
replicate their content while still keeping a high
user experience. However, HTML5 still needs to be
“Microsoft has really underachieved with their perfor- fully worked out before it can be readily accepted
mance on the Windows Phone 7,” Mr. Buckingham said. by developers.
Marketers have also kept their eyes peeled this year with
the Windows 7 phone, but based on 2011, the device will
lose steam and not be a serious threat in 2012.
PAGE 8
“Mobile commerce and the technology that supports it will
become more robust allowing app publishers to experiment with even better ways of earning revenue,” he said.
The Polar Mobile executive agrees that fragmentation
will continue to be an issue and unequal standard for
brands and publishers.
Similarly, Mr. Rodrigues believes that HTML5 has the potential to be the saving grace for developers looking for
cross-platform solutions.
More importantly than anything, brands need to understand that the mobile app industry moves quickly and
marketers need to be willing to experiment and take risks
in the space, per Mr. Rodrigues.
“Mobile apps and the mobile Web will coexist for many
years to come, and a successful strategy will be use both
of these mediums as part of a complete mobile strategy,”
Mr. Rodrigues said.
“As a brand, you don’t want to build everything for multiple platforms and Web apps are inevitable to reduce
complexity and make mobile bigger, but the standards
for it are not quite finished yet,” Mr. Buckingham said.
Monetize this
Monetization will continue to be a problem for the mobile industry across the board in 2012.
“The model completely flipped in 2011 where apps were
making more meaningful revenue from a freemium model rather than advertising at the end of the year,” said
Marlon Rodrigues, director of business alliances at Polar
Mobile, Toronto.
PAGE 9
BANKING
Mobile banking’s role to grow as new features are introduced
By Chantal Tode
T
here is no doubt that 2011 was the year that many
financial institutions put the building blocks in
place for their mobile strategies by introducing
customers to mobile banking applications and mobile
banking sites.
and head of the retail mobile channel at Wells Fargo’s
Internet Services Group, San Francisco. “Mobile designs
for new efforts are a priority.
“Wells Fargo has nearly 7 million active mobile customers, and mobile channel usage continues to grow at a
rapid pace,” he said. “As we develop new products and
services, we continue to listen to our customers to set
priorities and determine the mobilization of existing
online features.
In 2012, banks will introduce new mobile features and
give mobile a bigger role in their overall strategy, driven
in part by the fast pace at which consumers are embracing mobile banking. Another influencing factor will
be how mobile transforms the way financial institutions
“Mobile is no longer the sole domain of a small team
think about online functionality.
within the bank; it is transforming the way we think
“More and more functionality is being extended to the about delivering online functionality.”
mobile channel,” said Brian Pearce, senior vice president
Taking the plunge
Wells Fargo is a leader in the mobile banking space with
a strategy that includes a Rapid Alerts service, mobile
site, smartphone applications and a text service.
In 2012, it will not only be large financial institutions
such as Wells Fargo that embrace mobile banking more
fully. Expect to also see medium-sized and smaller financial institutions look to introduce mobile or take it to the
next level.
While mobile banking has been widely accepted in the
financial services industry, there are still some holdouts
and 2012 could be the year that sees these remaining
institutions take the plunge.
Mobile banking growth continues to accelerate,” said
Drew Sievers, CEO of mFoundry, Larkspur, CA. “MFoundry
is now signing more than one new client per day and the
pace isn’t slowing.
“Out of 14,000 financial institutions, there are probably still between 10,000 and 12,000 who have not yet
made their partner selection,” he said. “Over the next
24 months, you’ll see a huge chunk of those remaining
10,000+ financial institutions launching their solutions it’s a big opportunity.
PAGE 10
For example, Wells Fargo
is piloting a mobile payments solution called
Visa microSD that lets
select customers in San
Francisco pay for their
purchases via the Wells
Fargo banking app via
NFC technology.
However, because of the
complexity of the mobile
payments space, one of
the challenges banks face
in 2012 is figuring out
what role to play here.
“User adoption is also growing at a furious pace, with
double digit sequential monthly growth now common.
“From a utility perspective, mobile banking
will continue to evolve
as new features like P2P payments and offer issuance
get launched throughout the year,” mFoundry’s Mr.
Sievers said.
Innovative features
The focus for many banks will be on introducing new “New contactless payments offered from companies like
features that simplify banking while taking advantage of Google and ISIS will drive more aggressive activity in the
NFC space, forcing integration strategies for all mobile
mobile-specific functionality.
banking vendors,” he said. “Exactly how all these dispa“As we look at our 2012 mobile channel roadmap, we’re rate pieces fit together is a key challenge for the 2012focused on efforts that are mobile unique,” Wells Fargo’s 2013 time frame.”
Mr. Pearce said.
“Customers are asking for features that take advantage
of the amazing capabilities of their mobile devices,” he
said. “Wells Fargo is moving beyond the basic building
blocks of account management and bill pay, and into innovative new areas.
“We’ll continue to focus on simplifying our customers’ financial lives by delivering features and functionality that
enable them to conveniently, securely and simply bank
anytime, anywhere.”
Some of the new features that are likely to be brought to
mobile banking in 2012 include peer-to-peer payments,
NFC integration and remote deposit capture.
PAGE 11
CARRIER NETWORKS
Wireless carriers need to provide more value in mobile commerce
By Chantal Tode
W
ireless carriers need to embrace mobile payments and mobile commerce in a bigger way
in order to help drive consumer and retail
adoption in 2012. This includes leveraging their assets to
provide unique solutions for consumers.
“Carriers have to be seen as partners and innovators, not
as leeches or, perhaps worse, completely irrelevant.”
NFC emerges
Mobile payments are expected to grow significantly next
year and the number of phones in the market with embedded NFC technology rises. Wireless carriers may be
watching how consumers and retailers embrace mobile
payments before making a bigger splash here.
Several trends will impact wireless carriers next year including mobile payments, location-based services and
the need for more spectrum as mobile data usage continues to grow. Wireless carriers will continue to roll out
faster 4G networks to enhance the customer experience A few of the biggest wireless carriers have shown their
and open up new marketing opportunities.
interest in being part of this space via the mobile wallet Isis – which is a joint venture of Verizon, AT&T
“If carriers are to participate in the mobile commerce and T-Mobile.
value chain, they need to provide more value than just
being the network over which the commerce will occur,” However, with Verizon not making Google Wallet availsaid Duane Edwards, cofounder and senior vice president able on its Samsung Galaxy Nexus phones, the stage is
of product development for Globys, Seattle.
set for competition to heat up significantly in 2012.
“To do this they need to provide cloud solutions – solutions that leverage unique carrier assets such as customer
insights, location and billing – to the mobile commerce
ecosystem that facilitate and stimulate commerce,”
he said.
PAGE 12
“NFC emerges in a commercial setting, providing customers with an easy way to check in, receive discounts and
other communications from merchants, and ultimately
complete ‘tap and go’ secure payments with ISIS,” said
Colson Hillier, executive director of marketing at Verizon
Wireless, Basking Ridge, NJ.
“We are focused on improving the ability to establish
consumer and merchant identity, and manage fraud
risks,” Mr. Hillier said.
The fallout from AT&T’s failed merger with T-Mobile USA
last year will be felt in 2012 as all carriers – not just
AT&T and T-Mobile – look for ways to acquire more spec- “These improvements will result in a simplified purchase
trum without running afoul of the same regulators who flow through mobile devices and services,” he said.
doomed the AT&T deal.
With expectations that mobile commerce and payments
Whether this activity will take the form of acquisitions will continue to increase as smartphone adoption grows
and consumers become more comfortable with the
or strategic partnerships remains to be seen.
unique capabilities of the phone, wireless carriers will
Carriers are also investing more heavily in location-based be paying close attention to their role in enabling mobile
services platforms. While the investments are being driv- commerce next year.
en primarily by government mandates around locating
emergency calls, the move could present new opportuni- “We expect to see big increases in the number of merchants who are building customer experiences around
ties for marketers.
mobile transactions,” Mr. Hillier said.
“Location services become more pervasive in providing
context and relevancy to the offers to consumers,” Mr. “This will feed a deeper penetration of individuals using
mobile phones for purchases, and build a regular pattern
Hillier said.
of mobile purchases,” he said.
Critical mass
Another focus for carriers in 2012 will be on putting in “This deeper penetration and frequency of mobile purplace the safeguards to ensure mobile transactions via chases will, in turn, increase the number of merchants
willing to try mobile commerce.”
their networks are secure.
PAGE 13
CONTENT
Mobile content is going to be largely transactional in 2012
By Rimma Kats
M
obile content is going to be largely transac- Bornstein said. “The user experience will improve.
tional in 2012 with more retailers rolling out
mobile applications and engaging consumers “Companies need to find their secret sauce – how can
you use mobile to really improve your customer experiwith their products.
ence and see what the killer app for your business is,”
Brands such as Sephora have been ramping up their mo- she said.
bile commerce strategies over the past year. Rolling out
a mobile application just is not enough these days and In 2012, mobile is going to continue to push the boundbrands and marketers need to make sure that the con- aries of the consumer purchase experience, with more
consumers beginning to frequently purchase via various
tent is not only engaging, but functional as well.
mobile applications and services.
“Our outlook for mobile commerce content in 2012 is
very positive,” said Julie Bornstein, senior vice president “Square is already changing the game in this space and
of Sephora Direct, New York. “Mobile commerce will many more transactions will follow suit,” said Sarah Paycontinue to grow and the user experience will improve. ton, principle at Payton & Company, New York.
“The challenges we expect next year revolve around
the execution,” she said. “The ideas are there for the
next year.
“Content is going to continue to evolve just like within
all other mediums,” she said.
“In 2012, there will be more players in the mix,” Ms.
“Often the mobile user experience is far inferior to the
“Taking gamification and gaming out of the equation,
“Beyond 2012, the challenges are staying ahead of the brands who push content through mobile will be forced
to provide a more unique value or utility-driven experipack in innovation.”
ence to get mass consumer adoption as the landscape
continues to become more and more saturated.”
Mobile content
Sephora has been ramping up its mobile strategy in 2011.
The company unveiled its mobile site and application in Big opportunity
One of the biggest opportunities with mobile content is
2011 and in 2011 Sephora rolled out an iPad app.
that it facilitates the transaction and connects the conThe fully-integrated commerce-enabled iPad app lets sumer during those key moments of consideration during
consumers shop its beauty products in a magazine- the rapidly expanding purchase cycle.
like format.
If mobile content providers can enrich the purchase exThe Sephora app features up-to-the minute beauty news perience with better content then they will win.
and information from Sephora’s Facebook and Twitter
feeds, its BeautyTalk community, as well as the compa- “One of the interesting challenges for 2012 that I’m
looking forward to watching unfold is the monetization
ny’s revamped YouTube channel.
of the mobile audience and how companies and brands
The company is continuing to test out the mobile address this,” Ms. Payton said. “Most social applications
commerce waters and see what else will work for its and networks have a significant mobile audience that
can’t be ignored.
overall strategy.
PAGE 14
experience online, hopefully they’ll start to address that,”
she said. “Facebook is finally beginning mobile advertising in 2012 and how they approach this and build scale
will be interesting if done well it could be game changing for them since so much traffic pushes through the
mobile interface.
specifically for mobile consumption or simply repurposed?,” Ms. Payton said. “In order to build scale
within the mobile environment, just like any other,
the strategy has to directly answer an unmet need
or provide a level of unique value that simply cannot
be ignored.
“Foursquare will likely begin to seek revenue from their
thousands of local businesses signed up on the network
and how they approach that is essential to the long-term
platform vision.”
“I’d encourage marketers to not get distracted by the
bright shiny objects in the marketplace, but to ensure
that they’re activating within mobile with purpose,”
she said.
According to Ms. Payton, marketers should create
content with distribution in mind.
“Also, perhaps most importantly, for most target audiences and demographics, all digital experiences should
be built with mobile in mind and should be accessible
“How will the audience be built? Is the content made within mobile. This isn’t innovative, this is a given.”
PAGE 15
DATABASE/CRM
Incentives will help grow mobile databases
By Rimma Kats
A
s purveyors of various mobile tactics strive for
market share, a differentiating factor will be the
data they can provide. Information that can be
integrated easily into existing databases and contribute
to the highly-sought-after 360-degree view of the customer will deliver a competitive advantage.
Indeed, 2012 will be a year of clarity, integration and
standardization. Marketers and executives alike want to
see dashboards that present a clear view of all digital
interactions – email, mobile, social and mobile Web sites.
“We need to harvest the myriad data flows to produce
actionable insights,” said Melinda Krueger, senior marketing consultant at ExactTarget, Indianapolis, IN.
“The challenge for mobile CRM is connecting the dots to
understand the full range of customer interactions and
gauge the success of various tactics in order to prioritize
marketing spend,” she said. “Mobile tactics deliver lots
of great data, but most of it is anonymous – it cannot be
linked to an individual.
“As the most personal marketing channel, mobile content must be timely and relevant, which in turn requires an understanding of the customer’s behavior
and preferences.
Growth of mobile
Many companies are using mobile to build their mobile
database.
Old Navy.
In doing so, brands such as the Gap are offering consum- Personal information
ers an incentive, such as discounts, when they opt-in for According to Ms. Krueger, marketers need to find the
example.
balance between obtaining and linking personal information and intruding on personal privacy.
Recently, Gap expanded its Gap Mobile4U program to
deliver personalized real-time location-based discounts “The other challenge is evaluate ROI without being a
for the holidays and throughout the year.
slave to it,” Ms. Krueger said. “There is no one interaction
that leads to conversion.
The company is working with Visa on the mobile initiative.
“Executives must allocate budget dollars, but mobile inIn addition to its Gap Mobile4U program, Gap is also de- novators need to adopt what Forrester refers to as “an
livering offers and promotions for Banana Republic and experimental mindset,” she said. “Balancing the known
PAGE 16
results that set the bar for success.
“You have to use program data to evaluate the user experience,” Ms. Krueger said. “Monitor your quit rates to
see which mobile efforts result in stop requests, uninstalls and site abandons.
“Split test offers and timing to see what resonates with
your customers,” she said. “Also, don’t make personal
data acquisition the focus of your programs.
“A mobile experience should have a great payoff, not deliver the customer to a form to fill out.”
Brands and marketers should also consider the
value exchange.
“Customers will give up personal information in exhange
for something of value,” Ms. Krueger said. “Why should
they share PII with you? Provide something of value - a
whitepaper, a discount, a charitable donation.
“Keep the exchange simple and focused,” she said. “Don’t
ask for anything that can’t be applied to improve your
marketing efforts.”
Integration
Ms. Krueger also suggests that companies create
integration points.
It is important to offer cross-platform sign-ups that connect the dots among subscribers, fans and followers.
“Capturing and matching up source codes, cookies,
phone numbers and email addresses will allow you to
identify customers across channels,” Ms. Krueger said.
“Be comfortable with uncertainty.
with the unknown, and the budget with the big idea, will
be a hallmark of successful mobile marketers in 2012.”
“Steve Jobs advised us to trust in intuition,” she said.
“Deliver great customer experiences, gather data withWhile agency-side marketers denounce the idea of in- out being intrusive, provide value in exchange for PII and
dustry standards, client-side marketers will continue to integrate mobile data with your other digital efforts.
request them.
“While you may not have all the answers today, you’ll
In 2012, brands and marketers will see increased efforts build a solid foundation that will serve your mobile marto standardize metrics for mobile tactics and published keting needs tomorrow.”
PAGE 17
EMAIL
Email is the gateway to mobile commerce transactions
By Lauren Johnson
E
mail is one of the most popular and growing trends Additionally, because mobile devices serve as a commuin mobile, with consumers increasingly choosing to nication tool with multiple messages coming from difread their email on a mobile device instead of on ferent channels, it can be hard for a brand to make an
a PC.
email message stand out with other mobile notifications
bombarding consumers, including SMS, push notificaThe number of email opens on mobile devices leaves tions and other messaging tools.
marketers with the tools to segment and target consumers based on their email habits. However, 2012 will be a “While we don’t anticipate email going the way of the
crucial year, with more opportunities to tie mobile email telegram, we do realistically acknowledge the effect that
with commerce.
a converged messaging environment has on people’s
ability to filter through messages,” Mr. Lawson said.
“What we see coming more and more to the fore is the
capability and the comfort level of consumers today to “People are thinking less that ‘I’m reading an email comactually transact via mobile device,” said Dave Lawson,
director of mobile engagement at Knotice, Akron, OH.
“So you have an existing behavior that has huge scale
and a growing capability and willingness to transact on
these devices,” he said.
“That is a very compelling formula for recognizing an
under-served population you already maintain a direct
marketing relationship with.”
Cluttered space
According to Mr. Lawson, mobile marketers have an opportunity to use data from devices to drive relevant,
targeted commerce actions in 2012.
However, in order to be successful, companies need to
think beyond open rates. It is equally important to create
a full mobile experience, including optimized pages and
straight forward calls-to-action.
Finding an email marketing strategy that is effective in
getting consumers to open their messages is challenging, and mobile adds another level because users are less
likely to spend time filtering through their email.
Instead, they are looking to quickly browse their messages and will not wait for images and other rich features to
load on their mobile device.
PAGE 18
munication on my phone from a brand I have a relationship with’ and more ‘I see a message addressed to me, is
this something I can use right now?’” he said.
Opening key
Although smartphones and tablets both have high email
engagement, tablets trump in mobile devices when it
comes to email consumption.
According to results from a study from email marketing company Return Path, mobile email consumption
increased 34 percent from October 2010 to March 2011
and is expected to continue to increase in 2011.
“Email is the easiest marketing platform to get into that of if a person is on their desktop or mobile device,” said
can be quickly adjusted and reach everyone regardless Tom Sather, director of professional services at Return
Path, New York.
“Additionally, if you know where your readers are viewing your email, you can fine-tune the message to match
their behavior,” he said.
2012 will be all about presentation and adding digital
features to email, especially with HTML5, per the Return
Path executive.
HTML5 is expected to be a hot issue in mobile in 2012
in multiple channels but it will play an especially-important role in email marketing.
With Adobe ending its Flash feature, brands and
companies will need to think about new ways to
roll out video, photo and other elements that keep
users engaged.
By using HTML5 in emails, marketers will be able to standardize their message across all mobile platforms.
“As more mobile devices adapt HTML5 and include video
with email, you will see an increase in purchases,” Mr.
Sather said.
“It’s important to figure out where subscribers are
reading their email and then devote and time and
energy to make great content on that platform,”
he said.
PAGE 19
GAMING
Brand integration in mobile gaming will drive mcommerce
By Rimma Kats
B
rands and marketers are seeing the potential of using mobile games to reach a broader audience and
companies such as HSN are bridging the virtual
and real-time world together.
While 2011 was a successful year for gaming – companies such as McDonald’s, Pizza Hut and HSN incorporated their brand into mobile games, 2012 will bring
in more opportunities. Partnerships with mobile gaming companies will prove to be an effective way to drive
user engagement.
“In 2012 we will thoughtfully pursue and participate in
mobile gaming opportunities that are a good fit with
the HSN brand in order to extend our brand presence
and reach a new audience that doesn’t know our story,” said Jill Braff, executive vice president of digital
commerce at HSN, San Francisco.
Marrying mcommerce with gaming helps brands further
build a relationship with consumers. The mobile gaming world must deliver quality entertainment that is truly
engaging and let companies introduce their personalities
and products to users.
Play first
HSN teamed up with PlayFirst for the Cooking Dash application that incorporates chef Emeril Lagasse’s cookware and kitchen electrics line and lets players buy the
products without leaving the app.
“With NFC, better processors and voice recognition coming to mobile devices, the possibilities on the gaming
platform with social interaction is endless,” he said.
Socially mobile
“Combining our mobile shopping experience and casual 2012 is going to be the year where mobile social games
games is a natural progression for our consumer - she and social networks start to break into the mainstream.
loves both,” she said.
“I don’t think games on mobile have truly become social
“We want to further differentiate the HSN shopping ex- between players and devices, and 2012 is the year where
perience by bringing together content and commerce in publishers and developers begin to crack the code,” said
a fun and innovative way.”
Chris Cunningham, cofounder/CEO of appssavvy, New York.
In 2012, publishers and developers will have to find a
way to maximize the revenue they drive from their
The Cooking Dash app includes a new restaurant venue apps and fine-tune micro-transaction strategies and
called “HSN Cooks with Emeril” that lets players inter- ad-supported models.
act with virtual representations of his cookware and
kitchen electrics line, and buy the real products via the One of the biggest challenges will be for a developer to
mobile game.
form a seamless layer between location-based games
and social platforms on the Web and mobile.
A partnership such as that is an ideal way to not only
engage users, but also add a commerce element to the “Location-aware multi-user games are the next big
mobile mix.
thing,” Mr. Cunningham said.
PAGE 20
LEGAL/PRIVACY
Mobile commerce space will still face legal issues in 2012
By Rimma Kats
A
lthough it is easy for brands and marketers to focus on the virtually unlimited possibilities that
mobile technology offers, they also need to keep
in mind that various laws place limits on what they can
do in the mobile space.
Unfortunately, because the laws were written long before the technology, it is not always easy to identify the
legal boundaries. Accordingly, there has been a number
of legal challenges to mobile campaigns in recent years
and industry experts expect those to continue in 2012
as well.
“The improvements in mobile device technology, networks and mobile sites have created an environment in
which it is continuously getting easier for consumers to
interact with companies and make purchases on their
mobile devices,” said Gonzalo E. Mon, an attorney at Kelley Drye & Warren LLP, Washington.
“It’s no surprise, then, that mobile commerce has
grown significantly in recent years,” he said. “Although different analysts predict different growth targets for 2012, they all agree that this growth trend
will continue.”
All about privacy
From a legal perspective, the biggest issues in the mobile
space in 2011 had to do with privacy.
The way companies collect and
share information through mobile apps has been the focus
of several Federal Trade Commission investigations, Congressional hearings, proposed
federal legislation and at least
10 class-action lawsuits, per
Mr. Mon.
“The legislation and many of
the class-action lawsuits are
still pending, and that creates
a lot of uncertainty for mobile
marketers,” Mr. Mon said.
“It’s possible that we will see
some legislation or regulations
enacted in 2012,” he said. “Unfortunately, it’s likely that will
mean that the industry will be
subject to new restrictions that
aren’t currently in place.
“On the positive side, though,
marketers may have more clarity about what they can and
PAGE 21
cannot do in the mobile space.”
“There has been a lot of legal activity in 2011, and most
of the activity has yet to be resolved – it’s likely that
While federal action is pending, some groups, such as some of the pending cases will be decided and that there
the Mobile Marketing Association, have stepped in with will be some new regulations or, at least, best practices.
helpful guidelines for the industry.
Therefore, the legal landscape is likely going to change
over the next several months. Marketers need to make
Undoubtedly, as technology improves, marketers will sure they adjust accordingly.”
continue to find new opportunities to interact with consumers on mobile devices.
Mobile commerce will continue to grow as an important channel for marketers, but at the same time the
For example, new device technology, better operating space still faces new challenges from legislators and
systems, and better mobile sites will make it easier for government regulators.
consumers to make purchases on their phones. Locationbased technology will continue to let marketers present “Marketers must recognize that despite the advances in
more targeted offers.
new technology, traditional advertising laws apply,” said
Andy Lustigman, partner at Olshan Grundman Frome
Additionally, many of the experiments with mobile pay- Rosenzweig & Wolosky LLP.
ments such as NFC and Google Wallet will likely be expanded in 2012.
“This includes the obligation to provide meaningful disclosures and to obtain affirmative consent,” Mr.
“Although consumers are excited about the possibili- Lustigman said.
ties offered by these new technologies, some consumer
groups and regulators are simultaneously concerned “Marketers must also recognize that consumers and
about the risks, particularly when it comes to the collec- regulators treat mobile devices different than other
tion and use of personal data,” Mr. Mon said.
marketing channels,” he said. “They are much less receptive to advertising messages that have not been
“These concerns have led to bills and lawsuits that are specifically requested.”
currently pending,” he said. “Companies may find it difficult to assess risks amongst so much uncertainty.”
“Marketers must also be very conscious of well meaning
federal and state legislative developments designed to
Consumer data
protect consumers but may have overbroad implications
Privacy is a big issue and marketers need to pay at- at restricting lawful commerce that consumers want
tention to how they collect and use information to utilize.”
from consumers.
“In my opinion, the two most important words to remember are ‘disclosure’ and ‘consent,’ Mr. Mon said.
“Companies need to clearly disclose the terms of their
offers and their privacy practices.
“In some cases – particularly when it comes to the collection of potentially sensitive information, such as LBS
data – companies should also get consent from consumers up-front,” he said. “The other recommendation
for marketers is that they should pay close attention to
legal developments.
PAGE 22
MULTICHANNEL RETAIL SUPPORT
Mobile buoys retailers’ multichannel retail strategies
By Chantal Tode
A
s mobile phones get faster and smartphone penetration continues to grow, mobile will take on a
more meaningful and larger role in helping retailers support their multichannel strategies in 2012.
Multichannel retailers are always looking for ways to
support the shopping activities of their customers, who
increasingly are looking for access to a retailer when and
where they want. This is one reason why mobile’s ability
to enable engagement with retailers when customers are
on the go, in the store or sitting on a couch will make it
a critical tool for retailers next year.
“Mobile retailing serves as another point of communication in which we can interact with customers, gain
feedback and offer suggested products for purchase that
they may need for their everyday lives to help our customers have rewarding experiences while they’re at our
stores,” said Imran Jooma, president of ecommerce at
Sears Holdings, Hoffman Estates, IL.
“Sears is all about creating a positive, fun and rewarding
shopping experience for our customers,” he said. “Mobile
offers many functions beyond just listing available products, and we’re leading the next wave of shopping innovation by offering the latest mobile apps and location
technologies to help our customers get the best deals
while they’re at our stores.”
The bridge
The way that Sears leverages mobile to simplify
shopping and provide instant gratification is something that more retailers will be looking to do
next year.
fit different customers’ needs and lifestyles, and Sears
uses the best parts of Web technology, mobile and even
traditional elements in an effort to offer customers the
ability to shop their way,” Mr. Jooma said.
For example, Sears rolled out Wi-Fi capabilities in its
stores so associates can help customers check available
inventory, order products online, access product information and videos as well as so customers can access
apps and browse the Web while in stores.
“Simple interfaces with easy-to-navigate tools create
a more enjoyable mobile shopping experience,” he said.
“We always find solutions to connect the in-store and
online experience through mobile that customers can
navigate easily.
“Web and mobile technology enable more options that
Many retailers started the initial work in mobile in 2011
PAGE 23
and next year will see a broader set of mobile practices
become available to address shoppers’ needs.
For video game multichannel retailer Gamestop, the
growing numbers of customers are looking to engage
with brand via mobile means that mobile is becoming
as important as other channels for reaching existing and
potential customers.
“Our customer base is highly mobile,” said Kelly Mulroney, vice president of ecommerce at Gamestop,
Grapevine, TX. “Our traffic is increasingly very material in terms of customers who are reaching out via a
mobile channel.
“Mobile is as important as my search, affiliate and email
channels when I think about how we are reaching out to
customers and how customers are reaching me via the
Internet,” she said.
Ms. Mulroney recommends that retailers have a mobile
Web site that has the capabilities and full functionality
of their desktop Web site so it can support acquisitions
via search, organic and affiliate marketing.
Research channel
One of the important roles mobile will play for multichannel retailers next year is in enabling shoppers to research products before making a purchase.
“Mobile is going to be an important research channel,” Ms. Mulroney said. “All the things that inform
researching and getting engaged need to be present in mobile to facilitate a customer researching and
ultimately buying.
“They are a great tool for your most brand loyal customers and a rich engagement channel as well. Anybody
that has a loyalty program should look seriously at a
mobile app.”
Check-ins are another key mobile strategy, per Ms. Mulroney, as they are a great way to get a feeling for who
Additionally, there should be ways to use mobile in phys- is coming into the store and how frequently. Mobile is
ical locations to augment the shopping experience, per also a great way to let customers reach out and find
an enhanced product selection that is not available in
Ms. Mulroney.
the store.”
“When stores are busy, having the mobile capability
for shoppers to checkout quickly will be key,” Ms. Mul- “As mobile devices are faster, all of these kinds of sceroney said. “Mobile apps are great for looking up reviews narios become more plausible in a meaningful sense in
2012,” Ms. Mulroney said.
of products.
Mobile will also play an important role in-store.
PAGE 24
MARKETING
Point-of-sale mobile commerce will become a reality in 2012
By Lauren Johnson
W
ith the increase in smartphone ownership,
consumers expect more from their mobile
devices, and will continue in 2012 with a
closer connection between point-of-sale commerce and
mobile technology.
what is a really scalable solution, versus hype,” he said.
According to the Placecast executive, more financial institutions will also get on board with mobile commerce
this year, which will help leverage consumers’ trust in
using the medium.
According to experts, in 2012 the gap between retailers and consumers will close and mobile commerce will “With large and loyal customer bases, merchant services,
continue to become more interactive and engaging to
users. Additionally, there is a predicted increase in activity from carriers.
“2012 will see the link between mobile marketing and
physical commerce as the point-of-sale finally become a reality,” said Blair Swedeen, senior vice president of strategy and business development at Placecast,
San Francisco.
“In the past, marketers leveraging direct marketing in
the mobile channel were limited to alphanumeric coupon codes, but moving forward there is a huge amount
of activity to close the loop by tying offers to the actual
purchase with scannable loyalty cards, QR codes, NFC,
mobile wallets and even credit cards,” he said.
Mobile sale
In 2011, mobile commerce awareness grew with more
companies focusing on ways to tie commerce with mobile devices, especially with mobile payments.
Per Mr. Swedeen, mobile commerce will include more instore use in 2012 with retailers and loyalty programs.
However, in order for mobile commerce to become more
widespread, retailers need to understand how mobile can
be used.
“For brands, the biggest challenge is figuring out how
mobile fits into the purchase funnel, and what solutions
will drive the biggest value,” Mr. Swedeen said.
“Additionally, businesses will struggle to understand
PAGE 25
According to Mr. Greenstein, the only way for brands
and companies to overcome the challenges is to try mobile for themselves and find a solution that makes sense
for them.
With the backing of financial institutions, retailers and
consumers, mobile commerce is expected to catch on
and play a more prominent role in 2012.
“In 2011, mobile marketing was still seen as cutting edge
an experimental, and 2012 I think will be the first year
mobile goes mainstream,” Mr. Greenstein said.
“By 2013 I expect we will start talking about desktop
marketing as a niche rather than the default experience
in digital,” he said.
a trusted relationship with their customers and access
to robust past purchase data, the credit and debit card
could become the much sought-after mobile cookie,” Mr.
Swedeen said.
Delayed development
There will undoubtedly be advancements in mobile commerce in 2012, but technology needs to be ironed out
before plunging further in, per an executive.
“There are still a number of technology issues that create friction, including device inconsistencies, network
latency and data interoperability, but the single biggest
thing holding anyone back right now is just our own creativity,” said Joe Greenstein, CEO of Flixster, New York.
PAGE 26
MUSIC
New competitors could heat up the mobile music industry
By Lauren Johnson
T
his year is expected to be big for the mobile music
industry, especially with figuring out a monetization model that will stick for the future.
service, via moving from downloads to streaming is an
obvious one on mobile,” said Will Mills, director of music
and content at Shazam, London.
According to an executive at Shazam, a mobile entertainment discovery application, the real challenge will be
keeping up with all the predicted new devices to hit the
market. There will additionally be more of a chance to tie
music and entertainment with commerce in 2012, which
includes sweepstakes and rewards.
“Amazon’s Kindle Fire tablet looks to present the first
significant iPad challenger in the tablet marketplace at
half the price,” he said.
“The increasing shift of music from being a good to a
Music anywhere
With the rise in mobile music streaming, consumers can
get their music fix anywhere they want, which presents
a problem for companies looking to make their service
prominent and ask consumers tor buy music.
Both Apple and Google’s music services will mix up the
mobile music industry while aiming to get consumers to
pay for music.
The addition of more music services for mobile devices
will also challenge music streaming and online radio systems including Pandora, Spotify and Myxer.
Additionally, users can expect to see more uses of location and NFC in 2012 with mobile music, per Mr. Mills.
In 2011, Shazam upped its mobile strategy by partnering
with brands to reward users with prizes and sweepstakes.
2012 will continue to involve more ties between music and rewards, but brands and companies need to
keep a few things in mind in order to maximize their
mobile efforts.
“Keep it simple and focus on specific products and services that lend themselves to easy buy flows,” said Evan
Krauss, executive vice president of advertising sales at
Shazam, New York.
“Leverage rich media wherever possible to present products in the best possible light and quickly get consumers
into the shopping experience,” he said.
“Every click on mobile has a drop off twice that of online.”
PAGE 27
ing mobile coupons, deals, relevant offers or social media.
According to Mr. Wallach, Live Nation found that 47 percent of fans text or email during a live show, 32 percent
update their social media accounts and 66 percent of
concert goers take photos, showing the opportunities
that live music events give marketers.
Live Nation plans to take more advantage of mobile services to spread the word about concerts and live events.
For example, the company added a mobile bar code
scanner to its app and an alerts program to keep users
engaged and informed about events.
“Everything we’re doing now in mobile, we’re thinking
about how we can bring brands into this experience,”
Mr. Wallach said.
“The beauty of understanding that you’re in the venue
gives us an opportunity to find ways for brands to figure
out how to tell that story and deliver the message in a
way that makes sense,” he said.
Mobile concerts
2012 is also expected to see an increase in mobile ticketing at concert events.
According to a Live Nation executive, 30 percent of the
company’s fans said they would buy concert tickets with
the Live Nation mobile application.
“At the end of the day when we look at the 3 Cs – commerce, content and community – it’s about fan engagement and driving mobile revenue,” said Russell Wallach,
president of Live Nation Network, Washington.
“Bottom line, mobile innovations are opening amazing
opportunities to engage fans at live events,” he said.
In 2012, mobile marketers need to begin using more location-based techniques to target concert goers, includPAGE 28
RESEARCH
By Rimma Kats
M
obile commerce has grown in 2011 with more • Thirty-eight percent of smartphone owners have
retailers and marketers rolling out mobile com- used their device to make a purchase, according
merce-enabled sites, building loyalty programs to comScore.
and launching mobile banking applications.
• The largest retailers have mobile in the crosshairs and
The space will grow even more in 2012 with emerging plan to increase their mobile investment for the upcomtechnology such as NFC and mobile wallets.
ing year, per BDO USA.
Here are some stats that are indicative of what to expect
in 2012:
• In 2012, mobile commerce sales will rise 73.1 percent for a total of $11.6 billion, per eMarketer.
The fast pace of mobile commerce growth is helping to drive overall ecommerce growth by converting potential bricks-and-mortar sales to digital
sales for consumers using their smartphones while
shopping in-store.
PAGE 29
• Consumers are always gearing up for the holiday
season and in 2011, 87 percent of tablet owners were
predicted to use their mobile devices during the holiday
season to shop, according to Zmags.
• Mobile price comparison apps and services will continue to effect companies in 2012. Seventy-five percent
of smart device users said they have researched a product
on their smartphones and tablets but have bought them
• Mobile gambling has been slow to catch on with consumers, but a Forrester Research report says that of the
United States consumers who gamble online, 59 percent
access the mobile Web.
• Consumers are increasingly turning to their mobile devices to buy goods and services, with two-thirds of surveyed smartphone owners using their handsets to make
purchases, per L.E.K.
• Twenty-seven percent of top U.S. retailers do not have
a mobile presence and are missing out on key opportunities to engage with new and existing consumers, according to 2ergo.
• Consumers are gradually using their mobile devices to
price compare while in-store and 77 percent of surveyed
consumers use their handset to scan a mobile bar code
while shopping, per Ogilvy.
elsewhere online or in-store, per Limelight Networks.
• Almost half of mobile users make more than one purchase a month via their mobile devices and spread the
wealth among multiple vendors, according to Myxer.
• Mobile banking continues to rise with nearly 13 million mobile users that used a mobile banking app in June • Privacy and security are still a big issue with more
– up 45 percent from the fourth quarter of 2010, accord- than 25 percent of United States consumers saying they
ing to comScore.
will make mobile payments if they trusted the device’s
security, per MEF.
•
With the rise in mobile shopping, retailers have an opportunity to hook consumers instore. According to Retrevo.com, 43 percent of
mobile shoppers surveyed have downloaded a
retailer’s application.
• A recent Hipcricket study points to the fact that
mobile’s role in holiday shopping will be different
and more important than past years, making it key
for brands and retailers to have a sophisticated presence in the space. The company found that 33 percent of consumers were interested in joining a mobile
loyalty program.
• Brands are increasingly using mobile as a means of
reaching local consumers, with location-based marketing growing 22 percent month-to-month, according to
Millennial Media.
PAGE 30
SEARCH
Local search and deals will take off in 2012
By Lauren Johnson
A
ccording to industry experts, mobile search is According to Mr. Cushman, 2012 will be a crucial year
rapidly growing and is expected to open up op- for brands to include deals and offers with their mobile
portunities for driving sale via deals in 2012. search efforts.
In 2012, brands and companies will need to have a
360-degree mobile search plan to capture users who
are browsing the Web from their devices. 2012 will
be the year that localization ties in with commerce,
per executives.
Additionally, users are not completely comfortable using
solely mobile for all digital purchases, and brands need
to think about creating an experience that is unique for
mobile but also resembles the Web, which is what consumers are comfortable with.
“Next year will bring huge opportunities for mobile
search and commerce, especially when it comes to providing consumers with greater access to bargains at the
local level,” said Paul Cushman, senior director of mobile
sales strategy at Yahoo, Sunnyvale, CA.
“Increased smartphone adoption and use to access deals
will also allow brands to observe consumer behavior and
streamline the purchasing experience quickly, moving
consumers along the sales funnel that much faster,” Mr.
“When you combine local deals, proximity targeting and
have smartphones with more features available at lower
price points, you give advertisers an unprecedented opportunity to reach their target audiences poised to purchase,” he said.
Mobile finds
The trick for marketers in 2012 will be finding
ways to use commerce in a way that smooths the
user experience.
Search needs to be used only to bring up the most local
and relevant search results for mobile users.
In 2011, companies tested mobile payments for items by
using search.
Consumers are now using their mobile devices more than
ever - plus they are doing more with them.
Users are going to their mobile phone first to purchase
easy, on-the-go items such as movie tickets.
For example, online movie ticket company Fandango,
which gives consumers tailored results with the closest
movie theaters and times, claims that 40 percent of its
traffic comes from mobile devices.
PAGE 31
Cushman said.
“It is imperative that those just venturing into the mobile
arena create a site with the mobile consumer in mind,
considering factors that include usability, navigation and
an experience comparable to the desktop with which
consumers are most familiar,” he said.
Search on
According to Google, mobile search has increased fivefold in the past two years, signaling the importance for
companies to utilize the channel.
This year, Google rolled out an initiative that ranks
search results that are geographically closer to users higher, which could help a business rank better in
Google’s AdWords.
“Businesses need to do a better job of understanding the
needs of their customers, in a mobile-specific context,”
said Surojit Chatterjee, lead product manager of mobile
search ads at Google, Mountain View, CA.
“We’ve only scratched the surface of what is possible
in terms of enabling businesses to give consumers useful information on the go - much more is on the way in
2012,” he said.
Timing and user context are key for companies looking to
effectively use mobile search in 2012, per Mr. Chatterjee.
Google research has shown that users connect to mobile while they have extra time throughout the day
and on weekends, correlating to an increase in mobile
search traffic.
It is also important to remember that users are interacting with mobile when they are looking for something in
the moment, which is why including mobile search into
a company’s strategy is crucial.
“Ultimately, marketers need to put themselves in users’ shoes and consider what types of information about
their businesses are valuable to a user walking down the
street looking for a place to shop or eat from a device
they’re browsing,” Mr. Chatterjee said.
PAGE 32
SOCIAL NETWORKS
Significant synergies will be gained from mobile social retail strategies
By Chantal Tode
T
he synergistic combination of mobile and social
will take off in 2012 for retailers that recognize the
power here and make the necessary moves to take
advantage of this trend.
The pace of mobile social initiatives in the retail segment started to pick up toward the end of 2011, with big
names such as Dunkin’ Donuts and Domino’s launching
check-in promotions and a bigger presence for Twitter,
which was integrated into LivingSocial’s mobile application and users were given a way to purchase items via
Payvment’s sponsored products.
There are likely to be more of these types of mobile social
integrations in 2012.
“More than one-third of Americans have smartphones,
and that number is only going up,” said Sam Altman,
cofounder/CEO of Loopt, Mountain View, CA. “For retailers – especially those with physical stores – there’s
a big opportunity to engage at a local level with
potential customers.
“As an example, Loopt has a partnership with Groupon
to deliver mobile alerts to people when they’re near a
deal,” he said. “So, you could be walking down the street,
phone-in-your-pocket, and DING, there’s a deal right
around the corner.
“These real-time deals are great for both retailers looking to manage inventory and consumers looking for the
best deal.”
Driving in-store traffic
Mobile phones present completely new opportunities for
retailers to engage consumers. Since people often carry
their phones with them everywhere, creating a valuable
experience for them while they are out and about can
impact a retailer’s bottom line.
There was a lot of experimentation in leveraging the
combined powers of social and mobile in 2011 but in
2012, retailers will be focused on deeper integration that
spurs actionable results.
“We know that mobile shoppers are highly intent-driven
and complete buying cycles more quickly,” said Jed Williams, analyst and program director at BIA/Kelsey, Chantilly, VA. “Data suggests that social signals significantly
impact buying behavior, making shoppers more likely to
search, consider, buy, share and advocate.
“The confluence of these two forces on location-aware
mobile platforms is powerful, and retailers realize this,”
he said.
“Whether driving ecommerce or especially in-store traf-
PAGE 33
hood store level,” he said.
Mashup
One of the biggest challenge retailers will face is bringing together the necessary social, local and mobile elements to close the loop. Retailers will be faced with how
to integrate their mobile and social efforts with their
bricks-and-mortar stores.
“Retailers have mobile apps and/or mobile sites,” Mr.
Williams said. “Some have robust social presences and of
course they have brick and mortar stores.
“But how do they create the right synergies between
these three related ideas?,” he said. “At a high level,
that’s the biggest challenge in 2012, with most retailers
still in the experimentation phase.
“Then there are the deeper questions about what
distinct features mobile experiences should offer consumers, which social networks should be utilized, and how those networks can create optimal
brand engagement.”
fic is the objective, retailers need to continue to build
out their social graphs and then imbed these deeply into
the mobile browsing, searching and buying processes to take fuller advantage of the emerging power of
social commerce.”
One of the biggest opportunities for retailers is in driving
in-store traffic when mobile consumers are close to the
point-of-sale and lower in the buying funnel.
Retailers will need to act quickly to come up with wellexecuted mobile social strategies as the competition
heats up next year.
The retailers who are able to successfully develop meaningful mobile social programs that deliver relevant information and offers when and where
consumers need them will see an impact on their
bottom line.
When location is added on top of social signals “Consumers are picky, and there’s a lot of noise out
and mobile platforms, the opportunities are even there - it’s tough to differentiate the value of one momore significant.
bile experience over another,” said Loopt’s Mr. Altman.
“The more these experiences can be bundled, the happier
“There is massive opportunity to be tapped, and 1 + 1 = consumers will be.
3 network effects to be gained, in finding the effective
mobile/social sweet spot,” Mr. Williams said.
“They want things to be valuable, simple, quick and easy
– wham, bam, and they’re on their way,” he said.
“More than ever, all advertising is local, with national
retailers increasingly able to take advantage of location- “Nailing the formula to get mobile users engaged and
aware mobile devices, social signals, and targeting capa- to keep them coming back will be a clear challenge to
bilities to market their brands and products at neighbor- overcome in the coming year.”
PAGE 34
SOFTWARE AND TECHNOLOGY
New technology will guide mobile marketing in 2012
By Lauren Johnson
A
s mobile adoption by consumers continues to
grow, experts agree that mobile marketing is
expected to become more savvy in 2012 with
new technologies.
Mobile bar codes, applications, mobile payments, augmented reality, image recognition and HTML5 will all
make a splash in 2012 marketing campaigns and efforts.
However, educating consumers and brands about what
the technology does and which pieces are best for their
companies will continue to be an issue in 2012. For example, mobile bar codes need to be placed more strategically on marketing materials with clear calls to action
to help consumers understand them.
“Overall, the barriers to entry are diminishing, but we
still see education and awareness as the biggest hurdle
for the entire industry,” said Brian Fleisher, senior director of product management and business development
for Microsoft Tag, Redmond, WA.
Before
companies
begin implementing
mobile bar codes, it
is important to understand what kind
of experience consumers are looking for to create a
campaign around.
As mobile consumer
adoption increases in 2012, marketers will be more willing to use them to enhance traditional campaigns, including print and television ads.
“Mobile will continue to play an important role as the
glue between the physical to digital worlds,” said David
Javitch, vice president of marketing at Scanbuy, New York.
“Consumers will initially scan for the novelty and quickly
expect real value and from the experience,” he said.
“Consumers often cannot identify what type of mobile
bar code they encounter and what application should be “This is important in driving repeat growth for brands
used to scan,” he said.
that want to use this tool to deliver a real ROI.”
“As consumer education continues to rise and 2D bar
code platforms begin to solve for the fragmented marketplace, this challenge will decrease.”
In order for brands and companies to truly understand
mobile bar codes, it takes a team effort, per Nicole Skogg, founder/CEO of Spyderlynk, Denver.
Scan and save
According to the Microsoft Tag executive, mobile bar
codes will play a significant role in 2012 by driving
commerce transactions.
“Create a cross-functional team comprised of brand
managers, creative agency representatives and technologists to evaluate the best opportunities to leverage
mobile activation,” Ms. Skogg said.
“The more companies use 2D bar codes and expose con- Pay on mobile
sumers to experiences that deliver value, the more likely With consumers more comfortable buying on their devicconsumers will be to engage with their mobile devices,” es, mobile payments are also expected to heat up in 2012.
Mr. Fleisher said.
NFC-enabled devices have been on the rise for a while,
With the number of mobile bar codes on the market, but with big companies including Google, PayPal and
consumers need to know exactly which bar code reader Mastercard now in charge, consumers are likely to trust
to use and what will happen when they scan the code. using their device to pay for things.
PAGE 35
In 2011, Google revealed its Google Wallet program
to retailers that lets consumers with a Sprint Nexus
S 4G phone make purchases by waving their phones
over kiosks at the point-of-sale. The technology uses
a mobile app that is linked with a credit card to make
a transaction.
mented reality to leverage mobile Web sites, apps and
traditional media including print and television.
Additionally, image recognition will continue to be
prevalent in 2012 with its emphasis on messaging and
mobile Web. SMS continues to be the mobile channel
with the largest reach, and the mobile Web is increasAlthough the Google program has been touted as a way ingly growing. However, if brands ask consumers to snap
to get consumers on board with mobile payments, the a picture of a product for a reward, it needs to include a
company will need to make it available to the mass mar- clear incentive and instructions.
ket and for a variety of platforms in 2012.
App world
PayPal has also rolled out a mobile point-of-sale system 2011 was a year of accomplishment for app developers.
that uses NFC and a cloud to let users pay via their de- Google’s Android platform grew significantly with both
vices. The solution is being plugged as a multiplatform manufacturers and consumers, were forced to develop
option that requires consumers to pay with a PIN number at least a two-platform app strategy to develop for both
that is tied to a Paypal account. Already retailers such as Apple’s iOS and Android devices.
The Home Depot are on board.
Although Apple and Google still claim the majority of
Credit card companies could also see a real opportunity mobile market share, in 2012 brands will need to think
to tap into mobile payments in 2012.
about more ways to reach a broader group of consumers
with their apps.
For example, MasterCard recently began testing NFC
and mobile payments at movie theaters in Australia. The In 2011, Adobe ditched its Flash development to more
technology gives consumers three ways to pay using actively pursue HTML5 technology, signaling an importheir mobile devices - QR codes, Apple and Android apps tant shift for mobile in 2012.
and NFC-enabled chips.
HTML5 Web development, which makes it possible to
Although the MasterCard QkR app shows potential by develop mobile sites across multiple platforms, is anticiusing a variety of mobile channels, the program needs to pated to ramp up in 2012, creating a competitor to apps.
be tested in the United States to gauge how consumers
will react to mobile payments with options.
Therefore, brands and companies will need to think about
ways to divide up their mobile efforts between developMobile layers
ing apps that reach across multiple platforms or creating
After being used by brands such as Starbucks and Macy’s a mobile Web site. Additionally, more sophisticated app
in 2011, augmented reality is sure to be a hot area to categories that help consumers streamline daily tasks
watch in 2012.
will be hot in 2012.
Augmented reality adds an additional layer to mobile “App development will continue primarily in healthcare
content and gives users an incentive for interacting with as the trend for app prescribing and secure portals contheir mobile devices.
tinue in patient care and peer-to-peer marketing,” said
David Apple, principal and chief marketing architect at
However, with the increase in augmented reality, devel- Version Infinity, Dallas.
opers and marketers need to remember to keep the emphasis on the brand message behind the technology.
“In consumer-focused programs, the more successful areas for apps will remain in the utility area, servingtravel,
In 2012, consumers can expect to see more use of aug- banking, and must-have lifestyle issues,” he said.
PAGE 36
WEB SITE AND DEVELOPMENT
Having a mobile commerce-enabled site in 2012 will not be enough
By Rimma Kats
A
s consumers become more comfortable using
their smartphones for shopping-related activities,
retailers will realize that they must have a mobile
commerce strategy in place that optimizes the phone for
the specific ways in which shoppers use mobile.
A cut and paste version of an ecommerce site is no
longer sufficient as consumers expect retailers to offer a unique and rich experience on mobile. In 2012,
more consumers will expect a seamless mobile shopping
experience from their favorite brands and bricks-andmortar stores.
“2012 is trending towards what is beyond simple mobile
commerce,” said Dan Lowden, vice president of marketing at Digby, Austin, TX.
“More consumers are now using their smartphones as
a shopping companion to aid the in-store experience,”
he said.
“A recent study by Google on mobile shopping behavior
indicates that 67 percent of smartphone users turn to
their device before and during their visit to a physical
retail store prior to making an in-store purchase to assist
them in their buying decisions.”
Mobile shopping
Mobile-optimized Web sites will continue to be relevant ceive discounts, scan UPC and QR codes to access more
in 2012 as it is how a consumer initially interacts with a detailed product information including ratings and reretailer from a mobile device.
views and video demonstrations, and participate in store
exit surveys that can earn shoppers loyalty club points is
“But where we are going to see the most growth in mo- where top retailers will lead in 2012,” he said.
bile in 2012 is with retail branded rich applications for
the iPhone, Android and BlackBerry,” Mr. Lowden said. Gone are the days when mobile was just a channel to
“Retail branded rich apps that enable retailers to send purchase last-minute gifts and on-the-go items.
personal and location based offers or promotions directly consumers to help drive them to the store will be a Nowadays, retailers are seeing consumers buy products
must have.
from chocolates and flowers to expensive jewelry, full
furniture sets and luxury clothing.
“Also enabling consumers to check-in to a store location
through the retailer’s rich app to see promotions and re- “We have seen orders through mobile sites be as large at
PAGE 37
who download the app.”
Experiences
In 2012, brands will realize that it is no longer enough
just to have a mobile site – instead they must deliver a
mobile experience that is engaging and meets growing
consumer expectations for the channel.
“We also anticipate more brands leveraging HTML5 to
launch next-generation mobile sites that include enhanced features like GPS integration, expand and collapse navigation, streamlined shopping carts and checkout and enhanced image galleries,” said Nick Taylor, CEO
of Usablenet, New York.
The primary challenge with regards to mobile commerce
in 2012 will be the need for brands to continually innovate their mobile commerce sites.
If a mobile commerce site is not easy for the consumer to
use, they will quickly move on to the competition.
According to Mr. Taylor, marketers should continually
strive to identify new ways to improve the mobile shopping experience for their customers.
“Top organizations now realize that mobile is a significant channel that requires continued invest$65,000 for a single checkout,” Mr. Lowden said. “Con- ment just like the Web,” Mr. Taylor said. “It is no lonsumer mindsets are quickly adapting to the advancing ger enough to have a bare bones mobile site that does
mobile technologies where shoppers now expect to be not offer an engaging experience to the visitor; inable to purchase anything on a mobile device that they stead brands must continue to deliver innovative and
valuable user experiences to customers using their
can on the computer.
mobile sites.
“Additionally, more and more emphasis will be on
making the retail branded mobile commerce expe- “HTML5 will continue to play prominent role in the derience richer than the ecommerce site to meet the velopment of mobile commerce sites moving forward as
unique needs and use cases for the mobile masses,” it enables brands to deliver a much richer mobile browsing experience,” he said.
he said.
“Rich, retail branded apps will become the next loyalty
card where unique experiences using the native features
of the phone will come more into play such as location,
use of the camera for scanning and push notifications to
send promotional messages to the most loyal customers
PAGE 38
“Such features as GPS integration, advanced image galleries, and streamlined navigation and checkout make
the mobile browsing experience more seamless for
shoppers and leads to increased conversion on mobile
commerce sites.”

Mobile commerce stats to remember in 2012

Transcription

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