Communication is shifting to match today’s lifestyle – mobile. We’re on the go and newspapers, direct mail and television aren’t always with you. But most likely, your cell phone is less than an arm’s length away. The marketing world is turning to mobile technologies to effectively engage and communicate with the modern person, enhancing existing traditional marketing tactics, not replacing them. With the meteoric rise of smartphones, the capabilities of this media can be overwhelming. The presentation, Mobile Technologies in Marketing, looks at these powerful innovations supported by industry reports and real-world examples from simple text messaging to near field communications and branded apps.

1. Survey of
Mobile Technology in Marketing
Judd Wheeler
June 21, 2011

2. 25%
of consumers are more likely to respond to
advertising, whether it s print, online, or
advertising whether it's print online or
outdoor, if they are able to do so via a mobile
response
Mobile Marketing Association (MMA) and Lightspeed Research

4. Gartner predicts by 2013
• 1.78 billion PCs
• 1.82 billion browser‐
1.82 billion browser‐
equipped phones

5. Retailers find value in using
90% 87%
80%
70%
67%
60% 62%
50%
40%
30% 27%
20%
10%
0%
Smartphones to
drive traffic
di ffi Facebook &
Facebook &
Twitter to drive Customers use
their Delivering
traffic
smarphones in information to
store
t cell phones
cell phones
“The 21st Century Store: The Search for Relevance” by RSR Research

6. Mobile Technologies
Mobile Technologies
• Text Messaging (SMS/MMS)
• 2D Barcodes
• Mobile Web
• Search
S h
• Advertising
• Location Based Services (LBS)
Location‐Based Services (LBS)
• Near Field Communications (NFC)
• Augmented Reality (AR)
• Apps
• Innovations

8. SMS Turns 18
SMS Turns 18

9. Text May Not Be Sexy, BUT…..
Text May Not Be Sexy, BUT…..
• 90% of all text messages read within 3 minutes of delivery
• Over 99% read by the recipient
• SinglePoint Conversational Advertising
• Text:
– CTR 14.06% Conversion 8.22%
• Email:
– CTR 6.64% Conversion 1.73%
CTR 6.64% Conversion 1.73%
• Internet Display
– CTR 0.76% Conversion 4.43%
• Direct Mail
Direct Mail
– Response 1.4‐3.4% (Conversion < 1%)
• DMA 2010 Response Rate Trend Report

10. Text (SMS/MMS)
Text (SMS/MMS)
• Alerts • Text4Offer
• Text2Win • Polls
• Text4Info • Pics & Text2Screen
& Text2Screen
Courtesy of iMobilize Media

14. Text4Next
Orange County
g y
Transportation Authority
• Simple & easy
• OCTAGO
– Bus
– Bus #
– Stop #
– Route #
• G t
Get next 3 arrival times
t 3 i l ti
• Can preplan by including
time and date

16. Mobile Barcodes
Mobile Barcodes
30 characters 3,296 alphanumeric 1,000 characters
• 1992 – Denso‐Wave (Toyota)
( y )
• Additional storage capacity accommodates a variety of data beyond
numbers:
– Text
– Hyperlink
– Telephone number (Phone call)
– SMS/MMS message
– Email (Send message)
– Contact entry (vCard or meCard)
– Calendar entry (vCalendar)

19. Deals, ads and a video
D l d d id
7,581 web site visits (90 days)

22. You Gotta
You Gotta
• Inform
• Engage
• Utilize opt‐in
• Provide value
Provide value
• Gain insight

23. Don t
Don’t
• Don’t distribute a mobile barcode without
Don t distribute a mobile barcode without
thoroughly testing it
• Don’t link to a generic webpage
Don t link to a generic webpage
• Don’t link to a webpage that isn’t mobile‐
friendly
f i dl

27. Mobile Web
Mobile Web

28. Retail Mobile Web
Retail Mobile Web
Mobile‐enabled retail web site
Mobile enabled retail web site
• 54% consumers would shop
directly from barcodes in
magazines
i
Have
• 12% of retailers offered it Not
40%
• Must break away from
traditional channels Have
60%
• E b
Embrace evolution, prepare
l ti
for future demands OR be
left behind

29. Marks & Spencer (UK)
Marks & Spencer (UK)
• 1.2m unique visitors in first
6 months
• Over 10m page views
• More than 13 000 orders
More than 13,000 orders
from site since launch
• The most popular handsets:
primarily iPhones and
i il iPh d
secondarily Android devices
• 24,000 products purchased
range from wide screen TV’s
to sofas and clothes

31. Google Mobile Search Innovations
Google Mobile Search Innovations
• Google Instant (autocomplete)
Google Instant (autocomplete)
• Instant Previews
• Voice Search (Apple Siri*, FREE‐411, Naturally
i S h( l Si i* ll
Speaking’s Dragon search app)
• Google Goggles (use pictures to search web)

32. Search

33. Mobile Advertising
Mobile Advertising
• Gartner: mobile ad revenue $3.3 billion in 2011 (double)
$20 billion by 2015
$20 billi b 2015
• comScore: # of US advertisers up 128% in 2 years
• Mobile‐TV ad spending $1.4 billion in 2015 (quadruple)
• Opportunity to reach consumers via mobile channels continues to
improve:
31% of mobile users now own a smartphone, up from just 20% one
31% of mobile users now own a smartphone up from just 20% one
year earlier.
• Men OUTSPEND women 9 to 1 on virtual goods (social games)
Men OUTSPEND women 9 to 1 on virtual goods (social games)
• Virtual goods: 69% of males versus 31% of women
MocoSpace

34. Mobile Advertising
Mobile Advertising
• Fragmented
g
– Over 10 ad networks in U.S. alone
– Players like inMobi, AdMob (Google), iAd (Apple),
Microsoft Mobile Advertising, Millennial Media,
Microsoft Mobile Advertising Millennial Media
Greystripe… (none dominate)
• Types of networks
– Blind (largest)
– Premium Blind
– Premium
• iAd no longer allows display of ads on kid’s apps
( y
(May 2011))

35. iAd
• Belgium’s first company to launch iPhone App
• First iAd used in newspapers and magazines
• Ends with product demo (can download)
Ends with product demo (can download)

36. Real World Gaming Rewards
Real World Gaming Rewards
• Kii SDK
Kiip
– Rewards in‐game
achievements on mobile
achievements on mobile
games with real life rewards
– Raising a level or high score
– Rewards based on game
demographics
• Tap Me
Tap.Me
– Redbox ads
– Future real‐world rewards
Future real‐world rewards

37. Location Based Service
Location‐Based Service
10,000,000
• $10‐billion‐per‐year business by 2016
p y y
– LBS advertising could be 50% (Strategy Analytics report)
• 40% of Google Map ‐ mobile
40% of Google Map

38. Shopkick (Proximity Marketing)
(Proximity Marketing)

39. ShopAlerts
• Works with any phone
Works with any phone
(no GPS)
• Opt‐in
p
• SMS, Facebook, Twitter,
web, in‐store signage
g g
• Geo‐fences based off
cell towers

40. SCVNGR Buffalo Wild Wings
SCVNGR – Buffalo Wild Wings
• Go places
p
• Do challenges
• Earn points
• 720 locations
12‐week campaign
12 week campaign
(March Madness)
• Media & customer
engagement
• Improve customer return
rate – drive revenue
rate – drive revenue

41. Turn Watching Games into a GAME
Turn Watching Games into a GAME
• Rewards for completed
p
challenges included:
– $5 off (3 points),
– a free Coca Cola (20
a free Coca‐Cola (20
points) and
– free wings (30 points)
• T k i of friends,
Take pics f f i d
sauciest wing in the
basket, fans of rival
teams, crowd going wild…
• Could share to Facebook
& Twitter
& Twitter

42. Results
• Players generated 20,000+ challenges
• There were 184,000 unique players
• 1 in 3 players returned to play again
• On average, users completed 7
challenges
• 100 million social impressions via
Facebook and Twitter.
• On average, a player spent 90
O l 90
seconds per challenge, meaning that
BWW saw the equivalent of 3.6 years
of brand engagement in its locations
g g
during the campaign.
Now had an established database of
184,000 people for its next campaign
l f

44. Near Field Communication
Near Field Communication
• 150,000 NFC
• 6 million traditional
Crone Consulting

45. Technology Range Bit rate
Bit rate
• NFC (subset of RFID) • < 0.2 m (< 8 in) • .4 Mbit/s
• Bluetooth • ~ 10 m
10 m • 2 Mbit/s
2 Mbit/s
• Bluetooth Low Energy • ~ 1 m • 1 Mbit/s
• RFID • Depends on
frequency
1 ft, 10‐20 ft &
300 ft
300 ft

46. NFC Predictions
NFC Predictions
• Chip makers predict 40‐50 million NFC phones
Chip makers predict 40 50 million NFC phones
by 2011
• ~300 million phones worldwide (20%) phones
~300 million phones worldwide (20%) phones
with NFC by 2014 (Juniper Research)
• 30% of all mobile phones worldwide will be
f ll bil h ld id ill b
NFC enabled in 2015 (HIS research)

48. Digital Signage + NFC mTAG
Digital Signage + NFC = mTAG
• Cafes
• Health clubs
• Airports
• Airplanes
• Pharmacies
• Casinos

49. Other Examples
Other Examples
• Purchase rail, metro, airline, movie, concert or
Purchase rail, metro, airline, movie, concert or
event tickets
• Boarding pass
Boarding pass
• Coupons
• Tour guide (AV presentation)
Tour guide (AV presentation)
• ID card (students, employee, medical)
• K
Keycard (car, house, office)
d( h ffi )
• Rental car and hotel keys

50. Advantages
• Easier to setup than Bluetooth or WiFi
Easier to setup than Bluetooth or WiFi
• Can remain “on” all the time w/o draining the
battery
• Interactions are opt‐in and secure

51. People Aren t Waiting
People Aren’t Waiting

52. Opportunity
• 9 12 months
9‐12 months
• Rich media interaction
• Must be easy and provide value
b d id l
• Enabler of existing services/tech rather than a
replacement

54. Audi 2010 Calendar
Audi 2010 Calendar
• Car calendar without cars
• Download an App
• Exclusive content – 1st to see Audi A1
Exclusive content to see Audi A1

55. Yelp & Zagat
Yelp & Zagat
• Yelp • Zagat RETINA
–SSee restaurants
t t –C i t
Can interact & virtually
t & i t ll
– Click to get ratings and walk down the street
reviews – Click to get full review
g
and details

56. • Social AR
• O li
Online and mobile
d bil
• Leave messages for your network

57. • Platform to create your own AR world
y
• Third‐party developers created layers
• p p
Open platform
• 1M‐5M downloads on Android
• 1.4M active users
• 1,800 published layers
• PayPal integrated
PayPal integrated

58. Bring digital into reality
• History overlays
History overlays
• Find ATM, restaurants, art,
stores, real estate for sale
• Gaming
• Social

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

60. PSV Concept
PSV Concept

62. Apps
Over 7 TB Ave Price: $3.64
Ave Price: $3.64
Free,
36%
Pay,
Pay
64%
$891,982.24

63. Apps Dirty Little Secret
Apps Dirty Little Secret
Average: 60 apps downloaded to iPhone or iPad
Average: 60 apps downloaded to iPhone or iPad
Paid Free
• 30% first downloaded • 20% first downloaded
• 5% by day 21 • 5% by day 25
• 1% by day 90
b d • 1% by day 90
b d
Socialize Inc.

64. And/
+
OR
=

65. IKEA 2010 Interactive Catalog
IKEA 2010 Interactive Catalog
• Place furniture • Results
– 40 pieces
40 pieces – PR
– Use camera, move, resize, – WOM
take a picture – High downloads
• Di
Discover style
t l
– Thru quizzes

66. North Face (China)
North Face (China)
• Stake virtual claim • > 2 million unique visitors to
• Li
Live score kept on web &
k b& web
outdoor electronic board • > 651,000 red flags planted
• 18 days
18 days • Champion > 4,000
Champion 4,000

67. McDonald s Interactive Billboard
McDonald’s Interactive Billboard
• Photo Catch
– Using cell phone camera
– Get one free
• Pick & Play
– No app
– picknplay.se
picknplay se
– Geo‐location
– Play on big screen in real‐
time
– Last 30 sec get digital
coupon w/directions
p /

68. Cometto Ice Cream (Turkey)
Ice Cream (Turkey)
• 2 weeks / 2 hours a day = Word of mouth
• 3 illi
3 million unique views
i i = Brand awareness
B d
• 3,500 players Collect 3 ice cream in 45 sec &
win

69. Where in the World
Are the Innovations Happening?
h
• One or two strong innovative companies that
One or two strong innovative companies that
can lead tech change
• Government backing
Government backing
• Consumer willingness to embrace new mobile
tech
h
• Shortage of payment methods or existing NFC
systems

72. Things to keep your
Things to keep your
With the FTC’s crackdown
on privacy extending to
mobile, how do advertisers
mobile how do advertisers
target mobile users
without personally
identifying them?

73. • Unique device IDs
Unique device IDs
• Examine contents
• Expects 1B devices by end
of the year

74. • Builds on geographic 100‐meter
tiles of the world down to block
il f h ld d bl k
level
• Public data (social info, check‐ins,
events, locations))
• Time

75. • No hardware upgrade
No hardware upgrade
• Built‐in speaker &
microphone
• POS upgraded same way, $30

76. • 12 million iOS downloads translates to $8,316,000
• 7 million Android downloads translates to over
$1 million/month in ad revenue