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Benchmarks and Best Practices for Mobile Marketing in the U.S 20110228-SUPP-WP2--0001,0002,0003,0004,0005,0006,0007,0008,0009,0010,0011,0012,0013,0014,0015,0016,0017,0018,0019,0020,0021,002 WHITE PAPER What You Need to Know About MobileMobile MarketingMarketing20112011 Benchmarks and best practices for mobile marketing in the U.S. 20110228-SUPP-WP2--0001,0002,0003,0004,0005,0006,0007,0008,0009,0010,0011,0012,0013,0014,0015,0016,0017,0018,0019,0020,0021,002 WHITE PAPER WHAT YOU NEED TO KNOW ABOUT MOBILE MARKETING 2011 TABLE OF CONTENTS INTRODUCTION 2 Introduction MOBILE TIPPING POINTS 5 UBIQUITY BEHAVIOR CHANGING DEVICES BY KATHRYN KOEGEL BREACH OF THE DIGITAL DIVIDE 8 FASTER AND FASTER GENERATION TEXT 9 PORTABILITY BECAUSE IT’S PERSONAL 11 CONVERGENCE ACTIVITIES AND ADVERTISING “MOBILIZED” it’s no mystery why “Mad Men” is so popular in the marketing community. The acclaimed AMC series looks back at a time when 12 MOBILE’S PLACE IN THE MARKETING MIX the process of creating advertising was undeniably sexy. TV and REACH print ruled because they enabled brands to tell simple but power- BRAND IMMERSION CONTEXT ful stories. Marketing wasn’t about complex algorithms, but pas- ACTIVATION 13 sion and gut instinct. The brave, new world of mobile devices as a PROMOTION marketing medium, however, is more akin to “Star Trek”—anoth- LOCAL IMPACT er beloved TV show from a time when those Mad Men were cre- - THE AGENCY PERSPECTIVE 14 ating their insightful, witty brand stories. Today, mobile is overrun with sci-fi-esque references (femtocells!), mysterious acronyms MOBILE MYTHS DEBUNKED 15 (NFC, OEMs, LTE) and toy-like devices (anything with a “touch” IT’S NOT AN ALL-APPLE WORLD and an “i” in it) that do really cool stuff. NOT ALL PEOPLE DO ALL THINGS ON ALL PHONES 16 While the sci-fi geeks may have invented mobile, it is the bal- SMARTPHONES: GAME CHANGING, BUT NOT THE WHOLE MARKET ance of us that is embracing those devices and having transforma- 17 IT’S NOT AS COMPLICATED AS IT SOUNDS tive, personal experiences with the new media-delivery tool. Mobile phones and now tablets have gone beyond simple communication WHO’S MOBILE? 18 WAP USAGE to encompass all forms of media usage (text, video, gaming, social TOP WAP ADVERTISERS networking, information gathering). Mobile devices are becoming TOP APPS personalized remote controls for consumers, enabling them to access information and entertainment content whenever and wher- HOW TO MARKET THROUGH MOBILE 21 ever they want it. The mobile-marketing moment has arrived. SMS MOBILE WEB AND IN-APP BANNERS BECAUSE ERIC, STEVE, MARY, AND MARK’S CTO SAY SO - APPY NEW YEAR? HARDLY 26 Why is now the mobile moment? In the midst of the economic RICH MEDIA, INCLUDING IADS 28 doldrums of 2009 and 2010, TV was flooded with advertising for BRANDED APPS all manner of mobile devices; accordingly, smartphone, tablet and MOBILE RADIO/AUDIO 29 e-reader sales took off. In the January 2011 issue of The Harvard MOBILE VIDEO MOBILE SEARCH 30 Business Review, Eric Schmidt, former CEO and now executive MOBILE ACTIVATION 31 chairman of Google, the house that search built, turned away from MOBILE COUPONING 32 the wired web of clicks to declare:“As I think about Google’s strate- LOCATION-BASED SERVICES gic initiatives in 2011, I realize they’re all about mobile.” When he MOBILE PHONES AS RETAIL TOOLS addressed the GSMA Mobile World Congress the previous MOBILE COMMERCE 33 February,he said “mobile advertising [will] generate more revenue - MOBILE AD NETWORKS 34 than advertising on today’s web.” Apple CEO Steve Jobs announced that the company’s long- CONCLUSION 35 rumored touchscreen tablet would be introduced as 2010’s spring awakening to the world. It wasn’t just a big iPhone, as some sug- GLOSSARY 36 gested but, as Jobs said, “our most advanced technology in a mag- ical and revolutionary device at an unbelievable price.” Less than This document and information contained therein are the copyrighted property of Crain Communications Inc. and Advertising Age (Copyright 2011) and are for one week after the iPad made its April debut, Jobs followed up with your personal, noncommercial use only. You may not reproduce, display on a the aptly named “iAd,” heralded as a solution to what he saw as website, distribute, sell or republish this document, or the information contained therein, without the prior written consent of Advertising Age. Copyright 2011 by “ads on mobile that suck.”The iAd was accompanied by the launch Crain Communications Inc. All rights reserved. of an exclusive ad network on which to sell those rich-media 2 | March 14, 2011 | 20110228-SUPP-WP2--0001,0002,0003,0004,0005,0006,0007,0008,0009,0010,0011,0012,0013,0014,0015,0016,0017,0018,0019,0020,0021,002 WHAT YOU NEED TO KNOW ABOUT MOBILE MARKETING 2011 WHITE PAPER CHARTS ➜ DOWNLOAD 1: MOBILE VS. DESKTOP USER PROJECTION, Morgan Stanley 3 Key charts are available for 4 buyers of this white paper to 2: MOBILE AD SPENDING, eMarketer download as Power Point 3: MARKETERS PLAN TO SPEND $5.5B ON MOBILE IN 2011, MMA 4 slides. Use this link to access 4: PHONES TAKE ON THE PC, Insight Express 5 the slides: 5: U.S. HOUSEHOLD CELLULAR-ONLY PENETRATION, Nielsen 5 AdAge.com/whitepapers 6: 10 MOST POPULAR HANDSETS, comScore 6 7: MOBILE MEDIA USE SPIKES FOR SMARTPHONE USERS, Nielsen 7 8: MULTITOUCH/TOUCHSCREENS GROWING FASTEST, comScore 7 9: SMARTPHONES MAJORITY IN U.S. BY Q2 2012, Nielsen 7 CHART 1 10: THE IPAD DECEMBER HOCKEY STICK,The Weather Channel 8 11: MINORITY REPORT: LEADING IN MOBILE, Pew Research 9 12: 3G ACCESS NEARLY 50% OF U.S. MOBILE MARKET, comScore 9 GLOBAL MOBILE VS. DESKTOP INTERNET USER PROJECTION 13: TEENS AND TEXTING, Kaiser Family Foundation 10 Internet users in millions 14: MANY DEVICES DELIVER MEDIA VIA WIRELESS,Pew Research 10 15: 42.4% OF U.S. MOBILE OWNERS USE MOBILE MEDIA, comScore 12 2,000 16: TEXT MESSAGING SECOND MOST COMMON ACTIVITY, Nielsen 13 17: RIM LEADS FOR SMARTPHONE SHARE, comScore 15 18: SMARTPHONES ARE 27% OF ALL PHONES, comScore 16 19: ANDROID IS NOW A BRAND CONSUMERS DESIRE, ChangeWave 16 20: THE AVERAGE MOBILE-MEDIA USER IS 32, comScore MobiLens 17 21: MOBILE INTERNET (WAP) USERS GROW MONTHLY,Nielsen 18 22: SEARCH, E-MAIL, SOCIAL NETWORKING ARE TOPS, comScore 19 23: MOBILE CONTENT ALMOST HALF OF MOBILE WEB ADVERTISING, comScore 19 DESKTOP INTERNET USERS 24: LEADING MOBILE WEB AD CATEGORIES, comScore 19 20 0 MOBILE INTERNET USERS 25: WEATHER IS TOP APP CATEGORY FOR USAGE, comScore 26: TOP FREE APPS DOWNLOADED ON IPHONES IN 2010, Distimo 20 2007 2015 27: MOBILE WEB USED MOST BY MARKETERS, BUT WEALTH OF OPTIONS, Source: Morgan Stanley, April 2010 Association of National Advertisers 22 28: WOMEN WANT SMS ALERTS ABOUT GROCERIES, BEAUTY AND FASHION, MEN WANT ELECTRONICS, Placecast/Harris 23 29: APPS USED FREQUENTLY/VERY OFTEN,The Weather Channel 24 iAds—and the realization that Apple would now be in the business 30: MOBILE AD EFFECTIVENESS, Insight Express 24 of creating ads. 31: MOBILE VS. ONLINE BANNER AD DIFFERENTIAL, Dynamic Logic 25 Mary Meeker, then of Morgan Stanley and one of the few ana- lysts who emerged unscathed from the dot-com bust, delivered 32: PRICES FOR PAID APPS SOFTENED IN 2010, Distimo 25 several speeches concerning the power of mobile computing— 33: APPS REACH JUST 24% OF U.S. POPULATION, Pew/Nielsen 25 including the Brobdingnagian, 659-slide Mobile Internet Report 34: APP DOWNLOADERS VARY BY PHONE TYPE AND BRAND, Nielsen 27 from December 2009, which actually offered many more than 659 35: EVEN ON THE IPAD, FREE AD-SUPPORTED APPS GROWING, Distimo 27 reasons why mobile’s moment is now. Reason No. 1: By midyear 36: MOBILE VIDEO WATCHED MORE THAN WIRED WEB, Nielsen 28 2013, mobile internet usage will surpass desktop usage (see chart 37: AUTO IS BIG ADVERTISER IN MOBILE VIDEO, Rhythm New Media 29 1). In April 2010, Meeker followed with an 87-page update featur- 38: MOBILE SEARCH: ONWARDS AND UPWARDS, Performics 30 ing still more reasons, including mobile-couponing potential. By 39: ANDROID USERS MOST LIKELY TO SCAN BARCODES, Compete 31 November,she addressed the Web 2.0 Summit with “10 Questions Internet Execs Should Ask and Answer.” Question No. 2: “Mobile 40: SMARTPHONE USED FOR RETAIL-RELATED ACTIVITIES, Compete 31 is ramping faster than any ‘new new thing’—is your business 41: BIG 3 MOBILE AD NETWORKS CONTROL MOST MOBILE DISPLAY, IDC 34 leading or lagging?” This was one of her last public appearances before leaving Morgan Stanley for Kleiner Perkins, the venture- Sources: 360i, AdMob, AKQA, The Association of National Advertisers, Apple, Bite Sized Candy, Catalina Marketing, Change Wave Research, Compete (Kantar Group), comScore, capital fund that backed mobile startups including Shopkick, Crisp Wireless, Distimo, Dynamic Logic, Flurry, Google, Ground Truth, The Hyper Factory, IDC, Insight Express, Kaiser Family Foundation, Mobile Marketing Association, Millennial Media, Booyah, Shazam and Zynga Mobile. Mobclix, Morgan Stanley, Moxie Interactive, The Nielsen Co., ORMMA, Pandora, Pew Research, Performics, PhoneValley (Publicis), Placecast, Rhythm New Media, The Weather Standing in for Time “Man of the Year” Mark Zuckerberg, Channel | March 14, 2011 | 3 20110228-SUPP-WP2--0001,0002,0003,0004,0005,0006,0007,0008,0009,0010,0011,0012,0013,0014,0015,0016,0017,0018,0019,0020,0021,002 WHITE PAPER WHAT YOU NEED TO KNOW ABOUT MOBILE MARKETING 2011 Facebook’s CTO Bret Taylor told an audience of developers at the CHART 2 Inside Social Apps conference on Jan. 25: “Mobile is our primary focus for our platform this year.” MOBILE AD SPENDING It’s full-steam-ahead mobile for three of the most highly capitalized media companies in the world.
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