Warc Trends Mobile Marketing (Summary Version) >> Find the Right Mobile Strategy for Your Brand

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warc trends mobile marketing (summary version) >> Find the right mobile strategy for your brand

his report is based on the rapid bundle of technology that comes in a This is a evolution of mobile technol- modern phone – cameras, voice and summary Togy, and the enthusiasm with image recognition, QR code readers, Mobile is version of which it has been embraced. These GPS, and a host of new features. dramatically Warc’s Mobile developments have transformed mo- changing Marketing bile as a marketing channel. Mobile Apps make the difference the way Trend Report marketing spend across the world For marketers, mobile’s breakthrough is starting to rise significantly. In the came in 2008, when Apple launched people are right circumstances, mobile can be a the App Store. Apps provided brands shopping Click here to powerful tool. Mobile check-ins are useful loyalty with a new ‘way in’ to mobile that download the The rise of smartphones and was easy for consumers to use, and and ex- full version tablets has deepened the relation- relatively cheap to make. changing ship between consumers and their Apps are still an important feature information devices. The connectivity and tech- of the mobile marketing landscape. Heather Hopkins nology they give to consumers are Heineken developed the Star Player Freeland, CMO, helping to drive several consumer app to activate a sponsorship, and Gilt City trends, including ‘smart boredom’ charity DePaul’s iHobo showed that and ‘gamification’. They also trans- apps could work well for not-for-profit form mobile as a marketing channel. organisations. However, it’s become Mobile had always had reach (the clear that for every successful brand- sheer number of handsets in circu- ed app, there are many failures. lation) and location (the fact that Gilt City tracks iPad-based sales Brands have to think carefully about phones go wherever the consumer what they want an app to do, and in goes) in its favour. Now it has much what context it will be used. more besides. All of this means that mobile is One of the iPhone’s achievements a far more versatile marketing tool was to abolish the idea that the than it ever was in the past. Increas- ‘mobile web’ had to be a different, ingly, it is being used as a brand- lower-grade experience compared building channel. Youth-focused to the PC-based web. Smartphones brands such as Axe/Lynx have recog- have opened up areas like mobile nised the power of mobile for several search and mobile social networking years, but the growing penetration like never before. Added to this is the Barclaycard turned an ad into an app of smartphones among older

demographics is creating new oppor- when brands find creative ways to hands, and that mobile will offer This is a tunities for brands such as IBM. New use simple technology such as SMS. something new. summary ad platforms such as Apple’s iAds 4% For example, Vim in Vietnam put S econd, they should ask what mo- version of may offer new ways to put engaging Mobile’s pre- SMS at the heart of a campaign to bile can add – is it just extra reach, Warc’s Mobile content in front of consumers. dicted share of build toilets in schools. or are they using it to enhance Marketing Mobile is also becoming a crucial global adspend other aspects of their marketing? by 2015 Trend Report loyalty tool for brands including Planning mobile campaigns Finally, they should think care- Coca-Cola – some have reconfigured Source: Gartner With all this in mind, how should a fully about metrics. There is no their loyalty schemes around mobile. marketer plan for mobile? catchall measure of mobile ROI; Click here to Mobile is particularly powerful when marketers are better off thinking download the used alongside real-life events. First, they must be sure a mobile about how to join up the imperfect full version M-commerce is small but growing, solution is right for their audience measures that do exist with their and technology such as near-field – that the technology is in the right own brand health scores. communication may make contact- less payment via mobiles a reality in the near future. But it’s clear mobile does more than just enable transac- tions. It has a role throughout the path to purchase, whether consumers want to search for a product, read reviews, or look for coupons. Compa- nies such as Kraft and Korea’s Home Plus have applied these insights For marketers in some of the world’s emerging markets, mobile will be more important as a channel than the PC-based internet. Mobile offeris consumers outside the major cities their first taste of the internet. As a result, mobile has huge poten- tial for marketers looking to reach these emerging consumer classes. The most interesting examples are DePaul saw success with an app Axe used mobile to build its brand in Japan

key insights This is a summary Smartphones have enabled ‘digitally Mobile version of 1 enhanced downtime’, by making enables you Warc’s Mobile information and entertainment avail- to reach the Marketing able to consumers on their commute, best friend Trend Report for example. of 2 billion Click here to consumers Tablets are changing the game again, download the worldwide full version 2 providing enhanced content options William Ogle, and becoming the ‘new second screen’. CMO Motorola Mobility Smartphone penetration varies 3 by consumer demographic (particularly age) and by the infrastructure of the market they live in.

Marketers must understand how their 4 audience uses mobile devices if they are to build a credible mobile strategy. Different audiences require different approaches.

Smart boredom This is a summary 1 Mobile allows consumers to use ‘downtime’, such as commutes, more version of productively – for example, accessing news or completing small online Warc’s Mobile tasks while on the move. Marketing Trend Report The play ethic The ‘gamification’ trend is wider than just mobile, but mobile technology Click here to 2 download the takes it to a new level. Consumers can fill spare moments with gaming full version (a form of ‘smart boredom’). And location-based features of phones allow brands to set up games that cross into the real world – mobile-driven treasure hunts, for example.

The quantified self 3 Consumers are able to use mobile applications and technology to gather data on themselves, analyse it, and track progress toward goals. For example, if somebody is training for a marathon, they can use GPS technology to track how far their training runs are taking them and how fast they are going. This gathering and processing of real-time data has applications in all sorts of areas, including healthcare and finance.

Multi-screen viewing 4 Media consumption behaviour is being transformed by multiscreen viewing. Connected mobiles and tablets increase consumers’ ability to comment on TV content, or to track down information related to it, in real time. They can even watch two things at once.

smartphone usage across five key markets KEY FACTS This is a summary What smartphone users do with their mobiles (%) Smartphone penetration is version of growing rapidly. It stood at 38% US UK France Germany Japan Warc’s Mobile in late 2011, with the UK on 45%, France 38%, and Germany 23%. Marketing 73 64 72 71 79 Trend Report Data from Google and Ipsos 87 85 82 85 59 shows that smartphone own- Click here to ers use their phones for a more download the 82 68 82 65 75 diverse array of activities than full version non-smartphone users. The research reveals very high 29 28 17 28 45 usage in areas such as online video and social networking. A Online video Social networking In stores Purchasing sizable minority use phones to make purchases, Source: Google/Ipsos, quoted on Warc October 2011; original study by Google and Ipsos However, one issue facing mar- US smartphone platform share January 2012 (%) keters is fragmentation of the smartphone market. Although Apple dominates the headlines, Google’s Android operating system has the biggest mar- Apple 29.5 ket share in the US, and RIM retains a chunk of the market. Google 48.6 Microsoft is attempting to catch up through a deal with Nokia. RIM 15.2 Microsoft 4.4 Symbian 1.5 Palm 0.8 Source: comScore

KEY INSIGHTS This is a summary Mobile’s strengths are scale, location, Mobile is version of 1 connectivity and the sophisticated tech- now an Warc’s Mobile nology that comes in modern phones. opportunity Marketing Understanding how to combine these to engage Trend Report strengths is key. consumers Click here to in a targeted New forms of display ads, mobile download the and contex- search and social networking, and full version 2 tual manner technology such as image recognition Stephanie are finally leading to increased mobile Baghdassarian, marketing budgets. research director, Gartner Smartphones are transforming formats 3 such as couponing and search, alongside new ‘mobile-led’ formats such as augmented reality or QR codes.

Marketers should be looking at the 4 emerging area of m-commerce, which is expanding rapidly in both developed and developing markets.

Mobile Advertising Revenue by Region KEY FACTS This is a summary Worldwide 2008-2015 ($ millions) Gartner expects mobile to grow version of from an average of 0.5% of total North America Warc’s Mobile 304.3 ad budgets in 2010 to more than 4% by 2015. Asia-Pacific Marketing Western Europe Trend Report 257.1 and Japan could secure $1.6 2010 billion in revenues this year, Asia/Pacific and Japan Total 1,627.1 rising to $6.9 billion in 2015. The Click here to 868.8.1 Rest of the World Asian spend is mainly driven by download the Japan; despite a huge mobile 196.9 full version audience, China’s mobile ad market remains tiny, due partly to infrastructure issues. 701.7 Key to growth are new formats 569.3 such as in-app advertising, 2011 video and paid-for mobile Total 3,309.9 1,628.5 search. These have only become serious options thanks 410.4 to the rise of smartphones. Formats such as SMS are not expected to grow as quickly.

5,791.4 Tech giants such as Apple and Google are fighting over this 5,131.9 space. Apple launched its iAd 2015 mobile advertising platform in Total 20,610.0 6,925.0 2010, while Google acquired mobile ad network AdMob in 2,761.7 2009 for $750 million.

Source: Gartner, quoted by Warc News June 2011

key insights This is a summary Mobile has a number of roles within Brands version of 1 the media mix: it can expand a brand’s should look Warc’s Mobile marketing reach, be a response channel for ‘mobile Marketing or enhance other media activity. moments’: Trend Report opportunities There are clear links between mobile Click here to to augment and other media. Mobile can play a download the 2 their work key central role in a campaign, but is full version with utility, often best used in combination – as The immediacy Economist found in an Indian initiative. and contex- A lack of clear mobile metrics and a tuality, and 3 fragmented mobile industry have held align it with clients back from investing. Neither of business these issues will be resolved soon. objectives Scott Seaborn, Head of Mobile Like social media, mobile is a not a Technologies, 4 one-dimensional channel with a single Ogilvy Group UK use; it’s a platform that can be used dif- ferently, depending on client objectives.

marketers’ views on mobile KEY FACTS This is a summary Marketers’ views on issues facing mobile (%) When channel planning in version of mobile, marketers face a number Warc’s Mobile 21 21 17 15 of issues. One is the lack of 31 Marketing 39 40 standardised metrics. In a US survey of marketers, 69% said Trend Report 34 29 43 this was of high or medium 42 38 importance in determining their Click here to 33 30 investment in the channel. download the 38 full version 44 24 28 A second issue is the sheer 22 21 21 fragmentation of the mobile 13 13 12 9 6 7 9 landscape. Will a campaign Lack of Lack of Lack of Limited Device OS Privacy Lack of global work on different types of standardised standardised agency opportunity fragmentation issues mass-market phone, or different types of metrics formats expertise for creativity inventory network? In the same US study, Importance: High Medium high Medium low Low 72% said that operating system fragmentation was an issue of high or medium importance. Marketers’ goals for mobile (%)

Increase brand awareness 93 Marketers now have multiple goals for mobile, and most see it as a tool for awareness, Increase engagement 86 engagement, sales and loyalty.

Drive sales in general 83 The same survey found that almost 50% of companies do Support for specific promotions 86 not have mobile as part of their formal marketing programme, Customer relationship marketing 77 or they do it on an ad-hoc basis because they feel they should. Source: Interactive Advertising Bureau (US), ‘Marketer Perspectives on Mobile Advertising’, quoted on Warc July 2011

Featured case studies This is a Contents summary 1 Wyeth Gold, Warc’s Mobile Marketing Trend version of 1 Hong Kong 4 Report features eight chapters. Warc’s Mobile Each offers analysis, case stud- Marketing 2 Lynx, UK ies, data and action points. Trend Report 3 Johnnie 1 T he Consumer Landscape Walker, US Technogy and consumer trends Click here to download the 4 Land Rover, 2 N ew Marketing Opportunities full version Austria The options open to brands

2 5 Vim, Vietnam 5 3 A pps: Mobile’s Game-Changer Creating successful apps 6 The Econo- mist, India 4 M obile as a Brand-Builder Mobile’s role in brand campaigns

5 M obile as a Loyalty Tool Adding value to CRM activity

6 M obile as a Sales Driver 3 The new path to purchase

7 M obile in Emerging Markets 6 Reaching new consumers

8 M obile Channel Planning Where does mobile fit in?

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