2. Agenda
â˘âŻ The mobile landscape
â⯠Itâs hard to deďŹne ROI, let alone achieve it
â˘âŻ A new paradigm
â⯠The rules of marketing and advertising are changing.
â˘âŻ Examples
â⯠Whoâs doing it right?
Š Mobext 2012 mobext.com 2
4. THE MOBILE LANDSCAPE
What you already know
1.⯠Mobileâs really, really big.
2.⯠Itâs changed how we communicate and interact.
3.⯠Itâs breathtakingly efďŹcient, cheap and offers a better user experience then ever.
4.⯠The future is already here.
â⯠Itâs just not yet evenly distributed
Š Mobext 2012 mobext.com 4
5.
6.
7. So, whyâs it so difďŹcult to make a business model work?
â˘âŻ For publishers?
â˘âŻ For advertisers?
Š Mobext 2012 mobext.com 7
8. Publishers
â˘âŻ Many competing businesses âtrying to eat the publisherâs lunchâ
â⯠Platforms
â⯠Operating systems
â⯠Device manufacturers
â⯠Ad networks
â˘âŻ All trying to âownâ the consumer / âownâ the advertiser experience
â˘âŻ Many players are duplicating efforts, while ignoring other areas altogether
Š Mobext 2012 mobext.com 8
9.
10.
11. The dismal state of mobile monetisation
â˘âŻ Potential catastrophe awaits publishers who donât get their business models right.
â˘âŻ Only a few players getting it right.
Š Mobext 2012 mobext.com 11
12.
13.
14.
15. HTML5
FT.com learnings
â˘âŻ Didnât just disappear when they abandoned the app store
â˘âŻ Discoverability was no problem
â⯠In fact, it was easier for them to promote the app
â˘âŻ You can forge your own direction is you are prepared to do so.
Š Mobext 2012 mobext.com 15
16.
17.
18.
19.
20.
21. Advertisers
â˘âŻ Brands spend very little on mobile
â⯠1% of total ad spend (BUT, this excludes non-media expenditure)
â⯠Most marketing departments have no dedicated mobile resources / time
â˘âŻ The budgets barely cover the basics
â⯠App / mobile site development
â⯠Limited marketing campaigns to support these
â˘âŻ Work is therefore limited to adaptation of PC services / content to the small screen
â⯠Almost no chance of developing for mobile
â⯠Let alone device-speciďŹc strategies
Š Mobext 2012 mobext.com 21
22.
23.
24. And yetâŚ
"It's not about the size of the screen,
or the size of the ad,
it's the size of the audience, and
the depth of engagement.â
- Rohit Dadwal, MMA Apac
Š Mobext 2012 mobext.com 24
25. A Self-fulďŹlling prophecy?
â˘âŻ Achieving ROI with no investment is impossible
â⯠A recent example from a travel client.
â˘âŻ Total media budget: $3.4m (4 countries, 4 weeks)
â˘âŻ Mobile budget: $80k (2.4%)
â⯠No mobile booking function yet, so client unwilling to allocate more than that.
â˘âŻ Addressable market (3G connectivity / 20-49 years / mobile & tablet)
â⯠CN: 51.7m
â⯠ID: 11.2m
â⯠MY: 2.9m
â⯠SG: 2.3m
â˘âŻ Weighted budget
â⯠CN: $61k
â⯠ID: $13.1k
â⯠MY: $3.1k
â⯠SG: $2.7k
Š Mobext 2012 mobext.com 25
26. So whatâs the optimal budget allocation, then?
Š Mobext 2012 mobext.com 26
27. So whatâs the optimal budget allocation, then?
7% on mobile
(Septemberâs MMA / Marketing Evolution study)
Š Mobext 2012 mobext.com 27
34. Yet, âthe 7% answerâ is still not entirely clear
â˘âŻ The myth: âMobile campaigns reach everybodyâ
â⯠Donât mix up numbers (eg SMS reach) in campaign planning
â⯠Each mobile channel is a distinct market
â˘âŻ Mobile canât be a convenient anytime / any place extension of your other campaigns
â˘âŻ There are numerous distinct communities and behaviours within mobile
â⯠Social networks
â⯠Mobile gaming
â⯠Web content
â⯠In-app content
â˘âŻ âŚand many more
Š Mobext 2012 mobext.com 34
35. The challenge
â˘âŻ To âoverinvestâ your time and energy in mobile now
â⯠Even if you have far less budget to work with
â˘âŻ Stop looking at your media budget for answers
â⯠Mobile should form part of the actual brand experience, not just advertising
â˘âŻ The Risk: failing to stop and think will damage your brand
â⯠We see it all the time.
Š Mobext 2012 mobext.com 35
36. THE MOBILE LANDSCAPE
The industryâs plagued by antisocial practices
â˘âŻ A property developer walks into a barâŚ
â⯠10,000 SMSs > 2 sales
â˘âŻ Interruptive, disrespectful, unsustainable
â⯠These guys arenât alone
â˘âŻ Mobile carriers, banks, many othersâŚ
Š Mobext 2012 mobext.com 36
39. THE MOBILE LANDSCAPE
Why are these problems so prevalent?
â˘âŻ Mobile interaction is one-to-one
â⯠That gives cover for otherwise respectable companies to pass the âred faceâ test
â⯠Marketing heads plead ignorance (or turn a blind eye)
â⯠Brand guidelines donât yet cater for mobile
â⯠Recipients tend to âavoid the noiseâ
Š Mobext 2012 mobext.com 39
40. THE MOBILE LANDSCAPE
Insidious damage
â˘âŻ Bad practices are usually not bad enough to cause torrents of complaints
â⯠Itâs a gradual erosion of trust
â˘âŻ The damage done is seldom intentional
â⯠Usually, itâs the result of someone taking a shortcut
â⯠Although sometimes, lack of consideration is acknowledged and intentionalâŚ
Š Mobext 2012 mobext.com 40
41. THE MOBILE LANDSCAPE
âSpray and prayâ
â˘âŻ Mass is no excuse for lack of appropriateness
â⯠âWith this many impressions, weâre bound to reach someone in our target market!â
â˘âŻ Is that really what you want?
Š Mobext 2012 mobext.com 41
42. THE MOBILE LANDSCAPE
No time to think!
â˘âŻ Oh no! They asked for âsomething mobileâ!
â⯠Can you put down some quick ideas by lunchtime?
Š Mobext 2012 mobext.com 42
43. THE MOBILE LANDSCAPE
Enough, already
â˘âŻ The industry badly needs to
â⯠Stop shouting at a faceless crowd
â⯠And start having respectful conversations
â˘âŻ Decide that weâre in it for the long haul
â⯠Build relationships
â⯠Establish trust
â⯠Earn a customerâs lifetime value
Š Mobext 2012 mobext.com 43
44. THE MOBILE LANDSCAPE
Mobileâs personal
â˘âŻ Everything we do affects customers intimately and immediately
â⯠Thereâs no escape!
â˘âŻ It requires that brands form a new kind of relationship
â˘âŻ It requires an authentic, personal conversation
Š Mobext 2012 mobext.com 44
45. THE MOBILE LANDSCAPE
We need to redeďŹne âRâ
â˘âŻ Itâs no longer this easy:
Carrier
Licensing
Media cost
Revenue
Billing provider
Š Mobext 2012 mobext.com 45
46. THE MOBILE LANDSCAPE
So, how to redeďŹne ROI?
â˘âŻ Weâre playing a longer game now
â˘âŻ We need new measures for success
â˘âŻ Itâs getting more complicated
â⯠No longer just about instant revenues
â˘âŻ A reputation built slowly can be damaged very quickly
Š Mobext 2012 mobext.com 46
47. THE MOBILE LANDSCAPE
The new model⌠is something like the old model?
Š Mobext 2012 mobext.com 47
48. THE MOBILE LANDSCAPE
Itâs an ongoing conversation
A deliberate, considered approach spans a range of brand activities:
â˘âŻ Brand exposure
â˘âŻ User engagement
â˘âŻ Building a permission database
â˘âŻ Gaining consumer insight (user data)
â˘âŻ Making a sale
Š Mobext 2012 mobext.com 48
51. THE NEW PARADIGM
The new paradigm > A new set of rules
1.⯠Listen
2.⯠Interrupt gracefully (if at all)
3.⯠Reduce the noise
4.⯠Be authentic
5.⯠Whisper, donât shout
6.⯠Understand context
7.⯠Build a platform
Š Mobext 2012 mobext.com 51
52. THE NEW PARADIGM
1. Listen
â˘âŻ It starts with listening.
â⯠Who are your customers?
â⯠How do they interact (with you, with each other)?
â⯠How do they use technology?
â⯠If unsure about their motivations, ask!
â⯠Ask âWhy?â â a lot.
â˘âŻ The result:
â⯠Respectful, relevant interaction.
Š Mobext 2012 mobext.com 52
53. THE NEW PARADIGM
The new paradigm > A new set of rules
1.⯠Listen
2.⯠Interrupt gracefully (if at all)
3.⯠Reduce the noise
4.⯠Be authentic
5.⯠Whisper, donât shout
6.⯠Understand context
7.⯠Build a platform
Š Mobext 2012 mobext.com 53
54. THE NEW PARADIGM
2. Interrupt gracefully (if at all)
â˘âŻ Advertising has always been brash, but weâve reached a watershed:
â⯠Shouting for attention is no longer a virtue (especially such a personal, direct channel)
â⯠Itâs exhausting, and it makes your brand appear insecure and desperate
â˘âŻ Make sure that interruption is a
conscious choice, not a default setting.
â˘âŻ âItâs not advertising if itâs relevant and
usefulâ
â focus group respondent.
Š Mobext 2012 mobext.com 54
55. THE NEW PARADIGM
"Marketing by interrupting people isnât cost-effective anymore.
You canât afford to seek out people and send them
unwanted marketing messages, in large groups, and
hope that some will send you money.â
- Seth Godin
Š Mobext 2012 mobext.com 55
56. THE NEW PARADIGM
The new paradigm > A new set of rules
1.⯠Listen
2.⯠Interrupt gracefully (if at all)
3.⯠Reduce the noise
4.⯠Be authentic
5.⯠Whisper, donât shout
6.⯠Understand context
7.⯠Build a platform
Š Mobext 2012 mobext.com 56
57. THE NEW PARADIGM
3. Reduce the noise
â˘âŻ Customers everywhere have access to more data and stimulus than ever.
â˘âŻ We face a wall of white noise â people shouting for our attention.
â⯠Impinging on us in the physical and digital world.
Š Mobext 2012 mobext.com 57
58. THE NEW PARADIGM
Filtering out the noise makes us happier
â˘âŻ Weâll even pay for it.
â⯠Not just in premium / ad-free versions of sites and apps,
â⯠But to remove ads from our devices themselves...
Š Mobext 2012 mobext.com 58
59.
60. THE NEW PARADIGM
Filtering tools are evolving
â˘âŻ There are more tools than ever to protect us from unwanted noise
â⯠And there will be more on the way
â˘âŻ ⌠especially with a wide market willing to pay $15 per user per device!
â˘âŻ So, if youâre contributing more noise than value, customers will ďŹlter you out,
â⯠and then, you simply wonât exist in their world.
Š Mobext 2012 mobext.com 60
61. Caveat: Less noise â less information
â˘âŻ The problem isn't the amount of data that we're receiving.
â⯠More useful information is a good thing.
â⯠It's that data needs to be presented more intelligently.
Š Mobext 2012 mobext.com 61
73. THE NEW PARADIGM
The new paradigm > A new set of rules
1.⯠Listen
2.⯠Interrupt gracefully (if at all)
3.⯠Reduce the noise
4.⯠Be authentic
5.⯠Whisper, donât shout
6.⯠Understand context
7.⯠Build a platform
Š Mobext 2012 mobext.com 73
74. THE NEW PARADIGM
4. Be authentic
â˘âŻ Consumers are looking for authenticity
â⯠Brands with a back-story
â⯠Artisan-made / natural over artiďŹcial /
ethics over proďŹts
â˘âŻ Accept that you donât own your brands,
your consumers do.
Š Mobext 2012 mobext.com 74
75. THE NEW PARADIGM
Right now, just two groups connect with mobile users in an authentic way:
1.⯠A handful of global corporations
2.⯠A multitude of small, nimble brands
â⯠They can't help but speak with an authentic human voice
â⯠They have genuine conversations
â⯠There's no corporate ďŹrewall to hide them from view
Š Mobext 2012 mobext.com 75
76. THE NEW PARADIGM
â˘âŻ Learning to speak in a human voice isnât some trick.
â⯠Lip service about "listening to customers" won't do the job either.
â˘âŻ Intelligent, approachable humans exist in (almost) all companies.
â⯠Real human beings with Twitter followings and meaningful Facebook connections.
â⯠Humans who are imminently qualiďŹed to make contact with the outside world.
â˘âŻ Donât handicap your organisationâs ability to deliver genuine knowledge,
â⯠Donât crank out sterile happy-talk that insults the intelligence of markets who are too smart
to buy it.
Š Mobext 2012 mobext.com 76
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
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88.
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93.
94.
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96.
97.
98.
99.
100.
101.
102. THE NEW PARADIGM
The new paradigm > A new set of rules
1.⯠Listen
2.⯠Interrupt gracefully (if at all)
3.⯠Reduce the noise
4.⯠Be authentic
5.⯠Whisper, donât shout
6.⯠Understand context
7.⯠Build a platform
Š Mobext 2012 mobext.com 102
103. THE NEW PARADIGM
5. Whisper, donât shout
âIn a room full of people shouting,
Itâs the person whoâs whispering
Who becomes most interesting.â
Š Mobext 2012 mobext.com 103
104.
105.
106.
107.
108. THE NEW PARADIGM
The new paradigm > A new set of rules
1.⯠Listen
2.⯠Interrupt gracefully (if at all)
3.⯠Reduce the noise
4.⯠Be authentic
5.⯠Whisper, donât shout
6.⯠Understand context
7.⯠Build a platform
Š Mobext 2012 mobext.com 108
109. THE NEW PARADIGM
6. Understand the power of context
⌠and learn to spot opportunities for value exchange.
â˘âŻ We can be reached at work, on holiday, in a meeting, in bed
â⯠at moments of boredom, excitement, loneliness, inspirationâŚ
â˘âŻ Understand these contexts,
â⯠then identify moments of value exchange.
Š Mobext 2012 mobext.com 109
110. THE MOBILE LANDSCAPE
For the ďŹrst time ever, advertisers have to ask:
âWhy might this person
care about my brand
at this moment?â
Š Mobext 2012 mobext.com 110
111. Put another wayâŚ
Mobile has enabled you
to be closer than ever to your consumers.
As marketers, weâve never
had this kind of potential.
Š Mobext 2012 mobext.com 111
112. THE NEW PARADIGM
The new paradigm > A new set of rules
1.⯠Listen
2.⯠Interrupt gracefully (if at all)
3.⯠Reduce the noise
4.⯠Be authentic
5.⯠Whisper, donât shout
6.⯠Understand context
7.⯠Build a platform
Š Mobext 2012 mobext.com 112
113. THE NEW PARADIGM
7. Build a brand platform
â˘âŻ Campaigns: episodic outbound messages across a channel
â⯠Goal: âtell people about thatâ
â˘âŻ Platforms: fuelled by the campaigns
â⯠Must be utilitarian
â⯠Must serve a community
â⯠Goal: To be interesting / useful enough to adopt
â˘âŻ Never a hard sell
Š Mobext 2012 mobext.com 113
114. CommodiďŹcation
â˘âŻ Consumers are spoilt for choice, and better informed that ever.
â˘âŻ Overwhelmed with equivalent goods and services.
â⯠Is your hamburger / hatchback / ďŹzzy drink really better than the others?
â˘âŻ Brands need to work harder to differentiate
â⯠They need something more than a great brand story.
Š Mobext 2012 mobext.com 114
115. The remedy
â˘âŻ Platforms provide:
â⯠A community, a niche, a sense of belonging
â⯠An identity
â⯠A set of behaviours
Š Mobext 2012 mobext.com 115
116. Platforms start with permission
â˘âŻ ⌠which is the nicest thing a customer can give you.
Š Mobext 2012 mobext.com 116
120. WRAPPING UP
Wrapping up
1.⯠Listen
2.⯠Interrupt gracefully (if at all)
3.⯠Reduce the noise
4.⯠Be authentic
5.⯠Whisper, donât shout
6.⯠Understand context
7.⯠Build a platform
Š Mobext 2012 mobext.com 120
121. WRAPPING UP
Where to start?
â˘âŻ Start by allowing customers to grant you permission to talk to them
â⯠And please, donât be anything like that property developer.
Š Mobext 2012 mobext.com 121
122. WRAPPING UP
One ďŹnal thought
âYou donât do mobile because itâs big and
because itâs growing. You do it
because it works.â
- Brian Colbert.
Š Mobext 2012 mobext.com 122