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2014 Mobile Marketing by Numbers
1. Mobile Marketing
By the Numbers
Your personal guide to the ever-changing mobile marketing landscape
2. The future is callingâand
itâs using a smart device.
By 2020 there will be 75 billion devices
connected to the Internet of Things. Yes,
some of those devices will be fridges
and air conditionersâbut considering
there are only about seven billion people
on the planet, itâs clear that if marketers
want to talk to their customers, theyâre
going to have to develop a smart mobile
strategy that goes beyond banner ads.
What follows is a collection of articles
meant to catalyze you into action. Con-
sumers are hyper-connected and tran-
sitioning to mobile at unprecedented
speed; your marketing strategy needs to
keep up.
2
3. By Al Urbanski
M
obile devices currently claim a mere 16% of the
video ad spend, but their share will balloon to
40% in five years due to the rapid adoption of
video viewing on devicesâespecially tablets. According
to an eMarketer forecast, Americans already watch more
video on mobile devices than on PCs.
Still, desktop spending will continue to dominate vid-
eo media in 2014, claiming $4.45 billion to mobileâs $1.44
billion, says eMarketer. By 2018, however, mobile spend-
ing is figured to hit $5.44 billion, compared to $6.83 bil-
lion for desktop.
A big reason for this, says the researcher, is the tabletâs
replacement of the desktop and laptop computer in many
American homes. More than three quarters of the 113 mil-
lion tablet users in the U.S. watch videos on the device at
least once a month, and eMarketer sees penetration rising
to 87% in five years.
As for video viewing time, mobile is already dominant,
claiming 33 minutes a day to desktopâs 22 minutes. Emar-
keter predicts that video viewing on tablets will increase
by 54% this year to 20 minutes a day, while smartphones
will rise 44% to 13 minutes.
Mobile Video Ad Dollars to Rival
Desktop in Five Years
People already watch more video on smartphones and tablets than they do on desk-
tops and laptops.
Hold the Phone
250MNumber of smartphones
sold worldwide in 3Q 2013
Gartner
$3BMobile ad spending
in first half of 2013
Interactive Advertising Bureau
85%Share of consumers
receptive to mobile coupons
Yankee Group
25%Share of consumers
already using
mobile coupons
Yankee Group
3
4. By Perry Simpson
T
hereâs never been a more critical time to opti-
mize your mobile marketing efforts. Keep these
doâs and dontâs in mind and youâll be on your way
to success:
DEEP-LINKING
Apps stand as the most integrated and seamless user ex-
periences in mobile, simply by virtue of being created
for the sole purpose of mobile use. It follows then that
emails or links on mobile sites should link to apps, espe-
cially if the brand already has a mobile app. âApps like
Seamless make great use of deep-linking,â says Jordan
Cohen, VP of marketing at email platform Movable Ink.
âItâs unintuitive to link from email to a mobile website
when your brand has a functional app. Itâs a missed op-
portunity at best.â
INVEST IN VIDEO
The widespread popularity of video apps such as Vine
and YouTube make mobile the premiere channel for vid-
eo content. Even Instagram, an app previously used ex-
clusively for photos, instituted a video feature in the wake
of the video craze following apps such as Vine. âHaving
video content is really important these days,â says Chris-
topher Lester, director of the concierge team at email mar-
keting service provider Emma Inc. âPeople spend more
time watching video on smartphones and tablets than
they do on desktops, with people watching the most video
on tablets. I might not spend time reading on my phone,
but Iâll watch a video.â
DONâT TRY TO MONETIZE EVERYONE IMMEDIATELY
Generally, users who download apps and then abandoned
them or use them infrequently arenât likely to resume use
if theyâre prompted to pay. Indeed, experts recommend
that monetization come after a fair bit of nurturing, and
only if the user is already engaged with the app. Engage-
ment doesnât start with a download. âTry to turn a new app
customer into an engaged customer as soon as possible,â
says Len Shneyder, senior marketing manager at mobile
marketing platform OtherLevels. âYouâre missing the fore-
play bit if you start immediately trying to monetize new
users. You need to move them up the funnel.â
ALL RESPONSIVE EVERYTHING
The importance of responsive design simply canât be
overstated. Emails and websites absolutely must be opti-
mized for mobile. âIt used to be best to get your site or
email crafted first, and then make sure itâs optimized
for mobile. Mobile should come first now, especially for
email,â Lester explains.
âIf websites arenât optimized for mobile then banner
ads become increasingly ineffective,â adds Tom Bash,
manager of product strategy and operations at ad intelli-
gence and digital media solutions provider Exponential.
BE CAUTIOUS OF GEOLOCATION
With the impending frenzy around the âInternet of things,â
geolocation could become a major factor in mobile mar-
ketingââemphasis on could. Geolocation and other GPS-
based operations have proven major contributors to the
rampant battery issues ailing the mobile device market.
Beyond issues of battery, thereâs a fair bit of opting-in in-
volved in mobile location services. With the various data
and security concerns over the past few years, itâs unlike-
ly these opt-ins will increase significantly. âGeolocation is
a great, awesome idea, but generally only for about 1% of
your audience,â says OtherLevelâs Shneyder. âGeolocation
isnât at all useless, but it requires a different strategy. â
REDUCE TAP-THROUGH PATHS
Traditional email marketing has always focused on the
ubiquitous click-through rate. But many users can attest
to their waning attention span as forms or other actions
demand more and more clicks, or taps. âYou want to drive
consumers where you want them in as few taps as possi-
bleâ, Cohen says. âThe more taps, the less likely they are to
complete the action.â
6 Mobile Marketing Must-Haveâs
Responsive design is but one of many features experts say are essential to successful
mobile marketing.
42%of marketers say they rarely or
never use responsive design
Salesforce ExactTarget Marketing Cloud
4
5. By Perry Simpson
A
s consumers continue to adopt mobile in more
aspects of their daily lives, marketers are close
on their heels. However, even the most data-cen-
tric marketers find it challenging to analyze a key mobile
touchpoint: email.
One reason is the way customers interact with mobile
email. Often the mobile email experience doesnât extend
much farther than the inbox list. âA lot of people simply
arenât opening emails on their mobiles devices,â says
Craig Vore, insights manager at digital marketing com-
pany Outsell. âThey see the email in their notification bar
and wait until theyâre at a desktop computer to actually
view the message.â
Take Android users, for example. According to the de-
veloper dashboards page for Googleâs Android, more than
35% of Android devices run version 4.1, also known as Jel-
ly Beanâthe first version of Android to include email pre-
views in the notification bar by default. Smartphone users
donât have to open their emails when they can triage them
using a preview screen. Given Androidâs substantial 80%
mobile market share, according to market intelligence
company IDC, more than one third of target customers on
the most popular mobile operating system arenât actually
opening emails on mobileâif at all.
Even if recipients fully open an email message on their
mobile device, results might be skewed. Marketers of-
ten gauge open rates by image downloads, but Android
doesnât download email images by default, potentially
leading to dismal mobile email metrics.
EMAIL ANALYTICS IN A MOBILE WORLD
Where does this leave marketers? They canât afford to ig-
nore the Android platform, given its massive market share,
nor can marketers rely on iOSâs default image download
feature, which can favorably skew email performance.
Perhaps open rate is less than ideal for measuring mobile
email performance.
âOpen rate measures the quality of your subject line
and the quality of past messaging,â says Christopher Les-
ter, director of the concierge team at email marketing ser-
vices provider Emma Inc. âUnless opening the email is the
call-to-action, itâs a lost analytic.â
Dave Michaud, VP of product marketing at Oracle El-
oqua, echoes this sentiment. âOpen rates are not only an
unreliable metric regarding mobile devices, theyâre unre-
liable on other devices, as well, due to user preferences on
email clients,â Michaud notes. âTodayâs modern marketer
needs to consider all mobile touchpoints, such as email,
SMS, MMS, social, and apps.â
In fact, in terms of mobile email, marketers have pre-
cious little content real estate to engage their users. âYouâve
got the subject line. Thatâs it. About 14 to 16 words,â says
Jerry Jao, CEO and cofounder of customer retention solu-
tions provider Retention Science. âThat first paragraph is
where your money is going.â
This is one reason marketers may increase their use
of email to drive customers to mobile apps. âThe email-to-
app exchange investment needs to increase,â says Quinn
Jalli, SVP of digital marketing technology at Epsilon. âApps
can store payment and other information, and can be a
one-stop shop for users.â
Clearly marketers have options, but what of analyz-
ing the performance of these mobile marketing efforts? If
open rates arenât an effective success measure, what about
click-through rates or other engagement metrics? âEven
click-through rates are less telling than they used to be,â
Jalli says. âNot all clicks are equal. Where does that click
come from?â
The ultimate shift, according to Emmaâs Lester, lies in
where marketers place their efforts. âA lot of businesses
are looking for the next answer instead of learning their
audience,â Lester explains. âYou have to pay attention to
what your audience is doing, not these averages. Stop
holding yourself to open or click rates.â
Is the Inbox Out for Mobile?
Even the most data-centric marketers find it challenging to analyze a key mobile
touchpoint: email.
5
8. By Al Urbanski
M
ore than half of all local searches end in a pur-
chase, but 80% of local searches made on mobile
devices result in pay dirtâthree quarters of the
time in brick-and-mortar stores. This, despite the fact that
more local searchers surveyed for the 7th Annual Neustar
Localeze-15th Mile study preferred the quality of PC and
laptop search to mobile (67% to 50%). Some 85% of local
searches continue to be made on desktop machines.
That indicates bigger paydays for smarter mobile mar-
keters, and the route to the pot of gold is an easy one, says
the surveyâs sponsor. âWhen people are doing local search,
theyâre looking for the name and number of a business, but
now theyâre also looking for hours of operation and driv-
ing directions. Yet many businesses still donât provide this
information,â says Mike Pycha, executive director of Neus-
tar Localeze. âThereâs a tremendous opportunity here for
companies to gain a competitive edge.â
Mobile marketers also could benefit by paying closer
attention to their creative displays. Some 54% of the 3,000
consumers surveyed said the quality of screen designs in-
fluenced their purchase decisions.
More than 247 billion local searches took place in the
U.S. in 2013. About a third sought restaurants, 27% local
businesses, and 13% driving directions.
Four Out of Five Mobile Searchers
BuyâDespite Poor Search Quality
Study augurs huge upside for local businesses that provide their hours and
driving directions.
(P)honing in
on the Sale
$1TWorldwide mobile
transactions to
hit up to $1
trillion by 2015*
47%Marketers who
have an app**
30%Marketers
who leverage
location-based
functionality**
80%Marketers who say
that mobile will or
does provide ROI**
*Yankee Group
**Salesforce ExactTarget Marketing Cloud
8
9. By Al Urbanski
M
obile advertisers employed geo-precise targeting in
79% of their campaigns in the first quarter of 2014,
compared to only 58% of campaigns during the
same period last year, according to mobile ad platform xAdâs
evaluation of its traffic. Ninety-five percent of retail, restaurant,
and automotive brand campaigns were geo-precise.
Geo-precise ads target specific behavior or GPS coordi-
nates instead of cities or ZIP codes used in standard geo-tar-
geting. Such high usage levels had been observed previously
onlyduringholidayperiods,whentime-sensitiveconversions
are the paramount goals of promotions, according to xAdâs
Q1 overview, âReaching Your Audience on Mobile.â
Geo-location techniques vary slightly by vertical. While
retail, restaurants, and auto companies are the three biggest
users of mobile geo-location tactics overall, the three leading
verticals using xAdâs location-based demographic and behav-
ioral targeting services are telecoms, retailers, and entertain-
ment companies.
xAdâs clients include Columbia Sportswear, Dunkinâ Do-
nuts, Outback Steakhouse, and Pinkberry.
Geo-Precise Targeting Shows
Marked Rise
Nearly four-fifths of mobile ads in the first quarter homed in on specific locations and
behaviors, xAd reports.
The New Path to Purchase
74% Consumers who use mobile
search during the shopping process
6X Average number of times mobile users
who make a purchase visit mobile websites
15 hours Time spend on
mobile research by consumers every week
93% People who use mobile to
research who then go on to purchase
Google, Neilson
9
10. By Allison Schiff
J
ordan Cohen called it. When we last spoke with Co-
hen, VP of marketing at agile email company Movable
Ink back in August 2013, he predicted major growth
potential in the tablet market, noting that while still âin its
infancy,â it was definitely an area to watch. And just about
nine months down the road, here we are: According to
new research from Movable Ink, the number of marketing
emails opened on a tablet shot up from 13.8% in Q2 2013 to
18.5% in the first quarter of this year.
âFrom a consumer electronic shopping perspective, it
seems like more consumers are using tablets as their go-
to device, rather than the desktop,â Cohen says. âDesktops
wonât go away completelyâwe still have phones and the
postal mail, tooâbut I do see room for tablets to gain more
and more market share from the desktop.â
If not yet king, tablets are definitely doing their part
to chip away at desktop usage. But, for the first time this
year, tablets are also taking a bit of market share away
from their mobile brother, the smartphone. While more
than 47% of email opens took place on a smartphone in Q1
2014â66% of all email opens happened on a mobile device
(tablets and smartphones combined)âthat number is actu-
ally down slightly from 48.2% last quarter.
Another interesting bit of data from the report: Consum-
ers open more emails on Apple devicesâbut spend more
time with their emails on Android devices. Apple products
accounted for 54.5% of all email opens in Q1 2014 (up from
49.9% in Q4 2013); by comparison, only 10.8% of email
opens took place on an Android device, down from 14.4%
last quarter. But Android users viewed their emails for 15
seconds longer, on average, than their iOS counterparts.
While Cohen admitted itâs a bit of a puzzler, he did posit
a theoryânamely, that images donât render consistently or
quickly on Android devices, meaning users have to wait to
see their messages.
âNewer devices, like the latest Galaxy, render images
well, but legacy Android devicesâas opposed to the iPhone,
which automatically resizes emails to fit all screensâwill
only show the upper left-hand quadrant so that you not
only have to scroll down, you have to side-scroll as well,â
Cohen says. âYouâre spending more time with your emails
because you need to if you want to understand them.â
The merits or disadvantages of particular devices
aside, one thing is not under debate: Mobile usage is on the
rise. Movable Ink found that email opens on smartphones
surpassed that of email opens on desktops in all but 13 U.S.
states. Just nine months ago, desktops beat smartphones
in only 24 states.
âThis is the fourth report weâve done, and every quarter
the map is getting pinker,â Cohen says. âI think that num-
ber will continue to shrink until we get to a place, maybe
even by the end of the year, when the entire map is pink
and we donât even have to produce it anymore.â
Tablet Usage Is on a
Serious Upswing
New research says that 18.5% of all marketing emails were opened on a tablet in Q1
2014. Thatâs up more than 5% since just nine months ago.
10
11. By Perry Simpson
T
hough many mobile marketers continue to invest
in push notifications, few actually use the medium
for marketing messaging. All told, 62% of the top
100 online retailers prompt users to opt in to push notifi-
cations, 27% more than 2012, according to a recent study
from mobile marketing platform OtherLevels. However
only 31% of these retailers actually send push notifica-
tions to opt-in consumers.
Throughout 2013, OtherLevels downloaded and tested
mobile apps from the top 500 online retailers as ranked
by InternetRetailer.com, and compiled the findings in the
study. The study found that 80% of consumersâ mobile in-
teractions take place in apps. At 77%, most of the top 100
online retailers have responded to consumer preference
by publishing apps; 40% of the top 500 retailers have
done so, as well. About 66% of the top 100 e-retailers pub-
lish both iOS and Android versions of their app.
Just 16% of the top 100 online retailers integrate with
social media for login credentials, and only 40% prompt
users to opt in to share their GPS locations. Less than 2%
of the top 500 online retailers have a rich inbox in their
app, which allows for email-esque content inside the app.
Only 35% of consumers prefer mobile apps over mobile
Web when it comes to shopping; an unsurprising fact
considering the varying degrees of user experience for
mobile apps.
Mobile Marketers Arenât
Pushing Push Notifications
Only 31% of retailers send push notifications to users that opt-in to receive them.
Donât be a Mobile Pushover
32% Executives who say push is an
âessential channelâ for their business
Urban Airship
11% Executives who say SMS is
essential to their business
Urban Airship
68% Consumers who opt in to
receive push notifications from a band app
Responsys
75B Number of devices that will be
connected to the Internet of Things by 2020
Business Insider
Endless The possibilities
11
12. By Andrew Corselli
FLIPBOARD
COLLECTS CONTENT FROM THE WEB AND
REFORMATS IT FOR USERS
A single place to receive and read all pertinent news, Flip-
boardâs mission is to improve how people discover, view,
and share content across their social networks.
Flipboard collects content from Web pages and reformats
it to look more like magazine content. Users are able to toggle
through items on Facebook, Instagram, The New York Times,
YouTube, and many other sources as if the stories were fea-
tured together in one periodical. Additionally, users are able
to promote interesting stories via their social networks.
What might surprise marketers are full-page ads that
not only provide information on relevant products to us-
ers in a more reader-friendly, magazine-like style, but also
help Flipboard monetize the content.
KEYNOTE
HELPS CREATE EVERYTHING FROM FLASHY
PORTFOLIOS TO SLICK BUSINESS PRESENTATIONS
Watch out PowerPoint. Presentation app Keynote, with its
easy-to-use tools, is gaining fans. The app provides numer-
ous templates that users can choose from to create and edit
slides, add animations, and moreâall to help create every-
thing from flashy portfolios to slick business presentations.
Optimized for Macs, Keynote is one of three apps from
Appleâs productivity suite that includes Pages and Num-
bers. Up to 20 people can simultaneously work on the same
file within the trifecta of iWork apps, with the work shown in
real time. A color coding system lets each participant know
whoâs doing what; Keynote also has a feature that allows all
collaborators to send comments to each other.
Sharing work is easy, too; the main presentation index
screen includes a share button that allows users to share
files via iCloud, iMessage, or email. Synching the work to
iTunes or a remote server is also possible with Keynote.
GOODREADS
THE DILEMMA OF CHOOSING A BOOK TO READ
HAS BECOME A THING OF THE PAST
The Goodreads app allows users to enter titles and genres
of their favorite books, then doles out recommendations
for new reads. To paraphrase Ray Liotta in Goodfellas,
âYouâre gonna like this book. Itâs all right. Itâs a Goodread.â
Goodreads, whose recommendation engine ana-
lyzes 20 billion data points to give specifically designed
suggestions, also allows users to see which books their
friends are reading; track books theyâre currently read-
ing, have read, and want to read; and peruse reviews
from the appâs community.
In March of 2013 Amazon acquired the app, and its func-
tionality is now supported on Kindle, Kindle Fire tablets,
and new and first-generation Kindle Paperwhite e-readers.
In addition, users may now add prior Kindle purchasesâ
both print and e-booksâto their Goodreads account.
MUSTBIN
A MUST HAVE FOR PRIVACY-MINDED MARKETERS
This iOS7 app enables users to capture information and
data, and then securely store, organize, and share it with
App Attack
A roundup of our favorite productivity apps curated just for you.
12
13. contacts on Mustbinâs private social network. Users are also
able to like and comment on their contactsâ bin contents.
Via their smartphone camera, users can take photos of
important items and informationâsuch as receipts, cred-
it cards, business cards, contracts, etc.âand place it into a
âbinâ for safe storage. Custom or prebuilt bins are avail-
able; and each bin offers guides that walk the user through
specific information to capture.
Since Mustbin stores highly sensitive information, it
takes its security seriously. Not only has a third-party secu-
rity analysis business verified the system, but the app also
boasts security technology that offers bin-level encryption,
AES-256 encryption on each file, and end-to-end encryp-
tion during cloud sync. Furthermore, the encryption keys
are owned by each user, so nobodyânot even Mustbin em-
ployeesâcan see any of the data without a userâs consent.
DAILYBURN
WELL-TRAVELED MARKETERS MAY FIND THIS
FITNESS APP TO BE A HEALTHY COMPANION
A fitness-oriented social networking and workout website
and app, DailyBurn aims to help users achieve their fitness
goals and maintain a healthy diet, in part by making it easy
to fit exercise into their already jam-packed daily routines.
Users can choose from 12 DailyBurn trainers who host
their own programs, which comprise more than 100 com-
bined workout sessions that range between six minutes
and an hour. The programs include cardio, dance, resis-
tance training, and yoga. The app also offers nutrition tips
and healthy recipes.
When users register with DailyBurn they enter their
name, age, current and desired weights, and email ad-
dress, in addition to answering questions such as âWhat
is your current level of fitness?â Then, DailyBurn recom-
mends a program based on the responses. However, users
can select from any of the workouts offered.
DailyBurn, which is accessible via any Internet-con-
nected device, provides the ability to track progress and
interact with other users in the program. The mobile app
is intuitive, and itâs just as easy to follow along with work-
outs on a smartphone as on a larger screen, so itâs great for
road warriors like well-traveled marketers.
WUNDERLIST
AIMS TO HELP USERS ACCOMPLISH ANY
AND ALL TASKS
Ever feel overwhelmed by trying to effectively manage and
share to-do lists? Well, those days may soon be over, leaving
no more excuses for procrastination. Wunderlist aims to help
users accomplish tasks on all ends of the difficulty spectrumâ
the app provides all the necessary tools to track everything
from shopping lists to vacation plans to running a business.
Users can schedule recurring to-dos; break down large,
imposing tasks into smaller, more manageable subtasks;
receive push, email, and in-app notifications; add Web
content straight from a browser; and sync lists seamlessly
across all devices.
The app boasts numerous useful features. Through
âDetail Viewâ users can add due dates, reminders, sub-
tasks, and notes to tasks. The âMail to Wunderlistâ feature
lets users send or forward emails to the app to add tasks
remotely; and with the companyâs browser extension,
âAdd to Wunderlist,â users can add content from Amazon,
Gmail, eBay, YouTube, and other sites.
According to The New York Times, Wunderlist âis a pow-
erful appâ thatâs both âeasy to useâ and âa pleasure to use.â
For more visit dmnews.com/AppOfTheWeek
App Attack (cont.)
13
14. @Messenger_121
Did you know? 33 percent of U.S. mobile users prefer offers via text
to mobile Web (21 percent) #mobilemarketing
@SAPPHIRENOW
50% of GenY say they would rather lose their sense of smell than
their mobile device. #SAPPHIRENOW
@Anchor_Mobile
47 percent of consumers want mobile offers on their devices when they
pass by a store. #GeoLocation #MobileMarketing #MobileCoupons
@howielb
âIf you have a mobile phone & a Facebook page, you have a mobile
marketing strategy.â - Dan Levy, @facebook #FacebookFIT
@NomenUK
The marketing industry needs to be less risk-averse on mobile and
make better use of data #marketing #data
@dcborn61
Think of your tweets being read on a mobile device. They are 86%
of the time. #marketing
@timoketonen
Smartphone adoption still has a huge upside globally, from 1 B to 5
B #mobile #smartphones
@PotratzADV
There are now around 143 million smart phones in use in the U.S.,
and 71 million tablets. #mobilemarketing #facts #automarketing
@Obeo
79 percent of #mobile users who find a site difficult to use will leave
and never return Via @inmannext
@danagundlach
@FotoTaker canât wait until my bathroom tells my smartphone that
I am almost out of toilet paper...