Marketing outlook mobile driving the bandwagon

CONTENTS
PAGE PAGE

3 INTRODUCTION: 23 Which will be the most discussed mobile legal issues
By Giselle Tsirulnik in 2012?
By Chantal Tode
4 2012 will be the year of tablet advertising
By Chantal Tode 25 OEM focus on smartphones in 2012 to leave feature
phones in the dust
6 Location, 3D ad creative and social to dominate mobile By Chantal Tode
ad strategies
By Rimma Kats 27 Publishers to eye mobile monetization in 2012
By Rimma Kats
8 Ad agencies will embrace the marriage of digital and
physical in 2012 29 Loyalty and rewards programs will rely heavily on SMS/
By Chantal Tode MMS in 2012
By Lauren Johnson
10 Mobile no longer a peripheral thought for banking
By Lauren Johnson 31 Music industry must set focus on mobile discovery in
2012
12 Mobile marketing offers carriers significant By Lauren Johnson
opportunities in 2012
By Lauren Johnson 33 Mobile stats to remember in 2012
By Rimma Kats
14 Retailers will struggle with mobile point of sale
payments in 2012 35 Local, social will play prominent role in search
By Lauren Johnson By Lauren Johnson

16 Mobile content needs to be practical, useful and 37 Who will win the mobile, social war in 2012?
resourceful By Rimma Kats
By Rimma Kats
39 Mobile payments, social mcommerce and QR codes will
18 Marketers shift from building databases to successfully dominate in 2012
engaging them By Chantal Tode
By Rimma Kats
41 More TV programming to use mobile, tablets to complement
20 Fragmentation will continue to haunt mobile email viewing experience
marketing in 2012 By Lauren Johnson
By Lauren Johnson
43 A year in pictures
22 Brand integration in mobile gaming will drive mobile By staff reports
commerce
By Rimma Kats

Mickey Alam Khan Chantal Tode Lauren Johnson 401 Broadway, Suite 1408
Editor in Chief Associate Editor Editorial Assistant New York, NY 10013
mickey@ chantal@ lauren@ Tel: 212-334-6305
napean.com mobilemarketer.com mobilemarketer.com Fax: 212-334-6339
Email: news@mobilemarketer.com
Website: www.MobileMarketer.com

For newsletter subscriptions:
http://www.mobilemarketer.com/
Giselle Tsirulnik Rimma Kats Jodie Solomon newsletter.php
Deputy Managing Editor Staff Reporter Director, Ad Sales
giselle@ rimma@ ads@ For advertising:
mobilemarketer.com mobilemarketer.com mobilemarketer.com http://www.mobilemarketer.com/cms/
general/1.html

For reprints:
reprints@mobilemarketer.com

Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer
Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com, Classic Guides,
webinars, the Mobile Marketing Summit and the Mcommerce Summit and awards. ©2010 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.

PAGE 2 Mobile Marketer MOBILE OUTLOOK 2012

INTRODUCTION

Mobile steamroller transforms content, commerce and marketing

M obile advertising, marketing, media and commerce
will have a bright 2012 as consumers increasingly
rely on their mobile devices daily to shop, learn, research,
Location-based advertis-
ing will be a hot topic in
2012 and will likely be on
play and engage. regulatory radar.

Many brands and retailers who did not jump aboard the Mobile search will be in-
mobile bandwagon in 2010, learned from their mistakes creasingly important in
and took mobile more seriously in 2011. 2012 as the number of mo-
bile-optimized Web sites
Marketers built mobile Web sites, developed apps, engaged skyrockets. Google will
consumers via rich-media mobile advertising, drove loyal- have a large part in growing the mobile Web ecosystem
ists in-store via mobile database and CRM efforts and dab- and therefore driving mobile search dollars.
bled with new, sexy mobile technology such as QR codes
and augmented reality. The guide
The 2012 Mobile Marketer Outlook is spot-on in terms of
Predictions for 2012 what marketers can expect in the mobile medium in 2012.
What should marketers expect in the year ahead?
The insight and analysis by reporters and industry execu-
Mobile payments will make headlines for most of 2012, tives shines light on mobile’s opportunities.
as Google Wallet has paved the way for innovation in
the space. Thank you to reporters Chantel Tode, Rimma Kats and
Lauren Johnson for writing these insightful articles. Also,
Mobile advertising will grow to be healthy in terms of dol- much appreciation to all of the mobile mobile executives
lars spent. New ad units with more engagement opportuni- that took the time to provide feedback and insight. This
ties will increase spend in the channel. would have been impossible without you all.

SMS will continue to be the No. 1 channel for cultivating This is the fourth Mobile Outlook and is featured on http://
loyalty, as consumers become more open to opting into da- www.mobilemarketer.com for all of 2012. Read it from
tabases and hearing from their favorite brands regularly. cover-to-cover. Learn from the best practices, how-to’s,
forecasts and case studies within. Share the guide will
Fragmentation will continue to be a problem in 2012 as friends, family and colleagues.
more devices pop up. Marketers will continue to be chal-
lenged by this. Best of luck in 2012 and beyond.

Marketers will place a larger emphasis on smartphones,
leaving feature phones as an after-thought. With smart-
phone proliferation expected to grow exponentially in
2012, it is no surprise that marketer’s will follow consum-
ers to engage and excite them.

Social media will play a crucial role in mobile market-
ing initiatives, as brands and retailers alike realize the
importance of word of mouth in a world where consum- Giselle Tsirulnik
ers are comfortable sharing opinions and insights with Deputy Managing Editor
one another. Mobile Marketer

AD NETWORKS

2012 will be the year of tablet advertising
By Chantal Tode

M
obile ad networks will be under pressure to Competition in the ad network space will heat up
deliver better creative executions and wider next year as firms such as Millennial Media, Jumptap,
campaign reach in 2012 as many brands move InMobi and Mojiva compete with the leaders in the space
beyond the basics of mobile advertising. – Apple’s iAd and Google AdMob – for a portion of the
resources being funneled into mobile advertising.
As marketers learn more about what mobile advertising
can offer, they are allocating a greater portion of their Mobile ad funding
spend to mobile ads and have higher expectations, ad In 2011, several ad networks received an infusion of cash
networks will be competing to meet expectations to to help build out their mobile advertising offerings and
win business. will look to use the funding to help them compete for
growing mobile budgets as well as try to take advan-
“Going into 2012, mobile ad networks that find a way tage of opportunities such as continued grumblings that
to execute the latest creative and targeting capabilities Apple charges too much for the placement of ads via its
at scale will have a big advantage in 2012 as we expect mobile ad network iAd.
more players to enter the space or existing smaller play-
ers to converge,” said Susan Kuo, InMobi, San Mateo, There will be significant opportunities for those ad net-
CA. “Those with the global footprint and technical and works that can offer engaging and rich brand experiences
creative expertise in these areas will ultimately prevail.” via mobile to large audiences.

Pressure is on A growing opportunity for ad networks in 2012 will be
Ad networks will also be under pressure to better target tablets, which are being scooped up by consumers in
mobile ads and improve ad creative. growing numbers and are quickly changing users’ media
consumption habits.
In 2012, creativity and bigger and better rich media ini-
tiatives will be an important part of every ad buy. “Tablets will become an even larger opportuni-
ty,” said Anne Frisbie, vice president and manag-
“The mobile advertising industry continues to grow at a ing director for North America at InMobi, San Fran-
rapid rate,” said Amy Vale, vice president of mobile mar- cisco. “We expect to see this double in the U.S.,
keting for Mojiva, New York. and will deliver strong results for both brand and
performance marketers.”
“Technology integrations between the creative en-
ablers, ad servers and ad networks will make the whole Tablets will be a popular gift during the holiday season,
process a lot easier, thereby taking mobile far beyond which will help create an even bigger opportunity for
the ‘experimental’ portion of the ad spend that has been brands to reach consumers via mobile ads on tablets.
seen in years gone by,” she said.
The payoff can be significant for ad networks and
“I think we will see more companies roll out new ideas, brands that tailor their mobile advertising for the
new ad units and new executions, all so that advertisers tablet experience.
can differentiate in this medium and get the best possi-
ble ROI for their spend, whether it be based on brand lift, Consider the tablet experience
conversions or any other campaign objective. HTML5 is “We are seeing and will continue to see a demand for ‘all
also opening creative floodgates in mobile advertising.” things tablet,’ – both advertisers and users love the big-


ger screen and richer experience tablets offer,” Mojiva’s “In a market that is beginning to saturate mobile, ad net-
Ms. Vale said. “Some ad units built specifically for tablets works are challenged to define their niche,” said Harald
are experiencing phenomenal user engagement because Neidhardt, chief marketing officer of Smaato, Redwood
advertisers are really thinking about tablet differences Shores, CA.
compared to other devices and how content and media
is consumed.” “I would recommend to invest in technology leadership
and carve out a remarkable and dominant place in a
This is an exciting time for mobile, when all players have role as either premium- or reach-oriented, U.S.-centric
an opportunity to gain from exponential growth. or international scope and excel from this position by
working within industry bodies to push the envelope
As a result, expect ad networks to investigate a myriad to grab more market share for the mobile advertising
of strategies intended to help them stand out and grab a ecosystem as a whole and therefore grow the market
bigger share of mobile ads. together,” he said.


ADVERTISING
Location, 3D ad creative and social to dominate mobile ad strategies
By Rimma Kats

B
rands and marketers are realizing the impact that “I think the innovation for 2012, will be that we
location plays in their mobile advertising strategy. start to see commerce functionality creeping into
Location-based technology will be the key driver in rich-media advertisements more and more for digi-
not only bolstering in-store traffic, but also a good way to tal goods as well as some low to mid cost physi-
serve relevant and targeted mobile ads to on-the-go users. cal goods segments, such as food and even clothing,”
Mr. Limongello said.
While 2011 was the year of engagement, 2012 will be the
year of relevance. If consumers are served a mobile ad “I think the challenge will be to move brands
that does not interest them nor uses their device’s GPS from the content building phase where they fo-
functionality, then they will be less inclined to click on it. cus their budgets on building sites and apps to the
media phase where they spend their budgets on
“Right now, there’s less friction all around,” said Tom media,” he said.
Limongello, vice president of marketing at Crisp Media,
New York. “New technology is making it even easier for “Also, technology issues behind deploying conversion
users to interact with mobile ads. tracking either on sites or for when users move from app
to app have held back online segments from spending
“If 2010 and 2011 was about touch gestures, 2012 will
be more about accelerometer enacted rotation of 3D ad
creative assets, and potentially voice activated controls
for iOS and Android devices,” he said.

“Also, now that iOS and Android both have notification
trays, it’s even possible for publisher apps to communi-
cate with users more often, which may mean that spon-
sors could push notifications from time to time from
advertisers without breaking the social contract with
its users.”

Commerce into play
The main challenges of mobile advertising is not brands
are not using location-based technology or thinking
about relevance.

Consumers increasingly have their mobile devices on
them and running targeted ads with information that
would appeal to them would not only help build that
brand and consumer relationship, but have the user fur-
ther engage with a mobile ad.

Additionally,with iOS and Android now close to 15 per-
cent of all Web purchases, it is clear that 2012 will bring
a new focus on mobile commerce – not from near field
communication, but from digital commerce.

more on mobile, specifically the travel segment has been “However, if pub-
slow to move from test budgets to ROI driven budgets lic feeds were
due to lack of conversion tracking capabilities.” pulled directly
into rich media
Overall enhancement advertising pan-
Advertisers should try to leverage their real-time feeds els, this approach
and social profiles in mobile banners to make their ads also makes it pos-
as dynamic as possible. sible for users to
see the brand in-
“RSS feeds or APIs are useful branding tools not only formation before
for daily deal sites or credit card companies, but for in- they are prompted
stance, auto or CPG brands who sponsor events such as to login.”
March Madness,” Mr. Limongello said.
Above the rest
“Interestingly, there have been a lot of uses of live feeds Although many brands are still not realizing the poten-
in desktop advertising, there has been less demand on tial of running targeted mobile ads, others are leading
mobile, potentially because logins are more difficult for the pack.
social media on mobile,” he said.
Victoria’s Secret has been running mobile ads for
a while. The ads drive traffic to its in-store loca-
tions, as well as its mobile apps and mobile-optimized
commerce-enabled site.

Recently, the company realized that running targeted,
location-based ads is effective to getting that consumer
to click the ad.

“With the expected usage growth among advertis-
ers becoming more mature, we expect 2012 to be an
exciting year for mobile advertising,” said Kim Lu-
egers, director of mobile and emerging media at
Pandora, Chicago.

“We expect many of the industry shaping orga-
nizations such as the IAB and MMA, along with
their members, to make great strides in assisting
with overcoming the many challenges mobile ad-
vertising faces such as measurement and ad unit
standardization,” she said.

There will be ongoing maturation of the
mobile advertising marketplace in 2012 as mobile
solidifies its presence as a valuable and viable
marketing channel.

“You have to embrace it,” Ms. Luegers said.

ADVERTISING AGENCIES

Ad agencies will embrace the marriage of digital and physical in 2012
By Chantal Tode

A
dvertising agencies in 2012 will be looking to in- focused on bringing branded content and utility at the
corporate mobile in a bigger way into their brand point of purchase to mobile, one area of focus in 2012
strategies, following a year in which smart- will be on bringing mobile marketing to more consumers
phone penetration grew significantly and initial efforts and products.
found success.
“In 2011, the penetration and use of smartphones has
Some agencies have not been as aggressive in mobile gone through the roof across all groups,” Mr. Boyle said.
as others because of challenges creating and executing “For an ad agency, this means that mobile is a channel
mobile campaigns at scale. However, with big brands we can use for more products than last year and more
such as Coca-Cola, Walmart, BMW and others active in groups than last year.”
mobile over the past year, agencies recognize that they
need to continue to build out the mobile services they Since women still typically hold the household’s purse
offer with either in-house capabilities or by partnering strings, agencies will need to pay close attention to fe-
with third-parties. male mobile users in 2012.

“The pace of the technological revolution is not de-
termined by technology only but also by our willing-
ness to use it – this year, we saw a significant change
in behavior,” said Hugh Boyle, global head of digital for
OgilvyAction, New York.

Mr. Boyle points to the appearance of national televi-
sion ads during primetime showcasing how a brand’s
app works. For example, British supermarket chain Tesco
ran a spot in 2011 that focused on its app. Mr. Boyle
said this points to the significant role that mobile plays
for consumers.

“An app being advertised is not about early adopters,”
Mr. Boyle said. “Marketers are being cognizant of the
fact that people have smartphones in their pocket and
are happy to use it if it is useful to them.”

As mobile continues to rapidly evolve, agencies will need
to master mobile compatibility, mcommerce, messaging
and location-based services.

Agencies are also responding to the significant changes
in consumer behavior that are being driven by growing
mobile penetration.

Larger focus on mobile marketing
While 2011 was the year that brands and their agencies

Currently, most women use their mobile phones primar-
ily for basic communications, according to research from
agency JWT. However, that could start to change.

“You will see the mobile phone evolving into a woman’s
Swiss Army knife, helping her manage all her identi-
ties – mom, daughter, boss/employee, wife, friend – and
responsibilities – making social plans, shopping, paying
bills – simultaneously,” said Ann Mack, director of trend
spotting for JWT, New York.

“As a result, brands will need to create seamless experi- ucts and marketing materials via mobile devices.
ences optimized for mobile and local,” she said.
QR codes and augmented reality are also exam-
The marriage of digital and physical ples of how agencies can use mobile for a real-world
Agencies will also be well served by developing mobile connection in mobile.
programs that integrate digital with physical.
“The future is very much in the electricity between the
Mobile is a great way to bridge the physical with the digital and the physical,” OgilvyAction’s Mr. Boyle said.
digital because users can interact with real world prod-
“Treating mobile like a standalone technology is a mis-
take,” he said. “Treating it as an integrated part of peo-
ple’s lives is the right way to do it.

“Our recommendation is to look at ways to use mobile to
interact with physical stuff.”

Dual-screening
A related trend that will pick up more steam in 2012
is the way that consumers increasingly consume me-
dia and engage with their mobile phones at the
same time.

“In the year ahead, you’ll see marketers creating more
experiences designed for simultaneous consumption and
engagement,” JWT’s Ms. Mack said.

“People are no longer interacting with media and tech-
nology in a focused, linear way,” she said. Rather, they’re
chatting on Facebook as they watch TV, texting while
flipping through a magazine, gaming on their mobile
while listening to music.

“Brands should steer attention between one medium and
another in a continuous loop, timing secondary content
to stream alongside primary content.”

BANKING AND PAYMENTS
Mobile no longer a peripheral thought for banking
By Lauren Johnson

E
xperts agree that 2012 will be the year that mobile tinue to be an issue for financial institutions looking to
will become an essential part of marketing mixes reach the most consumers.
for financial institutions and payment companies.
HTML5 is rumored to help solve fragmentation problems
In particular, mobile advertising will increasingly be in 2012, but it is still unknown how effective the tech-
used by banks and financial institutions to spread the nology will be for app developers.
word about mobile services. Banks and institutions will
continue to rely on mobile to develop easier banking “From a marketing point of view, the biggest challenge
solutions for clients. is looking at mobile standards because fragmentation
hurts us in order to be an effective ecosystem,” Mr.
“One of the key things we are focused on its making Eisenman said.
sure we are servicing our customers when they go to
mobile,” said Russ Eisenman, head of mobile marketing “As soon as the market starts to stabilize, we will start to
and partnerships at JPMorgan Chase, New York. see an increase in development,” he said.

“Every year, our numbers double with the amount
of consumers using our mobile services and we
are focused on continuing to build our mobile
browser, applications and SMS programs in 2012,”
he said.

Quick banking
According to Mr. Eisenman, Chase’s quick deposit
app feature, which lets consumers snap a picture of
a check to deposit, has generated 2 billion depos-
its since launching in 2010, showing that consumers
are relying on mobile for everyday banking.

Chase’s mobile strategy with apps is focused on being
on every platform for its consumers, and in 2012 the
financial institution will roll out apps on more devices
including BlackBerry products and for Amazon’s Kindle
Fire tablet.

In 2011, big and small financial institutions focused on
translating online banking to mobile for both consumers
and business clients.

Now that financial institutions have mobile services
such as apps, the challenge for banks will be keeping
them updated with features that are relevant and useful
for consumers.

Similar to other areas of mobile, fragmentation will con-

2012 will also see an increase in both consumer and
business clients using mobile to manage their money.
Additionally, consumers will be looking for multiple
mobile platforms to bank on, whether it is done via
mobile applications, Web sites, push notifications or
SMS programs.

“In 2012 ING Direct will look to create more value for
clients in the mobile space,” Mr. Nicholson said.

“We will do this by launching new features that will en-
hance the experience and drive everyday interaction and
usage,” he said.

“With respect to mobile advertising, we will continue to
invest and test new ways to engage Canadians uncon-
ventionally, specifically for the mobile channel.”

Market on mobile
As more consumers have adopted to mobile devices in
the past year, including tablets and smartphones, finan-
cial institutions need to start putting more of an empha-
sis on mobile to beef up their other digital channels such
as social media.

For example, this year ING Direct Canada ran a mobile
advertising campaign that asked consumers to “like” the
bank’s Facebook page to play games that unlocked prizes.

“I think 2012 will be the year that mobile is no longer
a peripheral thought for most marketers,” said Mark
Nicholson, head of digital and interactive at ING Direct
Canada, Toronto.

It will take on a more prominent role in the marketing
strategy, and marketers will look to create engaging
cross-platform initiatives and experiences,” he said.

CARRIER NETWORKS

Mobile marketing offers carriers significant opportunities in 2012
By Chantal Tode

T
he massive upgrades undertaken by wireless net- erability between bar code scanning technologies and
works in 2011 will help encourage consumers enable seamless interactive marketing,” he said.
to move more activities from a tradition wired
Internet connection to their mobile devices in 2012. Next year will also see greater standardization by wire-
less carriers to simplify mobile marketing.
The combination of increased smartphone penetration,
greater bandwidth speeds and consumers who want to Protecting consumers
shift behavior to mobile will provide significant opportu- Already, carriers have been working with organizations
nities for marketers next year. Wireless carriers will build such as the Mobile Marketing Association, Interactive
on their efforts to roll out faster networks to subscribers Advertising Bureau and others to create a standard ap-
by simplifying and improving the ability for marketers to proach to mobile marketing that protects consumers
reach consumers via their networks with ads, games and while enriching their mobile lives.
other unique content.
Next year the fruits of these efforts will begin to appear.
“Organizations, large and small, public or private, are
looking to find mobile-supported revenues,” said Rob
Russell, director of mobile marketing solutions at AT&T,
Dallas. “These trends are top of mind with our customers,
regardless of the direction of economy at large.

“As a leader in wireless, AT&T is poised to support and
spread mobile marketing solutions among business-
es and consumers,” he said. “We plan to continue in-
novating in the ways that matter most to businesses
in 2012 to further the momentum we have seen this
past year with business adoption of mobile applications
and services.

“Whether our customers are looking for global machine-
to-machine communications or mobile marketing solu-
tions, we’ll center our efforts on the areas that provide
significant return on investment and help businesses
work better.”

Bar code opportunity
One of the opportunities AT&T sees in 2012 is with 2D
bar codes.

“Bar code scanning is making huge strides in the industry
by preloading scanners on our devices,” Mr. Russell said.

“AT&T has a vision to move the industry toward interop-


“It is paramount to their future that mobile car-
riers deliver intelligent content with that to
add value and monetize their investments,”
she said. “By achieving success here, opera-
tors will develop further brand loyalty with
their subscriber base and begin to monetize
their resources.”

“Today the primary form of mobile marketing is
still done via SMS. This is the most basic mobile
functionality and while it allows brands to reach
consumers on-the-go, it does not provide the same
engaging content as other data streams able to be
delivered via a wireless connection.”

One form of content that will be a big focus in
2012 is mobile video.

“That step signifies the importance these carriers place “The surge in Internet traffic related to YouTube shows
on providing their subscribers with the services they consumers’ love of video,” Ms. Foster said. “Industry fore-
want, when they want them, while protecting their pri- casts expect mobile video traffic to continue its steep
vacy,” said Jean Foster, vice president of marketing for pace of growth.
carrier services at Neustar, Sterling, VA.
“The challenge and opportunity is for mobile carriers to
“Carriers are well aware of the mobile dynamics at work help brands turn this obsession with video into mobile
and are positioning themselves to support the forthcom- marketing,” she said.
ing tidal wave of mobile marketing,” Ms. Foster said.
“Privacy becomes a concern. “[The convergence of social, local and mobile is a trend
that] captures the move by consumers to shift their so-
“Furthermore, we expect carriers to explore new ways to cial lives to mobile and to make it locally relevant.”
add value to their subscribers with additional network
intelligence and functionality.”

Content is king
One important area of opportunity for wireless carriers
next year will be in enabling the delivery of engaging
content to subscribers.

With smartphones expected to overtake feature phones
in 2012, the desire for more content is growing and re-
flects the need for wireless networks to look beyond SMS.

“Mobile carriers have spent vast resources to upgrade
their infrastructures to support the surge in mobile
traffic,” Ms. Foster said.


COMMERCE
Retailers will struggle with mobile point of sale payments in 2012
By Lauren Johnson

D
espite the rise in mobile commerce and payments Since launching in
this year with advancements in initiatives such as September, retail-
Google Wallet and NFC, retailers will continue to ers including Jamba
struggle with point-of-sale mobile purchases in 2012. Juice, Gap, Ameri-
can Eagle Outfit-
Additionally, retailers and merchants need to view their ters and NJ Transit
mobile properties differently from their Web properties in have begun using
2012. In order to move forward, retailers need to tie mo- Google Wallet.
bile payments with incentives that encourage consumers
to use their mobile device, including mobile coupons and In particular, con-
loyalty programs. sumers will begin
to purchase bigger-
“Merchants and retailers will continue to face the issue ticket items such as apparel on their mobile devices
of redemption at the point of sale,” said Chip Fishburne, in 2012.
vice president of mobile commerce services at Firethorn
Holdings, Atlanta. However, retailers and merchants need to be more open
to trying multiple mobile payment services in 2012 to
“The mobile consumer continues to hear of the options find the sweet spot with their consumers.
for mobile payments, but the merchants are waiting to
see what mode of payment will be broadly adopted,” “Don’t be afraid to place multiple bets and use exter-
he said. nal partners, stay closely engaged with consumers and
how they are interacting with your brand across multiple
Mobile catch-up channels,” Mr. Fishburne said.
According to a Juniper Research study, smartphone ship-
ments are expected to reach one billion by 2016. “Make sure you give them options and clearly communi-
cate the value of each,” he said.
As mobile device usage continues to grow, consumers
will have higher expectations in 2012. Plan on commerce
When consumers use a retailer’s application or mobile
In order to catch up with consumers, businesses will Web site, they are looking for more than just informa-
need to take bigger risks and develop a complete mobile tion - they are also looking for a unique experience that
strategy around payments. mimics their device.

2011 was the year of mobile payments for small-ticket With major brands and companies utilizing multiple mo-
items, such as transportation tickets or food and bev- bile channels, consumers know they can get more out
erage purchases, which was largely spurred by the in- of their experience than an exact replica of a company’s
troduction of Google’s mobile payment program, Web site.
Google Wallet.
Not having a unique mobile experience is now an ex-
Google Wallet works with merchants and retailers to set pense that retailers cannot afford.
up a mobile payment solution using a mobile app that
consumers can add money to via a credit card or by cre- “The approach of replicating your online site is a mis-
ating a Google Prepaid card. take that I see a lot of retailers making,” said Roger Un-


derwood, senior vice president of ecommerce operations This year, The Finish Line introduced an application that
and technology at The Finish Line, Indianapolis. let users find specific items at the nearest location.

“It’s important to understand how consumers are using In 2012, the retailer will continue to build a mobile strat-
their mobile devices and respond by building the proper egy that differentiates itself from the company’s other
services in order to fit needs,” he said. digital efforts.

Retailers will also need to tie their mobile commerce “I think 2012 is the year retailers look at mobile com-
solutions to more real-time features such as inventory merce as an opportunity to engage consumers in a
in 2012. unique way,” Mr. Underwood said.


CONTENT

Mobile content needs to be practical, useful and resourceful
By Rimma Kats

M
obile users are becoming more niche-focused ence is looking for, and we want to give them some-
with regards to smartphone applications and thing they will come to depend on,” she said. “The
companies are realizing that new content will challenge is inherent in the opportunity – how do we
succeed only if it addresses what the consumer wants organize our abundance of authoritative content in an
to hear. easy-to-use way.

While rolling out mobile apps is becoming a daily thing, “We have so much to offer our audiences that there will
having a consumer download it and use it only once will always be another thing to develop and it’s a challenge
not be good for the brand or the user. to find the best way to do that.”

In 2012, companies will need to find their own niche Interactive content
and build a mobile application that syncs with who their Before companies launch a mobile app simply for the
target user is. fact that their competitor has one or that they just want
one, brands and marketers need to have a strong under-
“Mobile is no longer a novelty, it is a necessity,” said Judy standing of who their audience is and who the app they
Galani, product manager at XO Group Inc, New York. are building is meant to reach.

“Practical, useful and resourceful is what our audi- Personalization is going to play a big role in 2012.

More apps, such as AOL Editions are letting consumers
personalize the content that they want to see.

Letting users personalize the content they want to see
when they open up a mobile application helps build user
engagement.

“2012 will bring the expectation of complete accessibil-
ity and a fully-synched user experience,” Ms. Galani said.
“The user’s actions and information will translate seam-
lessly from laptop to on the go.

“We will take personalization of content delivery a step
further by utilizing inherent mobile technologies and le-
veraging the consumer’s dependence on social media,”
she said.

Frequency
Growth in the number of mobile users and frequency of
use will reinforce the importance of enabling content to
allow customers the ability to view, transact and apply
for our products and services.

The shifting mobile landscape and rapid changes in


technology such as increased tablet and operating sys- to the platform in order to provide the best possible
tem availability and varied device capabilities, will cre- customer experience.
ate a challenging environment for industry leaders to
maintain their current position. Providing content that is meaningful and relevant will
start to become a requirement rather than a good idea.
Creating content that is appropriate for mobile devices
will continue to be a challenge. “State Farm will continue to focus on the consumer with
our 2012 mobile strategy by providing additional access
“We will continue to use mobile content to cross-mar- points that are easy to use, when and where the con-
ket our products across all platforms while looking for sumer needs our services,” Ms. Winn said.
ways to integrate with social media,” said Eli Winn,
manager of enterprise Internet solutions at State Farm, “Our mobile content will be customer centric, providing
Bloomington, IL. solutions to address consumers’ expressed and antici-
pated needs,” she said.
“New form factors for mobile platforms, like television
and automobiles will provide new and exciting opportu- “In general, mobile marketers should monitor new tech-
nities,” she said. nologies in the mobile sector and look for opportunities
to serve the consumer with simplified solutions that pro-
Additionally, mobile content will need to be tailored vide value and are easy to use and access.”


DATABASE/CRM
Marketers shift from building databases to successfully engaging them
By Rimma Kats

U
sing mobile as an integral part of the CRM strat- bile marketing companies who wish to grow their rev-
egy will be a key trend in 2012, with more com- enues, it also will bring along challenges – particularly
panies adopting common practices and new that consumers are likely to be inundated with multiple
tools, technology and data to fuel deeper engagement mobile messages on a daily basis.
and relevance.
This may decrease the penetration level of each cam-
Many companies have experimented with SMS mar- paign and make it harder for advertisers to catch a
keting programs and found that the medium provided consumer’s attention.
additional information about consumers and improved
overall consumer engagement. Marketers were able to However, this also represents a real opportunity for
capture mobile phone numbers, provide relevant offers marketers, as consumers will tend to remain subscribed
and information specific to the individual and measure only to those programs that are providing them with
that consumer’s response. real value.

“Over the past year, mobile marketing has swept over the Companies who can really give their database sub-
nation and many companies have invested substantial scribers what they want will find themselves with
resources in building a mobile database,” said Shuli Lowy, loyal customers.
marketing and client services manager at Ping Mobile,
Englewood Cliffs, NJ. “The overall focus for marketers should be to strive to
build a relationship with each of their subscribers, in-
“For those companies who have devised successful stead of just blindly pushing out content to a database,”
database building strategies, the goal will now shift Ms. Lowy said. “This means they must be more creative in
from building a database to successfully engaging it,” structuring their campaigns to ensure delivered content
she said. captures the consumer’s attention, and they should also

“At the same time, we expect more and more companies
to realize that the ability to remarket to consumers is
one of the foundational distinguishing factors that sets
mobile apart from other forms of advertising, and to be-
gin database and CRM focused mobile campaigns.

2012 will see a major increase in the number of com-
panies who are focused on mobile database building
and CRM.

Growing database
The growing investment in database building and CRM
is indicative of the spreading awareness of the effective-
ness of marketing via SMS and of the many consum-
ers who are engaging with companies through their
mobile devices.

While this represents tremendous opportunity for mo-


Carriers are becoming increasingly sensitive to this in-
crease, and continue to tighten requirements for compa-
nies utilizing these shared codes,” said Randy Atkisson,
executive vice president of sales and business develop-
ment at Sumotext, Little Rock, AK.

“Brands that are serious about their marketing efforts are
already working with a dedicated short code,” he said.

Mobile efforts
Consumers want the ability to choose how brands com-
municate with them – even when they have signed up
and opted in for multiple channels of communication,
how and when the brand communicates with them is
critically important.

Marketers have the opportunity to create customized,
online preference centers that provide consumers with
options for channels and messages that are relevant to
their individual needs and lifestyles.

In addition, one of the biggest opportunities for growth
in the mobile channel is standard industry metrics and
ROI measurement.

be sure that they are using platforms which allow them While some mobile programs are transaction-based and
to effectively profile and target their audiences. are measured based on the number of transactions and
sales revenue, other mobile programs which focus on
“From a marketing perspective, companies should con- providing information or brand engagement struggle
sult with experienced industry experts to strategize their with how to measure success.
campaigns in order to ensure their messages are clear,
desirable to consumers, and delivered at the optimal mo- One way to overcome this challenge in 2012 will be to
ment,” she said. set key objectives for the mobile channel prior to creat-
ing the CRM program.
“Above all, companies must remember that mobile in-
teractions are powerful encounters which can generate “2012 will be different because even more brands
very strong positive and negative reactions, and focus on are actively using or planning to use mobile as part
generating a positive brand interaction in every contact.” of their marketing channel,” said Doug Yokoyama,
vice president of mobile and emerging technologies
Brands and marketers are constantly looking for ways to at Epsilon.
target within their own database.
“We will see significant growth as it relates to imple-
A big challenge is being presented due to the increase in menting SMS programs,” he said. “Marketers will be
traffic across short codes that are shared among brands, more focused on gathering consumers’ mobile phone
sometimes hundreds, and without much oversight by numbers and driving them to participate in ongoing dia-
application providers. logues with the brand.


EMAIL

Fragmentation will continue to haunt mobile email marketing in 2012
By Lauren Johnson

I
n 2012 marketers and brands to use email to ramp up “Don’t wait for a consumer to go home and turn on his
their mobile email marketing strategy. With the grow- computer to sign up for your email marketing program,”
ing rate of email opens done via mobile, there is a big Mr. Ju said.
opportunity for marketers here.
“Allow the person to sign up by simply sending a text
This year expect to see email marketing being used with message with his email address while he’s in the restau-
several mobile initiatives, including application down- rant, hotel, store, museum, concert or amusement park.”
loads, instant email sign-up and cross-platform features
that load email quickly and efficiently regardless of the Keep it fresh
device users are reading their email on. Unlike traditional marketing initiatives, one of the chal-
lenges of email marketing is constantly re-evaluating
“With more and more consumers reading emails on your program and constantly finding new ways to im-
mobile devices, marketers are now faced with the new prove it.
burden of ensuring that their content renders reason-
ably well across diverse devices,” said Manny Ju, direc- “With the speed that mobile is moving, any mobile strat-
tor of product management at BlueHornet Networks, egy created on Jan. 1 will likely be obsolete by Septem-
San Diego. ber,” said R.J. Taylor, director of product marketing at

“Marketers do not yet understand the opportunities
that the mobile context provides. They still treat mo-
bile email as simply a formatting exercise when in fact,
it is a whole new opportunity that the desktop cannot
duplicate,” he said.

Untapped opportunities
According to Mr. Ju, email is only being used in prelim-
inary stages by brands and companies in their overall
mobile initiatives.

Similar to other digital marketing efforts, brands and
marketers need to remember to extend the mobile email
experience past the initial click.

To create an engaging post-click experience, remember
to keep mobile in mind. For example, redirecting users
to an un-optimized Web site in an email that they are
reading from their mobile device is a bad user experience
that they are likely to abandon.

In addition to the new opportunities that mobile offers,
brands and marketers should not forget how email is tra-
ditionally used to build databases and instant email sign-
up features will be used more by companies in 2012.


CEO of Paper Hat Press, New York.

For Paper Hat Press, which is a digital publisher that sells
personalized children’s books, being able to link a con-
sumer’s shopping history with a targeted email message
is key.

If a consumer clicks on a link in an email and buys some-
thing, the company is able to tell that the transaction
came via email and can send other relevant emails to
consumers in the future.

Marketers and brands will also need to continue testing
email subject lines for 2012, per Mr. Naik.
ExactTarget, Indianapolis, IN.
Email marketing is more than just a one-hit approach.
“Quarterly evaluation and adjustments will ensure
you stay on track and create meaningful experiences If a consumer did not open an email, marketers need to
for your customer and conversions for your business,” try variations on the subject lines until they find one that
he said. generates successful opens.

2012 will also bring more experimentation with email “Batch and blast email campaigns will continue to pro-
marketing being tied to other mobile initiatives, includ- duce poor results and unengaged email databases,” Mr.
ing SMS and push notification programs. Naik said.

With an increase in apps over the past year, brands
should leverage their email campaigns by placing
calls-to-action that promote their mobile services
in emails.

This can be done with a click-to-download
feature for apps or a click-to-call feature for
smartphone owners wanting to opt-in to an
SMS program.

Another issue that mobile email marketing will
face in 2012 is relevancy and making sure that
email messages can target specific users, which
is a common problem for all email marketing.

Data is king
Brands and marketers can expect to see more
data being used to segment email blasts to users.

“There will be an increased focus on dynamic, tar-
geted emails based on an individual user’s inter-
ests and activities,” said Manish Naik, cofounder/

GAMING

Brand integration in mobile gaming will drive mcommerce
By Rimma Kats

B
rands and marketers are seeing the potential of us-
ing mobile games to reach a broader audience and
companies such as HSN are bridging the virtual
and real-time world together.

While 2011 was a successful year for gaming – com-
panies such as McDonald’s, Pizza Hut and HSN incor-
porated their brand into mobile games, 2012 will bring
in more opportunities. Partnerships with mobile gam-
ing companies will prove to be an effective way to drive
user engagement.

“In 2012 we will thoughtfully pursue and participate in Marrying mcommerce with gaming helps brands further
mobile gaming opportunities that are a good fit with build a relationship with consumers. The mobile gam-
the HSN brand in order to extend our brand presence ing world must deliver quality entertainment that is truly
and reach a new audience that doesn’t know our sto- engaging and let companies introduce their personalities
ry,” said Jill Braff, executive vice president of digital and products to users.
commerce at HSN, San Francisco.
Socially mobile
“Combining our mobile shopping experience and casual 2012 is going to be the year where mobile social games
games is a natural progression for our consumer - she and social networks start to break into the mainstream.
loves both, she said.
“I don’t think games on mobile have truly become social
“We want to further differentiate the HSN shopping ex- between players and devices, and 2012 is the year where
perience by bringing together content and commerce in publishers and developers begin to crack the code,” said
a fun and innovative way.” Chris Cunningham, cofounder/CEO of appssavvy, New York.

Play first “With NFC, better processors and voice recognition com-
HSN teamed up with PlayFirst for the Cooking Dash ap- ing to mobile devices, the possibilities on the gaming
plication that incorporates chef Emeril Lagasse’s cook- platform with social interaction is endless,” he said.
ware and kitchen electrics line and lets players buy the
products without leaving the app. In 2012, publishers and developers will have to find a
way to maximize the revenue they drive from their
The Cooking Dash app includes a new restaurant venue apps and fine-tune micro-transaction strategies and
called “HSN Cooks with Emeril” that lets players inter- ad-supported models.
act with virtual representations of his cookware and
kitchen electrics line, and buy the real products via the One of the biggest challenges will be for a developer to
mobile game. form a seamless layer between location-based games
and social platforms on the Web and mobile.
A partnership such as that is an ideal way to not only
engage users, but also add a commerce element to the “Location-aware multi-user games are the next big
mobile mix. thing,” Mr. Cunningham said.


LEGAL/PRIVACY

Which will be the most discussed mobile legal issues in 2012?
By Chantal Tode

T
he number of legal battles in the mobile space Patents and privacy
will continue to grow in 2012 thanks in no small Legal battles involving mobile-related patents were big
part to mobile’s rapid growth, which has raised thenews in 2011 and understandably so. Microsoft was re-
stakes considerably for many companies. ported to be making millions on the sale of Android de-
vices because of patent licensing deals it has with the
As a result, legal wranglings over who owns the right to device manufacturers.
use a particular mobile technology will continue to be a
headache for many in 2012. At the same time, the indus- An unlikely alliance between Apple, Microsoft, RIM
try could see greater enforcement around mobile privacy and others spent billions buying bankrupt Nortel’s pat-
next year now that regulators have turned their focus on ents simply to protect themselves against intellectual
the burgeoning mobile space. property suits.

“Patent issues will continue to be a major source of dis- On the privacy front, regulators turned their focus to
cussion in the mobile world, which will dovetail with an mobile in 2011 and this scrutiny will be more intense in
acceleration in deals,” said Jason Koslofsky, an attorney 2012. If no privacy legislation is passed this year, then
with ArentFox LLP, Washington. new legislation is likely to be introduced next year.

“Big companies will continue to compete in the mobile One area of focus for regulators is the Telephone Con-
space, not only through marketing and sales, but also sumer Protection Act, which Congress has expressed
through patent licensing strategies designed to obtain a an interest in updating. Such a move could impact text
piece of every mobile-related transaction,” he said. message marketing.

“One solution companies are employing is buying up The Federal Trade Commission is likely to address how
patent portfolios and companies to attempt to head off children use mobile apps and smartphones, which could
patent infringement claims before they arise. Expect to have significant repercussions for mobile marketing.
see more of these patent portfolio deals at eye-raising
sums and mobile patent litigation to continue to impact The FTC has proposed changes to the Children’s Online
every major mobile company in 2012.” Privacy Protection act that would make geo-based loca-
tion or identification of a mobile device similar to the IP
address for a computer.

“The information would be considered personally iden-
tifiable information, which means marketers would not
be able to market to kids without parental consent,” said
Linda Goldstein, partner and chair at Manatt Phelps &
Phillips, New York.

“And, obtaining consent in mobile is difficult because
there is no robust system developed for obtaining paren-
tal consent,” she said.

“I think you are going to see a lot more enforcement in
the kids area as it relates to mobile.”

Location-based services percentage of overall sales.
Following a growing number of news stories about how
it easy it is to locate a smartphone and what the impli- As the volume begins to reach hiogher levels and a
cations are for consumers, location-based services and few mobile payments systems gain share, this will
apps will be an important part of the discussion sur- also present some privacy issues.
rounding mobile and privacy in 2012.
“This is the year you are going to see mobile pay-
“The need for location information to provide effective ments systems emerge and move toward mobile com-
search and other services for mobile is inherently in ten- merce,” Manatt Phelps & Phillips’ Ms. Goldstein said.
sion with the desire for privacy and to not publicize in- “With that will come additional privacy considerations
formation,” ArentFox’s Mr. Koslofsky said. such making sure that the person authorizing billing is i
n fact authorized to do so.”
“Many users may not understand what information is
gathered and how it is used,” he said. Mobile companies will be well served to pay atten-
tion to which direction the regulatory wind is blow-
“This will be one of the most discussed mobile legal is- ing and to make sure that they are providing proper
sues in 2012 as companies, Congress, and users struggle notice regarding their privacy issues.
to balance the usefulness of the information with the
desire to keep it private.” “Companies should adopt the same privacy principals
that they do on their Web sites because the FTC is view-
While mobile commerce is growing rapidly, it is still small ing the two similarly,” Ms. Goldstein said.


MANUFACTURERS

OEM focus on smartphones in 2012 to leave feature phones in the dust
By Chantal Tode

M
obile device manufacturers will seek to acceler-
ate growth for their smartphone businesses in
2012 as feature phone sales continue to col-
lapse. Introducing lower cost smartphones that offer
much of the functionality of high-end devices is one
of the major ways manufacturers will try to achieve
these goals.

Building viable smartphone businesses will be especially
important for companies such as Nokia and Research in
Motion, which both saw their fortunes dwindle in 2011
because they were not positioned properly to take ad-
vantage of the transition to smartphones.

“The key thing that is strangling a lot of folks is the fea- With only two new smart devices coming out next year
ture phone market,” Michael Morgan, an analyst with built on the Windows operating system, Nokia is not
ABI Research, New York. “We always know that it would likely to gain significant ground in the near future.
be eaten up by smartphones but it seems to be collapsing
a bit faster than expected. “[Next year] is going to be the proving point for Nokia,”
Mr. Morgan said. “Either they are going to turn around
“Manufacturers want to establish faster growing smart- and do it in 2012 or they are going to have to make some
phone businesses faster than they are losing business on big changes again.”
the feature phone side,” he said. “It is a race for survival
for a lot of these folks.” The situation is not likely to be much better for Research
in Motion, which went through a restructuring in 2011
Apple stomping competition as sales faltered.
Nokia saw sales waiver in 2011 and lost ground to Apple,
Samsung because of its weak position in smartphones. “RIM is going to have a rugged 2012,” Mr. Morgan said.
“In 2012, RIM is transitioning to the QNX platform and
moving into smartphones – they are hoping this will put
them back into a technologically relevant space.”

Samsung’s well-balanced portfolio
However, other manufacturers are well positioned to
take advantage of how mobile is evolving and, as a re-
sult, will cement their leadership roles in 2012.

Samsung, with its well-balanced portfolio of high-end
and feature phone devices, is one of these.

“Samsung will still be looking good in 2012 as the Galaxy
platform establishes itself as a key driver of the Android


Motorola advance access to new technology or treat it
the same as other manufacturers.

“Motorola has been marginally successful and now it is
owned by Google,” Mr. Morgan said.

“The question is will Google strangle Motorola or be a
benefit to it,” he said.

As interest in smartphones continues to grow and
consumers integrate the devices into their every-
day lives, handset manufacturers will look for ways to
bring many of the features that have previously only
been available at the high-end of the market to a
wider audience.

Lower prices a must
“In order to make smartphones mass marketable and so
that the carrier can offer it for free with a two-year con-
tract, manufacturers need to drive the price down un-
der $200,” said Wayne Lam, senior analyst for IHS, El
Segundo, CA.

“Making the hardware low enough in cost while also ad-
dressing the functionality of smartphones is key,” he said.
“We are seeing a shift and more of a focus on selling to
that type of demographics.”

platform,” Mr. Morgan said. A wider audience for smartphones could be good news
for marketers.
Apple is also likely to continue to perform well next year
even though it lost its leader Steve Jobs, who retired in “There is a lot more interaction in the ecosystem of ser-
August and passed away a couple of months later. vices with smartphones,” Mr. Lam said.

“Steve Jobs didn’t leave the company without instill- “The marketing potential is significant because the ad-
ing a technology map for at least two years,” Mr. Mor- dressable market becomes a lot bigger with lower cost
gan said. “Apple will be able to subsist off of that easily phones,” he said.
through 2012.
Functionality such as touchscreens and near-field
“They have a portfolio of devices with low price points communication are likely to make their way to these
and high-end devices that are still proving to be very low-cost smartphones.
successful,” he said.
“There should be some interesting business models in-
The wildcard is Motorola, which was acquired by Google troduced next year where Google absorbs the cost of in-
in August for $12.5 billion. In the ensuing months, a lot cluding NFC or Mastercard absorbs the cost to enable
of questions have arisen about whether Google will give mobile payments,” Mr. Lam said.

MEDIA
Publishers to eye mobile monetization in 2012
By Rimma Kats

I
n 2012, media giants and publishers will not only think
of mobile as another revenue driver, but will focus
more on how they can monetize their mobile applica-
tions and build readership.

In 2011, tablet devices emerged and publishers quickly
hopped on the mobile bandwagon to offer their readers
another screen to absorb the editorial content. However,
the media sector is experiencing a paradigm shift from
online to mobile and publishers need to rethink their
strategies to stay on top of the game.

“The mobile channel has given publishers an additional
touch point to connect with consumers as they increas-
ingly turn to a wide variety of devices to search for, read
and are entertained by content,” said Christine Cook, se-
nior vice president of sales and advertising operations at
The Daily, New York.

“Tablet devices allow publishers to earn revenue from
subscriptions and advertising, as well as revenue share
from in-application purchases – a healthy and diversified
revenue portfolio,” she said.

Rise of tablets
Apple’s iPad has been a game-changer for the publish-
ing industry with The New York Times, The Washington
Post, The Daily and Conde Nast being one of the first to
take advantage. The Financial Times Web App was built using
HTML5 technology.
Additionally, many publishers have rolled out mo-
bile apps both in Apple’s App Store and in Google’s HTML5 enables open, cross-platform rich-media stan-
Android Market. dards that help brands’ and agencies’ display adver-
tising achieve the creative and reach across various
However, throughout 2011 there have been con- mobile devices.
flicts about Apple retaining 30 percent of the revenue
from subscriptions sold on iTunes. Although Apple contributed significantly to the
growth of HTML5 – first by refusing to let its
The Financial Times took a different route to drive mobile iOS devices support Adobe Flash, then by launching its own
subscriptions and launched a browser-based applica- rich-media mobile ad network, iAd, many industry experts
tion instead of making the content available via Apple’s still believe that HTML5 is helping companies create rich
App Store. content and bypass the App Store.


However, others do not agree. part of the media mix, on a CPM basis,” Mr. Hayden
said. “There just isn’t enough real-estate or ‘lean-back’
“There is a lot of, in my opinion, wishful thinking that attention span.
HTML5 will replace native apps,” said Brennan Hayden,
vice president at Wireless Developer Agency, East “Mobile media value, then, has to come from superior
Lansing, MI. quality – showing the right ad, to the right people, at
the right time, with a perfectly trackable, highly profit-
“This thinking is bad for mobile media, because native able and frequently converting call-to-action,” he said.
mobile apps are arguably the most attractive mobile- “Mobile is the perfect medium in theory for this objective.”
specific media innovation yet,” he said. “This thinking
leads to the presumption that what we call the digital According to Mr. Hayden, publishers that want mobile
space will absorb and assimilate the mobile space with media monetization should use 2012 to build a premi-
regard to monetization and publishing, and in turn has um product that is probably worth a premium, at least
given some pause to aggressive investment plans in mo- relative to digital.
bile-media-specific technologies and business models.
“Today, any mobile inventory that manages to mon-
“This pause is a mistake, but nonetheless will likely etize at a premium is sold as digital in the $10 CPM
make the 2012 landscape more difficult for loss-making range, with no particular mobile innovation, and no
mobile and app businesses.” premium over the equivalent digital ad,” Mr. Hayden
said. “2012 ought to be the year to change at least
According to Mr. Hayden, media and publishers will need that equation.”
to see continued innovation in this space, however, there
will be less venture investment in the short term.

In 2011, mobile apps were where the action was,
almost exclusively.

In 2012, the more mature companies will field more
well-rounded uses of mobile technology.

“The effective, repeatable and attributable executions
– especially QR codes and location and apps – will in-
creasingly be deployed in a holistic fashion with tradi-
tional media such as out-of-home, print and television,”
Mr. Hayden said.

“This year’s trials and innovations in this integrated mo-
bile paradigm will be commonplace – even imperative
– by the 2012 Christmas season.”

Monetization
Mobile media – as a separately monetizable entity – is
fighting the laws of physics, not technology, when it
comes to monetization.

“It cannot possibly replace or even supplement other
mass media, dollar-for-dollar, and become a significant

MESSAGING
Loyalty and rewards programs will rely heavily on SMS/MMS in 2012
By Lauren Johnson

I
n 2011 brands focused on building databases via mes- “Additionally, the abil-
saging campaigns that offered incentives such as ity to not only track a
sweepstakes in return for an opt-in. In 2012, market- mobile campaign but
ers will focus on ways to cultivate these databases and track the results and
engage the consumers within. redemption by con-
sumer is important,”
Brands and companies will also start to tie their SMS ef- she said.
forts to more measurable programs, such as mobile cou-
pons and loyalty programs. However, mobile redemption “The days of one-way
will need to be more universally acceptable by retailers messaging will change
in 2012. in 2012. Brands want
and need to know more demographic information about
“The ability to generate unique coupon codes and inte- consumers than a cell phone number and that they text
grate into point-of-sale systems for retailers and manu- in a particular keyword.”
facturers will be critical,” said Carrie Chitsey, CEO of 3
Seventy, Austin, TX. Universal redemption
One of the key challenges for brands and companies in
2012 will be continuing to get retailers on board with
mobile redemption that is tied to SMS.

With more companies experimenting with SMS and loy-
alty, retailers need to understand how to process mobile
coupons at the point of sale.

“In order to do mobile coupons and promotions in-store,
retailers have to be able to access mobile coupons,” Ms.
Chitsey said.

“The method of coupon delivery has to be agnostic
so retailers and consumers have channel of choice,”
she said.

“One example of an effective and easy messaging promo-
tion is to run a sweepstakes through mobile to develop
a database and then begin the communication channel.”

By tying SMS programs with rewards and loyalty pro-
grams, consumers are more comfortable opting-in to
text messages and the channel will continue to increase
in 2012.

Despite the rise in mobile device ownership, SMS re-
mains the most universal way to reach consumers via
text message.

“Understand that one size does not fit all, not all of your
consumers have the same use of mobile devices,” Ms.
Chitsey said.

“Finding the happy medium of rolling out multichannels
to see how consumers interact will help establish a fu-
ture roadmap for innovation,” she said.

Call to mobile
According to experts, 2012 will bring more calls-to-ac-
tion for SMS programs.

“I think we’ll see more loyalty clubs triggered by SMS
calls-to-action,” said Jeff Hasen, chief marketing officer brands offer consumers multiple means of engagement
of Hipcricket, Kirkland, WA. - for example an SMS call to action and a QR code will
both lead to a richer experience via the mobile Web or
“We surely will experience calls to action in tradition- MMS,” he said.
al media like TV, radio and print ads, and we’ll also see
In 2012, mobile messaging will continue to battle spam
and SMS programs that bombard consumers with irrel-
evant, constant messages.

According to Mr. Hasen, there will be more than two tril-
lion messages sent and received in the United States in
2012, showing the opportunity that marketers will con-
tinue to have to reach a broad range of consumers with
the channel.

Apple’s iMessage service, which was rolled out this year
to let iPhone owners with iOS5 text other iPhone owners
for free, will pave the way for mobile messaging in 2012
by opening up a free text message program.

RIM’s BBM group messaging service is another example
of a wireless carrier helping consumers adapt SMS into
their everyday lives.

Older demographics, which are typically thought to not
use mobile technology as much, will increase in 2012.

“We recommend brands offer multiple means of engage-
ment,” Mr. Hasen said.

“By giving consumers a choice in how they want to in-
teract, brands will increase participation, drive sales
and gain loyal customers,” he said.


MUSIC

Music industry must set focus on mobile discovery in 2012
By Lauren Johnson

W
ith the introduction of more music streaming
options that are either free or low-cost, such
as Spotify and Rdio, the challenge for mobile
music marketers in 2012 will be discovery.

And, with the numerous choices that consumers have for
accessing music on their mobile devices, companies need
to use added marketing efforts, such as social media, to
draw consumers to their products. It is no longer enough
to just offer free music to users.

“Discovery is a huge issue now that everyone has access
to every track,” said Kristin Frank, general manager of
MTV and VH1 Digital, New York.

“Starting at an empty search box on a music service can
be very daunting,” she said.

“Social networks and all the data they produce around
music make for some interesting opportunities in
product development.”

Music to my ears
2012 will see more mobile-specific features added to
music services, such as location.

Brands and marketers can tie location into its services
to make music relevant and offer recommended tracks brand’s app will continue to be a challenge for the in-
for users. dustry in 2012.

MTV uses location in its Music Meter application, which For 2012, MTV and VH1 plan to update and release appli-
lets users discover new music based on what is trending cations that work with user-generated content, includ-
on the Web. ing polls and features that let users give instant feedback
on what they like and are listening to.
“Go beyond simply playing back music or music videos
and really consider what makes your product unique,” Interactive features that let users interact with con-
Ms. Frank said. “What does your product do best and tent in real-time will be a valuable asset that music
how can that be applied to the music conversation?” brands and companies can use to measure their mar-
keting initiatives, which has always been an issue
Music programmers have traditionally used mobile ap- with mobile.
plications to target smart device owners, but with the
plethora of music apps on the marketplace, getting con- Shared tunes
sumers to find, download and engage with a particular 2012 will continue the transition from personal music


Marketing outlook mobile driving the bandwagon

Marketing outlook mobile driving the bandwagon

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (15)

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie Marketing outlook mobile driving the bandwagon

Ähnlich wie Marketing outlook mobile driving the bandwagon (20)

Mehr von Kumar Gaurav

Mehr von Kumar Gaurav (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Marketing outlook mobile driving the bandwagon