

Mobile Marketing Playbook

Published by 360i

Smashwords Edition

Copyright 2010 360i

Thank you for downloading this ebook. As always, we welcome comments, critique, debate, and discussion – you can find us on Twitter (@360i or @bwiener), Facebook (facebook.360i.com) or on our blog (blog.360i.com).

Table of Contents

Foreword

Acknowledgements

  1. Overview

  2. Planning in Mobile Marketing

  3. Search

  4. SMS Marketing

  5. Advertising

  6. Social Marketing

  7. Applications

  8. Commerce & Shopping

  9. Parting Thoughts **  
**

Glossary

Contributor Articles

The Future of Mobile Content & Commerce **  
**By Noah Elkin, Senior Analyst, eMarketer

The Nail for Social Media's Hammer **  
**Interview with Mickey Alam Khan, Editor in Chief, Mobile Marketer

How Mobile Marketing Can Fuel Buzz and Engagement for Entertainment Brands **  
**Interview with Valerie Brown, Director of Consumer Marketing, Bravo

Mobile Innovation: What the U.S. Can Learn from Japan **  
**by Naoki Muramatsu, VP, Digital Business Development, Dentsu Holdings USA

#  FOREWORD

By Bryan Wiener

CEO, 360i

Is this the Year of Mobile? For over a decade this proclamation has turned out to be premature, giving marketers ample reason to be skeptical. The difference looking forward to 2011 is that this is the first time that consumer behavior and mobile platforms have reached sufficient scale for mobile to move beyond an emerging media tactic for mainstream marketers.

Mobile is finally experiencing its tipping point as one of the critical components of the digital marketing landscape, much like search marketing experienced in the early 2000s and social marketing during the past few years. Nielsen reports that within a year, smartphone adoption will exceed the adoption of simpler, feature phones. We're coming to a point where the majority of phones – and consumers – will have Internet connectivity wherever they go.

Mobile is perhaps one of the most exciting and revolutionary forms of media to flourish over the last decade, as it builds exponentially on the groundbreaking changes brought on by search and social. While the PC Internet is completely divorced from the physical world, mobile breaks down these walls and brings the power of the Internet into the real world in real time.

Imagine you're in the grocery store, and you can easily look up a product's ingredients, compare the price of products in the aisles with those in neighboring stores, check other customers' reviews, and see how popular a product is with other shoppers in your area. This is a vision of our not-too-distant future. If someone has access to information anytime and anywhere, how does that change the way consumers think about your brand and the way you have to interact with them as a marketer? This brings both opportunities and challenges to existing business practices – much like the Internet did.

Rather than seeing this as a daunting prospect, consider that mobile allows consumers to bring their digital lives with them wherever they go. This also means that we no longer have to silo our marketing efforts; the opportunity for cross-channel integration and truly rich multiplatform brand experiences has never been greater.

The accelerated intersection of mobile, local, social and commerce across the online and offline worlds means things are going to change incredibly quickly. That's why we've put together this Playbook – to provide a foundation and framework for approaching the changes ahead. In 2009, we issued our Social Marketing Playbook for similar reasons and it received a tremendous response with more than 50,000 downloads to date. We hope that this Mobile Marketing Playbook will be as valuable for marketers looking to make sense of the current mobile landscape and arm themselves for the innovations ahead. Specifically, the aim of the Mobile Marketing Playbook is to help marketers:

  * Work within a framework for establishing a set of clear objectives for their mobile marketing strategy

  * Move beyond the checklist approach with a filter for evaluating the myriad of opportunities within mobile

  * Think of ways to use mobile to merge online and offline strategies, as a hub that bridges the gap

  * Encourage a dialogue about what matters in mobile now, and what's ahead for this new and exciting medium

As always, we welcome comments, critique, debate, and discussion – you can find us on Twitter (@360i or @bwiener), Facebook (facebook.360i.com) or on our blog (blog.360i.com).

Happy reading,

Bryan Wiener, CEO, 360i

#  ACKNOWLEDGEMENTS

Several individuals graciously lent their time and talents to the production of the Mobile Marketing Playbook. We'd like to take this opportunity to thank them for their contributions.

To our featured columnists: Valerie Brown, Eugene Chung, Noah Elkin, Mickey Alam Khan and Naoki Muramatsu – thank you all for sharing your keen insights with us and our readers.

Thanks also to the 360i team who wrote, edited, designed and managed this Playbook: David Berkowitz, Amanda Bird, Carleejean Cook, Natan Edelsburg, Laura Frizzell, Jim Gulsen, Lara Hejtmanek, Sarah Hofstetter, Chris Humber, Kolin Kleveno, David Levin, Tanya Nam, Katie Perry, Jesse Shaver, Sarah Sikowitz, Benny Simon, Paul Stadnyk and Chang Yu.

And advanced thanks to the readers of this Playbook who are moved to comment, share, critique, tweet, scan, blog or generally discuss the contents herein. We encourage you to reach out and share your thoughts directly with us anytime at editor@360i.com, via feedback on our blog at blog.360i.com or on Twitter @360i.

#  CHAPTER 1: OVERVIEW

Ten Reasons Mobile Marketing Matters Right Now

There's so much buzz about mobile marketing that it's easy to dismiss it, or to check off a few mobile tactics and say you're doing enough with mobile.

**Here are the top ten reasons why mobile matters right now.** They illustrate why marketers need a comprehensive mobile roadmap as part of their integrated communications plan to take full advantage of the exciting opportunities ahead.

  1. Your customers most likely own and use mobile devices.

Market research firm comScore reports that as of May 2010, 234 million Americans age 13 and older are mobile subscribers. That's more than 90% of the U.S. population.

  2. Mobile data usage keeps rising,

with Americans especially fond of texting. Nearly two-thirds (65%) of mobile subscribers text, according to comScore, while the Pew Internet & American Life Project reports teens 12 to 17 communicate each other daily with texting more than through any other channel – including talking face-to-face or on the phone.

  3. Mobile Internet usage is taking off,

making it easier and imperative for marketers to connect mobile with their digital marketing programs. eMarketer reports that there are more than 85 million U.S. mobile Internet users, and about half of mobile phone users will use the mobile Internet within a few years.

  4. Smartphone penetration is increasing

to the point where brand marketers can deliver rich experiences through pocket-sized devices. Nielsen reports that within a year, smartphone adoption will roughly match adoption of feature phones (the more basic, functional phones with limited web and app capabilities).

U.S. Smartphone Penetration & Projections

  5. Smartphone competition is expanding the audience that can access rich content.

Mobile ad network AdMob noted U.S. ad impressions on Google's Android operating system reached 46% of the total in March, compared to 39% for the iPhone operating system, marking the first time Android surpassed the iPhone. Also consider Myxer, which has served 34 million consumers 1.3 billion downloads of free mobile content. Skewing toward a younger audience, it has seen a disproportionate share of downloads and traffic coming from BlackBerry devices. BlackBerry has proved especially popular with this demographic in large part thanks to the interest in BlackBerry Messenger (BBM), its instant messenger service.

  6. Mobile is designed to be the most integrated marketing medium the world has ever known.

Along with the integration of the various channels within mobile, to be most effective mobile should integrate with as many other kinds of media as are included in a campaign or program, including online, TV, radio, print and out of home. Mobile devices are always on and accessed everywhere, and the portability alone makes mobile unlike any other form of media. Mobile marketing has near limitless potential to contribute to and build on other marketing programs.

  7. Mobile is great for branding

thanks to several factors: deep engagement, minimal ad clutter and new and constantly evolving advertising experiences. Dynamic Logic found that its mobile MarketNorms across various brand metrics consistently surpassed online norms.

  8. Mobile marketing matters in any vertical,

with any goal. A consumer packaged goods marketer can use mobile display and video ads for branding, SMS for couponing and applications for consideration. Retailers can similarly use mobile in different ways, whether they're trying to drive consumers to the store or launch a new product line. InsightExpress further quantified some of these effects, showing strong performance across brand metrics for marketers in six vertical industries.

  9. Mobile marketing is more than just a single marketing channel.

Consider online marketing, where search, video and social media are all very different disciplines. The same is true of mobile, and these various forms tend to intersect. Coupons can be delivered via text messages that link to mobile barcodes. Mobile display ads often promote applications. Mobile social marketing programs can include video and mobile search, and tend to run in conjunction with a range of other promotions.

Mobile vs. Online

  10. The twenty-first century is the century of mobile.

The "year of mobile" phrase is played out, but it has been true for some time now. The International Telecommunication Union wrote in its 1999 Annual Report, "If 1999 was the year of the Internet, it was also the year of mobile cellular." Since then, there have been several milestones as the number of text messages sent annually rises well into the trillions and mobile ad spending nears the billion-dollar mark. The past few years of innovation have brought the iPhone with its continual improvements, pervasive Android devices and mobile social services that have consumed much of the bandwidth of the mobile Web. The milestones will keep coming at a breathtaking pace.

Campaign Effectiveness – Brand Metrics by Vertical

#  THE FUTURE OF MOBILE CONTENT & COMMERCE

By Noah Elkin

Senior Analyst

eMarketer

Remember when ringtones were all the rage? No one thought twice about dropping $3 to get 15 seconds of a song because it was a quick and easy way to personalize your phone. Indeed, through 2007, revenues piled up for music publishers and wireless carriers alike thanks to the rush to personalization, peaking at more than $700 million, according to SNL Kagan.

Much of this purchasing activity took place "on deck"– the categorized links that came bundled with web-enabled phones. Carrier decks offered benefits to users and marketers alike. First, they enabled marketers to place content and applications with easy reach, meaning users did not have to engage in long (and, at the time, expensive) browsing sessions to find music, games, news or weather. Second, purchases conveniently went right on users' phone bills, putting access to that content ecosystem within a few clicks. But carrier decks were walled gardens by another name, and ultimately that translated into constraints for the end user.

The launch of the iPhone in June 2007 made those constraints more apparent. Although it was by no means the first web-enabled phone, the iPhone broke new ground as a content-consumption device. The built-in Safari browser brought a desktop-like experience to mobile, unlocking a world of media experiences that previously had been imperfectly realized at best. Integration with first the iTunes Store and subsequently the AppStore gave consumers new options for accessing music, games and video on their mobile devices, and new modes for marketers to engage their audience with branded applications.

Apple's model of tight integration between hardware, software and services has helped to ignite the mobile value chain, spurring adoption of devices with dramatically improved feature sets. At the end of Q1 2010, Nielsen found that just under 25% of the U.S. mobile subscriber population had a smartphone. That number is forecast to rise to 49% by Q3 2011, as device manufacturers and wireless carriers increase their marketing push to graduate users to higher-value devices and data plans. The success of Apple's iPad, and the anticipated launch of other tablet-style form factors, will further consolidate media consumption on mobile devices.

Increased smartphone ownership is driving growth in mobile Internet usage. According to eMarketer projections, 142.1 million mobile users, representing 54% of the U.S. mobile user population, will access the web from their mobile devices in 2014, up from 85.5 million in 2010.

Content consumption will likewise increase at a rapid pace. By 2014, eMarketer predicts that U.S. mobile gamers, music listeners and video viewers will number 94.9 million, 52.2 million and 56.7 million, respectively. Moreover, what these mobile content consumers buy and how they buy it is also evolving, driven in part by advances in mobile devices and networks and in part because of broader secular developments in digital content. For example, mobile users are talking less than ever before and using more data-centric functions such as texting and social networks to communicate. The decline in voice calling has hurt ringtone sales.

At the same time, the combination of increasingly ubiquitous broadband access and the steady migration of content to the "cloud" means that mobile consumers are moving more in the direction of "accessing" content rather than owning it, emulating a trend begun on the desktop with software and services. Paid and ad-supported streaming services such as Pandora, YouTube and Hulu offer access to vast content libraries that would be far costlier to replicate through purchases. This shift heralds the rise of subscription and pay-peruse payment plans and boosts the potential of ad-supported and hybrid monetization models.

**Bottom line:** Consumers will continue to pay for content on mobile devices. But whom they pay, what they pay for and how they pay for it are starting to evolve as quickly as the devices on which they consume it.

#  CHAPTER 2: PLANNING IN MOBILE MARKETING

Creating an Integrated Mobile Marketing Program

When planning a mobile marketing program, questions will arise as to which channels, tactics and vendors are most appropriate to incorporate. Marketers can embark on a mobile plan by answering four questions that lead to a much broader number of decisions involved in figuring out how to make the most out of mobile. These questions together comprise the Mobile Marketing Strategic Lens.

  1. What are your goals for mobile marketing?

Are your goals centered more around branding or direct response marketing? Do you need massive reach for the mobile program to be effective? What does the end result look like if the mobile program is successful? What kind of commitment will you make upfront in terms of the staffing and budget allocated? Do you have the time to fully optimize the program? Are you seeking massive scale for impressions, clicks, engagement or app downloads within a brief campaign flight? Answering these questions at the onset will help ensure mobile fulfills its potential as part of your marketing plan.

  2. How is your audience using mobile?

Beyond talking, what are consumers doing with their mobile devices? Which handsets and operating systems are they most likely to use? Are they likely to text, take pictures, search, play games, use social media, read news, look for local businesses, surf the web, download apps, scan barcodes or participate in other activities? With whatother media, including traditional media, does your target audience engage? It's critical to understand your audience and how they are utilizing mobile when creating your plan.

  3. How can you use your arsenal in mobile?

What assets do you have that might make sense to incorporate? Do you have stores or other channel partners? Do you have apps or a mobile-friendly website? What other digital branded experiences do you have, perhaps across social networks? Mobile bridges digital and physical worlds, so consider tangible, real-world assets: products, out-of-home or print ads, retail stores and live events.

  4. Does it follow mobile marketing best practices?

Does the program adhere to how consumers are using mobile media? Does it use the functionality of mobile devices? Does the experience translate well both to the smaller screen size and then the broader real-world landscape where consumers use their mobile devices? What kind of value does it provide to the consumer – information on a new product or service, entertainment, or a discount on merchandise, among many other options?

Marketers who have read 360i's Social Marketing Playbook may notice some similarities between the lens above and the Social Marketing Strategic Lens, which is also discussed in the section on Mobile Social Marketing. The tenets of both are similar, but each lens is designed to address the specific demands of its respective marketing discipline.

Using research and insights to uncover opportunities in mobile

Forrester Research called 2010 the "year that every firm needs a mobile strategy." Understanding the current mobile landscape, relevant consumer trends, and what competitors are doing will help you avoid wasted dollars and increase the impact your program, has on the target audience.

Consumer insights

As consumers increasingly rely on their mobile devices, understanding audiences' motivations in mobile and aligning strategies to these new and changing behaviors will result in the most effective programs. Specifically, this means defining the mobile persona of your target.With limited screen real estate to leverage, having a deep understanding of your customers' mobile usage and motivations will allow you to offer true value exchange that will delight - rather than distract - your audiences.

The types of intelligence that will help paint a picture of your consumer's mobile persona include:

  * The size and composition of your mobile audience:

    * How many consumers can you reach within your target demographic?

    * What are trends for how your target audience indexes with mobile usage?

  * Operating system and handset usage:

    * Does your target use iPhone, BlackBerry or Android devices?

    * How are adoption rates trending for each?

Understanding Mobile Usage

Mobile Activity for Moms Online

Moms over-index heavily for sending and receiving picture mail and gaming, but the most popular non-voice use of mobile for this segment is texting. Source: Nielsen/NetRatings @Plan

  * Usage insights - understanding how your consumers use their devices:

    * Which mixture of SMS, e-mail, mobile web, applications and other mobile channels do they use?

    * When are consumers engaging with mobile? What days and dayparts show the most activity?

    * How much time do consumers spend using their mobile devices?

    * What are their go-to mobile sites and applications?

    * How prevalent is search usage?

    * How likely are they to use geolocation services?

    * How likely are they to play games?

    * Do your consumers complete transactions via mobile devices? How do they shop?

    * Do they extend their multimedia consumption (music, video, etc.) to mobile?

The most common device for females 25-34 is the Blackberry, followed by Apple's iPhone. Source: comScore MobileLens

Resources for gathering syndicated research include comScore, Nielsen//NetRatings, the Mobile Marketing Association and Forrester Research.

Competitive intelligence

Given the nascent nature of mobile marketing tools and techniques, it can be very beneficial to study what other marketers are doing. There's no need to limit yourself to direct competitors either. It may be just as valuable to learn from others in the category as well as from other industries to see how various marketers are reaching their audiences via mobile channels.

Syndicated tools such as comScore offer detailed perspectives on what other marketers are doing in mobile. These tools often include information on brands and industries that are the most active in mobile, with overviews of the creative they're running and what publishers they partner with.

Staying ahead of the curve

Research, especially in an emerging arena such as mobile, is not a one-time endeavor. The market is evolving, new marketing models are being developed, and devices are quickly acquiring new features and functionality. When planning a mobile program, look at the most recent data, but also try to discern trends at least six months ahead to see what's coming. Events such as a new iPhone release, offers from different mobile providers, new entrants in the tablet market and fast Android growth can be taken into account when developing a forward-looking mobile program. Testing new opportunities now can lead to a sizable advantage in the longer term.

Conclusion

The near ubiquity of mobile has made it necessary for any brand that regularly interacts with consumers to consider a mobile marketing strategy. But mobile marketing doesn't have to be a mystery. Taking the time to investigate the landscape, examine consumer interactions with their devices and monitor competitive moves will reduce the unknowns and provide a solid base on which to launch, test and optimize an effective mobile program.

#  CHAPTER 3: MOBILE SEARCH

KEY FACT Google mobile search volume is up 500% in past 2 years

GOALS IT ACHIEVES Sales, purchase consideration, drive to store, content download

BEST INTEGRATION Points Applications, mobile shopping

As mobile devices have become more sophisticated and easier to use, mobile search has become the starting point for consumers on the go. It's often a good entry point for marketers just getting started with mobile campaigns, and it only becomes more important for marketers with a fully developed mobile presence. Build on an online search program by understanding the best ways to use mobile paid search and search engine optimization.

Mobile paid search

According to the Kelsey Group's Mobile Market View Report, nearly 60% of all activities on mobile devices are search-related, making search one of the best ways to reach consumers in mobile.

Before tackling a mobile search plan, it's critical to understand how mobile paid search differs from its traditional web-based counterpart:

  * There is less competition within mobile search, but there are also fewer ads per page across both feature phones and smartphones.

  * Calls to action and user experience can vary based on objective. For instance, click-to-call and click-to-map don't need to point to a mobile site.

  * Shorter search queries means there are greater demands for relevancy and understanding intent.

  * The constantly accessible devices lead to gr eater immediacy with consumers' needs.

  * Shorter creative means marketers must get their point across faster.

Mobile search is evolving in several different ways:

  * Mobile search is especially useful for local queries. Whether they include local modifiers (such as a city name or zip code), consumers looking for "JCPenney" on their mobile phone will expect to find one in their area. The Kelsey Group reported that about one in three mobile searches has local intent.

  * No matter how much better mobile phone keyboards get, mobile users will keep their queries shorter when they can. Optimization in natural and paid search around higher volume keywords will be especially competitive.

  * Voice search is making an impact, and all the major search engines incorporate it. A range of other companies have developed offerings here, including Jingle Networks' FREE-411 directory assistance, Naturally Speaking's Dragon Search application and Apple's Siri. Expect renewed innovation in this area during the next two to three years.

  * SMS search is still relevant for feature phones, where users text a query such as for business listings or stock quotes and then receive results. Given that there's a brief delay between the query and response, these queries will diminish as smartphones dominate the market.

  * On Google Android-powered devices, a search button is built into the phone's hardware, making it possible to conduct searches instantly no matter what the consumer does within the mobile experience. Mobile search listings can in turn appear during a wide range of activities beyond searching from a mobile engine, such as when searching for driving directions or using various applications.

Activities Conducted on Mobile Devices (as a % of mobile users)

  * The results pages themselves will continue to evolve to showcase more mobile-specific content. For instance, in June, Google added application links to its mobile search results, with links to download apps directly from Apple's App Store or Google's Android Market.

A search for local hair salons shows how marketers can use coupons to enhance their mobile location listing.

For select marketers, here's when to include mobile search as part of your marketing mix:

  * Retail/QSR marketers

For marketers trying to drive in-store traffic and sales, mobile search is a great starting point. According to Google's Retail Advertising Blog, 54% of users who researched online but bought offline used their mobile device to conduct their search.

  * Travel marketers

Travel companies can leverage mobile search to capitalize on the popularity of travel to provide information such as flight searches and transactions such as booking of airline tickets.

  * Entertainment marketers

Entertainment companies can promote movie listings, theater locations, TV tune-in reminders, album releases, concerts and other live events.

  * Consumer packaged goods marketers

Within mobile search, marketers can enhance their search listings to include special information and offers such as coupons to incentivize users. (Learn more about coupons in Commerce & Shopping.)

Mobile paid search best practices

  1. Group mobile campaigns separately.

They tend to perform differently from online search campaigns, and you'll often want to adjust the rules accordingly.

  2. Broaden your scope.

Mobile search volume tends to be significantly lower than online search for most keywords, so to achieve the best reach you'll want to target queries more broadly, include more high-volume queries and possibly include additional keywords.

  3. Go local.

If geotargeting matters at all for you with online search, it's going to be vital for mobile.

  4. Incorporate mobile functionality into the creative.

Click-to-call was somewhat useful online, but it's poised to play a pronounced role in mobile search. Anytime a consumer would benefit by talking to a person, from a booking agent to someone at a local store, click-to-call can potentially improve conversion rates.

  5. Target immediate needs.

Mobile Marketer reported that 70% of mobile search users complete their task after one hour, compared to 30% on the PC. Make sure copy and landing pages are useful for consumers looking to meet their needs right at that moment. Microsoft's Doug McMillen told Mobile Marketer,

"As a marketer you need to be there when a user needs you most. There's a huge payoff in terms of emotional connection with a brand if you're right there at the top of the listings and help the user accomplish their task easily when they're highly motivated to connect with you."

Mobile search engine optimization

Search engine optimization (SEO) has evolved significantly over the last two years, extending beyond commonplace activities such as title and META tag optimization to include diverse methods that keep pace with the changing search landscape. Mobile search builds on the basic techniques, though it involves many new considerations to capitalize on mobile devices' design and functionality.

Optimizing a mobile website, regardless of the markup language, still centers around the core tactics one applies to traditional HTML websites. Core optimization techniques such as title tag creation, proper use of META tags, sufficient keyword density in copy, the proper use of HTML page headings, and link development remain vital for greater natural search visibility. With core onsite factors in mind, brands should focus on efforts that impact smartphones and the next generation of mobile users.

When managing multiple versions of a website through one content management system, many of the onsite SEO best practices incorporated into a traditional website can be ported to the mobile version. However, due to the prevalence of dynamic content types such as maps or mobile applications, there are several SEO considerations that are specifically applicable to mobile search.

Mobile SEO considerations

  * With smartphones and other mobile devices maintaining full browser capabilities (with JavaScript), brands should look to optimize mobile sites for the future. XHTML Basic 1.1, XHTML MP 1.2 and HTML5 are good choices for new mobile site development.

  * Utilize browser/user agent detection methods to redirect mobile users to the appropriate mobile version of your website.

  * How fast a website loads can impact how well your site ranks. Web browsing speeds can in turn impact click-through and abandonment rates on mobile devices. Providing users with a simplified mobile version (WAP, XHTML, etc.), which limits the use of large images and other elements that slow page load, can gr eatly improve user interaction and time spent on site.

  * Searching for local information such as business locations and directions is one of the most popular mobile activities. Local directory submissions are critical for brands to maintain accurate listings within map applications such as Google Maps.

  * As mobile naturally aligns with a searcher's location, more emphasis will be prioritized on geotargeted landing page development and customization.

  * Traditional SEO on-site best practices are still applicable. The proverbial spine of your web page is the title tag. Instead of long 120-character titles, consider focusing on the primary three keywords and limit your mobile site titles to 50 to 70 characters in length.

  * Build dedicated landing pages for mobile applications that auto-detect browsers and devices and can automatically load the appropriate application storefront. This will make it easier for a user to download and install the app. It can even prove to be beneficial for non-mobile users.

  * Evaluate where social media content is influencing the mobile audience and develop a participation and value exchange strategy to gain more real-time exposure or links.

  * If your website utilizes a significant amount of rich Internet applications or suffers from congestion of information, consider building a mobile version that simplifies navigation and provides access to the most recent content.

Looking to the future with HTML5

As more brands adopt HTML5, new markup definitions and features will allow for simplified site management and may lead to the extinction of mobile markup languages such as WAP. While they're several years away from becoming mainstream, HTML5 and CSS3 (cascading style sheets) can allow webmasters to create and manage one website that performs efficiently on mobile and traditional desktop devices.

Less Framework, an HTML5-powered CSS framework for building smart website layouts for varying screen widths, is one way to build a flexible multi-column website that intelligently collapses into a single column for small screen devices such as smartphones. As we collectively move closer to an HTML5-rich world, mobile and desktop experiences will become less fragmented and the application of SEO will become much more efficient as the lines dissolve. More on HTML5 is found later in this Playbook in the chapter on Mobile Applications.

Traditional Site

MTV's traditional site includes navigation and content that prove difficult to use in a mobile browser (if the mobile browser defaults to the original website).

Mobile Version

The mobile version of MTV.com, which loads automatically in most mobile browsers, streamlines navigation and optimizes content across all channels.

Conclusion

Marketers with experience in paid search and SEO can maintain their competitive advantage by constantly applying the latest mobile search best practices. Waiting until mobile search mirrors the scale of online search could make it harder to catch up later.

#  CHAPTER 4: SMS MARKETING

KEY FACT Texting is more than twice as popular as mobile browsing or app usage

GOALS IT ACHIEVES Deal alerts, event reminders, persistent CRM to develop relationships

BEST INTEGRATION POINTS In-store, out-of-home, TV, radio

Even with all of the bells and whistles on headline-grabbing smartphones, SMS (or text messaging) still reigns as the most popular mobile activity. It's the most universal functionality, given that SMS is available on almost every mobile phone, from lower-end feature phones to the priciest smartphones. comScore reports 65% of mobile subscribers send text messages, compared to about 30% using the browser and downloading apps.

Mobile Content Usage

For marketers, SMS marketing has the lowest barrier to entry. Once the messaging platform is in place, there is no creative development needed beyond copywriting.

Anyone who's encountered a teenager in the past few years won't be surprised that texting is especially popular with younger consumers. The Pew Internet & American Life Project reports that American teens 12-17 contact peers daily via texting (54%) more than any other communication channel, including calling on mobile phones (38%), talking face-to-face (33%) and interacting via email (11%).

It's hardly just for teens though. An April 2010 study by Merkle found that 63% of U.S. adults 30-39 text, as do 49% of adults 40-49. Additionally, 26% of U.S. adults have opted in to receive commercial messages on their mobile phones with an average of three companies sending them mobile messages monthly.

How SMS fits in with marketing plans

There are several ways that brands can utilize SMS as part of their marketing mix. Below are some approaches to consider.

Building an SMS list for further communication

**Branded shortcodes:** A marketer registers a five- or six-digit number, or shortcode, which often relates to its brand as it's spelled out on the keypad, such as 262966 for AMAZON. Consumers can send a text message to that number to opt in to updates or engage with the marketer. Marketers benefit from owning their brand name, but it's relatively costly and a lengthier setup process compared to other forms of SMS marketing.

**Shared shortcodes** : Marketers can also run campaigns on shared codes. For instance, Facebook enables marketers to have consumers become a fan of their page by texting "like" and the page name to 32665 (FBOOK). It's one shortcode that can be used with millions of pages, as each page has its own unique name. Facebook has tried out offering physical decals for marketers to place in their store windows (see image below), and marketers can use the same messaging in other channels, such as email. With either form of shortcode use, the biggest advantage is the integration potential. SMS callouts can appear in: out-of-home marketing, point of sale locations, TV, radio, print, online display, email and social marketing. In that sense, shortcodes are the most adaptable forms of mobile media, and of any form of media.

Facebook offers a common shortcode (32665, or FBOOK) that any marketer can use to promote their Facebook page.

**SMS contest entries:** Brands can offer users the option to text in exchange for a contest entry. Universal Home Entertainment ran an SMS remarketing campaign for the launch of their DVD "Bring It On: Fight to the Finish." Website visitors were encouraged to text "BringItOn" to enter to win a prize pack. In doing so, Universal was also able to collect opt-ins for an SMS reminder when the DVD went on sale. This is a great example of how brands can drive SMS opt-ins through another form of advertising (TV, Print, OOH or digital).

Myxer promoted Universal Home Entertainment's "Bring It On: Fight to the Finish" with SMS-based prizes.

Utilizing an existing SMS platform as a way to reach your target consumer

**SMS Advertising:** Marketers can append their messages to content that consumers subscribe to via SMS (e.g. news alerts, sports scores, horoscopes, etc). The ads can be used for a range of purposes, from building up the marketer's own SMS opt-in list to driving traffic or engagement.

Marketers can also buy ad space from mobile search providers such as ChaCha, a service that allows users to text questions in to "242242" (ChaCha) and receive answers back via SMS. The questions are categorized (e.g. travel, entertainment, local geographies) and brands can append their message to the answer the user receives to their question. This type of program can work for any brand looking to align with specific content (e.g. health insurance marketers targeting health questions, or a theatrical new release targeting entertainment questions).

Marketers can use SMS to align their brand with an activity that appeals to their target audience. In late 2009, State Farm sponsored a SMS-driven game at a University of Kansas football game. Fans were encouraged to text in to show their school allegiance. State Farm was able to follow up with participants later via mobile. When considering SMS, marketers should limit the focus of their programs to content that aligns with their target consumer's mobile behavior.

Ads appended to SMS alerts allow consumers to opt in to marketing promotions and content. Image source: 4INFO

State Farm encouraged fans to text in to show their college football allegiance. Image source: Mobile Marketer

Marketing options for text message content

Even with the limited character space, marketers have many options for the content they distribute and promote via SMS:

  * Text content, such as product information, informative tips, polls or trivia questions

  * Links going to a mobile website

  * Links to maps, such as for store locators

  * Click-to-call links, leading consumers to retail stores or call centers

  * Multimedia, such as images, videos or ringtones

  * Coupons, from codes that can be entered by the consumer or cashier, or a link to a barcode that can be scanned

SMS can work well for time-sensitive promotions, such as in this American Idol tune-in reminder. Image source: iPhonematters.com

SMS marketing best practices

  1. Stay relevant

When targeting content with any SMS publisher, ensure that your message belongs there.

  2. Ask permission

Always obtain consent in the form of an opt-in before messaging to users. SMS messages can cost money, so it's important that the recipients know what they've signed up for and understand the implications.

  3. Offer something of value

The last thing users want is spam on their phones. Offer something they care about in exchange for permission to reach out to them (e.g., a coupon code or a link to exclusive content).

  4. Use it for time sensitive events

Interested users will appreciate the reminder.

Conclusion

SMS provides a turnkey way for marketers to tie together a variety of programs. On its own, SMS may not create a large impact, but when used in conjunction with other types of media, creative and content, it can create a path through which users can become more deeply engaged with your brand.

#   
CHAPTER 5: MOBILE ADVERTISING

KEY FACT U.S. mobile display ad spending will top $1.2 billion by 2015 (ABI Research)

GOALS IT ACHIEVES Branding, engagement, content download, mobile web traffic

BEST INTEGRATION POINTS Online display, apps, video

The mobile medium has the potential to bring to life the power of digital advertising and unleash a renaissance of creativity and innovation. Within mobile there are opportunities for display, rich media, video and in-game, plus constant advancements as new players and devices emerge. Like the rest of the online media world, the process of deciding which tactics make the most sense should tie back to campaign objectives and an understanding of the target audience, as discussed in Planning in Mobile Marketing.

This chapter will provide an overview of mobile advertising opportunities, explore how each media tactic compares to its desktop counterpart, offer frameworks for evaluating when to include each in your plan and review overall best practices. Finally there will be an overview of what can be measured to gauge success based on the goals of your campaign.

Targeting options

Mobile marketing offers various ways to help advertisers find their audience. As with online, you can reach users based on location, demographic information, content and publisher (app or WAP), but you can also target particular devices and carriers. Here are some targeting methods that you can employ across many forms of mobile advertising:

Geolocation

  * Marketers can locate users in several ways, such as through GPS or wireless tower signals, check-ins at local businesses through social applications, and by using ZIP codes or localities entered in search or weather queries.

Carrier

  * Marketers can specify which mobile providers they would like to target.

Handset/Operating System

  * Marketers can select if they want to target users of the iPhone or select BlackBerry devices, or users of the Android operating system.

Demographic

  * By tapping into non-personally identifiable information provided by the carriers, marketers can select if they want to target men or women in a certain age range.

Contextual

  * Marketers can display ads next to relevant content within the app or site.

Behavioral

  * Behavioral targeting is still in its infancy due t o limitations on tracking users from app-to-app and app-to-WAP. However, companies like Millennial Media offer solutions that can track users' movements from WAP-to-WAP. Millennial MYDAS™ Audience utilizes user profiles, opt-in survey data and publisher-provided meta-data to create audience segments. Furthermore, it is widely speculated that eventually marketers will be able to tap into iTunes-rendered user behaviors and run an iAd campaign to target users. Despite these advances, mobile browsing behaviors differ from online, and curr ently there is no way to track or target users fr om online to mobile or vice versa.

Publisher-created targeting

  * Publishers often offer their own custom targeting vehicles, and for mobile it's no different. For example, Pandora launched its own iPad app that enables marketers to target ads by gender, age, location, type of music and time of day . Similar to full-screen rich media units such as iAd and Greystripe's Immersion Ads, when a user clicks on an ad within the iPad app, the ad will open a new page without interrupting the streaming music. Some of the initial sponsors include Starbucks, Lexus and Budweiser.

Mobile display

Mobile display encompasses any type of banner advertising that takes place on mobile websites or within applications. According to ABI Research, spending on mobile display is expected to grow from $313 million today to $1.2 billion by 2015, fueled by the growth of U.S. adult Internet usage.

Buying mobile display

Mobile display can be priced on CPM (cost per thousand impressions), CPC (cost-per-click), or, in some cases, cost per engagement (CPE) or cost-per-download (CPD). Like buying traditional online media, brands should consider which type of pricing will help them accomplish their goals.

  * CPM – buying guaranteed impressions: CPM media is good for branding campaigns where it's important to achieve a specific impression level and/or run on specific sites.

  * CPC – buying clicks: CPC media works for marketers who want to guarantee traffic to their mobile landing page, but who may not be as concerned with where their advertisements run.

  * CPE or CPD – buying ad engagement or downloads of a mobile app: Similar to CPC advertising, CPE or CPD ensures that a mobile program will deliver the exact action that a marketer is seeking. This type of pricing is good for brands that have invested in interactive creative and want their target audience to interact with their brand within the unit. It also works for marketers who have mobile apps and are interested in driving downloads.

The majority of mobile inventory is currently sold through mobile ad networks. Similar to the early days of online display advertising, networks provide a way for publishers to sell inventory on their mobile sites without dedicating a sales force to it. As mobile inventory and advertiser interest in the medium increases, however, more publishers may opt to sell it on their own.

Mobile ad networks provide reach and scale to marketers looking to buy within the channel. Because the channel is still new, there aren't standard creative specs or sizes. Mobile ad networks help marketers navigate the landscape and serve as a one-stop shop. As with any ad network, the trade-off for marketers is less control over where the ads run, but marketers can mitigate this by excluding sites or specific content that isn't appropriate for their brand.

There are a handful of publishers such as The New York Times, CNN, Weatherbug and Photobucket that are able to sell mobile inventory on their own. This works for marketers looking to round out an existing offline or online buy with that publisher, or for marketers who have custom offerings. It is difficult to scale with publisher-direct buys because inventory levels are still relatively low.

Mobile banners come in a range of sizes to support a range of goals ad handsets. Image source: AdMob

Mobile banners

Mobile banners can be targeted across various channels and categories of mobile sites and applications. In addition, marketers can also target mobile banners against behavioral and demographic attributes.

One of the major benefits of mobile banners is that campaigns can be built around the post-click experience of the banner and do not need to drive the user to a mobile site.

A major challenge facing mobile banner advertising is the lack of standards across the various ad sizes.

Marketers are often required to develop ad sizes for a number of devices ranging in size from 120x20 pixels all the way up to 300x50 pixels. Additionally, third-party tracking technologies are still a work in progress. Marketers must often resolve discrepancies that arise between mobile publishers and third-party reported numbers.

Does this mean marketers should stay away from mobile banners? Definitely not. While mobile banners may require more upfront work, they can still be used to meet campaign objectives such as awareness, traffic and engagement.

Mobile banner advertising best practices

  1. Take into account the various operating systems and devices when developing ad sizes, as mobile banners are usually not purchased based on ad size.

  2. If planning for smartphones, think about the post-click experience.

  3. Take into account how you want to measure campaign success, as mobile metrics can differ from traditional online metrics (see the section on Measurement later in this chapter for more).

  4. Think about where you want your mobile banners to show up, such as on mobile webpages or within applications.

Mobile video

According to Nielsen's Three Screen Report, more than 20 million users watched a mobile video in Q1 2010, which represents an increase of more than 50% year-over-year. eMarketer projects mobile video revenues will climb from $436 million in 2009 to $1.34 billion in 2014.

Mobile video opportunities include pre-, mid- and post-rolls that consist of 10 to 15-second video ads that can run prior to, during or after video content, as well as full-page video interstitials that take over the entire screen prior to content. Marketers can also create custom video companion ads or customized video channels to promote their brand.

Click-to-video ad: Users can click on multiple links from a video ad to take various actions. Source: Rhythm NewMedia

Carousel ad: On a custom landing page consumers can scroll through multiple video ads or clips. Source: AdMob

MMS video ad: Marketers can send video ads via multimedia messaging service. Source: Mogreet, via mocoNews

Best practices for mobile video

  1. Ensure that the aspect ratio for the video is correct, as it will differ from the web and varies across mobile devices.

  2. Make sure the video will work on a small screen; dark and fast moving images won't look great on a mobile device.

  3. Keep video ads short. Most mobile users prefer shorter snippets of content, and slower mobile connection speeds can sometimes cause uncomfortable delays in video load times.

  4. Similar to the post-click experience, think about what the post-viewing experience should be.

  5. Don't use online benchmarks. Instead, create new ones for mobile, as the user experience will vary. Certain publishers and networks will have benchmarks for various verticals.

Mobile in-game ads

According to MobClix, a mobile ad exchange, more than 40,000 mobile game applications have been released in the past year. As of summer 2010, MobClix reported that more than 300 game apps are added each day.

Similar to PC or console-based video game advertising, brands utilizing mobile in-game advertising have the opportunity to reach a rapt audience before or during a transition in gameplay.

Ads within games can be games themselves. Source Greystripe

The sequence above is an example of an advertising campaign on Greystripe's mobile network. While playing a game, at a break before the user moves on to the nextlevel, he or she sees an ad for a movie. The ad itself is a game, but the user has the option to skip it.

Many advertisers have seen great success with mobile gaming. It's important, however, to think about your audience and if they engage with gaming on or off the mobile phone.

Best practices for mobile in-game ads

  1. Determine if your target audience is likely to engage with an ad more if it runs in a game. Such ads can work best for marketers who have had success with other gaming programs.

  2. Temper your investment until you're sure your target audience will engage in gaming. Most in-game advertising is sold on a CPM basis, and brandedgames usually require a development cost.

  3. Understand the audience of the game before choosing to advertise on a specific game. Gaming audiences differ dramatically, as a casual gamer will likely be very different from someone who plays a first-person shooter action game.

  4. Provide value through entertainment or interactions that appeal to your audience. It's not just about getting your message out there, but rather providing an experience that makes the distraction from the game worth it.

Mobile gaming will continue to become more popular as smartphone penetration increases. If done right, mobile in-game advertising can be as entertaining as the game itself. The key is to create the right experience for your audience – one that entertains and leaves the player with a positive feeling about your brand.

Mobile rich media

Just like with online advertising, mobile rich media ads offer a visually stimulating way for users to engage with a brand. There are various ways to capture a user's attention with these ads:

  * Expandable ads are banners that load as standard-sized ad units, and then when the user scrolls over them, they expand over the content of the app or site in order to reveal more information. The expanded portion of the ad can contain anything from a static banner to a form to a microsite.

Expandable ad: Best Buy, Source: Greystripe

  * Prestitials and interstitials are full screen ads (a 300x250 ad unit is standard for iPhone/iPod Touch and Android) that are displayed on an app or site's welcome page or in transition to another section of an app or site.

Prestitial ad: Step Up 3D, Image source: Photobucket

Interstitial ad: 90210, Image source: Jumptap

  * Full-screen engagement ads are a form of rich media engagements that allow marketers to create an immersive environment.

    * iAd keeps users within an application instead of redirecting them to a page in their browser. This enables users to explore the ad and interact with it, and even purchase products.

There are distinct advantages and disadvantages to choosing iAd as of summer 2010. Marketers should check to see if Apple has addressed any of the downsides when considering iAd, as this could change at any time.

Pros:

  * iAd allows marketers to get in front of users as they engage with apps they frequently use.

  * Apple's selling point is that iAd offers interactivity plus emotion. People not only interact with the ad units but also feel emotionally connected while doing so.

  * Apple helps developers make money with a 60% revenue share; this enables them to offer apps for low prices or even for free.

Cons:

  * In order to run an iAd campaign, there is a large monetary commitment up front.

  * At first, these units may have high bounce rates from people clicking just to play around and experience the ads but not actually have any interest in the brand or the campaign. On the flipside, this could benefit some advertisers who are running a brand awareness campaign and seek to capture early adopters.

  * Apple is solely selling, developing and hosting iAd. As a result, you cannot develop your own iAd in-house or use your creative agency.

Greystripe's Full Screen Immersion Ads (formerly iFlash Custom Ads) are an alternative to iAd and offer a similar experience that involves rich media animation, interactivity, and click actions without leaving the actual application. Greystripe's technology allows them to take pre-existing rich media ad units built in Flash and transcode them into HTML5 format that is readable on iPhone and iPod Touch.

Beyond iAd and Greystripe, other ad networks such as AdMob, Millennial Media, and Medialets can deliver immersive creative experiences within applications. Marketers should consider a number of factors when evaluating such networks, including reach, audience demographics, creative offerings, targeting capabilities, transparency of placements, development time required and the responsiveness of account personnel.

iAd promises to grab consumers' attention with immersive creative experiences. Image source: Erica Ogg/CNET

Measuring mobile advertising campaigns

Depending on the objective of your campaign, you will want to consider how to best measure success. For instance, a branding campaign may involve measuring awareness or lift, impression volume, or engagement. Direct response campaigns, meanwhile, may measure clicks, conversions, calls received or coupon redemption.

Brand metrics

  * Brand awareness and lift can be measured using marketing research companies such as Insight Express, Dynamic Logic or comScor e to conduct studies. These studies typically require a specific budget and multiple ad units in order to reach a significant impression level. Marketers can apply what they learn from these studies to optimize creative concepts and messaging.

  * Impressions are generally recorded in aggregate. However, it is important to consider unique impression data in order to accurately determine the true reach of a campaign.

  * Engagement reflects how users interact with a marketer's ad unit or messaging. Interactions can include mouse-overs, clicks, video plays, and drop-off rates, and time spent playing a game.

Direct response metrics

  * Clicks are a meaningful measurement metric if site or app traffic is the main marketing objective. In order to gauge the value of the clicks, marketers should consider the bounce rate, which represents the percentage of initial visitors to a site who "bounced" away rather than interacting with the site.

  * Conversions are determined by the goal of each campaign and help marketers evaluate the effectiveness of their advertising spend. Marketers can measure impact by looking at the conversion rate, which represents the percentage of initial visitors (clicks) to a site or app who converted by taking a pre-determined action.

  * Click-to-call ads contain a telephone number that, when clicked, populates the phone's dialpad with the number. If properly set up, marketers can track how many calls were received, the duration of the calls, and if the desired action was taken.

  * Couponing offers a convenient way to target promotions to a medium that is always on and can act as a redemption tool. Marketers can track coupon redemption and see revenue generated by each individual code to captur e granular ROI. Phones enable users to consolidate customized discounts in a single place, so it is up to retailers to trace use of coupons to prevent multiple redemptions and also track redemption rates. (See more on couponing in the section on Mobile Couponing in Commerce & Shopping.)

Tracking mobile advertising

Although marketers can track clicks and impressions using third-party ad servers such as DART, tracking conversions via third-party tags remains a challenge. Therefore, as these ad servers focus on building out tracking and reporting capabilities, the burden of providing the analytical data rests mainly on the publishers. If tracking application downloads through the iTunes store, the developer needs to install a code snippet that enables the publisher to record conversions. Since discrepancies often exist among ad servers, we recommend using third-party ad server click trackers and standard tags to compare click and impression data. Third-party tracking capabilities should evolve quickly to meet the pressing advertiser demand.

Conclusion

Advertising models for mobile have evolved to be very similar to desktop advertising models, yet it's important to consider how people use their mobile devices compared to how they use their desktop or laptop computers, and how mobile campaigns should differ in light of this. A mobile device is unique to an individual, whereas a computer may be shared at home. A mobile device is also a must-have utility that is rarely left behind, unlike computers that get turned off or put away. Understanding the nature of how a mobile phone fits into someone's life allows marketers to devise strategies that make the most of this channel.

A mobile device is unique to an individual, whereas a computer may be shared at home. A mobile device is also a must-have utility that is rarely left behind, unlike computers that get turned off or put away. Understanding the nature of how a mobile phone fits into someone's life allows marketers to devise strategies that make the most of this channel.

#  CHAPTER 6: MOBILE SOCIAL MARKETING

KEY FACT More than 150 million people access Facebook from mobile devices each month

GOALS IT ACHIEVES Branding, engagement, drive to store

BEST INTEGRATION POINTS Online social media, digital word of mouth, email, loyalty programs

Mobile social media, any form of social media accessed through mobile devices, has much in common with online social media: the power of building relationships with consumers, the large and rapidly growing user base and the potential to incorporate sharing and community functionality into every form of content. Mobile presents new opportunities, as these untethered mobile devices are designed for communication – the raison d'être of social media – and can harness the power of location.

Preparing for mobile social's challenges

Marketers who start learning what works with mobile social media can wind up well ahead of their peers and provide added value for consumers in the process. On the other hand, there are plenty of hurdles with mobile social marketing:

  * Mobile and social are two areas that often don't have clear ownership within marketers' organizations.

  * There's a higher learning curve in both mobile marketing and social media as neither offers clear-cut application of the media buying skills that marketers have honed in other media.

  * Metrics are still a work in progress, as are the business models of many vendors in the space.

  * Budgets are often too small to gauge the real impact of a campaign, and the process can turn off some who want immediate results on a large scale.

Marketers, agencies, publishers, technology providers and others will need to overcome these challenges to keep pace with the consumers and where they are increasingly spending their time.

Mobile social media by the numbers

comScore's April 2010 data reveals that social networking is the fastest growing mobile content category, whether accessed by mobile applications or browsers. There were 15 million U.S. mobile users ages 13+ engaged with social networking via applications, up 240% over the previous year, and 30 million users engaged with social networking via mobile browsers, up 90%.

Facebook reports that more than 150 million active users access the network through their mobile devices. Users accessing its mobile services are more than twice as active on Facebook as non-mobile users. Ground Truth, a mobile metrics firm, reported that in April 2010, 60% of the time U.S. mobile subscribers spent on mobile Internet usage was on social networking sites.

Categories of mobile social media

Mobile social media comprises a broad field, but here are some of the key forms it takes:

**Mobile extensions of online social networks:** The largest social network, Facebook, not surprisingly has the most mobile users, as well. MySpace and other social networks have mobile extensions, such as optimized sites or apps, and many are ad-supported. One can expect that in the coming years, U.S. social networks will follow the same course as Mixi, a leading network in Japan, which now has three-quarters of its users accessing the service from mobile devices.

**Mobile-central social networks:** MocoSpace, Mig33 and Peperonity are three social networks that launched on mobile devices and attract most of their users there. They tend to attract feature phone users and may specialize in reaching certain target audiences, such as MocoSpace with 70% of its 12 million members comprised of Hispanics and African Americans.

**Location-based check-in services:** Users check in to physical locations primarily through mobile applications. See the following section for more details.

**Social gaming:** Many mobile gaming applications are either built entirely on social functionality or rely heavily on social features. For instance, Words With Friends by developer Newtoy is an asynchronous form of Scrabble; it's part of a "With Friends" series that has recorded more than 6.5 million downloads. Gaming company Ngmoco has developed a number of mobile social games where users derive in-game benefits by cooperating with each other.

Gaming has helped propel mobile social media, thanks in part to hit apps such as Words with Friends.

**Mobile web-based sharing:** Any mobile-optimized webpage can include various calls to action to share content and offers with friends.

**App-based sharing:** Many applications utilize Facebook Connect to make it easy to share updates or photos directly through the social network. Apps will often allow users to find and invite their friends through Facebook, Twitter and other networks.

Location-based check-in services

An emerging field within mobile social media is location-based check-in services, where consumers use mobile devices to say where they are, often to earn virtual rewards such as badges and virtual goods. The crowded field of these services includes Foursquare, Gowalla, MyTown, Whrrl, Buzzd, Loopt, Brightkite, SCVNGR – and most recently, Facebook Places. Google and Yelp have also incorporated check-ins into their mobile applications. CauseWorld has turned these actions into acts of kindness with a philanthropic hook, and FoodSpotting lets consumers upload photos of what they're eating wherever they go.

Most of these services don't have the scale to attract marketers looking for mass reach, but many have growing and dedicated audiences with disproportionate numbers of digital influencers, and there are opportunities to reach consumers with the right psychographics and demographics for certain brands.

Here are a few examples of how they're being used:

  * TV network Bravo offers branded badges on Foursquare for those who engage in activities mirroring the characters on their r eality shows. Checking into a New York City restaurant, one might earn the martini glass badge that says, "W ay to drink, eat, shop and spa like a Real Housewife!"

  * MyTown is more of a game than a utility. Players can buy locations and collect rent as they upgrade. For example, H&M offers branded virtual goods to players who check in at their stores. These goods provide large point boosts in the game to help players level up. Advertising Age reported, "During the campaign, H&M was the most searched location within the game, 700,000 users checked in to its retail stores, and 8 million saw its virtual goods."

  * CauseWorld encourages consumers to scan select Kraft products in stores to earn "karma points" that can be donated to charity.

  * IHG (InterContinental Hotels Group) partnered with Gowalla to extend its Hit It Big pr omotion. When users check in with Gowalla at various IHG properties, they may win prizes such as double air miles or gift cards at national retailers.

  * Loopt launched its companion app Loopt Star to reward consumers' loyalty for checking in to local businesses. Promotions include Gap offering 25% discounts for consumers checking in twice to one of its stores, and Universal Music giving five free songs to people checking in at any bar with two friends. Loopt emphasizes the power to get consumers into stores with its cost-per-visit model, similar to Whrrl's pay-per-visit approach.

  * Brightkite ran a promotion with Starbucks that used augmented reality to locate grocery stores that sell the company's VIA products. When finding a store selling VIA, the product's logo could be tapped for more information and multimedia content, including videos.

Now is a good time for marketers to experiment with location-based social promotions, as there are opportunities to build fun, creative promotions that meet a brand's objectives. Marketers should find a balance between spending their consumer dollars on reaching a mass audience with digital, as well as experimenting with smaller bets that can pay off in a big way to reach influencers who can help spread the brand message organically. Influence, not just scale, matters.

Bravo rewards "real housewives" with Foursquare badges.

H&M's real products offer virtual rewards in My Town.

Developing a mobile social marketing strategy

When planning a mobile social marketing program, marketers don't have to reinvent how they go about developing a strategy or determining whether opportunities make sense. There are four criteria in particular you can use, as described in 360i's Social Marketing Playbook, which comprise the Social Marketing Strategic Lens. These operate in parallel with the Mobile Marketing Strategic Lens discussed in Planning in Mobile Marketing.

  * **Does it use your social media arsenal?** Which assets do you have that could resonate well across mobile social media (digital content, physical or virtual goods, celebrity spokespeople, etc.)?

  * **Does it follow best practices for social media** – and specifically mobile social media? Does it fit in with how consumers are using mobile social services and technologies? Does it take advantage of the functionality of mobile devices (voice, location, SMS, camera, the iPhone's accelerometer, etc.)?

  * **Does it provide a value exchange between the consumer and the marketer?** Or to put it simply, what's in it for the consumer? Do consumers gain information, exclusive access, social currency or physical goods? Why will they care?

  * **Does it meet your marketing objectives?** What are you looking to accomplish, and how does this play a role in it? Answering all of these questions will help ensure the program is a success, and just as important, it will help avoid some common pitfalls.

360i's Social Marketing Strategic Lens

Conclusion

Social media is driving much of the growth of mobile media, just as it has fueled much of the growth in online pageviews and content. New sites and applications seem to sprout daily, while business models of existing players continually evolve to meet marketers' needs. Marketers should continue to turn to the strategic lens to evaluate opportunities, as it can increase the chances of success for any social marketing program, mobile or otherwise.

#  THE NAIL FOR SOCIAL MEDIA'S HAMMER

Interview with Mickey Alam Khan

Editor in Chief, Mobile Marketer

Mickey Alam Khan is the Editor in Chief of Mobile Marketer, the leading publisher of news, analysis and opinions on mobile marketing, media and commerce with the goal to help marketers understand how the mobile channel can be used alone or in conjunction with other channels for branding, as well as for customer acquisition and retention. Following he weighs in on mobile social media, and how marketers can approach their customers in the mobile social landscape.

What characteristics of mobile devices lend themselves well to social media?

The anytime-anywhere-always-on nature of mobile phones lends itself well to social media, which is all about connectivity and openness. The phone is with the user at all times, and is especially used for social and personal occasions if it's not a company device. So mobile's the perfect nail to social media's hammer.

How much of mobile social media involves extensions of online social media (e.g., Facebook, Twitter, etc.) versus offerings unique to mobile devices?

I think online social media services such as Facebook and Twitter rule mobile social media simply because of brand awareness and ease of use. Of course, there are strong social media brands such as MocoSpace, Gowalla, Flirtomatic and Foursquare that are mobile phenomena.

Facebook and Twitter are easier to use on mobile devices since the handset constraints require simple design and cut to the chase. How they can monetize social media on mobile devices is another story.

Why should marketers care about mobile social media?

Buzz thrills – or kills. In this day and age when mobile consumers set the tone for communications, it is key for marketers to understand how to manage their reputation on social media sites and services. Anything that smacks of marketing overkill will slow the enthusiasm for the brand.

Indeed, marketers must try to be friendly via social media, but not friends. Let consumers feel that they are part of the brand-building experience. Let them feel they can personalize the relationship to the brand. Also, I don't think we should think of online social media and mobile social media. They're one – it's the Internet on different devices, but it's still interactive. People have relationships with brands regardless of channel.

What challenges can marketers expect, and are there any ways to mitigate those challenges?

Marketers can expect consumers to be in even more control of what marketing and communications they prefer. Newer mobile devices and better sites and applications will raise expectations of the quality of messages delivered, authenticity of experience, value delivered and privacy offered.

To avoid any social media mishaps, marketers must understand that social media is first and foremost a medium for consumers to communicate with each other and shoot the breeze. Any marketing interruption has to be a whisper, not a yell.

#  CHAPTER 7: MOBILE APPLICATIONS

KEY FACT More than 5 billion apps have been downloaded from the iTunes Store

GOALS IT ACHIEVES Engagement, branding, customer retention

BEST INTEGRATION POINTS Search, display, in-store, digital word of mouth

Applications have become an enduring form of mobile media, thanks in large part to the ease of buying apps from Apple's App Store and the increased usage of apps on Google Android handsets. The growing popularity of apps creates new challenges for marketers, as consumers' attention is split between apps and the mobile web. Marketers will have to prioritize and make tough decisions when allocating finite resources.

Mobile app usage trends

One of the biggest drivers of app usage is smartphone penetration. Nielsen reports that by Q3 2011, roughly half of U.S. mobile subscribers will use smartphones, and smartphone market share will only increase from there. comScore reports that U.S. mobile subscribers are about as likely to have used a mobile browser as they are to have downloaded apps, with both activities growing fast quarter over quarter.

Apple's leadership here is uncontested. More than 5 billion apps have been downloaded across Apple mobile devices as of June 2010, and over 225,000 apps are currently available. The second largest app market, GetJar, is an independent provider offering apps across various platforms; it has recorded more than 1 billion downloads.

How marketers can use mobile apps

Marketers have three primary options for reaching consumers through mobile applications:

  * **Advertise:** Ad networks such as AdMob, Quattro Wireless, Millennial Media, Medialets, Greystripe, Celtra and countless others can run ads within applications. It's also possible to run custom promotions directly with many app publishers and developers. Major publishers such as top news and weather apps may offer app ads bundled into a broader cross-channel deal. Ad formats include text, video, polls, lead generation forms, click-to-call, store locators and games.

  * **Integrate:** Marketers can work with select app publishers and developers to create custom, integrated experiences that are far more involved than ad buys. Several such examples are included in the Mobile Social Marketing chapter. Some apps even reject standard ad units and will only run custom promotions. These are of course harder to develop and scale than running a mobile banner across thousands of apps, but the impact can be considerable, as marketers may find deeper ways to connect with their target audiences.

  * **Build:** Building applications is an option for marketers, and the examples below show how apps have successfully been developed to fit in with a marketer's overarching goals. There are several challenges though:

    * Most popular apps are for gaming and entertainment, which may be a fit for certain entertainment and CPG brands but is often not in line with objectives for other marketers.

    * Marketers will need to allocate sufficient budget to build the app and promote it. Without a strong commitment to promotion, the app may never gain enough visibility to break through the tens or hundreds of thousands of other apps. Marketers should also consider what channels they have available for pr omoting the app, from email to in-store to branded social profiles.

    * App development requires an ongoing commitment. The best apps, branded or unbranded, go through constant iterations as they improve based on consumer input, internal ideas and changes in the technological capabilities of mobile operating systems and handsets. Updates also encourage consumers – who may have moved on to other apps – to return and give it another shot. This kind of commitment takes strong leadership and buy-in to muster the time and budget required to keep it going, especially if the app takes time to gain traction.

How marketers are using branded apps

Marketers have already deployed thousands of custom-built apps. The application examples provided here are for the iPhone, since marketers tend to follow the lead of both consumers and developers in starting with the most app-friendly platform, but marketers have also found success creating apps for Android, BlackBerry and other operating systems.

Kraft

Kraft's iFood Assistant, one of the first and still most popular branded mobile apps, helps grocery shoppers decide what to buy and offers recipe ideas forhome cooks. The most entertaining content, cooking videos, still serves a very functional purpose, and consumers are willing to pay $0.99 for the privilege – money they can potentially earn back by reviewing the "budget wise" suggestions within the app.

Kraft's dedication to fulfilling home cooks' needs has made the iFood Assistant a perennial top seller.

Tiffany & Co

Consumers shopping for products with higher price points than a typical grocery list can also find relevant apps. Tiffany & Co created an app that lets marriageminded consumers browse engagement rings and schedule expert consultations via phone or in-store. The app includes a tool, shown below, that lets users place a ring on the screen to determine what size it is.

Tiffany's little blue (and white) app helps consumers shop for gifts in little blue boxes.

What about the iPad?

The iPad is on track to be one of the fastest selling mobile devices ever, if not the fastest. In short, it matters. Yet it's not a mobile device in the traditional sense. It's more of a stationary device, used in situations where one is sitting in one place, whether it's at home, at work, at a coffee shop, or on the train.

Silicon Alley Insider analyzed the top 50 apps for the iPhone and iPod Touch and compared them to the top iPad apps. Games and utilities were popular for both groups, but iPad users also showed strong interest in content and productivity apps. iPad users are more inclined to lean back and consume content or lean forward and get to work.

The iPad may in time resemble the iPhone more, presumably with a front-mounted camera in a future edition to enable video chat and other app interactions. But it will never be as portable as a device someone can stick in their pocket. Click-to-call won't matter at all, and location won't matter as much. For a marketer targeting an audience that's using the iPad or sees how the iPad fits into ways to achieve marketing objectives, the options of advertising, integrating and building remain relevant. Additionally, publishers and marketers will continue to mine the possibilities for using the iPad to distribute digital content and adapt traditional media such as books, magazines and feature-length videos. The device is the best format to date for adapting the aesthetics and intuitive format of traditional content, while providing enhancements such as interactivity and portability.

Top 50 Apps by Category

Includes top 25 paid and top 25 free apps for each device. Category determined by SAI, not by iTunes categorization. Source: Silicon Alley Insider

Evaluating mobile platforms for developing apps

The mobile landscape is fragmented into an alphabet soup of competing technologies, platforms and standards. Should you build for the iPhone, Android and BlackBerry, or should you concentrate on just one platform? Should you support both the iPhone and iPad? What about the different versions of Android?

There isn't one, simple answer – and there won't be anytime soon. The key to developing a successful mobile app or website is to select the devices and technologies that make the most sense for your brand and consumers.

There's no question that iPhone and Android apps get the most buzz. They're sexy, slick and run on the latest, most powerful devices backed by technology titans Apple and Google. However, there is a gap between the number of apps available for these growing platforms and the number of people who actually own the devices.

In the chart below, at first glance, it may seem that Java, Flash Light and Symbian are the natural choices for app development with their large install base.

Mobile Devices vs. Apps Available

However, it's worth noting several points about this data:

  * Older platforms (such as BlackBerry and Windows Phone) lacked app stores until very recently, which accounts for the low number of available apps.

  * It took the Java ME platform (which represents the majority of "flip" phones) more than 7 years to build its library of 45,000 apps, while the iPhone took just 2 years. Development activity on Java ME platform has slowed significantly as consumers turn their attention to smartphones.

  * Some platforms are easier to develop for than others. iPhone OS and Android are developer-centric platforms, while developing for the BlackBerry or Windows Phone is much more complicated.

Developers are definitely paying more attention to the newer platforms. More importantly, iPhone and Android users are much more likely to download and use apps than users of all other platforms. This makes these two platforms (and, to a lesser extent, the BlackBerry) the current platforms of choice.

The difference between mobile websites and apps

A **mobile website** is much the same as a regular website. Both are viewed inside a browser, but mobile websites are built to run on the smaller screens of mobile devices.

There are two ways to approach mobile websites. First, it could be a mobile version of your existing website. This typically provides the same content and close to the same functionality available on your existing website. The primary difference is that the content and functionality is optimized to display in a mobile browser. This is something all companies should consider doing. The fact is that mobile browsing is growing by leaps and bounds, and providing a mobile-optimized experience is fast becoming a requirement.

The second type of mobile website is more like an app in that it provides specific functionality. For example, a car insurance company may have a mobile website that allows users to begin the insurance quote process, but does not provide every other service available on the company's website.

A **mobile app** is an actual program that's installed on a mobile device – the same way Microsoft Word is installed on your computer.

There are some important differences that should be understood when making a decision on whether to build a mobile app or website, as shown in the table below, adapted from DudaMobile:

Methodology for mobile app and website development

It's critical to have a process for evaluating whether a mobile app or website is best for you. The questions below dovetail with the Mobile Marketing Strategic Lens (see Planning in Mobile Marketing) but go into far more detail for this scenario.

  1. Define the value proposition

For every successful mobile website and app, there are thousands that aren't used or languish in app stores. Make sure that your mobile website or app has the potential to rise to the top by validating the concept.

  * Is it useful to consumers?

  * Are there existing apps or mobile websites that do the same thing? If so, what are your differentiators?

  * How will it benefit your brand and business?

  2. Determine your target audience

If it's too broad, your mobile website or app may try to do too many things poorly instead of a handful of things well. If it's too niche, there might not be a large enough audience to be worth the effort. The key is to determine the audience that will get the most benefit from the mobile website or app, and then tailor functionality to meet their needs.

  3. Choose a vehicle

There are several decisions to make when selecting a platform for mobile development. First decide whether to build a mobile website or app.

**Build an app** if your concept requires any of the following:

  * Rich, interactive graphics and user interface

  * High performance

  * Usability without an Internet connection

  * Use of native device capabilities (such as the GPS or camera)

  * Access to other applications on the device (such as the address book or calendar)

**Build a mobile website** if your concept requires any of the following:

  * More frequent updates

  * Shorter development times (in most cases)

  * Less need for an immersive user interface, and more focus on presenting data

  * Lower barrier to entry (no installation required)

Mobile websites can work perfectly well for product information, comparison shopping, store or venue location, basic information about entertainment properties and commerce. Advanced elements such as games and barcode scanners don't work as well, or at all, on mobile sites. If you want to provide immersive entertainment or rich product demos, such experiences may only be possible through apps.

If building an app, choose a platform

Your first step toward a decision should be taking a look at the web server logs of your existing website. You may find that you're already receiving traffic from mobile devices, and understanding which devices can help guide your platform decision. Developing for multiple platforms at once is generally a risky decision – especially if the concept for your app is unproven. Instead, marketers can mitigate risk by picking one platform to focus on and learning from and applying any lessons into the releases for subsequent platforms.

  4. Select tracking

Tracking is critical to your mobile app's success. Understanding how users are interacting with your app will guide future releases. Established tracking and analytics vendors such as Omniture, CoreMetrics, WebTrends and Google Analytics have solutions for tracking mobile websites, although these solutions aren't always appropriate for apps. A number of services have sprung up to fill this gap, tracking everything from the number of installations, geographical location of app users, app revenue, and app usage and behavior. Select vendors include:

  * Pinch Media (http://pinchmedia.com)

  * AppClix/Mobilytics (http://appclix.com)

  * Localytics (http://localytics.com)

  * appFigures (http://appfigures.com)

  * Flurry (http://flurry.com)

Beyond tracking your mobile app or site, also keep an eye on your main website's analytics to determine if significant numbers are arriving from mobile devices, and view the trends over time. An influx of mobile visitors may help justify the investment in a more robust mobile presence. Be sure to take a good first-hand look at the experience on your sites for visitors using the mobile operating systems represented in your reports.

  5. Decide price point

There are several ways to approach app store pricing:

  * **Free:** If your goal is to encourage as many downloads as possible, then a free app is the way to go. Marketers looking to generate buzz should almost always select this option.

  * **Minimal Initial Charge with In-App Payments:** Both the iOS and Android platforms allow for the distribution of low-cost apps (generally $0.99) that contain in-app opportunities for up-selling. For example, Apple's own iBook e-reader app is free, but users can then purchase individual books from within the app. Many games also use this functionality, allowing users to buy game items or access to advanced levels.

  * **Paid:** App Store pricing trends change over time, although $0.99 is still the de facto standard. More complex apps generally fall between $2.99 and $9.99. A small number of specialized applications (such as navigation apps) can be upwards of $50, but these apps are rare.

Below is a table of the price point distribution for the 200 most downloaded paid apps on Apple's App Store as of July 2010:

  * **Free and Paid Version:** An option that's been widely adopted over the past year is to release both free and paid versions of apps. This strategy allows users to experience your app with limited functionality, and then upgrade to the full-featured version once they're hooked.

  6. Integrate advertising See the chapter on Mobile Advertising to learn more about how marketers can run advertising in mobile applications.

Best Practices for Mobile Websites and Apps

  7. Plug in social networks

Users are increasingly engaging with social networks via mobile devices. Marketers can take advantage of this trend by embedding social technology inside mobile websites or apps. The largest and most obvious option is using Facebook. Facebook's API allows you to share app activity (such as a high score in a game, a purchase or an event) back through the social network.

A good rule of thumb is that any social network API available to a traditional website is also available to a mobile website or app. Some social networks have created mobile-specific APIs to ease integration for developers.

  8. Refine over time

Finally, users expect apps to be updated over time. Evaluate user feedback, tracking data and changing business goals to create a roadmap for app updates.

Most importantly for both mobile websites and apps – remember that you are designing an interface for a finger, not a mouse. Positioning of elements on the screen, and control gestures such as pinch, zoom, and drag are unique to mobile.

Flash vs. HTML5

The rise of the mobile web and smartphones set the stage for an unexpected conflict: Adobe's Flash platform vying for relevance against HTML5 and other related web technologies.

Background

For years, Flash has been a de facto standard for web content, with a market penetration of 95% to 99%. No other technology competed with its support for animation, interactivity, and video, or with its browser-agnostic and cross-platform availability.

The iPhone, however, has never supported Flash, and Steve Jobs has declared it never will. Apple instead has cited that much of the web's content was available on its phone, and content providers can use an alternative: HTML5.

A new challenger arrives

HTML5 is the newest version of the language that powers the web. It represents an attempt to adjust to the dramatic changes the web has undergone in the decade since the last major revision. Most significantly, it offers developers built-in tools to handle animation, interactivity and video — all the areas in which Flash has a virtual monopoly.

Apple has a huge amount of influence over HTML5's immediate fate, because of WebKit — the rendering engine that powers not just the iPhone browser, but most other "full" mobile browsers. Because WebKit is so widely used, any technology it supports will achieve market penetration extremely rapidly.

The impact on marketers

As new technologies grow in popularity, marketers must find ways to take advantage of them. Flash's long-time dominance on the web has provided the time to develop a variety of ways to use its capabilities to create effective and interesting advertisements.

But the mobile space is still in its infancy, and it remains to be seen how much of the technology that's already been developed will be transferable to it. Without question, HTML5 is going to be an important tool, and the first companies to master it will reap the benefits. Developers and creatives will need to learn new skills to take advantage of the opportunity.

Don't get lost in the hype

If HTML5 displaces Flash on the web, it will inevitably begin to do so on the desktop as well, over time. But Flash is hardly dead yet. There are still many things that Flash can do that can't be duplicated with HTML5, and Flash has the additional advantage of a huge developer base and a mature suite of development tools. Even in the worst-case scenario, Flash won't be going anywhere soon.

Conclusion

For the foreseeable future, both apps and the mobile web will keep taking up more of consumers' time and attract wider audiences, especially as smartphone penetration takes off. The competition for attention within the app market is daunting, and standing out requires a marketer's steadfast commitment. If creating a branded experience isn't the best fit for a marketer's plans and goals, there are still other ways to reach consumers. Some of the toughest decisions will be whether to prioritize mobile app or website development, as both figure prominently into mobile users' consumption habits. Use the criteria in this chapter to evaluate which option will best achieve your goals.

#  HOW MOBILE MARKETING CAN FUEL BUZZ & ENGAGEMENT FOR ENTERTAINMENT BRANDS

Interview with Valerie Brown

Director of Consumer Marketing, Bravo

Valerie Brown is the Director of Consumer Marketing at BRAVO where she is responsible for the advertising and promotion of BRAVO's slate of original programming across all platforms, including broadcast, print, radio, out of home and digital media. During her six-year tenure with BRAVO, she has forged consumer-driven marketing partnerships and content promotions with major digital media firms such as Twitter, Facebook and Foursquare. 360i sat down with Valerie to learn more about BRAVO's mobile marketing objectives, the challenges of building versus integrating in the crowded mobile app space and more.

What are BRAVO's goals when it comes to mobile marketing? How do you approach this channel as it ties into your overall marketing and business objectives?

The greatest challenge facing television marketers today is the decrease in live viewing, and the increase of what we call time-shifted viewing or DVR viewing. Mobile marketing presents a unique opportunity in our daily task of engaging the consumer before, during and after our show, wherever the user is. We would be remiss to not factor in such a personal device into our marketing strategy given its ever-increasing importance in the consumer's lifestyle. Our goal and challenge is to engage the influential BRAVO viewer who is affluent, engaged and tech forward. 80% of our mobile users are on smartphones, a valuable insight that validates numerous successful applications on the iPhone and iPad such as BRAVO Now, Top Chef Foodie Fight and Guides by BRA VO, to name a few.

Finding deeper levels of engagement extends and strengthens our brand identity off-air. Our iPhone application, Guides by BRAVO, offers nightlife, dining and shopping recommendations, including suggestions from our BRAVO-lebrities. In addition,live experiences such as the BRAVO Talk Bubble encourage viewers to tune-in live for a chance to tweet with their favorite BRAVO-lebrities. Our emerging media team maintains a consistent dialogue with the consumer, pushing messages viaSMS/MMS, introducing them to several successful initiatives such as our mobile clubs as well as to on air experiences such as live voting to engage fans deeper into BRAVO content and experiences.

BRAVO was one of the first brands to partner with the location-based social platform Foursquare. Why did you decide to be part of the initial test with Foursquare, and how did this align with your objectives?

Foursquare's mission of 'go out and do something' fit seamlessly into our mission to engage and create a deeper bond with the consumer on a local level, as well as a medium to offer tips and recommendations from our stars such as Isaac Mizrahi.

It was also an opportunity to reinforce BRAVO as an innovator. In being the first entertainment partner, we created meaningful mobile content and rewards for viewers. Recently, we partnered with Sephora, a like-minded brand in offering Foursquare Real Housewives badge holders coveted, tangible rewards that were endemic to the show. The buzz generated exceeded expectations. In addition, Foursquare provides a unique opportunity for advertising partners in reaching influential consumers such as Real Housewife or Top Chef badge holders who are more likely to recommend a new product or venue. Imagine checking into a department store and being rewarded as a TopChef badge-holder with a 20% discount. This is the potential we see for Foursquare, and why we partnered with them. Our next steps are exploring opportunities for scale.

When do you look to integrate with apps such as Foursquare versus building your own, such as your iPhone Application, Guides by BRAVO?

It's a parallel path. Tremendous challenges exist in building a custom application such as timing, cost and resources in creating and refreshing content. A partnership with an existing application with scale allows us to reach digital influencers in the most timely and cost-effective fashion. In addition, we develop proprietary apps that speak to the core viewer where we can leverage existing efficiencies.

How much of mobile marketing is about promoting the TV programs and driving tune-in as opposed to staying top of mind wherever your viewers are and whatever they're doing?

Until sufficient metrics demonstrate how mobile marketing can affect a rating, our philosophy is to be relevant, buzzy and ubiquitous. Being top of mind is first base, and home plate is always the rating. Custom applications, innovative partnerships and inventive, integrated advertising allow us to achieve this goal.

What are you finding most exciting among what's emerging in mobile marketing?

Mobile social applications such as BUMP are on our radar as well as emerging opportunities in the location aware space. With digital leaders such as Google, Twitter and Facebook now investing in this space, location-aware marketing and mobile marketing overall can no longer be ignored.

#  CHAPTER 8: MOBILE COMMERCE & SHOPPING

KEY FACT 44% of smartphone users have downloaded shopping apps

GOALS IT ACHIEVES Sales (online, mobile and offline), purchase consideration

BEST INTEGRATION POINTS Search, display, in-store, print, out-of-home, online

Mobile commerce is in its infancy, with relatively few consumers making purchases directly from their mobile devices, and relatively few retailers and marketers offering an easy way for consumers to do so. Yet consumers are increasingly shopping via mobile handsets, as they research products and services before completing transactions in stores or online. Coupons delivered via mobile media are sending more consumers to stores, and several competing formats of mobile barcodes are delivering product information largely to smartphone users. The accelerated intersection of mobile, local, social and commerce is erasing the distinction between online and offline environments.

How consumers shop via mobile devices

There are three primary ways consumers use their mobile devices to shop:

  1. As part of the research process before they are ready to make a purchase

  2. In-store when ready to make a purchase decision

  3. Completing transactions directly from the handset

Compete illustrated mobile's role in research in a study of the travel industry. It reported that less than 1% of consumers use mobile exclusively for travel research and booking, but 30% of consumers use mobile in conjunction with online research, and 22% use mobile in conjunction with online booking. Even if it will take time for consumers to be comfortable planning and booking trips using mobile devices, it's already playing a role in the process, a role that will only grow as marketers develop and enhance their mobile offerings.

Mobile Phone Use for Travel Research and Bookings

Compete further broke down all the ways smartphone users shop. The greatest numbers use their phones to get second opinions while they shop (62%) and look up store locations or hours (53%). Another 44% have downloaded a shopping application to their phone, and 39% seek retailer or product coupons.

Compete noted 44% of consumers with smartphones use their devices to check prices of items while shopping in stores. eMarketer Senior Analyst Jeffrey Grau recently cited this trend as well, noting, "Until now, researching online and buying in a store have been sequential activities that take place hours, days or even weeks apart. But customers who bring their web-enabled mobile phones with them into a store can do online research at the point of a purchase decision."

Scott Dunlap, CEO of mobile shopping service NearbyNow, recommended to eMarketer what retailers should do. He said, "Mobile shoppers are simultaneously in the physical world and in the online world at all times... They just don't want to feel stupid by finding out later that [a product is] 30% off on an online shopping site. I think it's very smart for a retailer to put a mobile shopping app in front of consumers because if they end up going to Amazon.com, that retailer is going to get underbid – guaranteed. Retailers need to reward people for showing up in their stores."

Mobile commerce is starting to become more commonplace, as well. A Mobile Marketing Association Survey from May conducted with Luth Research noted that 17% of U.S. adult mobile phone owners used their phone to purchase apps, ringtones and other content. Another 6% received coupons or discounts from their phone, and 6% purchased physical goods or non-mobile content from their handsets.

A Forrester Research study in conjunction with Shop.org released in June indicates the progress being made, noting 74% of U.S. online retailers have a mobile strategy or are developing one. Yet retailers say consumers using mobile web browsers account for less than 3% of total site traffic and 2% of revenue.

Mobile Shopping-Related Activity

How often did you perform each of the following shopping-related activities on your smartphone while shopping and away from your computer?

(Percent of smartphone owners who perform the following activities at least once a month, n=1246)

Mobile coupon usage

Couponing is already a booming industry in a global economy bouncing back from a recession. The New York Times cited retail technology firm Inmar's figures showing 50 million coupons were redeemed in 2009, up 263% over the previous year. Coupons are attracting even more interest now thanks to advents in mobile marketing. Borrell Associates forecasts that U.S. mobile coupon spending will climb from $90 million in 2009 to $6.53 billion in 2014, though it's still well below Internet coupon spending, which will grow from $4.2 billion to $22.6 billion over that span.

Mobile couponing is promising in that it rewards consumers for trekking to retail stores. Like the age-old store-distributed paper coupon, mobile coupons incentivize purchases, but go one step further to capture handset data for future marketing efforts. Creating a mobile-friendly environment is crucial for local store managers, who should ensure that signal levels on all major carriers are strong within their floorspace. Otherwise, prospects may leave to find a signal.

Mobile coupons can be delivered via text message, custom apps, barcodes or other formats. Image source: joepemberton on Flickr

360i Vice President of Retail & ECommerce David Randolph wrote about coupons on 360i's blog in April 2010, saying, "This is the time for retailers to be in full testing mode. Mobile is a long way from mass penetration, but growing in its importance as a staple of marketers' plans."

How mobile coupons work

Mobile couponing can be effective for customer retention, driving consumers to the store or reaching consumers when they're in the store. A benefit of mobile coupons compared to their print counterparts is that consumers always have their mobile devices with them.

There are many ways to allow consumers to sign up for coupons:

  * Set up an SMS program for consumers to retrieve coupons through their mobile devices. IHOP offered consumers a free short stack of pancakes to anyone who texted "IHOPFREE" to a certain shortcode.

  * Allow consumers to sign up online to receive offers to the phone – through a website, a deal or coupon site or a branded presence elsewhere such as through a social network.

  * Partner with location-based ad networks and technologies such as Placecast, iLoop Mobile and NearbyNow, along with other mobile ad networks discussed in the Mobile Advertising chapter, to target consumers with offers in specific locations. Consumers can receive offers directly from the mobile ads.

  * Offer coupons through out-of-home technologies such as Blue Bite that deliver coupons in select stores or outdoor environments via Bluetooth or Wi-Fi networks.

Coupons can generally be redeemed in stores at a register by having the consumer show the cashier the coupon, and the cashier can enter the code. It's also possible to scan the phone directly. A pioneer in the space is Target, which in March 2010 claimed to be the first national retailer offering scannable mobile coupons. Consumers can sign up online, at Target's mobile site, or by texting "coupons" to 827438 (TARGET). Consumers are then directed to a landing page with multiple offers available at the nearest Target, all of which can be redeemed by scanning a single barcode at checkout.

Target consumers can redeem multiple coupons with a single mobile barcode.

Other forms of coupons are evolving through social media. Foursquare reported that when Starbucks offered $1 off any size Frappuccino for its mayors, there were 50% more check-ins at its locations. Milwaukee hamburger restaurant AJ Bombers offered a free cookie to any Foursquare user that added a tip and a free burger for mayors, and it netted a 30% increase in purchases. During summer 2010, Twitter launched its @earlybird account to deliver exclusive offers from marketers, and marketers should expect the program to expand to local and mobile versions if it's successful.

Mobile applications can also connect with marketers' loyalty programs. For instance, dessert chain Tasti D-Lite allows consumers to earn points (and ultimately free products) by broadcasting their check-ins and orders across Foursquare, Twitter and Facebook. The CardStar mobile app for smartphones provides a way for consumers to manage their reward cards for a range of marketers while also offering coupons and deals.

The technology behind mobile couponing is still in its early stages but is progressing rapidly. The New York Times covered an IBM product called Presence, reporting, "Shoppers who sign up can be detected as soon as they set foot in a store. That enables Presence to offer real-time mobile coupons. And tracking shoppers' spending habits and browsing time in various departments can help the system figure out who might be moved to suddenly buy a discounted item." IBM further noted it is employing "predictive analytics," a field that has developed rapidly online. Through mobile media, analytics can connect online and offline behavior.

Mobile payment options

As consumers increasingly complete transactions directly from their mobile devices, there are many overlapping and competing ways to pay for purchases:

  * **Credit cards:** While credit cards are ubiquitous for most mobile phone owners, entering a 16-digit credit card number on a tiny keyboard or touchscreen can try consumers' patience, especially when consumers must also enter billing and shipping information.

  * **Stored registration by site or application:** Sites such as Amazon have many users' registration data on file, and billing and shipping preferences carry over to their mobile sites and applications. It's a major time saver for users, but only for loyal customers who already made a purchase through that site.

  * **Stored registration by handset:** The defaults for making purchases for applications via the iPhone and Android respectively are through iTunes and Google Checkout payment services. These make it easy to buy mobile content, but also consumer products, as Apple demonstrated with its Apple Store app that accepts payment via iTunes logins.

  * **Credit card applications:** Visa developed its In2Pay application that works with a custom iPhone case that can be scanned at retailers' contact-free terminals to instantly process the transaction. Rival MasterCard is letting developers use its payment technology in their mobile and web apps and launched its MoneySend app as a PayPal rival. Going forward, look out for a program reported by Bloomberg where Discover Financial Services and Barclays are working with AT&T, Verizon and T-Mobile to develop a way for consumers to pay by swiping their smartphones over terminals.

  * **Pay via phone bill:** Services like Boku allow charges to appear on a consumer's mobile phone bill after opting in via SMS.

  * **Peer-to-peer payments:** PayPal created an app incorporating Bump Technologies that allows users to pay one another by tapping their iPhones together; payments can also be sent from the app via email. Startups like Venmo also allow mobile money transfers.

  * **Scan credit cards with mobile devices:** Square, launched by Twitter co-founder Jack Dorsey, allows any merchant or user to accept cr edit card payments directly from the mobile device. Retailers could provide these devices to their sales associates or collect payments at events.

Square turns any smartphone into a credit card terminal

Mobile barcodes

Another quickly developing technology within mobile marketing is the use of mobile barcodes, and there are many competing formats. While most barcodes require applications to read them and are much more accessible via smartphones, they're often an efficient vehicle for linking the physical world with mobile media.

Some barcode scanning applications like ShopSavvy and RedLaser center around standard UPC (1D) barcodes that are commonly printed on product packages. 1D barcodes have the advantage of already existing on countless consumer products, but they're more difficult to create and customize.

There has also been traction with 2D barcodes, often thought of as QR codes (beyond QR, there are other similar formats such as data matrix). Additionally, there are many propriety barcode formats built on 2D technologies, several of which are discussed below. 2D barcodes tend to be easy to create, and they can bring up a range of content such as links to mobile websites, text messages, click-to-call phone numbers and multimedia.

Google in particular is especially bullish about QR codes, incorporating them into Google Places. Local businesses can download QR codes that link to a mobile edition of their Google Place listing, or a mobile coupon. The business can then use these codes in stores, in print ads or on other promotional materials.

Additionally, Google has emphasized QR codes to promote apps for its Android devices. Since Google currently has no app store online, app developers use QR codes to link to their mobile applications, as Yahoo did to promote its suite of apps.

Yahoo! Promoted its mobile aps with QR codes.

Barcode case studies

Universal Pictures and RedLaser

To promote the release of the Jude Law film "Repo Men" that included barcode scanning as an integral (and gruesome) part of its plot, Universal Pictures incorporated barcodes into its print movie posters in a program developed in conjunction with 360i. When accessed with the popular barcode scanner RedLaser, a landing page appeared with exclusive content related to the film. This was a rare example of 1D barcodes leading to entertainment content instead of product information.

Bosch and QR codes

To promote its VitaFresh refrigerators in Germany, Bosch placed oversized, wrapped packages of meat purportedly coming from dinosaurs, mammoths and saber-toothed tigers in supermarket freezers. The packages included QR codes that linked to product information for its appliances, garnering 75,000 views from customers in the stores.

Unilever and Jagtag

When Unilever launched its new men's grooming product Axe Twist, it created custom branded barcodes with Jagtag. The codes could be photographed and sent via MMS (multimedia messaging service) to 524824. Consumers in return received exclusive video clips that Axe produced with comedy site Funny Or Die.

Select barcode scanners

There's more than one way to scan a barcode. Here are some of the more interesting scanners to consider for marketing programs, included because of their consumer popularity, marketing applications, technical capabilities or all of the above.

Jagtag

**Supports:** Proprietary format, which can be branded

**Features:** Consumers take a picture of the Jagtag barcode and send it via MMS to receive special links, content, deals or other information.

Microsoft Tag

**Supports:** Proprietary format, which can be branded

**Features:** Microsoft emphasizes the control marketers have over creating and tracking barcodes through this format that must be scanned with a proprietary reader. Microsoft reported that more than 1 billion tags have already been printed. A range of marketers and publications are using tags, from the Mall of America to Get Married magazine. Scan the microsoft tag on the previous page to access a must-read blog.

RedLaser (acquired by eBay in June 2010)

**Supports:** 1D

**Features:** Scan product barcodes to look for local and online retailers, food allergens, nearby libraries, and other information.

ScanLife

**Supports:** 1D, 2D and proprietary EZcode

**Features:** The reader scans a range of barcodes, including its own EZcode (pictured at right). Anyone can create EZcodes for free, but for a fee, business accounts have more options for what actions can be taken with the code. Premium accounts also include analytics for the number of scans, unique users, time of scan, handset, carrier and demographics (where available).

ShopSavvy by Big in Japan

**Supports:** Primarily used for 1D, but also works with 2D

**Features:** With a user base of more than 5.5 million, the app includes inventory and pricing information from over 20,000 retailers. Big in Japan also offers AdOns – ads targeted based on the product scanned and its location. Ads can include content such as product information and video, and its offerings in the works include food and allergy information, comic book previews, event tickets, coupons, trailers and product reviews. Ads are sold on an auction basis for popular barcodes or locations.

Stickybits

**Supports:** 1D and pr oprietary barcodes

**Features:** The Stickybits scanner, powered by RedLaser, allows anyone scanning a product's barcode to leave comments with text or multimedia and view every "bit" others have recorded. The scanner also works with Stickybits codes available for free on the site or as stickers that can be ordered for a fee. Brands can work with Stickybits to have their own content listed first when their products are scanned.

Conclusion

The good news for retailers, packaged goods brands, travel marketers and others is that there are no longer technological hurdles to deliver product information, offer coupons and complete transactions through mobile devices. All of this is especially easy to accomplish with smartphones, and in 2011, smartphone penetration should handily surpass the more limited feature phones in the United States.

However, other hurdles are numerous. Coupon scanners can be difficult to implement at the point of sale. Staff in stores must be trained how to accept mobile barcodes or SMS-based coupon codes. The wide variety of barcodes – including the names (1D, 2D, UPC, QR, etc.) – create confusion among marketers and consumers alike, and both seek a more consistently reliable experience. With completing transactions, the challenges trigger flashbacks to online retailing in the 1990s; security concerns, onsite usability issues and widely varying capabilities by merchants create a chicken-and-egg dilemma.

Mobile shopping in many ways will be easier for marketers and retailers than the 1990s migration to the web. First, consumers and marketers have become far more technologically savvy. Mobile devices are also much more convenient for some aspects of shopping. Coupons can be delivered directly to devices rather than requiring the intermediary step of printing when offering them online. It's also much easier to create a seamless experience for consumers with mobile media to fulfill immediate needs based on exactly where they are. Barcodes themselves are evolving from a novelty to a necessity, delivering detailed product information, discounts and relevant content, and the value proposition is starting to catch on with consumers.

Mobile shopping by many measures has arrived. For the vast majority of marketers working with major brands, the question is not whether consumers are engaging in mobile shopping. Marketers instead need to ask how their consumers are shopping with their mobile devices and how they can reach these audiences as behavior and technologies rapidly evolve.

#  MOBILE INNOVATION: WHAT THE U.S. CAN LEARN FROM JAPAN

By Naoki Muramatsu

VP, Digital Business Development

Dentsu Holdings USA

During the past decade, Japan has been at the forefront of innovating in the mobile space, pioneering QR codes, mobile payment systems, location-based services, mobile couponing, front-facing cameras and mobile social networking. These advanced functionalities and services have moved from innovative technologies to integral parts of people's daily lives in Japan.

As the mobile industry takes off in the United States, here are a few takeaways that we can learn from the mobile phone industry in Japan:

LESSON ONE: Collaboration is key

One of the main drivers of innovation in the mobile phone industry in Japan has been a spirit of collaboration among key stakeholders, including governmental policy makers, operators, device manufacturers, content providers, marketers and agencies. Together, these key stakeholders have helped each other grow the overall industry as well as drive consumers to ,engage with the mobile space.

By agreeing on common technologies that all competitors can leverage, the Japanese mobile phone industry was able to collectively focus on innovating on platforms, instead of focusing on driving platform and technology adoption.

LESSON TWO: Competition is the driver of innovation

At the same time, while the spirit of collaboration has turned key stakeholders into partners, competition is still the primary driver of innovation, with consumers being the primary beneficiaries. Operators continuously lowered pricing plans to acquire more subscribers, content providers developed more attractive offerings to increase traffic, and marketers tried to maximize the power of the new channel by delivering innovative engagement vehicles.

Two characteristics really helped drive this growth – direct billing structure and channel positioning. First, since the beginning, direct operator billing has been widely adopted in Japan, which enabled users to easily subscribe and unsubscribe to paid content; content providers, in turn, can monetize their content without hustle. Second, marketers have utilized mobile both as a media vehicle and as a tool to promote sales. This channel positioning made mobile an intersection of consumers, marketers and content providers, which evolved itself from supplemental media outlets to generate revenue. This "collaborative competition" dynamic has resulted in a truly unique ecosystem within the Japanese mobile industry in which growth and innovation flourish.

LESSON THREE: Focus on the behavior, not the technology itself

While QR codes have taken off in the Japanese market, we all know that QR codes have yet to substantially gain popularity and usage in the Western market. Yes, technological treasures are there. From little trials to large-scale projects, now is the best time for us in the United States to review what Japan has done for the ,industry and to evolve for the needs of our market.

The point, however, isn't just to focus on the technology itself, but to focus on the consumer need. By taking a more consumer-centric approach to developing mobile, we'll ensure the needs of both marketers and consumers are met.

The world is certainly becoming more "flat." We'll soon move away from regional mobile platforms to global ones. With overall mobile growth being accelerated by the emergence of the smartphone, we must take the spirit of "collaborative competition" from Japan and apply it around the world to drive mobile innovation forward.

Eugene Chung, Strategic Development Director at Dentsu Holdings USA, contributed to this article.

#  CHAPTER 9: PARTING THOUGHTS

Overcoming the Challenges of Mobile Marketing

If this Playbook has been largely bullish on mobile marketing, that's because marketers can be doing more to reach consumers who are increasingly turning to mobile as the first screen, not the third. This Playbook has addressed challenges that marketers face, and those are enumerated here. By understanding the challenges, marketers can plan for them and, in the best case scenarios, use them to their advantage.

  1. Insights are often less accessible.

Some research firms have beefed up their mobile offerings during the past year, but such information often isn't as robust as what's available for websites and Internet users.

  2. It's another source of data to monitor.

Marketers need to analyze how mobile users are accessing their mobile sites and how those behavior patterns match up with what users are doing online. This can be even more complicated if there are separate mobile sites and applications.

  3. Fragmentation will be one of the more persistent mobile marketing challenges.

Which devices and operating systems are used by your target customer base? How does your target audience divide their time across various mobile channels? How can you find them across a jumbled array of publishers and ad networks? How do you develop enough creative units that work across all of the devices included in a media plan? Fragmentation becomes a hurdle at so many stages of the process.

  4. Scale will continue to be a challenge in the short-term.

Consider mobile search projections from RBC Capital Markets that ran in Silicon Alley Insider. Over the coming years, mobile search will grow at a faster pace than global web searches, but even in 2012, mobile volume will be about a quarter of web search. The issue of scale pops up everywhere, and it's closely correlated with the fragmentation issue. Do you target consumers on the iPhone where mobile media consumption is robust, or do you go broader across different devices and operating systems to achieve the maximum reach? Scale issues will ease as more publishers, networks and devices ramp up their users, usage and inventory.

Total Searches on Smartphones and PCs (in billions)

  5. Many marketing opportunities are entirely new for mobile.

From SMS ads to location-based check-in deals and mobile barcodes, these new opportunities require new creative and new thinking for how to best use them. The biggest challenge is the learning curve to understand how these very new marketing opportunities can tie in with marketers' overarching strategies.

  6. Costs tend to be too high or too low.

Advertising rates tend to be higher than what marketers are used to paying for similar inventory online, sometimes exponentially so. These costs can often be justified (refer to mobile's brand impact in the Mobile Marketing Overview for some rationale), but it makes mobile more difficult to sell. Alternatively, marketers will often run mobile campaigns with miniscule trial budgets so the impact underwhelms, and there isn't a chance to optimize the campaign. Disheartened, marketers can wind up dismissing mobile as ineffective before fully understanding how to best use it.

  7. Integration is imperative.

Given how seamlessly consumers use their mobile devices to navigate between digital and traditional experiences, marketers need to tell a cohesive story. Email and radio can build SMS lists, in-store messaging and Sunday circulars can promote mobile shopping apps, and barcodes on packaging can drive video views of a trailer. This requires coordination across marketers' organizations and agencies that wasn't always managed with online marketing, and wasn't always necessary in the same way it is for mobile.

  8. The ownership of mobile in a marketer's organization is often unclear.

Is the owner a digital marketing lead, even if mobile has major traditional marketing implications? Is mobile used strategically or more tactically? Which agencies can handle which elements of mobile marketing? Top-down buy-in can elevate mobile's visibility within an organization, but it also needs to be clear who will execute on the vision.

  9. The pace of innovation and change continues to accelerate.

Quick, name the latest "iPhone killer" Android phone being released this week. Name the top paid and free apps in the iTunes store. Name the hot mobile ad network that just got funding. Whatever the answers are, they'll be different next week. Some of what's new and improved will matter, and much of it won't. Even established companies may be under the radar for marketers with limited experience in mobile. Companies like 4INFO, Greystripe, InMobi, Millennial Media, NearbyNow, Nexage, SCVNGR, Square, ShopSavvy and Whrrl all sound like some alphabetic jumble until marketers understand how they fit in with mobile advertising, shopping and social media.

  10. Mobile shopping can try the patience of marketers and consumers.

Coupon scanners can be difficult to implement at the point of sale. Staff in stores must be trained how to accept mobile barcodes or SMS-based coupon codes. The variety of barcodes adds to the confusion. With completing transactions, the challenges include security concerns, on-site usability issues and widely varying capabilities by merchants.

All of these challenges can and will be overcome. Some require a learning curve, from marketers figuring out how to run integrated mobile programs to consumers learning how and why to scan a barcode. Many just take time, as the trends of smartphone adoption, mobile search usage and mobile shopping are all accelerating at a fast clip. Marketers have an incredible opportunity today to address these issues head on: ramping up adoption by educating their colleagues and their consumers, pushing their research vendors, agencies and publishers to address their needs and continually optimizing their mobile programs to better achieve objectives.

Conclusion

We're now at a turning point, where mobile usage is prominent enough for it to be a viable marketing channel for any kind of marketer or brand. At some point, mobile media usage will likely rival and then surpass Internet usage, and this will fundamentally change how marketers find and build relationships with their target audiences.

There are tremendous opportunities within mobile. The perspectives throughout this Playbook can help make the case to expand your mobile marketing initiatives, from the market norms to the shopping habits to the best practices for a range of mobile advertising tactics. Beyond all this, there's the opportunity to experiment, learn, optimize, lead and serve consumers in ways that competing brands aren't able to do yet. These benefits can further add to mobile's returns.

Granted, mobile marketing has its challenges, from fragmented handset and operating system markets to evolving metrics and pricing standards. And the last thing any marketer should do is to allocate a few dollars to some mobile add-on just to be able to say they're doing mobile marketing; that only sets up such programs to underwhelm the marketer – and the consumer.

Such obstacles, though, shouldn't get in the way of incorporating mobile when and how it makes sense. With all of the opportunities mobile offers today, at this point mobile should be included in any major integrated campaign or marketing program, and it should always be part of the consideration set.

As much information as you may have pored over here, it's meant to be a starting point. We welcome any thoughts and questions that arise as we collectively work to address the opportunities and challenges ahead.

#  GLOSSARY

ABOUT 360i

360i is an award-winning digital marketing agency that drives results for Fortune 500 marketers through insights, ideas and technologies. 360i helps its clients think differently about their online presence and evolve their strategies to take advantage of the new world of marketing communications – one where brands and consumers engage in interactive and multi-directional conversations. Current clients include Kraft Foods, JCPenney, Coca-Cola, NBC Universal and H&R Block, among others. For more information and to discover industry insights and trends, please visit blog.360i.com or follow the agency on Twitter @360i.

