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Warc Trends >> Mobile Marketing
Executive summary
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Click here to
download the
full version
T
his report is based on the rapid
evolution of mobile technology, and the enthusiasm with
which it has been embraced. These
developments have transformed mobile as a marketing channel. Mobile
marketing spend across the world
is starting to rise significantly. In the
right circumstances, mobile can be a
powerful tool.
The rise of smartphones and
tablets has deepened the relationship between consumers and their
devices. The connectivity and technology they give to consumers are
helping to drive several consumer
trends, including ‘smart boredom’
and ‘gamification’. They also transform mobile as a marketing channel.
Mobile had always had reach (the
sheer number of handsets in circulation) and location (the fact that
phones go wherever the consumer
goes) in its favour. Now it has much
more besides.
One of the iPhone’s achievements
was to abolish the idea that the
‘mobile web’ had to be a different,
lower-grade experience compared
to the PC-based web. Smartphones
have opened up areas like mobile
search and mobile social networking
like never before. Added to this is the
© Copyright Warc 2012. All rights reserved.
bundle of technology that comes in a
modern phone – cameras, voice and
image recognition, QR code readers,
GPS, and a host of new features.
Mobile check-ins are useful loyalty
Gilt City tracks iPad-based sales
Barclaycard turned an ad into an app
Apps make the difference
For marketers, mobile’s breakthrough
came in 2008, when Apple launched
the App Store. Apps provided brands
with a new ‘way in’ to mobile that
was easy for consumers to use, and
relatively cheap to make.
Apps are still an important feature
of the mobile marketing landscape.
Heineken developed the Star Player
app to activate a sponsorship, and
charity DePaul’s iHobo showed that
apps could work well for not-for-profit
organisations. However, it’s become
clear that for every successful branded app, there are many failures.
Brands have to think carefully about
what they want an app to do, and in
what context it will be used.
All of this means that mobile is
a far more versatile marketing tool
than it ever was in the past. Increasingly, it is being used as a brandbuilding channel. Youth-focused
brands such as Axe/Lynx have recognised the power of mobile for several
years, but the growing penetration
of smartphones among older
Mobile is
dramatically
changing
the way
people are
shopping
and exchanging
information
Heather Hopkins
Freeland, CMO,
Gilt City
www.warc.com
Warc Trends >> Mobile Marketing
Executive summary (continued)
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Click here to
download the
full version
demographics is creating new opportunities for brands such as IBM. New
ad platforms such as Apple’s iAds
may offer new ways to put engaging
content in front of consumers.
Mobile is also becoming a crucial
loyalty tool for brands including
Coca-Cola – some have reconfigured
their loyalty schemes around mobile.
Mobile is particularly powerful when
used alongside real-life events.
M-commerce is small but growing,
and technology such as near-field
communication may make contactless payment via mobiles a reality in
the near future. But it’s clear mobile
does more than just enable transactions. It has a role throughout the
path to purchase, whether consumers
want to search for a product, read
reviews, or look for coupons. Companies such as Kraft and Korea’s Home
Plus have applied these insights
For marketers in some of the
world’s emerging markets, mobile
will be more important as a channel
than the PC-based internet. Mobile
offeris consumers outside the major
cities their first taste of the internet.
As a result, mobile has huge potential for marketers looking to reach
these emerging consumer classes.
The most interesting examples are
© Copyright Warc 2012. All rights reserved.
4%
Mobile’s predicted share of
global adspend
by 2015
Source: Gartner
when brands find creative ways to
use simple technology such as SMS.
For example, Vim in Vietnam put
SMS at the heart of a campaign to
build toilets in schools.
Planning mobile campaigns
With all this in mind, how should a
marketer plan for mobile?
First, they must be sure a mobile
solution is right for their audience
– that the technology is in the right
DePaul saw success with an app
hands, and that mobile will offer
something new.
S
econd, they should ask what mobile can add – is it just extra reach,
or are they using it to enhance
other aspects of their marketing?
F
inally, they should think carefully about metrics. There is no
catchall measure of mobile ROI;
marketers are better off thinking
about how to join up the imperfect
measures that do exist with their
own brand health scores.
Axe used mobile to build its brand in Japan
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Warc Trends >> Mobile Marketing
At a glance Consumers and mobile
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Click here to
download the
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key insights
1
Smartphones have enabled ‘digitally
enhanced downtime’, by making
information and entertainment available to consumers on their commute,
for example.
2
T
ablets are changing the game again,
providing enhanced content options
and becoming the ‘new second screen’.
3
martphone penetration varies
S
by consumer demographic (particularly
age) and by the infrastructure of the
market they live in.
4
M
arketers must understand how their
audience uses mobile devices if they
are to build a credible mobile strategy.
Different audiences require
different approaches.
© Copyright Warc 2012. All rights reserved.
Mobile
enables you
to reach the
best friend
of 2 billion
consumers
worldwide
William Ogle,
CMO Motorola
Mobility
www.warc.com
Warc Trends >> Mobile Marketing
At a glance Mobile-led consumer trends
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Click here to
download the
full version
1
2
3
4
Smart boredom
Mobile allows consumers to use ‘downtime’, such as commutes, more
productively – for example, accessing news or completing small online
tasks while on the move.
The play ethic
The ‘gamification’ trend is wider than just mobile, but mobile technology
takes it to a new level. Consumers can fill spare moments with gaming
(a form of ‘smart boredom’). And location-based features of phones allow
brands to set up games that cross into the real world – mobile-driven
treasure hunts, for example.
The quantified self
Consumers are able to use mobile applications and technology to
gather data on themselves, analyse it, and track progress toward goals.
For example, if somebody is training for a marathon, they can use GPS
technology to track how far their training runs are taking them and how
fast they are going. This gathering and processing of real-time data has
applications in all sorts of areas, including healthcare and finance.
Multi-screen viewing
Media consumption behaviour is being transformed by multiscreen
viewing. Connected mobiles and tablets increase consumers’ ability to
comment on TV content, or to track down information related to it, in real
time. They can even watch two things at once.
© Copyright Warc 2012. All rights reserved.
www.warc.com
Warc Trends >> Mobile Marketing
Data snapshot Rise of smartphones
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
smartphone usage across five key markets
KEY FACTS
Smartphone penetration is
What smartphone users do with their mobiles (%)
US
UK
73
France
64
87
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29
72
85
82
Germany
28
71
82
68
Online video
79
85
82
17
Japan
59
65
28
Social networking
75
45
In stores
Purchasing
growing rapidly. It stood at 38%
in late 2011, with the UK on 45%,
France 38%, and Germany 23%.
ata from Google and Ipsos
D
shows that smartphone owners use their phones for a more
diverse array of activities than
non-smartphone users. The
research reveals very high
usage in areas such as online
video and social networking. A
sizable minority use phones to
make purchases,
Source: Google/Ipsos, quoted on Warc October 2011; original study by Google and Ipsos
However, one issue facing mar-
keters is fragmentation of the
smartphone market. Although
Apple dominates the headlines,
Google’s Android operating
system has the biggest market share in the US, and RIM
retains a chunk of the market.
Microsoft is attempting to catch
up through a deal with Nokia.
US smartphone platform share January 2012 (%)
Apple 29.5
Google 48.6
RIM 15.2
Microsoft 4.4
Symbian 1.5
Palm 0.8
© Copyright Warc 2012. All rights reserved.
Source: comScore
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Warc Trends >> Mobile Marketing
At a glance Mobile’s new formats
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Click here to
download the
full version
KEY INSIGHTS
1
Mobile’s strengths are scale, location,
connectivity and the sophisticated technology that comes in modern phones.
Understanding how to combine these
strengths is key.
2
ew forms of display ads, mobile
N
search and social networking, and
technology such as image recognition
are finally leading to increased mobile
marketing budgets.
3
martphones are transforming formats
S
such as couponing and search, alongside new ‘mobile-led’ formats such as
augmented reality or QR codes.
4
Marketers should be looking at the
emerging area of m-commerce, which
is expanding rapidly in both developed
and developing markets.
© Copyright Warc 2012. All rights reserved.
Mobile is
now an
opportunity
to engage
consumers
in a targeted
and contextual manner
Stephanie
Baghdassarian,
research director,
Gartner
www.warc.com
Warc Trends >> Mobile Marketing
Data snapshot Mobile adspend
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Mobile Advertising Revenue by Region
KEY FACTS
Gartner expects mobile to grow
Worldwide 2008-2015 ($ millions)
North America
304.3
2010
Asia/Pacific and Japan
Total 1,627.1
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Western Europe
257.1
868.8.1
Rest of the World
196.9
701.7
2011
ey to growth are new formats
K
such as in-app advertising,
video and paid-for mobile
search. These have only
become serious options thanks
to the rise of smartphones.
Formats such as SMS are not
expected to grow as quickly.
569.3
Total 3,309.9
from an average of 0.5% of total
ad budgets in 2010 to more
than 4% by 2015. Asia-Pacific
and Japan could secure $1.6
billion in revenues this year,
rising to $6.9 billion in 2015. The
Asian spend is mainly driven by
Japan; despite a huge mobile
audience, China’s mobile ad
market remains tiny, due partly
to infrastructure issues.
1,628.5
410.4
Tech giants such as Apple and
5,791.4
2015
5,131.9
Total 20,610.0
6,925.0
2,761.7
Google are fighting over this
space. Apple launched its iAd
mobile advertising platform in
2010, while Google acquired
mobile ad network AdMob in
2009 for $750 million.
Source: Gartner, quoted by Warc News June 2011
© Copyright Warc 2012. All rights reserved.
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Warc Trends >> Mobile Marketing
At a glance Channel planning
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Click here to
download the
full version
key insights
1
Mobile has a number of roles within
the media mix: it can expand a brand’s
marketing reach, be a response channel
or enhance other media activity.
2
T
here are clear links between mobile
and other media. Mobile can play a
key central role in a campaign, but is
often best used in combination – as The
Economist found in an Indian initiative.
3
lack of clear mobile metrics and a
A
fragmented mobile industry have held
clients back from investing. Neither of
these issues will be resolved soon.
4
L
ike social media, mobile is a not a
one-dimensional channel with a single
use; it’s a platform that can be used differently, depending on client objectives.
© Copyright Warc 2012. All rights reserved.
Brands
should look
for ‘mobile
moments’:
opportunities
to augment
their work
with utility,
immediacy
and contextuality, and
align it with
business
objectives
Scott Seaborn,
Head of Mobile
Technologies,
Ogilvy Group UK
www.warc.com
Warc Trends >> Mobile Marketing
Data snapshot Marketers’ concerns
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Click here to
download the
full version
marketers’ views on mobile
KEY FACTS
When channel planning in
Marketers’ views on issues facing mobile (%)
21
31
21
39
29
42
38
44
24
22
9
Lack of
standardised
metrics
6
Lack of
standardised
formats
40
34
43
33
30
21
21
7
Device OS
fragmentation
9
12
Privacy
issues
Lack of global
mass-market
inventory
38
28
13
13
Lack of
agency
expertise
Limited
opportunity
for creativity
Importance: High
mobile, marketers face a number
of issues. One is the lack of
standardised metrics. In a US
survey of marketers, 69% said
this was of high or medium
importance in determining their
investment in the channel.
15
17
Medium high
Medium low
Low
Marketers’ goals for mobile (%)
Increase brand awareness
93
Increase engagement
86
83
Drive sales in general
86
Support for specific promotions
Customer relationship marketing
77
second issue is the sheer
A
fragmentation of the mobile
landscape. Will a campaign
work on different types of
phone, or different types of
network? In the same US study,
72% said that operating system
fragmentation was an issue of
high or medium importance.
Marketers now have multiple
goals for mobile, and most
see it as a tool for awareness,
engagement, sales and loyalty.
he same survey found that
T
almost 50% of companies do
not have mobile as part of their
formal marketing programme,
or they do it on an ad-hoc basis
because they feel they should.
Source: Interactive Advertising Bureau (US), ‘Marketer Perspectives on Mobile Advertising’, quoted on Warc July 2011
© Copyright Warc 2012. All rights reserved.
www.warc.com
Warc Trends >> Mobile Marketing
Read more on mobile in the full report
This is a
summary
version of
Warc’s Mobile
Marketing
Trend Report
Featured case studies
1
Contents
1 Wyeth Gold,
Hong Kong
4
2 Lynx, UK
Click here to
download the
full version
2
Warc’s Mobile Marketing Trend
Report features eight chapters.
Each offers analysis, case studies, data and action points.
3 Johnnie
Walker, US
1T
he Consumer Landscape
4 Land Rover,
Austria
2N
ew Marketing Opportunities
5 Vim, Vietnam
Technogy and consumer trends
The options open to brands
5
6 The Economist, India
3A
pps: Mobile’s Game-Changer
Creating successful apps
4M
obile as a Brand-Builder
Mobile’s role in brand campaigns
5M
obile as a Loyalty Tool
Adding value to CRM activity
6M
obile as a Sales Driver
The new path to purchase
3
7M
obile in Emerging Markets
6
Reaching new consumers
8M
obile Channel Planning
Where does mobile fit in?
Download the full report
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