I recently spoke on webinar covering Mobile Marketing. Given that marketing has moved from broadcast to engagement to involvement, mobile has a tremendous role to play. At DDB we are fond of saying, “speed is the new big” and since mobile is immediate it can position a brand in a very unique way.
And uniqueness is more critical than ever. We continue to be faced with staggering choices as consumers. There are roughly 450 new consumer products launched monthly, over 30,000 products in the average grocery store, and I recently counted 73 different “bars” (chocolate, granola, energy) in my local average convenience store. Another factor that requires brands to be unique is the increasingly frugal consumer who has been hit economically. A recent study from Booz & Co. of 2,000 consumers showed that 58% had reduced their spending on eating out and when good times return only 19% of those intend to go back to previous spending levels. So more choice and less volume are putting pressure on brands.
And of course we are seeing incredible changes in behavior in society due in significant part to technology. A recent study from AOL shows that teens and young adults spend $2200 per year with $864 of that going to mobile phones. This group now is occupied forty hours a week plugged into a combination of computer, tv, video games, and radio. This proves that media has shifted to “ME-dia” signaling that it is individuals who carry brand messages and marketers must know who those key players are to influence their brand positively. A study from Nielsen in July, 2009 shows that the most trusted source for consumers is now “recommendations from people I know”. These are all game changers.
As a consumer, I am playing a relatively new role in marketing. I am a big fan of reading and enjoy reviewing books on Amazon. Personally I am influenced more by my fellow reviewer’s opinions than The New York Times book reviews. I will not buy a book rated below three stars and I take pride in the quality of my own reviews as these are scrutinized. Reviewers are ranked based on how the helpfulness of their reviews. So in essence, I am contributing to the entire publishing industry and influencing choice – very heady stuff.
In terms of mobile marketing, we at DDB are seeing significant changes in SMS, MMS, Bluetooth, Smartphone Apps, Interstitials, and iPad Publication ads. So much so that it is difficult to address the rapid changes and massive experimentation within these channels. Without a doubt the mobile advertising sector will grow. Studies show that mobile advertising will grow as evidenced by this one table from eMarketer:
In terms of SMS, 87% of the U.S. now has a cell phone, 95% of those have SMS capabilities, and text messages are generally read within four minutes. Also 2009 was the first year on a global basis that mobile phones were used more for accessing data than they were to make calls. Technology is allowing marketers to do more and more. Bluetooth has the capability to monitor a specific business area waiting for a new possible customer and when this customer approaches, it will offer that person the opportunity to receive a video promotion, a photo or a business card.
Of course applications for Smartphones has become an explosive cottage industry. Jeremy Lockhorn of Razorfish says, “Having an app is kind of the ultimate in pull marketing. We’re talking about probably the most intimate device in consumers’ lives. It’s always on. They carry it with them. When consumers put a branded app on their phone, they’re inviting you into an ongoing conversation and to have a presence on a device that’s so intimate. That’s one of the things that makes it attractive for any brand, whether you’re talking about a branded app or a sponsorship of an existing application. It’s a great way to stay connected with the audience and to carry on a longer conversation.”
And now we have the iPad. Even in its early days it is having significant impact:
- FedEx has bought advertising space on the iPad applications from Reuters, The Wall Street Journal and Newsweek
- Chase Sapphire, a credit card for the high-end market, has bought out The New York Times’s iPad advertising units for 60 days after the introduction
- Advertisers including Unilever, Toyota Motor, Korean Air and Fidelity have booked space on Time’s iPad application
- The Wall Street Journal said a subscription to its app would cost $17.99 a month, and the first advertisers included Capital One, Buick, Oracle, iShares and FedEx
What everyone has to keep in mind when approaching mobile marketing is that it must be part of the larger campaign strategy. There cannot be the “digital” campaign and the “traditional”. It all must hang together and propel each other. I have also seen campaigns that clearly do not have clear and measurable goals. It is not enough to say we intend on growing brand awareness. The metrics have to include lead generation and actual sales to have real impact.
The best mobile campaigns involve the consumer and leverage influencers. They entertain, inform, offer value and incent people to engage with the brand. Like our program in Germany for Future Sports Gym. It was fun program that engaged people. We pasted over the red points of reference on public city maps with much bigger red dots. With their size, these dots covered numerous streets at once. And communicated our message impressively: "You are here. It's time to lose weight. With the fat burning courses at FUTURE SPORTS."
We then asked our target group to send "I am here" as a text message to a certain number. Anyone who did received a GPS-generated route description to the closest Future Sports gym. And anyone who followed the mobile instructions got a 20% discount on fitness courses. In the first two weeks of the campaign, all Future Sports fat burning courses were booked out completely. A simple idea that used the technology available along with on-the-street interaction.
We are definitely in a new era of marketing. One that requires experimentation and patience but also demands action. “We’re all learning. It’s a moving target,” say Mark Ford, president of the Time Inc. News Group. So one cannot afford to sit on the sidelines and wait - our job is to grow the influence and strength of our brands and mobile marketing has a great role to play in making that happen.
Jeff Swystun, Chief Communications Officer, DDB Worldwide
Posted on April 14, 2010 8:36 PM
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Comments (7)
Don LittleField
Information overload but in a good way! Hey Jeff, this stuff is great. I heard you speak recently and ask that you keep up the good work.
Posted by Don LittleField | April 17, 2010 10:15 PM
dawn fowles
Very informative blog with tons of data and facts. I especially enjoyed the work from Germany you describe. Mobile is so interesting and so poorly understood.
Posted by dawn fowles | April 18, 2010 2:14 AM
Dave Nugent
Hey Jeff and DDB,
Great post. Thought you may be interested in this from Mobile Marketing Watch, "Here’s an interesting tidbit- according to data released by AdMob, its network recorded over 100 million mobile ads being served in Singapore alone during the month of March. Impressive nonetheless, but even more so considering the entire county has a population of only 4.8M people.
The spike is mobile ad impressions align with the spike in iPhone usage and ubiquity in Singapore. After the so-called “iPhone wars” took place late last year, which saw all three mobile network operators in Singapore releasing iPhones with low-cost data plans, admob saw a hyper exponential increase in ads being served in the country.
These kinds of numbers still indicate the fast growth in mobile advertising around the world, and the impact one device can have on the entire ecosystem. AdMob indicated that India produced the most impressions worldwide after the U.S, with many other countries rapidly approaching."
Take Care
Posted by Dave Nugent | April 20, 2010 1:39 PM
T. Chuo
This is weird but just yesterday I read a review you did on Amazon for the book Red Inferno and now I see this post and your reference to Amazon! The power of the web I guess.
One point I wanted to make is - does technology change behavior or does behavior dictate technology?
Posted by T. Chuo | April 20, 2010 1:42 PM
Jeff Swystun
Thanks for these comments. To answer T. Chuo's question, the answer is ... yes :)
And regarding behavior, here is a piece from Reuters today:
Third of U.S. teens with phones text 100 times a day
Dan Whitcomb
LOS ANGELES (Reuters) - A third of U.S. teenagers with cell phones send more than 100 texts a day as texting has exploded to become the most popular means of communication for young people, according to new research.
The study by the Pew Internet and American Life Project, which offers a glimpse into teen culture and communication, found that texting has risen dramatically even since 2008, eclipsing cell phone calls, instant messaging, social networks -- and talking face-to-face.
The Pew Research Center said that three-fourths of young people between the ages of 12 and 17 now own cell phones and of those that do, girls typically send or receive 80 text messages per day and boys, 30 per day.
"Texting is now the central hub of communication in the lives of teens today, and it has really skyrocketed in the last 18 months," Pew researcher Amanda Lenhart said, attributing the rise in part to payment plans that allow unlimited texting.
The study's authors also say that, unlike phone calls, text messaging can be quietly carried out under the noses of parents, teachers or other authority figures and, unlike computers, it can be done almost anywhere.
"We've kind of hit a tipping point where now teens expect other teens to respond to text messaging and to be available," Lenhart said. "There is definitely an element of text messaging that fits so seamlessly into their lives."
Text messaging has become so much a part of teenagers' lives that 87 percent of those who text said that they sleep with, or next to, their phone.
Study author Scott Campbell said focus groups conducted by Pew also offer insight into the subtleties of teen communication and culture, revealing for example that, while boys don't typically use punctuation, for girls such nuances are critical.
"If a girl puts a period at the end of a text message (to another girl) then it comes across as she's mad," Campbell said, which explains the prevalence of smiley emoticons.
"They have these practices because they've learned that texts can lead to misunderstandings," Lenhart said. "It's a deliberate thing and it's also part of a culture that's interested in differentiating itself from adult culture."
The percentage of teens with cell phones who sent at least one text message a day increased from 38 percent in 2008 to 54 percent in September 2009, according to the study.
Meanwhile 38 percent of teens said they daily make at least one cell phone call, 30 percent said they talk on a landline phone and 24 percent said they used instant messaging.
Posted by Jeff Swystun | April 20, 2010 2:44 PM
Don Winkler
Thanks for a very informative blog. I was searching the net for an overview of mobile and caught a conversation about this post. Luckily it linked me to it.
Posted by Don Winkler | April 21, 2010 3:38 PM
Brian Jung
It took us long enough. I have to say Ad agencies are still way too reactionary and way too slow in my opinion. We need to do more forward thinking in terms of our marketing strategy - we use buzz words like "holistic" and "media neutral" but our walk is far from our talk. Everyone is concentrated on smart phone apps, and the tangible tactical marketing strategy - but even "mobile" is a bygone term. I think we have to think bigger not just phones but also other devices...PMP, PSP, DS, iPad, Cloud Computing are all pointing to an attitude of a very mobile, always accessible, data consolidation.
In a lot of ways what i call "Mobile Device Marketing" (MDM) creates a much more intimate, customized, and interactive dialog with users. It's my belief that while currently a lot of advertising starts with TV, TV will be relegated fairly quickly as a catalyst or "starter" to what will be a much bigger conversation going from brands to people (and vice versa) with mobile being a big part of the traffic controller for these conversations.
I don't think it will be hard to tie ROI to something like an iPhone or iPad app. I think what is most important is relevancy to the brand, applicability to the campaign and how it fits into a bigger idea. As with any "new" thing (yes i'm looking at you AR), advertising agencies have to avoid jumping blindly on the iBandwagon.
Posted by Brian Jung | April 23, 2010 11:13 AM