Mobile Marketing - Past, Present and Future
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1 Mobile Marketing: much more than SMS communication
2 Agenda What is Mobile Marketing Figures and facts on Mobile Marketing References and cases Ericsson AB 2008 Commercial in confidence 2
3 Agenda What is Mobile Marketing Figures and facts on Mobile Marketing References and cases If the website is your supermarket, then the mobile site is your 7Eleven. - Per Holmkvist, CEO Mobiento Ericsson AB 2008 Commercial in confidence 3
4 What do you mean by Mobile Marketing? Ericsson AB 2008 Commercial in confidence 4
5 Marketing media Multi-channel campaign deployments Print TV web SMS/ MMS Idle time Radio Mobile Mobile TV and Video Ringback Adv. outdoor Applications/ downloads/ Games Mobile Search WAP/ mobile web Ericsson AB 2008 Commercial in confidence 5
6 Relevance for the advertisers Demographic targeting Behavioral targeting CPM rate Personalised advertising $50 Anonymous Advertising Contextual advertising Ad based on contextual criteria, eg type of content, location. Ad based on specific, personal criteria, eg preferences, location, usage, time. Ads are not based on any targeting Criteria. - Better targeting, more money Level of targeting Source: Ericsson Ovum, AB 2008 May 2007 Commercial in confidence 6
7 Reach the audience Use Mobile Advertising in a Context Be creative and reach people in various ways Different media has different CPM levels. Values based on: Closeness to viewer Level of details of demographics Level of targeting possible Attention value Level of interaction Level of intrusion Combine media with different CPM level and different targeting levels for maximized efficiency and reach Ericsson AB 2008 Commercial in confidence 7
8 Prerequisites for advertising in the mobile phone Advertising in the mobile phone should not Make a small screen tiny Screen size is one of the major drawbacks of the mobile phone and consumers aren t ready to compromise the already small screen size for the sake of advertising. Imply a direct cost to the user Due to the fact that many networks charge Internet access by the bit, an ad in the mobile phone is actually a direct cost to the consumer and no consumers are willing to pay for ads. Slow down the phone Consumers are worried to receive heavy ads that claim the already strained downloading speed of the mobile phone s Internet connection. Invade the users private sphere without permission! PUBLIC SPHERE SOCIAL SPHERE PRIVATE SPHERE Browser Voice SMS Instant MMS messaging Ads are intrusive WAP portals Ads are accepted Ericsson AB 2008 Commercial in confidence 8 Mobile TV Mobile advertising should not be intrussive, and Ads are needs a part of the to offer environment added value also to the user GPS
9 Agenda What is Mobile Marketing Figures and facts on Mobile Marketing References and cases Ericsson AB 2008 Commercial in confidence 9
10 The main Fact!! The audience is changing... 10,000 hours of mobile phone use 250,000 s, IM, and SMS 5,000 hours of video game playing 3,500 hours of online social networking MySpace/ YouTube Sharing/ Blogging Different expectations about work and play Technologically literate Constantly connected Content creators and multi-taskers Source: The Digital Natives Project (2007), Pew Internet & American Life Project (2007), Financial Times (September 20, 2006) The digital natives are here to stay Ericsson AB 2008 Commercial in confidence 10
11 The main Figure!! The consumption is also changing... Global consumption of media during leisure time by age group (hours per week) Under TV Radio Newspaper Magazines Cinema Digital Source: Adapted from Financial Times, Advertisers in search of revenues look to web s latest heroes, 23 August 2006, based on figures from Nielsen/Net Ratings & Credit Suisse The global consumption of media today is primarily in digital form Ericsson AB 2008 Commercial in confidence 11
12 Figure 1: Mobile Content Revenue Composition $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- SMS MMS IM Ringtones Music MP3 Ringback Tones Mobile Video Games Mobile Web Wallpapers Mobile Radio Downloadable Apps Uploading of photos/videos Advertising Worldwide Rev ($USD millions) Messaging 2007: $51B 2010: $62B Infotainment 2007: $22B 2010: $52B Advertising 2007: $2B 2010: $10B Source: Gartner, Telephia, IDC, RCBG analysis, May 2007 Ericsson AB 2008 Commercial in confidence 12
13 Figure 2: SMS still predominant in mobile marketing Source: Jupiter Research Wireless Model 5/05 (Western Europe only) The US mobile marketing landscape by revenue 2006 Source: Pyramid Research During 2006, SMS accounted for the majority of the mobile marketing revenues But this is changing... Mobile Advertising Spend $14.4Bn in2011 Source: Strategy Analytics, May 2007 Ericsson AB 2008 Commercial in confidence 13
14 Figure 3: Comparing the interactivity effects of advertising For a reference point it s interesting to consider interactivity effects of advertising on the Internet and in the mobile phone Click-through rates on the Internet Click-through rates on the mobile - Average CTR: 0,1-0,2% - Excellent CTR: >0,5% - CTR is almost always above 1% and in many cases as high as 20-30%. Ads that deliver excellent CTR: Opt-in ads Big bangs Interstitials Layer ads Panorama banners The ad formats that deliver excellent CTR are also often ad formats that interfere with the consumers usage of a website. It can be argued that there s a trade-off between effect and annoyance. The high CTR levels for advertising campaigns in the mobile phone is an indicator of high attention and are in that capacity a strong argument for the mobile phone as an effective advertising channel. But, in many cases the high CTR is most likely an effect of novelty. Consumers aren t used to receiving ads in the phone and are therefore curious about the ads more as phenomenon than for their messages. A realistic assumption is that CTR:s on the mobile phone will decrease significantly the more mature the market becomes. Source: Ericsson ConsumerLab study, Nov 2007 Ericsson AB 2008 Commercial in confidence 14
15 Fact 1: Much more than SMS Coupons Textual ads using SMS Branded content download Interactive sites Ring back advertising Branded theme Banners Picture logos using MMS Banner in chat Video on demand, Mobile TV Idle screen advertising Sponsored free text Ad on load (common in games) Search Tickers Screen saver Sliding ad Smart ad Branded buddies Outdoor interaction (e.g. using SMS) Ericsson AB 2008 Commercial in confidence 15
16 Fact 2: Buzzing with the potential Voices from the industry Mobile is potentially more powerful medium than TV the growing importance of mobile as an advertising medium means we should be spending 50% of our marketing budget on mobile. (James Eadie, Coca-Cola, Dec 2005) 25% to 30% of the $100 billion spent each year on brand advertising will find its way onto the mobile screen. (John Stratton, Verizon CMO, Feb 2006) mobile phones will replace TV as most important medium for the industry (Andrew Robertson, CEO BBDO UK) "There is an emerging advertising business model online, a la Google, a la Yahoo. We have to find a way to monetize this and create new revenue streams and we intend to do this in the next one to two years. (Arun Sarin, CEO Vodafone, May 2006) Mobile sounds like the ideal medium that advertisers will pay a premium for. The impact is huge the incremental sources of revenue significant (Arun Sarin, CEO Vodafone, Feb 2007) Source: Ovum, May 2007, Ericsson Mobile advertising study, Feb 2007 Ericsson AB 2008 Commercial in confidence 16
17 Fact 3: Investments expected to grow 40% of major European brands have already deployed SMS campaigns, and 18% have deployed MMS campaigns By % of brands in Europe will use SMS and MMS messaging to reach their audience, with nearly one-third planning to spend more than 10% of their marketing budgets on the mobile channel In five years 52% expect to spend between 5% and 25% of their total marketing budget on mobile marketing Source: Visiongain 2006 Ericsson AB 2008 Commercial in confidence 17
18 Supporting the Value Chain SUPPLY DEMAND Value chain: Brands (or advertising agencies representing them) Media Agencies (representing brands or advertising agencies) Sales Houses (representing operators and publishers) Operators & Publishers (Offering advertising space) Requires: Offers Reports Profiles Reports Campaign Mgt Trafficking Profiling Ad serving Reporting Profiling Ericsson AB 2008 Commercial in confidence 18
19 Agenda What is Mobile Marketing Figures and facts on Mobile Marketing References and cases Ericsson AB 2008 Commercial in confidence 19
20 Ericsson makes it happen Examples of real-life implementations NRK Mobile TV advertising trial Turner Bringing media and telco closer together Mobile Widgets for easy access Daymler Chrysler Ericsson providing messaging connectivity IKEA Mobile campaign as a way to extend the life of their catalogue Ericsson AB 2008 Commercial in confidence 20
21 Mobile Marketing enablers... Rendering is crucial to ensure a right delivery to all devices Ericsson AB 2008 Commercial in confidence 21
22 KiBi Cards Marketing material in your hand Another window of opportunities for mobile advertising A promotional tool which makes accesing mobile content easy for the end user - content is one click away!! Call the service and listen Click a button on the card. Then, the card plays a short tune The content of the button is sent to you Physical real estate great piece of merchandise Creates a new distribution channel that complements the traditional downloading methods Ericsson AB 2008 Commercial in confidence 22
23 Bidi Codes Image recognition Mobile phone camera used as marketing tool Another window of opportunities for mobile advertising User take a photo with their phone, send it and can be taken directly to a website To receive more information about the subject picture; To download content (song/video); To immediately won prizes. Broad areas of application: Users can click and get: movie trailer, ring tones, address of closest cinema, coupon/ticket for next show Recognition Capacity Images are unaffected by movement or changes in angle or scale, shadows or changes in light Ericsson AB 2008 Commercial in confidence 23
24 Reporting of campaign information Building a powerful CRM Reporting crucial for success Ericsson AB 2008 Commercial in confidence 24
25 Multi-channel distribution Ericsson Networked Advertising Distribution Interaction Valuable offer to the consumer Advertisers Content Partners Advertising enabling platform Mobile TV MMS SMS WAP IPTV HTML Web TV Podcast User data feedback Carry the brand across platforms Ericsson AB 2008 Commercial in confidence 25
26 Ericsson AB 2008 Commercial in confidence 26
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