THE CURRENT STATE OF MOBILE MARKETING Five Concepts to Consider for Optimized Results
THIRD TO SECOND TO FIRST SCREEN: THE EVOLUTION OF MOBILE MARKETING Once described as the third screen, today Mobile is increasingly viewed as the screen of platform importance for today s marketers. From basic e-commerce to transportation, customer rewards programs to fundamental search activity, a growing number of people are relying on smartphones for everyday activities. This represents certain opportunity for today s marketers. To provide better context on this discussion, Scoppechio is providing 5 key considerations with insights that will elevate your thinking about mobile marketing. For further information and other technology solutions for your business, contact: Steve C. Martin Director, Digital Strategic Planning SteveC.Martin@scoppechio.com 7/7/15 2015 Scoppechio. All Rights Reserved. 2
LOVE = SMARTPHONES The average person checks their phone over 150 times per day and 67% of those times, they check it with no alert. 70 70% of people said they would rather give up DRINKING ALCOHOL for a week than their smartphone. 63% of people said they would rather give up EATING CHOCOLATE for a week than their smartphone. 63 33 33% of people said they would rather give up HAVING SEX for a week than their smartphone. Considering the widespread appeal of these activities, it is evident that people are growing more attached to their mobile devices than ever before. 7/7/15 2015 Scoppechio. All Rights Reserved. 3
FIVE THINGS MARKETERS SHOULD KNOW ABOUT MOBILE 1 2 3 4 5 Mobilegeddon has arrived. It s important you understand it and the impact it has on fundamental search activity. mcommerce is growing faster than ecommerce. Mobile ads outperform online ads. Mobile video accounts for 53% of mobile traffic. Second screen is utilized by 84% of smartphone/tablet users. Utilizing the combination of these key elements determines the mobile reach of your brand. 7/7/15 2015 Scoppechio. All Rights Reserved. 4
1 MOBILEGEDDON HAS ARRIVED. THIS CHANGES EVERYTHING. Mobilegeddon, introduced on April 21, 2015, is Google s decision to rank mobile-friendly sites higher in mobile search results. This algorithm update is a result of the increase of mobile searches, which have recently surpassed those on desktop. The outcome of Mobilegeddon is eye opening. Currently, only 66% of sites are mobile-friendly, whereas upward of 50% of consumers will not return to a site if it loads improperly on mobile. Since the kickoff of Mobilegeddon, Google has tagged the top result as mobile-friendly 83% of the time. Of the top three results, sites were tagged mobile-friendly 81% of the time. Finally, of the top 10 results, 77% of them were tagged as mobile-friendly. The statistics prove that those who are not integrating a mobile-friendly approach into the building of their sites are falling in mobile rankings. 7/7/15 2015 Scoppechio. All Rights Reserved. 5
2 BUY ON THE FLY- mcommerce IS GROWING FASTER THAN ecommerce mcommerce ACCOUNTS FOR 21% OF ALL ONLINE COMMERCE. mcommerce is growing at THREE times the rate of ecommerce. It is currently utilized as a product research tool first. Mobile research, however, led to $593 billion in in-store sales in 2013, which accounts for 19% of total sales. That is a 372% increase from the previous year. While shopping, people employ mobile search options to compare prices to competitors as well as seek reviews to find the best value. In addition, 41% of people use an app to assist them during a shopping trip. Expect these numbers to climb as mobile continues to rise in popularity. 7/7/15 2015 Scoppechio. All Rights Reserved. 6
3 MOBILE ADS OUTPERFORM ONLINE ADS. WHY? LESS IS MORE! Mobile ads perform 4-5X better than online ads, in brand favorability and purchase intent. Typically, there is one mobile ad per screen. This means competitors begin to diminish, as this single ad is the only ad to accompany the user on the page they are viewing. Mobile ads index well with adults 18-44, high-income, Hispanic and Asian audiences. Do not confuse mobile ads with banner ads. Banner ads are a thing of the past. Mobile ads can be dynamic and enhance the experience of the user, and are not strictly for promotional use. ONE MOBILE AD PER SCREEN MEANS LESS COMPETITION 7/7/15 2015 Scoppechio. All Rights Reserved. 7
4 MOBILE VIDEO ACCOUNTS FOR 53% OF MOBILE TRAFFIC. BUT REMEMBER, CONTENT IS KEY. 75% OF FACEBOOK VIDEO VIEWS OCCUR ON MOBILE By 2018, mobile video will represent 69% of all mobile traffic. There are numerous platforms on mobile that support video, including YouTube, Facebook, Instagram, Vine, Snapchat, and many more. Today, 75% of Facebook video views occur on mobile. In terms of marketability on these platforms, 62% of smartphone users are okay with 15- to 30-second ads in exchange for content. This is already prominently used in YouTube mobile. Furthermore, Snapchat states that vertical ads are viewed 9 times more than horizontal, noting that the way that video is being consumed is changing. Behavior and ease of holding a phone is an important consideration when digesting the increase of mobile video. 7/7/15 2015 Scoppechio. All Rights Reserved. 8
5 IN THE BEGINNING, IT WAS MULTI-TASKING. TODAY, IT IS PART OF A HOLISTIC USER EXPERIENCE. SECOND SCREEN IS UTILIZED BY 84% OF SMARTPHONE/TABLET USERS. In 2014, time spent on mobile devices surpassed that of time spent watching TV. People are using mobile devices throughout the time they spend watching TV and not just during commercial breaks. This is due to the use of mobile devices to enhance the shows experience, particularly in social media. Popular TV shows create hashtags to be used throughout their airing, allowing consumers to be a part of the social chatter related to the episode or product. The same trend is seen during sports broadcasts. Roughly one million Americans will go on Twitter today and talk about a show or sporting event while they are watching it. Expect an increase in second screen evolving to first screen viewing as more sporting events are incorporating live streaming directly to mobile devices. This year, NCAA March Madness Live streamed to 80.7 million unique users and 17.8 million hours of live video consumption through the ESPN app during the course of the playoffs. 1,000,000 AMERICANS WILL GO ON TWITTER TODAY WHILE WATCHING TV 7/7/15 2015 Scoppechio. All Rights Reserved. 9
CONCLUSION Mobile marketing is swiftly becoming the new standard, and brands that stay ahead of the curve are seeing positive results. From product research and online purchasing, down to our methods and preferences for media consumption, mobile is redefining the marketing experience and satisfying consumer demands better than any medium that preceded it. Mobile-optimized sites outrank their desktop counterparts in search. Consumers who use smartphones to research and review products will soon be skipping in-store purchases and opting instead to buy products using their mobile devices. Dynamic mobile ads, native and imedia are indexing with multiple audiences well beyond traditional banner and right-hand rail. Platforms that support mobile video are seeing a noteworthy increase in traffic, and vertical ads are growing more popular as video consumption behavior evolves. Second screen is transitioning into a frictionless experience, with seamless integration of first screen viewing activities and second screen interaction. For further information and other mobile marketing and optimization considerations, contact: Steve C. Martin Director, Digital Strategic Planning SteveC.Martin@scoppechio.com 7/7/15 2015 Scoppechio. All Rights Reserved. 10
SOURCES Pew Research http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/ Telenav http://www.socialmediatoday.com/content/10-incredible-mobile-marketing-stats-2015-infographic Kleiner Perkins Caufield & Byers's annual Internet Trends report http://www.kpcb.com/blog/2013-internet-trends Business 2 Community http://www.business2community.com/seo/mobilegeddon-follow-seo-implications-googles-lastest-update-01218454#1fg034mcciwzqxaz.99 emarketer http://www.emarketer.com/article/mobile-devices-boosting-not-hurting-in-store-shopping/1010838 Digital Information World http://www.digitalinformationworld.com/2015/04/time-to-rethink-your-mobile-strategy-infographic.html Forbes http://www.forbes.com/sites/connieguglielmo/2014/02/05/mobile-traffic-will-continue-to-rise-rise-rise-as-smart-devices-take-over-the-world/ ReelSEO http://www.reelseo.com/americans-33-minutes-day-video-smartphones/ AdWeek http://www.adweek.com/news/technology/snapchat-persuades-brands-go-vertical-their-video-164305 Business Insider http://www.businessinsider.com/second-screen-viewing-nielsen-2014-2#ixzz3zhqymepp Flurry http://flurrymobile.tumblr.com/post/115194107130/mobile-to-television-we-interrupt-this-broadcast#.vgusp8mtqih 7/7/15 2015 Scoppechio. All Rights Reserved. 11
We are an advertising agency. But we do a lot more than just advertising. Founded in 1987, and with 170 employees located in the heart of the Louisville business district, Scoppechio creates relationships between its clients and their customers across all platforms of communications. 437 W. Jefferson Street Louisville, Kentucky 40202 (502) 584-8787 http://scoppechio.com 2015 Scoppechio. All Rights Reserved.