Internet Worldmobile marketing: internet or “App”?
Jason Cross
27th April 2010
2
Agenda
• Market overview
• Which route to choose?
• Technology – what will the near-future look like?
Market Overview (UK)
4
Context
�Mobile marketing is still in its early stages but growing rapidly- Currently there are 76m mobile devices in use in the UK by 13+ population of 48m
- There are more mobiles worldwide (4bn) than any other consumer electronic
good except radios (1.5bn TVs, 1.4bn internet PCs etc)
- One in ten of all UK internet pages is viewed on a mobile device
- As adults we each send an average of six text messages (SMS) per day; a figure
which shows no sign of slowing
- The vast majority of brands engage in some form of mobile marketing, e.g. CRM texts,
apps or a presence on the mobile internet
- Few brands are fully leveraging the opportunity on mobile across marketing/loyalty,
customer service and m-commerce
5
“The mobile phone will become the primary means of accessing the Internet worldwide by the year 2020.”
Pew Internet & American
Life Project
6
0
10
20
30
40
50
60
70
80
90
100
2003 2004 2005 2006 2007 2008 2009
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
SMS (Left hand scale) MMS (Right Hand Scale)
Billions of Messages sent
Source: OFCOM August 2009.
Messaging volumes continue to grow (UK)Data revenues are now larger than those from voice
Growth Rate
28%
165%
7
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
11,000,000
12,000,000
13,000,000
14,000,000
Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09
Mobile internet usage now significant (40% UUs)Strong growth in mobile internet usage driven by fall in data costs
24% year on year
growth between
2008 and 2009
Subscribers accessing mobile internet
Source: Comscore 3 month rolling average
8
Source: ComScore. Note, Operating Systems: Microsoft or Palm or RIM or Symbian or Apple or Google
Mobile internet access amongst all phone subscribers in the UK
(Adults 13+ for the 3 months ended Jan 10)
50% of unique internet users have ordinary phonesHowever smartphone owners are heavier users of mobile internet
RIM
10%
MS
5%
Palm
0%
2%
Non Smart
Phone
50%
Symbian
19%
Apple
14%
Smart OS used by Nokia, SonyEricsson etc
9
Smart-phones are the fastest growing handset type
Breakdown of Smartphone operating systems in the UK
(Adults 13+ for the 3 months ended Jan ‘10)
%age of Smart Phones in the UK
(Adults 13+ for the 3 months ended Jan ‘10)
Microsoft
11%
3%
Palm
0%
Symbian
46%
Apple
21%
RIM
19%Smart
Phone
23%
Non Smart
Phone
77%
Source: ComScore Jan 10
Smart phones represent nearly a quarter of the market – but UK still dominated by older handsets (which CAN still access the internet)
(11m)
(5.1m)
(2.1m)
(2.3m)
Smart-phones, of which there are 11m in use in UK, are defined by particular operating systems and have specific platforms for developers
10
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Sept 07 Sept 08 Sept 09 Jan 10
Number of Smart Phones subscribers in the UK (000s)
(Average number of subs for the 3 month ended)
Source: ComScore. Note, Operating Systems: Microsoft or Palm or RIM or Symbian or Apple or Google
Smart phone growth in the UKthe strong growth of smart-phones continues – taking approx. 3 years for a new mobile technology to become market dominant
+41%
YOY
+39%
4M Jan 10
11
Text and picture msgs reach twice as many UUs
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Apps Mobile
Internet
LBS MMS SMS
However messaging is not transactional like mobile internet and apps
• Text (SMS) and picture messaging (MMS) are used by 92% and 58% respectively
• Apps and the mobile internet used by 30-35% but growing rapidly
• Many apps are games and come
pre-installed
• Downloading new apps or
allowing apps to update content or
transact requires the mobile
internet
12
Number of subscribers in the UK (000s)
(Average number of subs for the 3 month ended Jan 10)
Source: ComScore
More msgers in 55+ group than any other25-34 age band are the most prolific users of mobile media features
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Apps Mobile
Internet
LBS MMS SMS
13-17 18-24 25-34 35-44 45-54 55+
2.3% of all mobile users visited a mobile internet retail site in last 3 months of 2009
Index vs population as a whole
(Average number of subs for the 3 month ended Jan 10)
0 100 200
Apps
Mobile
Internet
LBS
MMS
SMS
13-17 18-24 25-34 35-44 45-54 55+
`
13
Percentage of subscribers in each age and sex band who access mobile internet
Data: Three month average ending Jan 10 Country: UK - N= 15,824 mobile phone users
Internet accessed on mobiles by all age groups internet sites are increasingly looked at “on the go” across devices
38%
48%44%
27%
16%
6%
31%
61% 61%
47%
29%
13%
0%
10%
20%
30%
40%
50%
60%
70%
13-17 18-24 25-34 35-44 45-54 55+
Female Male
14
Source: Ofcom, 2008
Percentage of UK Population take-up
90% 90%85%
76%82%
72%
57%
35%
0%
20%
40%
60%
80%
100%
AB C1 C2 DE
Own a mobile phone Have fixed internet at home
Mobile has greater geo-demographic reach than fixed line internet
Mobile reaches all social segments
15
14%
27% 27%
18%
11%
5%
16%
39%
45%
32%
22%
10%
0%
10%
20%
30%
40%
50%
13-17 18-24 25-34 35-44 45-54 55+
Female Male
Percentage Accessed email (work or personal) from mobile
Data: Three month average ending Jan 10 Country: UK - N= 15,824 mobile phone users
Email accessed on mobiles by all age groups Emails is read “on the go”: ensure your emails and links are mobile friendly
Which route to choose?
17
What IS an “app”?
• An “app” (short for application) is a specially designed program for mobile phones
• Popularised by Apple for their iPhone, these programs have, in fact been around for
many years, and are available for most recent phones (e.g. the games that come pre-
loaded on your Nokia or Sony-Ericsson, are “apps”).
• They range in size and complexity from a simple flashlight to a complex navigational
GPS system or a medical reference guide
• Some apps, such as those drawing on real-time prices for a retailer, actually require
internet access to be fully functional.
• The “app” button on your handset window is actually akin to a visual internet bookmark
18
Richer experiences not currently served through mobile internet.
Users download & install an app, onto their desktop.
Most affluent target demographic and the greatest possible stream of revenue, but a tiny minority of
people.
Most apps need to connect to the web to make them truly useful.
Mobile web is growing rich interactive functionality and may soon render apps obsolete for everything apart for games.
With apps, developers have to consider handset compatibility across all platforms, possibly
facing budget constraints.
conspros
The great debate: pros and cons of appsBut will HTML5 do away with need for apps?
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“Since many apps are never launched after being downloaded, judging success purely by the number of downloads can overstate the success of your mobile objectives.
“In order to achieve the highest return from this channel, you must also have an understanding of its adoption and effectiveness over time.”
Jascha Kaykas-Wolff, vice president of marketing at Webtrends, New Orleans
20
0%
20%
40%
60%
80%
100%
Source: Appetite, Yahoo! March 2010
Internet access is going against the grainLess about “snacking”, more about “real web” access
Q9 For each of the following, please indicate the length of your average mobile internet session?
23%
39%
77%
< 5 Mins 5 Mins +
Length of internet session?
21
0%
20%
40%
60%
Source: Appetite, Yahoo! March 2010Base: all those who access internet on mobile (n=1,240)
Mobile experience44% of mobile internet users blame brands for a bad mobile experience
Q16. When a website doesn’t work on your mobile phone, which of the following do you tend to blame?
Reason for bad mobile experience?
44%
34%29%
Brand
(site)The Phone
Network
Provider
The
User
5%
22INSPIRATION GUIDE: ACQUISITION [email protected] Sector: Recycle for London www.incentivated.com/publicsector
Business Need:
To extend “Starve your bin”, RfL’s fully integrated campaign, to a youngeraudience in a fun and engaging way which educates users about what can and cannot be recycled and encourages them to tell others.
Functions:
• Game• Forward to friend• Over 20,000
downloads (>12,000 of Java game)
The Solution:
A mobile game was developedfor Java enabled phones as wellas the Apple iPhone.
It was promoted via the iTunesApp Store, in mobile Advertising and through PR. Users could text BIN to 62967
to launch a mobile internet site from where they could download the game.
The aim is to collect recyclable materials in the recycling bin and leave non-recyclable items for the bin bag (the ‘Evil Bin’).
A score leaderboard encourages competition and ‘send to a friend’ functionality makes it viral.
Mobile game makes recycling fun
23CASE STUDY: Wallace & Gromit’s Cracking ContraptionSector: Retail wag.mands.mobi/demo (on your mobile or in Firefox)
The Solution:
Offering a family-oriented fun, quirky,inventive and traditionally British twist to the “Christmas wouldn’t be Christmas without…” positioning,we developed a mobile wapsite based upon a typically “Heath Robinson”-style Wallace & Gromit invention to help customers choose what to ask for from friends and family as a Christmas gift. A viral mechanic encouraged the spread of the site amongst family & friends
Voila – Wallace & Gromit’s Cracking Christmas Contraption
Results?
� 31% of profiles were forwarded to friends/ family
� 21% CTR from outbound SMS
� 28% of new visitors supplied an email address to M&S
� The long tail – over 5,000 people attempted to visit the site in the week AFTER Christmas!
Business Need:
M&S wanted an innovative mobile element, to add to their broader Christmas campaign, that would and could engage all their customers.
Marks & Spencer mobile internet site: “Wallace & Gromit”
24CASE STUDY: Jaguar XJ model launch (USA)Sector: Automotive www.jaguar.mobi/xj (on ANY mobile phone)
The Solution:Created a ‘luxury’ mobileexperience using the latest mobile technology to showcase XJ and generateleads for test drives and sales
The mobile internet site is a beautiful, innovative and creative custom made site, designed for high end phones (based uponanalysis of phone types from previous Jaguar mobile advertising).It is among the first to start delivering specific Android UE to complement iPhone functions.
The site allows prospective Jaguar owners to register via their phones for exclusive (mobile-first) updates and invitations to view the XJ. Registration also unlocks exclusive content for your phone.
The wapsite is fully integrated into the campaign to maximise fully tracked sales opportunities, with leads delivered into the central test drive database.
The site is designed to allow future re-purposing as a destination for mobile advertising (post-launch activity) and to cope with a long tail of visits.
Results?
� www.jaguar.mobi/xj� Site and campaign still
live (LA and NY city takeovers in NY)
Business Need:
Building on the success of the 2009 mobile advertising campaign in creating quality leads for test drives that converted to efficient sales, Jaguar requested a “luxury”mobile solution for the launch of its new XJ model.
Jaguar XJ Launch Mobile Campaign
25
Locate any Tescostore in the UK
Create a Shopping List to use in store
App locates products from your shopping list according to aisle
iTunes & Tesco.com 2010
Tesco store finder iPhone appReleased 5 January 2010
26
Tesco Clubcard iPhone appReleased 8 February 2010
Future plans
• Launching apps for Blackberry & Nokia (Symbian and Java)
• Include scannable vouchers in Tesco Clubcard app
• Update Tesco Clubcard app to include the Tesco Credit Card as a scannable
payment method
This does not work in some stores, no Express stores or self service checkouts
iTunes & Tesco.com 2010
27
Homepage of “On the Go” app
Choose how you wish to find products
Add items to shopping basket
ocadoiPhone App‘Ocado on the Go’ m-commerce app
28THIRD PARTY INSPIRATION GUIDESector: Consumer Goods
Client: Sears
Project: Full Mobile Platform
& apps
Business Need:Forerunner in mobile and named 3rd mobile retailer of the year in USA (Mobile Commerce Daily ’10)� Mobile internet site� SMS services� iPhone Applications� mCommerce on all platforms
Functions:
• Full Mobile platform for mCommerce, SMS, CRM, and iPhone apps
Sears mobile internet site & apps: “Shop Your Way”
The Solution:Mobile internet site offers bespoke local
information and offers. All information are optimised for mobile phones. Offers include gift cards and mobile vouchers.
Customers can also shop on the wapsite to pick up in-store. Sears offers a ‘pick-up in 5 minutes’guarantee. Other services include a store locator.
Personal Shopper iPhone app: customers take a photo of an item on their phone, send to Sears Personal Shoppers and receive back other suggested items via email or phone.
29
Pay using 2D barcode
scanning
Top up your card Use your Starbucks card via
iPhone
Starbucks payment card appAccepted at 1,020 Starbucks stores
30
0%
20%
40%
60%
Source: Appetite, Yahoo! March 2010Base: all who access the internet on mobile (n=1,240)
Base your mobile strategy on consumer need…not on the latest fashionable PR fad
Q22. So thinking of websites that you access on your mobile phone – if there were an app available instead, would
you prefer to download the app or would you still prefer to use the website?
How do you prefer to access a website on your phone?
55%
33%
12%
Don’t mind Via browser Via app
Technology – what will the near future look like?
32
Pay-Buy-Mobile (mobile wallet – cash & credit)
• 52 mobile operators, serving over 1.7 billion subscribers, are supporting the Pay-Buy-
Mobile (“PBM”) project worldwide. There are live trials and launches in operation right now.
• PBM will enable the mobile phone to be used, instead of cash or plastic credit card, at point
of sale to enable purchase of goods and services
• A Near Field Communication (“NFC”) chip installed on the phone allows the credit card
(stored securely within the mobile’s SIM) to be ‘swiped’. The customer confirms their
transaction by inputting PIN at POS.
• More than one credit or debit card can be stored in the same SIM
• Data transfer uses the same secure process as for conventional credit or debit card
transactions.
33
Use of mobile barcodes to become ubiquitous?
• The technology is already being used across the world
- “Today, almost every Japanese mobile is pre-installed with a barcode reader as standard which means that everyone can scan the codes which is one important reason why it is so popular in Japan”*
• Three has started embedding a reader in their phones in the UK, Orange plans to follow in early 2010
• Samsung started to embed a reader in all phones in Italy and Belgium
• M&S was the first major retailer in the UK to place 2D Barcodes on-pack
*Source: http://www.telegraph.co.uk – Mobile phone bar code scanners coming to Britain by Danielle Demetriou in Tokyo
34
Augmented Reality examplesAR combines features such as GPS location and camera with app/web
• Launched 8 March 2010 in
Australia
• GPS store locator
How it works:
• iPhone camera, GPS and compass
are used to display, in situ, Pizza
Hut store locations on top of the
real-world view.
• iPhone app
• Launched March 2010
• UK edition
• Promoting performer
Florence Welch
How it works:
• Using your iPhone you
can take pictures or
videos and overlay
Florence’s dancing or
posing image in
different high-fashion
outfits.
GRAZIAPizza Hut
35
• Application available in-store, on
posters, online and via bluetooth
stations
• Launched 2 November 2009 at
my.ikea.com
• Portable planner for interiors
How it works:
• Uses the phone camera to impose
home furniture onto your real-time
home for live product trial
• Launched 17 October 2009
• UK service
• GPS functionality
How it works:
• Customers input their current
locations to the app and can search
homes by type in the nearby area.
RightmoveIKEA
Augmented Reality examplesAR combines features such as GPS location and camera with app/web