The future of mobile in 2016, DBD media agency and Google, LISTEX Summer Session 2016

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The future of mobile in 2016

Kieran Darwin – Head of Digital Strategy @ DBD MediaCharles Daniel – Industry Manager @ Google

Micro-Moments

Why Mobile?

Google Confidential and Proprietary

Buyers used to follow a linear path to purchase.

Yellow pages

Awareness Consideration

Intent Decision

Print ad

Billboard

Storefront

Call seller

Visit store

Ask for a quoteCompare goods in store

Mail order

Store purchase

Micro-Moments Workshop

Google Confidential and Proprietary

Now they use the internet as a hub.

New mobile phone

Online Video62% of (Country) population watches YouTube

Social Media4x more likely to buy a product recommended by a friend

Online Review77% look at online reviews before making a purchase

Mobile41% research and purchase

on a smartphone

Display Ad51% of consumers learn

about new products from online advertising

View in Store19% research online, visit a

store to examine the product and then purchase

online

Purchase in store/

Purchase online

Search 93% of buyers research online before purchasing

Micro-Moments Workshop

Google Confidential and Proprietary

Google Confidential and Proprietary

Google Confidential and Proprietary

Google Confidential and Proprietary

Google Confidential and Proprietary

Google Confidential and Proprietary

Micro-Moments Workshop

2015 became the year that mobile traffic overtook desktop…

Q4 2015 ended with approximately 53% of all online traffic coming through mobile.

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Micro-Moments Workshop

The UK leads the world when it comes to online shopping...

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Google Confidential and Proprietary

Micro-Moments Workshop

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Micro-Moments Workshop

So where to begin?

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Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments

Why Online?

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We’re tuning in more than ever

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The world has changed

61%now prefer news

on PC, tablet, laptop or mobile to

newspaper

3 hours41 minutesmore time spent

online than watching TV per

day

110 hours per month

spent online by theaverage Brit of all online

sales are made on a mobile

device

2.4% drop

in high streetfootfall in

2013

27%

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Consumer Behaviour Changed

Why Now?

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Take a look at John’s sitting room.

90%Move between

devices to accomplish a goal

63%Watch TV and surf

the web at the same time

TV

PHONE

LAPTOP

TABLET

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The buying process has changed too.

Buyers areunpredictable.

They switch regularly between devices.

They read reviews, compare styles, and

research pricing.

They search.

Holiday in Ibiza

93 % of buyers research online before purchasing.

40k online searches occur per second in the

UK.

They search again.

Cheap 2 nights + Ibiza

On average, 10.4 information sources

influence an online buying decision.

Micro-Moments Workshop

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Immediate. Relevant. Frictionless.

That’s the experience consumers expect when they turn to a device to find, do, or buy something.

To win, marketers have to be there to meet them in these micro-moments.

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“As many as 88% of consumers are researching items online and then buying in a physical store.”Accenture: “Seamless Retail” - 2014

Micro-Moments Workshop

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Micro-Moments Workshop

Google Confidential and Proprietary

Today, you have to earn the customer’s consideration and action, moment after moment.

Why?

Because people are more loyal to their need in the moment than to any particular brand. Case in point:

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Micro-Moments Workshop

Our Life with Mobile

We asked consumers how they would describe the role of their mobile device in their lives?

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Micro-Moments Workshop

Our Life with Mobile

We asked consumers how they would describe the role of their mobile device in their lives?

“I pretty much call my phone my lifeline.I use it all day, every day. If I ever leave home without it, I feel naked.”— Mary Kathryn L.,

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Micro-Moments Workshop

Our Life with Mobile

When we asked people this question recently, the people used phrases like

“Attached to my hip,”“butler,”

and “lifeline.”

Let’s face it: those are not things we say about our toasters.

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Micro-Moments Workshop

Smartphone users

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Micro-Moments Workshop

Smartphone users

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Micro-Moments Workshop

Smartphone users Millennials? They’re really attached.

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Micro-Moments Workshop

Smartphone users Millennials? They’re really attached.

That little device by our sides is transforming our lives, whether we actively notice it or not. It’s enabling new ways of doing and learning things. It’s helping us discover new ideas and new businesses. It’s helping us manage our to-dos, tackle our problems, and inspire our plans.

Mobile search behavior is a good reflection of our growing reliance: in many countries, including the U.S., more searches take place on mobile devices than on computers. 4 Mobile is quickly becoming our go-to.

When we want or need something, we tune in via convenient, self-initiated bursts of digital activity.

Buy festival tote for Coachella next weekend11:15pm

On the bus, read about Coachella lineup8:42am

Use flashlight app to find dropped earring11:09pm

At bus stop, listen to new music playlist 8:30am

At work, book Coachella tickets11:36am

On bus, check email for sales this weekend5:29pm

Browse festival styles on YouTube7:15pm

Wake up and check today’s weather6:50am

At lunch, play Scrabble while waiting in line1:33pm

Use maps to get directions to Creole food truck 1:13pm150X

per day

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Micro-Moments Workshop

Take that often quoted stat that we check our phones around 150 times a day...

Pair it with another that says we spend 177 minutes on our phones per day, You get a pretty fascinating reality:

Mobile sessions that average a mere 1 minute and 10 seconds long, dozens and dozens of times per day. It’s like we’re speed dating with our phones.

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Micro-Moments Workshop

Behind these mobile bursts are countless interactions, like texting a spouse with a carpool update, dropping a quick work email while waiting in the ATM line, or posting a vacation photo to make friends jealous. These types of moments are a common part of life, but they’re not moments when we’re necessarily looking to engage with brands. And if a brand tries to butt in with a distracting or irrelevant message? Swipe.

But in other moments, we’re very open to the influence of brands. These are the moments when we want help informing our choices or making decisions. For marketers, these moments are an open invitation to engage. And they’re the moments you have to be ready for.

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Micro-Moments Workshop

At Google, we call these micro-moments.

They’re the moments when we turn to a device—often a smartphone—to take action on whatever we need or want right now. These I-want-to-know, I-want-to-go, I-want-to-buy, and I-want-to-do moments are loaded with intent, context, and immediacy.

Consider the following,

Google Confidential and Proprietary

Micro-Moments Workshop

At Google, we call these micro-moments.

They’re the moments when we turn to a device—often a smartphone—to take action on whatever we need or want right now. These I-want-to-know, I-want-to-go, I-want-to-buy, and I-want-to-do moments are loaded with intent, context, and immediacy.

Consider the following,

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Micro-Moments Workshop

That consumer journey looks a lot different than it did when your predecessor sat at your desk. And it’s not just a story of more mobile usage.

Since we can take action on any need or curiosity at any time, the consumer decision journey has been fractured into hundreds of tiny decision-making moments at every stage of the “funnel”—from inspiring vacation plans to buying a new set of skis.

In the past year alone, websites in the United States have seen:

20%increase in mobile's

share of online sessions

18%decrease in time spent per visit

29%increase in

mobile conversion rates

Google Analytics aggregated data, 2014-2015 for April 1-14, US

Google Confidential and Proprietary

Micro-Moments Workshop

An increase in mobile sessions and a decrease in time spent might lead you to conclude that consumers aren’t finding what they want on mobile.

But actually, mobile conversion rates have shot up by 29% in the last year alone.

Think about it. We don’t just rely on long sit-down sessions at our keyboards to make purchases anymore. We reach for our devices and make informed decisions faster than ever before. And though mobile is driving this change, this phenomenon has implications far beyond mobile. It affects the entire consumer journey across screens, devices, and channels.

Consider what’s going on with retail stores today. Foot traffic has declined, yet consumers are spending more when they do visit—because they’ve done their research and made decisions before ever walking in. A similar thing is happening when consumers visit websites using a desktop or laptop. They typically spend less time per visit but convert more often. In many ways, the micro moments have become the footsteps that lead people to your store or desktop site.

So how do you win?

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Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Let’s take a look at an example;

Red Roof Inn mastered all three strategies in one simple campaign.

When the company realized that flight cancellations were leaving 90,000 passengers stranded every day, its marketing team developed a way to track flight delays in real time and trigger targeted search ads for the Red Roof Inns near airports. Ads that said, in essence,

“Stranded at the airport? Come stay with us!”

They committed to those “I-need a-hotel-ASAP” moments and delivered with relevance on what people needed. The result: a remarkable

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Micro-Moments Workshop Mobile is having a striking effect on shopping behavior in all settings, and it is no longer the sole province of out-and-about smartphone users or those buying inexpensive products or services in short windows of time. What consumers want is changing and retailers are having to keep up.

“The rise of on-demand services like Uber, Seamless and Tinder are raising the stakes for mobile and location. “Mobile, combined with the ability to leverage location for a more relevant and tailored experience, has changed consumer expectations when it comes to purchases.

The personal and on-the-go nature of mobile, the convergence of online and offline, and the increased expectations for consumers to have what they want delivered to them immediately, has fundamentally disrupted the path to purchase,”- Sarah Ohle, senior director of global research at xAd

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Micro-Moments Workshop

By being there, your brand has the chance to address consumer needs in the moment, help move someone along their decision journey and deepen their loyalty. That’s how brands earn their stripes with mobile.

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

In 2018 Mobile search will generate 73 Billion calls

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Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

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Micro-Moments Workshop

Let’s take a look at how the change to mobile has impacted these businesses

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Micro-Moments Workshop

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Micro-Moments Workshop

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Micro-Moments Workshop

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Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

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Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Google Confidential and Proprietary

Micro-Moments Workshop

Industry specific trends

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Micro-Moments Workshop

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Micro-Moments Workshop

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Micro-Moments Workshop

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Micro-Moments Workshop

Moving into the future

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Mobile Ad Spend to Top $100 Billion Worldwide in 2016, 51% of Digital Market

The global mobile advertising market will hit two significant milestones in 2016, according to new figures from eMarketer, surpassing $100 billion in spending and accounting for more than 50% of all digital ad expenditure for the first time

The $101.37 billion to be spent on ads served to mobile phones and tablets worldwide next year represents a nearly 430% increase from 2013. Between 2016 and 2019, the last year in our forecast period, mobile ad spending will nearly double, hitting $195.55 billion to account for 70.1% of digital ad spend as well as over one-quarter of total media ad spending globally.

Not surprisingly, growth in mobile ad spending is being driven by consumer adoption of mobile devices. Next year, eMarketer estimates, there will be more than 2 billion smartphone users worldwide.

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Micro-Moments Workshop

In the short term, the leading global markets, particularly the US and China, will drive mobile ad spending growth. In 2016, US advertisers will spend $40.24 billion to reach consumers on tablets and mobile phones, more than doubling the total from 2014, while those in China will invest $22.14 billion—nearly triple the amount they spent in 2014. Both of these countries will see mobile become a majority of digital ad spending next year.

Rounding out the top five countries, the UK, Japan and Germany also will see significant increases in mobile ad spending next year, but in all three markets, a majority of digital ad spending will be on mobile devices in 2017 for the first time.

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Thank you

For more infomation please contact:Kieran.darwin@dbdmedia.co.uk or visit

www.dbdmedia.co.uk