Marketing for mobile

Virtual experiences

MBA 563WEEK 6

Overview• Technologies and devices that we associate

with mobile• Mobile usage stats• Mobile Payments• Location based marketing• Mobile advertising• Apps versus HTML5• Virtual experiences – AR and VR

Definition of mobile marketing

• Mobile Marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through and with any mobile device or network.– Mobile Marketing Association

• http://www.mmaglobal.com/news/mma-updates-definition-mobile-marketing

What does this definition mean?

• The “set of practices” includes “activities, institutions, processes, industry players, standards, advertising and media, direct response, promotions, relationship management, CRM, customer services, loyalty, social marketing, and all the many faces and facets of marketing.”

• To “engage” means to “start relationships, acquire, generate activity, stimulate social interaction with organization and community members, [and] be present at time of consumers expressed need.” Furthermore, engagement can be initiated by the consumer (“Pull” in form of a click or response) or by the marketer (“Push”).

• http://www.mmaglobal.com/news/mma-updates-definition-mobile-marketing

Technologies related to using mobile devices

• Instant messaging• SMS (Text messages)• eMail• Web (HTML 5 and responsive design versus Flash)• Location-awareness / location based services (LBS)• Apps• Near-field communication (NFC)• VOIP• “over-the-top” messaging via data (eg. Viber, WhatsApp)• Augmented Reality (AR) and Virtual Reality (VR)• iBeacon and Bluetooth Low Energy

Consumer devices – trend towards convergence

• Mobile phones and Smart phones• Tablets• PDAs• mp3 players• Cameras• Remote controllers• GPS devices for navigation• eReaders• Wearables such as Google Glass, SmartWatches• Fitness trackers (Fitbit etc) – “quantifiable self”

Attributes of mobile technology

• Personal, intimate devices (often always with us)• Data, information, connectivity available anytime and

anywhere• Information at our fingertips (literally, via

touchscreens)• Move towards voice and gesture inputs?• Amplifies the expectation and demand for instant

information in appropriate formats• Gives location-sensitive data much more value

Mobile has a clear impact re time online

http://www.comscore.com/Insights/Presentations-and-Whitepapers/2014/2014-US-Digital-Future-in-Focus

Device ownership stats from Pew: January 2014

• 90% of American adults have a cell phone• 58% of American adults have a smartphone• 32% of American adults own an e-reader• 42% of American adults own a tablet

computer

http://www.pewinternet.org/data-trend/mobile/device-ownership/

Device ownership over time

http://www.pewinternet.org/data-trend/mobile/device-ownership/

Smartphone and tablet usage• Pew Internet research on mobile usage

– 67% of cell owners find themselves checking their phone for messages, alerts, or calls — even when they don’t notice their phone ringing or vibrating.

– 44% of cell owners have slept with their phone next to their bed because they wanted to make sure they didn’t miss any calls, text messages, or other updates during the night.

– 29% of cell owners describe their cell phone as “something they can’t imagine living without.”

• Demographic data about mobile usage (from Pew)• Multi-platform consumption is the reality: 1 in 3 online

minutes is spent on a mobile device2013 Mobile Future in Focus (Comscore)

Smartphone and tablet demographics

What do people use their phones for?

 http://pewinternet.org/Reports/2013/Cell-Activities.aspx

Social media on mobile

http://www.comscore.com/Insights/Presentations-and-Whitepapers/2014/2014-US-Digital-Future-in-Focus

US smartphone usage Q4 2014

http://www.nielsen.com/us/en/insights/news/2015/smartphone-owners-are-as-diverse-as-their-devices.html

Smartphone o/s (Worldwide) to Q4 2014

http://www.idc.com/prodserv/smartphone-os-market-share.jsp

Trends in mobile marketing

• Money transfers and payments (mobile commerce, mobile banking, near-field communications (NFC)

• Location-based services (LBS) and iBeacon (Bluetooth Low Energy)

• Mobile advertising• Apps or browser-based service?• Augmented reality and virtual reality

MOBILE PAYMENTS

Phones as virtual wallets using near-field communication (NFC)

• The pace of technological adoption: the U.S. payments example. It took:– 28 years to reach 100 million mag-stripe credit card

accounts.– 12 years to reach 100 million debit accounts.– 7 years to reach 100 million PayPal accounts.

• It is projected that it will take only:– 5 years to reach 100 million contactless credit/debit cards.– 2–3 years to deploy 100 million NFC-enabled (near field

communication) mobile handsets 3.• http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02518.html

NFC - definition• Near field communication (NFC): a short-range

wireless communication technology using radio frequency waves. Enables data to be exchanged between devices separated by a few centimetres.

• Some uses– Transit tickets (phone = ticket)– Boarding passes for air travel– Phone to phone file sharing– Tap / wave to payhttp://lexicon.ft.com/Term?term=near-field-communication

• Apple devices began to support NFC in 2014 (prior to that only Android & BB)

Mobile payment examples: bridging the physical and digital worlds

• Making payments – Google Wallet (now several years old, but US only) – tap

to pay using NFC, plus online payments and now ApplePay on iPhone and Watch

– CurrentC – alliance of retailers including Walmart who are trying to cut out the CC companies

• Accepting payments via mobile credit card reader– Square Register – an opportunity for accepting credit cards

without a merchant account (and pretty much anywhere)– PayAnywhere is a competing product (owned by a CC

processing company)

LOCATION-BASED MARKETING

GPS / WiFi data in marketing• The biggest issue is in balancing the usefulness

of location-based data to the user (and to marketers) with the privacy issues

• A map of a person’s life is hugely valuable to companies but can also deliver a very personalized product to users

How it’s done

• Foursquare “uses GPS, Wi-Fi, and Bluetooth to determine where you are, then maps your coordinates and sensor readouts to a real place. Through years of recording this data alongside check-ins, Foursquare can figure out whether you’re inside the coffee shop or just walking by, or whether you’re on the first floor or the seventh. It doesn’t need you to input where you are; it already knows, and can offer you tips, deals, and ads to match”

http://www.wired.com/2015/04/location/

Types of marketing applications

• Broadly two types of services available– Geo-social services: check-in such as Foursquare

(now Swarm) and “find people close to me” such as Tinder

– Location based information services: maps, directions, info on when the next bus is due etc. such as GoogleNow

Marketing uses of location-based devices• Coupons-in-the-moment (Starbucks)• Audio-tours of cities and tourist destinations

(eg. Detour – accurate to within 3 metres)• Contextual maps with information about local

businesses (plus AR)• Apple iBeacon

– iBeacons are small devices that transmit data via Bluetooth Low Energy. iOS devices can detect these signals as well as transmit data as iBeacons. When within range of an iBeacon stores can push notifications to apps on the phone

Remember people have to turn these services on: Location-based services – usage stats

• Pew Internet research (2013) 74% of adult smartphone owners ages 18 and older say they use their phone to get directions or other information based on their current location.

• Among adult social media users ages 18 and older, 30% say that at least one of their accounts is currently set up to include their location in their posts.

• 12% of adult smartphone owners say they use a geosocial service to “check in” to certain locations or share their location with friends, down from 18% in early 2012.

• Among these geosocial service users, 39% say they check into places on Facebook, 18% say they use Foursquare, and 14% say they use Google Plus, among other services.

MOBILE ADVERTISING

Issues for mobile advertising

• “Fat finger syndrome”

• Low tolerance on mobile, so monetization is still a problem (although Facebook looks ok now – July 2014 figures)

http://www.comscore.com/Insights/Blog/Theres_a_20_Billion_Pot_of_Gold_at_the_End_of_the_Mobile_Advertising_Rainbow

The opportunity…mobile ad spend lags behind mobile engagement

http://www.comscore.com/Insights/Blog/Theres_a_20_Billion_Pot_of_Gold_at_the_End_of_the_Mobile_Advertising_Rainbow

Trends in mobile advertising• Different display ad strategies for different devices because of

different usage patterns?– Typical 30 second video ad model doesn’t fit - brands will create

different length ads according to the medium eg. Instagram (max 15 seconds) and Vine video (max 6 seconds)

– Traditional banner and MPU (mid-page unit) ads will be used less and replaced by rich media

– Quality not quantity in terms of views more important. Cost per engagement (CPE) is a better measure

• Moving away from traditional display ads altogether?– Brands using Snapchat creatively

http://www.theguardian.com/media-network/ebuzzing-partner-zone/mobile-advertising-trends-2014

APPS VERSUS BROWSER-BASED MARKETING ON MOBILE

HTML5 versus native apps for mobile

• HTML5 is a technology that allows the use of rich apps that run on any device via a standard web browser

• Advantage of HTML5– Build once and deploy to many mobile devices.

Native apps need to be built separately for each mobile OS

– No apps to download (reduces friction)

Comparison between HTML5 and native apps

http://www.businessinsider.com/battle-between-html5-vs-native-apps-2013-77

Criteria Winner Reason

Rich user experience and performance

Native apps Still some technical challenges in accessing device-native features

Cross platform deployment costs

HTML 5 HTML5 is the common language of the web – device and OS don’t matter

Immediate updates and distribution control

HTML 5 HTML5 is an open standard – no single company owns it and therefore cannot act as a gatekeeper

Monetization for developer / publisher

Native apps No marketplace like Google Play for HTML5 apps

Available programming expertise

HTML 5 HTML5, javascript, & css are the native languages of the web (lots of skilled developers)

Fragmentation challenges HTML 5 Cross platform potential of HTML5 may give it the edge eventually

VIRTUAL EXPERIENCES

Distinguish between augmented reality and virtual reality

• Augmented reality is the addition of a layer of data/information (text, video, audio etc) to the physical world in real time (most usually done with a smart phone or tablet).

• Virtual reality is a computer generated simulation of the real world or a fantasy world that the user can interact with (usually) in real time.

• Virtual experiences

Augmented reality (AR) as a mobile strategy

• “Augmented Reality (AR) is an environment where a real life is enhanced by virtual elements in real time. The purpose of AR is to enhance the information we naturally receive through our five senses, by adding superimposed, constructed virtual elements to bring complementary information and meaning that may not be possible to see by natural means. ”

http://augreality.pbworks.com/w/page/9469035/Definition%20and%20key%20information%20on%20AR

QR Codes• QR (Quick Response) codes -Primitive version

of augmented reality – really just a bridge between the physical and the virtual

• Uptake is quite low (need to download an app)

• Poorly executed usage (no value for the effort)• They are unsightly and compete for space on

packaging, billboards, print media etc• Easy to create• Some examples of creative marketing uses

True AR

• Augment print or other physical media and actual places with digital content eg. Layar and Aurasma

– TED talk showing how Aurasma works (uses image recognition as the trigger) 8 minute video

• Users need to download an app, but the experience is much more rewarding than QR codes

• The physical element that is being augmented does not have to be altered at all – image recognition does the work and triggers the data layer

• Still pretty cutting edge so has the novelty advantage for a campaign

Some AR examples• AR can be used in advertisements, billboards,

magazines etc and simply by “recognition” of physical objects such as buildings

• Also tied to location based sensing• The Airwalk invisible pop-up store• Ikea’s

2014 catalog lets you see the furniture in your home

• Disney example of AR in children’s book• Google’s Ingress game recognizes historical

landmarks

Devices that can be used for either VR or AR

• Interactive and immersive experiences– New devices like the Oculus Rift (company

acquired by Facebook in 2014 for $2 billion• Claims that it is going to change the face of social

networking and provide the next “computing platform”• Many marketing opportunities both in terms of virtual

and augmented reality• Jacob tries the Oculus Rift (Roller Coaster)

• Cheap VR – Google Cardboard

A couple of interesting TED talks on AR

• https://www.ted.com/talks/chris_kluwe_how_augmented_reality_will_change_sports_and_build_empathy

• http://www.ted.com/talks/matt_mills_image_recognition_that_triggers_augmented_reality?language=en

Brainstorming opportunities for mobile

• Products and services for mobile?

• Promotions via mobile?

• Think of as many as you can, then think about the marketing challenges you might face.

• The 2014 Smartie Awards for mobile marketing might help you get some ideas