The Big Mobile Shopping Handbook_1

7/27/2019 The Big Mobile Shopping Handbook_1

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The Big MobileShopping Handbook

iabuk.net


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Introduction 41 Mobile advertising driving shopping 6

2 Payments 22

3 Mobile in-store 36

4 Building or mobile shopping 44

5 Future o mobile shopping 56

Contents


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Consumers have never been more in control o

their shopping experiences, and are increasinglydemanding more out o their avourite retail outlets.

The question is, are retailers doing enough to

stay ahead o consumers expectations?

The volume o mCommerce has steadily increased

over the past ew years, which is hardly surprising

when you consider that 1/3 o all UK page views now

come rom a connected device1. The retail industry is

making some strides in the mobile space. In the ull

year 2012 IAB/PWC Digital Adspend Study, it was the

third biggest spender on mobile display advertising.

Alongside this, mobile device sales accounted or 12%

o the 62.4bn spent with online retailers in 20122.

In July 2013, the IAB conducted the Mobile Retail Audit

which looked at the mobile presence o the top 50 UK

retailers. The study ound that 74% o retailers had a

mobile optimised site, however only 8% had a tailored

tablet experience. When you consider this gure

alongside a statistic rom a piece o research the IAB

conducted in 2012 which ound that people are, on

average, spending 4.4 hours a week shopping on thei r

tablet devices, there is a disconnect between the two 3.

Introduction

Source: IAB Mobile Retail Audit, Ba se: Top 50 UK retailers

Mobile Optimised Site

74%

Tablet Optimised Site

8%

Responsive Web Design

2%


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5

by Mike Reynolds

IAB UK

Since the introduction o the smartphone, shopping has

become a completely dierent experience, not only rom

a purchasing perspective, but also rom a searching

point o view. Mobile search oers such a unique wayo communicating with your audience, especially in

retail where location plays such an important role or

the consumer. The Mobile Retai l Audit ound that 48%

o retailers were optimising their campaigns or mobile,

however only 18% were taking advantage o the extra

ad extensions, such as click to call and get directions,

that mobile now allows you to oer your customers.

Some companies have truly embraced the mobile

movement, and are now seeing the rewards o their

early adopter approach. One o those companies

is eBay, which has set the tone or retailers aroundthe world. In act, eBay now sees one third o every

transaction involving a mobile, and are predicting

13bn worth o sales on mobile in 2013! eBay is a great

example o a company that understands the importance

o using the mobile channel to enhance customer

relationships and oer them unique experiences

and opportunities that other channels cant provide.

The IAB is committed to making mobile easier

or brands and agencies to tap into this growing

market. The Big Mobile Shopping Handbook aims

to give practical advice when integrating mobileinto a brands digital strategy. With this in mind, the

chapters have been written by industry experts

that are at the oreront o mobile innovation.

We hope this gives you everything you need

to know about mobile shopping, but o course

new inormation is released all the time.

Please be sure to keep an eye on our website

www.iabuk.netor the latest research,

news and market inormation.

1 Comscore

2 Survey by IMRG CapGemini

3 IAB Mobile and the Online Journey 2012


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Mobile advertisingdriving shopping

1

1.1 Mobile display driving shopping

1.2 Proximity marketing

driving shopping

1.3 Tracking to maximise yourmedia spends and maximiseROI or mcommerce

1.4 Mobile aliates driving purchase


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Mobile has undamentally changed the retail

industry. Consumers are now spending more timeengaging with retail content on mobile devices than

on the desktop1, and smartphones and tablets have

emerged as both a vital part o the in-store shopping

experience, and a direct channel to drive purchases.

As advertisers increasingly turn to mobile to drive

consumers to shop, we have two main pieces o advice

that we like to pass along to our partners in the space:

1.1

Mobile displaydriving shopping

1 ComScore MobiLens

Understand the role

mobile plays in the

shopping process

Utilise the aspects

o mobile that

make it unique

1

2


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by Gavin Stirrat

Managing Director EMEA, Millennial Media

Millennial Media is the leading independent mobile

advertising platorm company. Our technology, tools

and services help app developers and mobile website

publishers to maximize their advertising revenue,

acquire users or their apps and gain insight about

their users. We oer advertisers signicant audience

reach, sophisticated targeting capabilities and the

ability to deliver rich and engaging ad experiences

to consumers on their mobile connected devices.

Understand the role mobileplays in the shopping processWhen a consumer is in-store, there are

countless reasons why they may turn to their

mobile device. These include comparing prices,

nding coupons, researching eatures, asking

the opinion o riends and amily, taking

pictures o a product and much more.

As brands look to engage consumers in

situations like this, it is critical to think about the

dierent use cases, understand which actions

the campaign may want to encourage, and then

set up the creative and targeting accordingly.

Brands should also think about the t ime o day

they want their campaign to run, and how this

will aect the way consumers interact with the

ad. The primetime or tablet shopping is 9pm,

which essentially extends the traditional shopping

hours or many brands. I an advertiser is looking

to set up a campaign with the primary goal o

driving purchases, day-parting the campaign and

targeting tablets can be a great way to do this.

Finally, brands should understand what types o

items are actually being purchased on mobile devices.We ound that clothing or accessories, tickets and books

were the three most popular categories, yet consumers

were buying everything rom fowers to car rentals.

With that said, certain vert icals may wish to avoid directly

ocusing on mCommerce and instead aim or higher

unnel goals like awareness or consideration, which still

play a crucial role in the overall shopping experience.


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Clothing or Accessories39%

24%

23%

22%

21%

21%

19%

15%

13%

11%

10%

9%

8%

4%

54%

24%

29%

20%

22%

23%

20%

19%

14%

10%

9%

15%

13%

9%

Smartphone

Tablet

Retail

Tickets

Books (not E-books)

Meals (Delivery or Pickup)

Consumer Electronics/

Household Appliances

Daily Deals or

Discount Coupons

Personal Care/

Hygiene Products

Git Certicates

Groceries

Sports/Fitness Equipment

Flowers

Hotel Accommodations

Airplane Tickets

Car Rental

Types o goods or services

purchased on mobile devices

Source: ComScore MobiLens a nd TabLens, March 2013


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11

Utilise the aspects o mobilethat make it uniqueMobile is not online, and trying to treat the two channels

the same way is not the most eect ive use o media

spend. In act, part o what makes the opportunity in

mobile so exciting is precisely that it is dierent to online.

For example, think about store locators: Whilst

eCommerce and mCommerce have emerged as

viable shopping options, many advertisers still eel

that their best chance to close a sale is to get people

into a bricks-and-mortar location. With mobile, brands

can insert a store locator that leverages the GPS inside

a phone or tablet to immediately tell a consumer

where their nearest location is, no matter where

they may be (along with directions to get there!).

A great example o a campaign where the advertiser

understood the unique aspects o mobile is an

initiative we ran with the restaurant chain Harvester.

Harvester ran a display ad which oered a coupon

that gave consumers 5 o their bill when spending

30 or more. When a person clicked on this coupon,

it was delivered straight to their phone, through

the Passbook unctionality on iOS devices.

Unlike a traditional paper coupon, which can easily

be lost or let at home, this campaign delivered the

coupon into a device that most people keep with themor 24 hours a day, and it was an incredibly innovative

way to leverage a uniquely mobile unctionality.

For the restaurant chain, delivering coupons via

mobile has several additional advantages, alongsidethe aorementioned improved consumer experience:

by utilising EagleEyes EPOS redemption capabil ity,

the campaign eectiveness can be tracked and

optimised in real-time; tracking rom issuance to

redemption provides greater business intelligence

and opportunities or new CRM programmes; the

coupon is unique and can only be redeemed against

that particular oer; and being unique, the electronic

redemption provides greater protection against raud.

Mobile is no longer the advertising channel o the

uture. It is the advertising channel o today. Brands

need to embrace the aspects o mobile that make it

unique and i they do that, its been proven that they

can enhance the shopping experience and drive

purchases through all their commerce destinations.


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12

The trade press is littered with articles about how

location in mobile is going to be, or perhaps alreadyis, the next big thing in advertising. No-one is in any

doubt that it is an invaluable marketing tool to reach

a consumer on the go, make them aware o oers

and discounts rom retailers in the immediate vicinity

and drive ootall into physical high street retailers.

Pure proximityA mobile message within a close vicinity o a physical

location is a huge ootall driver especially with

targeted, relevant messages. However just running

a nationwide campaign with adverts targeted to a

proximity o each branch or store would be successul,

but only to a point. Consider a message relevant to

the users location: Three Mobile served a proximity

specic message to drive awareness o a new store

opening on a local high street. The result was an uplit

in CTR o c.1% as the communication was on a personalrather than generic level. Although this proved a great

success there are other actors to look at as well.

Extended proximityOne key consideration is the eectiveness o proximity

based mobile marketing when the geo-enced

area is larger than 1 mile. Business Insider research

concludes that mobile display CTRs improve by up to

40% the closer a consumer is to a business; (less than

1 mile away versus 5 to 10 miles). With the exception

o perhaps car dealerships and out o town retail

parks, this is too great a proximity to eectively drive

ootall. Inevitably a large geo-ence will result in huge

numbers o consumers seeing the advert when itsimply isnt relevant to them. An advert encouraging

someone to test drive a luxury car is likely to be a

wasted impression i its served to a 19 year old student

who is 4 miles rom their closest dealership. Rather

than just blanket coverage o an area, this luxury car

makers marketing team could choose to only target

a luxury audience within this extended proximity.

1.2

Proximity marketingdriving shopping


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Reaching audience by locationPutting a cap on the urthest distance rom a dealership

that someone can be targeted will certainly increaseeciency, but so too will only targeting connected

devices in luxury hotels, Michelin starred restaurants,

marinas, business class airport lounges and gol clubs.

Its important to note that these connected devices

shouldnt be simply limited to smartphones but can,

and denitely should, include tablets and laptops given

the usage theyll get at wi locations such as the above.

Moreover, the marketing team could be urther selective

about the audience they choose to ocus on within that

geo-ence. Not only could they narrow down just to men

over the age o 40 using customer data rom public wi

providers or mobile operators, but could consider theprevious behaviours and actions o any given consumer.

Not only will this also drive ootall but locations with

high dwell times increase interaction and click

throughs to mobile sites by an additional 14%

in the Luxury car market this equates to Brochure and

Test drive requests which requently convert to sales.

On the surace, a mobile user walking down the street

may not necessarily be the right person to serve a

luxury car advert to but imagine that the marketers

were able to determine that this person had been

browsing car comparison sites recently, or regularlyrequented one o the luxury locations above. At this

point they not only know that this person is close to

a dealership, but has the interests and disposable

income to make them a desirable consumer to target,

retargeting based on previous location and browsing

history like this increases the campaign success urther.

Challenges and the utureThe big challenge o proximity marketing is the metric

by which you measure success although severaltechnology companies claim to measure the uplit in

ootall and calculate a genuine ROI these methods are

oten unproven and can only provide data rom small

percentages o users who saw the adver t. The obvious

answer is location specic coupons and discounts but

without a substantial overhaul o most EPOS systems this

is oten not a easible option either. Until the technology

exists to provide these results the best strategy or

marketers to drive sales is to use a combination o

proximity tools and location based assumptions

to reach the right audience in the right place.

by Andy Beames

Senior Sales Manager, Blis Media


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1.3

Tracking to maximiseyour media spendsand maximise ROI

or mCommerceOver a quarter o smartphone owners use

their device to shop online every week according

to recent data1. This number will grow rapidly over

the next ew years as UK mobile shoppers increase

rom an estimated 27m in 2013 to 36m in 20152.

For retailers this represents a major opportunity.

Mobile advertising plays a signicant role the

market grew by 148% rom 2011 to 20123 as advertisers

ollowed eyeballs and behaviours rom traditional

digital environments to mobile. Consumer goods and

retail accounted or a quarter o all mobile adspend.

Optimising the mobile media spend mix during

the campaign is the largest available eciency

gain advertisers who do this using accurate and

real-time ROI data benet both rom preventing

wasted adspend on inecient buys and rom

shiting investment to higher ROI driving media.

Simply changing the ocus rom legacy

measurements (e.g. CPC) to conversion/return

based metrics can revolutionise the eciency

o a mobile media plan yet this is still to be

actioned by the majority o mobile advertisers.

It is always benecial to 3rd party serve andtrack mobile campaigns. Only by doing so does

the advertiser have clear control, ownership

and visibility o all campaign data.

It is always best to use a tool specically bui lt

or mobile online adservers are not able to deal

with the complexity o mobile ad serving (stemming

rom the large variances o devices/screen sizes/

video & audio standards/Flash & JavaScript

support/app & browser standards etc.).

Reporting discrepancy is still a major actor

with oten larger discrepancies than online

reported. However using specic mobile ad

servers eliminates this issue. The media savings

rom resulting accurate media budget optimisation

greatly outweighs any costs o tracking.

A dedicated mobile ad server such as Sam4Mobile

will track seamlessly cross both app and mobile

web ecosystems.

1 Econsultancy Mobile Commerce Compendium July 2013

2 Textlocal June 2013

3 IAB PWC Digital Adspend Full Year 2012


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by David Schruers

Country Manager, Sam4Mobile

Sam4Mobile is a mobile campaign management

platorm or media agencies and advertisers that

gives unrivalled transparent, reliable mobile campaign

data. Our platorm provides an easy interace to serve

and track your own mobile ad campaigns as simply

as possible. We measure any metric you need rom

impression to ROI and can reveal which mobile media

placements are delivering you maximum returns.Our technology allows media agencies and advertisers

to serve and measure mobile campaigns across

any ormat and device, with our proprietary SDK

and ngerprinting technology enabling post-install

KPI app analytics such as repeat usage, sales,

leads, subscriptions etc Our universal SDK means

advertisers only need to install one SDK we connect

to any publisher or network so no more SDK changes

needed. Our ad hosting and serving capability gives

agencies and advertisers ull control o their mobile

media campaign. We thereore provide our users acombination o adserving, tracking, optimisation and

in-app CRM unctionality in one built or mobile platorm.

App trackingHistorically it has been dicult to track rom

media source to app installation, and measuringdeeper has been almost impossible.

Specialist mobile tracking solutions now track easily

rom media source to app download, but also measure

app activations, registrations, sales value and volume

as well as any other in app retail events. This can be

linked directly to the originating media source to enable

mid and post campaign media plan optimisation.

Apps require the SDK o the tracking provider to be

inserted into its source code. A key benet o specialist

mobile tracking platorms is a universal SDK it can

measure any media source (a mobile ad network or

example) without having to insert the SDK rom that

source into the app. Advertisers now have fexibility

to test media buys without lengthy SDK integration

processes it only needs to be done once.

Unique user tracking methods vary across

the mobile landscape there is no standard

to track unique users across apps.

The best workaround currently is device ngerprinting.

This uses non-PII data rom the mobile device

(e.g. browser type, onts, plugins, screen s ize etc.)to create statistically robust IDs. This technology

enables accurate tracking o mobile users behaviour

beore, during and ater the app install process.

It is now possible to measure the eciency o

media buys against lie time value, requency

o purchase and average order value. Optimising

media plans with this data is much more eective.


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Mobile web trackingOn the mobile web cookies can be used to identiy

unique users and to measure ad exposure, response

and post campaign events e.g. registrations or sales.

However Apple ships Saari with 3rd party cookies

disabled. Connecting an ad event to a user and

their subsequent browser shopping events with

cookies is not possible. (Not a problem on other

browsers Fireox may ollow suit but has not yet).

There are a number o workarounds but the

best approach is device ngerprinting which

achieves an accuracy o over 95%.

By using a combination o device ngerprinting/

cookies/IDs rom operating systems campaigns

can be accurately tracked across the mobile webrom impression to post impression/click activity.

With tracking pixels in the relevant areas o the

advertisers mobile site, campaigns can be tracked

and optimised against metrics such as ROI, average

order value, sales volume or lietime value.

In storeMobile is a great channel or closing the loop between

digital and the high street. Specic campaigns can be

optimised against voucher download/registration/

redemption. By issuing unique IDs with vouchersthey can be linked back to the media plan in order to

optimise buys. Vouchers can be via email, SMS or 3rd

party voucher apps. Redemption can be measured

through entering unique codes into chip & pin at the

point o sale or by scanning barcodes, or through

social media triggers such as check ins or tweets.

The growth o indoor navigation through Wi-Fi

and mobile connections will oer retailers an array

o opportunities to test, measure and link mobile

advertising directly to retail store transactions.


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Which KPIs should you bethinking about or mobilecommerce campaigns?

Mobile campaigns have tended to ocus on tracdriving KPIs such a cost per click. Data rom Sam4Mobile

reveals no correlation between clicks and sales

across app or mobile web conversions. Mobile ad

serving solutions such as Sam4Mobile will enable

primary KPIs to be ROI based sales value or volume,

average order value and lietime value or example.

Judging media expenditure on such metrics will

result in a ar more ecient deployment o budgets.

As a secondary KPI metric advertisers should ocus on

measuring perormance across their creative ranges.

Regular A/B creative testing using ROI based metricswill help to evolve campaigns to more successul levels.

For retailers driving users into physical stores metrics

such as cost per voucher redemption or download,

cost per store lookup or cost per item reservation

can be used to measure media eectiveness.

Budget can be optimised to buys that drive the

most ecient uplits in ootall and sales.

How do we measureand optimise campaignsto generate sales?

Aside rom the KPIs above advertisers should look atthe metrics such as day o week, time o day, media

overlap, requency & recency but also at specic

mobile metrics. These include mobile operating

system, mobile browser, location (where this data is

available), connection type/speed and device type.

Due to their complex paths to purchase there can be

wide variances in where, when and how shoppers

use mobiles rom product research stage through

price comparison to transaction. These dierences

can be refected in the data that is now available

to advertisers. Targeting the right message to theuser at the right time will reap big rewards.


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Mobile customer journeyWe know that consumers use their handsets in a

dierent way to their desktops and it is important thatadvertisers adapt their strategy based on how their

(potential) customers interact with brands on a mobile

device. Consumers tend to use their smartphones to

quickly look up product inormation, nd the nearest

store or nd a phone number. Advertisers need to

ensure they are able to present their visitors with a

seamless journey in order to convert a sale, whether

directly to the mobile site, generating calls or by driving

ootall to physical stores. These are the new KPIs we

can use or mobile in the perormance channel.

Understanding mobiles scopeThe perormance channel can acilitate a number

o dierent advertiser routes to market. As well asthe standard eCommerce piece, translated to an

mCommerce platorm, there are several new orms

o interaction possible, or example email

registrations, direct call options, call me back

buttons or SMS. Even i advertisers dont have a

mobile presence yet, we can acilitate their rst

mobile website and creatives. This way advertisers

can ensure customers are able to engage with

their proposition via their most personal device.

Additionally the aliate channel is a perect example

o the power o linking online to ofine, typicallythrough a customer code, coupon or incentive via

hugely popular consumer champion sites such

as vouchercodes.co.uk and Quidco. Central to

everything is tracking and too oten advertisers ail

to get the basics correct, the consequence being

huge revenues go untracked, discouraging aliates

rom investing in the channel. The rustration is the

standard aliate tracking used or desktop, but as a

result o mobile sitting separately rom the acquisition

channel in many companies, it is oten overlooked.

1.4

Mobile a liatesdriving purchase


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by Hatice van LeeuwenSenior Mobile and Emerging Channel Specialist,

Aliate Window

TabvertisingWith the ever increasing hunger o consumers to

consume content on their tablet devices, it is imperativeto integrate tablet advertising within your mobile

strategy. We see the conversion rate on tablet is similar

compared with desktop and thereore its an ideal

channel to incorporate within mCommerce. I you

combine a tablet campaign with the great targeting

variables that mobile can oer, you can optimise your

campaign to get the maximum ROI. Think o targeting

variables like WIFI only and activity timed ater 6pm

when people are more likely to be at home and

thereore in a comortable situat ion to convert. With a

specic tablet campaign you can also combine it with

TV commercials to enhance the second screen eectand make your campaign as eective as possible.

Loyal app usersAdvertisers are also waking up to the possibility o

driving mobile and tablet app downloads through

the perormance channel. This raises interesting

considerations about how downloads sit alongside

a more acquisition ocused aliate campaign as

it might be concentrated more on driving leads or

brand engagement. Whether the app is intended

to generate subscriptions, drive in-app purchases,or to service your current customer base, you want

your downloaded app to be used. The key is

understanding measurement and how the

various propositions not only achieve what

you want them to but also complement,

not cannibalise, existing campaigns.

The mobile landscapeAt the moment, the majority o the mobile sales

within the perormance channel are being generatedby voucher and cashback aliates. This segment

is progressive within the space, developing several

new technologies to enhance the mobile opportunity.

For example, the aorementioned Quidco has

a card-linking technology to give cashback to

consumers when they are generating in-store

sales. Via their mobile app, people can nd physical

stores where they can get in-store cashback.

We also see an explosion o new mobile publishers

signing up to our network: rom small niche apps,

to big mobile display networks. To ully grasp thisopportunity it is important or advertisers to integrate

aliate tracking on their mobile site as well. The

perormance channel remains an excellent place or

aliates to get started and gain access to thousands

o advertisers. The barrier to entry is low, i aliates

are willing to accept the payment mechanism.

We dont have all the answers or mobile. Its a new,

burgeoning, interruptive route to market that is starting

to oer tantalising insights into how the consumer o

the uture will shit to dierent devices to interact with

and purchase rom advertisers. The perormancechannel is known or its innovation and creativity;

we can only assume that in time mobile will shape

the next chapter in acquisition based marketing.


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Payments

2

2.1 Mobile wallet

2.2 NFC

2.3 Mobile payments


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Though the concept o the mobile wallet has been

around a ew years now, those with a vested interestin consumer payment mechanisms and the impact these

can have on their businesses can certainly be orgiven or

still nding it hard to put a strict denition on the term.

In large part, this challenge arises rom the shit

towards smartphones, which represent an ability to

access the internet rom virtually anywhere, anytime.

With transition o the UK mobile telephone market to

4G well underway, the mobile internet is or the rst time

instant and hassle-ree, meaning what is understood

by the term mobile wallet could encompass all

manner o things. Example: i all online/digital wallets

are now ully unctional on mobile devices, are they

not mobile wallets? Its easy to see how the market

is ragmented by the potential inclusion o so much

more than what was traditional ly viewed as mobile.

To narrow the eld, Ill dene a mobile wallet as being

centred around something traditionally mobile: the SIM

as the element that saeguards security and authenticity

(in much the same as the way a plastic debit or credit

card uses the chip). The mobile wallet must then

minimally include a und source or account o some sort

thats stored on the device, in the Cloud, or somewhere

else thats accessible via the mobile device NFC,

direct-to-bill mobile payments, peer-to-peer payments,

and accounts linked to PayPal or credit and debit cards.

O course, payments is just one aspect, albeit obviously

the most important one. To gain real util ity, a mobile

wallet should not just be an alternative payment

mechanism, but a real replacement or the physical

wallet. The average person takes up to 24 hours to

notice theyre missing their wallet, but theyll notice

a missing mobile phone within an hour. I mobile

phones are thus already more indispensable than

wallets, eradicating the latter altogether surely only

requires the mobile phone be able to subsume all

its unctions: payments, loyalty cards, vouchers,

receipts, and transport and entertainment tickets.

2.1Mobile wallet


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EE is the de acto mobile wallet leader in the UK with

the only mobile contactless payments oering on

the market. Initial ly, under the Orange brand, our

evolution started with the Orange Quick Tap service,and was soon ollowed by EE Cash on Tap, which allows

consumers to make contactless purchases o up to

20 anywhere contactless cards are accepted simply

by tapping their phone against the payment terminal.

Others, however, and most notably O2, are gearing

up activit y in this space rapidly. At the same time, we

see most o the major mobile device manuacturers

Sony, Samsung, Blackberry gaining traction with

new NFC capable devices like the Samsung Galaxy S4.

Add to that the ollowing acts (courtesy o Ocom):

At 58%, the UKs smartphone penetrationis one o the highest in the world

1 in 5 smartphones wi ll be NFC-enabled by 2015

The UKs consumption o mobile data/internet was

already the highest in the world by December 2011

and its hard not to see conditions in the

UK are ripe to allow the rst multi-unctional

mobile wallet to become a reality.

In a dicult economic climate, the rise o mobile

as a signicant business channel in and o

itsel has made companies begin to detail all-

encompassing mobile strategies. Here, they mustremember that the mobile wallet represents ar

more than just nance and retail just as nancial

services are more than simply payments: loyalty,

ticketing, couponing, sharing, insight, and money

management are all important parts o the mix.

Looking urther aeld, we can see examples o such

mobile wallets in action. ISIS, the joint venture between

AT&T, T-Mobile and Verizon, has partnerships with

MasterCard, Visa, American Express and Discover; it

holds multiple payment and loyalty cards, and even

organises what were previously paper-based couponsand promotions so users always have them handy at

the point o purchase, where they are brought to the

consumers and retailers attention at the right time.

by Dan Penn

Business Development Manager, EE


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Such examples make EE condent the mobile

phone will become the consumers wallet, the

every card, and the general l ie hub as the lines

between digital and physical continue to blur.Well continue to see growth in scale and take-up

o mobile payments and wallet services amongst

consumers, but also increasing numbers o

partnership programmes rom the retail, nancial,

transport, entertainment and other communities.

Meanwhile, payments innovation companies can

be expected to come in with their own solutions that

broaden appeal and utility in all sorts o ways.

Already, were seeing exponential growth in adoption

o mobile contactless payments amongst our consumer

customers, while partnerships continue to increasein number and more and more household-name

retailers are moving to contactless payment acilities.

The next logical step is clearly or loyalty/reward

schemes to be built into the retailers contactless/

mobile strategy, opening the door to rich, aggregated

customer behavioural data that can transorm customer

service and business perormance. Meanwhile, the

last ew months have seen mass transport companies

like TL begin to roll out contactless payment support

on buses and the London Underground, indicating

mobile travel ticketing is likely not too ar o. The

mobile wallet is the obvious home or these as newand existing solutions continue to grow in capability.


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In summary, the mobile wallet market may still be

ragmented, but all o the pieces are either in place

or will be imminently; all that is lacking is some

organisation to t them together beore we see massadoption. Consumers await only the rst multipurpose

mobile wallet that represents a realistic replacement

or the physical one. Those interested in being in it

rom the ground level up should begin their internal

and external discussions now, taking care to consider

at a minimum their activity in this space may involve

developing or partnering or capabilities in payments,

security, loyalty/reward, data capture and analysis

and, crucially, support that is open-ended enough

to allow or growth as the market develops urther.


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Near Field Communication (NFC) allows the

ree fow o data between online devices suchas smartphones and ofine products.

NFC-enabled devices contain a chip that sends

radio waves to a nearby NFC device or an objec t

containing an RFID tag. The tag can be integrated into

posters or products and when tapped, can enable

a variety o actions such as making a payment,

opening an internet link or downloading an app.

Only one in three smartphones currently supports

NFC, partly due to the lack o support rom Apple.

Perhaps more signicantly, two thirds o smartphone

owners dont even know i their phone has NFC so

there is still more education to be done around the

technology. Nonetheless, we can already start to

identiy two key opportunities that will add value

or both consumers and advertisers: mCommerce

and interactive consumer experiences.

2.2NFC

Ticketing

Cashless payments

Loyalty programs

Social media

Advertising interaction

Identication

In-store marketing

Physical access

NFC

Potential uses or


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Revolution in mCommerceWith 61% o shopping activities beginning on

a smartphone and mobile accounting or 20%o the UK online retail market, mobile is becoming

the quintessential shopping companion. Enabling

quick and secure mobile payments and in- store

voucher redemption, NFC is expected to make a large

contribution to the uture o the shopping experience.

Similar to the contactless payment card mechanism,

NFC-enabled mobile wallets remove the need or

physical bank cards, allowing users to make cashless

payments or redeem vouchers straight rom their mobile.

However as a relatively nascent territory, mobile wallets

are lacking in scale because o the ragmentationo providers and limited number o retailers that

are able to support the technology. The latest Berg

Insight report identies that there were NFC mobile

wallet services live in 13 countries worldwide by the

end o Q1 2013. However, there are only 3 NFC mobile

wallet services in the world that have an active

market o more than 100,000 users: Google Wallet

in the US market, ollowed by Isis and Turkcell which

is mainly operating in Turkey. Australia is also one

o the countries leading the way with 25-30% o all

transactions under $100 being contactless while China

is currently trialling NFC payments on public transport.

There is yet to be a clear market leader in the UK with

emerging products including MasterPass, EES Cash

on Tap, Apple Passbook and Samsung wallet. In July

2013, the Moneto prepaid wallet ser vice launched NFC

on iPhone4 and 4s in the UK, expanding the market

past Android territory. This may have prompted the

latest prediction that NFC penetration will increase to

approximately 32% by 2017. Yet, consumer education

and consolidation o providers is needed rst beore

it becomes an everyday method o payment.

by Sabrina Francis

Digital Strategist, Arena Media


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Interactive consumer experiencesCustomers do not recognise lines and nor should

we. Online, ofine, above the line, below the linewe need to think and deliver experiences and

marketing without delineation. (Ashley Friedlin

eConsultancy Mobile Marketing Maniesto)

The evolution o the smartphone has been instrumental

in closing the gap between the physical and digital

world. Integrating the NFC tag into products and

posters is a great opportunity or marketers to

enhance consumer experiences, particularly by

making product and brand experiences more

interactive and ultimately more accountable.

An example o this can be seen rom the Quick Tap

Treats campaign with UK restaurant EAT which was

the UKs rst NFC consumer marketing campaign.

Customers could use Orange NFC-enabled phones to

tap posters within EAT stores to activate a wheel o

ortune which randomly selected a treat. Ater three

spins, the customer selected a treat to redeem in-store.

Despite being limited to Orange devices, the results

were quite impressive with 24,614 transactions over

the two months, working out to 410 transactions

per day. Three ths o consumers also purchased

other additional items simultaneously whencollecting their treats. This demonstrates how NFC

can be used to breathe lie back into the in- store

experience in light o the increased concerns

around show-rooming (where consumers examine

merchandise in-store but purchase them online

once theyve ound the lowest price). Marketers

can thereore look orward to more opportunities

when the technology has a wider user base.


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In summaryThe ragmentation o providers and the limited

penetration o NFC-enabled devices mean that inthe short-term, the true potential o NFC is still to be

realised. Although this has generated great interest

among marketers, consumer demand is still relatively

low. We must consider this as a longer term eor t due to

the supporting ecosystem and inrastructure that needs

to be established. It will then be down to marketers to

create compelling incentives or consumers to engage

using this innovative and accountable technology.

Sources:Posterscope/Clear Channel Study UK & USA

www.slideshare.net/Posterscope/posterscope-nc-inographic001v21slimscroll

www.slideshare.net/Kuliza_Research/commerce-with-a-tap

econsultancy.com/uk/blog/63105-tap-on-the-map-maybe-i-was-wrong-about-nc

www.proxama.com/products-and-services/

www.berginsight.com/News.aspx?m_m=6

Image: www.nctimes.com/news/orange-uk-launch-nc-loyalty-app-seeks-build-user-numbers


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Mobile phones have revolutionised numerous industries.

It would be ascinating to track the sales o alarm clocks,A-Z maps, pocket size digital cameras, paper diaries and

address books since the arrival o the smartphone.

Now the payments industry is under the spotlight.

All the ingredients are in place: consumer demand,

handset capabilities and an investment community

hungry or trusted and secure mobile payment platorms

to unlock massive growth potential on a global scale.

This section covers the 6 main mobilepayments models available.

1. Mobile web-based payments

2. In-app payments

3. Operator (carrier) billing

4. Payment-specific apps

5. Mobile wallet

(See Section 2.1)

6. Contactless payments [NFC/RFID]

(See Section 2.2)

Beore we review each payment model

lets consider the main players which

determine the success o each model.

Banks and credit card companies,

which seek to maintain their hold on

the consumer payments market.

Mobile operators, which have access to

extensive consumer mobile and payment data

and seek to urther monetize their user base.

Point o sale tech providers, which provide

the payment security processes, carry realtime

transaction data rom customers to EPOS and

online check-outs to CRM databases.

Mobile payment site and app developers,

which provide the User Experiences

to conduct mobile commerce.

Device manuacturers, whose competitive

advantage hinges on delivering ever enhanced

unctionality to grow their share in todays

cut-throat mobile handset markets.

2.3Mobile payments


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Mobile app payment model 1:Web-based paymentAs the mobile internet becomes mainstream or

all industry sectors, mobile optimised websites

deliver ast ROI or transactional sites. Retailers

have been early adopters: 74% o the UKs

leading 50 retailers now oer mobile optimised

sites, and 81% o them are transactional.

Kiddicares mobile site took just 7 weeks to

design and build, and the rst order was placed

within 4 minutes. Within 12 weeks, mobile

accounted or 10% o all Kiddicare.com sales.

by Rob Thurner

Mobile Consultant and Trainer, Burner Mobile

Sources:

www.youtube.com/user/barclaysonline

www.youtube.com/watch?v=x5woIGSOLGk

Image: eibDIGITAL


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Mobile app payment model 2:Mobile app paymentsApple pioneered a convenient, secure and trusted

channel or music lovers to download and pay or

music. iTunes users set up their accounts online,

add credit card details just once, and agree T&Cs

authorising Apple to charge them via their mobile

bills or multiple purchases. This payment model has

since been replicated by Android and Microsot.

Amazons app is best in class. Described succinctly

in the app store as Comprehensive, Convenient,

Fast, Secure and Universal , the app allows users

to sign in with their existing Amazon account to

access basket, payment and shopping options,

compare prices instantly by scanning barcodes,

snap a picture or type a search, and access

international content rom the single app.

The 1-click purchase option provides a

rapid, spontaneous purchase solution,

without the need or additional log-in.

Mobile payment model 3:Operator (carrier) billingOperator billing provides a secure, convenient

and speedy alternative both or the consumer and

the merchant opening up an addressable market

that covers virtually the entire global mobile market.

Gartner expects direct operator billing to account or

about 88 per cent o total transactions in North America

and about 80 per cent in Western Europe by 2016.

Operators oer Premium rate messaging service

(PSMS) or organisations wanting the take payments

via SMS. PSMS is used extensively by charities

taking one-o donations via mobile, or sweepstake

text and win competitions, and or TV voting

campaigns. In the UK, PSMS promotions are run

on shortcodes which command price premium

range o 10p, 25p, 35p, 50p, 1, 1.50, 5.

Mobile payment model 4:Payment-specic appsApps have become a battleground or the banks

and payment providers to develop an additional

payment channel or existing customers, and

to win over new customers. Payment-specic

apps can be grouped into three categories.

Personal banking

Provided by most major banks, these require

customer log-in to access account balances, check

and analyse spend his tory, and make payments.

Person-to-Person payments

Barclays Pingit, Europes rst person-to-person

service or sending or receiving money via your

mobile, helps users sort out IOUs quickly, easily, and

securely. The app uses industry standard encryption,

and is automatically wiped rom the phone i the

user reports his or her phone lost or stolen.


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On-device payments

For small and medium sized businesses which preer to

take card payments to cash, two rivals provide on-device

B2B and B2C payments: Square and PayPal Mobile.

Square, set up by Twitter co-ounder Jack Dorsey,

enables anyone to take credit card payments on

smartphones. Users simply attach the white Square

to the Apple and Android device and insert the card

to the Square. The card transaction is veried and

validated via secure connection. Apple and Android

charge a 2.75% commission or each swiped payment.

PayPals contribution to mobile payments is

immense, with 2013 global revenues orecast at

$25 billion (up rom $4 bi llion in 2011). PayPal Here1

allows businesses to take payments using blue

triangular credit card reader which is plugged into

the smartphones headphone jack. The card data

is encrypted beore transmission, and the customer

receives email conrmation o the transaction.

PayPal Beacon pairs an in-store Bluetooth Low

Energy device and a PayPal app to sense when

a consumer enters the store. It then uses the pay

with your ace concept which let sales assistants

check and veriy the PayPal user picture on his

or her payment till beore money is transerred

securely no wallet, no card, no NFC.

Beore deciding which mobile payment modelto develop, take time evaluating how each one

meets your consumers needs. The winners

will satisy these 4 success actors:

SeamlessSolution, Data

integration

Ease, speed,convenience,

UX

Trust, Privacy,

SecurityScaleable

Mobile paymentsuccess actors

1 www.youtube.com/watch?v=x5woIGSOLGk


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Mobile in-store

3

3.1 Mobile price checking

3.2 Mobile vouchers and

in-store promotions


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In todays digital centric world, nine out o ten

purchases still take place ofine, with our o thoseten purchases being directly infuenced by online

research. The rise o smartphone technology has

ensured that mobile is playing an increasingly

important role within the online research process.

Today, mobile devices account or 17.4% o global

web page views and approximately 30% o total search

volumes, its infuence is large and growing. Mobile is

changing the ace o online research, moving it rom

an activity conducted at home or at work to being an

activity conducted in real-time, when in a physical store.

17% o all mobile searches take place when a consumer

is in-store, and 95% o all smartphone owners have

used their device to research a product when in-store.

New devices create new behaviours, and smartphone

technology is directly responsible or showrooming,

the practice o consumers using physical bricks and

mortar as showrooms to examine products, and then

completing their purchase at a later time online.

Showrooming is having an increasingly powerul

eect upon traditional businesses, as consumers

are taking advantage o smart online retailers when

looking or best pricing or quality o service. This has

been named as the Amazon eect, where consumers

visit a physical store only to complete their purchase on

Amazon, leaving the physical retailer without a sale.

According to a recent Foolproo research study, the

lead up to Christmas 2012 saw 24% o all UK shoppers

showrooming, with 40% o them taking their business

elsewhere as a result. Over 20% o shoppers say they

went into a store just to check out something they

planned to buy online. Showrooming is even more

prevalent amongst 18-39 year olds, with 39% exhibitingthese behaviours, as opposed to 18% o shoppers over

the age o 40. To put this into context, a 10% leakage

as a result o showrooming activities meant 500m o

sales switched between retailers in the nal weekend

beore Christmas. EBAY have orecasted this trend to

rise with 59% o UK shoppers engaging in this by 2014,

which will in turn save UK shoppers 300m. Indeed the

showrooming eect was named as a critical actor

in the demise o HMV and more recently Jessops.

3.1Mobile price checking


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Consumers engage in showrooming or a variety o

reasons, and its not always just about price. Although

74% o participants state that they engage in these

behaviours to directly compare prices, there are otheractors that infuence the propensity to complete the

purchase online. 40% o showroomers, simply wanted

to see an item beore purchasing onl ine, 22% made the

purchase online when in-store as the item was out o

stock, whilst 15% would rather have had the item sent

directly to their home. 4% o showroomers also stated

they were simply looking or product reviews online, and

these reviews would play a vital role in their purchase.

This trend o people using their devices to access

inormation that directly infuences their purchasing

behaviour is aecting retail globally. As such, we arenow beginning to see examples o ways in which

retailers are beginning to ght back rom across the

globe. In Australia, we have seen a small Brisbane

grocery store implement a charge to customers who

use the store to browse, ask advice and then leave

without purchasing. Recently, Victoria Barnsley, the

Chie Executive o HarperCollins suggested that the idea

o charging customers to browse in a bookstore is not

that insane. BestBuy stores in the US have implemented

a price match scheme, where they wil l match any online

retailer when customers are in store. The challenge or

retail is to evolve their oering, to provide customerswith a high level o service that goes above and beyond

anything that could be delivered online. The knowledge,

passion, and service manner o retail sta is now the

critical weapon retailers have at their disposal when

securing the uture o bricks and mortar shopping.

It is also worth posing the question, what would

online retailers do without physical bricks and mortar

shops to inspire shoppers ? The two have an intertwined

relationship, but smartphone technology is currently

providing online retailers with the upper hand. One thing

is or sure, the uture o retail is rie or transormation,

and traditional retailers will have to adapt i they

are to survive in this increasingly mobile world.

by Alex Newman

Head o Mobile EMEA, OmnicomMediaGroup

Showrooming

Image:

www.gizmodo.co.uk/2013/01/jessops-its-all-amazons-ault/


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With mobile technology now an everyday eature

o peoples lives, brands and retailers can use it orengaging customers with targeted mobile vouchers

and timely in-store promotional messages.

Mobile engagement is convenient and useul or

consumers, and improves retailers relationships with

customers. However, a badly planned mobile promotion

campaign can result in the opposite, so read this

chapter or tips on creating a successul campaign.

Why vouchers?The current dicult economic conditions mean

that consumers are keen to save money wherever

possible and expect deals on everything rom

grocery shopping to going out and travel. A recent

YouGov study o 2,100 consumers in the UK ound

that 82 per cent o people have used a discount or

voucher o some kind over the last 12 months.

This consumer demand extends to mobile vouchers.

One advantage o mobile vouchers is that, unlike paper

ones, special oers sent to a mobile phone dont needto be cut out and carried around. As a result, mobile

oers deliver a high return or advertisers, brands and

retailers: redemption rates or mobile vouchers stand

at 10%, compared to around 1% or paper vouchers.

Retailers can use mobile to quickly and easily

reach consumers wherever they are, to trigger

an immediate response or action. This can be as

simple as encouraging people to visit their nearest

store branch with a 10 per cent o everything

reminder sent to their mobile phone either the

day beore a sale, or on the morning o a sale.

Whats on oer?Mobile promotions come in various shapes and ormats:

They can be as simple as an alpha-numeric

code sent as an SMS text message.

SMS can also be used to send a URL link

to a website that leads to the coupon.

A retailer can also send a coupon as

content within an MMS message.

Retailers with a branded mobile app can send

push notications to smartphone users who

have downloaded the app. The notication

appears as an on-screen message which leads

to a page in the app displaying the voucher.

Each type o coupon can be redeemed just by showingthe message to the sales assistant at the checkout.

3.2

Mobile vouchers andin-store promotions


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An interactive customerexperience in-storeRetailers can use mobile in-store to deliver a more

interactive customer experience to shoppers in a way

that provides a transactional money o oer, and

which adds value or the customer in other ways.

Example: A supermarket can set up signs in

stores that encourage customers to text a keyword

such as ITALIAN, CHINESE, or INDIAN to

a shortcode. The supermarket then sends them

an SMS link to a recipe or an Ital ian, Chinese or

Indian meal, plus a money-o voucher to use

in-store or one o the main ingredients.

This simple and timely mobile-based oer

enhances the supermarkets relationship with

customers. It also not only saves them money on

an item, the shopper may also then buy other

ingredients or the ree recipe they received.

Mobile creditingAnother innovative use o mobile or promotional

purposes is mobile crediting that is, where abrand adds credit direct ly onto a consumers

mobile bill or pay-as-you-go credit in return or

a purchase or redeeming a special oer.

Research by mobile engagement expert OpenMarket

and research rm MobileSQUARED in July 2011 ound

that over 60 per cent o respondents aged between

16 and 30 would either buy or be more likely to buy a

product that oers mobile crediting instead o a similar

product. Mobile crediting is thereore an eective

promotional technique or brands to drive product

sales and also build loyalty with their customers.

by OpenMarket


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Smart mobile engagementMobile provides the opportunity or intelligent

engagement with oers and coupons that aredirectly relevant to consumers preerences and tastes.

In this way, retailers can combine their physical and

online assets to boost their existing relationship with

customers and create new sales opportunities as well.

A retailer can analyse the purchase history

contained on a customers store card, including:

What products theyve purchased

When they purchased them

Which location they purchased them rom

How oten they purchase them

This data can be used to send consumers a

coupon or promotional message or a product

that theyve either purchased beore, or or a

related relevant product that other customers with

a similar prole have also purchased and which

they too might be interested in. This approach

can easily be applied or all consumer goods.

Mobile engagement in actionFor example: a woman out shopping receives an SMS,

MMS or push notication on her mobile phone, oeringher a one-hour 30% discount coupon or a nearby

branch o her avourite department store. Once in the

store, she receives another mobile message listing items

that she might like, based on her recent purchases.

The woman looks or a jacket, but unortunately

the store doesnt have it in her size. A helpul sales

assistant then looks up the item on their mobile

device to check its availability at other stores: they

nd the right size and arrange or the jacket to be

delivered to the womans home in a ew days time.

The store also sends an SMS conrmation to thewoman when the jacket arrives at her home.

This is a perect example o how a retailer can use

mobile to provide a positive customer experience. In this

instance, the woman eels that she is a valued customer,

which in turn increases her loyalty to the stores brand.

The department store has also not only created a sales

opportunity but also closed a sale that might otherwise

have been lost due to a lack o available stock.

Mobile provides the opportunity or intelligent

engagement with oers and coupons that are directly

relevant to consumers preerences and tastes


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Its all about dataMobile promotions can be used to create a database o

customers, as well as expand an existing one or evensolely to continue interacting with current customers.

For best results in oering tailored, targeted and relevant

vouchers and in-store promotions, a retailer needs to:

Connect and combine the dierent

sets o customer data

Use data analytics to properly examine them

or buying patterns and customer preerences

Any brand or retailer considering a mobile campaign

should not be discouraged or eel overwhelmed i

it doesnt have certain parts in place already, such

as a smartphone app or an advanced customer

data analytics system. A simple and straightorward

mobile-based campaign that incorporates existing

systems can still deliver new sales opportunities

and valuable customer interactions.

As retailers become more condent

and experienced in using mobile, their

investment in the channel will increase.


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Building ormobile shopping

4

4.1 Apps vs Sites

4.2 Mobile ticketing and

mobile loyalty schemes

4.3 Tracking your mobile destinations


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Mobile site or app?The answer is bothIts not a case o whether to build an app or a

mobile si te. Today, most big brands need both.

Apps help deepen relationships

with your loyal customers.

Mobile sites are essential or all day-to-day

customer interactions and customer acquisition.

So the better question is: How do I optimally

serve the needs o mobile customers? The

best place to begin is making sure your website

works across devices including mobile.

Building a mobile siteResearch shows that:

75% o customers preer a mobile riendly website

61% o customers who visit a site that s not mobile

riendly are l ikely to go to a competitors site

Businesses that allow users to interact with their web

presence in all circumstances and devices can generate

more engagement. Heres how to get started.

1. Understand user activity

To identiy what areas to prioritise, analyse

your web trac. Where are customers coming

rom? When do they visit? What content do they

consume? And what devices are they using?

2. Tailor content

Your research should provide insight into what

smartphone users are looking or versus visitors on

computers and tablets. Keep their needs in mind.

Make sure to design a complete experience or mobile,

rather than simply culling content rom your existing site.

3. Decide on implementation

To address consumers across devices andallow content customisation based on their

context, there are three options:

Responsive web design (Same HTML and URL)

Responsive web design (RWD) enables you to

optimise across dierent screen sizes without

building multiple websites. Using a single URL,

a responsive site adjusts images, template layouts

and content according to device and screen.

Dynamic Serving (Dierent HTML, same URL)

When customers visit your URL, the web server

can detect what device theyre on and dynamically

present a custom page. Built using style sheets,

custom pages can be designed or any kind o device

smartphones, tablets, computers, even Smart TVs.

Separate mobile URLs

Build a site specically or mobile trac separate rom

your desktop site, so when mobile visitors navigate

to your URL (e.g. guardian.co.uk), the browser detec ts

the device and redirects them to the mobile-optimised

version o your site (e.g. m.guardian.co.uk).

Irrespective o the way you build make sureyou take into considerations such as speed,

usability, content and mCommerce.

4.1Apps vs Sites


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by Matt Brocklehurst

Product Marketing Manager, Google

o people say speed is the

most important actor when

using the mobile web1

said that a bad user

experience made them

less likely to engage

with a company2

will leave i they dont see

what they are looking or

right away on a mobile

website and will quickly

move to another website3

have abandoned a

shopping cart because

o issues encountered

at check-out4

38% 52% 61% 66%

UsabilityMake buttons big and

scrolling simple; avoid

pinch and zoom

ContentUse analytics or the

ull picture o what

your customers want

M-CommerceKeep orms simple and

minimise steps required

Four actors to consider or mobilewhen building your website:

SpeedKeep page and

image weight small

1 2 3 4

1 The Peoples Web Report, Netbiscuits, UK (June 2013)

2 What Users Want Most rom Mobile Sites Today, Google/Sterling Research/SmithGeiger, US (July 2012)

3 What Users Want Most rom Mobile Sites Today, Google/Sterling Research/SmithGeiger, US (July 2012)

4 2013 Mobile Consumer Insights, JUMIO/Harris Interactive, US (May 2013)


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Success stories: Plusnet and RWDWhen Plusnet saw smartphone and tablet visitors

were increasing, it bui lt a RWD site. Now its not

only easier to maintain content and embrace

uture device developments, but perormanceis up too online sales via smartphone and

tablet have grown tenold year on year, while the

time-to-convert metric has decreased 40%.

Building a mobile appHaving created a mobile site, next step could be to

build a branded app to enrich customer relationships.

Think o an app as a bookmark or users who

regularly want to engage with you. Follow these

guidelines to make the most o that opportunity

1. Offer compelling value

When an app doesnt deliver in terms o

entertainment or utility, its liespan will be short.

So be clear about why youre building one. To

oer new unctionality? Inspire loyalty? Both?

2. Cater to large mobile platforms

I resources are limited, prioritise those

mobile platorms that represent the majority

o your smartphone user base.

3. Drive downloads

You can have the best app in the marketplace

but this is irrelevant i your customers dont

know about it. Promotion is key, so:

Guide visitors rom your mobile, tablet and desktop

sites straight to your apps download page.

Use mobile search ads to send users

directly to your app in the marketplace.

Link direct ly to your apps download page

rom mobile ads shown in other apps. Coordinate promotional eorts including

newsletters, print ads etc. Receiving

lots o downloads quickly boosts

rankings in some app stores.

www.plus.net


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Success story: StarbucksStarbucks branded mobile app emphasises utility,

enabling users to pre-order drinks, nd a nearby

store, rell their Starbucks card and more. Today,

mobile payments via the Starbucks app accountor 10% o all US transactions, and weekly mobile

payments have doubled over the last six months.

Sites and apps working togetherIn terms o look, eel and experience, your sites

whether on mobile, tablet or desktop should work

together with your apps. This means that actions

perormed in an online account (e.g. creating a wish

list or initiating an order) should translate to the app

and vice versa. Dont orce customers to start rom

scratch when they switch devices. Instead, ollowthe examples o Tesco or Marks & Spencer, which

allow customers to access their baskets on both

internet or app to enjoy a seamless experience.

Your mobile strategy checklistTo build your brands mobile presence,

bear these main points in mind:

Understand the specic needs o

your mobile customer.

Create a mobile website that considers

speed, usabil ity, content and mCommerce.

Build an app or a subset o your audience

and remember promotion is key.

Take a single user approach, making sure

apps and sites work together seamlessly.

Measure, analyze and iterate. You wont hit

the jackpot right rom the start, but continual

analysis across destinations and deviceswill help shape a successul mobile strategy

and optimal consumer experience.


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Winning hearts, mindsand wallets through mobile

transactions and loyaltyThe rise o mobile over the last ve years has changed

how marketers service their customers. Mobility

is a wave that has washed over the world, and as

the waters settle weve ound that the landscape o

consumer engagement has orever changed consumer

behaviour and how marketers approach them.

Mobility, however you dene it, as a device (phone,

tablet, phablet), a medium (messaging, browsing,

audio/video content, apps) or an experience (news,

weather, sports, transportation, entertainment,commerce) is everywhere. There are more mobile

devices in use today than there are people on the

planet. More people throughout the world access

the web through a mobile device than they do

through the computer. We use mobile to express

ourselves, through search, reviews and social media.

We second screen, i.e. use mobile while watching

TV or reading a newspaper. We use mobile to buy

goods, services and experiences and were oten

looking to connect with brands that we nd an anity

with. Marketers that understand this can win.

Understanding commercein a mobile worldThe opportunities or enabling commerce

through and with mobile are immense, across all

sectors. Mobile provides the means o discovery,

transaction and, as in the case o ticketing and

digital services, distribution and redemption.

For example, in the area o ticketing, across land, sea

or air or or events, mobility has a huge impact. You

can use your phone device to buy tickets, to board a

plane or bus, enter a concert and so much more. A Q3

2013 Juniper Research report estimates that 18 billion

transport and events tickets will be delivered through

mobile by 2018 worldwide. In Sweden today, mobile

already accounts or 65% o bus ticket transactions.

While mobile ticketing adoption continues to rise, this

is just one area where mobile impacts transactions.

Consumers are showing theyre ready or commercial

engagements through mobile. For instance, a 2013

VocaLink study in the UK ound that hal the UK

population is ready or mobile payments, 20% are

already doing it and 30% intend to. Starbucks has 10

million mobile active users and recently announced that

theyre processing our million mobile transactions a

week which account or 10% o their total revenue. PayPalwill process $14 billion in payments through mobile this

year, up 250% rom last year. The list o revenue growth

or major rms who have embraced mobility is long.

It is important to note that there are two sides to

mobile transactions mobile payments and mobile

commerce. eMarketer estimates that payments made

at a physical point o sale (POS) by swiping, tapping,

scanning, etc. a mobile device (aka contactless

payments or proximity payments) will reach $1 billion

by the end o 2013 and $58 billion by 2017. Payments

made through mobile, that is mobile commerce,may be as high as $1.5 trillion this year and may reach

$3.2 trillion by 2017, according to Juniper Research.

4.2

Mobile ticketing andmobile loyalty schemes


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The economics and role o loyaltyCapturing a transaction, however, is not enough or

long-term success. Once you have your rst sale,you want to make sure that you keep your customer

and oster loyalty. Having a well thought-out

approach to loyalty is very important. Studies have

shown that consumers see loyalty programmes as

part o their brand relationship and that they aect

how, when and where they make a purchase.

Like commerce, relationship and loyalty programmes

are being completely transormed by mobile, and

consumers are ready. Maritz Loyalty Marketing

reported earlier this year that 73% o smartphone

users are interested in interacting with loyaltyprogrammes through their mobile device.

There are some really interesting ways in which

marketers are engaging their consumers through

mobile to stimulate brand anity and loyalty and

ultimately to drive sales and in many cases to reduce

costs, too. One cool example: In Ireland, Budweiser

launched the Ice Cold Index App programme stating

the hotter the day the less you pay. Consumers

that have downloaded the app get 1 o i it is 16C

outside, 2 o i it is 18C, and they get a ree beer

i it is 20C. How is that or loyalty and taking careo your customers in need? Similarly, Guinness has

created the magic behind the gates programme

to oster engagement in pubs where users just

tap their device on an NFC-enabled ount.

Others have ound success by ocusing on providing

a great customer experience. In 2011 Somo, the worldsleading mobile solutions company, helped develop

and launch an iPad app or Dominos Pizza in the

UK to create the best possible purchase experience.

Clearly, the eorts have accomplished a healthy

return on investment. By March 2012, Dominos

was taking in $1.59 million in sales via its mobile

platorms in the UK alone. Your oering doesnt

have to be complex to provide value with mobile.

To be successul in driving transactions and ostering

loyalty through mobile, its imperative that marketers

take the time to refect. They need to evaluate theirbusiness and their customers. They should talk to

their customers, listen, watch and learn, then ocus

on ullling the customers need in a contextually

relevant manner and on the customers terms. This

is what many are starting to reer to as the Omni-

channel, a commercial world with no borders and

boundaries. Mobility has transormed everything

and opened up a new world o oppor tunity.

by Michael J. BeckerMarket Development North America

and Strategic Advisor, Somo


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Business intelligence platorms or mobile apps provide

download tracking and in-app analytics to give developersand app marketers critical inormation about how to run

their businesses eectively. What does this really mean?

By collecting data and using it to deliver key

perormance indicators (KPIs) displayed on a

dashboard, app analytics aids in identiying problem

areas, understanding user behaviour, how and

where monetisation is possible and helps to make

decisions about unctionality based on specic data in

real-time. Key metrics enable comparisons between

marketing sources by revealing which marketing

source attracts what type o user and in some cases,

more importantly, how they behave inside the app.

Tracking and SDKsRecent trends reveal a market shit away rom

cost-per-click and cost-per-install as pricing

models begin to refect the growing demand

or in-depth in-app analytics through cost-per-

action pricing on user engagement. At the same

time, app analytics become increasingly more

sophisticated to cater to these campaigns.

With the app economy moving towards developing

and acquiring certain actions within an app it has

become essential to track these events as they happen,

to get a clear picture o the resulting eect they

have in terms o user engagement and spending.

For some time now, SDKs have been perceived as

a necessary evil. A poorly built SDK will crash apps,

introduce incompatibilities and may rely on techniques

that become deprecated and developers cannot

analyse these risks themselves as SDKs are oten

distributed as a closed-source binary. Choosing

an intelligent SDK, however, can provide signicant

analytics benets and rees developers rom having

to maintain tracking and data collection, allowing

them to ocus on building. Paul Mller, CTO o Adeven,

explains that while app tracking aces some resh

challenges with the adoption o the IDFA, analytics

companies have been prompted to develop even

more streamlined business intelligence platorms.

The key is that these companies know the challenges

and make it their business to solve them.

At the core o these analytics lays one rudimentary

question: What is a session and how can it be measured

accurately? Session counting is key to understanding

the changes we have discussed here, and over the

years reporting sessions in an app, and rom an SDK

in that app, have become increasingly more complex.

4.3

Tracking yourmobile destinations


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At rst it was easy: apps were either on or o , and

when the user let the app, the session was closed.

When platorms started to support multi-tasking,

these status changes became more diuse. Justbecause the app is put in the background it doesnt

mean that the session is over. With the inclusion o the

notication centre, push messages and even in-app

purchases, users increasingly fip between dierent

states such as resume, background and oreground.

Figuring out what counts as a session has become

considerably more chaotic. Adeven chose to dene a

standardised session as a continuous stream o actions

and state changes with no more than a 30-minute

gap in between. This, o course, requires analytics

to gather inormation on a variety o state changes

and events. Ensuring this data up-to-date is a job thedeveloper should not have to spend any time doing.

Developers especially preer an open-source SDK,

and or very good reasons. An open-source SDK gives

developers some security in the knowledge that they

can see exactly what they are implementing into their

app and how to work with it. Developing an intelligent

SDK that understands these denitions and aggregates

sessions in this way is no easy task. Here is where

intelligent SDKs rom dedicated analytics outts come

in, and why choosing the right SDK is a big concern.

While SDKs are indeed necessary, they are ar rom

an evil. We would go so ar as to say that the intelligent

open-source SDK can be a developers best riend.

by Christian Henschel

CEO and Co-ounder, Adeven

We are a mobile tracking company that provides

the most comprehensive business intelligence

platorm or mobile app marketing available today.

Currently headquartered in London and Berlin, we

are now expanding operations to the US market.

Coming rom an app development and publishing

background, our team created adjust.io to oer

superior download tracking solutions and post-install KPI analytics using an open source SDK. We

provide seamless integration into almost all networks,

measuring everything that an advertiser, publisher or

developer could possibly need in order to ully optimise

their marketing campaign. Our streamlined dashboard

delivers perormance reports in real-time and it does

so clearly and simply. Through our dashboard we

provide ull access to apptrace. This is a ree app store

analytics tool that gives our users complete access to

iOS app and publisher data with Play Store data soon

to ollow. Along with a sentiment analysis o reviews or

every app in the iTunes store it also provides up-to-date top lists and a unique global ranking system.

Its about empowering businesses o all

sizes to turn data into revenue.


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Good marketing is ascience and an artKPIs are essential tools to develop a good

understanding about how successul your marketing

campaign is and the areas where it requires

more attention and strategising. Additionally, the

inormation that KPIs deliver also gives the product

developers a great insight into how best to monetise

and what aspect o the app to work on more. For

apps that capitalise on in-app purchases it is critical

to have a large enough user base and dataset to

work with. Making key business decisions based on

small sample sized gures almost always provides

a distorted picture o whats actually going on.

Many app businesses separate their product group rom

their marketing group. While the product group ocuses

on improving app engagement, the marketers ocus on

the challenge o how to acquire the most valuable users.

It is important to keep in mind that optimising KPIs is

a complex science, and no one can or should give out

general advice on which one works or your product.

For some time now, the idea that marketing

and product development are in act two integral

parts o any business has been widely accepted.

However, its unortunately oten the case that gettingthe word out there is deemed an extravagance rather

than an absolute necessity. The ollowing are just some

examples o KPIs that can give you valuable inormation

to make inormed choices about your marketing spend.

Time to rst purchase

ARPU/Timespan

One-time user rate


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Time To First Purchase (TTFP)TTFP is a great way to understand the users experience

within the app and whether app unctionality is ideal orthe target you would like to achieve. Having a concrete

idea about how monetisation is and should be taking

place within the app is key to getting the most out o

your ROI. Tip: You know youre Average User Lietime

is shorter than the Time To First Purchase it would be

sae to say you should be rethinking your strategy.

Average Revenue Per UserOver Time (ARPU)ARPU is the average revenue per user generated over

a 7-day and 30-day period. It inorms the company

about when they can expect to see returns on the

money spent on marketing and user acquisition.

Its also important to know your average lietime

revenue per user, but lietime might be a very,

very long time. People may play your game or

months or even years, but the majorit y o your

marketing costs are going to be up ront, so you

need to know when you will get that back.

One-time User Rate (OTU)The one-time user rate also inamously knownas the First Day Retention shows developers and

marketeers how an app is perorming in terms

lasting app engagement. For example, a 60 percent

one-time user rate would mean that 60 percent

o your users are leaving ater one day. Needless

to say a high rate fags issues with unctionality

and even the presence o bugs and reezes.

3

0.382

72%

3

0.00

79%

Days until irst purchase

Average revenue per user

One-time user rate

0

1.25

62%

20

0.416

55%

9

0.53

67%

5

0.116

88%

11

1.45

58%

5

0.54

65%

1

1.02

76%

2

2.24

62%


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The uture omobile shopping

5

5.1 AR in mobile shopping

5.2 Mobile as the purchase

point or other media

5.3 Tablet shopping


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Augmented reality is changing the way we view

the world or at least the way its users see theworld. It is blurring the line between what is real

and what is computer-generated by enhancing

what we see and it makes or some truly

magical consumer experiences.

So, what exactly is it and how does it work? To put it

simply, Augmented Reality (AR) is a virtual layer on top

o a real-world environment, by which the virtual layer

can be seen through the camera o a smartphone

or computer. It relies on triggers, which are used to

activate the virtual experience, and usually all into

two categories. Marked triggers are when a camera

points at an image, a code, an object, or even a

ace, the virtual layer will then appear at that point

within the screen; whereas Location triggers are

Documents

The Big Mobile Shopping Handbook_1