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Page 1: Strategy: Embracing Mobile

Harry Patz, JrChief Revenue Officer, NA

[email protected]

EXPERIENCEMOBILE NOVEMBER

14, 2012

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2005

Velti unveils mobile marketing software

2000

Velti is founded

2007

The iPhone hits the market

2010

Velti launches mGage, the first end-to-end mobile marketing & advertising platform

2010

Velti files IPO on the NASDAQ

2010

Velti acquires mobile ad exchange Mobclix

2011

Velti acquires mCRM powerhouse Air2Web

VELTI WAS MOBILEBEFORE MOBILE

2010

Velti acquires leading UK mobile agency MIG

2012

Velti signs largest mobile marketing deal ever for $27M

2011

Velti reaches 3.5 billion consumers across 2,700 campaigns

WAS COOL

$

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CURRENT STATETHE CHALLENGETHE APPROACHGUIDING PRINCIPLES

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EXPLOSIVE GROWTH & REACH

0

500

1,000

1,500

2,000

2,500

Mobile Internet UsersDesktop Internet Users

RAPID MOBILE INTERNET ADOPTION

Source:Morgan Stanley Equity Research

EXPLOSIVE MOBILE ADOPTIONTotal Shipments in 2011 in million

TVs PCs Mobile Phones

258357

1,550

Source:Strategy Analytics, DisplaySearch, IDC

Tremendous Mobile Phone Penetration!

SIGNIFICANT MOBILE MARKETING AND ADVERTISING

2007 2014

$1.6

$28.9

Source:ABI Research

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STATE & FUTURE OF MOBILE ADVERTISING

US MOBILE Ad SPENDING 2011-2016 Billions

2011 2012 2013 2014 2015 2016

$1.45

$2.61

$4.31

$6.46

$8.66

$10.83

Source:eMarketer – January 2012

Mobile ads perform 4-5 times better than online ads in key metrics such as brand favorability, awareness, and purchase intent. Source:HubSpot, 2012

Source:eMarketer – March 2012

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SMARTPHONE SUPREMACY & TRENDS

US SMARTPHONE PENETRATIONSeptember 2012, (%)

2009 2010 2011 2012 2013 2014

23

33

46

62

77

88

Source:J.P. Morgan based on Gartner, Sep 2012

Source:Go-Globe.com, Feb 2012

103%Increase in website traffic

from smartphones (Q2 2011 – Q2 2012)

Source:Moneta, June 2012

Of all consumers use smartphones for in-store product research & browsing 45%

Source:Google – The Mobile Playbook,, 2012

Every day smartphone

users play 570 years of Angry Birds and watch

600 million videos on YouTube Mobile

Source:Google – The Mobile Playbook,, 2012

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RISE IN MOBILE COMMERCE

67% of mobile users say that when they visit a mobile-friendly site, they're more likely to buy a site's product or

service, while 61% of customers who visit a mobile-unfriendly site are likely to go to a competitor

Sources: Google – Our Mobile Planet., iAB, 2012

Sources:Google, Our Mobile Planet

Smartphones Are an Emerging Point of

Purchase32.25

%Increase in physical good

purchases via mobile phones

from 393M in 2011 to 580M in 2014

Source:Juniper Research, Oct 2012

57% of mobile holiday shoppers consider purchasing their holiday gifts on their

mobile device, while 54% warn retailers of consequences of not providing an mCommerce app.

Sources: HubSpot, September 2012

The value of remote transactions for digital and physical goods purchased via mobile devices

will exceed $730B annually by 2017 Sources:

Juniper, August 2012

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GLOBAL MOBILE MARKETING TRENDS

FORMS OF MEDIA IMPACTING PURCHASE DECISIONS

Sources:Mogreet, Is Bigger Always Better , - Infographic

MOBILE COUPON USAGE WILL INCREASE IN 2013

THE TRUE INFLUENCE & POWER OF TEXT MARKETING

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CURRENT STATETHE CHALLENGETHE APPROACHGUIDING PRINCIPLES

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CONNECTED CONSUMERSSCREEN WORLDIN A MULTI

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AN ALWAYS- ONTO BRANDSCONNECTION

81%Browse the Internet

46%Manage Finances

43%Plan A Trip

67%Shop Online

80%Never Leave WithoutTheir Phones In Hand

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BRANDS ARE COMPETINGPOWER OF MOBILETO HARNESS THE

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GROWING CUSTOMER EXPECTIONS

RECOGNIZEDCustomers want to be acknowledged and rewarded.

INFORMEDCustomers know your products, and your competitors products.

COMPARECustomers evaluate customer service across industries.

INSTANT GRATIFICATIONCustomers are all about NOW.

VALUEDCustomers expect value from their interaction with your brand.

SOCIALCustomers are socially interconnected

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EVOLVING SERVICING TECHNOLOGIES

SOCIALSocial media is now a primary channel for communicating and servicing your customers.

MOBILEMobile bridges the social and location with personalization that was never possible before

LOCALLeverage location based marketing to target the right message in right time at the right location

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CURRENT STATETHE CHALLENGETHE APPROACHGUIDING PRINCIPLES

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A U T O M O T I V E T R AV E L E N T E R TA I N M E N T C P G O P E R AT O R SR E TA I L F I N A N C E

RETENTIONMONETIZATIONENGAGEMENTAWARENESS

MARKETING AUTOMATIONAND EVERY INDUSTRY FOR EVERY GOAL

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ENGAGEMENT CYCLE

Mobile Sites & Apps

Mobile Alerts & NotificationsMobile Ad Serving

AWARENESS

Rich Media Ad Creation

mCRM Solutions

Multi-channel loyalty solutions

Inventory Monetization

Large Scale Promotions

AWARENESS ENGAGEMENT MONETIZATION RETENTION

QR codes, Short Codes & Keywords

Mobile Community Management

Mobile Advertising

Mobile Payments

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AWARENESSSuccess Stories

Velti drove awareness for the new Prius through an immersive rich media ad unit

The ad unit allowed the audience to interact with key features and benefits of the new vehicle

AVERAGE CTR 4% vs. industry average 1%-2%

Velti helped Disney drive awareness for the opening in Hawaii called Aulani via a interactive, rich media ad unit

The ‘gamified’ ad unit encouraged users to play a game while exploring the virtual resort and learning about the amenities there

AVERAGE CTR 5% AVERAGE

TIME SPENT 3X industry average

Macy’s partnered with Velti to drive awareness for their Spring 2011 Collection by mobilizing traditional media channels via QR codes

After scanning the QR code, customers were redirected to a mobile landing site where they could watch a video of Macy’s star designers and shop the collection.

Unique visitors 48000+ AVERAGE

TIME SPENT1:40

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BRAND ENGAGEMENT

Success Stories

To provide a cross-device mobile experience showcasing Ford’s lineup. The site makes it easier for consumers to research and purchase vehicles.

The site has app-like navigation with interactivity including 360° views of vehicles, rotating cube, etc

Velti helped Levi’s launch a mobile community to increase brand awareness for Levi’s at JCPenney and develop an ongoing relationship with customers.

Incentivized sweepstakes and offers were used to recruit consumers and drive sales!

PAGEVIEWS 100M+ AVERAGE

TIME SPENT 2X industry average

RESPONSE RATE 30% RETENTION

RATE 90%

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Velti designed and built New Look’s fully transactional mCommerce site.

The site integrates into New Look’s back end systems and utilizes the latest developments in mobile technology (Javascript, CSS3 & HTML5) to offer the ultimate mobile shopping experience.

Velti developed and hosted mobile sites for various product lines to satisfy the growing number of mobile visitors, drive awareness and generate leads

The mobile optimized website provides product catalogues, product overviews, promotional offers and the ability for users to request a product info kit

From initial launch in April 2011 to July 2011

MOBILE SALES 400% REVENUE* 45% ORDERS* 60%

SALES2011-12 95% REQUEST

FOR INFO KIT 21500+CLICK

TO CALL 4000+

BRAND ENGAGEMENT

Success Stories

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MONETIZATION

Success Stories

Velti delivered a first-of-its-kind ‘gamified’ large

scale campaign in the US exclusively for T-Mobile

customers It was a free, highly engaging, text-based mobile

game that tested users’ trivia knowledge

PARTICIPANTS 1.3M MESSAGES GENERATED 60M

Half Brick monetized Fruit Ninja’s in-app inventory via Mobclix and increasde their ad revenue, while filtering out spam ads and keeping gamers engaged

Mobclix SDK was integrated into Fruit Ninja’s Android and iOS applications to serve in-app ads and monetize app inventory

AVERAGE ECPM 160% v

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LOYALTY

Success Stories

Velti helped Vodafone UK launch a loyalty program called Freebee Rewardz

For every phone top up over £5 customers received a code to redeem for instant rewards. Prizes included Vodafone Network prizes, 3rd party prizes and discounts, and a mystery Star Reward.

PARTICIPATION RATE 35% REDUCED

CHURN 20% INCREASED CONSUMPTION*

Coca-Cola partnered with Velti to deliver a ‘gamified’

cross-channel campaign to increase sales of Nestea

Promoted via traditional, digital and social media

channels, Velti developed a gamified campaign that

encouraged consumers to participate in Nestle’s Virtual

Journey marketing program

433% CODES REDEEMED 6.26

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CURRENT STATETHE CHALLENGETHE APPROACHGUIDING PRINCIPLES

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ResultsRevenue & Loyalty

PURCHASE

IN-STORE TRAFFIC

LOYALTYMEMBER

REFERRAL

INCREASED USAGE

Acquire Right Customers

MOBILE DISPLAY

Banners & Rich Media

MOBILE SEARCH

OUTDOORInteractive Billboards

PRINTQR code

enabled Print Ad

TV Commercials

with Mobile Integration

EngageRight Channels

MOBILE VIDEO

MOBILE SITE

mGAMES

APP DOWNLOAD

mSOCIAL

HOLISTIC CUSTOMER APPROACH

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DATA IS STILL THE KING

Connecting to the right user, at the right time will become a critical competitive differentiator

Develop data profiles for segmentation and targeting

Conduct multivariate testing to identify effective recruitment and engagement mechanisms, prize structures, campaign duration and timing.

Use computer-based decision making and advanced analytics to optimize campaigns in real-time

Consider your audience profile when developing apps and more advanced campaigns

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MobileWebsite

Shortcode/Phone number

Website Sponsoredevents

Package

MobileWeb

Telephony/Messaging

MobileApplications Web TV/ Radio Store Print

MediaOutdoorMedia

Rich MediaAd Unit

TV Spot

Social Gamesproduct placement

QR code enabled Print Ad

In-Store Poster

InteractiveBillboard

8080080800

Something cnged today. SODA bottles are now coming with hidden codes under the cap. Redeem the codes to collect points and win cool prizes!

MULTI-CHANNEL APPROACH

Med

ia

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MobileWeb

Telephony/Messaging

MobileApplications Web TV/RadioStore/package Print

MediaOutdoor media/

Events

Registration+10 points

Profiling question+30 points

Trivia game+20 points

Social Media referral post+40 points

Event booth check-in+50 points

12

3

4

5

23 Personalized challenges +80 points

Exclusive Rewards+100 points

24

8080080800

Thanks! You now have 50entries! Do you know which famous actress starring in our TV spot? Reply with A) M.Fox or B) C.Theron for 20 bonus entries

Congratulations! You now have 70entries

CXV5342445

A

Inte

ract

ion

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Resu

lts

Redemption Rate: 25%-35%

Participation: 50% -70%

Revenue /Customer: 10%-15%

Reduced Attrition: 15%-25%%

Consumer profileConsumer profile

Reduced ServiceCost

Increased Usage

2-4%

MobileWeb

Telephony/Messaging

MobileApplications Web TV/RadioStore/package Print

MediaOutdoor media/

Events

4-5%

%4.3 m2.1 m

0.7 m

1.4 m 0.9 mMobile Web

Messaging

Mobile App

Web

Sponsored Events

45 %Mobile Web

32 %Messaging

18 % Web

3.5 %Mobile App

1.5 %Sponsored Events

Cross / Up Sell

4-5%

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“The phone is a no longer the phone, it’s your alter ego. It’s the extension of everything we are”

Eric Schmidt Executive Chairman Google

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MARKETING SOLUTIONSACROSS THE MOBILE SPECTRUM

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IT’S BEENA PLEASURE

Be sure to visit www.velti.com for more information and to read our blog on mobile marketing insights

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A GLOBAL MARKETPL ACESERVING CUSTOMERS AROUND THE WORLD

South America

Brands

Operators

Africa

Operators

North America

Brands

Agencies

Europe

Brands

Agencies

Asia

Brands

China


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