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Mobile Distribution No, It’s Not Billboards and Neon Vacancy Signs Robert Cole Founder, RockCheetah rockcheetah.com/blog

Mobile Distribution - No it's not Billboards and Neon Vacancy Signs

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Mobile DistributionNo, It’s Not Billboards and

Neon Vacancy Signs

Robert ColeFounder, RockCheetahrockcheetah.com/blog

HITEC 2010 - Mobile Distribution

Presentation Overview

• Why Mobile is Important• Why Mobile is Challenging• Why Mobile Travel is Complicated• Mobile Web v. Mobile Apps• Mobile Business Considerations• Mobile Development Considerations• Location Based Services• Disruptive Mobile InnovationsJune 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 2

HITEC 2010 - Mobile Distribution

In the Good Ol’ Days…

Billboards Vacancy Signs

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 3

Mobile Distribution Was Pretty Much Limited to:

and

Image Credit: BGLewandowski on Flickr | 28flavors on YouTube

HITEC 2010 - Mobile Distribution

Then, the Internet Changed Everything

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · 4

Image Credit: Thomas Hawk on Flickr

HITEC 2010 - Mobile Distribution

15 Years Later, Mobile Changes It All Again

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 5

HITEC 2010 - Mobile Distribution

Why Mobile is Important

• Extends Most Important Web Attributes– Device Follows the User – Mobile– GPS Provides Geographic Context - Local– Supports Many Forms of Communication – Social– Devices are Typically Not Shared – Personal

• Smartphones Extends the Senses– Sight (Camera)– Sound (Microphone)– Feeling (Touch-screen)– Balance (Accelerometer)

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 6

HITEC 2010 - Mobile Distribution

Google’s Perspective on Mobile

Google’s New Credo:Mobile First

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · 7

HITEC 2010 - Mobile Distribution

Why Mobile Can Not Be Ignored

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 8

Smartphone use is on the rise. Mobile web adoption is ramping up 8x faster than Internet in the mid-90s.

In the Travel vertical, purchase intent on Mobile ads is 5x higher than on

desktop ads.

Mobile Travel bookings are projected to grow 700% in 2 years.

12/313/31 7/1 10/1 1/1 4/1 7/1 10/1 1/10

500

1000

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Mobile travel searches

$20M2008

$160M 2010 Projection

Data Sources: : Forrester, 2009. Google Internal Data, February 2010. InsightExpress, February 2010. PhoCusWright, January 2010

HITEC 2010 - Mobile Distribution

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New Devices Impact Mobile Hotel Queries

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 9

iPhone

iPhone 3G

Android G1Blackberry Storm

Palm Pre

iPhone 3GS

Android myTouch

Android Nexus One

Moto Droid & ErisGoogle Mobile “Hotel” Category Query Growth

Device Launches

Significant Growth in 3 Years

Data Source: Google Internal Data

HITEC 2010 - Mobile Distribution

Mobile Advertising & Booking is Real

• Google / Vegas.com Case Study– Click-through rates may be a lot higher for mobile ads than desktop– Impressive returns on the iPhone with campaign CTR nearing 20%

• Google Travel Booking Recommendations– Purchase intent on Mobile Travel ads is 5x Higher than desktop ads– Target efforts

• Drive-up bookings• Incremental night stays• Last minute flight changes

– Highlight promotions– Motivate consumers to interact and spend with your brand

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 10

HITEC 2010 - Mobile Distribution

Need More Convincing?

• Apps Work Well for Highly Engaged Users– 25% of iPhone & Android Users 2 hours per day on Apps– Booking Functionality is Expected by Consumers– Support Branded Assets by Driving Downloads & Usage

• Let Travelers Use The Phone!– Adding Phone Number to Ad Text Increased CTR 5-30%!– Google Mobile Calls 22% More Likely to be Relevant &

31% More Likely to Result in Booking than calls other lead sources

– 1 Out of 3 Mobile Searches Has ‘Local Intent’

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 11

HITEC 2010 - Mobile Distribution

Mobile Travel Booking Is Different

• Booking Window is Shorter. More Last Minute• Search Queries are 2-3 Words• Requires Create Mobile Landing Pages for SEO• Separate Campaigns Required for Mobile

– Must Reflect Different User Behaviors• Geo-location is Important, but not Everything

– Time of User Access is Important– Lunch-time / Evening

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 12

HITEC 2010 - Mobile Distribution

Travel Process is More Complex -Impacts Traveler Goals & Perceptions

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 13

Guest’sPerception of Web/Mobile

Travel Experience

Source: RockCheetah Proprietary , Seven-Step Travel Process

HITEC 2010 - Mobile Distribution

Guest Relationship is More Complex -Multiple Traveler Personas

• Individual Maintains Same Demographic, but• Purpose of Travel Dictates Decision Processes• Multiple Traveler Personas Exist

– Business Meeting– Industry Conference– Family Vacation– Romantic Getaway– Weekend with College Friends

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 14

HITEC 2010 - Mobile Distribution

Hotel Distribution Channels Shifting

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 15

HITEC 2010 - Mobile Distribution

Please, Let Them Book the Reservation

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 16

Data Source: iPerceptions 4Q09 Hospitality and Tourism Industry Report

HITEC 2010 - Mobile Distribution

Mobile Challenges – Fragmentation

• Siloed Operating Systems– Apple iOS v. Google Android v. BlackberryOS v.

Symbian 3 v. Windows Phone• Different Hardware Capabilities

– Varied Power, Features & Screen Sizes• Mobile Web v. Apps

– Provide Different User Experiences• Politics v. Rich Internet Applications

– Flash / Silverlight / HTML 5 & H.264June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 17

HITEC 2010 - Mobile Distribution

Technology is More Complex - Welcome to the Splinternet*

• Golden Age of the Web Ending– Information Sharing Was Based on Compatible Formats

• Now, the Age of Walled Gardens– Content Controlled by Platform Owner– Content Hidden From Search Engines by Passwords

• Apple – iStore– Excludes Flash Applications– Bars Google AdMob Advertising

• Facebook – Friends & Likes– Social Graph Exists Only After Facebook Login

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 18

*Term “Splinternet” coined by Josh Bernoff, Forrester Research Senior VP - Idea Development

HITEC 2010 - Mobile Distribution

SplinternetPlatform Characteristics

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 19

Source: Forrester Research

HITEC 2010 - Mobile Distribution

SplinternetAd & Experience Characteristics

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 20

Source: Forrester Research

HITEC 2010 - Mobile Distribution

Operating System EvolutionInnovation or Fragmentation?

• Android – One Year Old / 4 Different Versions– Version 1.5 – 24.9% Share– Version 1.6 – 25.1%– Version 2.1 – 50.0%– Version 2.2 – Available for Nexus One

• Google Approach“Google treats partners equally, but will not slow the rate of innovation so weaker players can keep up”“By constantly raising the bar, both in terms of reference devices and software, Google aims to keep innovating and drive that innovation as a differentiator”“Android isn't a summer camp for handset vendors and not everyone gets a trophy for showing up”

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 21Source: Michael Gartenberg Altimeter Group

HITEC 2010 - Mobile Distribution

Mobile Web v. Mobile Apps

• Mobile Web Benefits– Open Standards– Cross Platform Functionality– No Proprietary APIs– Cross-Application Integration– No 3rd Party App Stores– No Revenue Sharing

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 22

HITEC 2010 - Mobile Distribution

Mobile Web v. Mobile Apps

• Mobile App Benefits– More Robust GUI Options– Does Not Require Online Access– Access to Phone “Senses” & Native Data– App Store Marketing Opportunities– Clear Monetization Model

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 23

HITEC 2010 - Mobile Distribution

4P’s of Mobile Strategy Development

• People– Who is the Target User?

• Purpose– What Do the Users Want to Accomplish?

• Platform– What Types of Devices Are They Using?

• Process– Define Most Efficient Navigation & Workflow

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 24

HITEC 2010 - Mobile Distribution

Most Important Questions:

• What Are Your Mobile Objectives?– Bookings– Ancillary Revenue– Customer Service

• How Can You Create Value For the Guest?– Save Time?– Save Money?– Enhance Experience?

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 25

HITEC 2010 - Mobile Distribution

Mobile Apps – Business Considerations

• Business Models– Applications – Technology (Revenue Share with App Store)– Subscriptions – Unique Content (Rev Share with App

Store)– Publishing – Advertising (Share Revenue with Ad Network)

• Monetization Methods– Free– Freemium – “Light” Version Free, “Deluxe” Version is Paid– Full Retail Price

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 26

HITEC 2010 - Mobile Distribution

Mobile Apps – Marketing Considerations

• Perfect World: Volume Drivers– Good Device– Good Network– Good Browser

• Promotion– Must Be Differentiated – Provide Unique Benefits

• Greatest Challenges– Breaking Through Clutter – Must be Found– Maintaining Engagement / Avoiding Deletion

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 27

HITEC 2010 - Mobile Distribution

iStore Page of Popular Travel Apps

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 28

• Top 20 Travel Apps• Google Earth• Free Translator• Urbanspoon• Yelp• MapQuest 4 Mobile• Trapster speed trap alerts• USA TODAY• KAYAK Flight, Hotel Search• Free Wi-Fi Finder• AppBox Lite• OpenTable• FREE Spanish Tutor• Currency• foursquare• Southwest Airlines• USA TODAY for iPad• MotionX GPS Drive• OpenTable for iPad• Cheap Gas!• CheckPlease Lite - Tip Calculator

HITEC 2010 - Mobile Distribution

Mobile Development Considerations

• REMEMBER– Your Website IS NOT a Mobile Site

• MUST– Provide Information Quickly– Focus on Specific Tasks– Direct Path to Data– Leverage Device Features

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 29

HITEC 2010 - Mobile Distribution

Mobile Functionality – Best Practices

• One-click Driving Directions– Know Phone Location / Know Destination

• Click to Talk– Provide Phone Number in Mobile Ads– Include Context Appropriate Phone Numbers

• Integrate Social Networks– Help Customers Promote Your Brand / Location

• Negotiate Development Costs Aggressively– Restaurant Group: 23 Sites = $8,000 (Orig. $37K)

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 30

HITEC 2010 - Mobile Distribution

Mobile Promos: Ground Rules Apply

• Protect Guest Privacy• Opt-In for Promotional Message Delivery• Are Offers Relevant?

– Popular or High Demand Product/Features?– Appropriate for Individual?– Provides Consumer Value?– Simple to Convert?

• Avoid Bait & Switch Offers and Trailer-plays• Provide Options to Engage Their Social Network• In Destination Engagement May Not Be Forever

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 31

HITEC 2010 - Mobile Distribution

Mobiata – StayHip (For TravelClick)

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 32

HITEC 2010 - Mobile Distribution

Can Your iPhone App Compete?

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 33

“I was in downtown Orlando for MegaCon this weekend and bid for a last minute three-star room for $75 – all while in line for a panel.”

HITEC 2010 - Mobile Distribution

A New Location, Location, Locationfor the Hospitality Industry

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 34

Image Credit: geoftheref on Flickr

HITEC 2010 - Mobile Distribution

Location Based Services

• Foursquare– Enables Free Setup & Custom Badges– Mayor, Check-In, Frequency, Wildcard Specials

• Yelp!– Monetizing Setup , Plus $300-$1,000 Monthly– Heavily Food & Beverage Oriented

• Gowalla– IHG Partnering for “HIT it Big” Promotion

• Check-in on Weekend Stay, Register for Bonuses

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 35

HITEC 2010 - Mobile Distribution

Location Based Services - Continued

• Best Prospects for Offers– Frequent Guest Program Members– Returning Guests (Non-Program Members)– First Time Guests (Not Familiar with Property)

• Types of Specials– Most Frequent Visitor (Mayorship)– Check-In (Discount / Value Add for Visit)– Frequency (Bonus for Nth Check-In)– Wildcard Offer (Special Offer for Having a Badge)

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · 36

HITEC 2010 - Mobile Distribution

Disruptive Mobile Innovations

• Yelp! Monocle - Augmented Reality– Point Camera Down Street, See Reviews

• Kayak Connect - Booking– Mobile Meta-search Gets Transactional

• Google Store Views– Google Maps Street Views Goes Indoors

• Apple iTravel– Streamlining the Travel Experience

• Openways– Innovative Mobile Door Locking System

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 37

HITEC 2010 - Mobile Distribution

Yelp! Monocle

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 38

HITEC 2010 - Mobile Distribution

Kayak Connect

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 39

HITEC 2010 - Mobile Distribution

Apple iTravel – Booking Transactions

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 40

HITEC 2010 - Mobile Distribution

Apple iTravel – Traveler Identification

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 41

HITEC 2010 - Mobile Distribution

Apple iTravel – Revolutionary Air Experience?

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 42

HITEC 2010 - Mobile Distribution

iTravel – Revolutionizing Event Merchandising

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 43

HITEC 2010 - Mobile Distribution

iTravel – Revolutionizing Conferences?

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 44

HITEC 2010 - Mobile Distribution

Openways – Doors or Distribution?

• Uses Mobile Phone as Room Key– Engages Guest Prior to Arrival / Kept through Stay

• Does not Require Replacement of Door Locks– Device Added to Existing Lock Set

• Smartphone– App Downloads Unique Audio Code From Cloud

• Feature Phone– SMS Text Message / Calls Servcer / Plays Code

• Will Support NFC in FutureJune 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 45

HITEC 2010 - Mobile Distribution

Every Innovative Mobile Ideais Not Always a Good Idea…

June 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · Page 46

HITEC 2010 - Mobile DistributionJune 23, 2010 - Orlando, Florida Robert Cole | RockCheetah · 47

What Did You Think?

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And THANK YOU for attending HITEC!

Learn how HFTP membership can benefit you, visit www.hftp.org

Robert Cole

RockCheetah LLC

[email protected]

http://rockcheetah.com/blog/