Mobile is My New How Marketers Can Connect With Today's Mobile Consumer - Point-of-View Publishing

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Mobile is My New
How Marketers Can Connect
With Today’s Mobile Consumer

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Mobile Has Hit Critical Mass
Mobile isn’t new, but continues to evolve and delight. The iPhone recently celebrated its fifth anniversary.
The announcement of the iPhone 5 generated 6 million searches in a single day. And today, one in four
smartphone owners use a tablet and one third of non-computer traffic is from tablets.

                        U.S. Smartphone Owners
  150,000,000                                                                                  5% Other
                                                                          Tablet
  120,000,000
                                                                          34%
   90,000,000

   60,000,000                                                                                       Mobile
                                                                                                    61%
   30,000,000

            0
             Jul 07    Jul 08   Jul 09   Jul 10   Jul 11   Jul 12

                                                                           U.S. Share of Non-Computer
                                                                                 Traffic by Device

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Background
For years, we've heard that “this is the year of mobile" yet marketers have been slow to adapt. Today, more
than 50 percent of U.S. adults* own smartphones and nearly 30 percent own tablets. Now is mobile's time.

At SAY Media, we have seen this growth firsthand, developing and executing more than 1,000 mobile
campaigns for clients globally. To gain a better understanding of the mobile media landscape, SAY conducted
a qualitative and quantitative study with consumers and marketers.

We set out to learn
Why are consumers so enamored with their mobile devices?

What role do these devices play in their personal and professional lives?

 And more importantly
 How can marketers best leverage the intimacy and dependence that consumers have with mobile?

                                                                                             *Source: Nielsen Mobile Insights, February 2012
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Study Objectives
Understand consumers’ relationships with their mobile devices;
Better understand how marketers can leverage mobile platforms

Qualitative Research

8 consumer groups with        Custom online survey of      Analysis of 100+ recent
mobile-forward users in SF    1,209 smartphone owners      SAY Mobile campaign
and NY                                                     performance by creative
                              Behavioral data from         components
1-on-1 interviews with 30+    Mobile Metrix, Mobilens,
digital marketers             and Tablens

1-on-1 interviews with 5
technology thought leaders

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What We Heard
The relationship is intimate: Consumers have a very close relationship with their
mobile devices. In our groups, mobile users described this connection.

                          Mobile is my new… Partner in Crime
                                            Constant Companion
                                            Committed Relationship
                                            Spiritual Advisor

Mobile empowers: This intimacy is based on what mobile devices enable
consumers to do, both personally and professionally.

                       Mobile allows me to… Live in the Moment
                                            Maximize My Life
                                            Socialize and Build Friendships
                                            Live that Lovely, Fast-Paced Life

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Mobile Is My New
There are four emerging ways mobile empowers consumers beyond communication: consuming media,
providing a path for personal success, evolving the shopping experience, and effectively blending work and
home life. These four areas are where we observed significant innovation.

           Media Hub                Life Coach               Shopping                 Personal
                                                            Companion                 Assistant

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Mobile As the Media Hub
Mobile is quickly augmenting and replacing traditional media for news, entertainment,
and acting as consumers’ personal playlist and music discovery tool.

Video Content                          Music                                  News

                                                                                        2 in 3 smartphone
            stream TV on their                    stream music on their
 50%        mobile phones               57%       mobile phones
                                                                                        owners have accessed
                                                                                        news on their phone;
                                                                                        half in past month

            watch or post video on                1 in 3 M18-24 stream
 63%        mobile device                         music on their mobile
                                                  device weekly
                                                                                        use news aggregation
                 avg hours per week                                                     apps on their phone;
                 spent watching
                                                                              28%
  5     4                                                                               50% among M25-34
                 video on mobile
                 device

                Say Media’s Perspective: Extend your ad campaigns to mobile devices and
                     leverage media partnerships that can deliver relevant content.

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Mobile Is the Primary
News Source
Consumers use their mobile devices to stay informed and connect with their passions. One in
three people (and half of people 18-24) get the majority of their news on their mobile device.

                                     % Accessing News on Their Mobile Device
 68

              58         56           57
                                                    53
                                                              49
      46                                                                46
                                                                                    42
                    39                                                                        38             38
                              34           33
                                                         28
                                                                   25         23         21          20
                                                                                                                   17

  World/        Sports   Business   Entertainment    Tech      Food     Home/       Fashion   Gaming            Pets
 National/                                                              Lifestyle
  Local
                                                                                              Ever        Last week/month

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Mobile Tracks Our Lives
      Consumers use their mobile devices to not only track, but also improve their personal and
      professional lives. Half of consumers 18-24 track exercise and finances on their mobile
      devices; they are truly the quantified generation.

Fitness pal is awesome. It is a                                                                               We have some serious
great way to coordinate your                                                                                  sleep issues in our
calories with your activity.                                                                                  family ... The tracking
                - Nefertiti, 32, NY                                                                           apps sort of validate me.
                                                % Using Their Mobile Device by Activity                              - Stephanie, 34, SF
                                                               P18+   P18-24

                        55%             48%             52%             51%               50%               48%

                        36%             54%             35%             33%               35%               41%

                    Record Exercise   Meeting Notes    Record Food    Track Personal   Track Day to Day   Track Finances
                                                         Intake           Health          Expenses

                   Say Media’s Perspective: Brands can create a movement around personal challenges
                   with mobile advertising, applications and a defined goal to create awareness, deepen
                                          relationships and extend their brands.

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Mobile Is Used Throughout
the Purchase Process
From research to offline and online transactions, mobile devices are changing the way
consumers interact with products and brands throughout the purchase process.

                                                                                     “By using LevelUp, I don’t have to visit
                                     % Who Have Conducted This Activity on           an ATM machine, there are no receipts,
                P18+    P18-24
                                     Their Mobile Device in the past 6 months        which is better for the environment,
                                                                                     and I don’t have to carry cash with me.”
               64%                                                                                                - Erin, 23, SF

                                   63%
                                                     58%
                                                                        53%
                                                                                             48%

               61%                 48%               44%                30%                  37%

         Research Products       Redeem Offer     Purchase Goods    Mobile Payment       Validate Price
                                                                     Through App         Point at POS

         Say Media’s Perspective: Marketers need to think about mobile at each stage of the
          purchase funnel, from building awareness to point of sale to fostering advocacy.

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Mobile Enables A Blended Life
 Mobile enables both personal productivity during the work day and work productivity
 from home. Surprisingly, workers believe that their mobile devices more positively
 impact their work/life balance.                                                       “It helps blend professional and
                                                                                       personal life in a way that’s
                                               % Agree with this Statement:            manageable.”
                                                                                                             - Holly, 40, SF
                                              Because of My Mobile Device…

     It’s easier to get work done before
                    getting into the office                     47%                    33%                 21%
   I am more productive because I can
work from home after leaving the office                          49%              29%                    22%
     It’s easier to take care of personal
                     tasks during the day                         50%                  30%               20%
   It’s easier to take care of work tasks
                    when out of the office                         52%                   31%                18%
                    I am more stressed
                                                24%                    33%                                43%
                                                                               Agree          Neutral          Disagree

     Say Media’s Perspective: Traditional media flighting against work/life needs to be reconsidered.

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Insights and Implications
                                                         Due to consumer’s intimate relationship with
                                                         their devices, marketers need to carefully
                                                         consider the mobile interaction between ads,
                  Mobile media consumption has           applications and content
                  reached critical mass for news,
                  video and music across topics          The role of sharing within and across social
                                                         applications has greatly influenced how people
                                                         discover and consume content

                  Consumers are empowered by
                                                         More than ever, marketers have the ability to
                  services that deliver utility across
                                                         develop services that align and extend their
                  many aspects of their lives and
                                                         brand to provide power and utility to their
                  transform them by offering a path to
                                                         audience
                  success

                                                         Brands need mobile-optimized sites to aid at
                                                         every stage in the purchase process
                  Mobile devices now play a
                  strong role at every stage of
                  the purchase process                   Location-based campaigns should be leveraged
                                                         to build awareness, support promotional
                                                         opportunities and increase consideration

                  We live in a blended life where
                                                         Messaging that reflects the blended life can
                  there’s less separation between
                                                         show consumers that brands understand them
                  activities at work and home

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Making Mobile Work Harder
What Marketers Can Learn
from Say’s Mobile Campaigns

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Making Mobile Work Harder
SAY Media created a database of more than 100 recent campaigns (and nearly 500 different
ad units) with every creative element and product category. We conducted a meta-analysis
on key performance metrics to help marketers understand what is working on mobile.

            Mobile can get consumers into the                            Average click to site (CTS) was 3 to 5 times higher than
            marketing funnel faster                                      that of online campaigns*

            Product exploration enhances                                 Campaigns which include product exploration
            curiosity                                                    elements** had 3 times higher average CTS

                                                                         For automotive and technology campaigns, the inclusion
            Video drives time spent                                      of a video increased time spent by 28% and 32%,
                                                                         respectively, compared to units without a video

            Too many videos can cause                                    Average CTS for mobile ads with one video was .22%
            diminishing returns                                          compared to .14% for ads with three videos

      Point-of-View             *Mobile campaigns were compared to their analogous online campaigns. These campaigns contained the same creative components
      Publishing                **i.e., mapping, lookbooks, and product carousel (compared to mobile ads which did not include these elements)
Making Mobile Work Harder:
  Implications
 Video drives time spent              For automotive and                                      Including video in mobile ad units can be a
                                      technology campaigns, the                               powerful tactic to increase branding and
                                      inclusion of a video                                    drive further engagement
                                      increased time spent 28%
                                      and 32%, respectively,
                                      compared to units without
                                      a video

  Too many videos can                   Average CTS for mobile                                Don’t try to do too much on a small
cause diminishing returns               ads with one video was                                canvas; simplify the options to drive lower
                                        .22% compared to .14%                                 funnel metrics
                                        for ads with three videos

                   Say Media’s Perspective: 2/3 of consumers watch video on their devices.
              Device capability is another form of native advertising that marketers should utilize.

           Point-of-View     *Mobile campaigns were compared to their analogous online campaigns. These campaigns contained the same creative components
           Publishing                          **i.e., mapping, lookbooks, and product carousel (compared to mobile ads which did not include these elements)
Making Mobile Work Harder:
   Implications
   Mobile can get                     Average click to site                                 Simplified mobile ad experiences and strong call
 consumers into the                   (CTS) was 3 to 5 times                                to action make mobile work harder
marketing funnel faster               higher than that of online
                                      campaigns*                                            Create mobile optimized sites and quick links to
                                                                                            apps; if first click experience is sub-par, it will be
                                                                                            hard to get users to explore other mobile offerings

 Product exploration                  Campaigns which include                               Branding works on mobile
 enhances curiosity                   product exploration
                                      elements** had 3 times                                Showcase visceral images and take advantage of
                                      higher average CTS                                    native mobile features (e.g., swiping through
                                                                                            product carousels)

                                                                                            Provide mapping ability to drive transactions

                           Say Media’s Perspective: Consumer’s intentional relationships with
                                 devices lends well to cost-per-engagement marketing

           Point-of-View         *Mobile campaigns were compared to their analogous online campaigns. These campaigns contained the same creative components
           Publishing                              **i.e., mapping, lookbooks, and product carousel (compared to mobile ads which did not include these elements)
What Is... The Future of Mobile
Mobile media is ubiquitous today, yet nobody knows exactly how it will evolve in the coming years. Consumers
look forward to using their mobile wallet and marketers are experimenting with near field communication and
location-based approaches. However, there is still the opportunity for the next big mobile disruptor to emerge.

“I should be able to do my          “Mobile marketing will become location-         “What makes all this really interesting, is someone
laundry with it. I don’t want       based marketing. Talking about smart cockpit    building something native to the environment that
to have to go get quarters. I       of an auto. Walking around store and pull out   disrupts everything that came before it. Just like
want to be able to tap my           device. Show best in class with connecting      Microsoft built an OS that was native to the personal
smartphone up to the                with consumers throughout their lives as they   computer, disrupted IBM. Google built a search
laundry machine and debit           move about the planet.”                         experience which was native to the Web, and disrupted
my account by $2.00.” -             - Brian Monahan, Managing Partner, MAGNA        Microsoft. Facebook built a social experience which
Adam, 30                            Global                                          was native to Web 2.0, and that disrupted Google. And
                                                                                    now it’s mobile...”
                                                                                    - Peter Rojas, Co-Founder, gdgt
                      “The catalyst for the change in mindset will
                      be adoption and penetration. We need to
                      deliver very interesting ad formats that                                             “There’s nothing that I carry in
                      leverage the unique capabilities of mobile.”                                         my wallet that I shouldn’t be
                      - Matt Houltham, Managing Director, Naked                                            able to do on my smartphone.”
                      Communications                                                                       - Libby, 24
Coming Soon...
We will release more research (and videos) on the following mobile trends:

Mobile is the New... Shopping Companion
Mobile is the New... Personal Assistant
Mobile is the New... Life Coach

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Get in touch

David Tokheim, SVP Media Solutions
dtokheim@saymedia.com

Julia Kirkpatrick, Research Manager
jkirkpatrick@saymedia.com

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