Marketing for mobile and location-aware devices

1. Marketing for mobile and location-aware devices MBA 563 WEEK 6

2. Overview • Technologies and devices that we associate with mobile • Mobile usage stats • Mobile Payments • Location based marketing • Mobile advertising • Apps versus HTML5 • Virtual experiences • Virtual worlds and virtual goods

3. Definition of mobile marketing • Mobile Marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through and with any mobile device or network. • Mobile Marketing Association • http://www.mmaglobal.com/news/mma-updates-definition-mobile-marketing

4. What does this definition mean? • The “set of practices” includes “activities, institutions, processes, industry players, standards, advertising and media, direct response, promotions, relationship management, CRM, customer services, loyalty, social marketing, and all the many faces and facets of marketing.” • To “engage” means to “start relationships, acquire, generate activity, stimulate social interaction with organization and community members, [and] be present at time of consumers expressed need.” Furthermore, engagement can be initiated by the consumer (“Pull” in form of a click or response) or by the marketer (“Push”). • http://www.mmaglobal.com/news/mma-updates-definition-mobile-marketing

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

6. Devices – trend towards convergence • Mobile phones and Smart phones • Tablets • PDAs • mp3 players • Cameras • Remote controllers • GPS devices for navigation • eReaders • Smart watches • Wearables such as Google Glass, SmartWatches • Fitness trackers (Fitbitetc) – “quantifiable self”

7. Attributes of mobile technology • Personal, intimate devices (often always with us) • Data, information, connectivity available anytime and anywhere • Information at our fingertips (literally) • Move towards touchscreens? • Amplifies the expectation and demand for instant information in appropriate formats • Gives location-sensitive data much more value

8. Mobile has a clear impact re time online http://www.comscore.com/Insights/Blog/Theres_a_20_Billion_Pot_of_Gold_at_the_End_of_the_Mobile_Advertising_Rainbow

9. Device ownership stats from Pew: January 2014 • 90% of American adults have a cell phone • 58% of American adults have a smartphone • 32% of American adults own an e-reader • 42% of American adults own a tablet computer http://www.pewinternet.org/data-trend/mobile/device-ownership/

10. Device ownership over time http://www.pewinternet.org/data-trend/mobile/device-ownership/

11. Smartphone and tablet usage • Pew Internet research on mobile usage • 67% of cell owners find themselves checking their phone for messages, alerts, or calls — even when they don’t notice their phone ringing or vibrating. • 44% of cell owners have slept with their phone next to their bed because they wanted to make sure they didn’t miss any calls, text messages, or other updates during the night. • 29% of cell owners describe their cell phone as “something they can’t imagine living without.” • Demographic data about mobile usage (from Pew) • Multi-platform consumption is the reality: 1 in 3 online minutes is spent on a mobile device 2013 Mobile Future in Focus (Comscore)

12. Smartphone and tablet demographics

13. What do people use their phones for? http://pewinternet.org/Reports/2013/Cell-Activities.aspx

14. Smartphone versus tablet usage

15. US smartphone operating systems 2013 http://www.nielsen.com/us/en/newswire/2013/mobile-majority--u-s--smartphone-ownership-tops-60-.html/

16. Smartphone o/s (Worldwide) http://www.idc.com/getdoc.jsp?containerId=prUS24108913

17. Trends in mobile marketing • Money transfers and payments (mobile commerce, mobile banking, near-field communications (NFC) • Location-based services (LBS) and iBeacon (Bluetooth Low Energy) • Mobile advertising • Apps or browser-based service? • Augmented reality

18. Mobile payments

19. Phones as virtual wallets using near-field communication (NFC) • The pace of technological adoption: the U.S. payments example. It took: • 28 years to reach 100 million mag-stripe credit card accounts. • 12 years to reach 100 million debit accounts. • 7 years to reach 100 million PayPal accounts. • It is projected that it will take only: • 5 years to reach 100 million contactless credit/debit cards. • 2–3 years to deploy 100 million NFC-enabled (near field communication) mobile handsets 3. • http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02518.html

20. NFC - definition • Near field communication (NFC): a short-range wireless communication technology using radio frequency waves. Enables data to be exchanged between devices separated by a few centimetres. • Some uses • Transit tickets (phone = ticket) • Boarding passes for air travel • Phone to phone file sharing • Tap / wave to pay http://lexicon.ft.com/Term?term=near-field-communication • Apple devices don’t support NFC (yet?). Use proprietary technology

21. Mobile payment examples: bridging the physical and digital worlds • Making payments • Google Wallet (Android phones only) – tap to pay using NFC, plus online payments • Google Wallet vs. Square Wallet vs. PayPal: a mobile wallet field test (video) • Accepting payments • Square Register – an opportunity for accepting credit cards without a merchant account (and pretty much anywhere) • PayPal Here – very similar to Square video to show how it works

22. Location-based marketing

23. Location-based services and check-ins • Pew Internet research (2013) 74% of adult smartphone owners ages 18 and older say they use their phone to get directions or other information based on their current location. • Among adult social media users ages 18 and older, 30% say that at least one of their accounts is currently set up to include their location in their posts. • 12% of adult smartphone owners say they use a geosocial service to “check in” to certain locations or share their location with friends, down from 18% in early 2012. • Among these geosocial service users, 39% say they check into places on Facebook, 18% say they use Foursquare, and 14% say they use Google Plus, among other services.

24. Marketing uses of location-based devices • Coupons-in-the-moment • Maps with information about local businesses • Apple iBeacon • iBeacons are small devices that transmit data via Bluetooth Low Energy. iOS devices can detect these signals as well as transmit data as iBeacons. When within range of an iBeacon, events like push notifications and server calls can be triggered inside apps • How iBeacon works (first 10 minutes of video)

25. Mobile advertising

26. Issues for mobile advertising • “Fat finger syndrome” • Low tolerance on mobile, so monetization is still a problem (although Facebook looks ok now – July 2014 figures) http://www.comscore.com/Insights/Blog/Theres_a_20_Billion_Pot_of_Gold_at_the_End_of_the_Mobile_Advertising_Rainbow

27. The opportunity…mobile ad spend lags behind mobile engagement http://www.comscore.com/Insights/Blog/Theres_a_20_Billion_Pot_of_Gold_at_the_End_of_the_Mobile_Advertising_Rainbow

28. Trends in mobile advertising • Different strategies for different devices because of different usage patterns? • Typical 30 second video ad model doesn’t fit - brands will create different length ads according to the medium eg. Instagram (max 15 seconds) and Vine video (max 6 seconds) • Traditional banner and MPU (mid-page unit) ads will be used less and replaced by rich media • Quality not quantity in terms of views more important. Cost per engagement (CPE) is a better measure http://www.theguardian.com/media-network/ebuzzing-partner-zone/mobile-advertising-trends-2014

29. Apps versus browser-based marketing on mobile

30. HTML5 versus native apps for mobile • HTML5 is a technology that allows the use of rich apps that run on any device via a standard web browser • Advantage of HTML5 • Build once and deploy to many mobile devices. Native apps need to be built separately for each mobile OS • No apps to download (reduces friction)

31. Comparison between HTML5 and native apps http://www.businessinsider.com/battle-between-html5-vs-native-apps-2013-77

32. Brainstorming opportunities for mobile • Products and services for mobile? • Promotions via mobile? • Think of as many as you can, then think about the marketing challenges you might face. • The 2013 Mobile Winners Gallery (Smartie Awards) might help you get some ideas

33. Virtual experiences

34. Distinguish between augmented reality and virtual reality • Augmented reality is the addition of a layer of data/information (text, video, audio etc) to the physical world in real time (most usually done with a smart phone or tablet). • Virtual reality is a computer generated simulation of the real world or a fantasy world that the user can interact with (usually) in real time.

35. Augmented reality (AR) as a mobile strategy • “Augmented Reality (AR) is an environment where a real life is enhanced by virtual elements in real time. The purpose of AR is to enhance the information we naturally receive through our five senses, by adding superimposed, constructed virtual elements to bring complementary information and meaning that may not be possible to see by natural means. ” http://augreality.pbworks.com/w/page/9469035/Definition%20and%20key%20information%20on%20AR

36. QR Codes • QR (Quick Response) codes -Primitive version of augmented reality – really just a bridge between the physical and the virtual • Uptake is quite low (need to download an app) • Poorly executed usage (no value for the effort) • They are unsightly and compete for space on packaging, billboards, print media etc • Easy to create • Some examples of creative marketing uses

37. True AR • Augment print or other physical media and actual places with digital content eg. Layar and Aurasma • TED talk showing how Aurasma works (uses image recognition as the trigger) 8 minute video • Users need to download an app, but the experience is much more rewarding than QR codes • The physical element that is being augmented does not have to be altered at all – image recognition does the work and triggers the data layer • Still pretty cutting edge so has the novelty advantage for a campaign

38. Some AR examples • AR can be used in advertisements, billboards, magazines etc and simply by “recognition” of physical objects such as buildings • Also tied to location based sensing • The Airwalk invisible pop-up store • Ikea’s 2014 catalog lets you see the furniture in your home • Disney example of AR in children’s book • Google’s Ingress game recognizes historical landmarks

39. Hands on exercise – if you want to experiment • Create a QR code and provide it to others to scan – I used Kaywa (kaywa.com) You will need to download the kaywa app or another QR code scanner app • Create an augmented reality demonstration using Layar (layar.com). You will need to download the free layar app. • When you publish your layar, select the FREE (ad supported) option

40. Virtual worlds and virtual goods

41. A new arena for marketing? • Virtual worlds/MMOs –registered accounts broke 1 billion in 2010 • Virtual worlds by sector Q1 2013 (Slideshare from Kzero) • Virtual currencies • Second Life’s Linden dollar economy totals 43.2 billion USD in the 10 years of its existence • Facebook credits • Virtual goods – US market is about $2.9 billion in 2012 (about half from Facebook games)

42. Growth drivers: kids and tweens • Media brands: TV shows, movies etc • Music • Virtual celebrities – egHatsuneMiku (video) (what it is) • Toys and tie-ins – Webkinz, Club Penguin • Mobile payments for virtual goods

43. Growth drivers: adults • Gambling • Dating / sex • Creative platforms for user-generated content (eg. Gaming mods; clothing, houses, furniture etc for sale in virtual worlds) • Genres (eg. SciFi)

44. Virtual goods • Strong increase in value • Not just virtual worlds and MMOs • Facebook and other social networking sites – particularly the use of casual and social games • iPhone apps • Susan Woo: Virtual Goods Make Real Money (video)

45. Other industry forecasts from KZero

46. Marketing applications? • Products and product extensions • Branding • Interactive and immersive experiences • New devices like the Oculus Rift • Jacob tries the Oculus Rift (Roller Coaster) • Kzero’s blog is a good place to look for ideas and research into this marketing area