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Marketing for mobile and location-aware devices

Marketing for mobile and location-aware devices. MARK WEEK 11. 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 .

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Marketing for mobile and location-aware devices

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  1. Marketing for mobile and location-aware devices MARK WEEK 11

  2. 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

  3. 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

  4. 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)

  5. 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 • Fitness trackers (Fitbit etc)

  6. 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

  7. 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

  8. http://pewinternet.org/Commentary/2012/February/Pew-Internet-Mobile.aspxhttp://pewinternet.org/Commentary/2012/February/Pew-Internet-Mobile.aspx

  9. Smartphone and tablet usage • Pew Internet research on mobile usage • As of May 2013: • 91% of American adults have a cell phone • 56% of American adults have a smartphone • 28% of cell owners own an Android; 25% own an iPhone; 4% own a Blackberry • As of September 2013: • 24% of Americans ages 16 and older own an e-reader • 35% of Americans ages 16 and older own a tablet computer • Multi-platform consumption is the reality: 1 in 3 online minutes is spent on a mobile device 2013 Mobile Future in Focus (Comscore)

  10. Smartphone and tablet demographics

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

  12. Smartphone versus tablet usage

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

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

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

  16. Mobile payments

  17. 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

  18. 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

  19. 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

  20. Location-based marketing

  21. 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.

  22. Marketing uses of location-based devices • Coupons • Maps • Local businesses • The Dangers of Mobile Advertising (multi-layered marketing using humour)

  23. Text messaging

  24. Challenges of text messaging (SMS) • Canada’s new anti-spam legislation covers all forms of electronic communication so the very strict consent framework will apply • At the moment people look at text messages more than other types on online marketing messages (but that won’t last if usage is abused by marketers) • Traditional SMS being replaced by “over-the-top” services like WhatsApp and Viber (walled garden problem)

  25. Research on text spamming • Pew Internet 2012: complaints re use of texting by marketers • Some 79% of cell phone owners say they use text messaging on their cells. • 69% of those who are texters say they get unwanted spam or text messages. Of those texters, 25% face problems with spam/unwanted texts at least weekly.

  26. Mobile advertising

  27. Issues for mobile advertising • “Fat finger syndrome” • Low tolerance on mobile, so monetization is still a problem • Indications that some services are doing ok with mobile now • 41 percent of Facebook's $1.6 billion in Q2 2013 revenue came from mobile (but they have the advantage of a very large userbase • But Facebook Home hasn’t really got much traction • (video) Mark Zuckerberg talks about Facebook and mobile at TechCrunch Disrupt 2013 http://www.comscore.com/Insights/Blog/Theres_a_20_Billion_Pot_of_Gold_at_the_End_of_the_Mobile_Advertising_Rainbow

  28. 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

  29. 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

  30. Apps versus browser-based marketing on mobile

  31. 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)

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

  33. Augmented reality

  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. Layarand 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. SomeAR 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. 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

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