2011 mobile marketing outlook

8/6/2019 2011 Mobile Marketing Outlook

1/48


2/48

Mobile Marketer covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer

Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com, Classic Guides

webinars, the Mobile Marketing Summit and the Mcommerce Summit and awards. 2010 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission

401 Broadway, Suite 1408

New York, NY 10013

Tel: 212-334-6305

Fax: 212-334-6339

Email: [email protected]

Website: www.MobileMarketer.com

For newsletter subscriptions:

http://www.mobilemarketer.com/

newsletter.php

For advertising:

http://www.mobilemarketer.com/cms/

general/1.html

For reprints:

[email protected]

Mickey Alam Khan

Editor in Chief

mickey@

napean.com

Giselle Tsirulnik

Senior Editor

giselle@

mobilemarketer.com

Dan Butcher

Associate Editor

dan@

mobilemarketer.com

Rimma Kats

Editorial Assistant

rimma@

mobilemarketer.com

Jodie Solomon

Director, Ad Sales

ads@

mobilemarketer.com

CONTENTS

PAGE

3 EDITORS NOTE: Mobile steamroller transormscontent, commerce and marketingBy Mickey Alam Khan

6 Traditional ad networks will clamor to join mobile

ecoystemBy Giselle Tsirulnik

8 Mobile ad spend to increase noticeablyBy Giselle Tsirulnik

11 Mobile tops agenncy priorities to meet client needsBy Dan Butcher

14 Associations look to support mobile marketersBy Dan Butcher

16 Majority o consumers to make use o mobile banking

in 2011By Rimma Kats

17 Verizon getting the iPhone will afect all carriersin 2011By Dan Butcher

19 Anytime, anywhere easy shopping to be commonplaceBy Giselle Tsirulnik

21 Brands advertising mobile content will have advantageBy Rimma Kats

23 Brands will develop deeper relationships via mobiledatabases/CRMBy Rimma Kats

25 Email is all about contextual relevance or mobileconsumersBy Dan Butcher

PAGE

27 Gaming moves rom dedicated devices to mobilephones, tabletsBy Dan Butcher

28 Legal analysis: Governing by putting a square peg a

round holeBy Andy Lustigman

31 Diferentiation will be more o a challenge or OEMsBy Dan Butcher

32 Having a cross-platorm mobile strategy tops publisheto-do listBy Rimma Kats

34 SMS calls to action will be all over traditional mediaBy Giselle Tsirulnik

36 Artists rely on mobile to make live music events

more engagingBy Rimma Kats

38 Top mobile stats to remember in 2011By Giselle Tsirulnik

40 Mobile SEM to become key aspect o all multichanneefortsBy Giselle Tsirulnik

42 Mobile social networking: location, location, locationBy Giselle Tsirulnik

44 Mobile technology to augment what consumers do in-storeBy Rimma Kats

46 Expect testing o mobile TV/video monetizationmodelsBy Rimma Kats

PAGE 2 Mobile Marketer MOBILE OUTLOOK 2011


3/48

EDITORS NOTE


Mobile steamroller transorms content, commerce and marketing

While projections on mobile advertising still cant betrusted sae to say that brands will spend more than$1 billion on display, rich media, search and text ads one thing can be said or sure: 2011 is mobiles yearto lose.

As editors and reporters Giselle Tsirulnik, Dan Butcher andRimma Kats so ably demonstrate in Mobile Marketers Mo-

bile Outlook 2011, all acets o mobile marketing are gain-ing currency with brands, ad agencies, publishers and re-tailers. Thank-you to them and art director Rimma or thisClassic Guide that should be read cover to cover.

O course, or all the enthusiasm about mobile, budgets arestill not where they need to be.

Ater all, it is expected that sometime this year or next, oneout o two subscribers nationwide will have smartphonesenabled with Internet and applications. Just imagine how

that will change consumption o content and marketing,communications and conduct o commerce.

Marketers will get religion. As reported daily in MobileMarketer and sibling publication Mobile Commerce Daily,the nations leading brands are now increasingly bringingmobile to the ront o the bus.

Marketing needs to be where consumers are, and consum-ers are conducting much o their work, play and personallives on mobile devices, be it phones or tablets.

So here are some trends and inuencing brands seen romthis perch in mobile and the overall digital space:

Social networking: Facebook will cross 700 million users.While social networking is now ingrained communicationsbehavior, the jurys still out on Facebooks ability to mon-etize. It is hard to see a networking audience buy rom astore on Facebook, but who knows?

Moreover, Facebook stillrelies on a 1990s revenue

model: clicks on bannerads next to user-generatedcontent. And how to mon-etize the Like eature whenbrands are already using itand launching Facebookpages to great success or ree?

In the mobile context,around 200 million Face-

book users use the service on their mobile phone. Facebookhasnt shown how it can monetize mobile when eventu-ally in three years or so mobile will be the primary orm osocial-networking access.

Privacy: A Do Not Track law may not harm mobile asmuch as online since it is hard to cookie mobile sitesBut marketers do collect data via applications, especiallythe app stores. What will such legislation rom the Fed-eral Trade Commission mean or mobile advertising anddatabase marketing?

Silence rom mobile marketers in the privacy area maymean consent to straitjacketing mobile advertising andmarketing to a point where neither the consumer nor themarketer benets. Speak up and speak now.

Apple dominates: Does Steve Jobs ever rest? ExpectApple to dominate the airwaves, newsprint and on-line chatter with a new version o the iPad tablet, aniPhone or another wireless carrier besides AT&T and mile-stones achieved in applications a hal-million sometime

this year.

O course, banish the thought that Apple will share ap-plication usage and deletion data on an aggregate basis othat it will lower its 30-percent take rom revenue gener-ated in the Apple App Store. Flash on mobile devices? Noton Mr. Jobs watch.

Google dazzles with numbers: Google will dangle stats on

The outlook or mobile advertising, marketing and mediais dynamite, backed by repower rom Apple, Google,Microsot, Research In Motion and an array o retailers andbrands that get it.

Mickey Alam Khan


4/48

the number o Android-supported mobile phones and de-vices and how it surpasses any other smartphone platorm.Well, i only those numbers could be monetized.

Google has yet to show how it will monetize its mobile

oerings, aside rom display ad revenue derived rom theAdMob mobile ad network purchase last year.

Indeed, Googles danger is that these new mobile venturesare still backed by a company whose primary source o rev-enue is search engine marketing on the traditional Web how 1998. And what happens when most search activitymigrates to mobile can Google support its 20,000-plusengineers on mobile revenue?

Oh, and what i Facebook launches its own search engine

within the new walled garden?

Research In Motion plays catch-up: The BlackBerrymaker just cannot articulate what it stands or and whynew customers should buy its devices over Apples orAndroids. How long beore Apple and Google crack theenterprise market?

Microsot spend now: Please buy a mobile advertisingor mobile commerce company or Research In Motion.Microsot cannot let Apple and Google divvy up the mobile

eld between them.

Tablet remedy: Sorry, the category belongs to the AppleiPad. Its not just the device, its the experience and theapplications and the marketing and the buzz and Mr. Jobs.What does Samsungs Galaxy Tab and Research In MotionsPlayBook have over the iPad? A smaller screen, Flash andaster Internet? Wait till iPad 2 is out.

Mobile commerce boom: This year and the years aheadbelong to mobile commerce. All retailers must have mo-

bile commerce sites and applications. To not have a mobilepresence is to lose a customer, once and or all.

Mobile Web: Betting long on mobile Web. Mobile siteswill be a requirement, while applications will remaina preerence.

Amazon: The worlds largest online retailer is set to change

the world o retail. Its mobile application and site are aTrojan horse in a retailers store. Expect more consumersto use Amazons mobile presence to search and compareprices while at a rival retailers store. A race to the bottomor oine retail? Perhaps.

EBay bids or success: The worlds No. 1 mobile retailewill hold on to its title. Eventually, most eBay transactionswill close on mobile. The one online-only retailer, alongwith Amazon, that has got mobile right.

Publishers: A mobile presence will not save publishingbut itll be a must. The biggest dilemma will continuehow to monetize mobile readership? Mobile ad revenuewill not sufce. And consumers have shown a markedreluctance to pay or news content online or on mobile

bar The Wall Street Journal, Consumer Reports and theFinancial Times.

The mobile editions will sooner or later cannibalize on-line and print. Publishers are running out o time tocome up with new ideas. Tip: ditch print, stick to on-line and mobile, cut overhead and stay lean and meanBut knowing publishers, these steps will be orcedon them.

Mobile advertising: Agencies need to bundle mobile buys

with online. Dont discount mobile. Mobile ads bannersrich media, search, SMS, voice and sponsorships wilboom with more inventory becoming available.

Fragmentation: Here to stay. Live with it disparate op-erating systems, browsers, screens, ad units, phones anddevices and app stores. No solution in sight, so why worry?It is what it is.

People to keep an eye on: Steve Jobs, Mark ZuckerbergJe Bezos and Angry Birds.

Mickey Alam [email protected]



5/48


6/48

Expect emergence o both vertically-ocused ad networksin specic categories such as automotive and travel, aswell as the emergence o networks ocused on specicgeographic ootprints such as dierent countries.

Fasten your seatbelts, said David Gwozdz, CEO o

Mojiva, New York. Mobile adoption is coming ast andnetworks need to be prepared.

To avoid being caught o guard, ad networks need totest a lot, he said. They need to nd out what advertis-ing is going to work, what inventory will sell well, andhow sales and marketing will get them there.

As ar as traditional display ad networks that are consid-ering going mobile, they dont need to bite o a big pieceo the mobile pie right away. They just need to nibble a

lot in order to nd the right recipe that will work.

Networks task: win more riendsThe greatest issue, challenge and opportunity areall lumped together in data, according to MojivasMr. Gwozdz.

The 2011 year will see many o the inconsistencies indus-try-wide exposed and, ultimately, resolved.

According to Paran Johar, Los Angeles-based chie mar-keting ofcer o Jumptap, mobile will be integrated intodigital planning and measuring tools.

Integration into tools like DoubleClick and agen-cy trading desks will begin taking place in 2011, Mr.Johar said.

This clear quantication o perormance and ROI o mo-

Traditional ad networks will clamor to join mobile ecosystemBy Giselle Tsirulnik

The 2011 year will be extremely positive or mobilead networks, with signicant growth in advertising

inventory. This will be driven by a change in attitude


rom publishers looking to grow their mobile businessesand spurred by the arrival o new mobile platorms.

bile versus PC Internet will result in shiting o budgetsaccordingly, he said.

Ken Harlan, president o MobileFuse, New York, saidmobile ad networks must oer distinct points o

dierentiation and opportunity or both publishersand advertisers.

I see tremendous opportunity or networks to bet-ter assist advertisers with regards to providing greatercontrol over the specic and unique placements wheretheir campaigns will appear, while at the same timehelping publishers to increase the value o their inven-tory, Mr. Harlan said.

AD NETWORKS


7/48

I also see a role or networks to serve as the representa-tive on behal o the advertiser to collaborate with pub-lishers or unique value-add opportunities that benetall parties such as content integration, in-content sup-port and editorial/advertorial eature activity, he said.

Along this same idea, the networks can do a better jobo representing opportunities that complement publisherinitiatives and highlight their unique opportunities orconsumer engagement.

Video gagaMobile commerces connection to mobile advertising willtake o in 2011, Jumptaps Mr. Johar said.

In contrast to 2010, mobile video will take center-stagein 2011.

Allowing consumers to shit their viewing experience

across multiple devices including tablets, PCs and con-nected television will be a reality in 2011.

This behavioral shit will dramatically change throughAndroid- and Apple-powered TVs and will plug right into

the mobile application ecosystem, allowing mobile videoto gain scale rapidly.

As Internet consumption shits rom PC to mobile sowill the gold rush to mobile, Mr. Johar said.

While many PC and digital companies have been cau-tious with their mobile investments, their attention wilmirror the shit in consumer behavior and place moreemphasis on mobile accordingly, he said.

Recommendations1. Be exible in your approach while working todeliver the greatest value possible to advertiserand publisher.

2. Do a better job o listening to publisher andadvertiser partners.

3. Be a partner and not just an inventory gateway.

4. Invest the resources to provide better consumer in-telligence and target-ing, more compellingcreative, value-addedsupport, enhanced con-sumer interaction, com-prehensive reporting andcustomer service.

While 2010 wasan amazing year interms o pure net-work growth and adoption o mobile media as anadvertising channel, it was still very much edu-cational or both publishers and advertisers,Mojivas Mr. Gwozdz said.

In 2011, we are poised to go beyond education, he saidWell see less talk and more action.



8/48

Mobile advertising spend will increase dramatically sincecompanies such as Google and Apple validated the in-dustry by investing hundreds o millions o dollars inthe space in 2010. Indeed, 2011 will mark the end o theexperimental phase o mobile advertising.

Expect another up year or mobile advertising,

with spending growth taking a sizable jump, saidNeil Strother, Kirkland, WA-based mobile practice leaderat ABI Research. More advertisers will launch mobilecampaigns or the rst time.

Couple that with the current number o advertisers whowill continue to spend on mobile, and you have a steadi-ly-building mobile advertising ecosystem, he said.

Nonetheless, I caution that the overall spending willstill be small compared to both traditional and onlineadvertising, but mobiles rise will be noticeable.

What to expectThe main challenges o mobile advertising are lack oexperience or new entrants, the somewhat complex na-ture o how to execute campaigns and the uncertaintyabout ROI.

The opportunities include a growing mobile audiencewith smartphones, better targeting based on location

and greater awareness by major advertisers.

The industry must ocus on making sure brands andagencies understand mobile is a marketing medium andnot a strategy.

Paul Cushman, senior director o mobile sales strategyat Yahoo Inc., Sunnyvale, CA, said that brands and agen-ices need to look at the broader digital strategy, goals,

Mobile ad spend to increase noticeablyBy Giselle Tsirulnik

E

xperts believe 2011 will likely be the rst timethat most advertisers will have more ormalized

mobile advertising line-items on their budgets


or the entire year. This is a big deal because it will sig-nicantly aect the growth o the overall marketplace.

metrics, assets and budget and determine how tointegrate mobile.

Shit to mobile has already begunWell likely see the continuing shit o dollars out o tra-ditional media into mobile specically, which is an excit-ing trend, said Andrew Koven, president o ecommerceand customer experience at Steve Madden, New York.

Instead o shiting dollars rom small digital budgetsmobile budgets will pull more rom the overall marketingspend, he said. Id expect us to see between 1-5 per-cent o overall advertising budgets moving into mobile

depending on the mobile sophistication and categoryo advertiser.

Continued ragmentation amongst operating systemsdevices, application environments and carriers will besome o the key challenges or advertisers.

With growth in multimedia orms o advertising, therewill likely be signicant increases in mobile commerceand mobile engagement.

The biggest CRM opportunity is to build a trueone-to-one conversation with the audiencewhere actoring in user preerence inormationliestyle interests and demographics with location andpast purchase history equates to a strong advertis-er-consumer relationship and, ultimately, more salesgreater brand loyalty, engagement and virality, SteveMaddens Mr. Koven said.

Bigger budget

Yahoos Mr. Cushman said 2011 will be bigger in terms obudgets, clients and options.

Tablets are going to be big and there will be more interms o engaging and customizable advertising solu-tions or this medium.

Yahoo will have new services specically or retail and abig play in local content in 2011.

ADVERTISING


9/48

I expect greater spending on mobile reected in largerbudgets that are in seven gures, and a ew reachingeight, ABIs Mr. Strother said. Targeting based on loca-tion and context will improve.

Also, the industry should have in place guidelines romthe Mobile Marketing Association and the InteractiveAdvertising Bureau that standardize what and how mo-bile impressions get measured, bringing greater clarity inthis area, he said.

Steve Maddens Mr. Koven expects more consolidationamongst some o the ad networks akin to the early dayso Internet advertising.

Recommendations1. Focus on building mobile commerce/inormation plat-orm. This is the backbone o the mobile operation.

2. Be careul to not oer only discounts in the mobilemedium. Marketers risk acquiring discount shoppers anddiluting their brand.

3. Be thoughtul about how to target ads to custom-ers by device, location, interests, time o day andacceptable requency.

4. Look or ways to integrate mobile into what the mar-keter is already doing.

Follow your target audience as they engage with youon mobile devices, Mr. Koven said. Dont shy away justbecause you have little experience.

These are still the early days, but you need to build upyour competence in 2011 as mobile continues its marchrom nice-to-have to must-have strategy, he said.



10/48


11/48

Agencies have had to evolve quickly to keep pace withthe lightning-ast speed o innovation in the mobilespace. While ragmentation will continue to be an is-sue, the best agencies are using the mobile medium toachieve reach, relevance and results or their clientele.

The outlook or mobile in 2011 is continued exponen-

tial growth, with new brands and clients entering the

Mobile tops agency priorities to meet client needsBy Dan Butcher

T

he exponential growth o the mobile market-ing ecosystem over the course o 2010 shows no

signs o letting up in 2011, and savvy agencies aremaking mobile their top priority to meet the needs obrand clients.

space in a large way,said Paul Gelb, direc-

tor and mobile practicelead at Razorsh, New

York. Clients that wehave been doing mo-bile with are expand-ing signicantly, andexpanding throughouttheir organization.

The mobile work weve done has caught the attentiono other stakeholders and were seeing mobile permeatethroughout their organizations, he said.

Shops will have to interpretLike any other year, in 2011 mobile will present agencieswith opportunities and challenges.

However, 2011 promises to oer more bountiul opportu-nities than 2010. But there will be challenges: ragmen-tation, apples-to-apples analytics and privacy concerns

The opportunities include a rapidly scaling audience withmore powerul mobile devices than beore.

Many big agency networks will open mobile agencies in2011, making the competition erce.

The adoption growth o smartphones also continues tobe aster than projections, Mr. Gelb said.

I you look at the 60 million smartphones in the U.Sas o Septemberand thats beore all o the back-to

school shopping and doesnt include the holidaysit ismore than twice the audience o American Idol backwhen Paula was still a judge and ratings were higher,Mr. Gelb said.

With Android devices being sold or $40 and a lot obuy-one-get-one-ree deals, as well with the launch oMicrosots Windows Phone 7, were looking at contin-ued growth o smartphone adoption, he said.

Mobile Marketer MOBILE OUTLOOK 2011PAGE 11

ADVERTISING AGENCIES


12/48

The increasing prevalence o smartphones is key ormarketers, because they know they have an audienceto which they can deliver richer experiences via HTML5rich media, branded applications and integration withsocial media.

Facebook Places, given its built-in audience o 150 mil-lion, has huge potential, per Mr. Gelb.

Depending on what Facebook does with it in 2011,it could have enormous benets or marketers, Mr.Gelb said.

Integrating mobile into multichannel efortsIn the coming year, successul agencies will moreully integrate mobile into all o their clients consumertouch points.

As mobile permeates the client organization o whereand how we deliver these experiences, the number oquality mobile experiences you can create continues togrow, Mr. Gelb said.

The 2010 holiday season was a landmark event or mo-bile, with plenty o successul mobile campaigns thathave generated positive ROI. Smart brands will go all-inwith mobile marketing in 2011.

In 2011, what we will have is a ull year o bud-get allocation in which the thought process or con-text through which clients are looking at mobile isthrough higher budgets, Mr. Gelb said. [Apples] iAdshited [brands] perception on campaign size andthe high end o the budget size that should be spentin mobile.

It came in middle o year [in 2010] but now we haveull-year planning or a stake in the sand o $1 million to

$10 million executions, he said.

Big step orward in 2011Three key dynamics will make 2011 dierent rom 2010,according to integrated ad agency Mullen: less trepida-tion, better experiences and more cohesion.

Clearly, 2010 put mobile on the map or the major-

ity o big brands. This year will put mobile in thelimelight as the catalyst and communication hub oentire corporations.

Many marketers saw mobile in 2010 as a test opportu-nity to learn and grow, said Brenna Hanly, mobile cata-

lyst at Mullen, Boston. In 2011, we will see less trepi-dation and more condence in mobile as a mainstreammedia channel.

4G will give rise to even better experiences in terms othe mobile Web, rich media and video content, she saidLastly, brands will begin to see mobile as the connec-tive tissue between disparate elements and build it intocampaigns more cohesively.



13/48


14/48

Associations look to support mobile marketersBy Dan Butcher

W

ith increased scrutiny rom the United Statesgovernment, including the Federal Commu-nications Commission and the Federal Trade

Commissions do-not-track proposal, industry associa-tions must stay on the ball in 2011 to protect mobilemarketers interests.

The Direct Marketing Association and CTIA-The WirelessAssociation set best-practice standards or sel-regula-tion, monitor proposed government regulations and lob-by on the industrys behal. The Interactive AdvertisingBureau launched the Mobile Marketing Center o Excel-lence at the end o 2010, while the Mobile Marketing

Association tapped ormer IAB chie Greg Stuart as itsnew president/CEO.

The MMA and the leadership derived rom its member-ship have been a cornerstone in the mobile marketingindustry or years, and this will not only continue, butaccelerate as the use and the diversity o mobile mar-keting solutions accelerate, said Michael Becker, SanMateo, CA-based managing director or North Americaat the MMA.

The MMA and its members will continue to supportthe industry in embracing and understanding the value-generating engagements that can be had or both theconsumer and the marketer through the proper use omobile marketing and the practices o mobile advertisingand mobile commerce, he said.

The MMA is aligning its ocus to the needs o consumersand marketers.

To this end the MMA will ocus on:

Industry standards and best practice: including ad-vertising guidelines, its consumer best practicesnot justor messaging, but all media pathsand best-practiceguidelines that demonstrate the eective use o mobilemarketing strategies and tactics.

Measurement: measurement o consumer accep-tance and adoption, total industry spending as a proxy

measure o industry health and growth, and the eec-tiveness metrics o mobile marketing as a consumerengagement medium.

Education: the enhancement and regionalization o itsmobile marketing certication program as well as theaddition o MMA member and educational committeesand the development o mobile marketing training andcertication coursesboth in-person and virtual.

Promotion: both the promotion o the industry and almarketers learn rom the three activities above, as welas the members o the MMA.

Protection: to work alongside its members and theother leading players in the industry to ensure that theMMA continues to enhance its consumer and commer-cial sel-regulatory principles, guidelines, standards andbest practice.

2011 compared to 2010Mr. Becker said marketers will see a number o dier-ences in 2011 compared to the previous year.

We entered 2010 with the mindset o a weak economyand the question on many marketers minds as to whetheror not mobile marketing was relevant, Mr. Becker saidIn 2010 we are leaving the weak economy behind usand the question o mobile marketing relevance.

Moreover, In 2010, in North America specically, we -nally hit the critical point o 20-plus percent penetrationo smartphone use in the market, the tablet computingclass o device has rmly taken hold as a new and uniquechannel and the market has developed a healthy respector all the mobile media pathsSMS, MMS, email, voicethe mobile Internet, applications, content, proximitychannels, he said.

In 2011 well see continued growth, adoption and use omass- and niche-market applications o mobile market-ing solutions. Moreover, well see growth in a wide rangeo location, commerce and personal data managementsolutions. 2011 is going to be really un.


ASSOCIATIONS


15/48


16/48

Majority o consumers to make use o mobile banking in 2011By Rimma Kats

L

arge entities such as Chase and Bank o Americamade the rest o the nancial services industryrealize the potential o mobile in 2011.

As more customers continue to leverage the convenienceo mobile services to stay connected and in control otheir nances, smaller banks will jump onto the mobilebandwagon, using the mobile medium to communicatewith customers. Mobile banking will be driven by grow-ing smartphone adoption and an increase in consumercomort in banking via their mobile phone.

We believe the mobile banking and mobile payments

space will see signicant activity in 2011, said MarcWarshawsky, senior vice president and mobile channelexecutive at Bank o America, Charlotte, NC. Bank oAmerica is on track to surpass 6 million active mobilecustomers in early 2011 and has demonstrated our long-term commitment to introducing new capabilities tomeet their needs.

We have conducted numerous trials to learn what ourcustomers are looking or in the next generation o mo-bile banking and mobile payments solutions, he said.

The biggest challenge in the mobile payment spacewill be delivering solutions that provide relevant cus-tomer value, a seamless and easy-to-use experience,and condence that customers are protected withtop-notch security.

It is not easy to deliver simultaneously on all o theseronts and therein lies the opportunity companies thatcan provide all o these aspects in their solutions willlead the way in customer adoption and satisaction.

Bank on changeMobile banking will change this year due to increases insophisticated devices.

Additionally, customer adoption will drive mobile bank-ing providers to broaden their capabilities to keep upwith consumer expectations.

There is marketing o the mobile channel and marketing

in the mobile channel, Mr. Warshawsky said. Market-ing o the channel means that banks must continue todrive consumer awareness o the capabilities and con-venience that are available to drive adoption all whileensuring customers understand the inherent security othe channel.

With regard to marketing in the channel, customersare highly sensitive to how they are communicated tovia their mobile device, he said. We think the key isto allow customers to choose how and when they arecommunicated to, and to make sure oers are relevanttimely and valuable.

Mobile developmentsIn 2010 banks developed mobile sites and applications tokeep up with their tech-savvy customers.

In addition, SMS played a key role or those that did nothave a smartphone.

More consumers are handling nancial transactions ontheir mobile device and are looking or their bank to havemobile oerings.

Financial transactions are one o the most popular useso mobile phones and we see that trend continuing dur-ing 2011 and beyond, said Christine Holevas, rst vicepresident o JPMorgan Chase, Chicago.

Keeping up with todays mobile liestyle and theever-growing popularity o mobile banking is ouchallenge and opportunity, she said. Customers ex-pect the latest banking tools and services that work

on the newest devices and systems rom us morequickly than ever.

We anticipate that we will see increased customeradoption in 2011 o Chase mobile banking oeringsincluding the native apps or iPhone and Android, textupdates on accounts and Instant Action Alerts. Theseservices t with todays mobile liestyle and customersdemand or up-to-the-minute inormation about thebanking accounts.


BANKING AND PAYMENTS


17/48

Verizon Wireless turned on the rst large-scale 4GLTE on Dec. 5, which the carrier claims enables speedsup to 10 times aster than its 3G network, but it is anopen question whether or not it will signicantly a-ect consumer behavior in the near uture. While bet-ter wireless inrastructure is necessary, in 2011 mar-keters may nd themselves wishing that carrierswould pick up the pace on the issues that are most

important to them.

All o the things we are hearing [about carrier initiativesin 2011] such as billing or support or existing servicesare not wildly innovativenot anything that will changetheir market share or improve their bottom line, saidJosh Martin, senior analyst at Strategy Analytics, Boston.Carriers are being more reactionary than proactive.

Verizon getting the iPhone will afect all carriers in 2011By Dan Butcher

T

he biggest development in 2011 will be the U.S.wireless carriers continued rollout o 4G networks

as LTE spreads nationwide to go head-to-head withSprints WiMax.

Corollary to that, the truth o the matter is that carriersstill have a lot o inuence and control in the wireless

space, and i they can gure out how to leverage thatthey can make a lot o money, he said. Hopeully in2011 they can develop better strategies, and you cantreally discount them, as much as theyve been beaten upover the last couple o years.

They have a lot o consumer data and a lot o relation-ships with subscribers, and while no one really talksabout the carriers, they know who everyone is and whatdevice they are using, and they have a billing relation-ship with consumers.

Verizon iPhoneNow that Apple has brought the iPhone to VerizonWireless, it is sending shockwaves throughout themobile ecosystem.

Everyone rom rival carriers to competing operating sys-temsespecially Googles Android and Research In Mo-


CARRIER NETWORKS


18/48

tions BlackBerry will be aected.

However, will the long-term damage to AT&T and thebenet to Verizon Wireless be as great as everyone seemsto assume?

It is likely that some early iPhone adopters whowill be o-contract by the time AT&Ts exclusiv-ity with the iPhone comes to an end are just waitingto churn to Verizon or their next iPhone upgrade,said Susan Welsh de Grimaldo, senior analyst atStrategy Analytics.

However, AT&T has smartly been making iPhone up-grades attractive not just to new users but to existing

subscribers, and we expect that they would ocus onstrategies to promote upgrades and contract renewalsbeore exclusivity ends, she said.

Other strategies to minimize the churn impact o los-ing exclusive rights to the iPhone include a diversehandset lineup.

That means AT&T would have to push other smartphonesand ramp up its Android oerings.

AT&Ts share o net adds will all with loss oiPhone exclusivity, but this will be made up or in partby growth in emerging device subscriptions, whereAT&T has been very active recently, Ms. Welsh deGrimaldo said.

Mobile commerceIn 2011 carriers will work together to lay the groundworkto try to create a nationwide standard or contactlessmobile payments with Isis.

Isis is a joint venture between Verizon Wireless, AT&Tand T-Mobile USA, with participation rom Discover Cardand Barclaycard.

I think 2011 really marks the point o ignition or mo-bile commerce and payments, certainly with the Isisannouncement, but also announcements rom mo-bile OEMs and OS-makers around NFC, Jaymee

Johnson, spokesman or Isis, Bellevue, WA. Isishas paved the way by guaranteeing a market orthat technology.

In 2011, we will see more contactless acceptance

which has been a barrier, he said. Many o the bigPOS terminal-makers are including NFC by deault inmost o their new POS hardware, so that constraintbegins to all down as merchants replace pin padsand signature capture pads. The replacements will beNFC-enabled.

Some o the inrastructural hurdles that have dampenedor prohibited uptake o mobile commerce will begin toall in 2011.



19/48

With technology such as bar code scanning, the aver-age shopper will always have total pricing transpar-ency. Location-based promotions have also gaineda lot o ground and will continue to aect what peo-ple expect to gain when they are in-store or in acompetitors store.

Social marketing has tied into the location-based pro-viders very well, letting people gloat about becoming

mayors or experts, said Jill Dvorak, senior consultanto mobile commerce at FitForCommerce, Short Hills, NJ.Mobile marketing is another channel where a customercan become a VIP to a retailer.

Customers will also become accustomed to anytime,anywhere, easy shopping, she said. We will also see anincrease o exclusive or invitation-only discounts andpromotions in the mobile channel just like we saw withemail marketing a ew years ago.

Perormance is a challengeMatt Poepsel, Lexington, MA-based vice president operormance strategies at Gomez, said that peror-mance o mobile sites will remain a major challengein 2011.

Indeed, mobile commerce is not always a satisying ex-perience or consumers.

The top 15 retailers mobile sites run slower, and perorm

less consistently than their traditional PC sites.

Many retailers have yet to gure out mobile peror-mance strategies that meet their customers expecta-tions which can be viewed as both a challenge and anopportunity, Mr. Poepsel said.

For example, one way to improve download speeds on amobile site is to streamline content, since most devices

Anytime, anywhere easy shopping to be commonplaceBy Giselle Tsirulnik

M

obile commerce will continue to change howpeople shop, and the way retailers interact with

customers in 2011.

arent equipped to handle the same content volumes andtypes as a desktop PC, he said.

Some retailers, trying to deliver a consistent user expe-rience across their traditional PC and mobile Web chan-

nels, maintain too much content on their mobile siteswhich impacts speed. Other retailers choose to stripaway too much content, leaving users wanting more.

The goal in 2011 should be to strike the proper balancebetween mobile site perormance and unctionalitybased on what customers want.

According to FitForCommerces Ms. Dvorak, con-


COMMERCE


20/48

tinued smartphone adoption and usage will bean opportunity.

To give some perspective on the pace at which mobileis growing, think about this, Ms. Dvorak said. Online

retail in the United States is currently 5 percent o theretail total and mobile is poised to grow to this numbermuch aster than online did.

Expanding roleRecent analyst data indicates that mobile devices willhave been involved in up to 28 percent o overall holidaysales in 2010.

In 2011 retailers will move rapidly beyond this

early stage o mobile commerce by making

mobile site perormance a key priority, per Mr. Poepsel.

Also, 2011 will see many brand retailers who are not mo-bile yet adding that unctionality. Those retailers who aremobile should be expanding by launching across at least

the our major mobile operating systems in the U.S., perMs. Dvorak.

Recommendations Prioritize for the most important user segments. Un-derstand which browsers/devices represent the heavi-est site trafc, andmake sure the sitecontent ts and dis-plays properly on

these devices.

Tailor the mo-bile site or the on-the-go user. Skipcertain applicationsthat mobile userswill not likely tap.

Brand marketers must review mobile analytics, mo-bile acquisition and retention spend and how protable

those customers are to their business.

Treat mobile as its own beast, thinking of new inno-vative ways to incorporate brand loyalty, afnity, excite-ment, usage and revenue into marketing campaigns.

Retailers should take mobile commerce serious-ly and dedicate appropriate resources to this quicklygrowing channel.

In 2011 all marketers should be planning or mobilecommerces continuation, Ms. Dvorak said. Even i abrand is not yet mobile, they should be collecting num-bers and opt-ins or their eventual SMS database andcustomer segmentation.

This ensures that they will not have to start rom scratchwhen they are ready to market, she said.



21/48

Brands are making sure that consumers can access theircontent in whichever way they preer. The content pro-vided should best reect the brand, while at the sametime take advantage o the exibility and portability othe mobile phone.

Mobile provides another access point to our engagedaudience, said Angela Moore, vice president and site di-

rector at FoodNetwork.com.

We nd that our audience is inspired by our program-ming, and they go online to review more content, espe-cially recipes, which they then use to learn new ideasand plan their meals, she said.

With the extension to mobile devices, our audiencetakes these recipes and content with them into the gro-cery store to shop and into the kitchen to cook. Werewith them every step o the way, rom the couch to the

dinner table.

Mobile content usageIn 2010, the Food Network let ood enthusiasts browsethrough 45,000 recipes via its applications or ApplesiPhone, iPod touch and iPad.

The company rolled out the application to engage ansand give them access to their avorite recipes.

In 2011, we plan to have a more [vigorous] oering ocontent and products available via mobile, Ms. Mooresaid.

We will build out mobile Web sites and applica-tions across our amily o Web sites Food.com andCooking Channel as well as build innovative ap-plications that take advantage o the unique contentwe have, she said.

Brands advertising mobile content will have advantageBy Rimma Kats

W

ith the increasing consumer usage o mo-bile devices or more than just making phone

calls, mobile content consumption will boomin 2011.

Adapting to new, diering and changing technologiescan be hard to keep up with, but were making sure our

content APIs enable us to be adaptable as possible.

Additionally, 2011 is looking positive or applicationdevelopers as smartphone usage continues to expand.

The new paradigm is tapping, not typing.

Web vs. appsIn the coming years, consumers will expect to accessmore services via applications than mobile browsers astapping applications to access inormation and Inter-

net services grows in popularity over typing URLs, per


CONTENT


22/48

Ilja Laurs, CEO o GetJar.

The HTML5 versus applications debate will continuein 2011.

Although most app stores will continue to grow in pop-ularity as a concept in 2011, app-store-industry consoli-dation will become inevitable, Mr. Laurs said.

Just as there were thousands o search engines in ex-istence 10 years ago, app stores will experience consoli-dation, he said. In ve years, only six major app storeplayers will make it and, in 10 years, only two to threeapp stores will matter. All other app stores will becomeapp-store ghettos.

Whether an app store makes it or not is largely due totwo actors are they large enough to support tens othousands o developers and are they open?

Brands that understand and advertise on the mobile mar-

ket today will have a competitive advantage in reachingconsumers tomorrow.

Virtually all consumers have a mobile device, and asmartphones nationwide outpace eature phones in2011, brands that understand and advertise on mobileplatorms will reach consumers, while brands that do notwill lose out.

Experimentation, education and explorationThe 2010 year was one o experimentation, education

and exploration or brands and providers.

New products such as the iPad tablet and the explo-sive growth o the Android operating system haveturned major, positive disruptors in the market, becom-ing the hoped-or salvation o many businesses such aspublishing and retailing.

2011 will be the year critical mass is reached or thenumber o smartphones and tablets o getting in con-

sumers hands, said Michael Cartabiano, CEO o ThumbMedia Group. Business verticals such as magazineprinting, distribution and publishing are re-inventingthemselves and going through many painul challengesand wont necessarily be able to reach the same levels oprotability in 2011.

2011 will be an incredible year o transi-tion and growth or mobile, he said. Thelaunch o LTE networks, nominally known as 4Gby carriers worldwide will begin to create a seam-

less global wireless network, a true mobilemedia channel.

It will greatly enhance the adoption and use osmart wireless devices that support streaming mul-timedia content, which in turn will stimulate evengreater prolieration o applications and the use omobile Web.



23/48

Ater growing their database, marketers will employmobile CRM strategies to get the right messages outin ront o the right people at the right time. Mobilecoupons and sales alerts will be some o the most com-

Brands will develop deeper relationships via mobile databases/CRM

By Rimma Kats

U

sing the mobile medium to build databases oconsumers interested in communicating with a

brand will be a continued practice in 2011, withmarketers placing calls to action on mobile Web sites,PC sites, out-o-home advertising, print ads and othertraditional media.

monly used CRM tactics geared towards databaseso loyalists.

Although SMS marketing has been in use or years, theincrease in smartphone use will continue to uel mobilemarketing momentum and drive interest in all aspectsrom SMS text, to apps, WAP sites and mobile com-merce, said Shira Simmonds, president/CEO o PingMobile, Englewood Clis, NJ.

Similar to the way email databases and relation-ship marketing took hold nearly 20 years ago, mobiledatabases will become a growing trend or market-

ers as a means to develop deeper relationships andloyalty with consumers through the mobile device,she said.

Mobile commerce will continue to grow in 2011, in-cluding the ability to make purchases, view oers andcoupons and scan or competitors products, all on amobile device.

Mobile databaseThere will be some issues and challenges aecting themobile space in 2011.

Mobile security and threatswill become more im-portant as devices be-come sophisticated andWeb-enabled.

Additionally, businesses willrecognize that having an ap-

plication does not constitutea ull mobile strategy.

Most businesses today typically report on the num-ber o downloads and do not always know what ishappening inside their apps, Ms. Simmonds saidImproved analytics will enable businesses to op-timize the mobile user experience [via CRM] andresultant outcomes.


DATABASE/CRM


24/48

As businesses realize all that they can accomplishwith mobile devices, it will continue to have a di-rect impact on marketing departments and smallerbusinesses, she said. Small and large businesses willbegin utilizing location-based marketing to reach

existing and new consum-ers in close proximity to

their location.

The most importantcomponent is plan-ning. Research, ocusand set measurablegoals. Consider whatwould work best oryour service or product

and start with a airly inexpensive entry point. Smallebusinesses should denitely start with somethingbasic like SMS, with a clearcall to action oering val-ue to the consumer, and

increase eorts once theystart to get results.

Mobile CRMAmerican Airlines hasrequently included mo-bile in its initiatives in2010. The company ex-panded its mobile board-ing passes to a total o42 airports. This was part

o the airlines mobileCRM strategy.

We anticipate smart-phone adoption will in-crease dramatically romits market share today,and tablets will be-come much more common as the large number o play-ers entering this space will drive down price points,said Marcy Letourneau, spokeswoman at AmericanAirlines, Fort Worth, TX.

Ms. Letourneau sees that a rapid adoption o An-droid phones and tablets will create new custometouch points.

The challenge is managing open-orm actors andrapidly evolving operating systems, Ms. Letourneausaid. As we develop customer-acing applica-tions or the Android, BlackBerry and others, we wil

turn around employee-acing applications or thoseplatorms as well.

With that said, we certainly anticipate that ourapps will target multiple platorms and take advan-tage o customer preerence and location, she saidWe will introduce more tablet applications as themarketplace provides visibility into trends andusage patterns.



25/48

Customers now use text, IM, social media as well asemail, and uidly move between them so that a com-munication that begins in one channel may end up beingconsummated in another.

While these have been watershed events with broadimplications that will continue to unold in 2011, the

biggest one o all still lies ahead message conver-gence, said Dave Lewis, chie marketing ofcer o Mes-sage Systems, San Francisco. 2011 will be the yearwhen message convergence gets serious industry at-tention as companies struggle to stay connected with

their customers.

Knowing their customerpreerences, needs andwants, message conver-gence is where compa-nies actually coordinatetheir communicationsto ensure that the rightmessage is delivered atthe right time and in the

channel that is most contextually relevant and appro-priate, he said. It is easier said than done, but it is theonly viable alternative to letting customers sort it out ontheir own.

And it is in this world o converged messag-ing where mobile email will rediscover its roleand relevancy.

Contextual relevanceWhat do marketers need to keep in mind given thatmany emails will be viewed by their target consumerson a wide variety o mobile devices? In a single term contextual relevance.

Email is all about contextual relevance or mobile consumersBy Dan Butcher

E

mail will remain the workhorse o online marketingin 2011, but it will be a year o transition as market-

ers come to recognize how customer behavior andpreerences have altered the landscape to make mobile-optimized email campaigns imperative.

The mobile phone will increasingly become the device ochoice or all consumers, the one possession that is neverar rom reach.

And with those powerul Web-enabled devicesconsumers will increasingly dictate the terms o onlinecommunication, per Mr. Lewis.

Its already happening and will accelerate in 2011, MrLewis said. Look to the recent Facebook announce-ment [meshing email, SMS and instant messaginginto one stream] as to where online communicationis headed.

In a real sense, consumers are redening the boundariesbetween the oine and online experience, and that is


EMAIL


26/48

certainly a trend that will accelerate and take new ormsin the year ahead, he said.Opportunities and challengesThe opportunities and challenges or marketers inreaching mobile customers in the coming year cen-

ter on the same objective as they always haveachieving relevancy.

Marketers who are tuned in to the wants andneeds o their customers and deliver messages how,when and where consumers want them will seegreat success.

Those who do not will be let to explain their dwindlingreturns and declining brand loyalty stats.

While success demands greater segmentation in target-ing, it will also require attention to how the message is

constructed or viewingin a mobile environ-ment, Mr. Lewis said.And given greater ac-cess to various appli-cations and social con-

nections, the broadercontext in which themessage is deliv-ered and viewed cantbe ignored.

Marketers will need tothink more holistically about ways to inuence and le-verage that context in prompting response, he said.

In short, it is not just about email anymore and market-ers need to look beyond it.Making mobile email socialJust as email marketers cannot ignore the explosivegrowth o smartphone adop-tion, they cannot disregardthe increasing crossover be-tween mobile and social.

There is an opportunity or email

to help acilitate a cross-chan-nel dialogue with consumers in2011.

With the explosion o social media, market-ers need to be thinking not just email, not just mo-bilesocial networking is a very mobile experience,said R.J. Talyor, director o product marketing atExactTarget, Indianapolis.

In 2011, marketers should be integrating not only theirmobile experience with their social experience, but alsomobile email that prompts someone to share somethingvia social channels, then be hit with a text message oranother mobile experience, he said.

Were going to see a better experience or end-con-sumers and opportunities or smart marketers in thecoming year.



27/48

Gaming moves rom dedicated devices to mobile phones, tabletsBy Dan Butcher

W

ith an increasing number o developers and pub-lishers creating games or more sophisticated

smartphone and tablet devices, consumer adop-tion o mobile gaming will continue to increase in 2011.

From the popularity o Angry Birds and the rise o vir-tual currency and rewards to the blending o mobile,social and gaming, 2010 saw many interesting trendsdevelop. In the coming year, those trends will only in-tensiy as consumer interest in mobile gaming continuesto grow and the selection o mobile games gets betterand more varied.

The outlook or mobile gaming in 2011 is good, saidTuong Nguyen, Richmond, VA-based principal analyst omobile devices, technology and service provider researchat Gartner. I expect to see more in terms o selection andqualityin turn, drawing in more consumers, expandingthe overall market.

Shit to mobileMobile gaming has moved increasingly rom dedicat-ed devices such as the Nintendo DS and Sony PSP tomobile phones.

That has encouraged large developers such as EA andsmaller ones such as Rovio, creator o Angry Birds,to ocus on games or eature phones, smartphonesand tablets.

The boom in mobile applications, in general, and thesuccessul distribution models o app stores havehelped developers generate revenue rom qualitymobile games.

The opportunity is largely in the mobile space andthe new platorms on which they can develop,Mr. Nguyen said.

How will 2011 be dierent rom 2010? Increased mar-ket opportunity, competition and choices, he said. Nowthat Android devices are in ull swing, Googles AndroidMarket will be more signicant in the coming year.

ChallengesHowever, with opportunities always come challenges.

Building games to be distributed in Apples iTunes AppStore and Googles Android Market are no-brainers ordevelopers. But beyond those two, ragmentation be-comes an issue.

Developers want to cast as wide a net as possible. How-ever, developing or a range o individual platorms can

be time-consuming and expensive.

In terms o monetization, developers continue to try outvarious models and hybrid solutions, rom ad-supportpay-per-download and subscriptions to micropaymentsand virtual currency. No single method is going to winout. Savvy developers and publishers will try a rangeo models.

Monetization continues to be a challenge, Mr. Nguyensaid. The growing opportunity also adds an element o

choicewhich platorm to develop orand competi-tion, with developers ooding the market as they seeopportunity arise.

Consumers win out, he said. Providing them with choic-es will open up the market opportunity or developers

None o these options are one-size-ts-allit dependson the game and the target market.


GAMING


28/48

Though mobile marketing continues to develop signi-cantly given the primary importance that consumersplace on the devices coupled with their tremendousadvances in technology, the law in this area continuesto lag.

Marketers and their lawyers are nding that the regula-

tory guidance and enorcement relating to this technol-ogy is emanating not out o Washington, but rather outo the state o Florida and through the workings o a ewclass-action attorneys who are otherwise establishingnationwide standards.

Marketing restrictionsThe Federal Trade Commission is the primary ederal reg-ulator overseeing advertising o goods and services.

While the FTC has not enacted regulations specicallygoverning mobile marketing or SMS campaigns, it hasbrought enorcement actions against advance-consentnegative-option Internet marketers under its gener-al enorcement power prohibiting unair or deceptiveadvertising practices.

Typically, the FTC has brought enorcement actionsagainst these programs under the unairness prongclaiming that a reasonable consumer would not appreci-ate that he or she was enrolling in a subscription-based

program that would be automatically charged to a par-ticular payment method.

As it relates to online advertising, the FTC has issued abusiness compliance guide known as the Dot Com Dis-closures which details the FTCs positions on Internetmarketing requirements.

The Dot Com Disclosure Guidehighlights the FTCs posi-

Legal analysis: Governing by putting a square peg a round holeBy Andy Lustigman

W

While mobile marketing continues to developsignicantly given the primary importance

that consumers place on the devices coupledwith their tremendous advances in technology, the lawin this area continues to lag.

tion that the terms o aprogram being market-

ed on the Internet mustbe disclosed clearlyand conspicuously.

To determine whetherthe terms o a programare clear and conspicu-ous marketing, the FTClooks at the Four Ps odisclosure: prominence,presentation, placementand proximity.

Prominence requires that the disclosure be in type sizethat is large enough or consumers to notice and readand that there be a sharp contrast between the disclo-sure and the background.

Presentation requires that the wording and ormat beeasy or consumers to understand based ree rom dis-tractions that compete or the consumers attention.

Placement requires that the disclosures be located in anarea that consumers would look or disclosure.

Finally, proximity requires that the disclosure be close tothe claim that it qualies.

The language and placement o required program termsmust be examined to be sure that the terms are reason-ably and adequately disclosed to the target consumer.

MMA best practicesLike the FTCs general standards, the Mobile MarketingAssociation has issued a Best Practices Guide govern-ing, among other things, the enrollment o consum-ers into a subscription-based SMS program throughthe Internet.

While the guide does not have the orce o law, theguidelines are considered by a compilation o accepted

Andy Lustigman


LEGAL/PRIVACY


29/48

industry practices, wireless carrier policies and regula-tory guidance or marketing practices.

Wireless carrier Florida settlementsDespite the FTCs oversight o national advertising, regu-

latory enorcement relating to mobile marketing con-tinues to emanate primarily rom the state o Florida,which has now inked settlements with all the majorwireless carriers AT&T, Verizon, T Mobile and, mostrecently, Sprint.

While these settlements are directly with the carriersand not the marketers and are limited to Florida, be-cause the carriers bill or the content, their terms es-sentially establish the standards by which industry

must operate.

Among the terms o thesettlement set orth in anAssurance o VoluntaryCompliance, the carriersare required to include intheir contracts with third-party marketers vari-ous restrictions relatingto type, placement andcontent o cost and other

important disclosures.

Given the broad restrictions placed on the carri-ers which act essentially as the billing agent orthird-party service providers, companies that wishto provide paid content must be sure that they arein compliance with the detailed requirements o theFlorida settlements.

Class actions marketing

Under the Telephone Consumer Protection Act o 1991,a person transmitting an SMS message or commercialpurposes must rst have the recipients prior expressconsent to receive the message.

The scope o consent has been very narrowly construedin recent class-action decisions and the liability as a re-sult o sending a mass SMS message without sufcientconsent is enormous.

Here, the cases have been initiated by class-actionplaintis rms. A number o major settlements haverecently been reached relating to mobile content aswell as SMS messaging being transmitted withoutsufcient consent.

For example, in one case, the appellate court ound thatSimon & Schuster and its marketing partners violatedthe TCPA when it sent text messages to promote StephenKings novel, The Cell.

Although the plainti agreed to receive promotionsrom Nextones afliates and brands, the Ninth Cir-cuit ound that Simon & Schuster was not an afliate oNextones based on a ormal analysis o the meaning othe terms.

Nextones neither owns nor controls Simon & Schus-ter. Furthermore, Simon & Schuster was not a brando Nextones.

Thereore, Simon & Schuster could not rely on theconsent that Ms. Sattereld provided to receive mes-sages because it was not a brand or an afliateo Nextones.

The court remanded the action to the trial court tocontinue the litigation.

Although the amount o damages or a single unau-thorized message may be small (i.e. $500), when alo the messages are combined, the amount o liabilityis extraordinary.

Thereore, rather than risk up to $90 million dollars inliability, deendants in the Sattereld action have soughtto settle the matter.

Under the terms o the settlement, deendants agreed toset up a $10 million cash settlement und.

Approximately $7.7 million will be used to make pay-ments o up to $175 to each claimant who receivedthe text message at issue, and $2.275 million in attor-neys ee will be paid, in addition to payments to theclass representatives.



30/48

Other class actions have been brought around thecountry, claiming lack o authorization to receivemobile messages.

For example, a class action lawsuit has been led against

the publisher o Rolling Stone, Us Weekly and MensJournal magazines, Wenner Media LLC and a marketer osubscription products, Consumer Benet Services Inc., inthe United States District Court or the Northern Districto Illinois, alleging, among other things, that the deen-dants made unsolicited text message calls to promotepaid subscriptions to their products, including maga-zines, identity protection services and discount clubs,purportedly in violation o the Telephone ConsumerProtection Act.

Deendants ace potential liability o $500 per text mes-sage sent to each recipient.

As to marketing claims, the plainti brought a class-action lawsuit in the Circuit Court o Cook County, Illi-nois, on behal o a proposed class o mobile subscribers,alleging that certain deendants were involved in charg-ing mobile subscribers or mobile content that they did

not authorize.

These cases were settled on a global basis with a redressund o $9 million, as well as attorneys ees o up to$1.835 million.

In addition, the deendants also agreed to adhere to cer-tain standards or the sale, marketing and reunding ounauthorized mobile content.

ConclusionAs it relates to legal standards, mobile remains a mediumstill in its inancy without clear guidance by ederal orstate authorities.

Instead, mobile marketers are aced with trying to com-

ply with laws enacted long beore the developmento the medium as it currently stands, and enorce-ment by private plaintis instead o ederal regulatorswho can establish a balanced, nationwide industry-public approach.

Andrew Lustigman is principal partner o The Lustigman

Firm, New York. Reach him [email protected].



31/48

Apples iOS, Googles Android and Research In MotionsBlackBerry are the three leading operating systems inthe United States, while Nokias various platorms stillhave wide reach abroad. In addition to a reocused Palmunder Hewlett-Packards umbrella, devices based on Mi-crosots Windows Phone 7 operating system will makea splash in 2011.

All bets are o i the iPhone moves to Verizon, a move

more likely now that the carrier has launched its LTEnetwork, but we will see Windows Phone 7 back in thegame, said Ross Rubin, executive director o industryanalysis at the NPD Group, New York. Android shouldcontinue to command a healthy percentage as well.

Without urther signicant changes to its operatingsystem and app support, RIM will continue to be at adisadvantage with consumers, he said.

Challenges lie aheadWhile steadily increasing mobile usage and consumeradoption o higher-ticket smartphones and tablets oerplenty o opportunities or handset manuacturers in the

coming year, they will acechallenges as well.

With the touch-screen in-terace becoming a de actostandard and many dier-ent manuacturers building

on the Android platorm,dierentiation will be moreo a challenge in 2011.

The touch-screen slab hasbecome a commodity andAndroid has lost much oits novelty, Mr. Rubin said.We have not seen many

Diferentiation will be more o a challenge or OEMsBy Dan Butcher

A

s various handset manuacturers and operatingsystems battle it out or supremacy, competition

will be at a ever pitch throughout 2011.

new breakthrough apps recently.

NFC chips are promising or driving mobile paymentsbut there are challenges around standards and how thepie is divided, he said. Tablets represent a somewhatmobile opportunity, but they are more than simply large-screened smartphones.

Dialing upWhile the technological progress achieved over thecourse o 2010 has set the stage or advancement in theollowing year, 2011 will be dierent rom the previousyear in signicant ways.

NPDs Mr. Rubin said that more competition will returnto the smartphone market with HPs Palm and Micro-sots Windows Phone 7 driving new products, at leastone major new version o Android and a likely newiPhone, as in years past.

The industry will see broader adoption o higher-speeddata branded as 4G, paving the way or more video ser-vices such as on-demand television shows and videocon-

erencing, per NPD.

In addition, 2011 will see more adoption o peer-to-peernetworking technologies such as Wi-Fi Direct, Bluetooth4.0 and NFC.

Marketers should careully monitor developments re-lated to the various handset manuacturers and mo-bile operating systems in the coming year to make suretheir campaigns are targeting the right audience and areoptimized or the pertinent mix o devices.

More consumers will have access to devices that canaccess the Internet at higher speeds and have higher-resolution displays, Mr. Rubin said. This should enablericher advertising.

Continued growth in location-based services shouldalso do more than ever to bridge the gap between mobilemarketing and bricks-and-mortar commerce, he said.


MANUFACTURERS


32/48

Most media giants already have at least one applicationand a mobile Web site. In 2011, these media companieswill ocus on expanding their distribution to includeAndroid, BlackBerry, Windows Phone 7 and iPhone. SMS,image recognition and 2D bar codes will become armore mainstream in print media.

Its an exciting time to be a part o the media indus-try, said Kim Kelleher, vice president and publisher oSports Illustrated, New York. During the past year, amyriad o new channels and devices have provided ad-ditional touch points or our readers to connect with

Having a cross-platorm mobile strategy tops publisher to-do listBy Rimma Kats

Publishers such as Conde Nast, Hearst and TimeInc. began to understand the potential o mobile

publishing, advertising and marketing in 2010. In2011, a cross-platorm mobile presence will top their listo priorities.

Sports Illustrated.

We have ound that with each product introduction, us-ers have migrated to our content, she said. 2011 is sureto bring new developments across the media landscapeand we will continue to connect with our audience intheir avorite spaces and produce unique opportunitiesor our advertisers.

FrenemiesMore readers are moving away rom online and intomobile. However, publishers need to view mobile as

another source o monetization and not as a threatto online.

Mobile can be an additional channel or revenue itreated properly.

Media brands need to monetize with ads on mobile sitesand applications, in addition to online and print.

Paid mobile content may also be an option or somemedia brands.

Code languageSports Illustrated has rolled out its content across vari-ous mobile platorms. In addition to engaging smart-phone users, the publication reaches readers who haveeature phones via SMS.

At Sports Illustrated, we have built a strong baselineaudience across all o our mobile platorms, but tomaintain and grow that audience well need to sus-tain our commitment towards providing exclusiveand engaging content or our readers to consume,Ms. Kelleher said.

There is an enormous demand or unique prod-uct-specic content and developing that materi-al will be the key to growing our audience this year,she said.

Undoubtedly, 2010 has generated a lot o momentum or


MEDIA


33/48

media brands and their publications.

QR codes have played a key role in activating print mediaor magazines such as Allure, Lucky and People.

Not only do bar codes present major opportunities oradvertisers to engage with consumers, but publisherscan use them to oer exclusives to users such as behind-the-scenes videos and gallery photos, making the read-ing experience more engaging.

Allure recently used 2D bar codes or its annual beautyissue where it oered readers a chance to win items dailyby scanning the code.

The magazines use o Microsot Tags as an entry pointinto the magazines annual ree stu giveaways resultedin 444,572 scans, making it the largest mobile bar codecampaign to-date.

Mobile publicationsThis year promises to be a time o growth or mediabrands that have embraced innovation and adjustedto the consumers desire or on-the-go media, MsKelleher said.

With the entrance o tablets, more magazines are opt-ing to take their issues to the iPad and incorporatingrich-media videos, which is something they cannot do intheir magazine.

Publishers realize the importance o the mobile mediumand in 2011 will begin to test content on a subscriptionbasis to monetize their mobile presence.

Media brands will stop ocusing solely on the iPhone

and Android platorms in 2011. A majority o read-ers may not have smartphones and it is important orthem to be where their readers are across all platormsand devices.

The mobile audience is growing rapidly and market-ers need to embrace the opportunity to reach con-sumers across multiple platorms, Ms. Kelleher saidMarketers should look or solutions that al-low their brand to weave through print, digital andmobile platorms.

Mobile presents an opportunity or varied and geo-lo-cated messaging, she said. As technology continues toimprove, the ability to target our audience with person-alized content will continue to grow and the opportuni-ties are going to be endless.



34/48

While the prolieration o smartphones continues, bring-ing more and better mobile Web and application expe-riences with it, this does not diminish the importanceo SMS.

The Red Cross Haiti undraising campaign showed theworld that there is tremendous value in text marketingand undraising and that text continues to be the keycomponent o any mobile strategy, said Joshua Kittner,senior marketing consultant o digital engagement atthe American Red Cross, Washington.

Our results are already having a signicant positive im-pact in the number o short codes leased or nonprotand or-prot organizations, he said. This should con-tinue well into 2011.

With all these new entrants we expect increased com-petition or donor dollars, which should increase the

marketing creativity in this sector while driving costslower or all.

Issues, challenges and opportunitiesThe rst challenge is awareness, according to DavidBerkowitz, senior director o emerging media and inno-vation at 360i, New York.

It is hard or messaging to compete with applications,HTML 5 Web sites, iAd, mobile video, mobile social mediaand location-based services.

The second challenge is getting pricing right and accepted.

For ads appended to SMS content, pricing is relativelystraightorward, generally sold on a cost-per-thousandbasis, and there are possibilities to buy SMS ads on aperormance basis.

The third challenge is the rise o smartphones.

SMS calls to action will be all over traditional mediaBy Giselle Tsirulnik

S

MS will continue to be part o the personal com-munication mix in 2011, as it still will have themost reach and be the most used mobile service

by consumers.

So ar, this has not slowed down SMS usage, and it ben-ets MMS since it is now easier to create multimediacontent rom mobile devices.

Applications, in particular, are a threat in two ways.

First, consumers are increasingly turning to applications

such as TextPlus, GroupMe and Kik to chat instead otext, and Facebooks new messaging service will eat intothis, too.

Next, applications can directly send notications to thedevice that do not rely on SMS.

According to Je Hasen, chie marketing ofcer o Hip-cricket, Kirkland, WA, companies including Macys, Arbys


MESSAGING


35/48

and MillerCoors moved product, built databases and loy-alty, and viewed text messaging as an indispensible toolin each brands reach strategy.

The very act that these brands and thousands o oth-ers have built valuable databases proves that SMS willremain in the core strategy and mobile toolbox.

Picture growthExpect to see more prominent calls to action that inviteparticipation via text.

Much like Arbys used text in the introduction o theRoastburger on the Jimmy Kimmel show, major brandsare inserting SMS calls to action to encourage trial, salesand to build loyalty. SMS calls to action will prolieratein 2011.

When it comes to MMS, more mobile subscribers

will have sizable data plans, so MMS becomes moreviable. More brands are now employing richer messagesThere is reason to believe the MMS growth will continuein 2011.

SMS has come a long way, but still suers rom the tag

by creatives and others that it is the least sexy mobileexecution, Mr. Hasen said.

That is why we continue to preach the pyramid strat-egy where you employ SMS or reach, then build onricher applications that deliver better brand experiencesbut reduce the number o people who can participate,he said.

MMS still has to build consumer awareness and accep-

tance. In addition, many brands are unwilling to spendon MMS because they dont want customers or prospectsto have to pay or MMS that is outside their plan witha carrier.

Recommendations1. Understand business goals and target audience. Ithe target consumers and prospects all have one brando smartphone, then the marketer is golden. But that isnot likely.

2. Start rst with reach via SMS, then see how the mar-keter can urther engage subscribers with MMS, andthen send oers via text or other actions that bring valueto them.

3. Marketers should also seek a clear understanding be-ore running any mobile programs.

4. Balance the portolio. SMS and MMS are theblue-chip stocks.

Expect the integration points to be dierent, 360is MrBerkowitz said. Mobile social media presents an oppor-tunity to allow people to interact with people, places andcontent in new ways rom their mobile devices.

SMS and MMS can acilitate deep interaction at liveevents, and there are un ways to use it with digital out-o-home media, he said.



36/48

Artists are using the mobile medium to build buzz aroundan upcoming album or tour. Additionally, companies suchas Shazam are rolling out mobile applications across var-ious smartphone platorms to keep music lovers up-to-date with their avorite musicians.

Artists rely on mobile to make live music events more engagingBy Rimma Kats

M

obile is letting artists connect with ans likenever beore and labels, musicians and man-

agement companies need to recognize the im-portance o the mobile platorm as the most personaland eective medium o connecting directly to musicans in 2011.

Fans have not only increased their use o mobile de-vices, but have come to rely on them in their day-to-

day interactions with their avorite artists or bands,said Dorrian Porter, CEO o Mozes, Palo Alto, CA. Thistrend has led to their acceptance o being directlycontacted on their mobile phones with inormation otheir choosing.

While the use o mobile technology may have been anup-and-coming tactic in 2010, it will be a must-haveor any digital and marketing strategy in 2011, he saidThe act is i you can provide ans with inormation theywant and need, they will be open to your requests.

With higher percentages o ans not able to attendshows or purchase albums due to the economic down-turn, the music industry needs to be able to specicallytrack the success o their artists and events and deter-mine ROI.

Music engagementUniversal Music Group, which uses Mozes mobile en-gagement platorm, has been active in the mobile spacethis past year.

The company has expanded its lineup o direct-to-consumer mobile content and services or Spanish-speaking and bilingual music ans and is letting usersconnect to their avorite artists by personalizing theirmobile device.

Issues and challenges or 2011 include providing rel-evant and desirable content to ans, Mr. Porter said. Inorder or the mobile experience to successully engage

and sustain ans, the content must be seen as desirableor there is a high likelihood they wont stick around orlong to receive more.

There are many opportunities or us, he said. Mobilecommerce, mobile location-based services, mobile appsthe integration o mobile and social media, and a ocuson mobile activation at live events, where a an is mostpassionate and open to engaging with you.


MUSIC


37/48

Mobile adoptionCompanies and music labels are seeing how they can in-tegrate mobile to engage with consumers and have re-cording artists and musicians interact with ans.

Artists can be with their ans both on the stage and o.Consumers can opt-in to receive personalized messagesrom their avorite artist and stay in touch with them asthey go on tour or listen to the latest album.

Mobile makes the time at live music events more engag-ing or ans by letting them express their excitement,participate directly and even share their experience onFacebook and Twitter.

Smartphone adoption will drive even more compelling

engagement scenarios around live music events, Mr.Porter said. Justin Bieber, in particular, is an artist who

loves what he is doing, loves sharing it and always wantsto communicate his thankulness to his ans.

Mobile has proven to be one o the quickest and easiestways or him to do this, he said.

It is essential that ans eel invested in and genuinely in-the-know about their avorite artist.

Making a connection with a an on their most personadevice at a time when they are the most passionate letsartists establish an ongoing relationship with that anwell beyond the live music event.

The key is that the passion and excitement generatedrom a live music event can be captured with mobile

engagement and continued ater the experience or thebenet o both the artist and an, Mr. Porter said.



38/48

Top mobile stats to remember in 2011By Giselle Tsirulnik

Experts agree it is inevitable that 2011 will mark anincredible shit in marketers budgets, as more isallocated to the mobile medium.

Here are some stats that are indicative o what to expectin the year to come:

1. Fity-seven percent o consumers would be interestedin opting in to a brands loyalty club via a mobile socialnetworking application such as Facebook.

2. Google dominates mobile advertising, with a marketshare o 59 percent o total spending including searchand display advertising, ollowed by Apple with 8.4 per-

cent and Millennial Media at 6.8 percent, according

to IDC.

3. When it comes to mobile Internet display ads, Googleis tied at rst place with Apple with 19 percent mar-ket share and independent ad network Millennial Mediacomes in second place with about 15 percent per IDCGoogle dominates mobile search advertising, with an adrevenue market share o 91.4 percent per IDC.

4. 2011 will see almost $2 billion or mobile onlineadvertising, according to IDC.

5. Brands need to create a mobile Web presence andinvest in applications, since 48 percent o consum-

ers preer the mobile Web and 52 percent preerapplications, according to Moosylvania.

6. A Moosylvania study ound that 30 ap-plications were the norm per smartphoneBut most mobile application users (85 per-cent men and 75 percent women) report-ed that they only use about 10 o them ona regular basis. This should give market-ers pause beore jumping on the mobileapplication bandwagon.

7. A 2008 DotMobi study showed 150,000mobile-ready Web sites, while the 2010study showed approximately 3 millionsites, representing an incredible two-year growth o more than 2,000 per-cent. And that growth level signicantlyoutpaces early desktop growth. In 1996there were 150,000 desktop Web sitesTwo years later, there were 2 million

sites, a growth rate o only 1,333 percentcompared to the mobile Webs 2,000percent growth.

8. Mobile advertising is our to ve timesmore eective than online advertisingon average, according to InsightExpress.

9. Sixty-one percent o wireless carriers



39/48

surveyed by Airwide Solutions thought that coupons orvouchers would become the dominant orm o mobilemarketing by 2015.

10. The industry was abuzz when it came to Apples iP-hone and the potential or marketing via the platorm.

But comScore research shows that there is a new playerin town, reaching more than one in ve smartphone sub-scribers in the United States. Googles Android-enableddevices now reach more than one in ve U.S. smartphonesubscribers. With a total o 58.7 million people in theU.S., that is a big chunk o the smartphone market.

11. Seventeen percent o smartphone users planned touse their smartphones in the holiday shopping process,56 percent o them to compare prices, up rom 45 per-

cent in 2009, according to Deloitte. More than one outo 10 (12 percent) o consumers said they would turn tosocial networks or inormation such as git ideas andcoupons, discounts and sale inormation or the 2010holiday season. O the consumers who planned to usea smartphone in the holiday shopping process, 46 per-cent would use their devices to get product inormation.

A whopping 42 percent would use their smartphone toshop or browse online, 39 percent to read reviews and 38percent to check product availability.

12. Mobile advertising made noise this quarter, but 97percent o agencies claim their clients are not requesting

platorms such as Apples iAd, according to media buyingand selling sotware provider Strata.

13. ABI Research orecasts that 11 million tablets will beshipped this year, which means that the audiences ondevices such as the iPad are growing and becoming morevaluable to mobile advertisers and marketers.

14. Seventy-two percent o developers say Android isbest positioned to power a variety o connected devices

in the uture, compared to 25 percent or iOS, accordingto Appcelerator.

15. A Scanbuy study ound that mobile bar code scan-ning grew 700 percent in just nine months (January-Sep-tember), with more people perorming scans in a singlemonth than all o 2009 combined.


RESEARCH


40/48

Mobile SEM will lead the way in educating advertisersabout the value o mobile search with new ormatsthat do not exist on desktop such as click-to-call, oersand new hyper-local ormats.

There is a lot o experimenting and educating ahead,said Michael Slinger, head o mobile search advertising

sales or North America at Google Inc., Mountain View,CA. Many advertisers and agencies have not yet had

Mobile SEM to become key aspect o all multichannel efortsBy Giselle Tsirulnik

A

s more advanced smartphones enter the market,the volume o mobile searches will increase ex-ponentially in 2011. Mobile search engine mar-

keting will move rom a niche advertising opportunity toan important part o any media campaign.

time to optimize their campaigns, so 2011 will be a yeao deep engagement in the mobile channel.

Seminal perormanceAccording to Google, challenges in 2011 will stem rommaking sure that advertisers are ready or a large volumein mobile search.

With this challenge come opportunities or adver-tisers who have optimized or mobile and have asolid strategy.

Dennis Glavin, group product manager o mobile search

advertising at Microsot, Redmond, WA, said advertisersare still learning how to capitalize on clicks rom mobilesearch. The 2011 year will bring opportunities to agen-cies that can deliver high-quality, post-click landingpages and special oers.

While there are issues acing mobile SEM, there is tre-mendous opportunity or companies that get on boardearly, similar to how Amazon did in 1996 when SEM wasin its early stages, said Paul Cushman, senior director omobile sales strategy at Yahoo, Sunnyvale, CA.

Amazon learned a lot about perormance and their cus-tomers beore their competitors, despite issue

2011 mobile marketing outlook

Documents