burson proof mobile study final 100827090451 phpapp01

8/8/2019 Burson Proof Mobile Study Final 100827090451 Phpapp01

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Evidence-Based Communications:

The State of Mobile Communications


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BURSON-MARSTELLER EVIDENCE-BASED COMMUNICATIONS

The use of mobile phones particularly

smartphones is fundamentally changing how

consumers and businesses communicate and

engage with each other.

The Evolution of Mobile

Consumer use of mobile devices is growingexponentially much faster than PC or Internet use

grew but U.S. businesses have been slow to take

advantage of endless opportunities to optimize

stakeholders mobile interactions with the brand.

Possibilities for interacting with consumers via mobile

go beyond delivering content and enabling

transactions. Location-based targeting, real-time

comparison shopping and QR codes allow businesses

to interact with customers in novel ways.

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Learning what customers are doing via mobile, such as

accessing social networks or checking product inventories,

opens up opportunities to collect data and target based ondemographics, behaviors and location. Many U.S.

businesses find that upwards of 50-70% of their mobile

traffic is from outside the country.

And, beyond customer engagement, mobile canmake employees work more efficiently both in

and away from the office by enabling business

applications for mobile use beyond just email and

calendaring.

The first step is to optimize current digital content and

communications for mobile use. But, ultimately mobile is

about transforming how businesses and their stakeholders

interact in a real-time, location-based way.

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1. Mobile is Here - and Growing Quickly

2. Mobile is Transactional

3. Apps are Where Its At

4. Mobile Users are Social

5. Mobile Users are Diverse

6. Location, Location, Location

7. Mobile Ads, Applications and SMS Drive

Revenue

8. Businesses are Behind the Curve

9. Mobile In - and Out Of - the Workplace

10. QR Codes Move West

Top Trends in Mobile

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1. Mobile is Here - and Growing Quickly

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Mobile is now even bigger than desktop use, and data/video

usage exceeds voice calls.

80% of the U.S. population will have a mobile phone by 2010.

35% of American adults are using their mobile devices for

wireless Internet access.

The average iPhone user only spends 45% of his on-devicetime making voice calls the rest is spent browsing the web

or using applications.

Video accounts for 69% of mobile data traffic.

Access to the web and applications via mobile is growing and

will soon be universal. Smartphone usage of both browser and applications has

increased more than 110% in the last year.

By 2011, 99% of mobile phones will be data-capable devices

at minimum they can do basics like sending and receiving SMS

text messages.

People are Using Mobile Devices for More Than Just Phone Calls

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Flickr @tak

Sources: Pew Research and Mashable


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Mobile Use is Growing Much More Quickly Than PCs or Internet Services Did

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Mobile adoption is growing

exponentially and will soon be an

ubiquitous part of daily life.

The growth rate of iPhone use is 10

times faster than the growth rate ofAOL was. (see top chart)

In 2012, shipments of Smartphones

will exceed shipments of PCs. (seebottom chart)

Even now, 40% of iPhone/iTouch

users access the Internet more on

their mobile devices than on their

desktops.

Adoption of New Technologies(number of users in millions)

Sources: Morgan Stanley and Nielsen


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The speed of mobile adoption growth is far outpacing that of prior

technologies, and using mobile to access data and to make transactions is

nearing the tipping point. Mobile will soon be the primary digital means

that consumers use to interact with brands, friends, retailers and other

businesses.

Companies who are not already engaging with stakeholders via mobile are

missing a huge opportunity. And, once mobile is even more pervasive in a

few years, businesses who are not in the mobile space risk being squeezed

out by competitors.

Mobile includes voice, data, and video basically any type of consumer orbusiness content that can now be communicated via the Internet.

Businesses must think about how to channel all types of content through

mobile, not just one.

Implications

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2. Mobile is Transactional

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Any Digital Transaction is Possible Via Mobile

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Mobile users are not passive. They seek information, manage personal finances,interact with others and shop.

Sources: comScore


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Mobile Shopping Goes Beyond Transactions It InfluencesPurchase Decisions

% Whove Used a Smartphone

To Purchase

% Reading Product Reviews on

Smartphone Before Purchase

% Likely to Use Smartphone to

Check Competitor Prices

Consumers are not only making purchases on mobile devices, butreading reviews, checking store inventories and comparingcompetitor prices before making a purchase.

Googles new local inventory checks allows users to conduct amobile search for a product and then determine if a store nearby has itin stock.

Applications such as the PayPal Mobile iPhone app make mobile

shopping even easier. This app was downloaded more than onemillion times in just three weeks.

iPhoneusers

Androidusers

music books, DVDsor video

games

movietickets

iPhoneusers

Androidusers

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Sources: Mashable and Compete


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Mobile Users are Interested in Coupons, As Well As a Range ofPromotional Communications

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Source: Juniper Research

Consumers are not only making purchases on mobile devices, but reading reviews, checkingstore inventories and checking competitor prices before making a purchase.


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Mobile is not just a channel for businesses to push out information. As search isthe top mobile activity, consumers are seeking content and tools relevant to theirneeds. Companies must position their brands and mobile offerings so they caneasily be found via search and are aligned with consumer expectations.

Online transactions go beyond making purchases. Consumers are using mobile

for the entire purchase process: searching for products, reading reviews andcomparing prices, locating items in stores and checking inventories, and,ultimately making purchases. As well, consumers are checking bank accounts,points levels, schedules, etc. Companies need to enable the entire businessprocess via mobile, from branding to communications to transactions, not justindividual pieces of the process.

At the same time, some basic mobile offerings are very compelling to consumers,including coupons and promotional codes. Kicking off a mobile presence withcoupons can start a mobile relationship with customers that can grow as thebusinesss mobile offering expands.

Implications

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3. Apps are Where Its At

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Native Applications vs. Web-Based (Mobile Browser) Applications

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Native Applications are programmed for specific mobile phones to be downloaded and live on the phone.

Web-based Applications live on the companys website and are accessible through a mobile browser.

Advantages ofNative

Applications

Advantages of Web-Based MobileApplications

Creates stickiness with

the brand, because the

app lives on the

stakeholders phone

Can be more easily updated

because it does not live on

the users phone

Is very marketable Can be used on any phone

(i.e., Native apps are

programmed differently for

different phones)

Easy for the user to

access

Less costly to update


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Native Applications are a Driving Force of Mobile Adoption

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Mobile users are downloading tens

of thousands of mobile applications

in many categories.

The highest adoption is offunctional applications such as

weather and maps (18 million

and 17 million downloads

respectively). The highest growth

(240%) is in social networking

applications.

While online retail is still the

lowest category, 3 million online

retail applications have been

downloaded.

Total Number of Applications Downloaded(in millions)

Sources: comScore MobiLens


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The iPhone is Currently the Top Device for Downloading Native Applications

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iPhone and iTouch users have

downloaded an average of 47

applications each.

Android users have

downloaded almost half as

many applications (22),

followed by the iPad (12),

BlackBerry (10) and Nokia

(5) devices. However, the

proliferation of the Androidis creeping up on the

popularity of the iPhone.

Sources: Morgan Stanley


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Mobile Users are Also Using Web-Based Mobile Applications

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Yet only 12% of the top 500 internet retailers have sites optimized for mobile phones.

Sources: Acquity Group and comScore


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Deciding between a native or web-based application should depend on how the

businesss stakeholders will use the application.

- Native applications make a businesss mobile presence stickier. Once a customer has

downloaded an application and the brand has a piece of real estate on the users mobile desktop

there is an opportunity to continually engage with the customer.

- However, web-based applications are useful on a variety of mobile devices and can be updatedmore easily.

AppMobi, an open source mobile application platform which allows web developers to

develop mobile apps for all platforms, will make app development more accessible and

inexpensive.

Implications

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Suggestions for both native and web-based applications include:

- Make the application useful. Weather and map applications are the most popular because they

are functional. Developing an application with on-going utility (i.e., checking account status, timely

informational updates) will create stickiness.

- Make the content relevant. As always, engaging and relevant content encourages customers toreturn to see whats new.

- Make it social. Building applications to connect people (i.e., sharing product reviews, building

connections through mutual interests) will make them stickier.

- Promote it. Use mobile media to drive awareness of the app, and build in a viral element to spread

the word.

- Optimize it for multiple devices. While the iPhone is the top device for applications, small tweaks

can make the app more user-friendly on other devices.

- Make it fun. The application should offer something above and beyond what the user can find on

the website to give them a reason to download it.

Implications, continued

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4. Mobile Users are Social

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Access to and engagement with social

networking tools via mobile is exploding.

31% of smartphone users have accessed social

networks via mobile browser, up from 23% in

2009.

14.5 million mobile users downloaded a social

networking application to their mobile device as

of April 2010, up 240% from the prior year.

OfFacebooks 500m+ users, 100 million access

Facebook through their mobile devices.

Mobile phone users are far more likely to use

Twitter (25%) than those who access the internet

solely from wired connections (8%).

Mobile Users Stay Connected 24/7 on Facebook and Twitter

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Sources: comScore MobiLens, Facebook, Pew Research


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Consumers Who Use Mobile Social Networks are Demographically Favorable

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Those who use social networks via mobile

are more active and more affluent.

People that use Facebook on their mobile

devices are two times more active onFacebook than non-mobile users.

80% of those who use mobile social

networks are between the ages of 18 and 43

only 58% of those who use social networks

online fall in this age range.

While they skew young, 39% of mobile

social network users earn $100K or more.

flickr Chappell Studio


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Because mobile social network users are more active on social networks and more

affluent, they are a group worth targeting and building a relationship with.

For years, people have used their mobile devices to connect with others by voice and text

message, and connecting through mobile social networks is an extension of that behavior.

The benefit for businesses is the ability to leverage these social networks for real-time,

localized and viral communications/promotions.

- For example, a consumer in a store may see new product; post a question about the product on

Facebook or Twitter; then, a friend may send her a mobile coupon on the spot to encourage her to

try the new product.

- A business can also use their Facebook or Twitter presence as a timely way to present information,

deals and coupons to consumers to access while out and about.

Having a mobile device in-hand at all times allows consumers to post reviews of products,

restaurants and movies in real-time. Businesses must monitor consumer comments of

their brands on Facebook and Twitter in real-time, and they also be prepared to respond

and provide customer service as quickly as consumers post these comments.

Implications

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5. Mobile Users are Diverse

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Gender and age influence how people use mobiledevices.

79% of men use their mobile phones to simply"escape compared with only 61% of women.

82% of seniors use their mobile phones for

information and learning.17% ofultra-affluent (HHI $200K+) frequentlyengage in m-commerce compared with 7% ofaffluent (HHI $150K+).

Almost one-third (31%) of 10 year olds have mobilephones. (see chart)

-Also, young people (under 1

8

) are more inclinedto use SMS messaging (texting) than older mobileusers.

- 44% of youths shop with their mobile phones.

- One-third of American teens send over 100 textper day and many send as many as 3,000 a week.

Different Strokes for Different Mobile Folks

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Source: flickr user Batikart

Sources: Ruder Finn, Pew Research


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African American and Hispanic Mobile Users are Favorable Towards Mobile Shopping

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African American mobile

users are relatively more

interested in doing

comparison shopping and

checking inventories on a

mobile device.

In addition, mobile banners

have been found to be five to

10 times more effective than

online banners for reachingHispanic consumers.

% Interested in Using Mobile Devices for the Following:

Sources: Sterling Commerce, Mobile Marketer


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As with any set of consumers, segmenting and targeting is necessary to

deliver the right message to the right consumer at the right time. Different

consumer demographic groups are approaching and adopting mobile very

differently. Especially with the wealth of information that business can collect

from mobile consumers, this data can be used to deliver messages, content

and functionality that will be most relevant to each individual user.

Companies should understand how their target market is using mobile to

prioritize what content to deliver via mobile, which mobile channel is most

effective (mobile media, applications or SMS, etc.) and what features to

prioritize when developing applications.

Implications

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6. Location, Location, Location

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Mobile Users Will Share Their Location to Get Local Information and Deals

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Sources: ChoiceStream and JiWire

disagree,

18%

Forty percent of mobile users take advantage of geolocation features. Over one-half (53%) will share their

location for more relevant advertising, 38% are more likely to engage with a locally-relevant ad, 65% are more

likely to buy if they can find retailers locally and 63% will provide location information for relevant content.


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Mobile Users are Quickly Adopting Location-Based Applications

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Number of FourSquare and Gowalla Users by City

Source: Mashable

The popularity ofFourSquare, Facebook Places andGowalla demonstratemobile users willingness to be identified based on their personal location.

There were 100 million FourSquare check-ins in July 2010.

flickr indycolts2k6

This provides many opportunities for businesses. Starbucks partnered with

Foursquare to create a special badge and rewards for being the mayor of one of

the stores, enabling the Foursquare Mayor of the local Starbucks and get $1 off a

frappuccino.


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Mobile users from around the world are

accessing mobile content from every

region.

Most (94%) of U.S. mobile sites aregetting at least some traffic from non-

U.S. sources.

Slightly more than one-quarter (27%)

are getting at least one-half of their

mobile traffic from non-U.S. sources.

Not Only Local, But Global

flickr Poetic Home

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Sources: Motally


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Location-based targeting is the a critical distinction that makes mobilecommunications more powerful than other channels. Knowing where a mobileuser is - whether if be in a store, with friends, at a restaurant or at the office -can help businesses know which content is most relevant to deliver to theconsumer at that moment.

- For example, some shopping-list applications will allow a user to build a store list;then, the mobile app can identify when the mobile user is near the store and send a

coupon or special offer at that time.

Ensure that location-based mobile tools have high utility and privacy.Consumers are more comfortable sharing their location when they see atangible benefit to providing their location information so give them a reasonto do so.

Collect data on where the companys mobile users are coming from. Offeringapplications or mobile media in multiple languages or with local nuances maybe worthwhile if a substantial number of users are from outside the U.S.

Implications

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7. Mobile Ads, Applications and SMS

Drive Revenue

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Mobile Is Generating Revenue

The mobile payments market is expected to

quadruple by 2014, reaching $630 billion in

value, which equates to 5% of total e-

commerce sales.

North American mobile commerce sales alone

will top $750 million this year.

The mobile gaming market will top $800 million

this year including downloads and ad revenues.

13% of mobile users have made a mobile

purchase.

PayPal saw a 650% increase in mobilepayments on Black Friday in 2008 vs. 2009.

The amount that consumers are willing to

spend varies by type of handset (see chart).

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Sources: ABI research, Juniper, emarketer, Pew Research, Mobile Marketer. PriceGrabber.com


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Mobile Users Will Engage With Compelling Mobile Ads

Fifty-two percent of smartphone users

have acted on advertisements within

applications.

Mobile advertising is between 3 and5 times more effective than online

advertising.

Smartphone owners value

applications, but 76% would rather

have advertisements in their appsthan have to pay for the app itself.

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Your ad

here!

Sources: Internet Retailer and JiWire


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Mobile Users Will Engage With Compelling Mobile Ads

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The third season of HBOs True Bloodseries was announcedwith an iPhone ad. Bloody fingerprints appeared whereverthe user touched on the full-screen ad, and then bloodcascaded down the screen.

98% of people who saw the ad engaged with it, and11% re-opened it to show it to others.

The video of the iPhone ad was viewed on YouTube

over 10,000 times in seven days. The ad resulted in125,000 Tweets.

5.1 million viewers tuned into the True Bloodseasonpremiere, marking a 38% increase over the previousseason premieres viewership.

In a Dockers iPhone ad, users shook the device to seedancer Orbitron dance. Engagement with the ad averaged42 seconds per viewer.

Dockers achieved a 300% gain in positive social mediabrand conversations, as well as widespread mediacoverage.

Sources: Mobile Marketer


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BURSON-MARSTELLER EVIDENCE-BASED COMMUNICATIONS 38

SMS Text Messaging is Still Relevant and Can Drive Revenue

SMS is a top activity among mobile users,particularly youth.

Almost two-thirds of mobile users sent atext message in March 2010. Texting grewone percentage point during the prior 3months, which is just slightly lower than

the growth of other mobile activities.

Adults 18+ send an average of 10 textmessages per day; teenage girls send 100texts per day.

The Red Cross Text Haiti campaign forearthquake relief efforts raised $4m in thefirst 48 hours, and over $32m in the firstmonth.

Sources: comScore MobiLens, Red Cross


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Mobile creates infinite business- and revenue-generating opportunities by taking advantage

of a hybrid of traditional and digital marketing and communications channels.

- Mobile provides business value through branding, generating awareness and purchase intent, driving

viral conversations and generating sales.

- Mobile also leverages traditionally offline marketing and communications tactics by enabling mobile

couponing, point-of-sale content and promotions, in-store inventory information, etc.

- The payoff comes from building a prolonged engagement with the consumer that leads to improved

perception, advertising engagement and ultimately sales. Businesses should not be concerned with

generating sales from downloading applications, but by the role apps play in generating sales.

- As is true with web-based TV services such as Hulu, mobile users are willing to watch ads in exchange for

services such as content and applications. This suggests an opportunity for companies to generate

revenue from the on-the-go audience without evoking frustration or negative feelings about the brand.

- SMS is still an effective revenue-generating channel, especially among young mobile users and for

specific initiatives. There are 5 billion texts sent daily in the U.S. vs 310 million Google searches daily.

There is an opportunity to communicate with customers the way they communicate with each other.

Implications

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8. Business are Behind the Curve

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While Consumers are Engaged, Many Retailers Have No Mobile Presence

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Considering the number of applications downloaded and consumer willingness to seek

out applications, many businesses are not sufficiently engaged.

80% of US multichannel retailers had no m-commerce capabilities. 42% of retailers who

do not have a mobile presence plan to launch one within the next two years.

Only 12% of the top 500 internet retailers have sites optimized for mobile phones and only

7% have downloadable mobile applications.

Even companies who are dabbling in mobile do

not have a solid mobile strategy. Two-thirds of

companies with a mobile presence do not have

a formal mobile strategy or are only in the veryearly stages of developing one.

Sources: Internet Retailer, Acquity Group, Forrester


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Marketers Focus on Customers Social Network Activities, But Not Mobile

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While marketers have embraced social

media as part of their email campaigns, they

are not taking advantage of offering

mobile-optimized messages for customers.

63% of marketers are not tracking whether

their email subscribers are viewing messages

on mobile devices.

About two-thirds of marketers are

integrating social media into email

campaigns, compared with only 25% who areintegrating mobile into email marketing by

offering mobile-optimized messages.

marketers

integrating

social media

into email

campaigns

marketers

offering

mobile-

optimized

messages

Sources: eROI


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While consumers are quickly adopting smartphones and mobile services, many businesses are

hesitant to jump in, citing a lack of revenue streams or low user adoption as justifications.

However, as has been demonstrated in this report, mobile users are actively interested in

interacting with businesses via mobile.

- Engaging with stakeholders via mobile now is imperative. Mobile adoption is growing so much more

quickly than PC or Internet adoption, that the majority of consumers will be thoroughly engaged in

mobile transactions in the next few years. Businesses that do not start strategizing and developing

for mobile now will be left in the dust.

- Now is the perfect time to test the effectiveness of different types of mobile media, applications and

content. Taking the first step by reaching out to stakeholders via mobile, learning who they are, how

they want to interact with the brand via mobile, and developing basic applications to engage with

customers can provide learning for future mobile tactics. Then, the business will be ready to engage

stakeholders with optimized mobile tools and content when the masses start using mobile as aprimary channel for communications and transactions.

- Developing a website optimized for mobile browsing is a simple first start. For example, a mobile

website might have categories most relevant to mobile customers (i.e., store locators, links to product

inventories and contact information) on the first page.

Implications

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9. Mobile In and Out Of the Workplace

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Smartphones Have Become a Staple in the Workplace

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The proliferation of smartphones among

employees has contributed to the 24/7

workplace, and smartphones are becoming

a primary tool for business

communications.

Firms expect to triple the number of

employees using smartphones to 30% in

the next three years.

When employees use smartphones

instead of desktop computers, it is

usually because they are away from the

office, which is becoming more frequent

among office workers.

Almost one-half (47%) of employees

with smartphones use them instead of

desk phones for work calls at least two-

thirds of the time.

I can run the app from any location

I dont feel like turning on my computer

I need to use the app while commuting

I spend time at locations where I cant use my

computer

My computer is at work, but I need to run

the app away from the office

I can run the app more easily and quickly on

my smartphone

Sources: RingCentral, Nielsen


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BlackBerrys are the Most Common But Not Always the Favorite Smartphone

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Companies most often issue BlackBerrys to

employees, but many prefer and choose to

use other smartphones for work.

Over one-half (57%) use Blackberrys,

followed by iPhones (14%).

Almost one-quarter (23%), use

smartphones not issued by their employer

for work, particularly Apple iPhones.

Partly for this reason, 43% of IT workers

are concerned about security or IT risk

regarding the use of smartphones for

business use. I purchased myselffrom my

company's

approved list, 21%

I purchased one that

my company maynot support 23%

I selected from company's

approved list and company

purchased, 22%

My company

issued it to

me, 34%

Sources: Forrester


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Email is the Top Activity, But More Sophisticated Tasks are Also Possible

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While email, personal contacts and calendars are the most popular smartphone features used for

work, productivity, collaboration and management applications are also used. These apps enable

employees to do substantial work tasks while out of the office.

Sources: RingCentral, Nielsen


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As employees become more mobile, businesses need to arm employees with

tools to work as efficiently as possible while at home or on the road.

Providing mobile devices that are best-suited to employee work will ultimately

lead to better worker productivity and higher security. Employees will choose

devices that are easiest for them to use, and security and other issues may ariseif IT teams are not able to support these devices. Companies should at least

provide content, tools and support for different types of smartphones.

Phone and email are the most common tasks conducted on smartphones, but

employees are starting to do more sophisticated tasks on these devices.

Enabling as many data-access tools and work processes on mobile phones willonly serve to make employees more productive while away from the office.

Implications

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10. QR Codes Move West

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Prevalent in Japan since 2003, QR (Quick

Response) codes two dimensional images

containing encoded data will soon be as

ubiquitous in the U.S. as bar codes on products.

A mobile user takes a picture of a QR code on

an advertisement, product, etc. and the photo is

received by the companys server by mobile app

or text message. Then the requestor receives

relevant video, audio, image or text content on

their phone.

- JagTag, a leader in text-message based QRcode services, recently generated 120,000

responses in a QR code promotion of

Sports Illustrated.

QR Codes Turn Ads into Real-Time Engagement Opportunities

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Mobile users are willing to engage with

brands, as long as the brands provide

meaningful content in return.

NYC Media is placing QR Codes on the sides of

2,200 NYC Department of Sanitation trucks.Scanning the codes will take users to a video

from NYC Medias show The Green Apple:

Recycling.

JC Penney is using QR codes for store discounts

that can be scanned directly from a phones

display screen at the register.- The coupons will be available via Web,

mobile advertising, email and SMS.

Brands are Using QR Codes to Connect Directly with Mobile Users

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QR codes are most effective when placed throughout an integrated campaign

that includes print ads, in-store displays, direct mail, websites and even iPad ads.

Think of relevant locations when placing QR codes. For example, airports are a

great location for QR codes for branded content that parents can use to

entertain their kids, or for managerial thought leadership for business travelers

to read on the plane. When mobile users receive content that is relevant to their

location, they are more likely to find value within the brand.

QR codes provide opportunities to deliver much more content that was

previously limited by space constraints on ads and packaged goods, such asingredients, product features, recommendations and other product details.

Businesses should consider what type and quality of content they can offer to

give mobile users personalized shopping experiences.

Implications

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Jay Leveton

CEO, Proof Integrated Communications

202.530.4696

[email protected]

B.L. Ochman

Managing Director of Emerging Media

212.614.4984

[email protected]

Chris Gee

Managing Director of Digital Media

212.614.5093

[email protected]

Zach Ambrose

Manager of Digital Media

212.614.4119

[email protected]

Contacts

Ashley Welde

Director, Research & Insights

212.614.4924

[email protected]

Lauren Papp

Client Executive, Research & Insights

212.614.4669

[email protected]

burson proof mobile study final 100827090451 phpapp01

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