Download - Michael de Souza, Mobext 20121012
Agenda
• The mobile landscape – It’s hard to define ROI, let alone achieve it
• A new paradigm – The rules of marketing and advertising are changing.
• Examples – Who’s doing it right?
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What you already know
1. Mobile’s really, really big.
2. It’s changed how we communicate and interact.
3. It’s breathtakingly efficient, cheap and offers a better user experience then ever.
4. The future is already here. – It’s just not yet evenly distributed
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THE MOBILE LANDSCAPE
So, why’s it so difficult to make a business model work?
• For publishers?
• For advertisers?
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Publishers
• Many competing businesses ‘trying to eat the publisher’s lunch’
– Platforms – Operating systems – Device manufacturers – Ad networks
• All trying to ‘own’ the consumer / ‘own’ the advertiser experience
• Many players are duplicating efforts, while ignoring other areas altogether
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The dismal state of mobile monetisation
• Potential catastrophe awaits publishers who don’t get their business models right.
• Only a few players getting it right.
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HTML5
FT.com learnings
• Didn’t just disappear when they abandoned the app store • Discoverability was no problem
– In fact, it was easier for them to promote the app
• You can forge your own direction is you are prepared to do so.
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Advertisers
• Brands spend very little on mobile – 1% of total ad spend (BUT, this excludes non-media expenditure) – Most marketing departments have no dedicated mobile resources / time
• The budgets barely cover the basics – App / mobile site development – Limited marketing campaigns to support these
• Work is therefore limited to adaptation of PC services / content to the small screen – Almost no chance of developing for mobile – Let alone device-specific strategies
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And yet…
"It's not about the size of the screen, or the size of the ad,
it's the size of the audience, and the depth of engagement.”
- Rohit Dadwal, MMA Apac
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A Self-fulfilling prophecy?
• Achieving ROI with no investment is impossible
– A recent example from a travel client.
• Total media budget: $3.4m (4 countries, 4 weeks)
• Mobile budget: $80k (2.4%) – No mobile booking function yet, so client unwilling to allocate more than that.
• Addressable market (3G connectivity / 20-49 years / mobile & tablet) – CN: 51.7m – ID: 11.2m – MY: 2.9m – SG: 2.3m
• Weighted budget – CN: $61k – ID: $13.1k – MY: $3.1k – SG: $2.7k
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So what’s the optimal budget allocation, then?
7% on mobile (September’s MMA / Marketing Evolution study)
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Yet, “the 7% answer” is still not entirely clear
• The myth: “Mobile campaigns reach everybody” – Don’t mix up numbers (eg SMS reach) in campaign planning – Each mobile channel is a distinct market
• Mobile can’t be a convenient anytime / any place extension of your other campaigns
• There are numerous distinct communities and behaviours within mobile
– Social networks – Mobile gaming – Web content – In-app content
• …and many more
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The challenge
• To ‘overinvest’ your time and energy in mobile now – Even if you have far less budget to work with
• Stop looking at your media budget for answers – Mobile should form part of the actual brand experience, not just advertising
• The Risk: failing to stop and think will damage your brand – We see it all the time.
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The industry’s plagued by antisocial practices
• A property developer walks into a bar…
– 10,000 SMSs > 2 sales • Interruptive, disrespectful, unsustainable
– These guys aren’t alone • Mobile carriers, banks, many others…
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THE MOBILE LANDSCAPE
Why are these problems so prevalent?
• Mobile interaction is one-to-one
– That gives cover for otherwise respectable companies to pass the ‘red face’ test – Marketing heads plead ignorance (or turn a blind eye) – Brand guidelines don’t yet cater for mobile
– Recipients tend to ‘avoid the noise’
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THE MOBILE LANDSCAPE
Insidious damage
• Bad practices are usually not bad enough to cause torrents of complaints – It’s a gradual erosion of trust
• The damage done is seldom intentional – Usually, it’s the result of someone taking a shortcut
– Although sometimes, lack of consideration is acknowledged and intentional…
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THE MOBILE LANDSCAPE
‘Spray and pray’
• Mass is no excuse for lack of appropriateness
– “With this many impressions, we’re bound to reach someone in our target market!”
• Is that really what you want?
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THE MOBILE LANDSCAPE
No time to think!
• Oh no! They asked for ‘something mobile’!
– Can you put down some quick ideas by lunchtime?
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THE MOBILE LANDSCAPE
Enough, already
• The industry badly needs to – Stop shouting at a faceless crowd – And start having respectful conversations
• Decide that we’re in it for the long haul – Build relationships – Establish trust – Earn a customer’s lifetime value
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THE MOBILE LANDSCAPE
Mobile’s personal
• Everything we do affects customers intimately and immediately – There’s no escape!
• It requires that brands form a new kind of relationship • It requires an authentic, personal conversation
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THE MOBILE LANDSCAPE
We need to redefine ‘R’
• It’s no longer this easy:
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Carrier
Licensing
Media cost
Billing provider
Revenue
THE MOBILE LANDSCAPE
So, how to redefine ROI?
• We’re playing a longer game now
• We need new measures for success
• It’s getting more complicated – No longer just about instant revenues
• A reputation built slowly can be damaged very quickly
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THE MOBILE LANDSCAPE
It’s an ongoing conversation
A deliberate, considered approach spans a range of brand activities: • Brand exposure • User engagement • Building a permission database • Gaining consumer insight (user data) • Making a sale
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THE MOBILE LANDSCAPE
The new paradigm > A new set of rules
1. Listen 2. Interrupt gracefully (if at all) 3. Reduce the noise 4. Be authentic 5. Whisper, don’t shout 6. Understand context 7. Build a platform
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THE NEW PARADIGM
1. Listen
• It starts with listening.
– Who are your customers? – How do they interact (with you, with each other)? – How do they use technology?
– If unsure about their motivations, ask!
– Ask ‘Why?’ – a lot.
• The result:
– Respectful, relevant interaction.
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THE NEW PARADIGM
The new paradigm > A new set of rules
1. Listen 2. Interrupt gracefully (if at all) 3. Reduce the noise 4. Be authentic 5. Whisper, don’t shout 6. Understand context 7. Build a platform
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THE NEW PARADIGM
2. Interrupt gracefully (if at all)
• Advertising has always been brash, but we’ve reached a watershed:
– Shouting for attention is no longer a virtue (especially such a personal, direct channel) – It’s exhausting, and it makes your brand appear insecure and desperate
• Make sure that interruption is a conscious choice, not a default setting.
• “It’s not advertising if it’s relevant and useful” – focus group respondent.
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THE NEW PARADIGM
"Marketing by interrupting people isn’t cost-effective anymore. You can’t afford to seek out people and send them
unwanted marketing messages, in large groups, and hope that some will send you money.”
- Seth Godin
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THE NEW PARADIGM
The new paradigm > A new set of rules
1. Listen 2. Interrupt gracefully (if at all) 3. Reduce the noise 4. Be authentic 5. Whisper, don’t shout 6. Understand context 7. Build a platform
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THE NEW PARADIGM
3. Reduce the noise
• Customers everywhere have access to more data and stimulus than ever.
• We face a wall of white noise – people shouting for our attention. – Impinging on us in the physical and digital world.
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THE NEW PARADIGM
Filtering out the noise makes us happier
• We’ll even pay for it.
– Not just in premium / ad-free versions of sites and apps, – But to remove ads from our devices themselves...
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THE NEW PARADIGM
Filtering tools are evolving
• There are more tools than ever to protect us from unwanted noise – And there will be more on the way
• … especially with a wide market willing to pay $15 per user per device!
• So, if you’re contributing more noise than value, customers will filter you out, – and then, you simply won’t exist in their world.
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THE NEW PARADIGM
Caveat: Less noise ≠ less information
• The problem isn't the amount of data that we're receiving. – More useful information is a good thing. – It's that data needs to be presented more intelligently.
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The new paradigm > A new set of rules
1. Listen 2. Interrupt gracefully (if at all) 3. Reduce the noise 4. Be authentic 5. Whisper, don’t shout 6. Understand context 7. Build a platform
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THE NEW PARADIGM
4. Be authentic
• Consumers are looking for authenticity – Brands with a back-story – Artisan-made / natural over artificial /
ethics over profits
• Accept that you don’t own your brands, your consumers do.
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THE NEW PARADIGM
Right now, just two groups connect with mobile users in an authentic way: 1. A handful of global corporations
2. A multitude of small, nimble brands – They can't help but speak with an authentic human voice – They have genuine conversations – There's no corporate firewall to hide them from view
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THE NEW PARADIGM
• Learning to speak in a human voice isn’t some trick. – Lip service about "listening to customers" won't do the job either.
• Intelligent, approachable humans exist in (almost) all companies. – Real human beings with Twitter followings and meaningful Facebook connections. – Humans who are imminently qualified to make contact with the outside world.
• Don’t handicap your organisation’s ability to deliver genuine knowledge, – Don’t crank out sterile happy-talk that insults the intelligence of markets who are too smart
to buy it.
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THE NEW PARADIGM
The new paradigm > A new set of rules
1. Listen 2. Interrupt gracefully (if at all) 3. Reduce the noise 4. Be authentic 5. Whisper, don’t shout 6. Understand context 7. Build a platform
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THE NEW PARADIGM
5. Whisper, don’t shout
“In a room full of people shouting, It’s the person who’s whispering Who becomes most interesting.”
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THE NEW PARADIGM
The new paradigm > A new set of rules
1. Listen 2. Interrupt gracefully (if at all) 3. Reduce the noise 4. Be authentic 5. Whisper, don’t shout 6. Understand context 7. Build a platform
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THE NEW PARADIGM
6. Understand the power of context
… and learn to spot opportunities for value exchange.
• We can be reached at work, on holiday, in a meeting, in bed – at moments of boredom, excitement, loneliness, inspiration…
• Understand these contexts, – then identify moments of value exchange.
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THE NEW PARADIGM
For the first time ever, advertisers have to ask:
‘Why might this person care about my brand
at this moment?’
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THE MOBILE LANDSCAPE
Put another way…
Mobile has enabled you to be closer than ever to your consumers.
As marketers, we’ve never had this kind of potential.
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The new paradigm > A new set of rules
1. Listen 2. Interrupt gracefully (if at all) 3. Reduce the noise 4. Be authentic 5. Whisper, don’t shout 6. Understand context 7. Build a platform
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THE NEW PARADIGM
7. Build a brand platform
• Campaigns: episodic outbound messages across a channel – Goal: “tell people about that”
• Platforms: fuelled by the campaigns – Must be utilitarian – Must serve a community – Goal: To be interesting / useful enough to adopt
• Never a hard sell
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THE NEW PARADIGM
Commodification
• Consumers are spoilt for choice, and better informed that ever.
• Overwhelmed with equivalent goods and services. – Is your hamburger / hatchback / fizzy drink really better than the others?
• Brands need to work harder to differentiate – They need something more than a great brand story.
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The remedy
• Platforms provide: – A community, a niche, a sense of belonging – An identity – A set of behaviours
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Platforms start with permission
• … which is the nicest thing a customer can give you.
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Wrapping up
1. Listen 2. Interrupt gracefully (if at all) 3. Reduce the noise 4. Be authentic 5. Whisper, don’t shout 6. Understand context 7. Build a platform
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WRAPPING UP
Where to start?
• Start by allowing customers to grant you permission to talk to them
– And please, don’t be anything like that property developer.
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WRAPPING UP
One final thought
“You don’t do mobile because it’s big and because it’s growing. You do it
because it works.”
- Brian Colbert.
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WRAPPING UP
Thank you
Michael de Souza General Manager / @mobext
Singapore & Malaysia +65 9783 4092
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